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HomeMy WebLinkAboutLC_01_21_2015Light Commission Minutes January 21, 2015 [1FCU--E0 -ICE Present: Jess Aptowitz, Chair; Olivier Kozlowski, Vice Chair; Frank DelVecchfio, Cle'ri oug Annino., George Dentino; William Ross, Town Manager and Gary Babin; c�rJMEF 4t. A 4 9 Chairman Aptowitz called'the meeting to order. The Chairman reminded everyone the meeting is being broadcast live and taped for future broadcast on Mansfield Cable. Motion: To Approve Light Commission Minutes for October 1, 2014 (DelVecchio/Kozlowski) PASSES 5:0 Motion: To approve Light Commission Minutes for October 29, 2014 (DelVecchio/Kozlowski) PASSES 5:0 Motion: To approve Light Commission Minutes for November 17, 2014 (DelVecchio/Kozlowski) PASSES 5:0 None. Mr. Babin began by giving a brief statement with regards to electric rates over the winter as National Grid has announced an increase of 3 7% and NSTAR announced an increase of 29%, both effective in January. Mr. Babin was happy to report that MMED's Generation Charge (cost of power plus transmission) has actually decreased from $0.0989 in the 4th quarter of 2013 to $0.0909 in the 1st quarter of 2014. Mr. Babin stated it is the nature of the Town's power supply that allows MMED the ability to avoid significant price fluctuations like those the others experienced. Review and Discussion of the Financial Results for the Month of November, 2014 - Mr. Babin reported that Net Income through the month of November was about $782,000, which is down by $113,000 from last year. He went on to report that operating cash was $8.8 million and the Depreciation Fund was $4 million He mentioned that MMED has an aggressive Capital Program over the next five years of approximately $15 million. Mr. Babin noted that energy sales (kWh), year to date, are down 3.4% from last year. He explained that loss of sales is a bit of a concern because it continues to erode, in part due to more energy efficient appliances and the fact that customers are generally using less energy. Mr. Babin felt it was worth noting that between FYI I and FYI 4 energy sales were down about 6%. Mr. Kozlowski appreciated the hard work especially given NSTAR and National Grid bills were increasing. Mr. Annino noted the value of the Department to the Town. Light Commission Meeting January 21, 2015 Pagel of Mr. DelVecchio stated it was great that the rates were stable and asked how long this could be projected to last. Mr. Babin felt at least for the next few years and expected a further drop given the debt service coming off the books in 2018, the favorable energy contract with NextEra and the generating facility entitlements MMED holds through MMWEC. Chairman Aptowitz asked how the department is doing with receivables and Mr. Babin noted receivables are down about 14% as there has been a more concentrated effort with collections as the department has hired a new person to focus on that function. Mr. Ross noted that commercial accounts receivable that are 30 days outstanding are less than $10,000. Discussion of the List of Requirements for Approval of the Branch Street Solar Facility - Mr. Babin noted that in December the Commission granted permission for the staff to pursue negotiations of a Purchase Power Agreement (PPA) with the developers of the Branch Street property, subject to a variety of considerations. From the discussions it is anticipated entering into two separate contracts: 1) a power contract and 2) a development agreement. Mr. Babin noted that Mr. Annino submitted a list of requirements that he felt necessary for approval and in addition resident Sergio Martin provided a list of the neighborhood's request for consideration. Both lists have been included in the Commission's packets as well as provided to the developers and neighborhood representatives. Mr. Ross noted of the two agreements the Town will put together the PPA will be straightforward as it deals with the relationship between MMED and the developer in terms of purchase of the energy from the installation. Mr. Ross stated that, more importantly, there will be the development agreement. In reviewing both Mr. Annino and Mr. Martin's lists, Mr. Ross felt there were similar ideas. Mr. Ross felt the next steps to be: 1) to ensure that the Commission has reviewed both lists and will attempt to integrate them and 2) sit down with Town Counsel, similar to the Chocolate Development agreement, and begin to formulate a draft for the Commission to review and comment. Mr. Ross referenced a few of the items on those lists: • Interest in ensuring site is aesthetically appropriate • That the site is properly maintained • The developer has proposed a small parking lot adjacent to the trail that the Town felt to be a good idea but noted the neighbors have raised questions. Mr. Ross stated with all due respect he felt it makes sense but noted for the Commission there is a conflict. • There was some confusion at the staff level on the comparisons made in the neighbors' letter between this project and the Norton project proposed for Wheaton College. Mr. Ross confirmed that those comparisons were only used for illustrative purposes, although as a side note Norton has turned down a permit for the proposed site but he felt that if the developer were to go to court Norton may lose due to the structure of State law. • Staff spoke with the developer and it was noted there is no intent for generation other than solar panels, or for energy storage facilities. If in the future that were to change, the developer would have to come back for an amendment as the Town is interested in protecting its long term interest. Light Commission Meeting January 21, 2015 Page 2 of 5 • The Town has always looked for a letter of credit or a bond to protect the Town against the long term cost to remove the site when it is no longer effective. He noted that this will be contained within the PPA. Mr. Annino looked for clarification in terms of including in the development agreement what the Commission talked about and what the neighbors are asking for. Mr. Annino asked the Commission to review what he has submitted to be sure they are in agreement. Mr. Dentino felt what is important is that the developers and the neighbors agree. Mr. Ross noted the developers have received both lists and most items have been discussed with Town staff. Mr. Babin further noted that the developer will have a site plan prepared within the next month. Attorney Ed Valanzola, representing the developer, noted the goal is to include most, if not all, of what is contained on both lists on that plan to present to the Commission. Chairman Aptowitz asked if the site plan review will be done through the Planning Board to which