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HomeMy WebLinkAboutmin of light comm 12152008 Mansfield Municipal Electric Department Minutes of Light Commissioners Meeting December 15, 2008 r"- '"I' I~D c \'t . !fC n!:"clCE ' ~ >,j t) i! ' 7011(>,' F f:!1 I I 1\\ C'-" I 8 ........" L'" ....."a Present: Chairman Ann Baldwin; Vice Chairman Jess Aptowitz; Clerk Kevin Moran; Commissioner George Dentino; Commissioner Sandra Levine; Director Gary Babitl~ Ehgi.n~er Chris Cox; Engineer Ann Langille; Staff Accountant Ken Thomson; Line Eoreman!G~c: D' Ambra; Financial Assistant Jacqueline Lee and Town Manager John D' Agostino Light Commissioners Meeting The meeting was called to order at 7:00 PM followed by the Pledge of Allegiance. Questions and Comments - Bill Clemmey, 780 South Main Street, distributed a statement to the Board and said he was there to represent several ratepayers of Mansfield who believe that a financial impropriety occurred with a previous Board of Light Commissioners and the management of MMED. He stated that it occurred between June 2006 and July 2007 and it was regarding a commercial service on Francis Ave. They believed no plan, layout or estimate was ever done; no fee or deposit was paid and they question whether it was ever inspected. Mr. Clemmey then stated that a member of the Board at that time had a personal interest in the matter. He requested that the Board investigate this and reprimand those who were involved. Chairman Baldwin said she thought it warranted investigating and asked if anyone had any comments. Director Babin said he didn't know enough from the statement to comment. Town Manager D' Agostino said he believed the matter should go to State Ethics to be investigated. Chairman Baldwin said she believed she knew who it was as someone who previously sat on the Board owns a business on Francis Ave. Commissioner Dentino suggested going into Executive Session. Clerk Moran said he didn't see the need at this time because of lack of information. Commissioner Levine also didn't believe going into Executive Session would accomplish anything. It was decided that Mr. Clemmey would continue the matter with Chairman Baldwin and Vice Chairman Aptowitz and explain the specifics of the matter. He noted that he chose not to include specifics in his public statement. Chairman Baldwin said that she would like to include Director Babin in those meetings as well and Mr. Clemmey agreed. Commissioner Levine made the suggestion that Town Counsel should also attend. Motion: To approve the minutes of the October 6, 2008 Light Commissioners meeting (AptowitzlLevine) Passes 3/0/2 (Dentino and Moran abstained) . ......~_.__........T-._..-_....-_. 1r Motion: To approve the minutes of the November 17, 2008 Light Commissioners meeting (AptowitzIMoran) Passes 4/0/1 (Baldwin abstained) Commissioner Dentino pointed out that on page six of the November 17 minutes it indicated that he had asked for an opinion from the DOR as to whether the Town can accept money from the Light Department. In this particular case, it was to be earmarked for Social Services and to be used for heating sources other than electric. He asked the other Board members if they would be amenable to him researching the issue and making some phone calls. The other members were agreeable. MMED Contribution to Mansfield Electric Assistance Fund - Gale Farrugia, Director of Social Services, made a request that the Board authorize a $10,000 donation from the Light Department to the Mansfield Electric Assistance Fund. Mrs. Farrugia explained to the Board that Social Services has tightened up their guidelines which has kept some residents from qualifying for assistance. She would like to use the $10,000 to loosen up the guidelines to help these people. As it stands now, if a resident was entitled to $400 assistance, they would be required to make a payment on their own of $200. Ms. Farrugia would like to reduce the 50% requirement to 20%. Commissioner Dentino stated that he had previously asked if staff could track those customers whose deposit had been paid by Social Services. Ms. Farrugia said that she could not track that information but suggested that perhaps the Light Department could. Director Babin said that previously he had understood that Commissioner Dentino was asking for information on how customers who had been provided direct assistance for their electric bills had done. He said he provided that information last summer and it showed that 95% of those customers who were provided assistance were following up on their electric payments. Commissioner Dentino reiterated that he didn't like paying someone's deposit that is coming in from out of town and has no track record with MMED. Town Manager D' Agostino elaborated that if someone is unable to pay the deposit then how can they be expected