The URL can be used to link to this page

Home My WebLink Aboutmin of light commission 11/08/01 " (" PC" "j:I\I'~ !\d.ll". 'itO ,~.,~ "'" ,1 ~ r'i ".... I' ,. Co, rrF ICE LIGHT COMMISSIONERS' MEETINQj DEC 18 Minutes of U At110: 39 November 8, 2001, 7:30 PM r,~~ .~\:; j t ~.-' L 0 ~1/\ SS!~, ClIU"SETTS Present: Chairman Brad Wills, Clerk Lou Amoruso, Dan Donovan, David McCarter (present from 7:35 p.m.) Light Department Manager: John D' Agostino Light Department Director: Jack Beliveau Light Department Financial Officer: Kimberly Stoyle Minutes of October 15,2001. Motion: To approve the minutes. (AmorusolDonovan) 3/0 Passes Executive Minutes of October 15, 2001 Motion: To approve and not release minutes. Clerk Amoruso mentioned receipt of a letter from a homeowner who lavished praise on Gary D' Ambra. Questions and Comments None Light Department Director's Report r Financial Report - August Ms. Stoyle went over the financial statements with the Light Commissioners. Sales were $2, 198k up 58% over the prior year. Total Purchase Power was 17% higher than the prior year at $1 ,413k. Net Income was $575k before PILOT resulting in a bottom line Net Increase to Surplus of $525k. YTD Net Income or Net Increase to Surplus is $1,702k. That includes the one time adjustment from MMWEC of $534k. Factor that out, Net Actual is $1, 168k. Ms. Stoyle anticipates a minimal profit for October and should finish the year at the projected earnings figure. (The 8% statutory limit on earnings and Other Income were briefly discussed.) Plant value has increased 101 % over last year because of Substation construction at $11,759k. Cash is inflated at $2,380k because $1.5 million is due to be returned to MMWEC, for working capital. Uncollectable Accounts have stabilized. The bankruptcy court is dealing with the Rojacks situation. In September two outages were due to squirrels. Tree trimming policy was briefly discussed. Under major projects, the new Billing System is live and continuing to run simultaneously with the former billing system and will continue to work this way until the end of the month for security reasons. At that point the Inventory Bar Code System will also be fully operational. Director Beliveau alerted the Commissioners to the fact that the negative comments in the annual audit, received last night, pertaining to the billing system are now a moot point. This new system eradicates previous problems and deficiencies. Director Beliveau mentioned the SCADA System moving towards the completion. Ann and Ronnie are working with the contractor to fmish that up in the next few months. SCADA Systems were mentioned at a presentation at the Council on Aging. Manager D' Agostino said the FBI issued a recommendation that municipalities get SCADA as a first priority for insuring the safety of that system whether it is water, electricity or whatever. (\ The Director said the West St. Project is ready to pull wire. ~ , Purchased Power - New contract We have been moving in a direction to enter into a new Purchase Power Contract for approximately twenty per cent portion of our load. Growth has created a need for more generation and price of wholesale electricity is at an historical low. It is an opportune time to do this. We expect to have a bid opening within the next two weeks and award a contract for approximately 10 MW of power over a ten- year period, valued at about twenty-three million dollars. The price of wholesale electricity ($0.03.6/$0.03.7 per KWH) compares favorably with our current cost of wholesale power ($.08 1f2 per KWH.) We are headed in the right direction towards lowering costs for the consumer. The NE Power ruling was favorable and issued today; resulting in a rebate of about $300k this year, with a reduction in our future costs of about $200-250k per year thereafter. Director Beliveau briefly explained the case to the Commissioners. Old Business r Payment in Lieu of Taxes The Director explained and answered questions from the Light Commissioners concerning the history of the present PILOT. He explained a variety of options to implement a PILOT. Director Beliveau recommended a fixed PILOT amount of $300,000 with an additional 10% of the Light Department's profit being given to the Town. Chair Wills asked Manager D' Agostino for his opinion on the particular PILOT suggested by the Director. Both the Manager and the Director supported a future PILOT of $300,000 plus 10% of profit. Under this new policy, both the Town of Mansfield and Light Department will be able to calculate and an identical figure. Chairman Wills opposed this solution stating he didn't think the 10% of profit a good idea. Director Beliveau stated that the new PILOT would compensate the Town for all service rendered with the exception of Direct Services such as retirement, insurance and unemployment. Manager D'Agostino agreed and, reading from last year's bill, stated the new PILOT would be inclusive of past charges for, Town Manager, Accountant, Treasurer, Data Processing and PILOT. **Mr. Dentino was allowed approach the podium to clarify some questions he had regarding his understanding of the process of the new PILOT. He asked how the Town would budget the fixed amount versus the variable amount. Town Manager, D'Agostino stated he would budget the fixed amount into the Town's budget and allow the variable amount to flow to free cash. Mr. Dentino stated agreement with that approach. Motion: To approve a PILOT beginning with municipal fiscal year 2003 for $300k plus 10% of annual increase to surplus of the Light Department. (AmorusolDonovan) 3/1 PASSES It was decided to await the state budget before deciding what to do for the current municipal fiscal year 2002. North Common - Holiday Lighting Chairman Wills was interested in fixing the lights on the North Common. In light of the train station dilemma, the workload of the Electric Company, and the cost most of the Commissioners opposed placing holiday lights this year. r New Business Potential Rate reduction The Director discussed potential rate reductions, PPCA reduction, the iniquity between commercial/industrial and residential rates, and how to make commercial and residential rates more equitable and the effect on earnings and time line. Director Beliveau will make a presentation in January/February 2002. . ~ ~ The Director responded to Commissioner Donovan's concerns about cable (Cable TV) on South Main Street. The Director stated his position and tentative course of action. The Cable company will be required to place their lines underground at no cost to the Town because their current pole permits do not entitle them to carrying plant once the poles are removed. Date of next meeting: December 17, 2001, 7:00 p.m. Ms. Stoyle mentioned the Christmas Party, December 14th. The Director once again mentioned the secretary/note taker position. He thanked Marianne, the Chairman's wife, for coming forward to temporarily help out when the last secretary could not participate due to personal conflicts. After the past secretary was unable to return, Marianne has continued in the position The position pays a flat $75.00 per meeting which includes attending the meeting, taking the notes and preparing those minutes and forwarding them to us. Director Beliveau again solicited interest in anyone taking the position in the future. To date, however, no one has expressed interest. If anyone has any questions, please call Kim at the Light Company. Adjournment Motion: To adjourn at 9:05 p.m. (Donovan/Amoruso) 4/0 Passes r Scheduled Outage On Saturday, November 17,2001, there will be a scheduled outage from 4:00 a.m. to approximately 7:00 a.m. to perform the final conversion for the 70 year old equipment at our substation to the new equipment. The areas that will be affected are as follows: East Street (from Branch Street to North Main Street portion) West Street (from North Main Street to Rumford Avenue including George's Cleaners and Wallpaper City) Fulton Street Fulton Place (including Sweet and Crafty/and apartments at this location- 34 North Main Street) Step-N-Style Salon/apartments at this location (44 North Main Street) Sibilia's Dental Office (25 North Main Street) 24 & 26 North Main Street Rumford Avenue (from West Street to Villa Street portion) Mansfield United Methodist Church at 9 North Main Street We apologize for any inconveniences this may cause. Should you have any questions or concerns, feel free to call me at (508) 261-7395. Thank you. ~. 15 Dee.. 0 ( Date of Approval r