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HomeMy WebLinkAboutLIGHTCOMM MIN05242010 Mansfield Municipal Electric Department Minutes of Light Commissioners Meeting May 24, 2010 !;-'C il./L .",.- I: ~9 Present: Chairman Jess Aptowitz; Vice Chairman George Dentino; Clerk Olivier Kozlowski; Commissioner Kevin Moran; Commissioner Douglas Armino; Director Gary Babin; Engineer Chris Cox; Staff Accountant Ken Thomson; Financial Assistant Jacqueline Lee and Town Manager Bill Ross Light Commissioners Meeting The meeting was called to order at 7:00 PM followed by the Pledge of Allegiance. Chairman Aptowitz welcomed newly elected members Douglas Armino and Olivier Kozlowski to their first Light Commissioners meeting. He then announced the reorganization of the Board with Jess Aptowitz continuing as Chairman, George Dentino acting as Vice Chairman and Olivier Kozlowski acting as Clerk. Unfunded Health Care Liability- Town Manager Ross told the Board that he has reviewed this issue. He said that the money the Town had set aside for their portion of the Unfunded Health Care Liability was diverted to other uses in the budget so the Town and the Schools will not be putting any money into the fund this year. He pointed out that any money the Light Department puts into this fund is segregated and is for the sole use of the Light Department's obligations. He also said although there is a mechanism to put money into the fund, there isn't one which allows you to take money out at this time. His recommendation is to not make contributions to fund retiree health care by the Light Department in FYll. Director Babin wanted to remind the Board that the Light Department did start funding the account in FYIO in the actuarial recommended amount of $194,000 and is currently accruing this monthly. He said this will end with the June payment but he did want the Board to know that the Light Department already has a segregated account which will have $194,000 in it. Motion: For MMED to suspend funding of the Unfunded Health Care Liability Fund until further notice (Annino/Kozlowski) Passes 5/0 Motion: To approve the minutes of the AprilS, 2010 Light Commissioners meeting (MoranlDentino) Passes 3/0/2 (Annino and Kozlowski abstained) Financial Report for March 2010 - Director Babin reported that the net operating income year-to-date through March was $2,076,423. MMED's operating cash position through March was $5,430,926. This does not include an accounts receivable of $965,567 due to an undercollection of the Generation Charge. Year-to-date sales are down 5.4%. MMED's depreciation fund stands at $4,708,800. Staff Accountant Thomson reported that controllable expenses were $224,000 under budget. This is due primarily to lower vehicle repair cost, outside engineering and legal expenses than IT' are budgeted. He also said that the customer deposit account continues to grow. It is currently over $600,000 which includes one large industrial customer deposit and one large commercial customer deposit. Staff Accountant Thomson also reviewed the details of the $75,287 in non-operating income. Chairman Aptowitz questioned whether MMED's cash on hand and depreciation funds were invested in something such as certificates. Director Babin said the Town Treasurer is in charge of investing that money and that, other than the depreciation fund which is segregated by law, MMED's operating cash is coming led with the Town money. Town Manager Ross commented that it is a benefit that the Town has this option. Chairman Aptowitz questioned the aging of the accounts receivable and wondered how that was doing in this economy. Director Babin answered that the business receivables are good but that there are problems with the residential receivables because of this economy and unfortunately, many payment plans have been given out. He noted that the moratorium on shut-offs has been lifted but that a lot of customers have not paid all winter long knowing they could not be shut off. East Mansfield Substation - Resident Michelle Woods from 61 Bird Road voiced her concerns about the color of the wall which will surround the new substation. Chairman Aptowitz wondered if anything planted by MMED on a resident's property belongs to the resident. Ms. Woods stated that if it's on her property it belongs to her. Chairman Aptowitz wondered if someone moved, could the new owner come along and cut the plantings down. Clerk Kozlowski pointed out that they would just have a better view of the substation. Commissioner Annino said he wanted to vote on the color of the wall this evening and move forward. Chairman Aptowitz noted that at the Town Meeting MMED's borrowing of $8,000,000 was approved. Motion: To accept the recommendations of the Planning Board which were made in the April 8, 2010 letter with the exception of No.1, the color of the perimeter wall, which will be determined at a later date (MoranlDentino) Passes 5/0 Appliance Rebate Program Results for 2009 - Director Babin stated that the Appliance Rebate Program offered by MMED is part of MMED's Residential Conservation Services Program (RCS) obligation with the Massaschusetts DOER. MMED is required to spend 'l4 of 1 % of operating revenue on residential conservation services. For 2009, MMED's target expenditure was $78,000 and that slightly over $80,000 was expended. Director Babin said that