to sustain their monthly light bills. Director Babin said he would come back to the next Light Commissioners meeting with the information Commissioner Dentino requested. Commissioner Dentino then questioned whether this money was just for heating assistance. Director Babin answered no, it is for electric assistance only and that the prior month the Board had voted to contribute heating assistance money to Social Services. Commissioner Dentino stated that he is not in support of helping people pay for their air conditioning and he put that question to the Board. Commissioner Levine didn't think they could differentiate between heat and air conditioning. She believed that air conditioning could be just as important for someone's health as having heat. 2 -- ... -,_._,,,.."...^._>_.,..~_.._..,,,,,._,.",.~._"-_..,"..~.-... .~_. ^ Commissioner Dentino complimented Ms. Farrugia, saying he knows she does well with what money she gets as she always has something remaining. He commented that this year, however, will be tough. Motion: That the Mansfield Municipal Electric Department contributes an amount of $10,000 to the Town of Mansfield for the purpose of donating this money to the Mansfield EleCtric Assistance Program in order to provide funding for FY09. (Aptowitz/Moran) Passes 5/0 Director Babin then stated that at last months meeting a $25,000 donation for fuel assistance was made as a PILOT. It was questioned at that time as to whether MMED could make a donation to the Town. Director Babin then distributed a memo he had requested from Town Counsel explaining that the donation could be made as long as it's.a below the line expense and because it is a donation it can be specifically earmarked. Motion: To donate $25,000, for which a motion was previously passed at the November 17 Light Commissioner meeting, into the Fuel Assistance account to be accepted and used for that purpose (LevinelBaldwin) Passes 4/1 (Dentino against) Financial Statements October 2008 - Staff Accountant Thomson reported that MMED's net operating income year-to-date through October was $1,343,014. The remaining balance in the Calpine Rate Stabilization fund as of the end of October was $602,900. MMED's cash position through October 2008 was $3,279,375, up significantly from $2,272,695 for the same period in FY08. Staff Accountant Thomson also reported that MMED has collected $1,366,214 of the previously undercollected Generation Charge. This has improved MMED's operating cash position. MMED's "AIR Undercollection of Generation Charges" through October stood at $712,788. MMED's energy sales for October 2008 were down 10.2% from October 2007. Year-to-date energy sales were down 2.1 % from FY08. The depreciation fund balance stands at $3,849,550 and will be used to offset the cost of the East Mansfield Substation. Vice Chairman Aptowitz questioned the increase in accounts receivable. He specifically inquired about the bakery and the children's consignment shop which are going out of business. He asked Director Babin how MMED was doing with collections. Director Babin said that MMED does not allow a business to go more than 40 days without beginning termination procedures. Vice Chairman Aptowitz believed that if AIR was up then energy sales should also be up by about the same amount. He questioned these percentage changes and wondered ifMMED felt comfortable with them. He said he wanted to make sure this was not due to an AIR or collections problem. Director Babin believed it was because MMED was billing more. He 3 .. ....,--. ~ 1r said it was his opinion that MMED doesn't have a collections problem and assured the Board that the collection policies were being enforced. Vice Chairman Aptowitz reiterated that he wanted to make sure NR was not growing because people weren't paying their bill. He asked Director Babin if he felt comfortable that collections were in good shape. Director Babin answered yes. Clerk Moran questioned the decrease in the year-to-date energy usage by High Tension customers and wondered what the reason for the drop was. Director Babin said he would check that out. Commissioner Dentino questioned the increase of 58.1 % in municipal sales revenues. Staff Accountant Thomson said it was due to the recovery ofthe undercollected generation charges. Another reason is that this was the only category where kWh sales increased from FY08 to FY09. In addition, streetlight and security light sales were not included in FY08 but are in FY09. Commissioner Dentino inquired as to the 17.3 % decrease in rate stabilization revenue. Director Babin said that when bidding power, the later' years of the contracts with both Calpine and then Dominion typically were closer in price and over time the two converged. Commissioner Dentino then questioned the operations payroll-expense which increased by 10.5%. Staff