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HomeMy WebLinkAboutLight Comm 10/09/1984MUNICIPAL LIGHT COMMISSION A G E N D A OCTOBER 9, 1984 1) 7:30 P.M. Meeting Called To Order a) Minutes of September 10, 1984 b) Minutes of September 10, 1984 Executive Session 2) 7:45 P.M. Old Business a) Light Plant Manager 1) Auditor's Management Letter b) Light Commissioners 3) 8:30 P.M. New Business a) Light Plant Manager 1) Letter from David E. Loving 2) Power Supply 3) Martin B. Cahill 4) Energy Conservation Program b) Light Commissioners 4) 9:30 P.M. Adjournment BOARD OF LIGHT COMMISSIONERS MINUTES OF MEETING OCTOBER 9, 1984 PRESENT: Chairman James Wills, Commissioners Dunn, D'Onofrio, Light Plant Manager John Larch. Commissioner Levine arrived at 7:43 P.M. Commissioner McNair was not present this evening. 7:30 P.M. Meeting called to order. Minutes of September 10, 1984, approved Dunn/D'Onofrio VOTED: 3-0. Executive Session Minutes of September 10, 1984, approved D'Onofrio/Dunn VOTED: 3-0. Auditor's Management Letter Present were Office Manager Allen Jones and Credit Manager Marge Porrazzo to go over the credit and collections portion of the auditor's management letter. Mr. Jones noted that the monthly trans- fer of cash from the operating fund to the depreciation fund and back again into the operating fund was agreeable with the Town Treasurer and the Town Accountant. * MOTION: To make a monthly transfer to the Depreciation Fund from the Operating Fund of 1/12 the annual budgeted amount and to transfer from the Depreciation Fund to the Operating Fund an amount up to the cumulative budgeted capital outlay. D'Onofrio/Dunn VOTED: 3-0 Levine abstained. Mr. Jones went over the various points outlined in the management letter for improvement and what steps have been taken to correct them. The main item discussed was the cash account which is improving. We received a $53,000 credit from MMWEC in regards to pre -paid purchased power which also helped the cash account. He noted that our Accounts Receivable aged trial balance over 90 days past due had a balance of $157,000 in September which was one of the main problems in the cash account. There is presently a total of 359 accounts over 90 days past due. 299 are "hard-core" accounts, 38 accounts still in town, but with various medical problems, ,etc. that the department is handling and 22 property owners of which 7 have been liened. Mr. Jones also went into the various town accounts which were overdue. The total town accounts overdue amounted to $48,800. The high school has $20,800 over 90 days past due along with $11,100 in the Highway Dept., $2,100 in Sewer Dept. and $300 in Water Dept. The Town Hall account over 90 days past due is currently $3,600. He mentioned that he had talked to the Town Treasurer about these town accounts and she saw no reason why the town departments would require more than 30 days to pay utility bills. It was mentioned in discussion that the town is getting interest on Electric Department money. There was a question on recovering on bounced checks which the Electric Department is currently investigating for discussion and possibly policy change. Mr. Jones informed the Board that he had contacted three agencies for credit and collection of past due accounts. The first was a family business, the James Agency, which was recommended by Taunton Electric. Another firm, the Chandler Agency, used a network in N.J. and sent out five letters at a cost $4.00/account. It was noted that the Department would have to pay court costs. BOARD OF LIGHT COMMISSIONERS MINUTES OF MEETING V OCTOBER 9, 1984 PAGE 2 The last firm, Credit Reporting, had no utility experience in credit and collections. Mr. Jones felt that the James Agency was a better firm to go with. Small claims court was also discussed for some accounts with current addresses. This will be taken into consideration. Most of the finalled accounts with no forwarding address will be turned over to a collection agency. Mr. Jones is also working on a new credit and collection procedure manual to prevent future problems of this kind. There was a short discussion on security deposits and the amounts charged to customers. The deposits will be looked at to see if they need to be changed. Commissioner Levine asked about budget accounts and if these customers received the discount, which they do. * MOTION: That the Light Commission resolve that all municipal government Electric Department charges more than 30 days past due be brought up to date immediately. D'Onofrio/Levine VOTED: 3-0 Dunn abstained. Chairman Wills will have a report for Selectmen's meeting tomorrow evening. Commissioner Levine brought up the idea of having a separate light commission. * MOTION: To form a