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HomeMy WebLinkAboutLight Comm Minutes 1/11/1999Light Commissioners Minutes January 11, 1999 r, '1 r, Present: Chairman McCarter, Commissioners Madan, Robinson, and Royle;, ; J John D'Agostino, Town Manager / S Jack Beliveau, Director, Light Department Gary D'Ambra, Electric Department Line Foreman Mike Lawless, Electric Department Temporary MIS Officer Dan Oudhoven, Electric Department Temporary Accounting Officer 1. The meeting was called to order at 7:30 PM followed by the pledge of allegiance. 2. Questions and Comments — None 3. Discussion with Light Department Director Jack Beliveau Mr. Beliveau updated the Light Commissioners on the status of the following, while referencing his report "Board of Light Commissioners Meeting — 1/11/99 ", copy attached. • Financial Status of the Electric Department The Electric Department experienced a deficit of $19,085 in November and the year to date profit is $850,913. Revenues and power sales for November and December have declined, but purchase of power has increased. Mr. Beliveau suggested that this might be due to development of a problem in the billing system, which he is investigating. • Y2K Harris Conversion The Y2K conversion of the Harris software has been completed; however, some problems still exist with the new software such as printer failures and financial reports that will not run. • Billing Customers received two bills payable in January, one of which reflects a January 7 due date, and the other a January 24 due date. The bills are for two separate billing periods. The bill sent out in January, having the January 24 due date, does not have to be paid until February 3. Commissioners questioned the reason for the double billing and asked why it is occurring now when it never has in the past. • Maps and Records Mr. Beliveau reported that the Electric Department presently has no records and feeder maps, no pole maps or records of street lights, etc., which could present a problem if a major storm occurred and outside crews were necessary. The system is being documented on AutCAD using existing Town maps provided by the Town Engineer. Light Commissioners Mtg Page 1 of 5 1/11/99 Commissioner Royle asked Mr. Beliveau questions concerning incorporation of information with the Town's GIS system • Temporary Generators Because of the lack of emergency generators at the Electric Office and Plant, the Electric Department purchased three portable generators at $1,925 each. Town Manager D'Agostino stated the Town Hall also does not have a generator. • Fiber Optic Initiative As suggested by Commissioner Royle, Mr. Beliveau recommended establishment of a Committee to assist with the fiber optic proposal and proposed representatives of small business, industrial development, municipal government, residential users, and the school department. Both the Committee and Mr. Beliveau will present a more formal plan to introduce fiber optics to Mansfield. Commissioners asked questions such as what Mansfield would have to do to get to the same level as the Town of No. Attleboro with respect to fiber optics. • Gilbert Street Sub Station Recommendation Mr. Beliveau recommended proceeding with a study, as requested by Eastern Utilities Associates, at an estimated cost of $23,000, to determine the cost and feasibility of establishing a second supply point at Eastern Utilities existing line at the north end of Mansfield. This may be a potential solution to increasing the system's capacity. Commissioners questioned the reason for study, time frame for the study, approximate cost to upgrade the Gilbert Street substation, and cost of establishing a station at the north end of Town. Motion: To proceed with a study as requested by Eastern Utilities Associates at an estimated cost of up to $23,000, as recommended by the Electric Department Director. (Royle -Madan) (3 -1) Selectman Robinson opposed. Passes. • ADM Cocoa Mr. Beliveau provided each of the Commissioners with a "Large General Interruptible Rate Schedule" that would be utilized by ADM Cocoa. The schedule was prepared by PLM Consultant Mayhew D. Seavey, Jr. Mr. Beliveau requested the Commissioners entertain the schedule at their next meeting, at which time the consultant would be available to answer questions. Frank O'Korn, ADM Cocoa, thanked the Commissioners for reviewing the interruptible rate proposal and stated that ADM Cocoa would like get back on line with Mansfield Electric, and that he looks forward to a continued working relationship with the Town. Commissioners questioned inclusion of a clause to that would allow the To1vn to terminate service, additional users in Town of interruptible service. Mr. Believeau requested the Commissioners write down their questions and he would formulate answers for the next meeting. Light Commissioners Mtg Page 2 of 5 1/11/99 • Staff Reorganization In light of objections raised by the Electric Commissioners to the proposed Comptrollers position, Mr. Beliveau recommended implementation of an organizational structure with the establishment of a MIS Officer, Accounting Officer, and Business Manager all reporting to the Director. The Electric Director requested approval of revised job descriptions for both the MIS and Accounting Officers and stated that two Financial Assistants have been hired and the temporary clerical help have been dismissed. Commissioner Robinson stated that he is not interested in all MIS Officer at this time until the Town reaches a level of fiber optics. Mr. Beliveatt responded that an MIS Officer