Accountant Thomson said the primary reason for this was an additional pay week in FY09. Director Babin also pointed out that there were two employees who took extensive sick time due to surgeries which were not work related. Commissioner Dentino asked about the 72% increase in customer accounts expenses. Staff Accountant Thomson said that collection costs were now being accrued at $5,000 per month. Director Babin explained that the $5,000 accrual replaced the one time charge that MMED made to bad debt in January of each year in order to more accurately reflect MMED's expenses on a monthly basis. Staff Accountant Thomson said that postage had also gone up by $10,000. Director Babin said that there were also more credit card transactions for bill payment. Director Babin noted that MMED is working with the Town Treasurer to lower the rate on the credit card transactions. Mansfield High School Robotics Program - Director Babin said he was recommending the Board make a donation to the Mansfield High School Robotics program in the amount of $2,000. Mr. James Carver-Brown, faculty advisor for the Robotics, said that their expenses for the year are $4,000 and they have $2,000 left from the FY08 allocation so they would only be in need of another $2,000. Commissioner Dentino pointed out that the leftover $2,000 from last year should have gone into free cash so the Robotics team actually doesn't have it anymore. He believes they should be asking for $4,000 not $2,000. Town Manager D' Agostino said he would look into that. 4 , ..'.......--.--.-....,..--.-...-- " Chairman Baldwin suggested tabling the motion until January so the Board could figure out if they needed to vote the $4,000 or $2,000. The motions were withdrawn and the issue was tabled. East Mansfield Substation Project Update - Engineers Langille and Cox gave the Board an update on the progress of the proposed East Mansfield substation since the last meeting. They referred the Board to a critical path schedule that MMED had included in the Board package. Engineer Cox pointed out the critical dates are for April 2009 for site plan review and May 2009 for bond authorization at the Town meeting. He said that MMED is also working on a temporary access agreement with National Grid for soil boring. Engineer Cox stated that soil borings are needed for the foundation design and MMED is in the process of selecting a geotechnical engineering consultant and a soil boring contractor. The MMED staff has also reviewed the station metering and relay one-line diagram with PLM. That diagram will be submitted to NGrid for their approval to finalize the electrical design of the substation. Engineer Cox then reviewed the proposed schedule. He reiterated site plan review in April 2009 and a request at Town meeting for bond authorization in May 2009. Material procurement is planned for the Fall of 2009 while station and transmission lines construction are slotted for 2010 and 2011 with an in service date for Summer 2011. He emphasized the importance of dates as they affect the ordering of equipment. Transformers take a year to receive once they are ordered. Commissioner Levine stated that she is concerned with aesthetics. She wondered if there would be a time that the MMED staff would sit down with the Board and show them the designs. Director Babin answered yes and that this is a process that will involve the neighborhood as well. Clerk Moran commented how tight the time line was. Vice Chairman Aptowitz agreed, saying he was very concerned about the time line. Commissioner Dentino questioned whether MMED knew what would be involved with siting the underground facilities down Bird Road as far as available space to locate equipment. Engineer Cox answered no, they hadn't gotten that far as of yet. MMED Education and Professional Development Policy - Chairman Baldwin stated that the Board had rescinded their Professional Training and Travel policy until the January 7, 2009 Selectmen's meeting. Director Babin said that he had asked the Board a couple of weeks ago at a Selectmen's meeting if they could discuss their new policy as it affects MMED at a Light Commissioners meeting. He also made it clear that he would be segregating the issue of the requirements for his presidency of NEPP A from the training and travel policy he would be discussing this 5 . ....._."'"u.. ...