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HomeMy WebLinkAbout2013-02-27 RMLD Board of Commissioners MinutesReading Municipal Light Board of Commissioners Regular Session RECEIVED 230 Ash street TOWN CLERK Reading, MA 01967 RE:, "iNG, MASS. `y„ February 27, 2013 Start Time of Regular Session: 7:35 p.m. Z013 APR - I A 9: 04 End Time of Regular Session: 8:50 p.m. Commissioners Philip B. Pacino, Chairman Gina Snyder, Vice Chair Marsie West, Secretary - Absent Robert Soli, Commissioner John Stempeck, Commissioner Staff: Vinnie Cameron, General Manager - Absent Beth Ellen Antonio, Human Resources Manager Jared Carpenter, Energy Efficiency Engineer Jeanne Foci, Executive Assistant Robert Fournier, Accounting/Business Manager David Poison, Facilities Manager Kevin Sullivan, Interim General Manager Citizens' Advisory Board: Tony Capobianco, Member Opening Remarks Chairman Pacino called the meeting to order and stated that the meeting was being videotaped. Introductions Chairman Pacino acknowledged Citimns' Advisory Board member Tony Capobianco's attendance at the meeting. ® Public TheComment There were no members of the public present. Approval of Board Minutes Mr. Stempeck made a motion seconded by Mr. Soli that the BUILD Board of Commissioners approve the Regular Session meeting minutes of January 30, 2013 with the changes presented by Ms. Snyder. Motion carried 4:0:0. Mr. Capobianco asked why the board is hesitant to start new initiatives without a new General Manager in place. Chairman Pacino responded that his concern is that if we start a new initiative at this point, the permanent General Manager may inherit something that they are not in agreement with. Mr. Capobianco asked does the General Manager always have to agree with the Board of Commissioners. Mr. Stempeck responded that it could be an open debate in terms of discussion back and forth. Mr. Stempeck stated that Ms. West pointed out that the Bound is here to set policy, not to make operational decisions. Ms. Snyder clarified that discussion at the January meeting was that the Board makes decisions regarding capital expenditures but the Board declined to proceed at the last meeting. General Manager's Report - Mr. Sullivan Interim General Manager (Attachment 1) Mr. Sullivan reported the following community events: Wilmington School/Business Partnership - Wednesday March 20.2013 Priscilla Gottwald, RMLD Community Relations Manager will participate in the Wilmington School/Business Partnership informational event on Wednesday, March 20. The RMLD is a member of this partnership. Reading Senior Center Workshop - Thursday March 21, 2013 Maureen Ilanifan, Customer Service Manager, will participate at this event. She will provide information on appliance rebates, time -of -use rates, budget billing and other customer programs. Mr. Sullivan reported that he reached agreement with Mr. Cameron m consult to the RMLD. Mr. Sullivan said that the agreement is at Mr. Cameron's previous wage structure on an as needed basis. Mr. Stempeck clarified that the compensation is based upon hours and rate structure. Mr. Sullivan replied that is correct how for how. Regular Session Meeting Minutes February 27, 2013 General Manager's Report — Mr. Sullivan — Interim General Manager (Attachment 1) • Mr. Sullivan reported that based on the Chairman's request at the January 30, Board meeting, he spoke with Mr. Cameron regarding the solar garden concept project. Mr. Sullivan reported that Mr. Cameron has requested additional detail surrounding the overall economics of the project as well as more substance on the cost benefit analysis. Additional detail is required on the project on its impact in reduce and avoid the peak demand charges related to capacity and transmission. Mr. Sullivan said that at the January 30 and February 20, Board meetings, the residential energy audits for RMLD's residential customers were discussed. Currently, there were approximately 400 outstanding audits. The Department allocated an additional $30,000 to continue to provide residential audits. In addition, the RMLD will review thew internal procedures to determine which customers would best benefit from an energy audit, with some customers having m wait until fiscal year 2014 to receive that audit. Since last week, the RMLD has done the following: a press release has been sent out that the RMLD has temporarily stepped back on the process of providing energy audits to reassess our procedures, reviewed its outstanding audits in which there are 194 outstanding requests (down from the original 400). The RMLD bas communicated directly with customers who have inquired about the audits. In the future, all requesting customers will be called by the Customer Service Department regarding their applicability for an energy audit Future requests can be made by phone to the RMLD or by using RMLD's website. The Energy Auditor should not be contacted directly. The RMLD will be meeting with the Energy Auditor in March to discuss how to streamline this process. Other Post Employment Benefits (OPEB) Melanson Heath & Company, PC Letter of Recommendation and Rubin and Rudman's Legal Opinion Mr. Sullivan reported that he was not going into the level of detail that he did at the January 30, Board meeting. However, Mr. Fournier, the Town Accountant and he were in agreement on the possibility of combining funds with the town into the state retirees' health care fund. Mr. Sullivan stated that at that time, he asked the Board to table the vote pending further review and evaluation. Mr. Sullivan stated that Mr. Fournier, the Town Accountant, he and legal counsel have found out that no formal instrument is required. However, it would be advantageous to create the formal instrument document, in move forward aligning with the town, and reducing the liability to the financial statements. This view is also supported by Mr. Cameron in the creation of the formal cost instrument. Mr. Stempeck inquired if the RMLD is aligning with the town, are there certain cost advantages to the retirees. Mr. Sullivan responded that there is a larger pool of money with a distinct possibility of reduction in costs. Mr. Stempeck asked if there is a cost to implement this. Mr. Sullivan responded that the trust document has to be drawn up by legal counsel. Mr. Stempeck questioned that it states that the commissioners could be subject to a remote possibility of litigation. He does not quite understand this, why they would. Mr. Sullivan responded that neither does legal counsel, however, anyone can be named in a suit. Mr. Sullivan referenced a memo in 2010, in which the Board has protection from suits due to the Massachusetts Tort Claims Act, which provides sovereign immunity to the Board. Chairman Parma pointed out that the Board has indemnification agreements as well as D &O Insurance. Mr. Sullivan said that by aligning with the town it reduces the liability in the financial statements. Mr. Fournier explained that the funds would be equal, however, separate. Mr. Fournier stated that In discount the auditor's opinion is disconcerting. Mr. Fournier pointed out that Mr. Biron, President of Melanson Heath provided an opinion on January 4, and strongly recommends that RMLD move forward with the irrevocable trust. Mr. Soli asked what our legal counsel suggested. Mr. Founder said that they said you do not have go with the trust, you can if you want. One other aspect is that previous commissioners were afraid of liability issues. In the same legal opinion it would be difficult for anything to come against the Board, it would be against the custodian who is the Town Treasurer per Board policy. Everything will be tied in with the town, equal, but separate. Mr. Sullivan pointed out that there is one more advantage in creating another custodian other than the Town Treasurer. This instrument would be in place for that. Without the instrument the only custodian is the Town Treasurer. Mr. Stempeck clarified that we could withdraw some of the funds and reinvest the funds in a different way. Mr. Sullivan commented that the trust document provides the RMLD with an open ended opportunity. • Mr. Stempeck asked if there would be comingling of the funds with the town. Mr. Fournier replied that them would be separate funds by both and be capitalized at a higher discount invested in the state's fund. The them will receive its own monthly statements. Regular Session Meeting Minutes February 27, 2013 41' Other Post Employment Benefits (OPEB) Melanson Heath & Company, PC Letter of Recommendation and Rubin and Rudman's Legal Opinion Mr. Fournier pointed out that Melanson Heath states that by going to the trust that would result in reducing (or eliminating) the OPEB liability as currently reflected on RMLD's financial statements and conform more closely to the intent of GASH 45. This presentation would be more consistent with the Town's comment and may also be viewed favorably by bond rating agencies. Mr. Sullivan asked Mr. Soli what is the downside of not going forward. Mr. Soli responded that he sees a disconnect in that the opinion 2:1, maybe the auditor is wrong. Mr. Sullivan pointed out that the Massachusetts Department of Revenue only weighed in on GASH 45, not on aligning with the Town of Reading, or reducing the liability on financial statements, because they have no jurisdiction in that arena. Mr. Soli asked if Mr. Biron is the GASH expert. Mr. Sullivan added that legal counsel has no issue with creating a trust document. Ms. Snyder suggested to replicate the town's document, replace Reading Light, where the town's name appears, there