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