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HomeMy WebLinkAbout2017-09-14 RMLD Board of Commissioners Minutesorp� Town of Reading Meeting Minutes i 1 r f ( 5J9' toPQ�aP - I \ Board -Committee Commission - Council: RMLD Board of Commissioners toia JAN 30 . A' 8: 201 Date: 2017-09-14 Time: 7:30 PM Building: Reading Municipal Light -Building Location: Winfred Spurr Audio Visual Room Address: 230 Ash Street Session: Open.Session Purpose: General Business Version: Attendees: Members - Present: Philip B. Pacino, Chairman; David Hennessy, Vice Chairman -Secretary Pro' Tem; Thomas O'Rourke, Commissioner; David Talbot, Commissioner; :John Stempeck, Commissioner (Remote Participant). Members - Not Present: Others Present: RMLD: Hamid Jaffari, Director of Engineering and Operations, Jane Parenteau, Director of.Integrated Resources, and Tracy Schultz, Executive Assistant Citizens' Advisory Board: Jason Small, Member Minutes Respectfully Submitted By: David Hennessy, Secretary Pro Tem Topics of Discussion: Call Meeting to Order Chair Pacino announced that the meeting is being videotaped for distribution to television stations in the service territory, and then read the RMLD Board of 'Commissioners' Code of Conduct. Due to Mr. Stempeck being out of town -and participating remotely, all votes will be roll call. Introductions Chair Pacino welcomed Citizens' Advisory Board (CAB) Member Jason Small. Public Comment There was no public comment, no comment from Mr. Small, and no liaisons present. Approval of Board Minutes (Attachment 1) Mr, O'Rourke made a motion, seconded by Vice Chair Hennessy,, that the Board approve the meeting minutes from May 10, 2017, May 11, 2017, and July 20, _2017. Chair Pacino called for a poll of the.vote: Mr. O'Rourke: Aye; Mr. Talbot: Aye;.Chair Pacino: Aye; Vice Chair Hennessy: Aye; Mr. Stempeck: Aye. Motion Carried 5:0:0. Page I T Report-RMLD Board.Member Attendance at Citizens' Advisory Board Meeting Chair Pacino Chair Pacino announced that he attended the Citizens' Advisory Board meeting on August 17, 2017. At. that meeting, the CAB approved and recommended that the Board of Commissioners adopt Item 10 on this evening',s agenda, the Electric Vehicle rate. The CAB also appointed two r-, 0 members to the Reading Town Payment Sub- Committee: Chair Hooper and member Cohen. .That Committee is scheduled to meet on Wednesday, September 27. Chair Hooper, Mr. Cohen, Mr. Stempeck, Mr. Ensminger, and Chair Pacino will attend. Report of the Chair - Chair Pacino Attendance of the Board at the NEPPA Conference, August 20 through 23, 2017 Chair Pacino stated that the NEPPA conference was an opportunity to network with different. people. Chair Pacino attended some of the sessions, and asked if any attendees of the fiber session wanted to speak about what they had heard. Mr. Talbot replied that Chair Pacino must be referring to Jim Ingraham from Chattanooga, and explained that municipal utility is a national pioneer in merging communications and electricity. they have a lot of creative things going on and there has been some talk of inviting a representative up to RMLD, or having representatives from RMLD go to Tennessee. Mr. O'Rourke noted that 100 percent of the Board attended the NEPPA conference, along with Mr. Jaffari, Ms. Parenteau, and Ms. O'Brien. Mr. O'Rourke added that fiber is a timely issue; visiting and examining benchmark companies would be worthwhile. Engaging Municipal Fiber Leaders-, Mr. Hennessy Vice Chair Hennessy'agreed, stating that he is very excited about having Chattanooga possibly come up -and that Ms. O'Brien had also mentioned meeting with the General Manager of Braintree. RMLD should learn from other utilities and determine three or four best practices. Mr. Talbot stated that he has been writing a report with Vice Chair- Hennessy on fiber and thinks that it is time to wrap it up and present the document to the Board. Mr. Jaffari stated that the fiber consultant.is finishing his study and it should be ready next week. Mr. Talbot asked who the Chair of the Strategic Committee is. Chair Pacino replied that it's more of a general facilitated discussion,without a designated Chair. Mr. Talbot asked if RMLD wanted to bring in a representative from Wellesley. Mr. Jaffari replied that the Braintree General Manager will be at the September 26th Strategic Meeting. - Community Engagement - Ms. Parenteau Ms. Parenteau stated .that this past Sunday RMLD had a booth at the Reading Street Fair, where employees spoke to many customers about Solar Choice Phase 2. In August, RMLD sponsored a high school summer art -contest. Twelve students submitted artwork and an awards ceremony was held on August 24. The first, second, third, and fourth place winners received gift certificates to Staples. The first -place piece will be on the cover of RMLD's Annual Report. The second -place winner will be on the back. of Public Power Open house tee shirts that are being provided for employees during Public Power Week. The public Power Week Open House will occur on Thursday, October 5 from 3-6 P.M. here at the RMLD. On October 16 RMLD employees will be attending a welcome reception at the Wilmington Public Library from 6 to 8 p.m. for new Wilmington residents. The information for the elementary school art contest is being delivered to all the third and fourth graders in RMLD's service territory today and tomorrow. Joyce Mulvaney, the Communications Manager, did a fantastic job producing RMLD's own electric safety and public power video. . Page 12 .Community Engagement - Ms. Parenteau Yesterday, RMLD held a National Drive Electric Week event at 200 Ballardvale Street. There were two sessions, one for the employees of 200 Ballardvale, one for the public. There were over 130 participants. There was a Chevy Volt available for test driving. The Annual.,Report has been started; the Town is finalizing its financials; RMLD is. waiting on . calculations for the Pension and OPER. Power Supply.Report -June and July 2017 Ms. Parenteau (Attachment 2) . Ms. Parenteau announced that she- would be reporting on -the months of June and -July.. It appears that ISO had its peak demand in.June. This has only occurred two times in the last 25 years and is not normal in the New England region. It happened on June 13, hour ending 5 o'clock. This. is. projected, since the summer period lasts until the end of September. The ISO's peak was considerably lower than it was in 2016. In 2016, the ISO peaked at 25,596 megawatts. This year The ISO peaked at 23,717. The decrease is approximately seven percent. Ms. Parenteau then reported ,on RMLD's, system peak versus cooling degree days. Cooling degree days are calculated by taking the difference between the,temperature mean, which is the average of the high and low of the'day, then subtracting that from.,65. This indicates how much cooling is necessary: In 2017, June had less cooling degree days than it did in 2016. Sales are dependent on weather. Sales in June 2017 were $66 million, ,versus last June, when sales totaled $63 million. Even though cooling degree days were down, sales were up -a caveat to this is that June billing represents some of May, due to the billing cycle. Fiscal Year 2017 purchase power expenses showed that fuel. costs were down $900,000. However, capacity costs increased by $2 million and transmission costs increased by $700,000. There was a $1 million increase in the overall power supply. Sales were flat; there is less -than a one percent difference between FY 2016 and FY 2017. . Proposed Rate Approval (Attachment.3) RMLD has been running an Electric Vehicle (EV) charging station pilot program at Analog Devices and is presenting this rate in anticipation of installing other charging stations at other locations. The proposed rate looks at recovering. fixed costs, at 0.111 cents: The fuel charge and transmission and capacity components will then be added monthly.,It currently is a little over 20 cents, which is equivalent to paying $1.80 a gallon for gasoline. Mr. Talbot, asked if other municipals have different rates for electric vehicles. Ms. Parenteau replied. that she can't answer for other municipals. Mr: Talbot then asked what the precedent is for having a specific EV rate. Ms. Parenteau stated that she would have to.look into that. Mr. Talbot stated that he is wondering what the business model is in installing RMLD chargers -and what the payback period would be, versus subsidizing businesses to put in chargers. Mr. Talbot added that RMLD could put in outlets instead of a $40,000 fancy charging station. Mr. -Talbot' stated that he is wondering what the idea is behind spending money on a charger and then recovering it from 20 cents a kwh. Ms. Parenteau explained that this is :a technology that could help the utility in the future. If electric vehicles do take off this is an opportunity for the RMLD to increase revenue and sales. There aren't plans for RMLD to install a lot of these: it will be determined by supply and demand. We want to have a rate on file. Mr. Talbot said that he would be happy to vote to approve the rate, but wants to look at parking lot business models. Mr. Talbot asked how it works how. Ms. Parenteau explained that RMLD owns the charging station. EV owners swipe a credit card and ChargePoint recovers the money and sends it to RMLD: There's a 10 percent ChargePoint fee that is incorporated into what the customer pays. Mr. Talbot clarified that this is to formalize the pilot program and added that electric cars represent the future of lode growth and he wants to get the business model right. Page 13 Proposed Rate Approval (Attachment 3) Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke, that the RMLD Board of Commissioners approve rate MDPU Number 277, effective November l; 2017 ori the recommendation of the General Manager. Chair Pacino called for a poll of the vote: Mr. Talbot: Aye; Mr. O'Rourke: Aye; Chair Pacino: Aye; Vice Chair Hennessy: Aye; Mr. Stempeck: Aye. Motion Carried 5:0:0. Engineering and Operations Report - June 2017 Mr. Jaffari (Attachment 4) Mr. Jaffari explained that since FY 2017 has ended, he will be giving a full report on the budget and .spending. Capital expenditures are comprised of four categories: construction, station upgrades, routine construction, and .purchasing. Ninety percent of FY 2017 projects were successfully completed. $1,630,623 was spent in the month of June, bringing the year-to-date spending to.