is required in order to keep the Harris system running because of the lack of support froin Harris staff. Commissioner Robinson commented that this problem did not exist in the past and asked when a MIS Officer would be hired on the Municipal side of government. Town Manager D'Agostino responded that he placed a MIS Officer in the budget for the next fiscal year and that the position could be shared with the Electric Department, but at some point, the Commissioners would need to make a decision to hire more MIS employees as the Electric Department's role grows, ie. Fiber optics, INET. Commissioner Royle asked which entity pays the Electric Department's temporary MIS Officer to assist Municipal Government and asked if it is legal for the Electric Department to do so. To emphasize the lack of support offered by Harris Computers, Mr. Beliveau showed the Commissioners faxes sent to Harris and their lack of and untimeliness of responses. Chairman McCarter asked in what way the MIS Officer assists with Harris, and Commissioner Royle commented that the Business Manager had a wonder fill relationship with Harris. Mr. Beliveau responded that Harris lost twenty staff members and is presently having a difficult time. Commissioner McCarter asked if anyone would be interested in the MIS position on a part -time basis, but Mr. Beliveau responded that a fill -time position is needed. Commissioner Royle suggested the Commissioners invite Harris in to a Conunissioners' meeting to discuss their inability to provide an adequate response time to the Electric Department and difficulties we are experiencing with their company. Mr. Beliveaur responded that Harris would charge approximately $5,000 to $6,000 to attend a Commissioner's meeting for this purpose and suggested, rather, getting statements from other municipalities who are also experiencing difficulties with them. Commissioner Robinson asked if the Electric Department holds a maintenance agreement with Harris. Mr. Beliveau responded that the Town does have an agreement and that he does not intend to pay for last year's or this year's agreement. Commissioner Royle questioned the hourly rates for the Electric Department's tenuporauy Accounting and MIS Officers, number of hours worked on a weekly basis, and if they will be paid overtime for attending this evening's meeting. Commissioner Royle also questioned the proposed salat y range for the Accounting and MIS Officers. Light Coimnissioners Mtg Page 3 of 5 1/11/99 Accounting Officer Discussion among the Commissioners, Light Department Director, and Town Manger followed concerning the Accounting Officer job description, time fame for filling the position, participation by the Town Accountant and Treasurer in the interview process. Motion: That we approve the Accounting Officer position for Mansfield Electric with the elimination of Nos. 11, 12, and 13, with the inclusion of the generic statement "and additional duties as assigned ". (Boyle Robinson) All in favor. Passes. MIS Officer Discussion followed regarding the MIS position concerning the following: placing a cap on the MIS tentporany position, number of hours worked by the MIS temtporaly employee, concerned with dependency on a temporary employee, Electric Department's involvement in unix stiggested, and elimination "completion of a four year academic course in Electrical Engineering" as part of the qualifications and replacement of "Comptroller of the Electric Light Department" with Director of the Electric Light Department in the same section. Motion: To approve the MIS Officer job description with the removal of "completion of a four year academic course in Electrical Engineering" as part of the qualifications and replace "Comptroller of the Electric Light Department" with Director of the Electric Light Department in the same section. (Robinson- Madan) (3 -1) Selectman Robinson Opposed. Passes. • Budget Mr. Beliveau furnished each Commissioner with a preliminary budget for the calendar year 1999 and stated that he hopes to have a capital budget for the next Commissioners' meeting, as well as a more detailed budget. Commissioner Royle, asked Mr. Beliveau to review a financial forecast of capital expenditures for 1998 prepared by the previous Electric Department Manager, John Larch, and to report on which items had been purchased. • Grievance The Linemen's Union submitted a grievance as a result of Mr. Beliveau's refusal to compensate linemen for overlapping callouts. The grievance was rejected. Commissioners inquired of the number of times this has occurred in the past. 4. Old Business A. Commissioners • Commissioner Madan inquired if any replaced. B. Director — None Light Coimnissioners Mtg 1/11/99 additional transformers would need to be Page 4 of 5 5. New Business A. Commissioners Commissioner Madan requested the development of a policy for a street light replacement procedure. Tolvtt Manager D'Agostino stated that he received a phone call from a resident on Dario Way who stated that their street lights were out because a private entity stopped paying the bill. Commissioner Royle suggested placing a notice on Cable asking residents to contact the Electric Department when they notice a street light that is out. • Commissioner Robinson stated that he received a call from APPA informing him of the upcoming Legislative Workshop and Rally on Capitol Hill from February 7 -10. Motion: That we send Commissioner Robinson to the APPA Legislative Conference from February 7 -10. (Boyle- Madan) All in favor. Passes. • Commissioner Robinson asked if the working hours had been resolved for the clerical staff at the Electric Department, stated that a flood light is need at the High School for the Police Officer working the election, and reminded the Director that Electric meters cannot be pulled from residences between November 1 and March 15. Lastly, Commissioner Robinson requested all vouchers pertaining to payment of temporary help at the Electric Department from September to present be pulled for his review. Commissioner Royle requested that the Town Accountant break down the weekly warrants into three separate categories for the School Department, Municipal Department, and Electric Department. 