would be no need to engage hours of legal counsel. Chairman Pacino was in agreement that the RMLD should use the town's document. Mr. Stempeck made a motion seconded by Ms. Snyder that the RMLD Board of Commissioners votes to create an OPEB trust instrument in alignment with the Town of Reading on the recommendation of the Interim General Manager. Motion carried 3:0:1. Mr. Soli abstained. Federal Energy Regulatory Commission (FERC) Order 719 Mr. Sullivan explained FERC Order 719 is a Commission order that has to do with Aggregators of Retail Customers (ABCs). The RMLD has commercial and industrial customers that work with ARCS to broker demand response which in its simplest format is the curtailment of load or deployment of generation upon a short notice phone call. cdThis is compensatory in nature between the customers and the ABCs; therefore there is a value to this. Mr. Sullivan said that this is why the curtailment is done. This is a motion for a continuum of service by the aggregators. The outgoing General Manager is a proponent of this motion continuing to allow the aggregators of retail customers to provide their service to RMLD customers. Mr. Stempeck clarified what is the service. Mr. Sullivan responded that the service is demand response in its simplest form, a load curtailment in which there is a cut back in load. From the customers' standpoint they are compensated for that by the aggregators of retail customers such as ENERNOC. Ms. Snyder asked if there is any disadvantage to the RMLD of an entity offering the service if we could offer the service ourselves providing we had the metering capabilities. Mr. Sullivan responded that there is substantial infrastructure required not only with metering, but within house for individuals to perform this work. The ARC firms do this all day every day. Mr. Sullivan has spoken to other utilities to see if they would like to get involved with this and the question is, why. All the large utilities such as NSTAR, permit aggregators in their territory. Currently, there are approximately thirty municipalities that have demand response customers in their territory. To date, eleven have committed to allow aggregators to work in their territory. Mr. Soli asked if in five years from now there is a new Board and new General Manager who are in agreement that this is a wonderful way to make money, let's rescind that Is the vote rescindable? Mr. Sullivan responded, yes, it is currently an annual vote. Ms. Snyder added that there is one year notice that needs to be made if you want to pull out. Mr. Soli made a motion seconded by Ms. Snyder that the Commissioners vote to continue to allow aggregation of retail customers for purposes of bidding demand response as a resource into one or more ISO -NE markets on the recommendation of the Interim General Manager. Motion carried 4:0:0. Power Supply Report — January 2013 — Mr. Seldom (Attachment 2) Chairman Pacino stated that Ms. Parenteau is on vacation therefore cannot make the report. The Board expressed thew condolence to Mr. Seldon on the passing of his mother. There will be no report this month. Regular Session Meeting Minutes 4 February 27, 2013 Engineering and Operations Report — January 2013 — Mr. Sullivan (Attachment 3) • Mr. Sullivan presented the report included in the Commissioner packet covering the monthly capital projects, an update on the metering project, and reliability reporting. Mr. Sullivan reported that for the month it was a high Customer Average Interruption Duration Index ( CAIDI) of 76.62 with a twelve month system average outage duration of 62.31 minutes. Mr. Sullivan stated that the Department continues to we CAIDI avemges hovering around a sixty minute plus minute mark for restoration and expects that this will continue through 2013. With additional tree trimming measures and distribution automation, restoration times will diminish and will be at the sub sixty minute mark. Mr. Sullivan then discussed the February 8 and February 9 weekend blizzard. The Department was staffed along with four contract crews as well as four tree crews. The RMLD was fully staffed and able to provide service in whatever form of outage could potentially occur. The system held up well. There were two windstorms in January that cleaned things up in the trees and any loose connections. Fortunately, there was only one outage during the blizzard which says a lot about the Department in terms of maintenance and the engineering staff. Mr. Sullivan reported that the System Average Interruption Frequency Index (SAIFI) value is very low. In January, the SAIFI four year average was reduced from 0.82 frequency of outage incidents to 0.62 frequency of outage incidents. Mr. Sullivan said that he chose to drop the SAIFI and start measuring the Department more closely in SAIFI. In the month of January, there were twelve outage incidents, nine were tree related of which two were related w the two wind storms with only two hundred twenty six customers affected for the month which is remarkable. Mr. Stempeck added that as he looks at the numbers, it appears that the number of outages is dropping which reflects the reliability of the Department. Mr. Stempeck said that it is taking longer to restore power, is that correct. Mr. Sullivan agreed. Mr. Stempeck clarified what is the rationale. Mr. Sullivan responded that there are six factors • that drive CAIDI, cause of the outage, time of the outage, the weather, the nature of the work, crew availability, and number of daylight hours. Anytime you see CAIDI above the four year average it is because those variables are unfavorable. Mr. Sullivan said that the CAIDI twelve month average is 0.31 frequency of incidents which translates to an outage every thirty nine months. Mr. Stempeck said that when you look at the data it looks differently. Mr. Sullivan added that in January, the number was dropped from 0.82 to 0.62. It is a one year char with a few year average. Mr. Stempeck added that if this was over four years, it would look different. Mr. Sullivan said that as reported in January, there we approximately one thousand residential meters to be installed. Due to the difficulty moving in the snow, the meter department commercial upgrade process is being done now then the transition in the spring will return to the residential meter upgrade project. Mr. Soli asked about the status of the fixed network Mr. Sullivan responded that there are two collectors to install and the department is currently using the system for billing purposes. M.G.L. Chapter 30B Bid — Mr. Polson (Attachment 4) 2013 -05 CCTV and Access System Mr. Pelson reported that eight bids were sent with three respondents. Mr. Polson explained that the close circuit television is the outside security cameras and access control system which, is the FOB system for the building. This bid is for a three yew contract for maintenance of the system. In July 2012, the RMLD had a lightning strike which damaged six cameras beyond repair as well as one DVR. The security system is eighteen years old, is outdated, has its limitations and has experienced some failures. The project involves replacing the damaged cameras, DVR, and will also bring the RMLD to NERC compliance for Station 4. Mr. Stempeck asked the incumbent did not submit a bid. Mr. Poison responded that GS Security did not bid. Mr. Stempeck commented that Tyco came in at approximately half of Stanley, but failed on the bid security or evidence of insurance, is that unusual. • Mr. Poison said that they have seen this, but now have very detailed discussions in pre bid meetings with vendors that they need to submit the required documentation. Mr. Soli suggested using day glow colored paper to make it stand out within the bid packet because they see it so many times. Mr. Poison said that they will try this. Regular Session Meeting Minutes 5 L February 27, 2013 �Ir M.G.L. Chapter 30B Bid -Mr. Poison (Attachment 4) 2013 -05 CCTV and Access System Chairman Pacino asked what the Department gets for the maintenance aspect of the contract. Mr. Pelson responded that the cost is $4,809.91. Mr. Poison said that the maintenance includes that the cameras are adjusted and cleaned as well as work on the security system if needed. Any repair work will be conducted on an hourly basis. Chairman Pacino expressed his concern on the theft of copper that occurred and was due to the misalignment of a camera. Chairman Pacino said that there is a security program in place and hopes this aligns with that. Mr. Sullivan commented that this effort does that. Mr. Stempeck asked if there is a way to protect these cameras from further lighming strikes. Mr. Poison responded that lightning suppression is a component of this bid. Ms. Snyder made a motion seconded by Mr. Stempeck that Closed Circuit Television (CCTV) and Access System be awarded to Stanley Convergent Security Solutions for $37,181.85 as the lowest qualified and responsive bidder on the recommendation of the Interim General Manager. Motion carried 4:0:0. General Discussion There was none. Account Payable Rotation March - Chairman Pacino BOARD MATERIAL. AVAILABLE BUT NOT DISCUSSED Rate Comparisons, February 2013 E -Mail responses to Account Payable/Payroll Questions RMLD Board Meetines Wednesday, March 27, 2013 and Wednesday, April 24, 2013 Citizens' Advisory Board Meeting Wednesday, March 13, 2013 Citizens' Advise" Board Meeting - Budget Committee Merlins Wednesday, April 3, 2013 and Wednesday, April 10, 2013 Executive Session At 8:29 p.m. Mr. Stempeck made a motion seconded by Ms. Snyder that the Board go into Executive