$8,009,832..The FY 17 budget was approved for $9.4 million. The remaining balance of $1.4 million is comprised of $717,235 for distributed generation. We will come in under budget for that project; it was budgeted for $2.7 million and will cosh $2.4 million. RMLD needs to pay Milton Cat's last invoice of $400,000. RMLD ,is holding it due to noise levels from the generator. Once they ' correct that we will. pay it off. The $432,000 balance that was allocated for transformers and capacitors, has not been spent, but will be. $236,484 of that is allocated for the Wilmington Substation. RMLD is still searching for land but has a proposed site. Otherwise, the full . $9 million would have been spent. There were some challenges along the way. There_were surprises during the construction phase of some projects, such as Project 106, the underground facilities upgrades. There was equipment that wasn't expected to fail. There were also motor vehicle accidents that hit transformers that then needed to be replaced. Whenyou get into sub -divisions and the street up you find that you need to do more than what you expected. That's why some projects were over budget. Mr. Jaffari continued, stating that some projects are ongoing, such as the AMI mesh network expansion and..transformer capacitors.. GIS is 99 percent complete. Next week RMLD employees will be training with Milsoft, using a full engineering model based on up-to-date GIS. This will allow for more accurate estimation of projects..The LED streetlight upgrade is on target. This is the final phase, with 2,450 installs remaining. By installing 65 a week, the project will be done by June 2018. The Analog Devices upgrade and RMLD HVAC upgrade are completed. RMLD's SCADA room Is currently being upgraded, and the Board can tour the facility in a few weeks when the work is finished. There is a new outage management system and large monitors. RMLD is on the right path as far as. technology upgrades and automation. These will improve reliability and cut down outage frequencies and duration. Chair Pacino stated that he was at the ribbon cutting of the new generator and the tour of the North Reading facility, and when the generator was turned 'on the sound wasn't too much. Mr. Jaffari explained that the specifications called for 50 dB at 60 feet; the noise level came out to 55 dB at 60 feet. The contractor is required to meet the bid specs. Tomorrow is the next test. Chair Pacino-added that there is enough room at the, site to add. a second unit. Mr. Jaffari agreed and stated that Engineering is working with IRD to secure_ a grant for three and a half, megawatts battery storage. The grant results will be published in November. Mr. Talbot commended Mr. Jaffari and Ms. O'Brien for completing an amaang number of engineering upgrades; it's a lot of work. Mr. Jaffari replied that it is a team effort. Mr. O'Rourke commented that. there's a lot of tracking and reporting involved: That takes a lot of organization. Page 14 . Engineering and Operations Report - June 2017 - Mr. Jaffarl (Attachment. 4) . Mr. Jaffari thanked the Board and then reported on routine maintenance. There was no -tree trimming in June, because an aggressive maintenance program and extensive damages from storms earlier in the year used up the allocated budget for that program. The maintenance on Station 3 will -be completed next week -there were many design issues. Reactors still need to be installed outside to drop incident energy. This will happen in a few weeks when the contractors return from hurricane outage restoration. In.the last 2 or months, RMLD has taken down 120 double poles in: North Reading, Reading and Lynnfield, and Wilmington. There are 3 transfers remaining in Lynnfield, and"in Reading there are 59 pull poles: North Reading was over 100, and that has been brought down to 32. Wilmington has 14 more poles. The number goes up and down as construction occurs. Mr. Jaffari thanked the community and RMLD's customers for being so patient. Mr. Jaffari then moved on to the SAID, SAIFI and CAD reliability indices, all of which .are well below national -and regional averages. These numbers can change with one storm. The trend over the years has been to stabilize. 2014 was a bad year due to maintenance issues. Since maintenance program_ s have been developed and kept up the outage numbers .have .been going down: Mr. O'Rourke asked if this was a measure of the work being done with capital expenditures, which Mr. Jaffari replied to in the affirmative. Vice Chair Hennessy asked if there was one that Mr. Jaffari looked to as more important. than the others. Mr. Jaffari explained that SAIDI is system outage duration, SAIFI is the average frequency of a customer outage, and SAIFI is the frequency ,of outages. Mr. Jaffari stated that RMLD is doing well on SAIFI, considering that RMLD is responsible for four towns.. Mr. Jaffari explained that he looks at all three indices; they 'are all, important. These are tracked every month on APPA software. Mr. Hennessy clarified that the report said 13 customers out of every 1,000 experienced an outage. Mr. Jaffari. explained that, it is 0.13, which means less than one outage of the customer base. It is less than one percent. The regional. average is 0.54 among .utilities the same customer size, or less. Mr. Jaffari explained that RMLD's outages were mainly caused by equipment failure, trees, and wildlife. Equipment and wildlife have gone down; trees go up and 'down depending on the number of storms. Chair Pacino asked if RMLD played any role in restoring power to Texas after the hurricane. Mr. Jaffari answered that RMLD received a Mutual Aid call. However, the week beforethere were five motor vehicle accidents in RMLD's service. territory. Not having enough resources, RMLD couldn't send anyone. One employee took vacation, and went: The next hurricane, depending- an ependingon if our system is in good shape, we may send assistance. Mr. Jaffari stated that he is a big fan of mutual aid and his heart goes out to the people who are out of power, Determination.of Uniqueness of Property - Mr. Jaffarl Mr. Jaffari explained that there is a site at 326 Ballardvale Street that RMLD is considering building a substation on. It is located right next to 115 kV lines. Therefore, a lot of construction won't be needed to bring the energized line into the substation. _RMLD had a meeting with the Town of Wilmington, and there is a zoning issue: the building to lot ratio is 36 percent. It needs to be 35 percent, per. zoning requirements. There are three options, which are being negotiated with the owners: purchase, lease with option to buy, and lease. RMLD is trying to purchase the property, . Page 15 Determination of Uniqueness of Property -Mr. Jaffari but is also looking at leasing the property because that would get rid of the zoning requirements and a variance would not be required. Because of the uniqueness of the project's location, RMLD is asking to skip the RFP, because we do not need to receive proposals from all over. We need substation where 115 kV lines are, and there are not many properties that fulfill that requirement. The one RMLD has already located does. Not filing an RFP will save two months' time: Notice of the exemption .will appear in the Central; Register;, so there Will be public notification.. Chair Pacino asked Mr. Jaffari to explain why the Department is,doing this. Mr. Jaffari answered that Substation,5 (Wildwood Station)' has reached`the end of its"useful .life. The transformers are old and it's next to wetlands, which makes construction very difficult due to site restrictions. It is being fed from 34.5 kV lines from Station 4. That means that the losses are significant. Being close to the 1.15 kV lines would cut losses and save money. The -property in question would place the substation where the load center. is. The property is in the perfect location. Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke, that the RMLD Board of Commissioners approve. the determination of the uniqueness of property and waive the publication requirements of M.G.L. Chapter 30B § 16, with respect .to the acquisition .of land located at 326 Ballardvale Street, Wilmington MA 01887, and identified on the Town of Wilmington Assessor's Map,as R2 -Lot 23/2. r Chair Pacino called for a poll of the vote:, Mr. Talbot: Aye; Mr. O'Rourke: Aye; Chair.Pacino: Aye; Vice Chair Hennessy: Aye; Mr. Stempeck: . Aye. Motion Carried 5:0:0: RMLD Procurement Request Requiring Board Approval - Mr. Jaffari (Attachment 5) RFP 201.8-01 115kV. Pole Replacement Project Mr. Jaffari explained that these are the 115. kV lines that are feeding Station 4. The poles were tested and are marginal. Two poles failed and were replaced last year. There are five more that need to be upgraded. Eighteen construction companies were sent a Request for Bid (RFB) and only two responded. Mass Bay did not meet the requirements following a background check. Harlan Electric did the pole replacement last time. Their $115,069.59 bid includes_ $9,314:34 for matting since the poles are in a wet area. If that doesn't need to be used it would be savings for RMLD. Chair Pacino stated,that:the bid is for $150,000 and the project was budgeted for $60,000.'Chair Pacino asked Mr. Jaffari to explain the difference. Mr.-Jaffari explained that the. amount is higher due to construction challenges. Upon further investigation, it was determined that more work and more labor is involved because the situation is worse than what we originally thought. This is impacting reliability and this is one 'of two major lines that feed into Station 4. These are 70- foot4all poles. We've notified National Grid. and.Eversource; it's a long process to schedule the outage. Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke, that proposal 2018-01 for Pole Replacement Project beawarded to Harlan Electric as the most responsible and eligible bidder, in the amount of $115,069.59, pursuant to M.G.L. Chapter 30 § 39M on the recommendation of the General Manager: Chair Pacino called for a poll of the vote: Mr. Talbot: Aye; Mr. O'Rourke: Aye; Chair Pacino: Aye; Vice Chair Hennessy: Aye;. Mr. Stempeck: Aye. Motion Carried 5:0:0. Page 16 WILD Procurement Request Requiring Board Approval - Mr. Jaffari (Attachment SY RFP 2018-03 48 Pole Mounted Transformers Mr. Jaffari explained that these transformers are used for system upgrades. 