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HomeMy WebLinkAboutLight Comm Minutes 9/8/1997Board of Light Commissioners Minutes of Meeting September 8, 1997 ilk -f'r t[. `>> SEP 29 Et 12: 09 PRESENT: Chairman Colella, Commissioners Mahana and Royle. Commissioner Robinson arrived late at 8:00 pm. Commissioner Madan was absent Meeting called to order at 7:35 pm MOTION: Royle/Mahana MOTION: Royle / Colella To approve the minutes of August 4; 1997 Vote 3 -0 To appoint Commissioner Mahana as Acting Clerk Bid Award Financial Audit Vote 3 -0 Mr. William Fraher and Mr. James Goulet both attended the meeting and both were interviewed by the Board of Light Commissioners. MOTION: To award the financial audit bid to Mr. James Goulet & Associates at a cost of $9,500 per year and to enter into a three year contract with Mr. Goulet. Royle/Mahana Vote 3 - 0 - 1* *Commissioner Robinson abstained since he arrived late. Purchase Order Approval Six purchase orders were submitted for the Board's approval. 1. Arthur J. Hurley Company, PO # 17323 in the amount of $1776.60. This is to replenish stock. 2. Pirelli Jerome Inc. PO #17322 in the amount of $2635.20 for splice kits and cable. 3. WESCO PO #17311 in the amount of $3588.00 for a 23kV vertical air brake. 4. WESCO PO #17324 in the amount of $2120.40 to replenish stock. 5. Graybar Electric PO #17312 in the amount of $4174.40 for insulators and elbows. Mahana/Royle Vote 4 - 0 6. I -WANG Net PO #17631 in the amount of $15,562.34 for the purchase of six Dell Personal computers and MS Office Pro 97 for the Electric Department office. This purchase is off the state bid list. Robinson/Royle Vote 4 -0 The Board suggested that the Manager offer the existing Gateway Personal Computers to the COA, the library, the Town Hall and then the School Department, in that order. 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. The Board would review these requests and see if something could be done for these individuals. This will be on the next agenda. Meter Department Reports The Manager advised the Board that nonpayment removal of meters had dropped significantly from 42 in July to 22 in August. The reason for this is that the Business Manager implemented new procedures regarding collections, including phoning customers. The Manager complimented the Business Manager on the progress made. Mr. Mahana suggested that the Department look into using the Constable's office to help collect on overdue accounts. The Business Manger informed the Board that the Department had in fact looked into this years ago but did not find the procedure to be cost effective. June 1997 Financials The Manager presented the Board with the June 30th income statement and advised the Board that through the first six months of the year, the Department has lost $72,055.79. The Manager recommended that the Board increase the Purchase Power Cost Adjustment (PPCA) by 2 1/2 %, which would be an increase of $1.25 on a 500 kwh bill. MOTION: To increase the PPCA 2 1/2% effective with the September Electric Bills Mahana/Royle Commissioner Mahana withdrew his motion. The Board wanted to wait to see what the recommendations were for Water and Sewer prior to increasing the Electric rates. i The Manager advised the Board that this decision could wait until the next Board meeting, however, that will only allow three months to try to make up the loss. Mrs. Royle stated that she feels confident that the Department is financially solid. Mr. Mahana however wanted it noted that he would not approve of the Electric Department operating in the red, as a result of the Department exceeding its 8% profit margin in prior years. Stranded Investment Fund The Manager provided the Board with a copy of the projected funding for the Stranded Investment Fund. The plan is to have $10,842,502:00 in the fund at the end of the year 2007. This is considerably less than the expected 16 million dollars required, however it is certainly a step in the right direction. Long -Ranee Planning Stud The Manager provided the Board with a copy of PLM's Long Range Planning Study. The Manager directed the Board to Page 20 of this report. The recommended alternative is to expand the sub station at a cost of 2.3 million dollars. The Manager advised the Board that the Department currently has over three million dollars in the deprecation fund which will be used to fund this expansion. The Manager suggested that PLM attend the next Board Yleeting and present its recommendations in more detail to the Board. It was agreed that PLM would be on the agenda for the September 22nd meeting. Telecommunications The Manager advised the Board that he would provide an update from Mr. Gallant and Public Facilities Inc regarding telecommunications issues prior to the next board meeting. Travel Authorization Commissioner Robinson read a motion made at the July 21, 1997 meeting. The motion was made by Mr. Madan and seconded by Mr. Mahana. It stated, "Any board member must receive prior authorization prior to attending any conferences and/or meetings for the Electric Department ". Mr. Robinson wanted to know why the Board did not vote and/or authorize the Board members attending the NEPPA Conference in August. Mr. Mahana stated that the reason for the motion was so that all board members would be informed of any travel. Mr. Robinson stated that the motion was very explicit and since the motion was passed, all Board members should be required to abide by the motion. Mrs. Royle stated that she had voted against the motion and did not feel it was a good motion. Mr. Mahana stated that he simply want to know who is going where. MOTION: To reconsider the motion passed at the July 21, 1997 Light Commissioners Meeting regarding travel/meetings. Mahana/Royle Vote 4 -0 MOTION: Any Board Member must inform all other Board Members in advance of any scheduled trips, conferences or travel pertaining to Electric Department business. Mabana/Royle 067- -affil Motion to Adjourn at 9:15 pm Robinson /Boyle Vote 4 - 0 Clerk's signature & date