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HomeMy WebLinkAboutLight Comm Minutes 9/24/1997r f•it Board of Light Commissioners 'I OCT -7 Pi Minutes of Meeting September 24, 1997 1 --1A PRESENT: Chairman Colella, Commissioners Madan, Mahana and I Meeting called to order at 3:55 pm MOTION: To approve the minutes of September 8, 1997 Royle/Mahana Purchase Order Approval Vote 3 -0- *Commissioner Madan abstained Three purchase orders were submitted for the Board's approval. 1. Columbia Electric PO #17338 in the amount of $3,740. for neutral wire ror me betterment project in the park. 2. WESCO PO # 17373 in the amount of $3,767.08 to replenish stock. 3. Columbia Electric PO # 17367 in the amount of $2,074. for the switchgear foundations for the betterment project in the park. Royle/Madan Increase the PPCA Vote 4 -0 The Manager advised the Board that the financial statements through June 30, 1997 indicate that the department has a net loss of $146,700. The Manager recommended that the Board increase the PPCA by 2 1/2% which would increase the average residential customers' bill by $1.25 per month. This will create additional revenue of approximately $180,000. The Manager feels that this increase should be implemented with the October billing Mr. Madan asked the Manager why we have a deficit. The Manager explained that the forecast for sales is off by 2% which is approximately $182,000 less than anticipated. In addition MMWEC increased the purchase power bills in March to start accruing for the stranded investment fund. As of June 30, 1997, we have paid $139,000 into the stranded investment fund, this was billing that was not anticipated. Mr. Madan and Mr. Mahana feels it is unacceptable for the department to have a deficit and indicated that they were upset that the Manager was not keeping the Board informed ( of revenue losses and increase purchased power bills. The Manager stated that the reason for the deficit is that the forecast for sales was overstated by 2% and the purchase power bills were increased. Mr. Madan then asked why the Manager had not followed the Board's instruction to have the Town Account assume responsible for the Electric Department accounting/financial records. The Manager stated that as he understood it, the Town Accountant would not be available to take on this responsibility until after the Town finished its annual audit. Mr. Madan again instructed the Manager to follow the Board's direction and ensure that the Town Accountant take responsibility for the Electric Department's financial records. Mr. Mahana suggested that all overtime be eliminated in order to reduce the deficit. The Manager advised the Board that this was not practical. Mr. Madan stated that when we perform shut -downs for industrial customers on overtime, this should be billed to the customer. The Manager stated that he did not agree, that some of these customers are paying one million dollars a year and that they deserve some type of service from the department. Mr. Madan asked what the Manager used to forecast projections for growth. The Manager informed the Board that he based the projection on prior years industrial growth and customers like OSCO drug which he thought would be on line six months ago. MOTION: To raise the electric rates 2 1/2% effective October 1, 1997 Royle/Mahana AMENDED MOTION: To increase the PPCA .0025 cents per kwh effective October 1, 1997. Mr. Mahana stated that he was very upset, he expects more from the Manager than what the Board is receiving. Mr. Madan asked why the Board was not informed, and/or why the Manager did not take any action when the purchase power bills were increased. Mr. Colella stated that he could not support a rate increase. Mrs. Royle stated that she is miVvki in favor of a rate increase only to end the unpleasantness. Royle/Mahana Vote 2 - 2* Motion Fails *Commissioners Madan and Colella were opposed MOTION: Instruct the Manager to develop a plan on how he will cut expenses in the Electric Department. As a Manager, John should find ways to reduce the deficit by cutting expenses. Mr. Madan would like this presented to the Board on Monday, September 29, 1997. Madan/Mahana Vote 3 - 1* r' *Commissioner Royle was opposed to the meeting date of September 29, 1997, she requested that the presentation be at the next scheduled meeting which is October 6, 1997. The Manager asked if he could have more than two days to prepare this presentation, this request was denied. Customers Requesting Assistance The Business Manager submitted two letters from Customers who have serious illnesses in their family and are looking for assistance from the Board of Light Commissioners regarding their overdue electric bills. MOTION: To instruct the Department to continue to work with these customers who are experiencing difficult times but who are making a good faith effort to pay. Mahana/Madan Vote 3 - 1* *Commissioner Royle was opposed. AMTRAK Gary D'Ambra, Line Foreman advised the Board that Amtrak has requested our assistance to perform work to the conductors that feed the switch house. Gary advised the Board that the estimate to perform this work is approximately $8,000. Gary thought that the Board may want to use this as a bargaining tool regarding the fencing issue. MOTION: To instruct the Electric Department to bill Amtrak for any work done for Amtrak by the Mansfield Electric Department Royle/Madan Vote 4 - 0 The Line Foreman advised the Board that the contractors original plans did not indicate that lie would be installing conduit out to the street for the utilities. The Electric Department records indicate it is the contractor's responsibility to install conduit. Apparently, after the Line Foreman met with the electrical architect in 1995 and the records indicate that the contractor is responsible for the conduit. However, after this meeting, a Municipal Building Committee Meeting was held and unbeknownst to the Electric Department, the MBC changed the records to indicate that the Electric Department would be responsible for laying conduit. Gary advised the Board that he would not proceed without the Board's permission. MOTION: To authorize the Electric Department to perform the necessary electrical work required for the new police station, providing that there is no overtime as a result of working on this project. RoylelMadan Vote 4 - 0 AMTRAK CROSSING AT CENTRAL STREET The Manager advised the Board that in order to gain enough overhead clearance, it would be necessary to take down several beautiful trees. As a result, we are nowmvestigating the possibility of tunneling under the tracks. This method is estimated to cost between $10,000 to $15,000 dollars. Commissioner Royle requested that the Manager provide the Board with a memo which outlines the total costs incurred to date as a result of the Amtrak project. Motion to Adjourn at 5:10 pm Royle/Madan Vote 4 - 0 Clerk's signature & date