16 companies were sent the RFB. The two lowest, responsible, and responsive bidders were Stuart C. Irby Co. in the amount of $42,493.00 and Wesco'for $59,_229.00, fora total'of $101,722.00. A 'Part of the bid requirement is that the transformers meet DOE energy efficiency; standards. This is the reason that the other bidders were disqualified: they weren't even close. Chair Pacino clarified that the bid is for 48 Pole Mounted Transformers and asked that M.G.L. be added to all bids. Vice Chair Hennessy, made a motion, seconded by Mr. -O'Rourke, that proposal 2018-03 for 48 Pole Mounted Transformers be awarded to Stuart C. Irby Co. in the amount of $42,493.00 and Wesco for $59,229.00, for a total. of $101,722.00, pursuant. to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. - Chair Pacino called for a poll of the vote: - Mr. Talbot: Aye; Mr. O'Rourke: Aye; Chair Pacino: Aye; Vice Chair Hennessy: Aye; Mr. Stempeck: Aye. Motion Carried 5:0:0. RFP 2018-0450 Pad Mounted Transformers . Mr. Jaffari same thing asprevious bid but these mount on,pad for underground. There werel6 bidders. The most responsible and responsive was Wesco. The rest of -the bidders took exceptions., - Vice Chair Hennessy made a motion; seconded by Mr. O'Rourke,- that proposal 2018-04. for 50 Pad Mounted: Transformers be awarded to WESCO in the amount of. $68,959.00, pursuant to M.G.L. Chapter 164 § 56D on -the recommendation of the General Manager. Chairman Pacino called fora poll of the. vote: Mr. Talbot: Aye; Mr. O'Rourke: Aye; Chair Pacino: Aye; Vice Chair Hennessy: Aye; Mr. Stempeck: Aye. Motion Carried 5:0:0. i RFP 2018-05 Capacitor Banks Mr. Jaffari. explained that capacitor banks are used to maintain the voltage. on the system. The bid was sent to twelve:,companies and all of -them took exceptions. The -lowest responsible and responsive bidder was Stuart C. Irby iri the. amount- of $39,664.00. Per Chapter. -164, we don't have to :go with lowest bidder. However, this was the lowest bidder. The. exception that they took was a minor variance. It was budgeted for $30,000 but unfortunately it is a bit higher.. Before we send out the request for bids we get an estimate of how much the equipment will cost. The actual cost can go up and down -;this one went .up. Vice Chair Hennessy made a motion, seconded 'by Mr. O.'Rourke, that proposal 2018=05 for Capacitor Banks be awarded to :Stuart C: Irby in the amount of $39,664.00, pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. Chair Pacino called for a poll of the vote: Mr. Talbot: Aye; Mr. O'Rourke: Aye; Chair Pacino: Aye; Vice Chair Hennessy: Aye; Mr.Stempeck: Aye. Motion Carried -5:0:0. RFP 2018-0615kV Pad Mounted Switchgear Mr. Jaffad stated that this switchgear that is -used for underground distribution of major loads: anywhere from 2,000 kVa to 51,000 Wo. They are a key pari'to the reliability of the underground system. RMLD has a program to purchase four to five every year until all 25 are replaced. They all Page] RMLD Procurement Request Requiring Board Approval - Mr. Jaffarl (Attachment 5) RFP 2618-0615kV Pad Mounted Swffchgear have reached the end of their useful life. Trayer Engineering Corporation had no exceptions. This went over the budgeted amount; the price of metal has gone up. Vice Chair Hennessy made.a motion; seconded by Mr. O'Rourke, that proposal 2018-06 for 15kV Pad Mounted Switchgear with Vacuum Load- Interrupters .and Vacuum Fault Interrupters be awarded to Trayer Engineering Corporation in the amount of $175,431_ , pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General. Manager. Chair Pacino called for a poll of the vote: Mr. Talbot: Aye; Mr. O' Rourke: Aye; Chair,Pacino: Aye; Vice Chair Hennessy: Aye; Mr. Stempeck: Aye._ Motion Carried 5:0:0. RFP 2018.07 SCADA-Mate CX Switches Mr. Jaffari stated that this. is the same .technology that Chattanooga is using for distribution automation. This is a 10 to 15 -year program for replacing the major switches with ones that are smart. They can detect the fault, isolate it, and, send a message to SCADA. The dispatchers will send crews right to the outage location, saving on . operation expenses. We are in year two. Year one was the pilot program and came- in under budget. The bid is being awarded to WESCO in the amount of $134,084. The budgeted amount was $140,000. Mr. Talbot asked how many of the switches will RMLD ultimately be installing. Mr. Jaffari replied: 99 to 100. Mr: Talbot then ;asked how the switches communicate with RMLD. Mr. Jaffari responded. through fiber node. In areas that have no fiber, a radio will be used'to send a signal to the nearest fiber. Mr: Talbot asked how much it would cost to run fiber to the locations who have no fiber. Mr. Jaffari answered that installing' the fiber is a matter of time. As we expand fiber assets eventually all. will be covered. However, expanding the fiber network will cost more than the radios. Currently, those using dark .fiber are paying for its installation and then turning it over to us. A situation we can benefit from is the preferred choice. Mr. Talbot stated that it's going to be worth it to install fiber where •there are businesses and homes=because over time those strands will be used. Mr. Talbot stated that he is encouraging Mr. Jaffari to put in the fiber to support the switches. you're up there anyway and then you have the fiber and it can be monetized. Chair Pacino asked what is meant by "unauthorized signature" under Graybar. Ms. Schultzspeculated designated purchasing agent; but wasn't sure. Mr. O'Rourke asked, with a total of ninety switches. needed, is .there any leverage to negotiate? Is the price quantity sensitive? Mr. Jaffari replied that It is. A bid would need to be sent out and money committed to spending. on the, equipment..The reason we haven't done that is if sales are- down, this project could be deferred if it needed to be. Mr. Talbot stated that when these are installed you save money. Even if you spend an obscene amount of money up front, you would get that money back: Mr. Jaffari explained that RMLD would have to allocate $2 million to spend. However, RMLD has to build a new $5 million substation. That's why the purchasing of this equipment is divided into segments. Page 1 8 •RMLD Procurement Request Requiring Board Approval -Mr. Jaffari (Attachment 5) RFP 2016-07 SCADA-Mate CX Switches . Mr. Talbot announced that he was'encouraging Mr. Jaffari to wrap it up into one project and include fiber connectivity. Mr. Talbot then asked Mr. Jaffari if he had changed his mind about the voting on :this bid tonight. Mr. Jaffari replied that he had not; it takes sixteen weeks to get the equipment and these are for ` key locations. • He will look into a. bulk purchase for the. next order. These switches. are encapsulated so everything is covered; it minimizes the likelihood of animal contact. Mr. Talbot commented that Chattanooga saved $2 to $3 million during one storm. Vice Chair',Hennessy .made a motion,_ seconded by Mr.' O'Rourke that 'proposal 2018-07 for SCADA-Mate CX Switches be awarded to WESCO in the amount of $134,084, pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. Chair Pacino called for a poll of the vote: Mr. Talbot: Aye; Mr. O'Rourke: Aye; Chair Pacino: Aye; Vice.Chair Hennessy: Aye; Mr. Stempeck: Aye. Motion Carried 5:0:0. RFP 2018-10 One (1) Trouble Truck: Year 2018 or. Newer -with Trade -In Mr. Jaffari announced that the last bid is for a trouble truck with trade-in. The lowest bidder was Altech, but they took some exceptions and had missing parts. The second lowest was Minuteman Trucks: It will take 42 weeks to deliver: The value of the trade-in is $15,000: The'price of the truck before trade-in was $186,465.16. Mr. Hennessy made a motion, seconded by Mr.. O'Rourke, that proposal 2018-10 for One (1) Trouble Truck: Year 2018 or Newer with Trade -In be awarded to Minuteman Trucks in the amount of $174,125.16, pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. Chairman. Pacino called for a poll of the vote: Mr. Talbot: Aye; Mr. O'Rourke: Aye; Chair. Pacino: Aye; Vice Chair. Hennessy: Aye; Mr. Stempeck: Aye. Motion Carried 5:0:0. Mr. Small then directed the Board's attention to an error on 2018-04 50 Pad Mounted Transformers, stating that the $68,959 bid amount should be much higher. The calculation used in the bid reflect singular values rather than .the -full quantities..The Unit price was used without accounting for how many pieces of equipment would be purchased. Mr. Jaffari recalculated the bid while. the Board moved onto the next agenda items, at Mr. Talbot's suggestion. RMLD Board_ Meetings Chair Pacino announced that the next Strategic Meeting. will be held on Tuesday, September 26, 2017 at 6:00 p:m., and the Sub -Committee on the Payment to the Town of Reading will meet on September 27 at 6:00 p.m. The next RMLD Board Meeting will be on Thursday, October 26, 2017 at 7:30. p.m. Ms. Schultz said that the Audit results will be presented_ and she'll coordinate with the Town of Reading Audit. Committee'. CAB Meeting Mr. Small ,stated that. the CAB meeting scheduled for Wednesday_, September 20, 201=7. at 6:30 p.m. has been cancelled. The next meeting will be.in October. RFP 2018-04 50 Pad Mounted Transformers v Mr. Jaffari apologized for the bid error, and stated that he has calculated that. the total bid amount should be $205,981. Chair Pacino stated that the Board will make a motion to reconsider Item 13c, and then revote it. Page 19 RFP 20.18.04 50 Pad Mounted Transformers Mr. O'Rourke made a motion,.seconded by Vice Chair Hennessy, to reconsider Item 13c, Chair Pacino called for a poll. of the vote: . Mr. Talbot:,Aye; Mr. O'Rourke: Aye; Chair Pacino: Aye; ViceChair Hennessy: Aye; Mr. Stempeck: Aye. Motion Carried 5:0:0. Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke; that proposal 2018-04 for 50 Pad Mounted Transformers be awarded to WESCO in the amount of $205,981, pursuant to. M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. Chairman.Pacino,called for a poll of the vote: Mr. Talbot: Aye; Mr. O'Rourke: Aye; Chair. Pacino: Aye; Vice Chair Hennessy: Aye; Mr. Stempeck: Aye. MotionCarried5:0:0. General Discussion Mr. Talbot explained, that if solar is not installed by March, current subsidies go away. Mr. Talbot stated that he wants to make sure that the towns know about the deadline; he is sending a letter to the Towns and is just letting the Board know. Mr. O'Rourke asked Ms. Parenteau if it would be -more appropriate to have a staff member of RMLD contact the Towns. Ms. Parenteau answered that several solar vendors have contacted RMLD and RMLD has sent information to our customer base. Mr. Talbot clarified he is referring to the Towns. Mr. O'Rourke asked Mr. Parenteau if it would be more appropriate to have the letter come. from RMLD. Ms. Parenteau replied that it's Mr. Talbot's prerogative. Mr. Talbot stated -he was writing the letter more as a Town Meeting member, but wanted to make sure none•of his RMLD Board colleagues have any objections. Chair Pacino stated that Mr. Talbot can say that the Board supports his writing of the letter. Executive Session Vice Chair Hennessy made a. motion, seconded by Mr. O'Rourke, that the Board. go into . Executive Session to consider the purchase of real property and return to Regular Session for the sole purpose of adjournment. Executive Session Mr. Stempeck left the meeting. Adjournment Vice Chair Hennessy made a motion, seconded by Mr. O' Rourke, to adjourn the Regular Session. Motion Carried 4:0:0. A true copy of the RMLD Board of Commissioners minutes as p .y a ajority of the Commission. J David Hennessy, Secretary Pro Tem RMLD Board of Commissioners Page 110 READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS REGULAR SESSION THURSDAY, .SEPTEMBER 14, 2017 APPROVAL OF BOARD MINUTES ATTACHMENT 1 READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS REGULAR SESSION 230 Ash Street Reading, MA 01867 May 10, 2017 Start Time of Regular Session: 6:07 p.m. End Time of Regular Session: 7:09 p.m. Commissioners: Philip B. Pacino, Chairman David Talbot, Commissioner David Hennessy, Vice Chairman, Secretary Pro Tem Thomas J. O'Rourke, Commissioner John Stempeck, Commissioner Staff: Coleen O'Brien, General Manager Wendy Markiewicz, Director of Business Finance Hamid Jaffari, Director of E & O Tracy Schultz, Executive Assistant Jane Parenteau, Director of Integrated Resources Citizens Advisory Board: George Hooper, Chairman RMLD Liaison: Selectman Dan Ensminger, Town of Reading Call Meeting to Order Chairman Pacino called the meeting to order and announced that the meeting is being videotaped for distribution at community television stations in Reading, North Reading, Wilmington and Lynnfield. Opening Remarks and Introductions Chairman Pacino read the RMLD Board of Commissioners' Code of Conduct and welcomedCABChairman Hooper to the meeting. Chairman Pacino also welcomed liaison Mr. Ensminger from the Board of Selectmen and asked if he had any comments. Mr. Ensminger replied that he would wait to see what Chairman Pacino had to say on the Instructional Motion. There was no public comment. Chair's Report Update on Instructional Motion -Town Meeting, May 4, 2017 Chairman Pacino began with the Update of the Instructional Motion that was made on Thursday, May 4, 2017 at the Reading .Tow n Meeting, and explained that the gist of the Motion was to look at RMLD's return to the Town. Chairman Pacino then addressed several misstatements that have been made. Chairman Pacino stated that someone said that the RMLD is an ATM on Ash Street -that's not true. There was a statement made that a Commissioner had appeared in front of the School Committee and said that RMLD was flush with cash. Chairman Pacino stated that it did not happen during his 31 -year tenure on the Board and that he doesn't know what Commissioner that allegedly was. There was also a statement made, attributed to a Town Official, that the Department is worth $250 million. Chairman Pacino stated that he has no idea where that number came from. The Town Manager stated that he brought up an issue with a former General Manager. Unfortunately, that never came before the Commission, and Chairman Pacino wishes that it had. Chairman Pacino explained. that at the May 4, 2017 meeting he proposed and promised to call a meeting of a Sub -Committee that has been in existence since June 9, 1998. The Sub -Committee consists of two members from the Board of Commissioners, two CAB members, and one member of the Reading Board of Selectmen (Chairman Pacino stated he does not care if'they opt to have two representatives instead). The Sub -Committee will meet, discuss .the return to the Town, and come back with a recommendation from all parties involved. The Commission represents the interests of the Department; the CAB represents the ratepayers, who are the main stakeholders; and the Selectmen represent the Town of Reading. Being the Chair, Chairman Pacino stated he assumed he would be one member of the Sub -Committee and asked Mr. Stempeck, if he's willing, to be the other. Mr. Stempeck replied that he would be happy to. Chairman Update on Instructional Motion -Town Meeting, May 4,,2017 Pacino asked Mr. Hooper to decide with the CAB members who they will place on the Committee. Mr. Hooper asked when Chairman Pacino was looking to have this meeting. Chairman Pacino replied that they need to report back to the Town by the November Town Meeting. Mr. Ensminger asked if it would be, possible to get a copy of the original Sub -Committee charter. Chairman Pacino replied that he would have Ms. Foti distribute a copy to all involved parties. Mr. Ensminger stated the Selectmen will determine their number of Sub -Committee representatives at their next meeting. Mr. Hooper asked for a copy of the charter as well. Chairman Pacino asked Ms. Schultz to send a copy to all the members of the CAB and all the members of the Commission. Chairman Pacino stated he had one last comment. The final vote was taken when there was less than a quorum; for those people who left, they should be aware that was' a very far-reaching discussion that could severely impact this Department. For those people who left the meeting, Chairman Pacino doesn't know how they feel they can represent their constituents, and added that this is his own personal comment. Mr. O'Rourke said you could also say it's probably not productive to be discussing things at 11:30 at night. Chairman Pacino mentioned that he happened to discuss the formation of the Committee with previous Boards of Selectmen but they never chose to call this Sub -Committee meeting. Chairman Pacino made a motion, seconded by Commissioner O'Rourke, to officially appoint himself and Mr. Stempeck to the Sub -Committee on Reviewing the Return to the Town. Motion Carried 5:0:0. Chairman Pacino-asked Mr. Hooper to carry back the message. Mr. Hooper stated that he has,spoken to the Wilmington Town Manager and Town Selectman as this is a concern for all of them. Mr. Hooper is hoping to get a little more detail on what.occurred at the Reading Town Meeting. Mr. Hooper stated that he will wait and see how this works out. Mr. Ensminger announced that he has the wording of the motion on his phone and read 'Move to instruct the Board of Selectmen, in. light of the Town's difficult financial situation, to study the Reading 'Municipal Light Department with an objective of increasing annual revenues to the Town of Reading,' Mr. Ensminger added that the final phrase, 'including the possibility of a sale' was struck by amendment and taken out. Reorganization of the RMLD Board -Committee Assignments Chairman Pacino announced there are three ,basic sub -committees: the Audit Committee, the Policy Committee, and the General Manager's Committee. Chairman Pacino stated that he sees no reason to discontinue any.of these. Chairman Pacino is on the Audit Committee and wants to stay there. Mr. Stempeck is also on the Audit Committee -does he want to stay there? Mr. Stempeck stated he would switch it up a little bit . and remove himself from that committee. Mr. O'Rourke volunteered to take Mr. Stempeck's place. Vice Chairman Hennessy will remain Chairman of the Policy Committee. Chairman Pacino opted to rotate off 2 Reorganization of the RMLD Board -Committee Assignments that committee and was replaced with Mr. Stempeck. Mr. Talbot remains. The General Manager's Committee will consist of Chairman Pacino, Vice Chairman Hennessy, and Mr. Talbot. Chairman Pacino asked who was responsible for Accounts Payable this month? 'Ms. Schultz answered Vice Chairman Hennessy and stated she would be sending out a/schedule. Mr. O'Rourke remarked there are some who can't -do Accounts Payable or Payroll. Ms. Schultz affirmed, stating no Board Member can do either for three years in a row. Mr. Talbot has signed both Payroll and Accounts Payable the last three years; therefore, he is not assigned either this year. Chairman Pacino stated he is first back up for Payroll since he lives closest and asked if the Audit Committee met With Mr. Fournier on a regular basis. Ms. Markiewicz replied that it wasn't a regular meeting; it was mostly at year end. Potential Telecom Revenue - Dave Talbot Mr. Talbot began by thanking Mr. Ensminger for attending the meeting. The Town Meeting Instructional Motion was about how RMLD can generate more revenue -One of the areas we need better awareness of is what we can do with our fiber optic telecommunications network. It goes through all four towns and was built about 15 to 20 years ago, and over time leasing activity has increased, so without even trying we've seen revenue increase. It's the one area where revenue is growing. Mr. Talbot disclosed that in his day job he studies municipal light plants and what they can do. There are 41 electric municipals in Massachusetts and 15 are in the telecom business. High speed connections are things that businesses, institutions,. schools, and towns need. For RMLD to provide this service would require engagement of the governing bodies of all four towns and the schools, to see what's being done elsewhere and see what the Department can do. There's leasing and. municipal (although Mr. Talbot added that he understands Reading is already doing well with that), school agencies, or public safety applications. Mr. Talbot stated that he doesn't know what the answer is. But if you build it, they will come. This is a discussion we should be having. What can we do, to offer businesses service that is cheap and fast? We're already seeing revenue growth in this; it's time to set up a formal division. Vice Chairman Hennessy referenced a seminar.that some of the Commissioners had attended at Harvard. Fiber was billed as the future. Vice Chairman Hennessy asked Mr. Talbot to elaborate on that point, since many people view it as a passing fad. Mr. Talbot explained that it is misleading to say that wireless is going to replace fiber when we move to 5g. The reality is that when we move to 5g we'll have smaller transmitters with higher capacity and.shorter ranges; they will need fiber backhaul. The equipment has a 30 to 40 -year lifespan and that is as future proof as.you can get. Fiber does replace copper but there isn't something else beyond fiber. Mr. Talbot asked Mr. Ensminger if he had any thoughts. Mr. Ensminger responded that when he hears revenues lighting up, he lights up. Chairman Pacino added that Mr. Ensminger is a former Board Member 2002-2005. Mr. Talbot added that there are lots of