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HomeMy WebLinkAboutLight Comm Minutes 1/7/1985BOARD OF ELECTRIC COMMISSIONERS AGENDA JANUARY 7, 1985 7:30 P.M. Meeting Called To Order 1) Minutes of December 3, 1984 & December 12, 1984 2) Old Business - Light Manager a) Open Items on 1985 Budget b) Comfort Letter from External Auditor c) Board Approval of Credit Policies 3) Old Business - Light Commissioners 4) 8:30 P.M. Information System Proposal 5) New Business - Light Manager a) Ten Year Cash Flow Forecast & Recommendations For 1986: Change Depreciation Rate from 3% to 5% and obtain DPU approval. Modify payments to Town "In Lieu of Taxes" 6) New Business - Light Commissioners 7) Adjournment BOARD OF ELECTRIC COMMISSIONERS MINUTES OF MEETING JANUARY 7, 1985 PRESENT: Commissioners Wills, D'Onofrio, McNair, Dunn. Manager John Larch, Office Manager Allan Jones. Commissioner Levine arrived at 7:40 P.M. 7:30 P.M. Meeting called to order. * Minutes of December 3, 1984, approved. D'Onofrio /McNair VOTED: 4 -0. Commissioner McNair asked if wage scales were in effect as it was his understanding that they would not be implemented yet. * Minutes of December 12, 1984 open and executive session. Open session portion of minutes was approved, McNair /D'Onofrio VOTED: 3 -0. Commissioner Dunn abstained. Executive session minutes were not approved at this time. Old Business - Light Manager Mr. Larch went over the 598 miscellaneous maintenance account of $44,000. He noted that $34,000 is for stand -by labor, $5,000 for PCB disposal and $5,000 miscellaneous. He also explained that the 30% increase in employee retirement was because it went from-a cash to accrual basis for 18 months. It was suggested that footnotes be used when we have to go back to previous years. He also mentioned that he did not have any information on leasing vs. buying a bucket truck. Mr. Jones handed out copies of the comfort letter from Byron, Moilenan & Nelson for the Board to review and make recommendations. Commissioners congratulated Mr. Larch and Mr. Jones for their work in implementing the auditor's recommendations. Commissioners noted that they would like to make sure that they receive original drafts of letters instead of sending them to the Manager or Office Manager. Mr. Larch suggested that they discuss this practice with Ron Moilanen on his next visit. Approval of Credit Policies Two items were mentioned for change in the credit policy. Regarding_ deposits, it was suggested that for homeowners where a deposit was not necessary, they add that owners of real property can be liened for that property and there was a question on the 6% interest rate which is a DPU requirement. * MOTION: To approve subject to refining of definition of owners of private property and verification of interest rate. D'Onofrio /McNair VOTED: 5 -0. Mr. Larch noted that he did not have information for street lighting yet, but will have it for the next meeting. Old Business - Electric Commissioners Commissioner Dunn asked about the lighting in the industrial park as he feels more lights are out. Commissioner Wills asked about the holiday decorations and if any persons from previous committees have come up with a plan as yet. BOARD OF ELECTRIC COMMISSIONERS MINUTES OF MEETING JANUARY 7, 1985 PAGE 2 It was suggested that he check with the Board's secretary on letters to the various civic groups on the decorations. Mr. Larch mentioned that he could call Maryann Botti. New Business - Light Manager 10 Year Cash Flow Forecast was discussed. Mr. Larch noted that the budget was put into three segments, purchased power, expenses and return of 8% plant investment. He mentioned that there are two accounts with money in them, Stony Brook refund and the rate case refund. He feels the depreciation rate should be increased from 3% to 5% for financing of construction and rehabilitation work. With a 5% increase, they could match expenses and it would be spread across all classes of rate payers. The work in the industrial park would be reflected in the industrial rate. They also spoke about growth rates and that there should be a plan for controlling the growth in the town. It was suggested that a certain number of building permits be approved per year. Mr. Larch mentioned that he could not deny service to a customer. MOTION: To change depreciation rate from 3% to 5% annually. Dunn /No second. Next item discussed was the modification of payments in lieu of taxes. Manager's recommendation was to pay an amount equal to the tax rate on the property. He noted that they paid $141,000 in 1983 which was the fifth highest payment, as a percent of plant investment, of the 40 municipal light departments in Massachusetts. This year the payment in lieu of taxes was $220,000. MOTION: That we establish in lieu of tax payments of $150,000 rather than $220,000 from last year. Wills /D'Onofrio NO VOTE. There was discussion on street lighting and that if they wanted to benefit the taxpayers, they should make charges above the line instead of using earned surplus. It was asked if he could change the rate for street lighting. Mr. Larch noted that state law reads that they cannot sell electric power for less than they pay for it. Mr. Wills asked the Manager to look into an off peak rate for street lights. Mr. D'Onofrio would like the number to be justified before they vote on it. SUBSTITUTE MOTION: To table it. D'Onofrio VOTED: 4 -1 Wills opposed. It was noted that they would need this information by February 15 for town budget purposes. The next Electric Commission meeting will be February 4. Board would like information on cost of plant, establish street light rates, possible off peak rates, lease payments to the Town, and "depreciation information. It was a consensus of the Board that the Manager could use Ruback & Associates to do the cost accounting on the street light rates if he felt it was necessary. BOARD OF ELECTRIC COMMISSIONERS MINUTES OF MEETING JANUARY 7, 1985 PAGE 3 Information System Proposal Town Manager and Town Treasurer were present to discuss the Electric Department computer proposal. They discussed centralized billing and collecting system using the computer across the hall. It was suggested the Electric Department read the water meters and charge their time back to the water department. With centralized billing, the bills would be paid in one place. Town Manager felt it would be an inconvenience if the Electric Department moved to High Street as it would be out of the way for people if they had questions on their bills, etc. Mrs. Levine suggested using the three meeting rooms. Mr. Larch will get information on estimated man hours to read water meters, cost to remodel town hall and garage, collective bargaining for water reading. It was a consensus of the Board to pursue decentralization of utilities in town hall and billing. Board would like cost /revenue benefits of move. Regarding the computer proposal, board members were not prepared tonight to go over the proposal and agreed to have a workshop on it January 21, 1985 at 7:30 P.M. Mr. Larch mentioned that MMWEC has been designated to get 34 MW of N.Y. hydro (PASNY). Board wants the formula as to hoar MM14EC allocates it. He also mentioned that the DPU has not ruled as yet on Seabrook Projects 3, 4 & 6. If they do not rule on it soon, it will cost Mansfield $250,000 per month or 25% rate increase. MOTION: To send letter prepared by Manager to DPU chairman with copies to Governor, Senators & Representatives, Boston Globe, Sun Chronicle & Mansfield Newsre: ruling on Seabrook Projects 3,4 & 6. McNair /D'Onofrio VOTED: 5 -0. There being no further business, meeting was ADJOURNED at 10:15 P.M. Dunn /McNair VOTED: 5 -0. Approved as written.