Mr. Annino noted it is a Department Head review. The Chairman asked what the forum of that would be and Mr. Ross explained it would first be reviewed by staff to ensure compliance with the requirements by law and to make sure items contained on those lists have been addressed in one manner or another. Mr. Ross then explained the review then moves to the Light Commission for review where the public could provide input. Town staff would include: Gary Babin - MMED, Shaun Burke - Planning, Nick Riccio — Zoning and Building, Rick Alves - Engineering, Lee Azinheira - DPW, Katelyn Merrill - Conservation, Sherri Gurnon - Recreation and Public Safety — Fire and Police. Any of those comments would be reviewed by the Commission and proponents would schedule a presentation with abutters. Mr. DelVecchio asked if there was any value to having the Planning Board in an advisory role to which Mr. Ross said they could be if the Commission would like to add that step. Mr. Kozlowski suggested rather than independently doing that to ask for ajoint meeting to which the Commission agreed. Mr. Dentino felt the crux of the issue was how many items can be agreed to between the two sides. Mr. Dentino would like the Commission to approach both sides in order to get them to agree on a list and from there bring in staff to review. He felt this would save time and would be an acknowledgement of what the two parties agree to. Chairman Aptowitz stated it is what the Commission agrees to and they should incorporate items that the neighbors suggest. Mr. Ross stated the next step is for the developer to put together the site plan to address as many of the items as possible and from there work towards a developer agreement with Town Counsel. As far as timing, Attorney Valanzola hoped to have the site plan ready by mid-February but noted it has been his experience that feedback is provided by department heads and revisions are made, which could take an additional few weeks. Attorney Valanzola noted it is the developer's hope to find common ground with the two lists and he said they can already incorporate most of what is there. Attorney Valanzola also hoped to list separately what the developer cannot do, which the Commission can review and decide after input from staff how to proceed. Chairman Aptowitz, in reference to the parking, noted the street (Lincoln Road) is still not an accepted public way and was concerned about additional traffic in the area. Mr. Ross noted the layout would require vehicles not having to back out. Light Commission Meeting January 21, 2015 Page 3 of 5 Chairman Aptowitz thanked the developer and the residents for their cordial working relationship. Attorney Valanzola will submit the site plan to the Building Inspector, Nick Riccio, but is concerned with the additional level of review from the Planning Board where there is the possibility of prolonging the process. Mr. Annino reiterated Mr. Kozlowski's suggestion that it would be a joint meeting with the Planning Board. Discussion and Request for Approval for Extending the MMED Appliance Rebate Program - Mr. Babin explained that this is a ten year old Residential Conservation Services program mandated by the Department of Energy Resources. The requirement is to target an expenditure of one quarter of 1% of all Operating Revenue for the RCS program. Mr. Babin reported the department has issued over 6,300 appliance rebates, meaning roughly 73% of MIVIED's total residential customers have received rebates through the program. This program reimburses only for purchase of Energy Star appliances. Mr. Babin noted that in the past this was approved annually except for the last renewal where the Commission went out three years. Mr. Babin is asking for a three year extension and would like to incorporate clothes dryers into the program as they now have Energy Star dryers and suggested a $100 rebate. He did explain that the department does limit the amount of total rebates in a calendar year to $100 per electric account and noted the rebate is given as a credit on the electric bill. Mr. Ross raised an issue regarding the limitation of a $100 rebate per household per year where he noted that when a dryer is replaced typically it is done in tandem with a washer which would limit the customer to one rebate. He noted that the Water Department has a similar conservation program and does not have a limit and felt there would be an inconsistency. Mr. Annino noted the department could set a limit of no more than $500 in rebates per customer per year. Mr. Babin was more comfortable with $200 as to Mr. Ross' point that washers and dryers are typically sold together. Mr. Kozlowski noted the department is mandated to do this anyway and must give a certain percentage back. Mr. Babin noted the department is mandated but how it is done is up to Commission and it is one thing that the M?\4ED offers that is very popular. Chairman Aptowitz felt the discussion regarding the limit of rebates a customer can receive in a single year would have to be tabled as that is not on the agenda. Motion: To extend the appliance rebate program for three years (Annino/Kozlowski) PASSES 5:0 The Chairman would like the discussion regarding the limit of rebates on the next agenda. He would also like to review the Water Department rebate program and if there should be a limit but noted that would be for a Board of Selectmen agenda. Mr. Kozlowski asked if there were a quick way of analyzing who is benefitting from the rebates. Mr. Ross noted there are good records on file where a form is completed that includes evidence of the purchase. He noted that the Water Department actually does an inspection. Chairman Aptowitz would also like to discuss and review fees. Light Commission Meeting January 21, 2015 Page 4 of 5 Mr. Annino would like to see more graphics included as he felt it is helpful for residents to understand where their energy is being used. Mr. DelVecchio assumes that the Commission will be reviewing the rationale for the historical development of the PILOT. Chairman Aptowitz noted he and Mr. Dentino have been discussing this for years where the previous Finance Committee members were to review but nothing has happened. Mr. Babin mentioned that he had an analysis of PILOTs in other communities and would get that information to Mr. DelVecchio. Mr. Dentino does not recall when any Executive Session minutes have been approved. Mr. Babin would look into what has yet to be approved. None. Kozlowski (AYE), Dentino (AYE,), Annino (AYE), DelVecchio (AYE) and Aptowitz (AYE) PASSES 5:0 9:34 PM (Kozlowski/Annino) The Commission will adjourn into Executive Session. wry Signature of Clerk Adw Light Commission Meeting January 21, 2015 Page 5 of 5 Date of Approval