1993-01-25 Board of Selectmen Minutes

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Minutes of the Board of Selectmen Meeting January 25, 1993 The Board covened at 7 : 30 p.m. in the RMLD Conference Room on Haven Street. Present were Chairman Dan Ensminger, Secretary Sally Hoyt, Selectmen Bill Burditt, Eugene Nigro, Town Manager Peter Hechenbleikner, RMLD Chairman Phil Pacino, RMLD Board Mem- bers Bill Brown, Allan Ames, Dave Swyter, Bill Hughes, RMLD At- torney Ken Barner, RMLD General Manager Len Rucker, RMLD employees Vin Cameron and Paul Carson and members of the Citizens Advisory Boards from Lynnfield and Wilmington. The RMLD Chairman introduced the topic of DPU 85-121 which estab- lished the earnings for the Light Department at 8% of net plant value vs. 8% of gross plant value. The difference between gross plant value of $44 million and net plant value of $24 million makes a difference in the amount of money that's available to distribute to the Town of Reading as earnings and distribution and also the funds available for capital improvement for the RMLD. The RMLD needs approximately $2 . 1 million dollars per year. Rucker reviewed several possible alternatives for revers- ing the effects of case 85-121. If it is reversed -it will cause a rate increase of 4 . 2%. The Citizen Advisory Board has indi- cated it would not object to such reversal as long as there was a method of distribution of these funds to the benefit of the en- tire system. The concensus of the RMLD Board Members was that we should appeal to DPU to reverse this ruling, and if not success- ful then we may appeal it to court. Part of this process would be to establish a cap of $1.9 million on payments to the Town of Reading, and a difference between current payments to the town and that cap would be phased in over time so as to avoid a single large rate increase. The Reading Board of Selectmen may support this because it provides better stability than the $1.4 million that we're currently getting and will provide for some growth in this area. Under this scenario, the routine capital needs of the RMLD could be met. Extraordinary RMLD needs such as a new sub- station or a conversion to fiber optics would require bonding by the Town of Reading. The idea would be to go to the DPU jointly with all four towns supporting this approach. The concensus was that the Citizens Advisory Board Members should be polled to find out whether or not their communities would be willing to attend a joint meeting with the RMLD and the other communities to discuss this issue. The Town Manager and the RMLD General Manager will draft a statement of approval to be acted upon by the Board of Selectmen. The Board of Selectmen and the RMLD Board also discussed street lighting costs. It is possible that with the increase in capital expenditures by the RMLD, conversion in all four communities to more efficient street lighting could be done and this could help reduce local expenses. The Board of Selectmen and the RMLD Board reviewed the issues with regard to the Haven Street facility and agreed that a task force should be established which would include a member of the RMLD Board, a member of the Board of Selectmen, a member of the Chamber of Commerce, a member of Town Meeting, and a member of