-._-~_._-.. T ""Ir evening. He plans on giving the Board a packet of information on his NEPP A presidency and addressing it as a separate issue in January. Director Babin stated that the Board's policy as proposed would preclude the Light Department from participating in any training. He understood that he could come forward to seek waivers for specific training but said that a lot of the training available to MMED does not result in a license or certificate, as the policy had specified. He asked that the Board understand that the nature of the high voltage work being done at the Light Department is far different than what other departments do. Director Babin pointed out that in addition to the fact that some training does not result in a certificate, some of the required schooling needed for operational employees requires out of state travel because the NEPP A regional training center is in Pascoag, Rhode Island. He also cited an example of two employees who are currently entering the third year of a three year substation operator training program and an apprentice lineman who is only entering his second year of a four year program required for apprentice lineman training. Director Babin then stated that in regards to use of vehicles to travel and training, an employee driving their own vehicle on Town business is a liability issue. According to a letter included in the Board package from Richardson-Cuddy Insurance Agency, the town's insurer, the employee's auto insurance is the primary insurance if the employee takes their own vehicle. Ifthey're not insured or if their car is not roadworthy that could create a liability issue for MMED if something happened. He also noted that an employee could elect to not participate if they had to take their own car. Director Babin told the Board that several employees have already been signed up for training they are now taking with the understanding that they would useMMED's vehicle for transportation. Director Babin pointed out that MMED purchased a vehicle in its FY07 capital budget specifically for staff travel to training and seminars and that it was being used for these purposes. Director Babin then stated that he thinks the Board's policy is problematic. He didn't agree with the idea of telling an employee they can have the time off to attend a course, which means that MMED agrees with the need to take the course, but that they would have to pay for their own travel expenses. He believes training is a high priority for the managers of the Town departments and that in his opinion training would be one of the last things to cut, not one of the first. He reminded them that when reducing budgets, the managers should be given the responsibility of evaluating departmental priorities and recommending the cuts to be made. He told the Board that the type of policy they originally approved can be perceived as anti-employee and it does have an impact on employee morale. Commissioner Dentino said that training is important but that the everyday work is most important. Director Babin said that providing training is a responsibility of management to help people perform their jobs. Commissioner Dentino could not understand the need for the two individuals to continue going to substation operator training as two others had just finished which will give MMED a 6 " total of five people. He thought that two people doing this job is sufficient and three would be pushing it. He believed that five would be overkill. Director Babin said that MMED now has five people on call for substation emergency work. He stated that those five people must be fully trained to deal with the range of situations that could develop in an emergency. He further added that it would be unfair to put only two people on'standby because they would be on call every other week. He believes this is also a union issue. Line Foreman D' Ambra said that there needs to be a qualified person monitoring the substation at all times and that having only two qualified people is too thin. Commissioner Dentino said that customer service training is not a need or a necessity. He pointed out that most of the customer service reps have been doing their job for a number of years. Director Babin noted that training opportunities for customer ~ervice personnel is sparse but they also need periodic training to keep their skills sharp. Commissioner Dentino then stated that if they had to lay-off anyone because of costs that aren't a necessity, it would be unfortunate. Chairman Baldwin asked about the possibility that the money already paid for the customer service training could be refunded. Director Babin said he hadn't looked into that. Director Babin said that he firmly believes in the importance of employee training and stated that he respectfully disagreed with the policy the Board had previously approved. He then stressed that although he wanted it understood that the Light Department is not better than anyone else, it is significantly different. Commissioner Dentino said that he doesn't want to treat the Light Department differently from the rest of the Town. Commissioner Dentino believes in the philosophy behind the policy and also thinks that the scrutiny is necessary. He pointed out that there is an opportunity to make specific training requests. He also