committee to get pros and cons of having a separate Light Commission. Levine/Wills VOTED: 3-1 D'Onofrio opposed. A lengthy discussion went on regarding the formation of another advisory group to look into the idea of a separate light commission and whether it would be an appointed or elected board. It was suggested they check the town charter. Commissioner D'Onofrio felt the Board should see what kind of information MISERY gets from the townspeople then decide what action to take. * MOTION: To move the question (above). Levine/Wills VOTED: 3-1 D'Onofrio opposed. The Light Commission will advise the committee of what they want them to do. David Loving Letter Mr. Larch asked the Board what action they would like to take regarding a letter they received from Mr. Loving. His meter is inside his house and the meter readers cannot get in to read it, so it has been estimated for some time. DPU regulations prohibit more than two months of estimated bills and they must get access to the meter. It would cost him about $400 to move the meter and the Department does not have meter cards for him to take his own readings. Mr. Larch suggested we contact him to get in and read the meter early in the morning. It was decided that the Manager would draft a letter to Mr. Loving for the Chairman to sign. BOARD OF LIGHT COMMISSIONERS MINUTES OF MEETING OCTOBER 9, 1984 PAGE 3 Power Supply Bill Dunn from MMWEC has recommended we purchase 6 MW from Montville 6 and some additional power from Cleary -- 9 which comes under the extended weekly studies program. Montville 6 is for the winter capability for 6 months this year (Nov. -Apr.) and six months next year. In the worse case, we would save $16,900. R.W. Beck has analyzed the purchase and we could save up to $60,000 for 1985 & 1986. The purchase is for up to 6 MW. * MOTION: To approve purchase of Montville 6 and to authorize the Manager to execute the contracts. D'Onofrio/Wills VOTED: 3-1 Dunn opposed. Commissioner Levine asked why we needed a 20% reserve and was informed that this was a requirement of NEPOOL. Mr. Larch also mentioned that we would be losing 14 MW of Canal II and Salem Harbor at the end of the month. Martin B. Cahill Mr. Cahill has requested to be on the agenda for the November meeting of the Commission. This meeting will be November 13, 1984. Visitors agenda begins at 8:30 P.M. Mr. Larch will get the information together for Mr. Cahill and it was suggested a representative from MMWEC be present with Mr. Rudolph possibly. The Manager noted that the ,Department's bulk purchased power costs will 90 up about 32% from 1984-1988. Energy Conservation Program Mr. Larch informed the Board that the E.O.E.R. feels the Electric Department should make an additional expenditure of $50,000 in conservation services. We had $10,000 budgeted back in February for the conservation sale days and spent $47,000. EDER approved $11,000 as an expenditure for part of their requirement. Mr. Larch noted that we were still in the Bay State Gas program through August of 1983 and that we do not owe them for one half of the year. He feels we have met the goals for 1, 2, and 3 family homes. He plans to do a program for the elderly and low income households. If we do not follow through, EOER will mandate we join MassSave. He currently has a.program for $14,000 to do what EOER feels we should spend $50,000 on. A group weatherstripping or insulation program might be done. A $200 donation to the Library for the purchase of energy conservation books will be made, walk through survey with checklist for each household sent out and a questionnaire will be mailed to see what the people want for energy conservation. EDER could fine us for the amount not used by the Town. This could be put on the questionnaire as an option. Conser- vation sale days might be run again possibly as an ongoing program with one item per month. BOARD OF LIGHT COMMISSIONERS MINUTES OF MEETING OCTOBER 9, 1984 PAGE 4 New Business Commissioner Wills asked about the underground lines on N. Main St. Sidewalks might have to wait until the spring. Commissioner Dunn asked about the computer mapping. Mr. Larch will be meeting with them tomorrow and that this is progressing smoothly. He also asked what type of street light would be put downtown and where they would start. The cast iron poles will be on either side of the street starting from High to Thomas Sts. If more are to be put up, it might come from Electric Opt. depreciation fund. * There being no further business, the meeting was ADJOURNED at 10:25 P.M. D'Onofrio/Levine VOTED: 4-0. Mr. Larch commented that Mr. Jones had a very good presentation this evening. Board members concurred. Approved as written. ichard K. D'Unofr o CI Board of Light C mmi ners