the appliance rebates make up 60% of the RCS program costs and that 542 of the 571 residents who submitted applications qualified for rebates. He noted that MMED does have appliance rebate forms in the local stores. Vice Chairman Dentino thought there was a vote to cut the newsletter to twice a year. Director Babin said no, it is currently 3 times a year as a bill stuffer and that it was voted as part of the budget. Vice Chairman Dentino voiced his displeasure about it being worked back 2 d_e" __,___e__'______ I \l'r into the budget and going forward he would like to see a better breakdown within the budget. Chairman Aptowitz commented that items such as this are included in the budget and the Board doesn't see every line item. He feels it should be specifically brought to the Board's attention if it was something that the Board themselves had changed. Director Babin stated that MMED does go to great lengths to spell things out and he believed the newsletter issue has been raised with the Board in budget discussions. Berkshire Wind Project Opportunity - Director Babin told the Board that the Berkshire Wind project is a renewable energy project that is the largest wind project in Massachusetts and is owned by member utilities from MMWEC. The original developer, with whom MMWEC had a contract for purchasing power, ran out of money and then sold it to MMWEC. It is a wind farm being installed on Brody Mountain in western Massachusetts. Director Babin stated that a resort developer had bought land on the other side of the mountain and filed an injunction because of the impact the wind project was having on the value of the condos they are building so work had to stop on the energy project. Sterling Light Department is trying to sell half of their capacity of the project, 385 kW, and asked MMWEC to market it for them. Director Babin said he was the first to respond and wanted to bring it to the Board to determine MMED's level of interest in participating in this renewable energy project. MMED would be required to enter into a purchase power agreement, would absorb Sterling's expenditures to date and would also be responsible for the remainder of the project's capital costs. Director Babin believes it's a philosophical decision for the Board to consider and would be a commitment by the Board to developing a green portfolio as renewable energy costs more than conventional energy. Clerk Kozlowski said he would be hesitant to buy into a lawsuit as it may be years down the road before the lawsuit is finally settled. He also said he was surprised an injunction would be issued on that basis. Commissioner Annino believes wind farms are not always what they're projected to be but his philosophy is that he is against adversely impacting the environment. He agrees with Clerk Kozlowski and is against buying into a lawsuit. Vice Chairman Dentino said he saw this as a replay of Seabrook. He believes that entering into something that is green is not smart because it is too expensive. He stated that no one in Town wants more expensive energy, they want cheaper energy. Vice Chairman Dentino pointed out that Director Babin is now on the MMWEC Board. Director Babin commented that this occurred because it was at the urging of the Board. Chairman Aptowitz said that he believed that someone from Mansfield should be on that Board and had requested that Director Babin pursue this. Vice Chairman Dentino said he was against it because it meant more hours out ofthe office. Commissioner Moran said he agreed with the others in regards to the lawsuit but pointed out that some businesses in Mansfield would be unable to do business with Walmart if MMED can't offer some kind of green energy. Walmart requires that some piece of the energy 3 11'I" portfolio be green. He agreed that there was uncertainty with this project but wants to keep looking for another green project. Chairman Aptowitz inquired as to a possible wind tower in Mansfield. Director Babin said wind is feasible in Massachusetts only along the coast or in the Berkshires. He said it is too flat here and wind propagation studies have shown that there would not be enough wind to support the cost. Motion: To approve MMED's participation in the Berkshire Wind Project (Dentino/Moran) Fails 0/5/0 Evaluation of Solar Panel Installation for Police Station- Director Babin said that Police Chief O'Neil has inquired about solar panels for the police station. Director Babin had prepared a brief analysis showing how much it would cost to install these. The smallest installation would be 10 kW and cost approximately $70,000. This size installation could generate about 2% of the police department's energy. Director Babin told the Board that he has heard from about a dozen residents who want to install solar panels. He noted there is approximately a 15 year payback. The Board did not support the idea. Low Voltage Facilities on Private Property - Director Babin stated that MMED's ownership of low voltage facilities on private property had been an ongoing issue and the Board had requested it be discussed again. He had distributed to the Board a memo summarizing the issue and making a recommendation to grandfather existing facilities while not performing installations such as this in the future. Commissioner Annino questioned MMED's policies and why they're not the same as