critical upgrades going on behind the scenes at RMLD and Ms. O'Brien is leading the way. General Manager's Report - Ms. O'Brien Ms. O'Brien explained that the Northeast Public Power Association (NEPPA) Annual Conference will be held from 3 General Manager's Report - Ms. O'Brien August 20-23, in Newport, RI. Ms. O'Brien stated she may not be able to attend, but wanted to 'get authorization from the Board in the event she chooses to. go. Chairman Pacino stated he had already booked his room and Vice Chairman Hennessy stated that he was going as well. Ms. Schultz will circulate the reservation information to the remainder of the Board. Mr. O'Rourke made a motion, seconded.by Mr. Stempeck, to grant General Manager Coleen O'Brien Board. Approval to attend the NEPPA conference August 20 through 23'. Motion Carried 5:0:0. Ms. O'Brien then introduced Ms. Markiewicz, Chief Financial Accountant, to present the Operating Budget. Review of RMLD's Fiscal Year 2018 Operating Budget Ms. Markiewicz started with the Six=Year Plan, and explained that it is a high-level profit and loss statement. It shows sales revenue. We are trying to estimate a decrease of a half a percent every year, which is consistent with the prior year's Six -Year Plan. Operating expenses are staying consistent with a 3 percent increase in operating and maintenance expenses and general administrative expenses. We're trying to get as close as we can to an 8 percent rate of return. Ms. Markiewicz then moved on to the detailed profit and loss for the Budget FY18, and asked Ms. Parenteau.to present the, revenue portion. Ms. Parenteau stated that the Operating Revenue for FY 18 is estimated to be $26.3 million. That can be funded in one of two ways: if there -is an increase in sales or by a rate increase. Over the last ten years, sales have been flat, and decreasing, so this budget has assumed flat growth. To increase revenue, a rate increase is necessary across all classes of customers. A Cost of Service Study was done, and there was a presentation to the Board on April 20. There was a presentation to the CAB on April 2 and there will be a follow up for a final recommendation to the CAB on May 24.Once,the CAB's recommendation is received, the rates will be brought 'to the Board for approval. Increases will range anywhere from 3 and a half to 7 percent, and that will depend on customer class and usage. RMLD is also looking to implement changes with how capacity and energy are charged within the industrial class. One of the increases you'll see further in the budget is the increase in capacity from this fiscal year to last fiscal year. It's currently estimated to be an increase of $4 million dollars to the Department in capacity alone. Those costs are a pass through to customers; the Department does not make any return on that. However, it's a 4 to 5 percent increase for every customer in just power supply. Ms. Markiewicz then began with the Operations and Maintenance Expenses, stating that the percentage of change reflects the 2017 budget to the 2018 budget: Any fluctuation may be due to working more on the operating or capital expenses this year. Ms: Markiewicz then said that she would go through each line item. FERC.580 Supervision and Engineering are going up 26 percent. This includes engineering labor with overtime, and department expenses including vehicles and training. This is also anticipating two new engineering positions. FERC 581 Station Supervisor is labor with overtime, as well as vehicles and training. There's an increase due to the shift from capital to operating. FERC 581 Line General include Line Department training, employee time off, and weather related, time working in-house instead of in the field. That went down 29 percent because they're going to be doing more capital work this year. FERC 582 Control Room is Station Operator labor with overtime and department expenses. 4 Review of RMLD's Fiscal Year 2018 Operating Budget FERC 585 Street Lighting is routine patrolling and repairs and maintenance by T -Men; it is going up 16 percent because there were more repairs and maintenance than we had anticipated. i FERC 586 Meter General is comprised of Meter Department labor with overtime and expenses, vehicles, and training. This is down 11 percent due to capital projects. FERC 588 Materials Management is Purchasing expenditures. This includes labor, stockmen, some educational expenses, some telephone and copier expenses, and department expenses. This is shifting down 3 percent due to a temporary hire. FERC 590 Maintenance of Structures and Equipment are station tech labor with overtime, training, vehicles, and supplies. RMLD is looking to add one station tech operator this year. FERC 593 Maintenance of Lines -Overhead is staying stable. This.includes-line labor in the field, overtime, police details, and tree trimming. This is $1 million net capital. FERC 594 Maintenance of Lines -Underground is comprised of underground labor with overtime, vehicles, and supplies. This is going up 59 percent due to more operating expenses versus capital. FERC 595 Maintenance. of Line -Transformers is an estimate in case of transformer leaks, battery disposal, or hazardous waste., FERC 596 Maintenance of Streetlights is T -Men changing out bulbs and fixing lamps in the field. That's going up because the amount of need it was underestimated in the past. Ms. Markiewicz then moved on to General & Administrative Expenses. FERC 902 Meter Reading is meter reading labor and meter department expenses. This is going up due to contractual increases and retro pay. FERC 903 Customer Collections is comprised of labor, education, and supplies for Accounting, Customer Service, and the IT department. RMLD is looking -to add one IT billing person, which is why there is an increase of 11. percent. FERC 904 Uncollectible Accounts usually holds steady at $150,000. FERC 916 Energy Audit and Conservation is decreasing less than one percent. It is� comprised of Integrated Resources labor, education, supplies and conservation programs. FERC 920 Administrative and General Salaries will decrease by 10 percent due to the departure of some longtime employees. This is General Manager's labor, Human Resources, Community Relations, CAB, E&O Director, Facilities Manager and some of the Business Director's time as well. FERC 921 Office Supplies is going up a quarter of a percent due to increases in product costs. FERC 923 Outside Services is made up of legal fees, consulting fees, audit fees, and fees for software consulting. This is increasing 13 percent mostly due to increases in vendor fees. Mr. O'Rourke asked giving net changes, looking at 2018 budget relative to the 2017 Budget? 5 Review of RMLD's Fiscal Year 2018 Operating Budget Ms. Markiewicz answered the 2017 budget. This is not what was actually spent, but what was budgeted in 2017. As, opposed to where we are now, which is 8 months actual and 4 months remaining in the budget. Mr. O'Rourke stated he would have thought the actual full budget would have given a better depiction. Mr. Stempeck clarified with Mr: O' Rourke that he was saying it's better to have more actual than estimated. Mr. O' Rourke replied that we're looking to measure our actual spending in 2017 and how much that's going up in 2018. ' Ms. Markiewicz explained the reason that wouldn't be as accurate is that you really don't know how much you're going to spend in the last 4 months. Sometimes you're trying to rush to get projects done to meet budget, or there are timing issues. Mr. O'Rourke stated that makes sense. In some businesses the budget tends to be an artificial. number where it doesn't matter if it's met or not met. Ms. Markiewicz said. as it stands right now we're on target, and then continued on to the next line item, FERC 925 Injuries and Damages, which is comprised of some property damage claims, workers comp, and disability insurance. This is going down 8 percent due to a subrogate assisting with RMLD claims. FERC 926 Employee Pension and Benefits could change. The issue is that, at the end of the year, there could be a last-minute pension calculation that could change this number drastically. The prior year,)the auditor changed it by $402,000. We can only stay on target with what we know. This is due to unfunded liability. FERC 930 Miscellaneous General Expenses is a catch all that includes dues, education, supplies, drug testing, background checks, community giveaways, promotional items, and the historical calendars. This is going down 5 percent. FERC 931 Rent Expense is going to stay the same based on RMLD's contract with JCM Realty. Rent does not include snow removal. FERC 935 Maintenance of, General Plant includes software, ITRON, the RMLD website, GIS, SCADA, and engineering software. This is going up about 56.6 percent. RMLD hasn't had a lot of automation and is moving in that direction to improve efficiency. FERC 935 Maintenance of Building & Garage is comprised of heating oil, gas, paint, carpeting, water, plumbing, snow removal and ground services. That's going up about 14 percent. Chairman Pacino asked if -931 is the rent for the garage out back. Ms. Markiewicz answered yes. Chairman Pacino asked for a breakdown of the amounts of health insurance and retirement in 926. Ms. Markiewicz stated she can get that, and added that the health insurance is increasing. Ms. O'Brien said that she knows this is a new format, but everyone will get used to it. FERC coding is a set of standardized utility accounting principles. It puts employees on the same page.. Mr. Ensminger asked if the financial software program Ms. Markiewicz is using is Munis. 