Loading...
HomeMy WebLinkAbout2015-10-20 RMLD Board of Commissioners General Manager Committee MinutesCiµ OFq� Town of Reading F Meeting Minutes RECEIVED a°'•, a.r°� READINCLERK N MASS. Board - committee - Commission - Council: 1�1` NI�IlB1Vp 77 AA RMLD Board of Commissioners Gen &i691ittee Date: 2015-10-20 Time: 7:30 PM Building: Reading Municipal Light Building Address: 230 Ash Street Purpose: Regular Meetintg Attendees: Members - Present: Location: General Managers Conference Room Session: Open Session Version: Chairman O'Rourke, Messrs. Pacino and Stempeck Members - Not Present: Others Present: Mr. Talbot, Mses. O'Brien and Foti Minutes Respectfully Submitted By: Thomas O'Rourke, Chairman Topics of Discussion: Call Meeting to Order Chairman O'Rourke called the meeting to order at 7:52 pm. The items which will be discussed include documentation for performance for the past year, a special write up on extraordinary savings for the RMI -D and a review form. In addition to the committee, Chairman O'Rourke would like to receive feedback from each of the commission members to complete the process. Chairman O'Rourke asked Ms. Fod if this will go before the full Board at the October 29 meeting. Ms. Foti replied that Ms. O'Brien will not attend that meeting, was unsure if the Board would like her to be present when voting. Chairman O'Rourke asked if past practice was that the General Manager was present. Ms. Fob replied, yes. Chairman O'Rourke said that the choices are that after the meeting this evening, if not October than it would be December to make any salary increases retroactive to July. Ms. Foti stated that is how It was handled last year. On another matter, Mr. pacing asked when the policies would be back with the changes that were Just made tonight, that he did not want to sit on them for a long period. Ms. Foti replied that perhaps a committee meeting can be set up for the second week in November or firm up a meeting date at the next Board meeting. Review of General Manager Chairman O'Rourke said that there were three issues: the performance feedback, to determine where Ms. O'Brien's agreement allows her to receive a company vehicle, and a suggestion to make a change in her employment agreement regarding the vehicle. Ms. O'Brien stated that the issue is not the money, if she wants to watch her daughter play volleyball after work she needs go home to get her personal vehicle which happens on a regular occurrence. Even though the contract states that she only uses the vehicle for business, if your company vehicle is seen over at Market Basket you know that someone is going to call. Ms. O'Brien stated that most of the other managers that she sees at conferences have personal use of their municipal vehicle. She did however, find it was interesting that no one had told her that her company vehicle was a lease although she was provided information on the three dollars a day rule. Page 1 1 Review of General Manager Chairman O'Rourke asked what the charge back was and said that he would argue that it is mostly the compensat'ro� because it was roughly a $9,000 lease value. Ms. O'Brien said that after that happened she asked the Facilitie7c epartment to give her the oldest vehicle that they had. Chairman O'Rourke asked how it was that the taxes were figured. Ms. O'Brien replied the lease value. Mr. Pacino said that the D�oase value of three dollars a day is an IRS rule. Ms. O'Brien stated that it was not three dollars a day, it Is a lease varue based on the value of the car. Ms. O'Brien said that at her last employment for the last eighteen years it was at three dollars a day rule that applied to her municipal vehicle. Chairman O'Rourke reported that in the General Manager's contract it says, "In addition during the terms of the Agreement, Employee shall be entitled to, and RMLD shall provide for her use of an automobile, the make, model and year to be determined by RMLD, if such automobile will be a four-wheel drive vehicle. The RMLD shall be responsible for the maintenance and repairs of said vehicle and all operating expenses and insurance thereof. Said vehicle shall be for the exclusive use of Employee and used for RMLD business only including commuting; provided, however, automobile may be used by Employee for reasonable, non -business purposes and shall be operated in accordance with RMLD policies, if any". Chairman O'Rourke said that it sounds like the classic company or that would be provided. Ms. O'Brien stated that the language says you can't use it and then it says you can use it, but generally from a perception standpoint you cannot be sitting at,Market Basket after work. Chairman O'Rourke said that his thought is that reasonable