Session to approve the Executive Session meeting minutes of January 30, 2013, to discuss strategy with respect to collective bargaining and arbitration and return to Regular Session for the sole purpose of adjournment. Motion carried by a polling of the Board: Ms. Snyder, Aye; Mr. Stempeck Aye; Chairman Pacino, Aye; and Mr. Soli, Aye. Motion carried 4:0:0. Adjournment At 8:53 p.m. Ms. Snyder made a motion seconded by Mr. Stempeck to adjourn the Regular Session. A true copy of the RMLD Board of Commissioner: minutes as approved by a majority of the Commission. Robert Soli, Secretary Pro Tem ® RMLD Board of Com nissionerS ® READING MUNICIPAL LIGHT DEPARTMENT To: RMLD Board of Commissioners Date: February 22, 2013 From: Kevin Sullivan Subject: Other Post Employment Benefits Update MEMORANDUM In January, the RMLD Board of Commissioners (RMLB) was advised by its auditors, Melanson Heath & Company, P.C., to create an irrevocable trust instrument for the OPEB fund. This provision would remove the liability on RMLD's financial statements, conform more closely with GASB 45 and align with the Town of Reading's future OPEB trust fund. A legal opinion was requested from Rubin and Rudman. Their legal opinion states that upon adoption of Massachusetts General Laws Chapter 32B Section 20, the RMLD Board of Commissioners are not required to create a trust document for investment of funds regardless of where these funds are invested, unless at such time, a custodian other than the Town Treasurer will be appointed for investment purposes. While it remains, that the liability of the financial statements would diminish if the current fund reserve is converted to a trust instrument, the Massachusetts Department of Revenue did not express an opinion to legal counsel on whether creating a trust satisfies the GASB requirements. If the Commissioners of the Board were to create a trust instrument, they would be the trustees of the fund subjecting the Commissioners to the remote possibility of litigation. However, per legal counsel, the responsibility of the funds and any such actions thereof, lies against the custodian of the fund, i.e., the Town Treasurer, and not the Board members, since the Board would not be directing the investment decisions. ATTACHMENT 11 January 4, 2013 Mr. Vincent Cameron General Manager Reading Municipal Light Department 230 Ash Street Reading, Massachusetts 01867 -0250 Dear Mr. Cameron, MF I��Co MELANSON HEATH & COMPANY, PC L.BR I IEIEE, PI: BLK Au RI]I'. \. i MAN aueniESr ADFI',IRI 10 N. E,gLmJ Uv...... Len,n D,h, Sinn- 107 A, L&",. MA 01810 Id (978) 7494YV5 . Pn. (978) 744.E \V6 u nv. melnn.0 mhauth. nnn This letter is in response to our phone conversation earlier today regarding the Department's treatment of the GASB 45 Other Post - Employment Benefits (OPEB) liability. In May 2010 the Light Board of Commissioners accepted Section 20 of MGL Chapter 32B dealing with OPEB. Subsequently, the Commissioners approved setting cash aside to fund the OPEB liability, however, the Department's attorney [ opined that these funds were not considered 'irrevocable" (as required by ♦/ GASB 45) because no formal trust document was established. As a result, the OPEB cash was not reported in a separate fiduciary fund in the Department's financial statements, nor was the OPEB liability reduced to reflect the funding. We understand the Town of Reading recently approved Section 20 of MGL Chapter 32B, and is in process of establishing an irrevocable trust document. We recommend the Department also consider establishing a formal irrevocable trust document for its OPEB. This will result in reducing (or eliminating) the OPEB liability that is currently reflected in the Department's financial statements, and would conform more closely to the intent of GASB 45. This presentation would be more consistent with the Town's treatment and may also be viewed favorably by bond rating agencies. I will be happy to discuss this subject further with you and /or the Board of Commissioners if requested. Sincerely, Frank R. Biron, CPA President 101 E ®RUBINAND RUDMANun Allorneys al Law T. 617.330.7000 F: 617.330.7550 50 Rowe$ Wharf, Boston, MA 02110 Diedre T. Lawrence Direct Dial: 617a30-7056 E -mail: DtewmnmGruainrudman. cem MEMORANDUM BY EMAIL 'ro: Kevin Sullivan, Acting General Manager Reading Municipal Light Department From: Diedre T. Lawrence, Karla Doukas Re: Creation of an Irrevocable OPEB Trust Date: January 24, 2013 We have reviewed the January 4, 2013 letter from Frank Biron, President of Melanson Heath & Company, PC recommending that the Reading Municipal Light Department ( "RMI,D') establish an irrevocable trust instrument governing its Other Post - Employment Benefits ("OPEB") funds. Mr. Biron states that while in 2010 RMLD accepted the OPEB statute (G.L. c. 32B, § 20), because RMLD did not establish a formal trust instrument, RMLD's OPEB cash was not reported in a separate fiduciary fund in RMLD's financial statements. As a result, RMLD's OPF.B liability was not reduced to reflect any such OPEB funding. Based on our research, we conclude that G.L. c. 32B, § 20 does not require municipal light plants to establish a formal trust document to place funds in an OPEB Trust once that statute is accepted by the RMLD Board. Once accepted, an OPEB Trust arises by operation of law, which cannot be rescinded or revoked. Accordingly, a formal trust instrument is not legally necessary to report RMLD's OPEB cash on its financial statements or to reduce RMLD's OPEB liabilities as long as the funds are appropriated and transferred to RMLD's OPEB Trust Fund. I memorandum is being provided to you pursuant to G.L. c. 164, § 56. DISCUSSION As you are aware, G.L. c. 32B, § 20 (as amended in 2011) authorizes cities, towns, and municipal light plants to establish an OPEB Liability Trust Fund and to appropriate amounts to be credited to the fund. For RMLD to establish an OPEB Liability Trust Fund, the statute ® merely requires the RMLD Board of Commissioners to vote to accept the provisions of the 13451181 11 Kevin Sullivan, Acting General Manager January 24, 2013 Page 2 statute. G.L. c. 32B, § 20 (c). By law, the OPEB funds must be held in a segregated fund, which shall be protected from claims of any of RMLD's general creditors. There is no statutory requirement that RMLD execute any formal documents to create the OPF.B Liability Trust Fund. It arises by operation of law. Once RMLD accepts G.L. c. 32B, § 20, its acceptance cannot be rescinded or revoked. See G.L. c. 32B, § 10 ( "[nlotwilhstanding the provisions of any general law to the contrary, neither the acceptance of this chapter nor the acceptance of any individual section thereof by a governmental unit shall be revoked or rescinded "). Accordingly, although RMMLD is not required to appropriate funds (or any particular amount) to its OPEB Trust Liability Fund, once it does so, such funds only may be used for its OPEB liabilities. Tax Counsel for the Massachusetts Department of Revenue ( "DOR "), Division of Local Services ( "DLS ") has confirmed that a "trust document" is not necessary to place funds in an OPEB Trust under G.L. c. 32B, § 20 as long as that statute has been accepted by the appropriate governing body. (See attached email correspondence from Gary Blau, Tax Counsel, on behalf of DOR DLS Law, dated May 18, 2011). Although DOR Tax Counsel also has confirmed that an OPEB Trust cannot be rescinded, Tax Counsel, however, has not expressed an opinion on • whether the creation of the OPEB Trust under G.L. c. 323, § 20 satisfies GASB requirements. (See attached email correspondence from Christopher Hinchey, Tax Counsel, of DOR DLS Law, dated October 5, 2009). From our research, it does not appear that GASB 45 requires a formal written trust document.) In many situations, a formal trust instrument will not be necessary given that OPEB Funds typically are managed and invested by the Town Treasurer. To the extent that RMLD appoints an outside custodian as permitted by G.L. c. 32B, § 20(b), then a trust instrument or custodial agreement may be advisable. Nonetheless, because RMLD is operated independently from the Town of Reading ( "Town "), RMLD does not have to follow the same approach as the Town. Please feel free to contact us if you have any further questions. As we understand, GASB 45 requires the following: (1) the employer contributions to the trust must be irrevocable; (2) the assets must be dedicated to providing benefiu to retirees and their beneficiaries; and (3) the assets must be legally protected from the employer's creditors, See Gmernm erral Accuunling Standard, Boar& Other Paveempinymenr Benefits: A Plain - Language Summury of GASB Sanemems No. 43 and No 45, at pp. 4 -5. These requirements are satisfied through G.L. c. 32B, § 20, which provides for the creation ofan OPEB Liability Trust Fund upon acceptance of the statute by the municipal light board, which cannot be revoked or rescinded. the statute also protects the OPEB Trust Funds from creditor claims, specifying that ^[alll monies heid in the fund shall be segregated from other funds and shall not be subject to the claims of any general creditor ofthe city, town, district, county or municipal lighting plant." Thus, the contributions are irrevocable, dedicated to providing bene0ts • and protected from creditors. 