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HomeMy WebLinkAboutLIGHTCOMM MIN11162009 i"] Mansfield Municipal Electric Department Minutes of Light Commissioners Meeting" .. November 16, 2009 " --~ fCE ':-,: lID Present: Chairman Jess Aptowitz; Vice Chairman Kevin Moran; Clerk Ann Baldwin; Commissioner George Dentino; Commissioner Sandra Levine; Director Gary Babin; Engineer Chris Cox; Staff Accountant Ken Thomson; Line Foreman Gary D' Arnbra and Financial Assistant Jacqueline Lee Light Commissioners Meeting The meeting was called to order at 7:00 PM followed by the Pledge of Allegiance. Motion: To approve the minutes of the October 19, 2009 Light Commissioners meeting (BaldwinlDentino) Passes 3/0 (Moran and Levine had not yet joined the meeting) Post Employment Benefits Plan Funding - Jack Goldberg from the Finance Committee joined Director Babin for the discussion of the Post Employment Health Benefits Trust Fund Account for MMED employees. Director Babin told the Board that MMED had followed through as they had been instructed with establishing a Post Employment Health Benefits Trust Fund Account and had processed the first warrant to begin funding the account. He said MMED was ready to proceed when they were told to stop and hold up that particular warrant. Mr. Goldberg explained that the Finance Committee had advised the Selectmen to agree to begin the funding of the accounts (one for the Town and one for the Light Department) in FYIl. He thought that what MMED was about to do was inconsistent with what had been agreed upon. He wanted to know if there were any reservations from the Light Commissioners I Selectmen about the disparity in the timing. Director Babin said he was unaware of the timing issue and thought that MMED staff was doing what they had been told to do. He said he was unaware that funding was supposed to begin in FYIl. He believed that MMED had not been involved in the meetings where the funding requirement to begin in 2011 was discussed. Mr. Goldberg said there were other accounting issues to be considered. There has to be an appropriation to restrict the use of the funds. Also, if MMED was to begin funding the account now, one of the other considerations is that the long-term liability needs to be recognized. Commissioner Dentino said his recollection was to put the account in place in FYII. He commented that other towns have found an avenue to begin collecting. He believes they did it through bonds. Mr. Goldberg thought by using bonds it was just moving debt from one spot to another. The example he gave was using one credit card to payoff another. .. ....... _...............-_....."~...~.'--'-~-...~_.~._,-~._..._....-._~.,-,....,- Chairman Aptowitz said that a plan needs to be made with the Treasurer. He posed the question to the Board of whether they wanted the Light Department to start collecting now or not. Clerk Baldwin stated that the issue is whether to fund the accounts for both the Town and Light Department at the same time or allow the Light Department to start earlier. She believed the auditor suggested starting right away. Director Babin noted that in doing what it had thus far, MMED has fulfilled the requirements of the M.G.L. and that it had already established the account with the Treasurer, who will be the custodian of the account. Clerk Baldwin inquired as to the negative impact this could have on the Light Department. Mr. Goldberg answered that there wouldn't be any negative impact on the Light Department. He said that the issue is if the Light Commissioners think its fair for the Light Department to start funding their account when the Town is not in a position to do the same. He noted that the Finance Committee's recommendation was not to budget this until FYIl. Commissioner Dentino agreed that it would not be fair to the municipal side. Commissioner Levine disagreed, saying that if the account was already established, why not let the Light Department get started. She stated that the Light Department is run by a different set of rules and regulations than the Town. She also noted that the municipal side is going to struggle with funding the requirements but MMED does not have the same limitations so why force the Light Department to wait. Mr. Goldberg again pointed out that it would be more equitable if it was done at the same time for both the Town and the Light Department. Commissioner Levine asked Staff Accountant Thomson how he had arrived at the monthly figure. He said he took the $194,000 annual amount determined by the actuarial study the Town had commissioned to be paid by MMED and divided it by 12 months to come up with $16,166.67 monthly. He said there is a second warrant pending in addition to the warrant for the first payment. Director Babin noted that the Treasurer is ready to establish the account. Commissioner Dentino said that he has philosophical problems with this as he thinks they're separating the Light Department and the Town. Commissioner Levine noted that they are separate. Vice Chairman Moran joined the meeting at 7:40 and the motion was read to him. He then said he believes MMED should start funding this account as soon as possible. Commissioner Dentino reiterated his philosophical view. He said that the point is that the Light Department has the ability to raise rates and the Municipal side doesn't. He believes everyone should be treated the same. Director Babin added there was no intention to raise rates. Motion: To establish a Post Retirement Health Benefits Trust Fund Account to cover the Mansfield Municipal Light Department cost to fund future health care costs for its employees and to commence funding in FYIO. (Levine/Baldwin) Passes 3/2 (Dentino and Aptowitz against) 2 -....-...,-...