commended Engineers Langille and Cox for driving back and forth each day to a two day workshop in Connecticut instead of staying overnight. Director Babin said that his problem is not what the Board said but how they stated it in the policy. He reiterated that employee training is a high priority and the policy as approved doesn't convey that importance. Vice Chairman Aptowitz said that the purpose of the policy is fiscal responsibility. He and the rest of the Board are concerned about where the money is coming from during this economy. He said it's not that they don't trust anyone. He also wanted people to understand that the Board is not "anti-employee". Clerk Moran said he doesn't think each and every request needs to be run by the Board. He doesn't think any discretion is being left to anyone else to make decisions, which he feels is a major flaw of the policy. He did, however, agree with Commissioner Dentino that there are certain things that need to be cut out in these times and wondered if customer service training was a must. 7 .. -~"''''_._''-...,...---'_.._._..._' ., Commissioner Levine believes it's up to the Board to set the parameters for department heads and how the department heads chose to reduce costs is up to them. Chairman Baldwin agreed with Commissioners Dentino and Aptowitz that some of the seminars and training are not necessary. She said she is not trying to be anti-employee. She also agreed with Commissioner Moran that there are flaws in the policy. She thinks they need to put their ideas together and be united. She wants to do whatever is necessary to save employee jobs and avoid lay-offs. Proposed Modification of General Service and General Service Primary Voltage Rates - Director Babin explained to the Board that under the commercial tariffs, those that involve a demand charge use a minimum of 80% of the demand rate from the prior 12 months to be billed as a "demand ratchet". He proposed that the "ratchet charge" be eliminated but only from a final bill and that the actual demand be used instead. He believes that currently, customers are being penalized on their final bills under the demand ratchet, which skews the bill significantly, and thinks it would be fair to eliminate the ratchet for the final billing on an account. Director Babin said he would request that the Board vote the motion this evening, after which it would be published in the newspaper, filed with the DPU and would then go into effect the following month. Motion: To proceed with the proposed modification of General Service and General Service Primary Voltage Rates as outlined. (Moranl Aptowitz) Passes 4/0 (Levine bad stepped out) Old and New Business Clerk Moran questioned whether MMWEC was still a solid 17 members. Director Babin answered yes and that he was not aware of anyone who had submitted a one year notice to terminate membership. Commissioner Levine wondered why the audit committee had no one from the Light Department. Vice Chairman Aptowitz stated that you would not have a staff person on an audit committee. Commissioner Dentino questioned the breakdown of legal bills and thought the dollar amount he was given for Brody, Hardoon, Perkins and Kesten regarding the Beliveau suit was too low. It also bothers him that bills from Kesten's office are still coming after all this time. He gave a stack of bills to Director Babin and asked that he be given all of the information he requested that was notated in the bills themselves. Commissioner Dentino also requested back-up on out-of-state travel. He wanted details on the travel such as hotels, planes and meals, not on the training. Director Babin said he would provide that. 8 .. "'__"'~""'h._"_'~"_'.~'__"~''''''''''~_~_~'''''' of Commissioner Dentino asked if a reconciliation of petty cash was ever done and could he get the information. Staff Accountant Thomson said it was done monthly and that the petty cash total was $125. Director Babin said that he did not have the Live Wire alternatives with him that evening and thought it could be discussed later with the budget. Director Babin did not have a final number as of yet for the Generation Charge for January but he believed it would be approximately 12.75 cents per kWh. Director Babin told the Board that MMED did send a crew to West Boylston to help out after the severe ice storm in Central Massachusetts the prior week. They were going to be relieved by another crew today and that MMED would keep a crew in Central Mass, as long as it took to get everyone back up and running. Motion: To adjourn the Light Commissioners meeting at 10:30 (Aptowitz) Passes 5/0 Respectfully submitted: Jacqueline Lee 1/12/09 1i~ 1J11,~1-tP~ S(gnature of Clerk 1-/9/0Cj Date of Approval 9 ~~...-.-._.".,,,-_..",_.__._----....,..-..... . ~ -,,---"'~"~-"'-'-"-~~~~-'-'~"_.~-""""'~-''''---'-'-'..-._'~-