1345118 '. L Employment Benefits Liability Trust Fond at their meeting on April 12, 2011. The balance in this trust is currently $2,118,111.19. I have attached a copy of the law, which states they have the ability to do appoint a new custodian. I am currently the custodian of the fund. My question is how I transfer the funds to the new custodian, tivu the warrant process? If or when 1 transfer the funds, how are the funds recorded on the books of the Town if I no longer have custody? Should 1 require that they show me a bond for the new custodian? I do not believe this law is in the best interest of municipalities. The general manager of the Gas and Electric wants to invest in U.S. Treasuries and I do not agree with him so he has convinced the Gas and Electric Commissioners to appoint him as the custodian. Currently I do the all banking and borrowing for the Gas and Electric department. Are the Gas and Electric commissioners ( they may appoint themselves) or the appointed custodian now allow the have bank accounts with the Towns tax ID number? If you could give me guidance on how to handle this situation I would greatly apprecite it. Thank you in advance for you help. Judy M. Mac Donald Treasurer /Collector Town of Middleborough 20 Centre St. Middleborough, MA 02346 (PH) 508- 946 -2421 Fax 508- 947 -5447 imcdnld @middleboroueh.= Email Response 2011 -589 — Sudbury — OPEB Trust Document From: Blau, Gary on behalf of DOR DLS Law Sent: Wednesday, May 18, 20112:17 PM To: 'Chisholm, Barbara' Subject: 2011.589 - Sudbury - OPEB Trust Document Barbara As we discussed, d do not believe it necessary for the town to draft a "trust document" to place money in an OPEB Trust under M.G.L. c. 32B, §20, if that provision has been accepted by the town. But as we also discussed, it appears that Sudbury did not accept that provision but sought a special act to establish a Post Employment Health Insurance Liability Fund, which was enacted in 2006 as Chapter 72 of that yew. That act may be found at http• / /www malegislature.aov/ Laws/ SessionLaws /Acts/2006 /Chapter72. You may wish to consult with town counsel and the town manager about the scope of the fund and how the fund may be used in future years to cover the town's legal responsibility to pay for its share of retiree health insurance. For example, both the Chapter 32B, §20 OPEB trust and Sudbury's special act require an actuarial study, which will provide a reasoned estimate of the amounts needed to be appropriated to the fund over a reasonable period of time in order to meet the town's future retiree health insurance obligations, and ® 71 E at least in Sudbury's case limit the appropriations that may be made to the amount of the total actuarial liability. Periodic updates to that study will also need to be made to ccount for actual experience and variances in the factors assumed in conducting the study. 1 hope this addresses your concerns. Gary A. Blau, Tax Counsel Bureau of Municipal Finance Law PO Box 9569 Boston, MA 02114 -9569 617- 626 -2400 blau ®dor.state.ma.us This e-mail response is intended to provide general information about the application of municipal tax and finance laws and Department of Revenue policies and procedures. It is not a public written statement, as defined in 830 CMR 62C.3.1, and time not state the official position of the Department on the interpretation of the laws pertaining to local taxes and finance. It should be considered informational only. From: Chisholm, Barbers [maiho:ChisbolmB @sudbury.ms.us] Sent: Wednesday, May 18, 2011 12:00 PM To: DOR DLS Law • Subject: RE: OPEB Trust Document Hello, At our ATM this yew an article was passed to transfer over a million dollars into OPEB Trust. Do we need trust documents or will the language in 32B s.12 satisfy the trust requirement? Thank you, Barbara Barbara Chisholm Town Accountant Town of Sudbury 278 Old Sudbury Road Sudbury, MA 01776 978 -639 -3319 phone 978 - 443- 8450fax chisholmb@rudbury , ma. us 72 • Email Response 2009 - 1278 — Retiree Health Insurance Fund From: Hinchey, Christopher Mon behalf of DOR DLS Law Sent: Monday, October 05, 2009 8:50 AM To: 'GinstiAingstonCoQsol.com' Subject: 2009 -1278 RE: Retiree Health Insurance Fund GL C.3213 §20 (a local acceptance provisions added by C.479 of the Acts of 2008) authorizes the creation by municipalities of tout funds for their OPEB liabilities. Once the provision has been accepted by a municipality, the acceptance cannot be rescinded (see the last sentence of C.3213 810). See also the brief note on C.479 in our Bulletin 2009 -8B "2008 Legislation." I don't know whether the creation of an OPEB fund under C.32B §20 would satisfy the GASS criteria or not. Chris Hinchey Tax Counsel Bureau of Municipal Finance Law PO Box 9569 Boston, MA 021 14 -9569 617- 626 -2400 dlslaw(Wocstate.ma.us This e-mail response is intended to provide general information about the application of IQ municipal tax and finance laws and Department of Revenue policies and procedures. It is not a public written statement, as defined in 830 CMR 62C.3.1, and does not state the official position of the Department on the interpretation of the laws pertaining to local taxes and finance. It should be considered informational only. From: Giustil ingstonCo@aol.00m [mailto:GiustiHingstonCo@aol.com] Sent: Friday, October 02, 2009 9:10 AM To: DOR DLS Law Subject: Retiree Health Insurance Fund Hi Chris, I hope all is well with you. l have a quick question regarding legislation pertaining to an investment vehicle for retiree health insurance funds. Has anything been passed on that (i.e. irrevocable trust). Is anything pending. I have a lot of Towns that want to do some funding. Some are putting it in a separate stabilization fond, but since it is not irrevocable and subject to the Town's creditors it is not considered truly funded by the GASH. Our notes to the financial statements will still show zero funding related to the unfunded liability. As usual, thanks Chris. Take ewe, Dick 40 73 Email Response 2009 -1278— Retiree Health Insurance Fund From: Hinchey, Christopher M on behalf of DOR DLS Law Sent: Monday, October 05, 2009 8:50 AM To: 'GiustiHingstonCo@aol.com' Subject: 2009 -1278 RE: Retiree Health Insurance Fund GL C.32B §20 (a local acceptance provisions added by C.479 of the Acts of 2008) authorizes the creation by municipalities of trust funds for their OPEB liabilities. Once the provision has been accepted by a municipality, the acceptance cannot be rescinded (see the last sentence of C.32B 10 . See also the brief note on C.479 in our bulletin 2009 -8B, "2008 Legislation." I don't know whether the creation of an OPEB fund under C.32B §20 would satisfy the GASB criteria or not. Chris Hinchey Tax Counsel Bureau of Municipal Finance Law PO Box 9569 Boston, MA 02114 -9569 617 - 626.2400 dlslaw(Wor.state.ma.us This e-mail response is intended to provide general information about the application of municipal tax and finance laws and Department of Revenue policies and procedures. It is not a public written statement, as defined in 830 CMR 62C.3.1, and does not state the official position of the Department on the interpretation of the laws pertaining to local taxes and finance. It should be considered informational only. From: GiustiHingstonCo@aol.com [madto:t3iustiOngstonCo®aol.wm] Sent: Friday, October 02, 2009 9:10 AM To: DOR DLS Law Subject: Retiree Health Insurance Fund Hi Chris, I hope all is well with you. I have a quick question regarding legislation pertaining to an investment vehicle for retiree health insurance funds. Has anything been passed on that (i.e. irrevocable trust). Is anything pending. I have a lot of Towns that want to do some funding. Some are putting it in a separate stabilization fund, but since it is not irrevocable and subject to the Town's creditors it is not considered truly funded by the GASB. Our notes to the financial statements will still show zero funding related to the unfunded liability. As usual, thanks Chris. Take care, Dick 73 • READING MUNICIPAL LIGHT DEPARTMENT ® To: RMLD Board of Commissioners Date: February 22, 2013 From: Kevin Sullivan Subject: Federal Energy Regulatory Commission Order 719 MEMORANDUM The RMLD has commercial and industrial customers that participate in a Demand Response program. In its simplest form, the concept of Demand Response is an agreement with an aggregator of retail customers (ARC) that acts as a broker between the customer and the Independent System Operator (ISO) or Regional Transmission Operator (RTO) for load curtailment. The contractual agreement is based upon a customer either interrupting a manufacturing or business process on short notice or deploying generation, thereby reducing the customer's load. The load reduction can be based on a variety of measures (decreasing use of HVAC, lighting, etc.). The customer receives compensation for providing this service. The Demand Response could involve a deficiency in capacity or some other system emergency during periods where the available generating capacity does not meet the requirements of the load to be served in the locale or region. It is also a mechanism that RMLD can utilize to manage peak demand which is directly correlated to capacity and transmission costs. • FERC Order 719 underscores May 31, 2013 as the final day a decision can be rendered to allow aggregators of retail customers to continue to do business within the RMLD's territory. • As a municipality, the Relevant Electric Retail Regulatory Authority (RERRA), or the Board of Commissioners, is the authority required to vote on allowing the ARC's to provide Demand Response to RMLD customers. • The supporting legal opinion provides a detailed explanation of the FERC Order 719 Demand Response issue. Duncan & Allen February 21, 2013 MEMORANDUM TO: Kevin Sullivan, Acting General Manager, RMLD FROM: John P. Coyle RE: Aggregation of Retail Customers for Demand Response Bidding This memorandum summarizes the background and current FERC and ISO New England, Inc. CISO -NE ") rules concerning aggregation of retail customers for demand response bidding. ISO -NE Market Rule 1, Section 111. 