National Grid's policies. Director Babin suggested that MMED's policies are in large part consistent with NGrid's policies but that MMED had certain installations that it had constructed and assumed responsibility for. Vice Chairman Dentino said he has questioned the liability of this all along. He believes the Town doesn't want to do this, take on the maintenance of the equipment or take on the liability. Director Babin believes MMED should look at this situation prospectively and establish a policy for going forward. The Light Department did what they did in the past for good reasons and had an obligation to assume the maintenance responsibility for facilities it installed. Commissioner Moran wondered how practical or realistic it is that MMED is going to say to an existing customer after 20 years, you're now responsible. He also questioned aerial services to homes and the associated air rights. Clerk Kozlowski questioned the grand fathering and wondered if there might be a happy medium. He suggested that when something is ready to be replaced on the existing installations then the customer could take ownership of the facilities. 4 IT'" Chairman Aptowitz asked if there were be insurance issues for MMED if a customer's equipment is damaged. Director Babin said that regardless of the equipment ownership issue, MMED would only be liable if it were shown that it exhibited gross negligence in supplying service. Vice Chairman Dentino suggested taking more time to look at this situation and not making a decision tonight. Chairman Aptowitz suggested a subcommittee. Director Babin wondered why that would be necessary as this issue has already been reviewed several times. Chairman Aptowitz pointed out that there is 40% new membership on the Board and this issue is important. Chairman Dentino wants to see how National Grid handles ownership of facilities of this nature. Town Manager Ross offered to have MMED staff research it and get back to the Board. Old and New Business Chairman Aptowitz will work out a June meeting date for the next Light Commissioners meeting. Vice Chairman Dentino stated that he had previously brought up the increase of hours being worked at the Light Department and he believes it is still going on. Director Babin said that he has talked to Town Manager Ross about this issue. Town Manager Ross said that he has been reviewing employee time cards to monitor the situation and everyone is utilizing their comp time in order to get it off the books. Vice Chairman Dentino wondered if it was necessary to have Light Department staff attend Light Commissioners meetings. He suggested as a cost cutting measure that Director Babin could present the financials himself. Director Babin said he believes it is important to have staff attend the meetings for many issues, especially in regards to discussion about the new substation. He commented that Board meetings are infrequent so that being able to address issues on the spot was critically important. Vice Chairman Dentino questioned flex time at MMED's offices. Director Babin said that the bargaining unit agreements define the work day and any hours outside of that are considered overtime. Director Babin then noted that the Board seems to be understanding of the line crew as they are allowed to earn overtime a couple of Saturdays a month. He wondered why the operating crew could work scheduled overtime while the office staff is being scrutinized for working very little overtime and only when it is needed. Vice Chairman Dentino then asked why the Light Department does not work the same hours as the Town Hall. He believes everyone should be working the same hours of 8:00 to 4:00. Director Babin believes that this is the first time this issue has been raised and noted that Town Manager Ross has been reviewing the Light Department time cards. 5 n Vice Chairman Dentino then said he does not understand why employees who have not previously worked overtime now are. He pointed out that no job descriptions have changed. Town Manager Ross said this will be taken into consideration when negotiating the new contracts. Chairman Aptowitz said that the end of the fiscal year is approaching and there are always concerns about the calculation of the intergovernmental charges. These are the services paid on behalf of the Light Department by the Town for which they are reimbursed. He wondered if the Board could be furnished this information prior to the entries being recorded. He says he has concerns about the calculations and where the numbers are coming from. He wants to make sure what the enterprise accounts are paying is fair and accurate. Town Manager Ross will speak to Town Accountant John Stanbrook and see where he stands with that. Chairman Aptowitz would like to see MMED's web site reviewed to become more user friendly. He suggested that it be more like the Town's website. Chairman Aptowitz welcomed back Line Foreman Gary D' Ambra who returned to the Light Department after being out on sick leave. Chairman Aptowitz expressed to Walter Parker, Director of Buildings and Grounds for the Schools, his deepest sympathies on the loss of his son. Motion: To adjourn the Light Commissioners meeting at 10:05 (Moran) Respectfully submitted: Jacqueline Lee 7/14/10 /("'~ .' . /.~ "/ ..' /' ~- <-.--- Signature of Clerk Date of Approval 6 ...-----..,,------. I !Ir