6 Review of RMLD's Fiscal Year 2018 Operating Budget Ms. Markiewicz answered that it is Great Plains. Mr. Ensminger asked, if money needs to be moved from one line item to another, who has the authority to approve the transfer? Chairman Pacino answered that it would be the General Manager. Ms. Markiewicz stated that RMLD doesn't do a line item budget. Chairman Pacino added that the budget is reported on monthly, so that the Board can question it. Ms. O'Brien answered that there is a little bit of room in the FERC accounting for where activities/assets are placed, but once Ms. Markiewicz and Ms. O'Brien agree on what goes where, it, will not change. Typically you wouldn't move these around. FERC allows some expenses to go into multiple categories, but once it's decided it stays there. Mr. Stempeck stated that makes sense, otherwise it wouldn't be consistent year to year. At this time, Mr. Ensminger left due to another meeting. Ms. Markiewicz continued with her presentation, stating FERC 403 Depreciation is increasing because plant is increasing. Depreciating plant is at 3 percent and is staying consistent. FERC 408 Voluntary Payments to Towns are increasing by 3.8 percent. That's based on two percent of RMLD's net plant. Plant goes up -payments go up. FERC 419 Interest Income is going up 20 percent, which may appear odd. It's simply because it has been underestimated in the past. This is cash reserve money that's getting interest income. This includes depreciation fund, rate stabilization, sick buyback, and the customer deposit fund. FERC 419 Other Income is scrap metal and other small areas of money that come in. FERC 426 Return on investment to the Town of Reading includes loss on disposable plant at the end of the year. Return on Investment is based on the CPI index. It is going up 1.4 percent. FERC 431 Interest Income is interest to customers when they.close out their accounts and request their customer deposits back. The bottom line net income targeting $4.1 million, or $4.5 million for a 6 percent increase. Then, if you go down to the rate of return calculation, you add back your return on investment to the Town and your loss on disposal, and then you-subtractyour Interest Income and in that Other Income number is construction of about $400,000 so your net $6.1 million as compared to 8 percent of your net plant, $6.3 million, giving you a 7.75 rate of return. Mr. Stempeck stated that's pretty close to the maximum 8 percent rate of return. Ms. Markiewicz moved on to Projected Fixed and Semi -Variable Costs. This is fixed costs and what we have available to move things around in. 82.68 percent is fixed in the FY18 total budget. About 74 percent are our Power costs -Fuel, Capacity and Transmission. The Depreciation Expense is 4.6 percent,. Return on Investment to the Town of Reading is 2.5 percent, above the line Town Payments are 1.5 percent. Disposable losses are less Review of RMLD's Fiscal Year 2018 Operating Budget than a quarter percent. The 17.3 percent of the budget that remains is what RMLD has to move across the various categories. Labor and Employee Benefits/Pension take up about 11 percent of that. Mr. O'Rourke remarked that there's not a lot of room for discretionary expenditures. Ms. Markiewicz answered that it really puts it into perspective. Vice Chairman Hennessy noted that the. two biggest semi -variable costs are 'relatively fixed as well. Ms. Markiewicz concurred, citing the labor contracts. Mr. Talbot asked how many new staff positions are being contemplated. Ms. Markiewicz stated that RMLD is hoping to hire 2 new employees in FY18. The talent is not out there. There are an additional 7 previously approved positions that are still vacant. . Ms. O'Brien stated that some of the delay in hiring is because of the talent and skill level needed due to a lack of succession planning. RMLD is not in a position where it can hire completely green people for certain descriptions. We're also developing career development programs and rewriting job descriptions; each one must go through their respective union. That and trying to find the talent is creating the lag. Mr. Talbot asked if additional staffing was being considered. Ms. Markiewicz explained that there are currently 74. employees; if we were to staff what has already been approved that number would go up to 83. i Ms. O'Brien added that, in the past, the Department has typically had 80 to 83 employees. There have been a number of retirements. Those positions have been kept on the books. The intent is to fill them as part of the organizational restructuring. Ms. O'Brien explained the 2 positions Ms. Markiewicz was referring to are replacing one station tech operator and hiring an additional billing individual in IT. Mr. Talbot revealed that the reason he was asking was because he thinks there should be some telecom expertise in house: Ms. O'Brien explained you have to be very careful spending electric funds on fiber. We need to stay within the parameters of what is allowed. Mr. Talbot explained that the spirit of what he's saying is that it would be good to have some in-house expertise who can answer questions and identify telecom opportunities. In the next year or two we should be thinking of developing one person in the Department. Mr. Stempeck said that would be part of the output of the Committee that was formed tonight; finding new revenue and enhancement. Chairman Pacino reminded the Board that we're in the wires business. Mister Talbot reiterated that there are fifteen other light plants are in the fiber business; by accident we are too. Ms. O'Brien clarified that the fiber was built for the use of the electric company, and any revenue that.the electric Review of RMLD's Fiscal Year 2018 Operating Budget company makes from surplus goes to the electric operating funds. If you change that you would have to develop another set of books. Ms. Markiewicz added that you need to set up another entity. Mr. Hooper clarified that RMLD is currently short nine employees, which Ms. Markiewicz affirmed. Must have noticed deficiencies; tough to operate. Is RMLD still carrying pay for those nine employees? It has been over a year; where does that money go to? Ms. Markiewicz answered that it just sits in the Operating Fund. Mr. Hooper clarified that money from those nine salaries from last year carries forward? Ms. Markiewicz answered yes, and when we fill the positions we disperse the cash accordingly. Chairman Pacino asked if there were any comments or questions on the Operating Budget, which will be voted on tomorrow night. Mr. O'Rourke added that if you approve the. Operating Budget and then have issues. on the Capital, they're related; you don't want to approve something and then undo it. Because the RMLD Procurement Request Requiring Board Approval is Capital Budget related, the Board opted to vote on IFB 201740 the following evening. RMLD Board Meetings Chairman Pacino and the Board conferred that the third Thursday of every month will be the meeting date. The next meeting will be on June 15. Mr.,Stempeck will be unable to attend. Ms. O'Brien asked, in regards to the Strategic Meeting, is it a committee or -a meeting? Chairman Pacino answered: meeting. Mr. O'Rourke stated that the last time committees were redone the Board updated their contact numbers. Ms. Schultz stated she would circulate ani e-mail tomorrow. Adjournment Mr. O'Rourke made a motion, seconded by Vice Chairman Hennessy, to adjourn at 7:09 pm. Motion Carried 5:0:0. Executive Session: Executive Session was posted in the event discussion relative to competitively sensitive issues relative to labor issues or real estate acquisitions arose. There was no such discussion, therefore no Executive Session was held. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. David Hennessy, Secretary Pro Tem RMLD Board of Commissioners M J. READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS REGULAR MEETING 230 Ash Street Reading, MA 01867 . May 11, 2017 Start Time of Regular Session:4:10 p.m. End Time of Regular Session: 7:09 p.m. Commissioners: Philip B. Pacino, Chairman David Talbot, Commissioner David Hennessy, Vice Chairman, Secretary Pro Tem Thomas J. O'Rourke, Commissioner John Stempeck, Commissioner Staff: Coleen O'Brien, General Manager Tracy Schultz, Executive Assistant Hamid Jaffari, Director of E & O Citizens' Advisory Board (CAB): Jason Small, Member Call Meeting to Order Vice Chairman Hennessy called the meeting to order and explained that the meeting is being taped for distribution in Reading, North.Reading, Lynnfield, and Wilmington. read the RMLD Board of Commissioners Code of Conduct. Vice Chairman Hennessey explained that Mr. Pacino was currently absent, but was believed to be on his way to the meeting. Opening Remarks and Introductions Vice Chairman Hennessy explained that the Operating Budget was presented the previous evening, and the Board would be reviewing the Capital Budget tonight. Chairman Pacino entered the meeting and stated that he had been caught in traffic for two hours. Chairman Pacino welcomed CAB member Jason Volk, who had no comment. There were no liaisons present and no public comment. Ms. O'Brien explained that herself and Mr. Jaffari, Director of Engineering and Operations, would be presenting the Capital Budget. After, a vote will be taken on both the Operating and Capital Budgets. Review of RMLD is Fiscal Year 2018 Capital Budget Mr. Jaffari explained that the presentation this year is different; and that he would start with an update on the „status of projects that the Board has already authorized funding for. The review of FYI projects commenced with projects that have been completed or are scheduled to be completed by June 30; 2017. The first is distributed generation; which was budgeted for $2.7 million. Due to competitive bidding, the project is'under budget. The generator is scheduled for delivery on June l -and will be fired up the first week of July. Once that is running it will help RMLD get credit on capacity and transmission. The HVAC upgrade project is completed. Various upgrades at Station 4 have been completed, including a 35kV potential transformer replacement, relay upgrades, and SCADA integration for bus. The only thing left to do is the getaway replacement. This is a cable _ replacement to increase capacity of the feeders and contractors are currently replacing those 2,800 feet of cable. The Station 5 LTC control replacement project and the Substation Equipment Grounding are completed. The RTU Replacement is the communications device between Station 3 and SCADA in the Control Room. That's installed and is being wired and programmed. The Analog Devices Cap Bank was finished a few months ago. The Control Center modification project in progress. Mr. Jaffari then moved onto the projects continuing in FYI 8. The LED Streetlight Upgrades are approximately two- Review of RMLD's Fiscal Year 2018 Capital Budget thirds completed and are on schedule. The Towns should start seeing the benefits and the savings. RMLD committed to changing out 2,450 each year, so the project will be completed by July 1, FY19. The GIS data collection is completed, and now the data is being checked and reviewed.. It will be over 98 percent accurate, and that should be done by September or October 2017. There will be some data integration to other systems in 2018. The Grid Modernization, Phase One project will be continued. Four switches were installed as part of a pilot program last year. RMLD is already started to see the benefit of these installs, with