13.1.4.9.1 requires an affirmative statement of consent by the RMLD Board by May 31, 2013, to allow continuation of aggregation of RMLD retail customers for purposes of demand bidding into ISO -NE's markets. In the absence of such a statement, aggregators of retail customers ("ARCS ") currently contracting with RMLD retail customers will be required by ISO -NE to "retire" the demand ® resource that includes those customers. I. BACKGROUND In October 2008, the FERC issued a rulemaking (Order No. 719).11 Although Order No. 719 covered many topics involving regional transmission organization -run markets, two elements of it are relevant to this discussion: 1. Order No. 719 required independent system operators ( "ISOs") and regional transmission organizations ( "RTOs ") to allow ARCS to bid "demand resources" into their markets for energy, ancillary services and capacity. Stated simply, a "demand resource" is a customer or group of customers capable of reducing electricity consumption in a pre - agreed amount when called upon by the ISO or RTO administering the relevant market to do so. The formal citation for Order No. 719 is Wholesale Competition in Regions with Organized Markets (Order No. 719), FERC State. & Regs. 131,281 (2008), order on reh'g, Order 719 -A, FERC State. & Regs. 9 31,292 (2009), denying reh g and providing clarification, Order 719 -B, 129 FERC 161,252 (2009) L Duncan & Allen 2- 2. In order to avoid imposing unreasonable burdens on smaller utilities,21 Order No. 719 also required that state regulators and municipal utility governing bodies (called Relevant Electric Retail Regulatory Authorities or "RERRAs" in Order No. 719) were presumed not to have consented to the aggregation of retail customers unless the RERRA affirmatively consented. As the FERC's mandate from Order 719 developed further, through rehearing and compliance filings, FERC clarified that the requirement of RERRA consent did not mean that RERRAs could discriminate in consenting to demand resource aggregation -- i.e., municipal RERRAs could not clear the field of all competition and then occupy the field. Thus, with particular reference to ISO -NE, the FERC held that "If the Retail Regulator does not prohibit aggregation of demand response, an entity, whether a load - serving entity or ARC, cannot be precluded from participation in the markets. RTOs and ISOs may not prohibit participation by one type of aggregator but allow participation by another." ISO New England, Inc., 131 FERC 161,194 at P 28 (2010). ISO - NE currently designates Reading as (1) being a distribution territory that does not permit demand response registration and (2) having demand response customers currently registered.v ISO -NE's final market rule on aggregation of retail customers for is demand bidding provides (Market Rule 1, Section 1I1.13.1.4.9): A Market Participant may not register and, if previously registered, must retire in accordance with Section I1I.13.1.4.9.1, a Real -Time Demand Response Asset, Real - Time Emergency Generation Asset or asset associated with an On -Peak Demand Resource or Seasonal Peak Demand Resource that is comprised of: FERC generally defines a small utility as one that sells fewer than four million megawatt hours of energy in a year, and applies this definition in Order No. 719. See "Distribution Territories That Restrict DR Registration" at http://www.iso- ne.com/supportlasset_info/index.html • Duncan & Allen 4W -3- (b) the customers of Host Utilities that distributed 4 million AM or less in the previous fiscal year, unless the relevant electric retail regulatory authority permits such customers' demand response to be bid into the ISO - administered markets or programs. The ISO -NE market rule further provides (Market Rule 1, Section III.13.1.4.9.1): A Market Participant must retire a previously registered Real -Time Demand Response Asset, Real -Time Emergency Generation Asset or asset associated with an On -Peak Demand Resource or Seasonal Peak Demand Resource that is comprised of customers specified in subsections (a) or (b) of Section 111. 13.1.4.9 no later than 12 months from the date that the ISO receives notice that the relevant electric retail regulatory authority prohibits such customer's demand response to be bid into the ISO - administered markets or programs or May 31, 2013, whichever is later. ® Translating from ISO -NE -speak into reasonably plain English, the market rule (i) requires RERRA consent to demand response aggregation, and (ii) sets two deadlines for termination of existing demand response aggregation arrangements where such consent has not been obtained. The first deadline is May 31, 2013. If RERRA consent has not been obtained by May 31, 2013, an existing aggregation arrangement must be terminated ( "retired "). The second deadline is 12 months from the date on which the RERRA notifies ISO -NE that the RERRA no longer permits aggregation of retail customers. II. PRACTICAL CONSIDERATIONS Demand response aggregation for bidding requires some fairly sophisticated metering and other information infrastructure to ensure that multiple smaller retail loads aggregated to 100 kW or more can and actually do deliver the reduction in consumption that they have contracted to provide? We y Verification is a fairly big deal. Predecessor programs, such as ISO -NE's Day Ahead Load Response Program ( "DALRP") were beset by fraudulent claims for compensation, which were paid with ISO -NE customer funds, because ® footnote cont'd on next page Duncan & Allen -4- understand that some RMLD commercial and industrial customers are currently under contract with EnerNoc or other aggregators of retail customers. Causing the termination of these arrangements may disturb RMLD customers involved in, and profiting from, currently ongoing aggregation arrangements. Under the relevant ISO -NE market rule (quoted above), the RMLD Board can consent to the continuation of these arrangements for the present, and cause their termination on one - year's notice to ISO -NE if it later decides that it has a more beneficial use for contractual demand reduction by the customers involved (and others). In the meantime, RMLD would need to make some substantial investments in infrastructure to support its own demand response aggregation program. Of course, whatever RMLD determines to do with demand response in the future would need to be done on a non - discriminatory basis. On this last point, it should be emphasized that the FERC's non - discrimination requirement extends only to ISO -NE and not to RMLD. Neither ISO -NE nor the FERC has the authority or the jurisdiction to investigate or to challenge whatever criteria the RMLD Board may choose to impose to establish eligibility to be a demand response aggregator with respect to RMLD's retail loads. • III. RECOMMENDATION AND CONCLUSION • For these reasons, the Board may wish to consider affirmatively authorizing the continuation of existing arrangements for aggregation of demand response within the RMLD service area, subject to a reservation of its right under ISO -NE's current market rules to require the termination of those arrangements on one - year's notice. A form of resolution adopting that course and directing the Interim General Manager to communicate the Board's position to ISO -NE accompanies this memorandum. insufficient thought had been given to verification of load reduction before the programs were implemented. See Competitive Energy Services, LLC, 140 FERC ¶ 61,032 (2012). • ® RESOLUTION WHEREAS, the Federal Energy Regulatory Commission, in its Order No. 719, authorized the aggregation of retail customers for purposes of bidding demand response as a resource into markets operated by Regional Transmission Organizations; and WHEREAS, Under FERC's aggregation -of- retail- customer ( "ARC ") regulations (18 C.F.R. § 35.28(g)(1)(i)(A) and (g)(1)(iii)) and the implementing provisions of ISO New England, Inc. ( "ISO -NE ") Market Rule 1 (Market Rule 1, § III. 13.1.4.9(a) and (b)), ISO -NE cannot accept demand response bids from ARCS unless the relevant electric retail regulatory authority ( "RERRA') for RMLD's service area affirmatively permits such bids; and WHEREAS, ISO -NE's Market Rule 1, § Ill. 13.1.4.9.1 requires the retirement of demand resources consisting of aggregated retail customers within the service areas of utilities distributing fewer than four million megawatt hours per year by May 31, 2013, unless the RERRA consents to the continuation of such arrangements; NOW THEREFORE, be it resolved by the RMLD Board of Commissioners as follows: 1. The Reading Municipal Light Department authorizes the aggregation of retail customers for purposes of bidding their demand resource into electricity markets administered by ISO -NE. 2. The Reading Municipal Light Department reserves its right to: (a) aggregate its own customers for purposes of demand bidding into electricity markets administered by ISO -NE; and (b) to require the termination of the aggregation of retail customers within the RMLD service area on twelve month's written notice to ISO -NE. 3. The Interim General Manager is authorized and directed to communicate this resolution to ISO -NE. 11 Ll To: Vincent Cameron From: Energy Services Date: February 21, 2013 Subject: Purchase Power Summary — January, 2013 Energy Services Division (ESD) has completed the Purchase Power Summary for the month of January, 2013 with estimated values for the MMWEC projects and NYPA billing. ENERGY The RMLD's total metered load for the month was 60,727,318 kWh, which is a 2.1% increase from the January, 2012 figures. Table 1 is a breakdown by source of the energy purchases. TABLE 1 ATTACHMENT Amount of Cost of % of Total Total $ $ as a Resource Energy Energy Energy Costs % (kWh) ($/Mwh) Millstone M3 3,713,529 $6.99 6.10% $25,958 0.88% Seabrook 5,897,342 $8.32 9.69% $49,066 1.66% Stonybrook Intermediate 3,503,233 $67.00 5.76% $234,717 7.93% JP Morgan 9.354,800 $58.55 15.37% $547,677 18.50% NestEra 9,502,000 $69.51 15.61% $660,453 22.31% NYPA 1,940,647 $4.92 3.19% $9,548 0.32% ISO Interchange 3,541,386 $59.95 5.82% $212,291 7.17% NEMA Congestion 0 $000 0.00% - $77,791 .2.63% Coop Resales 122,685 $110.90 0.20% $13,606 0.46% MacOuane 9,200,000 $38.41 15.11% $353,349 11.94% Summit Hydro 994,950 $55.61 1.63% $55,332 1,87% Braintree Watson Unit 481,029 $129.32 0.79% $62,208 2.10% Swift River Projects 1,529,467 $99.78 2.51% $152,613 5.16% Constellation Energy 11,048,400 $59.21 18.15% $654,143 22.10% Stonybrook Peaking 37,314 $175.00 0.06% $6,530 0.22% Monthly Total 60,866,782 $48.63 100.00% $2,959,699 100.00% ATTACHMENT Table 2 breaks down the ISO interchange between the DA LMP Settlement and the RT • Net Energy for the month of January, 2013. Table 2 Amount Cost % of Total Resource of Energy of Energy Energy (kWh) ($ /Mwh) ISO DA LMP 6,320,346 85.31 10.38% Settlement RT Net Energy •• - 2,778,961 74.34 4.57% Settlement ISO Interchange 3,541,386 59.95 5.82% (subtotal) independent System Operator Day -Ahead Locational Marginal Price ^ Reel Time Net Energy CAPACITY The RMLD hit a demand of 108,799 kW, which occurred on January 23, at 7 pm. The RMLD's monthly UCAP requirement for January, 2013 was 211,827 kWs. Table 3 shows the sources of capacity that the RMLD utilized to meet its requirements. is Table 3 Source Amount (kWa) Cost ($IkW- month) Total Cost $ %of Total Cost Millstone #3 4,991 51.67 $257,885 16.92% Seabrook 7,742 51.02 $394,997 25,91% Stonybrook Peaking 24,981 1.79 $44,628 2.93% Stonybrook CC 42,925 3.69 $158,202 10.38% NYPA 4,019 3.57 $14,348 0.94% Hydra Quebec 4,584 4.70 $21,550 1.41% Nexlera 60,000 5.50 $330,000 21.65% Braintree Watson Unit 10,520 11.01 $115,836 7.60% ISO -NE Supply Auction 52,065 3.59 $186,771 12.25% Total 211,827 $7.20 $1,524,216 100.00% El Table 4 shows the dollar amounts for energy and capacity per source. Table Cost of %of Amt of Energy Power Resource Energy Capacity Total cost Total Cost (kWh) (SAM) Millstone #3 $25,958 $257,885 $283,643 6.33% 3,713,529 0.0764 Seabrook 549.066 $394,997 $444,063 9.90% 5,897,342 0.0753 Stonybrook Intermediate $234,717 $158,202 $392,919 8.76% 3,503,233 0.1122 Hydro Quebec $0 $21,550 $21,550 0.48% - 0.0000 JP Morgan $547,677 50 $647,677 12.21% 9,354,800 0.0585 NestEm $660,453 $330,000 $990,453 22.09% 9,502,000 0.1042 NYPA $9,548 $14,348 $23,896 0.53% 1.940.647 0.0123 ISO Interchange $212,291 $186,771 $399,062 8.90% 3,541,386 01127 Name Congestion - $77,791 $0 - $77,791 -1.73% - 0.0000 MacOuarie $353,349 $0 $353,349 7.88% 9,200,000 0.0384 "Summit Hydro $55,332 $0 $55,332 1.23% 994,950 0.0556 Braintree Watson Unit $62,208 $115,836 $178,044 3.97% 481,029 0.3701 Swill River Projects $152,613 $0 $152,613 3.40% 1,529,467 0.0998 Coop Resales $13,606 $0 $13,606 0.30% 122,685 0.1109 Constellation Energy 5654,143 $0 5654,143 14.59% 11,048,400 0.0592 Stonybrook Peaking $6,530 $44,628 $51,158 1.14% 37,314 1.3710 Monthly Total $2,959,699 $1,524,216 $4,483,915 100.00% 60,866,782 0.0737 e Renewable Resources 7.34% ® RENEWABLE ENERGY CERTIFICATES (RECs) The RMLD sold 12,613 2012 RECs (Quarter 1 and Quarter 2) for $582,097.75 in January, 2013. 750 Quarter 1 and 2 RECs remain banked for retirement. Table 5 shows the amount of banked and projected RECs for the Swift River Hydro Projects through January, 2013, as well as their estimated market value. Table 5 Swift River RECs Summary Period - January 2012 - January 2013 Banked Projected Total Est. RECs REO RErs Dollars Woronoco 394 1,465 1,859 $67,390 Pepperell 364 0 384 $10,351 Indian River 92 737 829 $39,061 Turners Falls 751 0 751 50 Grand Total 1,621 2,202 3,823 $126,803 TRANSMISSION • The RMLD's total transmission costs for the month of January were $754,966. This is an increase of 2.2% from the December transmission cost of $738,628. In January, 2012 the transmission costs were $638,899. • r Table 6 Current Month Lest Month Last Year Peak Demand (kw) 108,799 108,921 106,558 Energy (kWh) 60,866,782 59,364,911 59,550,250 Energy ($) $2,959,699 $2,868,713 $3,338,331 capacity ($) $1,524,216 $1,528,363 $1,337,348 Transmission ($) $754,966 $738,628 $638,899 Total $5,238,881 $5,135,703 $5,314,578 • r 2/22/2013 8:09 AM READING MUNICIPAL LIGHT DEPARTMENT FY 13 CAPITAL BUDGET VARIANCE REPORT FOR PERIOD ENDING JANUARY 31, 2013 N PROJECT DESCRIPTION E &O Construclion4tystem Projects 1 Essex Street - Reconductorrig 2 4W13 OH Reconductoring - West Street 3 Upgrading of Old Lynn0eld Center URDs (Partial CARRYOVER) 5 Shady Lane Area - Reconductoring 6 Federal Street - Recunductoring Station Upgrades SNOW k4 8 Relay Replacement Project - (Partial CARRYOVER) 9 Station 4 Getaway Replacement -4W13 Total System Projects R R Total Station Projects ACTUAL YTD ACTUAL ANNUAL Station 5 RTU (Remote Terminal Unit) Replacement W COST COST BUDGET REMAINING TOWN JANUARY THRU 1131113 AMOUNT BALANCE LC Service Installations- Commercial /Industrial Customers 200 197,855 197,655 W 1,594 14,289 168,193 173,904 LC 133 121,288 492,143 370,855 W 31,192 64,724 199,042 134,318 W 56,657 57,520 175,565 118,045 Total System Projects R R Total Station Projects Total Construction Projects Other Proiects 15 GIS 16 Transfarmers /Capacitors Annual Purchases 17A Meter Annual Purchases 17B Meter Upgrade Project - (Partial CARRYOVER) 17C Meter Upgrade Project - Commercials 18 Purchase Vehicles 19 Purchase Line Department Vehicles 20 Purchase New Pole Dolly 21 Automated Building Systems 22 Engineering Analysis software& data conversion - (CARRYOVER) 23 Gaw Station Generator 24 Capital Repairs - Station One 25 New Carpeting 26 Water Heater Demand Response Technology 27 Hardware Upgrades 28 Software and Licensing Total Other Projects TOTAL FY 13 CAPITAL PROJECT UPENDITURES 119,309 119,309 4,430 161,779 157,349 56,163 56,163 30,155 148,888 80,653 (68,235) 6,574 63,074 56,500 26,769 135,404 207,923 72,519 102,507 SCADA Protects 1,131,723 10 Station 5 RTU (Remote Terminal Unit) Replacement W 4 Station 4 RTU (Remote Terminal Unit) Replacement (Partial CARRYOVER) R 3,732,480 Total SCADA Projects 2,690,936 1,686,041 New Customer Service Connections 1,241,870 12 Service Installations- Commercial /Industrial Customers ALL 13 Service Installations- Residential Customers ALL Total Service Connections 97,495 14 Routine Construction 246,334 Various Routine Contruction ALL Total Construction Projects Other Proiects 15 GIS 16 Transfarmers /Capacitors Annual Purchases 17A Meter Annual Purchases 17B Meter Upgrade Project - (Partial CARRYOVER) 17C Meter Upgrade Project - Commercials 18 Purchase Vehicles 19 Purchase Line Department Vehicles 20 Purchase New Pole Dolly 21 Automated Building Systems 22 Engineering Analysis software& data conversion - (CARRYOVER) 23 Gaw Station Generator 24 Capital Repairs - Station One 25 New Carpeting 26 Water Heater Demand Response Technology 27 Hardware Upgrades 28 Software and Licensing Total Other Projects TOTAL FY 13 CAPITAL PROJECT UPENDITURES 119,309 119,309 4,430 161,779 157,349 56,163 56,163 30,155 148,888 80,653 (68,235) 6,574 63,074 56,500 26,769 135,404 207,923 72,519 102,507 2,047,439 1,131,723 988,211 (143,512) 718,890 3,732,480 249,007 2,690,936 1,686,041 2,929,910 1,241,870 10,610 56,821 97,495 40.674 103,410 246,334 284,000 37,666 54,141 49,710 (4,431) 30,845 463,927 564,416 100,486 298,198 417,069 551,853 134,784 65,000 65,000 474,861 570,000 95,139 12,000 12,000 150,000 150,000 76,789 76,789 55,000 55,000 400,000 400,000 35,000 35,000 190,614 336,611 145,997 12,308 64,357 126,629 62,272 14.512 79.315 119.002 39.687 469,883 2,047,439 3,493,606 1,446,066 718,890 3,732,480 6,423,416 2,690,936 A71FACHMENT3 Reading Municipal Light Department Engineering and Operations r" Monthly Report January 2013 `J FY 2013 Capital Plan E &O Construction - System Proiects 1 Reconductoring of Essex Street, Lynnfield Center - No Activity. 2 4W13 Off Reconductoring Project, West Street, Wilmington - Engineering Labor. 3 Upgrading of Old Lynnfield Center URDs - (Phase 1 Completed). Engineering Labor: work on specifications for Phase 2. 5 Shady Lane Drive Area, Wilmington - Reconductoring - Line Department: Continued make -ready work. Installed poles, and primary and secondary cable. Energized new secondaries. 6 Federal Street, Wilmington - Reconductoring - Line Department: Pole framing and wiring for reconductoring. Engineering Labor. Station Upgrades 8 Station 4 Relay Replacement Project - Reading - No Activity. 9 Station 4 Getaway Replacement - 4W13 -No Activity. SCADA Proiects 10 Station 5 RTU Replacement, Wilmington - No Activity. 