nonbusiness use purposesis a big envelope, what they are saying is it is not a car for 24/7 driving, Mr. Pacino reported that there was an instance where an employee had driven his mother to the bank in a company or andthe caller wanted to know why they were using a company vehicle. Chairman O'Rourke stated that fpr the ease of administration that he Is in favor of recommending to convert to a car allowance and then modify the employmentagreement. Chairman O'Rourke asked Ms. Foti if she thought that there was a problem doing that. Ms. Foti replied that the problem these days is that you could be legitimately going to the Market Basket for sor0ething in 'a Company vehicle that is work related, then someone pulls out their cell phone and posts the picture on the compyter. Ms. Foti said that she could be getting food for a storm using a company vehicle at Market Basket. Mr. Stempetk asked if the former General Manager was charged similarly and any exceptions on use. Ms. O'Brien said that he did. Mr. Stempeck asked Ms. O'Brien if she wopld prefer the car allowance. Ms. Fob said that would free up a pompany vehicle for in house use. Ms. O'Brienveplied that she just wants to be able to leave work to attend a game or other events. Chairman O'Rourke said that it seemed to him that it is all upside down and that the car allowance seems like the easiest, there is no maintenance, one less vehicle and it is not an asset. Chairman O'Rourke asked Ms. O'Brien if she was aware of other towns where they use the or allowance where that would be good benchmark data. Ms. O'Brien replied that she was trying to get a hold of the Town Manager in Danvers, believed that it was a stipend but was not sure, whereas others pay by the mile. Chairman O'Rourke stated that a Rat car allowance would probably be appropriate. Chairman O'Rourke said that the primary motivator is that this is a contractual benefit that is not a benefit. The solution should either be a car allowance or provide something other. Mr. Pacino asked why they do not just charge three dollars per day for her company vehicle. Ms. O'Brien replied it is due to her salary, if you make over $140,000 per year you are subject to the lease value plus gas instead of the three dollars a day. She was provided the three dollars a day calculator sheet by accounting that is what she was filling out. Mr. Pacino stated that it is based upon the value of the car, that there is a table that the IRS puts out where you can see what the value of that car is. The idea would be if you have a log to say what amount was business and what amount was personal then they are supposed to charge you the personal percentage of that $9,000. Chairman O'Rourke stated that the contract does not say business only; you take one hundred percent as the total mileage, if you can use it for business plus reasonable. Mr. Pacino said that he was talking about IRS rules you cannot say that a contract trumps the IRS. Page 1 2 Review of General Manager Chairman O'Rourke asked if the IRS precludes one from getting a car allowance. Mr. Pacino replied, no it does not. Chairman O'Rourke asked then why would you not use a car allowance. Mr. Pacino replied that it could be a car allowance or just additional pay. Mr. Stempeck stated that he would still suggest to give the Board the flexibility to put into the contractual agreement an appropriate car allowance as this will give the flexibility to do either one. Chairman O'Rourke said that they should find out what other precedent there is so we can check with Danvers. Mr. Talbot said that if your company vehicle was parked at the supermarket it is reasonable use. Ms. O'Brien stated that she does not take it anywhere, instead she goes home and gets her vehicle. Ms. O'Brien said that she can see Mr. Talbots point as well. Ms. Foti stated that other General Managers do not have logos on their vehicles, but do have the state plates. Chairman O'Rourke said that we have an agreement that calls for use of a company vehicle that is a benefit and asked if Mr. Pacino could check into this. Mr. Pacino said that the idea is that this is supposed to be a benefit, Mr. Stempeck is right that we need to look at the way the contract is written. Ms. O'Brien asked for clarification on the first sentence again, it is confusing. Chairman O'Rourke replied that it says, "In addition during the terms of the Agreement, Employee shall be entitled to, and WILD shall provide for her use of an automobile, the make, model and year to be determined by RMLD, if such automobile will be a four- wheel drive vehicle. The WILD shall be responsible for the maintenance and repairs of said vehicle and all operating expenses and insurance