6. Adjournment 10:05 PM Motion: To adjourn. ( Royle McCarter) All in favor. Passes. Clerk's Signature Light Commissioners Mtg 1111199 Date of Approval Page 5 of 5 Board of Light Commissioners Meeting — 1/11/99 Financial Report — Our financial results for November and year to date are attached to this report. Highlights are: we had a deficit of $19,085 in November and a year to date profit of $850,913. As I explained last month our nuclear assets were down in November costing us an additional $60,000 in replacement power. Other factors are forfeited discounts were not run in November causing a loss of $20,000. Had these two events not occurred, we would have had a profit of $60,000 for November. Our revenues and power sales for November and December have declined even though our purchases of power have increased. This suggests that.a problem has developed in our billing system that I am investigating. While we have not completed our year -end results, I remain optimistic that year- end results will approach a profit of $1 million with $815,000 occurring in the last 6 months. Statement of changes — Our cash position for the year has increased by $1.655 million. Of this amount, $1.2 million will be transferred back to MMWEC into the pre paid purchased power account. A more meaningful question, however, is how much of the $850,000 profit that we have accrued is available as spendable cash. The answer is that we have $455,000 of that profit available as free cash. Where did the difference between $850,000 and $455,000 go? Approximately $360,000 was dedicated to reducing our payables, or the amount of money we owe to vendors. A statement of changes in cash balances is attached to this report. Y2K Harris Conversion — We have completed the conversion of our Harris software to make it Y2K compliant. The process went more quickly than we had anticipated. We do, however, have several problems with our new system ranging from printer failures to financial reports, which do not run. Mike Lawless is addressing these problems with Harris on a daily basis. We have converted our Local Area Network to a Windows NT system and we are connecting the computers in the plant to the system. We are now Y2K compliant with all of our systems and are providing updates to our power suppliers of our status. For our customer's benefit, we have now completed all steps that are within our control to complete to assure continuation of service with respect to Y2K issues. Billing — After the conversion of our billing system we experienced problems with due dates. In correcting this problem we scheduled due dates that were 15 days after the billing date inadvertently causing customers on the first billing cycle to receive more than one bill payable in January. We have corrected this and will assure these customers that their bills are due and may be paid on February 1, 1999. We are creating a new meter reading, billing and due date schedule for the entire year to give each customer the same time to pay their bills. Past practice has allowed more time to pay bills to customers at the beginning of the billing cycle than at the end. , i Maps and Records — A deficiency I found with the current system is that there are no maps and records of system resources. For example, there are no feeder maps, no pole maps or records of streetlights, etc. This presents a problem should it be necessary to utilize outside line crews in a major storm. It also presents a current safety hazard to our linemen. Accordingly, we have begun to document the system in AutoCAD utilizing existing Town Maps that the Town Engineer provided. This will be an on going effort over the next few years. We will also be working with other town Departments on plans for a GIS system that will enable all departments to access geographical information. Temporary Generators — A problem I identified soon after I began in September was a lack of emergency generation at thg electric office and plant. A loss of system power would result in a loss of our telephones, the main radio station, heat and light. Customers would be unable to reach us by telephone regarding an outage and we would be in a compromised position regarding safety because of the loss of our telephones and radio. To immediately rectify this, I purchased three portable generators at a cost of $1,925 each. These will enable us to maintain our radios, telephones, heat and light at both the office and plant in a system outage and be able to communicate with our customers regarding restoration of power. It will also enable us to better utilize our entire staff during an outage. A more permanent solution will be proposed in the future. Additionally, telephones and the base station radio have been connected so that all can be operated from the plant or the office. These changes enables us to provide backup when individuals are absent at the plant and to utilize our office staff