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HomeMy WebLinkAboutLIGHTCOMM MIN03142011 Mansfield Municipal Electric Department Minutes of Light Commissioners Meeting March 14,2011 Present: Chairman Jess Aptowitz; Vice Chairman George Dentino; Clerk~W1\e~~~I~:f,F"ICE Commissioner Douglas Annino; Commissioner Kevin Moran; Director I d'ary Babin; Staff Accountant Ken Thomson; Financial Assistant Jacqueline Lee and Town Mana. IJ."It<is P I: Sq Light Commissioners Meeting MANSFIELD MASSACHUSETTS The meeting was called to order at 7:00 PM followed by the Pledge of Allegiance. Chairman Aptowitz stated that this meeting was being televised and taped by Mansfield Cable Access. There was no one signed up for Questions and Comments. Motion: To approve the minutes of the January 24, 2011 Light Commissioner's meeting (Kozlowski! Annino) Passes 4/0/1 (Moran abstained) Financial Report for January 2011 - Director Babin presented the financial statements for January 2011. He said that net operating income year-to-date through January was $1,813,674. MMED's operating cash position through January was $8,824,030 which was up from $5.1 million the prior year. Director Babin said that sales were strong, up 5.5%. He reported that the depreciation fund stands at $5,721,877. Staff Accountant Thomson told the Board that operating expenses are approximately $993,000 under budget. MMED's net operating income came in at $1.8 million which represents a 4.8% rate of return YTD. Staff Accountant Thomson stated that there was $121,000 less in receivables than last year. Vice Chairman Dentino questioned the 4.8% rate of return as he thought the Board had previously voted on a 6% rate of return. Director Babin clarified that the 4.8% is the accrual of net income YTD through the first seven months of the year but did agree that the target is 6%. Town Manager Ross explained that the amount of plant is not going to go up before the end of the year but MMED's revenue will so they will eventually come closer to the target rate of return of6%. Approval of 2010 Department of Public Utilities Annual Report- Director Babin told the Board that every electric company in Massachusetts must file this report with the DPU and it is based on the calendar year. He said that this is a statistical report that contains financial and energy sales data as well as physical system information. Director Babin also explained that the first six months of this report are from FY10, which has audited financial data, but the last six months of the report is based on information from FYl1 which has not yet been audited. He checked with the DPU and there is no requirement that audited financial data is required for the report. Director Babin and Staff Accountant Thomson reviewed some of the highlights of the report for the Board. Vice Chairman Dentino then questioned the possibility of the consolidation of water/electric meter reading which has previously been mentioned. Director Babin said that he and Town Manager Ross have discussed this but it would require a significant capital contribution on the part of the Light Department to change out all of its meters. Town Manager Ross said he would ^ ^^,-^^--_. T ...,.......... .. like to consolidate the billing and metering structure. Everything would be on one bill to make it easier for the customer who would be able to pay all utilities with one check which he believes could be easily broken down in the Treasurer's Office. He also believes this would save on postage and meter reading. Chairman Aptowitz suggested that this be brought up again at a later date. Motion: To approve the Mansfield Municipal Electric Department Calendar Year 2010 Department of Public Utilities Report (Moran/Kozlowski) Passes 5/0 FY12 Budgets - Although both the FY12 Capital Budget and FY12 Operating Budget were on the agenda, Chairman Aptowitz stated that he did not want to have a detailed discussion on the budgets as the FinCom was not ready to give their opinion to the Board on them. Town Manager Ross told the Board that for payment of the new substation, he believed that MMED should pay whatever they could with cash. He said that the FinCom, however, made the point that all of that money would be coming from the present ratepayers and that the future ratepayers should have a stake in paying for the new substation as well. The FinCom is suggesting that a portion of the cost be allocated to debt service. Jack Goldberg from the FinCom joined Director Babin at the table. He said that the FinCom would like to see MMED's proposals for a five year plan. He said they are comfortable with how the budget is now but need more information before they can move ahead. Chairman Aptowitz asked Director Babin and Town Manager Ross if they thought they could get together in the next couple of weeks and be prepared to meet and discuss the budgets, possibly at a Wednesday night Selectmen's meeting. Commissioner Moran asked Director Babin if there would still be enough money on hand and available for emergencies. Director Babin answered that he wouldn't want the depreciation reserve to be less than a couple of million dollars. Vice Chairman Dentino commented that MMED must have liability insurance. Chairman Aptowitz requested that be checked. Vice Chairman Dentino stated that borrowing for the new substation would have a huge impact on the elderly with fixed incomes. He suggested that maybe this burden should not be put on them. Chairman Aptowitz suggested that MMED ask Moody's to come after the audit is completed. Vice Chairman Dentino believes the Light Department should have a higher rating than the Town and it doesn't. Chairman Aptowitz then asked when Town Treasurer Donovan could become involved and when could they set a date to continue with the budgets. Town Manager Ross suggested Wednesday, April 6, 2011. Mr. Goldberg said that would work as long as the FinCom had the information prior to the FinCom meeting before the Selectmen's meeting so they could review it. Town Manager Ross said he wants this done in a couple of weeks. 2 T 1 ITI' Mr. Goldberg then brought up the subject of the PILOT. He noted that it hasn't been looked at in eight years and the FinCom feels it's time to revisit it. Director Babin thanked Mr. Goldberg for his efforts. Policy Language for Three Phase Services- Director Babin told the Board that it was suggested by Town Manager Ross at the February 9, 2011 Board meeting that single family residences requesting three phase electric service be specifically authorized by the Light Board in addition to the permitting authority, which is the Wiring Inspector. Director Babin said this would serve as a check and balance to preclude businesses from being located in residential neighborhoods. Language to this effect was included in the Board package but was not voted. Old and New Business - Commissioner Moran commented that ifMMED is going to upgrade meters then they should move in the direction of SmartGrid, although he realizes it is a huge investment. Vice Chairman Dentino inquired as to whether the new working hours of 8:00 AM to 4:00 PM had been implemented with the Light Department staff. Both Director Babin and Town Manager Ross said that they had. Vice Chairman Dentino then inquired about the shortage of staffing in the office. Director Babin and Town Manager Ross said that they were working on it and some interviews had taken place. Vice Chairman Dentino questioned how they could be actively pursuing filling the position if it had not yet been posted internally. Town Manager Ross said he was acting on the advice of legal counsel to interview these people who had been laid off from the Town Hall and then to post the job afterwards. Director Babin thanked Jackie Lee, Elaine Peri and Laurie Anderson for picking up the slack and performing the work of five people with only three people over the last couple of months, which has not been easy. Vice Chairman Dentino then pointed out that temps had been hired. Director Babin clarified that one had been brought in but has already left for another position and another one would be starting but he believes it is fair to say that all of the work is being done by these three people. Vice Chairman Dentino then suggested that the hiring process be expedited so as not to lose the services of those three employees through overwork. The next full Light Commissioners meeting was set for Monday, April 11, 2011 at 7:00 PM. Motion: To adjourn the Light Commissioners meeting at 8:45 PM. (Moran) Respectfully submitted: Jacqueline Lee 4/11/11 .,..' /,,..-- ~/ L----- 4-((-(( Date of Approval /<^ Signature of Clerk 3 , --r- ITI'