thereof. Said vehicle shall be for the exclusive use of Employee and used for RMLD business only including commuting; provided, however, automobile may be used by Employee for reasonable, non -business purpose; and shall be operated in accordance with RMLD policies, if any". Chairman O'Rourke said that it sounds like the classic company car that would be provided. Chairman O'Rourke said that the action Item Is that Ms. O'Brien will report back to him and he will follow up with the Board. Chairman O'Rourke reported that the next step is to take out the score sheet and provide some feedback on Ms. O'Brien in the other recommendation section based on the template that was updated last year. Chairman O'Rourke stated that the cover sheet is correct but on page three the most you can score on Energy Efficiency and Load Management is now fifteen not twenty as it was before, Leadership was changed to twenty instead of ten, and Board relations is now five. Chairman O'Rourke stated that in addition to the form Ms. O'Brien included a very detailed self-assessment and a separate cost savings sheet. Chairman O'Rourke reported that he had scored Ms. O'Brien nineteen out of twenty, in finance, noteworthy; the recast of the finances to Incorporate the budget to actuals and the unbundling structure, no outstanding findings. Chairman O'Rourke said that one thing which he tries to do when doing performance reviews is improvement opportunity in the terms of maybe a little more visibility; number seven the call for creating a plan to show RMLD will meet or exceed budget return by four to eight percent, we easily made that by what he can see, but suggested that there should be more visibility to that at the meetings. Chairman O'Rourke commented that Ms. O'Brien does a good job each month showing the Board how the RMLD is doing but maybe more casting it or providing an update. Ms. O'Brien responded that we have it in a six year plan and then every month when Mr. Fournier reports he tells you where we are on the return. Chairman O'Rourke reported on Energy Efficiency the score was fourteen out of fifteen -noteworthy; the $250,000 LED Grant, the paperless report, the ongoing economic incentive program and rebates for attraction and retention of customers. The next focus for the whole team In 2016 is the continued focus on the initiatives to address green power. Reliability score was twenty out of twenty, obviously, the Reliability Study and implementing the recommendations along with the long-term roadmap for distribution and automation, development of the Safety Program and the eight -new comprehensive system maintenance programs. Page 1 3 Review of General Manager Employee Relations score was nine out of ten, noteworthy; completed Career Development Plans for each job description, completed the Organizational Study, budget on schedule with the limitations and recommendations, restructuring the line workers, settled Clerical Technical contract to include drug and alcohol testing, no grievances or new arbitrations. Improvement opportunity utilizing the Board where appropriate when they can help. It is difficult in some respects where there are union Issues. Leadership score was twenty out of twenty; noteworthy; the long term Strategic Plan. Chairman O'Rourke suggested for the future a write up on what the form is in terms of Leadership; it is a little light not in the assessment, but for what you do and what we should be scoring on. Heavy emphasis on implementation of the development of training programs for staff and all employee implementation and facility wide Career Development Plans, succession planning and ongoing leadership and governmental compliance and knowledge of regulations. Relationship with the Board score was five out of five, stating that Ms. O'Brien did a great job providing the Board with the two studies and the communications of how they are to be implemented. Responding to the Board properly concerning issues that need their attention eight. Chairman O'Rourke stated that from an improvement point of view, sometimes because the Board does not meet all that frequently there should be a more collaborative effort reached on how to stay in touch when there are issues going on. Chairman O'Rourke said that this mostly happened with the summer schedules. Relationship with the community served score was nine out of ten, stating that Ms. O'Brien does a great job with the CAB and the Public Power Open House was great. Chairman O'Rourke recommended that customer service training be provided for all positions that have constant contact with the commercial customers. Ms. O'Brien said that the biggest change is that the group does not work in the