an increase in reliability. The search for land for a new Wilmington substation continues. There is one promising location. Ms. O'Brien.is negotiating as to whether the land will be purchased or leased for 99 years. Both options are a possibility. Planning and Zoning may require purchase because RMLD is a not-for-profit. However, there are other issues. Ms. O'Brien explained that it is a frontage issue. If you buy the land, you take away frontage from the owner, which creates a problem. However, if you lease the property.the owner gets to keep the frontage. Mr. Jaffari added that the land is close to a wetland and may require a permit from the Conservation Commission. Chairman Pacino asked if leasing the land would become Capital and increase investment in the plant. Ms. O'Brien stated that she would have to check with Ms. Markiewicz. Vice Chairman Hennessy stated that if you purchased it, that would definitely be the case, but that a 99 -year lease is almost like purchasing. Ms. O'Brien stated that FERC Accounting has a code for Land Assets. However, when you lease it, it doesn't fall under that category. Mr. Jaffari continued his presentation, moving on to the Padmount Switchgear Upgrade. There are 25 of them and it is a 6 -year replacement program. The firest five targeted to be upgraded are in River Park, Wilmington. This is the only project that is behind schedule due to the late. arrival of -the switchgear. It was supposed to be delivered in mid-March. However, it will not be delivered until late June. 95 percent of the projects that were budgeted for last year are completed. Mr. Talbot asked if the gas generator that is supposed to be ready on. July 1 was initially scheduled to be in operation by June 1, and stated his hope that the peak would occur after July 1. Mr. Jaffari answered in the affirmative to both. The delay was due to a contract issue, with the performance bond taking longer than expected to be acquired, and permitting. Mr. Talbot then asked if failure sensors for transformers -exist, and clarified that RMLD does not have them. Ms. O'Brien asked Mr. Talbot if he was referring to a fault detector on a feeder. Mr. Talbot explained that it is a piece of equipment that indicates something has changed and that there is an imminent decline of transformer performance. Mr. Talbot said the reason he was asking was because one blew up. Ms. O'Brien stated that was a lightening arrestor. It's an arc shoot and is supposed to prevent damage. Some of the polymer on this particular one melted. Ms. O' Brien asked Mr. Small if he has ever encountered the polymer melting. Mr. Volk answered in the negative, but stated he has lost a few due to animal contact right at the top 2 Review of RMLD's Fiscal Year 2018 Capital Budget of the arrestor. Mr. Jaffari stated than earlier he was referring to substation transformers.,Some types of pole transformers might have internal fault detectors. Mr. Jaffari then continued his presentation, stating that the Padmount Switch Gear won't arrive until late June, therefore it may not be completed this year. Good progress is being made on the Station 3 relay upgrades and SCADA integration. The substation has intrinsic design flaws. The fault current is too high for the transformers that were originally installed. The relays need to be upgraded as well. LED lighting at 230 Ash Street, carpeting, and Electric Vehicle Supply Equipment are all also.projects in progress. RMLD will be installing an Electric Vehicle Supply charging station in each town. Mr. Stempeck asked how much a charging station costs. Mr. Jaffari explained that it depends on the construction and RMLD has received grant money. Without the grant money $20,000, but it could go up to $50,000. Mr. Talbot asked if members of the general public would be able to park and charge their vehicles. Ms. O'Brien explained that it would not be a free service. Mr. Jaffari then began explaining the new projects for FY18. In order to compensate for the Station 3 Design flaws, and to lower incident or arc energy, RMLD will be installing one set of reactors for -each of the two transformers. That is estimated to cost $561,000 and the Board will be voting on the bid tonight. The next project is 35kv underground cable upgrade. These are the underground lines that feed Station 5 from Station 4. They are 30 years old. This is a 3 -year project. One failed this last year and had to be replaced. Mr. Stempeck asked if that failure is catastrophic. Mr. Jaffari answered that the cables are in water and small pin holes continue to their failure. However, when one fails the load is transferred to the other transformers, so customers only experience a 10 or 15 second outage. The design for the Pole Line Upgrade on Woburn Street in Wilmington is underway -The construction starts in the fall. The 115kv Transmission Line Upgrade is necessary due to aging equipment. Two poles failed this year and emergency measures needed to be taken. Mr: Jaffari stated that he didn't expect the equipment to fail so soon. 6 more poles need to be replaced. These are the lines from Eversource that are feeding the substation. It is a 2 year project. The pole replacement program is ongoing. Every year we test 640 poles. The poles that fail are immediately replaced. Some poles marginally pass and we're planning on upgrading those. Mr. Jaffari asked residents to be patient and stated that RMLD is doing the best it can to address double pole issues. RMLD is quick to respond to transfers but doesn't have control over Comcast or Verizon. We are trying to expedite the process. 3 Review of RMLD's Fiscal Year 2018 Capital Budget Another surprise that was encountered last year has necessitated the Secondary and Main Replacement project. Due to aging equipment neutral connectors have started failing. Over the next 10 to 15 years, so many are going to be replaced that contractors will need to be brought in to assist. This was voted on at the April Board Meeting. This is continuous. The contractors will augment RMLD staff. RMLD has dedicated crews that have lists of the oldest to newest neighborhoods. Miscellaneous projects include a power washer, remote SCADA room, partial roof repairs, lobby insulation, new chairs, and battery storage. These are all one year projects and are estimated to total $230,000. Mr. Jaffari then began his presentation on Annually Budgeted and Recurring Projects. For FYI 7, estimated Miscellaneous Computer Hardware and Software Upgrades were $152,000 and $340,000 is being estimated for FY 18. The Rolling Stock Replacement of trucks and vehicles is. estimated at $230,000 for FY18. AMI mesh expansion for Club 500 that Itron had no solution for is continuing. It is a very smart system that can be used for distribution automation as well as metering. This system will be integrated with Cogsdale. Smart -Grid Fiber Nodes Expansion will be an asset that will communicate with substations and bring information back to the Control Room. We're going to create more fiber nodes. 13,8kV upgrade many of the step-down areas from 13,800 to 4,160 voltage. Mr. Jaffari stated that Underground Facilities is an area of major concern for him. Last year there were a few areas where we did not expect such catastrophic failure. This was due to aging equipment. In one case, we wanted to replace one transformer and ended up having to replace the entire neighborhood (about 10 or 15 transformers). It wasn't planned but it was necessary. Spending on Routine Construction was forecast for $1 million last year. Unfortunately, $1.6 million had to be spent due to unpredicted failures in multiple old neighborhoods that needed attention. New Customer Services cost $140,000 in FYI and are projected to cost $156,000 in FYI 8. Miscellaneous Purchases transformers substation equipment going up due to transformer load management and upgrades. Every year we replace at least 150 to 200 aging transformers to avoid oil leak. We're trying to catch up. Mr. O'Rourke asked what the New Customer Services entailed. Ms. O'Brien explained that was hooking up new customers. Mr. Jaffari continued, stating in summary, in FYI $9,406,000 was budgeted and spending is estimated to be $9,695,000. The spillover is due to the unexpected equipment failures. The planned spending for FYI is $7,696,000. Mr. O'Rourke asked if there is a formula that the RMLD uses to arrive at a range of depreciation. Ms. O'Brien referred to page 19, which is the Six Year Plan-Capital.that the Board saw last year. There's a chart on the bottom that lines up with .the columns above. It starts with capital plant service, additions, adjustments for retirements, accumulated reserve, net plant and service, maximum allowed return 8 percent, depreciation 4 Review of RMLD's Fiscal Year 2018 Capital Budget fund, beginning balance, and interest earned. We have all this maintenance and all these projects to do, and we could tell the DPU we're going to go to a 4 percent depreciation rate. But, our strategy is to keep it at 3 percent and instead of putting a typical $1.5 million in the operating fund, we transfer $2.5 million in and use that money at the end to prevent from having to go to bond. The ending balance is low, but we're doing a lot of work. FY21 is targeted to be back up $4 million, when we'll be done with the lack of maintenance and will only be spending what we put in. This has been quite a process to completely rebuild parts of the system. The amount of equipment and long and short term planning is a huge amount of work. Mr. O'Rourke replied that he thought we would be spending more in FY18. Are we funding the Capital Expense Budget sufficiently?. Ms. O'Brien replied that it is starting to go down. -The $5.7 million bonding for the substation is almost even with what we're putting in. Mr. Jaffari added that he is hoping that there are no surprises and we don't have to keep spending. Mr. O'Rourke stated that the last Capital Expense Budget was tied to the study. Is there anything recommended in the study that we didn't get to or didn't do? Mr. Jaffari answered yes, doubling up the underground getaways out of Substation 3 and Substation 4. Booth & Associates recommended doubling up feeder cables. However, the heat index in the conduits is not going to buy us much. We've decided to go an alternate route and build a new substation. That will transfer the load so that the feeders go into normal range. Ms. O'Brien added the answer is yes, but we're. meeting the intent of the recommendations but using a more holistic approach. Mr. O'Rourke asked when the next summary of progress on both studies would be. Ms. O'Brien reminded Mr. O'Rourke that RMLD has been providing quarterly updates. Mr. Talbot asked for further information on Project 98 Office Renovations. Ms. O'Brien read: carpet, remodel Accounting area, replace broken office conference chairs: $92,000. Mr. Talbot explained he has a question specifically about the remodeling of the Accounting area and whether it is necessary. Ms. O'Brien replied that it's a privacy issue; keeping people out of Accounting is becoming a problem. There's confidential information. The design is still pending. Mr. Talbot asked how much would a wall be? Ms. O' Brien replied -maybe $30,000; sprinklers, electrical, and HVAC will need to be moved. It's not clear yet how to meet the objective. It could cost less. Mr. Talbot stated that he is questioning the need to build a wall in an underutilized building with empty space. Mr. Stempeck stated that he is not sure that he agrees. You need to provide good working conditions. If employees leave due to things getting shabby, recruiting costs would far outweigh the cost of wall. Ms. O'Brien asked Mr. Talbot to show her an area that is under-utilized. IT needs to be designed so that it's only Accounting. You need an area where people can discuss Payroll. You can't have people walking around; it must be a semi -confidential area. Ms. O'Brien asked Mr. Talbot where else in the building he would suggest. 