HomeMy WebLinkAbout2016-04-06 RMLD Citizens Advisory Board MinutesTown of Reading
¢ Meeting Minutes `RrcvvEll
TOWN CLERK
READING, MASS.
Board - Committee - Commission - Council: A 00 Ib'
RMLD Citizens Advisory Board �Dli NOV _,
Date: 2016-04-06 Time: 6:30 PM
Building: North Reading Town Hall Location: Room 14
Address: 235 North Street, North Reading
Purpose: General Business Session: General Session
Attendees: Members - Present:
Mr. George Hooper, Chair (Wilmington); Mr. David Nelson, Vice Chair
(Lynnfield); Mr, David Mancuso, Secretary (Reading); Mr. Dennis Kelley
(Wilmington)
Members - Not Present:
Mr. Mark Chrisos (North Reading)
Others Present:
Ms. Coleen O'Brien, Mr. Robert Fournier, Mr. Hamid Jaffari,
Markiewicz, Ms. Jane Parenteau, Ms. Kathleen Rybak
Minutes Respectfully Submitted By: Mr. George Hooper, Chair Q
Topics of Discussion:
1. Call Meeting to Order - G. Hooper, Chair
Chair Hooper called the meeting of the Citizens' Advisory Board to order at 6:30 p.m.
and noted that the meeting was being audio recorded.
2. FY17 Operating Budget - C. O'Brien, General Manager
Materials: Slide Presentation: RMLD Citizens'Advisory Board and Board of
Commissioners Presentation of FY2017 Operating Budget; and FY2017 - Proposed Base
Rate Increase (spreadsheet)
Ms. O'Brien expressed appreciation for the CAB support of the Department to move
further and further in the direction of paperless by using the (Pads. We want to be able
to balance efficiency with reality. If there is something that you would rather have in
paper, just let us know.
Ms. O'Brien announced that Mr. Fournier would be retiring in July of this year. His
successor will be Ms. Wendy Markiewicz. The CAB members congratulated both
Mr. Fournier and Ms. Markiewicz.
Mr. Fournier began the presentation with a review of the Six -Year Plan (Slide 3). Net
Income for 2017 is projected to be $3.9m, which will result in a 7.6% rate of return.
To achieve this, Base Revenue requirements of approximately $25.5m are necessary.
As discussed last year, any rate increase associated with the Budget would be tied into
the budget presentation. Due to a lack of sales/growth and in order to achieve that
Base Revenue, RMLD is proposing an overall rate increase to customers of 4.6% to
6.7%. Ms. Parenteau distributed and reviewed a rate analysis sheet. With this
Page I r
increase, an average residential customer who uses 500 kilowatts per month will see an
increase of $4.81 per month.
Tied into this (overall increase) is the Capacity expense, which represents 30% of the
power supply costs. Capacity costs for FY16 are estimated to come in at $18.9m,
which is higher than budgeted. A contributing factor to this Increase is an estimated
$2m increase to the RMLD portion of the (MMWEC) projects. Additionally, Transmission
is expected to Increase from $12.7m to about $13.4m, and Energy is expected to
increase approximately 1% overall.
Ms. O'Brien asked Ms. Parenteau to reiterate the major components for the increase in
Capacity. Capacity costs are projected to be around $7.00 per kilowatt month, which is
more than doubled. New generation coming into the NEMA region will receive a $15
per kilowatt month rate; existing generation will receive approximately $6.66 per
kilowatt month. Fortunately, the on -average cost for RMLD's portfolio is favorable
because it includes resources (Stony Brook, Millstone, and Seabrook) that qualified as
pool transmission and are counted as existing generation in the NEMA zone.
Forecasted costs are not expected to go down in the near future.
Mr. Fournier continued the presentation with a review of the remaining fixed expenses
and the semi -variable expenses. RMLD is a highly fixed -cost business and the
percentages (of total budget) for these expenses are fairly consistent year to year.
Ms. O'Brien commented on some of the expense items as presented by Mr. Fournier.