---,-.. , ~ Financial Report for September 2009 - Director Babin reported that the net operating income year-to-date through September was $924,277. All major controllable operating expense accounts came in $184,000 under budget through September. He reported that MMED's operating cash position through September was $4,844,285. Energy sales are down due to both the weather and the economy. The Depreciation Fund stands at $4,093,672. Staff Accountant Thomson stated that the customer account expenses and the administrative/general expenses on the profit and loss statement are below both the budget as well as the prior year expenses. The reasons customer account expenses are down is because bill print services are down $9,000; bad debt is down $6,000; newsletter expense is down $4,000 and postage is down $2,000. The administrative/general expenses are down because outside legal expenses are down $43,000 and outside engineering expenses are down $40,000. Vice Chairman Moran questioned the decrease in outside engineering expenses. Director Babin explained that because of the delays in moving forward with the new East Mansfield substation, MMED has been holding off on further engineering work. Chairman Aptowitz said his concern is that if the volume of sales is down overall then the Light Department's fixed costs need to go down too. Director Babin said that this years budget was I % below the FY09 budget and that currently MMED is $184,000 under that amount. Chairman Aptowitz wanted to clarify that the stabilization money the Board voted to use at the last Light Commissioners meeting did not reduce the Generation Charge rate, it just didn't go up as much as it would have. Chairman Aptowitz questioned bad debt and wondered if there are any accounts that should be written off. Director Babin said that is done annually for closed accounts in accordance with MMED procedures and that MMED still pursues the balance even after it is written off. Motion: To approve the minutes of the August 31, 2009 Light Commissioners meeting with corrections (Levine/Moran) Passes 4/0/1 (Baldwin abstained) Motion: To approve the minutes of the October 19, 2009 Light Commissioners meeting with corrections (Moran/Baldwin) Passes 5/0 Streetlight Issues - Director Babin stated that between February 2009 and June 2009 MMED turned off every other streetlight in Town, based on a vote by the Board of Selectmen. There were a total of approximately 1,200 streetlights turned off. He noted that MMED has been getting increasing complaints from residents as the days get shorter and it is more apparent the streetlights are off. Lee Azinheira and Mark Cook from the DPW joined Director Babin for the discussion. Mr. Azinheira said that they too have received complaints. He explained that he has the ability to go into the GIS system when someone calls and check to see if the light is supposed to be turned on or off and then he lets Line Foreman D' Arnbra know in the event it might be a burned out light. Mr. Azinheira can also make the decision to turn a light back on if he feels it is warranted for 3 ..... ..__.........~__,~_,...,_,__",..~..I.,._,.,__.".~.o~~~_~"'.....".-...,- safety reasons. An example would be a streetlight near a crosswalk. Mr. Cook added that they tried to leave at least one streetlight on at every intersection. Mr. Azinheira said that street lighting was the most costly line item in the DPW budget. There were some personnel cuts but if they hadn't turned off some of the streetlights, there would have been even more layoffs. Commissioner Dentino asked if the Light Department was currently removing the photocells from the streetlights. Director Babin answered they were installing dummy photocells that kept the lights from turning on. Chairman Aptowitz asked if the issue with the lights in the school parking lots has been resolved. Line Foreman D' Ambra said he spoke to Walter Parker and it's now a school issue since it's on the customer side ofthe meter. Vice Chairman Moran said he realizes the decision to turn off every other streetlight has not been popular. He did notice when driving the back roads from Foxboro into Mansfield that it did not suddenly become total darkness and he believes Mansfield's lighting is pretty consistent with Foxboro. He stated that it's a decision the Board has made and they have to live with it. Commissioner Dentino mentioned the cost of the work and had difficulty understanding how MMED could charge only $15 per hour for a bucket truck. Director Babin said that MMED keeps very good track of the vehicle expenses such as gas, depreciation, repairs, etc. and that the rate is based on actual costs. Chairman Aptowitz inquired as to who is paying for the holiday lights on the common. Mr. Azinheira said that there is no separate meter for the holiday lighting. Chairman Aptowitz said he would prefer to see more streetlights on. Mr. Cook said that the cost of the holiday lights would not make a significant difference with the streetlights. Mr. Cook then said he has had residents ask about the possibility of paying for their own streetlight. Commissioner Levine questioned whether that would be a security light. Line Foreman D' Arnbra explained that it would not be an actual streetlight but a customer could pay for a security light to be put on an existing pole. Director Babin noted that doing this would be a slippery slope because of the way streetlights were selected to be shut off. His concern was that MMED might require one resident to pay for a streetlight while another resident whose light happened to still be on would not. Mr. Azinheira then announced that there was a water main break at Thomas Street and North Main Street about a week ago. He said the repair work is scheduled for 7:00 PM on November 18. He hopes it will be completed by 6:00 AM the following day before the morning rush. East Mansfield Substation Update - Engineer Cox joined Director Babin for an update on the East Mansfield Substation. Director Babin told the Board that MMED has been seeking final approval from the Conservation Commission on the Natural Heritage Endangered Species Act Issue. Engineer Cox had just come from a meeting of the Conservation Commission where the wetland scientist evaluating this issue for the Conservation Commission had presented his study. 