Business Division anymore and that they are now under Ms. Parenteau and it will be a completely different mentorship. It has only been about a month and there is quite a difference already. Chairman O'Rourke believes his score was a 97 but would add them up to be sure. Mr. Stempeck reported that he considers things to be relative to who was here before and looks at what type of progress has been made in terms of the entire Department. Mr. Stempeck said that he would go through each Individually and said the score was a 100. Mr. Stempeck said that Ms. O'Brien was doing over one hundred and if he could give a higher score that he would. In terms of Finance, Ms. O'Brien. has tight control and a focused control on all the financial obligations that the RMLD must meet. The significant number of dollars that Ms. O'Brien has saved and documented is real and has basically paid her own salary as she did last year as well. As far as Energy Efficiency and Load Management there is just an excellent balance in the energy portfolio that we have and the rates are consistently lower for the most part than all the towns around us. Certainly, including against the ISOs, at the end of the day that is what it is all about - reliability and keeping the rates low. Mr. Stempeck stated that Ms. O'Brien has knocked that one out of the park. Additionally, working on getting this additional generation peak shave is exactly the right place to ga. Ms. O'Brien reported that the new job for the Resource Specialist has been posted who will get the hot water heater program back up and running within the month. Mr. Talbot asked if the job was posted or hired. Ms. O'Brien replied, posted. Mr. Stempeck stated that in terms of Reliability that this is something that has been needed for many years. The General Manager has a very significant and needed Reliability Program that has substantially reduced the risk of system outage and has certainly been excellent, above and beyond any predecessors here at the RMLD. In terms of Employee Relations upgrading the staff employee skilisets and being intimately involved in all negotiations in a hands-on manner especially with the very difficult union issues that have been faced over the past year. Mr. Stempeck said that in terms of Leadership, that faced with all the town, political, and union issues as well as everything else here, that Ms. O'Brien has brought extraordinary skills and leadership when addressing bath short and long term goals. Page 14 Review of General Manager The Relationship with the Board is totally transparent and that Ms. O'Brien tells the Board when things are going right and/or wrong. It is always difficult when things are going wrong and that Ms. O'Brien has always been up front and very good at it. Mr. Stempeck reported on the Relationship with the community served that the fact that Ms. O'Brien met with all the Town Managers and the CAB on an ongoing basis and that she makes an effort to utilize WILD talent to economically position the RMLD better on a geographic area for tracking new businesses and new jobs, being economically aggressive, this just speaks to exactly what she has have been doing, what you should have been doing, and hopefully Ms. O'Brien on continue this into the future. Mr. Stempeck said that he deals with things on a relative basis and that Ms. O'Brien is just doing an outstanding job and that he would like to keep her here. Mr. Pacino said that he had made a mistake because of the changes to scoring that were just made and then stated that even with the old scoring he was in the greater than 95% range. Mr. Pacino reported that he would not go through each individual item. Mr. Pacino stated that the changes that Ms. O'Brien has been making with the culture have been very good here at the RMLD. The Reliability Study and the steps that have been taken from that is outstanding and again Ms. O'Brien is light years ahead of where we were in the past. Mr. Pacino said that there is still a way to go and encouraged Ms. O'Brien to just keep going and that she is going in the right direction. Ms. O'Brien asked Mr. Pacino what he would like for her to do for that five percent. Mr. Pacino replied that one of the things that he has a problem with rating, and has always had a problem with Is a twenty versus a nineteen. Mr. Pacino stated that eighteen, nineteen and twenty are all the same so that you could almost score this as 100. Ms. O;Brien said that it is not the numbers, but,if there was something she could do better. Chairman O'Rourke stated that obviously, we do not want to use previous administrations as a benchmark either and that the Board appreciates all that Ms. O'Brien has done and that it