Property insurance went down as a result increased deductibles (from $5k to $25k).
Legal expenses this year include negotiations and review of RMLD policies. Ms. O'Brien
noted that the hourly rate for legal services for negotiations has gone down from $780
per hour to $275. Vehicle maintenance includes 51 vehicles in the RMLD Fleet.
Mr. Kelley questioned the status of the Barbas building lease. Ms. O'Brien responded,
that 230 Ash Street and the area behind is a target area for the Town of Reading
economic development. Therefore, the master site facilities plan Is on hold and we are
only addressing major maintenance issues in the building.
The FY17 Staffing Summary (slide 6) was reviewed. Ms. O'Brien noted that the last
column "Org Total" represents staffing levels based on the Organizational Study. The
column "FY17 Plan" represents previously approved positions (vacancies), which will be
filled in FY17, and any new positions budgeted for FY17. A total of four new positions
are included in the Budget. Ms. O'Brien noted that the Line Department has five
previously approved positions (or current vacancies). In FY17, three of the five
vacancies will be filled.
The group discussed the various maintenance programs initiated (transformer
replacement, tree trimming, in-house staffing for underground construction, etc.) and
the impact this proactive approach will have on the budgets moving forward.
A motion on the Operating Budget will be presented at the next CAB meeting following
the Capital Budget Presentation.
3. Next Meeting — G. Hooper, Chair
The Capital Budget presentation was re -scheduled for April 27'h. The next regular
meeting will remain as scheduled for May 4.
Page 1 2
4. Adjournment - G. Hooper, Chair
Mr. Nelson made a motion to adjourn the meeting of the Citizens' Advisory Board,
seconded by Mr. Kelley. Hearing no further discussion, Motion carried 4:0:1 (4 in
favor, 0 opposed, 1 absent).
The Citizens' Advisory Board Meeting adjourned at 7:27 p.m.
As approved on October 12, 2016.
Page 1 3
V%
r�
N
Ai
Q
U
Oo
�iY.
N
OO
C.
is
bA
UO
N
U
W
O
Q
Q
�
U
_
U
�xtiw
Ai
E
r
a
A A A A A
^Vll
A
r^
Vl
c
U
�
a
ct
N
c
o
c
a�
O
�
w
A A A A A
^Vll
A
O
a
�
o
c
�a
A A A A A
�
!§11111/§|||
;
!
|
||
!
If
!
!
||
§|§)�
HIM|
!
)
11111
IMMI
II h\
�`
Q
B
"
§
k
�
,§
■k##«K§
■e«;■n#!§K§(§§#■
�m
kR&!!!!
;§!;!■4!!§:§!§gin
j)))am09
.
�`
Q
B
W,
c
O
o
O
C)
O
c
O
m
O
O
O
0o
N
N
C
m
O
V1
O
if1
n1
L
O
N
0
Q
Q
O
X
U)
C
W
@
C
U
N
U
W
V)
V
U
j
i
N
C
C7
J
a
n1
"M
w
C
o
U
U
C
m
F
mv+
Q
Y
t
N
3
v
'
0
UO
C
cCn
d
>
m
W,
c
O
o
O
C)
O
c
O
O
O
O
O
O
�F
m
O
V1
O
if1
00
N
L
O
N
M.
on H
c
.y
3
o
U
U
Q
N
C
J
�
°
Y7
{n
�
6
_
CO
�W
. , .... ...... .. .. !_
f[
,. . .... ,..,;. .. • !:
|| { )
. nom ..,. .,,.,,,, ,,,,,,
�|\ �� , . !� •�
13 ||
L
c
C
N S
as Xa
m
u
Q
Q,6
Z
Pf
Q n
2 Q
�grygxmtt �n'1.eM F'N E�S�:g?
SRS° w
4gS. 8i$ F�9^'^„452
_ sexes
E FF «
m g„
�o fig= e81�„ Eo .xa"a_ a�m�rR
2 4
LL e s G�a�e s e$x"Ego 9 _oV"s � "go2 g_