4 Engineer Cox indicated that he was told that MMED can proceed with the substation, which is the result that MMED has been waiting for. He then said that MMED is also working with NGRID to file an environmental notification form and that this form will go to 30 different state agencies as part of the overall approval process for both MMED and National Grid. Director Babin stated that MMED will also need to file a Notice of Intent before they can go to the Planning Board for Site Plan Approval but that the drainage issues must be resolved first. He noted that MMED has lost a lot of time with this project but hopes to have the new substation up and running in 2012. Massachusetts Technology Collaborative - Director Babin told the Board that the Massachusetts Technology Collaborative (MTC) established the Renewable Energy Trust (RET) in 1998 when deregulation was enacted in Massachusetts. Money is collected through rates from investor owned utility customers and put into this trust fund to be used for renewable energy projects. Anyone undertaking a solar project, wind project, etc. can apply for this money. He mentioned that Governor Patrick's Green Communities Act benefits only Towns served by investor utilities since they contribute to the fund. The IODs were forced to fund the trust and municipal light plants were not required. He noted that some municipals have started to join the RET in order to access the funds, in particular if there are some projects being undertaken in their town. Director Babin said that if Mansfield elected to join the trust, approximately $115,000 would be collected annually from MMED ratepayers and the money would be sent to the state. Mansfield would then be eligible to apply for money for a project. He did caution the Board that once you join the MTC, you can't get out. He also noted that very few customers would benefit from this even though the money is collected from all ratepayers. Commissioner Levine commented that only 4 municipals are participating right now and with no opportunity to opt out, she doesn't want to opt in. Clerk Baldwin agreed with Commissioner Levine. Vice Chairman Moran noted that Mansfield has no projects that would qualify right now. He stated that he is wary of getting involved with the State without a way to opt out. He wondered if the state also had the option of changing the rate they charge. Director Babin answered that they did. Commissioner Dentino was in agreement with everyone else. He commented that the State would then own you and control the charges. Director Babin said that he wanted to make the Board aware that this option existed and that the staff will continue to search for green alternatives that also make sense financially. Old and New Business - Clerk Baldwin asked Director Babin ifhe had followed up on the issue she had brought up at the last Light Commissioners meeting regarding the sharing of the condo association duties. Director Babin said that he had made the other unit owners aware of her concerns and that it would be addressed at the next condo meeting, which was being held this week. 5 Commissioner Levine said she was pleased to see the write-up in the NEPP A newsletter which included Director Babin's picture. She was also happy to see the Live Wire newsletter which showed rate comparisons and how well MMED's rates compared with everyone else's. Vice Chairman Moran commented on how the MMED rates are constructed. He questioned the continued lagging of industrial sales and wondered if it will negatively impact the residential rate of return. Director Babin said he will discuss these issues with Mayhew Seavey from PLM and get back to the Board. Vice Chairman Moran asked about Smart Grid and whether MMED has done any further investigating into more advanced metering. Director Babin answered that the work involved is tied to the vacant engineering position. He said that it is a big financial commitment and that he would suggest waiting until the technology shakes out. He indicated that you don't want to adopt a new technology that is unproven. The problem is that you might be the only one using it and if the business were to go under you would have some real problems. Director Babin said that he feels that Smart Grid implementation is a ways down the road. Commissioner Dentino questioned the back-up on the legal bills which was requested at the last Light Commissioners meeting. Director Babin answered that the information was put in the Board member's mailboxes that afternoon. Commissioner Dentino said that previously he had asked the Board to think about the issue of secondary (i.e. low voltage) wires on customer property and who should have responsibility for them. He has concerns and doesn't think they should be the responsibility of the Light Department. He pointed out that anytime anything went wrong it would be up to MMED to maintain or fix the problem. He also pointed out that NGRID does not do this. He suggested the Board set a policy. Commissioner Levine said she would like more information. She said she doesn't know the good side or the bad side of it. Commissioner Dentino said that he does not want this to become a past practice. He wants it to be clear that MMED does not accept responsibility for secondary wires. Director Babin asked if the installations which MMED has already performed would be grandfathered and the policy would apply going forward. Commissioner Dentino indicated it would apply to all installations. Chairman Aptowitz asked Director Babin to make a list of the six or so installations for which MMED most recently took responsibility for discussion at the next Board meeting. Chairman Aptowitz announced the next Light Commissioners meeting will be held on December 14,2009. Commissioner Dentino requested that the Light Commissioners no longer receive their Board packets on Friday afternoons as this does not make for a good weekend. He asked Director Babin if they could please be delivered earlier in the week. Chairman Aptowitz questioned emergency callouts for engineering management. He asked that Director Babin put together a list of how many times they had been called into work after hours over the past year. 6 T .