HomeMy WebLinkAboutLight Comm Minutes 4/22/1997I � •�� � i R 3 - 1 i +-)'� i.
� i;i ` 16 � io
9
i I ; iIcLD
M IASSO%CHUSETTS
PRESENT: Chairman Colella, Commissioners Mahana Madan and Royle.
Commissioner Robinson was absent.
Commissioner Mahana arrived late at 7:45 PM
Meeting called to order at 7:35 pm
MOTION: To approve minutes of April 14, 1997
Royle/Madan
Vote 3 - 0
MOTION: To approve the Executive Session Minutes of April 14, 1997, but not to
release these minutes until after the TCG public hearing and negotiations
are complete.
Royle/Madan
LIMMIKll
Presentation of 1996 Audited Financial Statements by Mr. Joseph Oteri
Mr. Oteri pointed out that operating cash was down over three million dollars, and
accounts receivable was done almost $400,000. Prepayments were up by over two
million dollars. The net income loss for 1996 was 231,153. The Manager explained that
in January, 1996, we lowered the rates and expected only a $80,000 net income profit for
calendar 1996. However, Nepool raised their transmission costs by $40,000 for eight
months, which is $320,000 which we could not have anticipated. As a result that gives
you the net loss of $231,153.
Mr. Madan was upset and could not understand how there could be such a swing in the
Manager's assessment of the 1996 financials. The Manager responded that he had
advised the Board that he was not sure if we would make $50,000 or lose $250,000 and
that he wouldn't know until the auditor made his adjusting entries and issued the financial
statements.
Mr. Madan strongly suggested that the Manager revise his financial reporting structure,
because he is not comfortable with the current reporting system. The Manager advised
the Board that he has wanted to revised the budget because it is currently a simplistic cash
budget. However the previous Board has requested a line item budget to be presented in
this fashion. The Manager suggested that the budget be established in a better way using
the income statement to create a pro- forma.
u,,,f, 11 11
Vote 4 -0
Mr. Oteri recommended that the Electric Department maintain 1 1/2 months cash in their
operating cash.
Mr. Mahana stated that he felt that something should be done about the DPU collection
policies. The Business Manager explained that we are governed by the Department of
Public Utilities rules and regulations. Mr. Mahana instructed the Manager to work with
Representatives Hyland and Poirier to have them intercede in our behalf in revising the
collection laws. Mr. Mahana wants a report of how much bad debt North Attleboro and
Taunton wrote off for 1996.
Mr. Oteri stated that the overall opinion of the Electric Department's accounting
techniques and standards are good, orderly and thorough. The Department is not running
a bad operation. Mr. Oteri will send the account, free of charge, to the office to assist the
Department in adjusting their monthly financial reports in order to make them a more
useful tool for the Board. In addition, Mr. Oteri will send a proposal for a semi - annual
audit.
Purchase Order Approval
Four purchase order requests over $1,000 were submitted for the Board's approval.
1. North Attleboro Electric #017152 borrowed reel of cable one year ago, cost $6878.20
2. Columbia Electric #017153 12 box pads at a cost of $3278.40
3. Wesco #017155 6 25 Kva pad mount transformers at a cost of $6570.00
4. Power Sales Group #017158 20 fiberglass light poles at a cost of $3360.00
MOTION: To authorize the Manager to approve all purchase requests as submitted.
Royle/Madan Vote 4 - 0
Betterment Project
Mr. Madan asked the Manager if it was legal that we are taxing the industrial customers
for work that still has not been done by the Electric Department. The Manager advised
that he had no idea. He advised the Board that we will be presenting bids for the material
for this work at the next meeting and that he expects this work will take the better part of
a year to complete.
Mr. Madan also questioned why the Electric Department employees should be allowed to
have bottled water while the Town Hall employees can not. Mrs. Royle stated that the
Selectmen didn't remove the bottled water from the Town Hall, that the Town Manager
had.
Mr. Madan then questioned why the Manager needed a $35,000 generator. The Manager
stated that it was a new idea and he thinks it would be useful, but that we have lived
without one for 93 years.
MOTION: To delete the purchase of a generator at a cost of $35,000 from the 1997
Forecast of Revenue and Expenses.