is a difficult job. Chairman O'Rourke reported that although it is a small union It is very challenging assignment. There are a lot of Issues and frustrations here but believes that it is a good opportunity and challenge. Mr. Pacino continued and said that he did not have the answer as to how Ms. O'Brien could improve but to just keep going with what she is doing. Mr. Stempeck stated that just the increase in the level of professionalism here is why he most admires Ms. O'Brien. There are still several departments that need to be reorganized, personnel issues that need to be addressed over the next couple of years and that Ms. O'Brien is a person who is strong enough to stand up to that and make it happen. Mr. Stempeck said that is a very difficult thing to do, to see people and try to help them, if they cannot rise to the level of what you need then you need let them go or find something else for them to do. This is very difficult to do in a union environment. Mr. Talbot asked if he was not officially part of this meeting. Chairman O'Rourke replied no, but part of the Board responsibilities, even though there is a committee, is for each commissioner to weigh in on the score. Mr. Talbot said that he would do it. He said that he would echo a lot of what the commissioners have stated and that he is the least knowledgeable about union issues and that he has a deep appreciation through them and for what Ms. O'Brien has been saying how tough all that is. Mr. Talbot stated that all the reliability is great and that Ms. O'Brien is a great engineer who pays attention to the details and that we are going to see the benefits as Mr. Stempeck has said when we have the next wind and Ice storm and we do not get hit as hard as the next town over. Mr. Talbot said that he knows that Ms. O'Brien is doing that stuff and it's great and it's what we need to be doing. One area that would be great to improve is how the community gets engaged and said that we do not even have a Twitter account it isn't being used. Page 15 Review of General Manager Mr. Talbot stated that it is a great way to get quick messages out to the community to promote products, services and things that we want them to do. There are a lot of challenges with using it and it has already been done, so why we would not do these easy things to promote some of the things that we wanted to do. Mr. Talbot said that it was mentioned that the RMLD was going to hire somebody and get those three hundred water meter heaters. It was already said that it would do one half a megawatt and if we do six hundred that is half of our gas generator. They are sitting out there in the warehouse and yes you need a resource staff person, but in his mind, it could also be achieved through effective communications. Just engaging the community in new ways so that more people know about this. Mr. Talbot stated that his thought is that this would very quickly be adopted and one area where we could do a lot better. Ms. O'Brien said that we have gone from 5,000 to 16,000 texts and emails in one year. For the Open House, we have a thermometer where if Customer Service reaches a certain amount they are going to get a prize or something. Mr. Talbot asked Ms. O'Brien to define Customer Service. Ms. O'Brien replied that Customer Service is already engaging the customer to get their information and when we opened the new online store Mr. 011ila used this database to send it out. That is why she has stated that the Code Red for communicating was seventeen thousand and we are doing such a good job that we can use our own. Ms. O'Brien stated that we had to get through the Reliability and Organizational Studies to reprioritize things then you need to hire the people and have the people, then you can put the article in the paper. As soon as we hire someone for the water heater program we are going to put this awesome program in the paper and then we will send out all the information. Ms. O'Brien reported that we are down seven vacancies and are trying to fill the slots. When we did the online store, we sent the information out there to everyone. Mr. Talbot responded that the online store is great. Mr. Talbot said that he is in with the majority and trying to focus on what we can do better, to him the school engagement is such a critical mission of what we do and that he would like to see more than just t -shirts about safety. Use these opportunities to engage these students to teach them more about our programs and get them to get their households to do things. Teach them more about what the Smart Grid is and why cutting the peak is important, it is a great opportunity to do some education for our kids and in return get things