to assist during outages by answering the telephone and relaying information by radio. Fiber Optic Initiative — Selectman Royle has suggested that we form a committee to assist us with our fiber optic proposal. I believe a committee will be helpful in addressing the communities needs and desires with this initiative. To that end, I would suggest a committee with membership representing, Small Business, Industrial development, Municipal Government, Residential users and the School System. I will work with the committee to develop a more formal proposal to introduce fiber optic technology to Mansfield. Gilbert Street Substation Recommendation — As I have previously detailed, I have asked a consultant to investigate other possible solutions to our need to increase our system capacity. The study done by PLM earlier this year recommended the addition of two transformers at Gilbert St. Substation. A proposal to add a second supply station on the North end of town was rejected by the consultant as more expensive and not likely to receive State approval due to siting considerations. Three miles of new transmission lines would be required. I am concerned that adding two transformers to Gilbert St. Substation increases our overall risk of system failure. Consequently, I want to be sure that no other alternatives exist before committing to a project, which will determine the configuration of the system for the next twenty years. Another solution does potentially exist. Eastern Utilities Associates has an existing line and right of way in Mansfield on the North end of Town. If a second supply point can be established at this location, Mansfield would have a highly secure system fed : from two sources of transmission and physically separated to avoid any possibility of common mode failure at one site. I am therefore recommending that we proceed with a study requested by Eastern Utilities Associates at an estimated cost of $23,000 to determine the cost and feasibility of this potential solution. We are taking measures, however, such as reconductoring of some feeders to assure that any delay will not adversely impact the system. ADM Cocoa — The proposed revisi8n to our back up power rate schedule is attached to this report. A letter from our rate consultant is included. I support the conclusions of the consultant's report that states that this rate will result in a win -win for both Mansfield Electric and ADM — Cocoa. While our consultant was unavailable this evening, he has agreed to make himself available for a future meeting if you wish to question him. Staff Reorganization — It is my understanding of the last meeting, which I was unable to attend, that there was objection to the creation of a Comptroller position. In my staffing proposal, I proposed two alternative organizational arrangements, one flat and one hierarchical. In light of the objections raised to a hierarchical structure, I propose implementing the flat organizational structure within the proposal. This would include the establishment of an MIS position and an Accounting Officer position as well as the Business manager all reporting to the Director. Our current organization includes the currently vacant position of Accounting Officer. The only difference, therefore is the reporting level of the position. Most organizations of our size have a comptroller or chief financial officer. N. Attleboro for example, has a comptroller division staffed by the comptroller, an accountant and an assistant. They also have an MIS division responsible for their computer system and their billing function. N. Attleboro has eleven individuals performing in their treasury function whereas I have proposed six. I believe that the structure presented will provide better checks and balances than currently exists and will provide an effective team relationship staffed by three professionals. Our organization continues to suffer due the absence of a full time accountant. While our existing MIS person is working well, our costs associated with this position are higher than need be if we fill the position with a permanent employee. I therefore request approval of the two revised position descriptions, an MIS Officer and an Accounting Officer, enclosed with this report. Two individuals have accepted positions as Financial Assistants. I have included copies of their resumes. Both of our temporary employees have left. We will unfortunately not have an opportunity for a transition period with our new employees. Budget — Included with this report is a preliminary budget for calendar 1999. This proposed budget includes anticipated operating results for 1999 but does not include capital expenditures. A more detailed budget will be presented at our next meeting. Grievance — Our Lineman's Union forwarded a grievance as a result of my directive to stop compensation for call outs which overlapped and to provide for overtime pay only for the hours spent in a duty status prior to the start of a work day. The union grievance was based upon the concept that the practice was established practice that past management was aware of and approved of. It was my position, and that of our labor counsel in rejecting the grievance, that this practice, whether established and approved in the past, amounts to dual compensation for the same hours and violates Chapter 41 section 56 of State Law. Consequently, regardless of past management's knowledge and/or allowance of this practice, tWd grievance has been rejected because the practice conflicts with State and Federal law. Jack Beliveau 1/11/99