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HomeMy WebLinkAboutmin light commission 04/13/05 ~ /fEC~/V" > rOt" t., , ", (' n Os !14't 1301 vFFICt 411 8. I. ;;"~, . 'I 6 Iw i 1/,'>,' I'/ASSA(/IEl..D Present: Chairman Roger Achille; Vice Chairman Louis P. Amoruso; Clerk "Y~rs Dolan; Commissioner Steve MacCaffrie; Commissioner Mike McCue; Director Gary Babin; Engineer Ann Langille; Engineer Chris Cox; Line Foreman Gary D' Ambra; Financial Assistant Jacqueline Lee and Manager John D' Agostino Mansfield Municipal Electric Department Minutes of Light Commissioners Meeting April 13, 2005 Light Commissioners Meeting The meeting was called to order at 7:45, followed by the Pledge of Allegiance. Motion: To approve the minutes from the March 9, 2005 meeting (MacCaffrie/Amoruso) Passes 5/0 r Director's Report - Director Babin began by presenting the final, unaudited Calendar Year 2004 financial statements. He stated that MMED had a stable year in 2004 with a net income of $2,042,434, down 11.4% from the prior year. The rate of return on gross plant was 6.63%, well below the allowed 8% return. MMED's gross plant value increased by $3.2 million, or 12%, primarily due to the Gilbert St. Substation expansion. Gilbert St. accounted for $1.7 million of the increase while other plant additions accounted for $1.5 million. Free cash at the end of 2004 was $838,646. Director Babin stated that his goal is to have a minimum of $1.5 million in unrestricted cash on the balance sheet, which is the equivalent of three months of operating expenses, excluding purchased power, as a benchmark level. Overall, he summarized, MMED had a good year. Commissioner McCue asked if the accrual of free cash is allowable under the cap of8%. Director Babin explained that MMED is allowed to build a cash balance regardless of its level of profit. If more than the allowed 8% rate of return is earned in any year, the amount over 8% can be put into a rate stabilization fund, as it must be returned to the ratepayers and would flow through the PPCA as an offset to costs. r"' Vice Chairman Amoruso made the observation that to build a new substation in East Mansfield will require free cash. He wondered how MMED will prepare for that. Director Babin answered that it has been determined that MMED will have to borrow money to build that substation because of the level of the expense and that he doesn't see the need to raise rates at this time in anticipation. Vice Chairman Amoruso suggested that, if necessary, gradually raising the rates over a longer period of time instead of hitting the ratepayers with a large rate increase all at once would be best. Director Babin reiterated that he didn't foresee a need to raise the rates at this time, but would look into Vice Chairman Amoruso's suggestion as an alternative. .... .... ,,--.-. . Information and Requirements for Electric Service Policy Manual - Director Babin reminded the Board that they had received MMED's third policy manual at the March 9, 2005 meeting. Tonight they would be asked to approve it. Chairman Achille inquired as to the staff involved in completing this project, as he felt they should be recognized. Director Babin said it included everyone at the management level, including Engineer Langille, Foreman D' Ambra, Office Manager Laurie Anderson and Engineer Cox. Upon completion, the manual was also given to the customer service staff of Jackie Lee, Elaine Peri, Jim Brinson and Nancy Olson for their comments. Director Babin asked Engineer Chris Cox, who was responsible for putting together all three ofMMED's policy manuals, to address the Board. Engineer Cox explained that the third policy manual was really the nuts and bolts of how MMED conducts its business, and includes many of the technical details. He thought that to go through the entire manual would be cumbersome, but asked if there were any questions. There were none. ~ Director Babin asked the Board to recognize Engineer Cox for the job he has done on this project. He pointed out that there is a lot of work involved in developing a working draft from which to start, that many meetings were held to discuss the drafts, approximately five or six per manual, and integrating everyone's comments can be a tedious chore. Director Babin felt that Engineer Cox had done a fine job in putting all three policy manuals together, getting them approved over the last year and wished to recognize his contribution to the Board. Now the staff has current information, in writing, upon which they can rely on in addressing a wide range of customer issues. Motion: To approve the Information and Requirements for Electric Service policy manual (MacCaffrie/ Amoruso) Passes 5/0 Fiscal Year 2006 Operating Budget - Director Babin directed the Board to a copy of the FY06 Operating Budget in their Board package. This was being provided to the Board for their review. Director Babin told the Board that he had made arrangements to be placed on the May 4, 2005 agenda, at which time he will present the budget and the Board will be asked to approve it. In the meantime, Director Babin indicated that he had scheduled a meeting with the FINCOMM to solicit their opinion on the budget. Old and New Business Commissioner MacCaffrie indicated that he had become aware of an incident in which a MMED employee was verbally abused by a developer. He suggested that if the situation came up again, the employee should give the person his phone number and walk away. He believed what had occurred was uncalled for and no one deserved to be treated like that. Director Babin explained that he had personally become involved, and that the developer r- had been told that MMED would not be moving forward on his request until he had made a written apology to the employee. Director Babin said that the individual's request was .. , .. . (', ,~ (' put on hold and when that apology was received, MMED did move on it. Director Babin said the matter had been addressed internally and was taken care of in a proper manner. Questions and Comments George Dentino, 2 Gladiola Terrace, inquired if MMED's January, February and March financials had been completed. Chairman Achille asked Mr. Dentino to address his questions directly to him. Mr. Dentino restated that he believed the January, February and March financials were in arrears and asked if that was correct. Chairman Achille told Mr. Dentino that if he has the facts and asks his questions of Director Babin or the Light Department Manager, then he could come back with his theory or comments. He said the Board would then listen, but there would be no cross-examination of the staff on this evenmg. Adjournment Motion: To adjourn the Light Commissioner's meeting at 8:05 Passes 5/0 Respectfully submitted: Jacqueline Lee 5/11/05 ~4~ Sig6ature of Clerk . ""