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HomeMy WebLinkAboutLight Comm Minutes 3/3/1997C�9USETTS Board of Light Commissioners Minutes of Meeting March 3, 1997 PRESENT: Chairman Robinson, Commissioners Colella and Pasquale Commissioners Mahana arrived at 7:47 pm Commissioner Madan was absent. Meeting called to order at 7:45 pm MOTION: To approve minutes of February 3, 1997 Colella1Robinson Vote 2 - 0 - 1* *Commissioner Pasquale abstained. Teleport Communications Group ( Michael Byrne from Teleport Communications Group (TCG) was present. He explained that TCG is an alternative access telephone company, based in New York, providing local telephone service to business and industry, in over 50 cities nationwide. TCG is looking to expand into the Mansfield area. TCG intends to attach its fiber optic cable to existing utility poles in Mansfield, except in Cabot Park, where the cable will be placed underground. TCG would like to explore the possibility of having Mansfield Electric Department do all the make ready, install the cable and then lease back the cable to TCG. All make ready work would be paid for in advance. Additionally, the Electric Department could lease back the fiber optics to TCG as well as charge pole rental fees. We could build it and own it and lease back to TCG. The Manager asked if we would also have to maintain the cable. TCG said they do not maintain the cable so if Mansfield Electric did not want to maintain the cable, they would hire a contractor to maintain the lines. The Manager said he was a little leery about maintaining the cable since the companies in the Park do world -wide marketing business and the Electric Department's first priority would be to restore electricity. There would be over $150,000 dollars of fiber optic cable stretched over six miles. The contract duration would mostly likely be for twenty years with a five year renewal option. TCG explained that their first choice would be to have the local cable company perform this service, but they can not reach an agreement with Time Warner, so their second choice is to approach the Electric Department. A public hearing has been scheduled for March 19,1997. The Manager and Mike Byrne ( both said they will explore the possibilities of the venture further. Amtrak Amtrak provided us with official notification that they will be electrifying the rails. There are at least four locations where the Electric Department currently crosses the tracks, which will require relocation. We have to use Amtrak's flagman at a cost of $550 per day. The Manager advised that the Electric Department does have 115 Kv at the Gilbert St substation. Amtrak has asked to use the Electric Department's right of way. The Manager informed Amtrak that an arrangement could be made so that both Amtrak and the Electric Department would benefit. Purchase Order Approval Ten purchase order requests over $1,000 were submitted for the Board's approval. 1. WESCO 8 25Kva pad mount transformers at a cost of $8,760.00 2. L.C. McFarland 13 40' wood poles, 8 55' wood poles at a cost of $6,533.00 3. WESCO omni - rupter switch 15 Kv at a cost of $4,900.00 4. Grainger Rush Pole Line Hardware at a cost of $2,184.70 5. WESCO Overhead connections, Line Hardware at a cost of $4,872.85 6. Hendrix 14,100' of cable at a cost of $9,676.26 7. Columbia Electric underground conduit at a cost of $3,760.08 8. D. C. Bates Truck #22 failed die - electric testing repairs cost $1,739.36 9. Hendrix 1200' feet of URD underground cable at a cost of $4,064.40 10. 12 Underground light fixtures at $4,380.00 MOTION: To authorize the Manager to approve all purchase requests, with the exception of WESCO. The Board requested that the Manager contact Legal Council to ensure that we are not violating the open bid law, which stipulates state wide bids for purchases over $10,000 by issuing three separate purchase order for WESCO totaling 18,532.85. Pasquale /Colella l Vote 4 -0 Ci EMMEY PROPERTY GI BERT STREET The Manager advised the Board that the cost for an appraisal is between $1,200 and $1,800.00. The Board had previously instructed the Manager to obtain an appraisal at a price not to exceed $500. The Board instructed the Manger to table this request pending Mr. Clemmey's response. 1997 FORECAST OF REVENUE AND EXPENSES The Manager submitted a revision to page one of his forecast of revenue and expenses. He added interest on the depreciation fund and interest on working capital. The Manager explained that this is a line item budget, which is not a good indicator of profit and loss, but rather a simplistic cash flow picture. The Manager advised that he would be working with the Auditors this year to get the budget to reflect the Audited financial statements as well as the accountant's monthly financial statements. This will allow a clearer picture of the Department's profit and loss statement. Commissioner Pasquale wanted it noted for the record that the Wages and Salaries reflected a reduction in staff of two employees. Additionally, the Board has allowed the Manager to budget three percent salary increases, but this is only for budget purposes and is not to be construed that the Electric Department will be receiving three percent salary increases this year. All salary increases are being negotiated this year. Commissioner Mahana said he had not reviewed the budget and was not prepared to vote on the budget at this meeting. It was agreed that a meeting would be posted for Monday, March 10, 1997, for the sole purpose of reviewing and voting on the acceptance of the 1997 forecast of revenue and expenses. Legislative Briefing The Manager informed the Board that he had a very productive meeting in conjunction with North Attleboro Electric with both Kevin Poirier and Barbara Hyland regarding the issue of deregulation. The Manager provided the Board with rate comparisons for a few of our customers which clearly showed that the Mansfield Electric rates were below Mass Electric rates and Boston Edison rates. The Manager also explained that Enron has targeted large customers who have several businesses in various states and is offering one price for all the customers. For example, Stop and Shop has stores located throughout the area and Enron could offer one low rate for all Stop and Shops. The Manager advised the Board that his stand on deregulation is "LOCAL CONTROL" Motion to Adjourn at 9:15 pm Pasquale /Colella Clerk's signature & date Vote 4 -0 ii