Loading...
HomeMy WebLinkAboutBOS MINUTES 10-18-1976BOARD OF SELECTMEN /LIGHT COMMISSIONERS A G E N D A October 18, 1976 7:30 p.m. - Call to Order • 8:00 p.m. - Hearing - Rates for Apartment Complexes, with 12 or more units • 8:115 p.m. - Status of Projects - South Main Street - Equipment Replacement (Van and Bucket Truck) - Route 495 - Electric Utility Work - Commercial Accounts - Status of Arrears - MMWEC and MEAM BOARD OF LIGHT COMFIISSIONERS October 18, 1976 Minutes of the Meeting Present: Commissioners Colella, Clemmey and Titus Light Department Director James Hall Light Department Manager Dennis Hannon Meeting opened at 8:55 p.m. The Public Hearing on establishing and /or revising the electric heating rates for apartment complexes with 12 or more units was opened. Mr. Hannon gave background saying that the hearing was the result of several drafts and several different types of reports on apartment house metering over the last two years. Mr. Hannon gave background on the various apartment complexes and how they were billed. He pointed out that Millhaus Apartments originally had the individual meters, but so many complaints were received from the residents that they were switched to master meters and treated as a commercial account. It was pointed out that the former Light Department Director, Mr. Ferrier, did not want to get into town ownership of transformers, so that the owners of Mill- haus would pay for and maintain their own transformers and be billed ac- cordingly. Mr. Hannon pointed out that the Bristol Arms apartment units were of a different configuration, that there were 2 - 3 meters in each building, the same with Twin Oaks. He said that as a result of discus- sions with the owners, the town had two types of metering, one method of billing for those apartment owners who purchased and maintained their own transformers, and another method for the ones the town paid for and maintained. Mr. Hall said that in June it was the consensus of the Board of Light Commissioners to raise the Millhaus Apartment rate 10% and treat the three (Millhaus, Twin Oaks, and Bristol Arms) the same in metering. He said that if we went ahead, that we :would have lost $21,000 per year. After two more weeks of study, he said that the Light Department came up with another formula: to increase Millhaus 10%, an increase of appro- ximately $4,319 per year; Bristol Arms would decrease by $5,664.per year; and Twin Oaks would decrease by about $4,994 per year. Mr. Hall pointed out that by raising Millhaus by 10% and increasing the Bristol Arms and Twin Oaks complexes by 25% (but computing these two in the same manner as Millhaus), the Light Department would experience a loss of $6,339.51. Mr. Hall pointed out that at Bristol Arms the town has put in about $12,000 worth of transformers and there are two more units go- ing ahead, at an investment of $2200 each by the Light Department. At Twin Oaks, he said that the town has $10,000 worth of transformers and that the cost does not include the cost for installation. Mr. Hannon said that there was an inequity in the rates, and that this proposal was the best that the Town could come up with. Attorney John Curran spoke on behalf of the Dorchester Savings Bank, the mortgage holder for the Bristol Arms and Twin Oaks apartment complexes. ! He said that his client was not so much concerned with the rates for the electric heating for apartments as with the question of master versus individual metering.of the units. He said that the town has expressed that it is opposed to individual metering. He said that one of the ar- guments for individual metering is that the bank would have to have a -11- BOARD OF LIGHT COMMISSIONERS Minutes of the Meeting ( October 18, 1976 Page 2 marketable asset. He said that the units have been already wired for the individual meters, and experience has shown that when the tenants have to pay for their own electricity, there is a decrease in consumption. He asked that the Board consider individual metering. He said if it does not, then the bank would have to consider an alternative and would not be opposed to converting the system, and this would be a loss to the Light Department and the town. Mr. Curran said that another issue is that the municipal light departments enjoy a "protective status" from the Department of Public Utilities with regard to rate revisions etc. He said that the three major complexes in Mansfield are owned by non - residents, but that the Board of Light Commission- ers should listen to the needs of the apartment dwellers. Margot Jellinek of West Street spoke in favor of individual metering of the units. She claimed that the cost of billing is already included in the cost per kilowatt hour, and that the Light Department has a surplus and can afford to pay for the installation of the meters. Mrs. Jellinek agreed that with the individual meters, less electricity would be used. Sidney Kovich, a trustee of Millhaus Apartments, stated that he came into Mansfield in good faith and invested in the conversion of the old mill into ( apartments, and that he put in their own meters and transformers. He said that he hoped the town was not suggesting he could not use the separate meters. Mr. Hannon said in conclusion that the town does not "make money" on the electric heating rate - that the average cost per kilowatt hour ''had.l,ittle over- head cost for billing, etc., that it is a lower rate than the residential rate. Mr. Curran suggested that the Board consider the investment in the trans- formers versus the alternative of the apartments being converted to another source and the loss of income. He said that if the bank is unable to pass on the cost of the electric heat then the bank would have to consider another alternative. Commissioner Clemmey asked if Dorchester Savings Bank would consider paying for their own transformers. Attorney Curran answered that they would have to do a feasibility study on electricity cost. He said that one of the reasons for the prior owners' default was for the high cost of electric heat- ing. Chairman Colella declared the hearing closed. He said that -the Board would take this under advisement and make a decision based on what was best for the town of Mansfield firstly, and that "outsiders' interests" would come next. Attorney Curran stated that Dorchester Savings Bank should have as much say as any resident of the town, and that tf the Mansfield Light Department took that attitude, then it would be jeopardizing its position. He said that one of the beauties of a municipal electric board is that the residents can vote the commissioners in or out of office. He said that Mansfield would stand to -2- BOARD OF LIGHT COMMISSIONERS Minutes of the Meeting October 18, 1976 Page 3 lose if it forgets about "outsiders ". He also asked that the Board keep in mind the bank's proposal on individual metering. Mr. Kovich asked that the Board keep in mind what has happened to Twin Oaks. He said that the present investors are not getting a return, and that the Light Department's income would be that much less if there is no cooperation between the investors and the town. fie said that investors cannot continue to lose money on their investment. Chairman Colella commented that the Board will not '!short- change" anyone. Mr. Kovich said that he agreed with Margot Jellinek's earlier statement that conservation of electricity would soon become the "law of the land ". At 9:32 p.m., Commissioner Clemmey moved that this Light Commissioners' meeting be adjourned until 9 p.m. on Wednesday, October 20. Seconded by Commissioner Titus, and voted 3 -0. all