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HomeMy WebLinkAboutLight Comm Minutes 5/15/1997hl Gi I` /I D + r - } ([�., N s� C ( Board of Light Commissioners 97 JUN, 13 Fri 3. 42 r� Minutes of Meeting May 15, 1997 i i� , . .i 1c.L D f °}ASST %C UccETT3 PRESENT: Chairman Colella, Commissioners Mahana, Madan and d Royle. Commissioner Robinson was absent. Commissioner Mahana arrived at 7:45 PM Meeting called to order at 7:37 pm MOTION: To approve the minutes of April 22, 1997 Royle/Madan Vote 3 - 0 MOTION: To approve the minutes of May 5, 1997 Royle/Madan Vote 3 - 0 Presentation of 1996 Revised Audited Financial Statements by Mr. Joseph Fabiano Mr. Fabiano advised the Board that he revised the 1996 Financial statements in two ( places. Accounts Receivable and Interest income were both increased by $36,726 to account for the interest earned on the depreciation fund. The other change was the computer software/hardware maintenance contract was inadvertently put into a fixed asset account and this is actually an expense item. The financials were revised to account for this change fiom fixed assets to the expense account. The end result is that the net loss for fiscal 1996 was reduced to $210,707. The Board asked the auditor his overall opinion of the financial situation of the Electric Department. The auditor advised the Board that for the past several years, the Electric Department had made considerable profits that exceeded the 8% allotted by law. The 1996 loss of $210,707 was due primarily to significantly reducing the rates and the significant increase of the transmission costs. Mr. Fabiano expressed his opinion that overall the Electric Department is in very good shape, with over two million dollars in the depreciation fund, prepaid purchase power payments of over five million and operating cash of almost one million dollars. The total net income allowed by law for the fiscal year 1997 is 8% of the total accumulated plant value of the Electric Department, which is roughly $4.8 million, which would be an allowable profit of approximately $385,000. *Note: At this time, 7:45 pm Mr. Mahana arrived. opinion or whether it was DiPesa and Company's assessment. Mr. Fabiano stated this was his own personal opinion, not the company's opinion. MOTION: To instruct the Town Accountant to assume responsibility for the Electric Department's financial records and serve as the official accountant for the Electric Department. Madan/Mahana Vote 3 - 1* *Commissioner Royle was opposed Commissioner Royle requested a meeting with the Town Accountant, the Board and the Electric Department to determine a plan that everyone would be comfortable with. Mr. Madan advised Mrs. Royle that it clearly states in the Town Accountant's job description that she is responsible for the Electric Department's financial. Mrs. Royle wanted to publicly state that she feels our Electric Department is in great shape. Over the past several years, the Electric Department has made very large profits, which exceeded the allowable profits governed by the DPU. Mrs. Royle felt that we could look into providing better financial reports /accounting practices so that the Board has a better financial picture. Mr. Madan wanted to make it clear that he had no problem with the Electric Department. Mr. Madan feel we need a better accounting system. MOTION: To instruct the Manager to provide the Board with alternative options to ensure that the Electric Department makes the allowable 8% profit this year. Madan/Royle Vote 4 -0 Mr. Mahana stated that he was opposed to cutting back on personnel and/or services and the only option he could see was to raise the rates the 2 1/2% that had previously been discussed. The increase in the rates would result in only a $1.25 per month increase on the average residential electric customers bill. Mrs. Royle again stressed that she felt the Board was overly concerned about such a small deficit. She reiterated that the Electric Department had far exceed its profit expectations for the past several years and the first year the we have a minuscule deficit is the very same year we significantly reduced the rates. In Mrs. Royle's opinion, perhaps we lowered the rates too low. l To accepted the revised 1996 Audited Financial Statements & Company. Royle/Madan Vote 1 - 3* *3 Opposed were Mr. Colella, Mr. Madan and Mr. Mahana. Mr. Madan stated that he had just received the revised financial and he would like to have an opportunity to review them in detail. Attorna Richard Gallant - Fiber Optic Proposal Attorney Gallant stated that he had a few issues that he wanted to review with the Board. The first issues is does the Board want to go forward with an R.F.P. for installing fiber optic cable in the town of Mansfield. Mr. Gallant informed the Board that the City Of Sommerville has done the most work in the area of establishing regulations for pole attachments and he had requested a copy of Somerville's regulations and he expected to receive these regulations early next week and would be sure to send a copy to the Board. Mr. Gallant also informed the Board that they have to be very careful with how they proceed with this issue because once you open the door for one company, you set precedent. The first petitioner becomes very important because in essence they establish the precedent. The Board needs to keep in mind that they don't want to open the door to anyone. Also there is a significant liability regarding ownership of the fiber optic cable. This is a big issue and most entities don't want the liability of owning this cable. Mr. Mahana stated that he wanted to ensure that CVI our local cable company who