----,~.........~,--~~"'...--..~~,.- Director Babin told the Board that MMED had filed the liens on past due homeowners with the Assessor's Office. The Treasurer will take care of filing a lien at the Registry of Deeds for unprotected customers at an appropriate time as liens cannot be filed with both the Town and the Registry of Deeds at the same time. Director Babin said that resident Gary Forget had asked at the last Light Commissioners meeting whether the Light Department gets reimbursed by the DPW for snowplowing and he indicated that MMED gets reimbursed for their costs. Director Babin said that last year the DPW paid the Light Department $17,588 for snowplowing. Director Babin told the Board he wanted to discuss replacing Ann Langille's position since all Board members were on hand. He then distributed a copy of the Electrical Engineer's job description and told the Board that the job description had been reviewed with the union and that they did sign off on it. He also gave the Board a comparison of municipal light departments that are similar in size to MMED and have similar operating revenues and sales. As far as staffing goes, MMED has 1/3 fewer employees than similar sized utilities and Director Babin pointed out to the Board that this proves that MMED is not overstaffed. He also reminded the Board that the engineer position was fully funded in the budget for FYI0. He told them that MMED is in a good financial position and has a strong balance sheet. Director Babin reiterated there is also a stand-by issue since this position became vacant. Chairman Aptowitz mentioned that earlier they had discussed revenues being down. He noted that on the comparison Director Babin had given out that it did not indicate how many engineers each municipal had. Chairman Aptowitz also questioned the stand-by issue. He pointed out that Engineer Cox, whether he is called in or not, is compensated for being on stand-by. Chairman Aptowitz said he would like to have his questions regarding the on-call status of the engineer position answered. He commented that residents could wonder why if sales are down, how could MMED be adding personnel. Commissioner Levine said that the Board has the responsibility to keep costs down but also not to cripple any department. She noted that they have just heard that MMED can move forward with the new substation. She said that she has always been in favor of filling the engineer's position. Clerk Baldwin said that she disagreed with Commissioner Levine. She believes they should hold off on filling the position. She commented that Town Engineer Alves is currently doing all the work for the Town single handedly. She thinks that to be consistent, MMED should not fill their position at this time. Vice Chairman Moran reiterated that he thought that they previously voted to fill the position. He told Director Babin that he would support this position if it could be geared to someone who could do a lot of grant writing trying for matching funds. 7 ~ 1" ~. ---"~,-",-"",,,-,-~-"---"-----,"-'"--''"'''''-''''' Commissioner Dentino disagreed with Vice Chairman Moran and Commissioner Levine. He thinks that using the new substation as a reason to hire another engineer is inappropriate. He noted that there would be outside engineers involved with that project. Director Babin stated that he and Engineer Cox do a lot of engineering themselves. Commissioner Dentino didn't understand why Director Babin's comparison did not include the number of engineers employed by each municipal. Commissioner Dentino said that he did, however, have that information. He stated that out of 24 municipals, 15 of them outsource for engineering services; 8 of them have 1 engineer and 1 of them has 3 engineers. The municipal which has 3 engineers is Westfield which supplies water, electric and gas. Director Babin indicated that he would like to see a copy of Commissioner Dentino's information. Commissioner Dentino believes that the fact that other municipals have more employees speaks highly of MMED's line crew. He thinks that the fact that MMED has 2 engineers, Director Babin and Engineer Cox, doing the work that other municipals do with I engineer is more than sufficient. Director Babin said that the overall staff size shows that MMED does a lot more with a lot less people. He believes that the amount of work being done reflects the diligent efforts of all MMED employees and that one should not single out just the linemen. Chairman Aptowitz reiterated that he wants to see the information he previously asked for. He then asked whether the Board wanted to make a motion this evening or wait for the information he had requested. Motion: To not authorize the hiring of another engineer for the Light Department (DentinolBaldwin) Passes 3/2 (Levine and Moran against) Motion: To adjourn the Light Commissioners meeting at 9:36 PM (Baldwin) Passes 5/0 Respectfully submitted: Jacqueline Lee 12/21/09 \~"\, (~\\(/i Date of Approval . 8