4 Station 4 RTU Replacement - Engineering and Senior Tech labor. New Customer Service Connections 12 Service Installations - Commercial/Industrial Customers - This item includes new service connections, upgrades, and service replacements for the commercial and industrial customers. This represents the time and materials associated with the replacement of an existing or installation of a new overhead service, the connection of an underground service, etc. This does not include the time and materials associated with pole replacements/installations, transformer replacements /installations, primary or secondary cable replacements/installations, etc. This portion of the project comes under routine construction. No Activity. February 22, 2013 {, 13 Service Installations — Residential Customers — This item includes new or iir upgraded overhead and underground services, temporary overhead services, and large underground development. u Routine Construction: 14 Routine Construction —The drivers of the Routine Construction budget category YTD are listed. This is not an inclusive list of all items within this category. Pole Setting/Transters $242,937 Maintenance OverheadNnderground $232,254 Projects Assigned as Required $206,426 Pole Damage (includes knockdowns) some reimbursable $64,446 Station Group $14,199 Ha2mat/Ofl Spills $0 Porcelain Cutout Replacement Program $0 Lighting (Street Light Connections) $17,292 Storm Trouble $132,037 Underground Subdivisions $43,848 Animal Guard Installation $31,440 Miscellaneous Capital Costs $146,843 TOTAL $1,131,723 *in the month of January, zero (0) cutouts were charged under this program. Approximately 17 cutouts were installed new or replaced because of damage making a total of 17 cutouts replaced this month. February 22, 2013 U 101 Reliability Report Two key industry standard metrics have been identified to enable the RMLD to measure and track system reliability. A rolling 12 -month view is being used for the purposes of this report. Customer Average Interruption Duration Index ( CAIDI) measures how quickly the RMLD restores power to customers when their power goes out. CAIDI = Total of Customer Interruption Duration for the Month in Minutes s Total Number of Customers Interrupted. RMLD 12 -month system average outage duration: 62.31 minutes RMLD four -year average outage (2006- 2009): 50.98 minutes per outage On average, RMLD customers that experience an outage are restored in 62.31 minutes February 22, 2013 3 H System Average Interruption Frequency (SAIFI) — Measures how many outages each customer experiences per year on average. SAIFI = Total Number of Customers Interrupted + Total Number of Customers RMLD 12 -month system average: 0.31 outages per year RMLD four -year average outage frequency: 0.62 The graph below tracks the month -by -month SAIFI performance. Months Between Interruptions (MBTI) Another view of the SAIFI data is the number of months RMLD customers have no interruptions. At this time, the average RMLD customer experiences an outage approximately every 38.7 months. February 22, 2013 4 RM LD CoRdi— Man, ipd Light Depxrtmcnr •eiuux rbv roa eea unnoes 270 Ash 30 P.O. Box 1 1 re Reading, MAO 1867-0230 Tel:(781)944 -1340 In: (791) 942 -2409 Web: ..dd. m February 14, 2013 Town of Reading Municipal Light Board Subject Closed Circuit television (CCTV) and Access System On January 2, 2013 a bid invitation was placed as a legal notice in the Reading Chronicle, Lynnfield Villager, North Reading Transcript and Wilmington Town Crier requesting proposals for Closed Circuit Television (CCTV) and Access System for the Reading Municipal Light Department An invitation to bid was sent to the following 8 companies: CGL Electronic Security First Alarm LLC GS Security Systems Redhawk Siemens Building Stanley Convergent Security Technologies Solutions Surveillance Specialties, Ltd. Team AVS, Inc. ® Bids were received from 3 companies; Mercier Electric & Communications, Inc., Stanley Convergent Security Solutions and Tyco. The bids were publicly opened and read aloud at 11:00 a.m. February 7, 2013 in the Town of Reading Municipal Light Department's Audio Visual Spurr Room, 230 Ash Street, Reading, Massachusetts. The bids were reviewed, analyzed and evaluated by the Interim General Manager and the staff. Move that bid 2013 -05 for: Closed Circuit Television (CCTV) and Access System be awarded to: Stanley Convergent Security Solutions for $37,181.85 as the lowest qualified and responsive bidder on the recommendation of the Interim General Manager. The equipment and installation costs will be charged as follows: The Capital Budget Account for Miscellaneous Equipment $22,752.12 for Fiscal Year 2013. The Operating Budget Accounts for Security Cameras Maintenance and Card Key System /Security System $4,809.91 for Fiscal Years 2013, 2014 and 2015. (This is a 3 -Year contract.) r K a SS an David Poison f -' •Paula O'[xary, ATTACHMENT a !| 7 ¥ a /| ■ J } \kk § | 6 \ ) , ! ! \§ \ ! ) ! !! )k \ # } \ fk § , 72 \ {! )a ))2 / \ UP =,4: ,,• |�| IN - -- |�i |;� |•!! ;•|•!| - | - �( , § %� \§ \§ \� § \§ \§ \§ \ § )�§ �§ ( � /� • -, � | || V7 Jeanne Foti 3m: Jeanne Foti sent: Tuesday, January 29, 2013 7:05 AM To: Accounting Group Cc. Kevin Sullivan; Patricia Melling Subject: Payroll - Monday, January 28 Tracking: Recipient Accounting Group Kevin Sullivan Patricia Mellino bfournier @RMLD.com skazanjian @RMLD.com wmarkiewirz @RMLD.com Wendy Markiewicz Good morning. There were no Payroll questions for Monday, January 28. Thanks. Jeanne Foti Reading Municipal Light Department Executive Assistant 230 Ash Street Reading, MA 01867 781- 942 -6434 Phone 781- 942 -2409 Fax Please consider the environment before printing this e-mail. NA Delivery Read Delivered: 1/29 /2013 7.05 AM Delivered: 1/39 /2013 7.05 AM Delivered: 1/29 /2013 7:05 AM Delivered: 1/2912013 7:05 AM Delivered: 1/2912013 7:05 AM Read: 1/29/2013 7'28 AM Read: 1/29/2013 7:46 AM Jeanne Foti From: Kevin Sullivan Sent: Tuesday, January 29, 2013 10:57 AM To: RMLD Board Members Group Cc: Accounting Group; Jeanne Foti; Patricia Mellino Subject: FW: Account Payable Questions - January 25 Below are the answers to the AIP questions for last week. '?(Fran Su[fivan Engineering and Operations Manager Reading Municipal Light Department 781 942 -6407 office From: Jeanne Foti Sent: Monday, January 28, 2013 8:32 AM To: Kevin Sullivan Subject: Account Payable Questions - January 25 Snyder 1. Cushing lamallo - Why is Invoice so late? The invoice was received on 1/10/13. It's dated 12/7/12. What was the outcome of the testing? The outcome of the testing was non -PCB oil. Would it be cost effective to screen transformers for PCB so as to know which have PCB's + replace + save much of this cost? The RMLD believes all PCB filled transformers have been removed from the distribution system. To test a distribution transformer for PCB content would require: taking an outage and having a Haz -Mat representative present to perform the test. Mass Communications- How many customers receive this+ how many are on a -pay- Do the a -pay customers receive some sort of notice? What's the "return" on this? Is it cost effective? (e.g., much greater than $1,160?) Mass Communications (MCI) is RMLD's bulk mailer for all its monthly bills except for the 2,600 paperless customers to date. As discussed at the 4125/12 meeting RMLD will realize cost savings between $5,000 to S 10,000 annually conservatively. MCI is not involved with a -pay customers. 3. SJ Services -Why invoice paid so late? From November 2012? The 3 invoices were originally received by RMLD on 12/17 after we made several requests. The invoices were review on 12/18 and some errors were identified, the vendor was contacted on 12/18, 12/19, 12/20 and 1/8. The revised invoices were resubmitted on 1/11 by SJ Services. The delay was with SJ Services not RMLD. The outside door to GM conference room has a gap the bottom +cold air is whistling in - please at a minimum get something to block that air leak. We will install some type of door sweep or weather stripping to reduce • air infiltration. Thank you. `kanne Foci Reading Municipal Light Department Executive Assistant 230 Ash Street Reading, MA 01867 781 -942 -6434 Phone 781- 942 -2409 Fax Please consider the environment before printing this e-mail. A Jeanne Foti From: Kevin Sullivan • Sent: Wednesday, January 30, 2013 3:26 PM To: Gina Snyder Cc: RMLD Board Members Group; Accounting Group; Jeanne Foti; Patricia Mellino Subject: RE: FW: Account Payable Questions - January 25 Gina; As per the last email, please see below. &-Nn Ju7ran Engineering and Operations Manager Reading Municipal Light Department 781 942 -6407 office From: Boor Gina fmailto: bocina03aearthlink net) Sent: Tuesday, January 29, 2013 1:10 PM To: Kevin Sullivan Cc: RMLD Board Members Group; Accounting Group; Jeanne Foti; Patricia Mellino Subject: Re: FW: Account Payable Questions - January 25 Hi Kevin, A couple follow up clarification questions: On the PCB transformers, I'm a little confused, if they don't have PCBs why were they testing for PCBs and spending hours reviewing TSCA regulations? Conferring with the RMLD's LSP, I have been told it is standard practice to test for PCBs as an assurance in the matter. The reporting aspect to MADEP is directly influenced by a PCB /Non -PCB situation. However, the LSP does not spend hours reviewing TSCA regulations. On the Mass Communications, it looked like we were paying for printing the good neighbor energy fund envelopes to be included in the bills .... if that's not what the charge was, I suppose I would still have a question as to whether we pay to print those envelops and if the return is cost effective; and how do the a -pay customers get the solicitation (and if so, it would be good to know how they would donate if they don't get an envelop - through the RMLD pay site ?) MCI stuffs the GNEF envelopes with the bills and there is a charge for that as specified in the contract. GNEF is an activity that the RMLD supports. In February, RMLD will include an extra paragraph on the a -bill notice paperless customers receive to inform them of the GNEF and how they can contribute towards it. Thank you, Gina On 1/29/2013 10:56 AM, Kevin Sullivan wrote: Below are the answers to the A/P questions for last week ke, rrr .l of r urr Engineering and Operations Manager Reading Municipal Light Department 781 942 -6407 office Jeanne Foti Irom: Kevin Sullivan went: Friday, February 01, 2013 2:52 PM To: Gina Snyder Cc: RMLD Board Members Group; Accounting Group; Jeanne Foti; Patricia Mellino Subject: RE: FW: Account Payable Questions - January 25 Gina; Per our discussion prior to Wednesday night's board meeting, mea culpa. The LSP had spent hours reviewing TSCA regs. I made the LSP aware of the situation yesterday. This afternoon, I spoke to the LSP relative to the time spent (7 hrs.) reviewing the TSCA regulations. Two things came out of this conversation: 1. The LSP responded that the TSCA regulations are quite comprehensive requiring considerable review. In addition he reminded me that initially, the thought was PCB oil had spilled from the transformers due to the age of the transformers and the on site false positive received from the test kit. Upon further review (lab tests), we now know the oil was straight mineral oil. Before the lab lest, the LSP was preparing for a filing to MADEP and EPA consisting of TSCA regulations. 