provides the town with a large amount of yearly revenue is not ousted by competition if we allow a company to install fiber optic cable. Mr. Gallant wanted direction from the Board whether or not they wanted to proceed with an RFP relative to fiber optics. This would allow the Board to identify future market opportunities as well as establish a plan for the best application of fiber optic for the town. Mrs. Royle stated that she would prefer to have the Town's rules and regulations in place first, prior to issuing an R.F.P. We are not in a hurry at this time, so she felt we should adopt a set of rules and regulations and once these regulations were in place, proceed with an R.F.P. Mr. Gallant stated he would begin establishing rules and regulations and he would forward these to the Board along with a copy of Sommerville's regulations. inn The Board had previously approved a purchase order for Moore Business Forms for 60,000 electric bill forms in the amount of $2,368. However, Moore Business Forms sent us 65,000 electric bill forms and included a freight charge which we didn't account for on the purchase order. The Manager requested that the Board approve the additional $239 billed on this purchase order. MOTION: To amend the amount approved for the purchase of 65,000 electric bill forms from Moore Business Forms in the amount of $2.607 Mahana/Madan Vote 4 - 0 Police Sign The Manager advised the Board that he had received a verbal request from the Police Chief to move the Police sign from its current West Street location to their new temporary location at the Fire Station. A lengthy discussion followed regarding which sign was being move, who would reconnect the sign if an electrician was needed. TEMPORARY MOTION: To authorize the Electric Department to move the police sign from the West Street address to the new temporary police station at the Fire Station if the Town Manager decides that the sign needs to be moved. Madan/Mahana Vote 3 - 1" 'Mrs. Royle was opposed. Wage Adjustment The Manager again requested that the Board approve a $2/hr increase to Ms. O'Malley who has been performing two job functions for the past ten months. MOTION: To approve a $2 an hour wage increase for the System Operator /Administrative Assistant as recommended by the Manager. Royle/Madan Vote 1 - 3* *Mr. Colella, Mr. Madan and Mr. Mahana were opposed. Mr. Madan stated that he would like to see all the job descriptions for the Electric Department office staff. In addition, he would like to see the wages for each position. Madan/Mahana Vote 4 -0 Draft of letter to Representatives regarding DPU's collection standards As requested, the Manager submitted a draft of a proposed letter to the State Representative requesting their help in dealing with the Massachusetts Department of Public Utilities regarding collection techniques. Mr. Mahana stated the letter was very good and he would also like it sent to Mr. Keating, Industrial Park Customer Meeting It was agreed that a good time to meet with the industrial park customers was the week of June 18th between 10 -11 am. Mrs. Royle stated she would be unable to attend, but the Board should go forward without her. The Manager was instructed to invite the Town Manager, the IDC Committee and the Line Foreman. SCADA System Mr. Madan asked the Manager if he had looked into the purchase of a SCADA System with the water and sewer department. The Manager advised Mr. Madan that he had spoken with Lee Azinheira, Town Engineer. Lee informed the Manager that he was just beginning the preliminary investigative stages and that he would advise the Manager of any planned meetings with vendors regarding the purchase of a SCADA system. PC Upgrade Network The Manager provided the Board with a quote regarding the cost to upgrade the computer network currently in place at the Electric Department. The Manager advised the Board that no action was necessary he was just giving the Board the information. Harris Computer System would be presenting this upgrade at a Light Commissioner's Meeting in the near future. School Rate Mr. Mahana asked if we still have a special rate for the School Department. The Manager advised the Board that the School Department no longer had a special rate since �, the school had converted from electric heat. The Manager also advised the Board that the Mr. Mahana asked if employees were allowed to carry over unused vacation time. The Manager advised the Board that if an employee submitted a request to carry over unused vacation time, it was granted. Mr. D'Ambra stated that he allows his staff to carry over even weeks of vacation providing a written request has been submitted. Mr. Mahana stated this was an area that would be addressed again in the future. Water Department Well Rates Mr. Mahana requested copies of the Water Department's bills for their wells. He asked to see the consumption history for 1995 and 1996. Kathleen Ferrick - Anneal Process Kathleen Ferrick asked the Board what steps she should take if she was not pleased with the decision of her supervisor and the department head. Mr. Madan stated that the Personnel Policy states that an employee has a right to due process and can appeal to the Town Manager. The Manager advised the Board that due process was only for disciplinary and or termination appeals. A lengthy discussion followed; however Mrs. Ferrick was advised to appeal to the Town Manager and then to the Board of Light Commissioners. The Board agreed that they would run this by Town Counsel for approval but they believed that was the proper procedure to follow. Motion to Adjourn at 9:50 pm Mahana/Royle Vote 4 -0 Clerk's signature & date ?����