from our customers that we would like them to be doing in terms of adoption. Mr. Talbot said that he would like to see that program evolve. Ms. O'Brien stated that right now we have an LED contest going on as well at the schools. Ms. O'Brien said that one thing about the schools that you must understand is that you offer free education on electricity for third or eighth graders and the schools will not let you in as part of the curriculum. Ms. Parenteau's group is working on trying to figure out ways to use the high school kids for maybe a science project or something like that. Chairman O'Rourke stated that subject to input from Messrs. Talbot and Hennessy that will be received within the next day or so in terms of the compensation grid, amongst the feedback from the three commission members; is in the 97-98% category. This falls into the CPI plus two percent or more depending on the Board's evaluation. Chairman O'Rourke said that he wanted to bring everyone up to speed to come to a resolution this evening. Ms. O'Brien started July 15, 2013 with an annual compensation of $165,000. The Board gave her a raise last year retro to July 2014 which brought it to $169,956.80 or a six percent merit. Chairman O'Rourke stated that he received from Ms. Antonio a benchmarking study from the towns which shows the high and the lows of General Manager's compensation. The range has Ashburnham at $111,945 and Westfield at $190,210. With thirty-six towns measured, the numerical average is $177,539; the median which is a better perspective and where literally the middle, is about $149,500. Ms. O'Brien asked if that was the MEAM (Municipal Electric Association of Massachusetts) survey. Chairman O'Rourke replied, yes. Mr. Pacino asked about the towns surrounding the RMLD like Wakefield and Peabody. Chairman O'Rourke responded, Wakefield is $158,500 and Peabody is $166,000. Ms. O'Brien asked how old the survey was. Chairman O'Rourke replied that he had just received it the other day and was not sure how often the survey is conducted. Ms. O'Brien reiterated that she could give the Board the most recent when the survey comes out in October. Page 1 6 Review of General Manager Chairman O'Rourke asked if there were any other questions. Mr. Stempeck said that they should look at the latest survey, then the latest would have at least a three percent increase. Ms. O'Brien said whatever is decided that due to negotiations coming up she would not want more than three percent and if she is doing above and beyond well maybe something could be put into her ICMA or something. Chairman O'Rourke said that using the formula, the increase for the scoring greater than 95 is CPI a2.7%. Mr. Stempeck asked if that was right. Mr. Pacino asked if that was Boston and that we should be using the Boston CPI. Chairman O'Rourke asked if someone would validate that. Mr. Stempeck said that it should be up in the three plus or so. Chairman O'Rourke stated that if we took the 1.7 plus the two and stayed within that, (there is still an opportunity to do more based on the performance), that is still 3.7%. Mr. Stempeck asked what the other thing is that Ms. O'Brien was talking about. Ms. O'Brien replied It was the ICMA retirement account. Mr. Stempeck said it was his belief that they never done that before, he would be happy to do it just not sure what it is. Ms. O'Brien said it was a municipal 401. Mr. Pacino said that it has been done with previous administrations you just move to vote it to put the additional funds. Mr. Stempeck asked what is that typically-two or three percent? Mr. Pacino replied, yes but believesdhat they came up with a specific number last time. Chairman O'Rourke stated that Mr. Pollan is supposed to call him back on the merit so he can easily ask him. Mr. Talbot asked what the Town Manager of Reading was being paid and what did he get. Ms. O'Brien stated that utility managers do not usually get compared to town managers. Ms. O'Brien said that using the MEAM survey if you look at revenue and the number of meters. Ms. Foti stated that Taunton is the largest municipal. Chairman O'Rourke said that Taunton is $377,952. Ms. O'Brien believed that the Information was a couple of years old. Ms. OVBrien will get the new MEAM survey and send it to the Board. Chairman O'Rourke suggested obtaining the updated survey. Ms. Foti stated that using the municipals is probably the better benchmark. Mr. Stempeck said the 3.7% was reasonable, assuming it falls within the CPI and an extra 3% put into the retirement account retroactive to July. Schedule Next Meeting No date was set. Motion to Adjourn At 9:10 pm Mr. Pacino made a motion seconded by Mr. Stempeck to adjourn the meeting. Page 1 7