2. In addition, the LSP reviewed the invoice and determined there had been a billing error. While we had been billed for 7 hours, the discussion between the two principals was that the RMLD should be billed for 2 hours. Hence, a billing error exists on the invoice. The LSP offered a credit of 5 hours and I agreed. Thank you for providing thoughtful input into the situation. enin,tiu�rwn gineering and Operations Manager Reading Municipal Light Department 781 942 -6407 office From: Kevin Sullivan Sent: Wednesday, January 30, 2013 3:26 PM To: Gina Snyder Cc: RMLD Board Members Group; Accounting Group; Jeanne Foti; Patricia Mellino Subject: RE: FW: Account Payable Questions - January 25 Gina; As per the last email, please see below . kel in Sun run Engineering and Operations Manager Reading Municipal Light Department 781 942 -6407 office From: Boor Gina [mailto:bogina03 @earthlink.netj gc: rit: Tuesday, January 29, 2013 1:10 PM Kevin Sullivan RMLD Board Members Group; Accounting Group; Jeanne Foti; Patricia Mellino Subject: Re: FW: Account Payable Questions - January 25 Hi Kevin, A couple follow up clarification questions: On the PCB transformers, I'm a little confused, if they don't have PCBs why were they testing for PCBs and spending hours reviewing TSCA regulations? Conferring with the RMLO's LSP, I have been told it is standard practice to test for PCBs as an assurance in the matter. The reporting aspect to MADEP is directly influenced by a PCB /Non -PCB situation. However, the LSP does not spend hours reviewing TSCA regulations. On the Mass Communications, it looked like we were paying for printing the good neighbor energy fund envelopes to be included in the bills .... if that's not what the charge was, I suppose I would still have a question as to whether we pay to print those envelops and if the return is cost effective; and how do the a -pay customers get the solicitation land if so, it would be good to know how they would donate if they don't get an envelop - through the RMLD pay site ?) MCI stuffs the GNEF envelopes with the bills and there is a charge for that as specified in the contract. GNEF is an activity that the RMLD supports. In February, RMLD will include an extra paragraph on the a -bill notice paperless customers receive to inform them of the GNEF and how they can contribute towards it. Thank you, Gina On 1/29/2013 10:56 AM, Kevin Sullivan wrote: Below are the answers to the A/P questions for last week. 1(min-Sumcaa Engineering and Operations Manager Reading Municipal Light Department 781 942 -6407 office • From: Jeanne Foti - -- - - Sent: Monday, January 28, 2013 8:32 AM To: Kevin Sullivan Subject: Account Payable Questions - January 25 Snyder 1. Cushing lamallo -Why is invoice so late? The invoice was received on 1/10/13. It's dated 12/7/12. What was the outcome of the testing? The outCOrlle of the testing Was non - PCB Oil. Would it be cost effective to screen transformers for PCB so as to know which have PCB's + replace+ save much of this cost? The RMLD believes all PCB filled transformers have been removed from the distribution system. To test a distribution transformer for PCB content would require: taking an outage and having a Haz -Mat representative present to perform the test. Mass Communications - How many customers receive this + how many are on a -pay- Do the e- pay customers receive some sort of notice? What's the "return" on this? Is it cost effective? (e.g., much greater than 51,160 ?) Mass ('onununicalilms (\I( 1) is R \ILD . bulk inane, lit, all its monlhlJ hills except tin the ".600 p:gtcrlcss • eustanlers w dale. \s discussed at tic 4 ?i 12 meeting- R %11 1) x% ill re.diie eusl sa% invs hcle Coil )i,l110Io ti 10.000 annualh. con,cl' %llh \ely. MCI is not in, ol \ell %%till c -p;n Cu5a111101. 3. SJ Services— Why invoice paid so late? From November 2012? The 3 invoices were originally received by RMLD on 12/17 after we made several requests. The invoices were review on 12/18 and some errors were identified, the vendor was contacted on 12/18, 12/19, 12/20 and 1/8. The revised invoices were resubmitted on 1111 by SJ Services. The delay was with SJ Services not RMLD. The outside door to GM conference room has a gap the bottom + cold air is whistling in — please at a minimum get something to block that air leak. We will install some type of door sweep or weather stripping to reduce air infiltration. Thank you. Jeanne Foti Reading Municipal Light Department Executive Assistant 230 Ash Street Reading, MA 01867 781 -942 -6434 Phone 781 - 942 -2409 Fax Please consider the environment before printing this e-mail. E Jeanne Foti From Kevin Sullivan • Sent: Monday, February 04, 2013 2:29 PM To: Accounting Group; RMLD Board Members Group Cc: Jeanne Foti; Patricia Mellino Subject: FW: Account Payable Warrant - February 1, 2013 Gina, Please see my responses below. Kmn Sua'van Engineering and Operations Manager Reading Municipal Light Department 781 942 -8407 office From: Jeanne Fold Sent: Monday, February 04, 2013 8:10 AM To: Kevin Sullivan Subject: Account Payable Warrant - February 1, 2013 Snyder 1. APPA, Barbas, BSE, LLi, MBCR, NEPPA, PURMA, Secretary of State — Please remind all that P.O.'s should be entered prior to work/invoice. The Department will become better at producing the PO ahead of receiving the associated invoice. The only invoice received that this scenario could not be accomplished for, is the snow removal invoice from the Barbas rental property 2. MBCR - What is the discrepancy on this one? Payment and invoicing process crossing in the mail. 3. National Grid- Are the dates (February 2012 +2/15/2012) typos? Yes. Typos with the annual change. Jeanne Foti Reading Municipal Light Department Executive Assistant 230 Ash Street Reading, MA 01867 781 - 942 -6434 Phone Aft 781 - 942 -2409 Fax Please consider the environment before printing this e-mail. Jeanne Foti om: Jeanne Foti Sent Monday, February 11, 2013 8:38 AM To: Accounting Group Cr Kevin Sullivan; Patricia Mellino Subject: Account Payable Warrant - February 8, 2013 Good morning, There were no Account Payable Warrant - February 8, 2013. Thanks. Jeanne Foti Reading Municipal Light Department Executive Assistant 230 Ash Street Reading, MA 01867 781- 942 -6434 Phone 1- 942 -2409 Fax ease consider the environment before printing this e-mail. C Jeanne Foti From Kevin Sullivan • Sent: Monday, February 11, 2013 5:11 PM To: John Stempeck Cc: Jeanne Foil Subject: RE: Overtime Analysis - Explanation Sheet John; It is typical. Actually, depending upon how the storm falls (same or different work week), the overtime amount will be more. Case in point is Hurricane Sandy 2012 and October Snowstorm 2011. Each had over three days restoration, whereas the Blivard was really a 24 hour storm +. '"2in,Sumrun Engineering and Operations Manager Reading Municipal Light Department 781 942 -6407 office From: John Stempeck rmailto•John(davalonassoaates com] Sent: Monday, February 11, 2013 5:05 PM To: Jeanne Fob Cc: Kevin Sullivan Subject: RE: Overtime Analysis - Explanation Sheet Thank you Jeanne. I was going to ask Kevin about this, as 1 assumed that there would be significant • overtime due to the storm. It seemed a little higher than usual (25% vs 15 %). Kevin, is this typical of previous major storms, Sandy, Irene, etc.? John Stempeck From: Jeanne Foti [mailto:ifoti(&RMLD.com] Sent: Monday, February 11, 2013 4:40 PM To: John Stempeck Cc: Kevin Sullivan Subject: Overtime Analysis - Explanation Sheet Good afternoon John. Thanks for coming in to sign the Payroll. Attached is the Overtime Explanation Sheet that was not on the table when you came in. This has been reviewed by Kevin Sullivan. Jeanne Foti Reading Municipal Light Department Executive Assistant 230 Ash Street Reading, MA 01867 Jeanne Foti From: Jeanne Foti ;ent: Wednesday, February 20, 2013 9:14 AM To: Accounting Group Cc: Kevin Sullivan; Patricia Mellino Subject: Account Payable Warrant - February 15 Good morning. There were no questions for the Account Payable Warrant — February 15. Thanks, Jeanne Foti Reading Municipal Light Department Executive Assistant 230 Ash Street Reading, MA 01867 781- 942 -6434 Phone 781- 942 -2409 Fax `ease consider the environment before printing this e-mail. G