Madan/Royle Vote 4 - 0
Mrs. Royle questioned the Department Policy on police details. The Manager advised the
Board that there were a number of differences of opinions regarding this issue but the
department policy is when working in a location where we feel a detail is required, we
request a detail, if we don't feel a detail is required, we just go ahead and do the work.
Mr. Mahana asked why the Manager still had not had a meeting with the industrial
customers in the CC &F Park. The Manager advised Mr. Mahana that the Board had also
requested a survey of the industrial customers in the park, as well as a short term planning
study of the park. These are now both complete and will be presented at the May 5th
meeting. The Manager felt all this information should be presented prior to actually
scheduling a meeting.
Mr. Mahana then requested an itemized list of all equipment and its location, vehicles and
office equipment.
MOTION: To request the Manager to provide the Board with a physical list of all
equipment currently owned by the Electric Department.
Mahana/Madan Vote 3 - 1*
*Commissioner Royle was opposed
four days since the last meeting. Mr. Mahana stated that if splitting the shifts is a
problem for the employees, he would personally like to meet with the Union
Representative to discuss this issue.
Mr. Madan stated that he would not and could not support the Manager's 1997 Forecast
of Revenue and Expenses. Mr. Madan wants to vote on facts rather than guesses, Mr.
Colella agreed with Mr. Madan.
The Manager explained that their is an accounting difference between a simplistic cash
budget and an accrual income statement. If we revise the monthly financial reports to
include the standardized journal entries to deal with interest on working capital and flush
of funds, the monthly reports will be a more useful tool for the Board. The Manager
advised the Board that he had not led them astray, there was a $300,000 difference which
is attributed to the increase in transmission costs.
MOTION: To not approve the Electric Department's 1997 Forecast of Revenue and
Expenses as submitted.
Madan/Mahana Vote 3 - 1*
"Commissioner Royle was opposed.
Meter Department
Commissioner Colella asked the Manager why the Meter Department is under the
supervision of the Line Foreman. The Manager advised Mr. Colella that the Meter
Foreman use to be under the supervision of the Superintendent until he resigned, then he
was under the supervision of the Business Manager. In September, 1996, the Manager
decided to have the Meter Department report to the Line Foreman so that the Department
could be more closely supervised. Mr. Colella then stated that he had been informed that
the Manager had denied a request for two individuals fiom the Meter Department to take
vacation at the same time. The Manager advised Mr. Colella that this was true, it is not
feasible to have two men on vacation at the same time in a three man department.
Down Street Light Replacement Project
Mr. Madan then asked why the street lights had not been changed yet when the
replacement poles are in stock. The Manager advised the Board that it was not a priority,
more urgent work has taken priority. Mr. Madan stated that there were exposed wires
Telephone Poles in Downtown area
Mrs. Royle asked the Manager if he could remove the poles in the downtown area. The
Manager advised Mrs. Royle that the wooden poles in the downtown area were 100%
Nynex owned. The Board has looked into this twice once back in 1986 and then Mr.
Tartufo did a great deal of work on this when he was on the Board. The Manager
believed that the cost to have these poles removed was somewhere around 3/4 of a
million dollars.
80 Winter Street - Tree removal
Chairman Colella asked the Manager to look into removing a tree at 80 Winter Street
which is leaning over the Electric Department wires. The Manager stated that he would
look into this request.
Computer at the Business Manager's residence
Chairman Colella asked why it was necessary for the Business Manager to have a
computer at her personal residence. The Business Manager advised the Board that she
frequently does work from her house. For example, she can bill a cycle over the weekend
and print 1400 bills which takes approximately 3 1/2 hours over the weekend instead of
having to print them during normal work hours especially since these bills have to be to
the Post Office before 4:00. Also, the Business Manager does monthly closing
procedures. The Business Manager also explained that she does not have a computer at
her house, it is strictly a "dumb terminal" which can only link to the Harris System. It
does not have word processing, lotus or printing capabilities.
List of all customers owing over $1000
Chairman Colella stated that he would like to see monthly reports of all customers owing
over $1000. The Business Manager said that would be provided at the next meeting.
Union Contract
Mr. Mahana requested that each member of the Board receive a copy of the Electric
Department union contract.
r
The two Electric Department Meetings scheduled for May are Monday, May 5 at 7:30 pm
and Thursday, May 15 at 7:30 pm
Motion to Adjourn at 10:00 pm
Royle/Madan
Clerk's signature & date
Vote 4 -0