5 Review of RMLD's Fiscal Year 2018 Capital Budget Mr. Talbot answered that he was just questioning the need to build more partitions. Chairman Pacino stated that you need to keep people out of Accounting. We have to spend money to make money. If we don't spend money in Capital then we don't make the 8 percent. If you. want to devastate the 8 percent, cutback on the Capital. Mr. Talbot stated that we're here to look at these things and ask questions. Ms. O'Brien explained that a significant amount of issues have occurred in the last one -and -a -half to two years. There are three collective bargaining units. Open space makes discussions very difficult. You need to enclose people and.sensitive dialogue. Chairman Pacino added that this is a management decision, why we hired a General Manager. This is not an area a Board should decide. Ms. O'Brien stressed the fact that she has been trying not to spend money. If employees are tripping on carpet it must be replaced. People hurting their backs on chairs that are 25 years old means that those need to be replaced. The repairs to the leaking roof are a partial bandage. We're only doing what is absolutely necessary. Mr. O'Rourke added it's appropriate as Commissioners to question line items; that's what we're here for. The RMLD has some unique circumstances on how profitability is calculated. From his perspective, the process has served its purpose: Mr. Talbot raised a valid question and Ms. O'Brien gave a good answer. Mr. O'Rourke then asked Mr. Jaffari and Ms. O'Brien if they are comfortable with the budgets; are there enough monies being approved to run the utility? Ms. O'Brien answered yes, and added that she is typically not comfortable with the depreciation going, under one million. Saving that for substation purchase best we can be out of woods in another year and a half where at a level we can maintain. Mr. Jaffari is doing a great job; he is getting the work done for a lot less money than it would have cost. He is prudent, efficient, conscientious, and safe. CAB member Mr. Cohen entered the room. After some confusion, he realized he had come to the RMLD in error and left. Vice Chairman Hennessy made a motion, seconded by Mr. Stempeck, that the RMLD Board of Commissioners approve the Fiscal Year 2018 Capital Budget dated March 31, 2017, in the amount of $7,695,715 as presented, on the recommendation of the General Manager. Motion Carried: 5:0:0. Mr. O'Rourke mentioned that there is a letter from the CAB. Chairman Pacino answered yes, the CAB did recommend approving the budgets, which Mr. Volk also confirmed. Review of RMLD's Fiscal Year 201.8 Operating Budget Mr. Talbot stated hewanted it on the record that bringing on an employee with telecom expertise could help us down the road. Mr. O'Rourke asked; if Ms. O'Brien (with support of the Board) determined that an unbudgeted position was critical to the success of RMLD's operations, would she have the discretion and wiggle room to hire an additional employee. Ms. O'Brien stated that the engineering jobs that are currently open have descriptions that talk about fiber. Review of RMLD's Fiscal Year 2018 Operating Budget Having a job description that talks more about marketing fiber as- a separate business would require the creation of a new job description, which would need to be run through the union. A different set of books would need to be created, and possibly an LLC if RMLD was to split and go into a different direction. Chairman Pacino announced that he wants to have another Strategic Meeting sometime in June. Ms. Schultz will coordinate a date and time with the Board. Vice Chairman Hennessy stated that he is supportive of fiber; it is the one area where RMLD has growth. Mr. Pacino reminded the Board that the CAB recommerid Board approval of both budgets. Vice Chairman Hennessy made a motion, seconded by Mr. Stempeck, that the RMLD Board of Commissioners approve the Fiscal Year 2018 Operating Budget dated March 31, 2017, with a Net Income of $4,114.,622 as presented, on the recommendation of the General Manager. Motion Carried: 5:0:0. RMLD Procurement Requests Requiring Board Approval . IFP 2017-40 Current Limiting Reactors at Substation 3 Chairman Pacino then announced that the Board has a bid from the previous evening to approve. Mr. Jaffari presented IFB 2017-40 Current Limiting Reactors at Substation 3, explaining there is a Design flaw at Station 3. This will lower the incident energy. A request for bids was sent to 9 companies. Wesco was the lowest responsive and responsible bidder. Mr. Talbot asked how many responsive bids were received. Mr. Jaffa(answered that RMLD received two responsive bids. Mr. Stempeck made a motion, seconded by Vice Chairman Hennessy that proposal 2017-40 for Current Limiting Reactors at Substation 3 be awarded to WESCO for $145,440 pursuant to M.G.L. c. 164 § 56D, on the recommendation of the General Manager. Motion Carried: 5:0:0. J Chairman Pacino stated that he would review the minutes for tonight and the previous evening. Whoever signs the Accounts Payable will serve as Board Secretary for that month. 1 Motion to Adjourn At 7:09 p.m., Mr. Stempeck made a motion, seconded. by -Vice Chairman Hennessy,'to adjourn. Motion Carried. 5:0:0. Executive.Session: Executive Session was posted in the event discussion relative to competitively sensitive issues relative to labor issues or real estate acquisitions arose. There was no such discussion, therefore no Executive Session was held. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. David Hennessy, Secretary Pro Ten) RMLD Board of Commissioners 7 READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS MEETING 230 Ash Street Reading, MA 01867 July 20, 2017 7:30 p.m. Start Time of Regular Session: 7:31 p.m. End Time of Regular Session: 8:46 p.m. Commissioners: Philip B. Pacino, Chairman Dave Talbot, Commissioner Dave Hennessy, Vice Chairman, Secretary Pro Tem John Stempeck, Commissioner Thomas O'Rourke, Commissioner Staff: il Hamid Jaffari, Director of Engineering & Operations Tracy Schultz, Executive Assistant Jane Parenteau, Director of Integrated Resources Citizens Advisory Board (CAB): Neil Cohen, Member Call Meeting to Order ; Chairman Pacino called the meeting to order and announced that the meeting is being videotaped at the RMLD office at 230 Ash Street, for distribution to the community television stations in Reading, North Reading, Lynnfield, and Wilmington. Opening Remarks Chairman Pacino read the RMLD Board of Commissioners' Code of Conduct and welcomed Mr. Cohen from the Citizens' Advisory Board. Public Comment There were no Board Liaisons present. Mr. Talbot commented that April, 2018 presents a deadline for certain solar renewable energy credits. The Board would like to encourage the submission of development proposals for solar generation, both public and private. The deadline is real and these credits might be drying up. Chairman Pacino verified that the Board agrees. Vice Chairman Hennessy asked what must be%completed by April? Ms. Parenteau answered that her group is in the process of looking that up. Mr. O'Rourke asked if there is anything RMLD needs from the Board. Ms. Parenteau replied that the Board has been very receptive in terms of giving direction, meeting with the Towns, and the amount of solar they are interested in achieving. Mr. Talbot clarified that there's been discussions regarding solar between RMLD and the Towns. Ms. Parenteau answered that she had met with representatives from Lynnfield and Wilmington, and would be meeting with Reading representatives tomorrow. Chairman Pacino announced that Ms. O'Brien and Ms. Markiewicz would not be in attendance this evening. Approval of Board Minutes (Attachment 1) , Mr. Hennessy made a motion, seconded. by Mr. O'Rourke, that the Board approve the minutes of September 29, 2016, October 20, 2016, December 15, 2016, January 31, 2017, February 23, 2017, March 23, 2017, and April 20, 2017. l Motion Carried: 5:0:0. Regular Session Meeting Minutes 2 July 20, 2017 Report of the Chair Discussion of Reporting on Fiscal Year end versus Calendar Year end as required by State Regulators Chairman Pacino stated that he is looking for information from the Department �Currently, RMLD's financial statement is based on the fiscal year, ending of June. The Department of Public Utilities (DPU) uses the calendar year. The report that goes to the DPU is therefore due at. the end of the calendar year. It's a burden on the Department to produce reports for two deadlines. Chairman Pacino stated that he is looking for an idea of how much extra it costs having two different year ends. RMLD has had a calendar year end; it makes more sense, to have one cut off rather than two. Mr. O'Rourke suggested getting the Town Manager's perspective and considering the impact on the other Towns. Chair Pacino replied that, currently, he just wants data gathered -when RMLD had a calendar year, audit costs were less. The information that goes to the DPU should be final. Mr. O'Rourke then made a request that the Board receive a more up-to-date set of financials every month. It is hard to be nimble when given older information -couldn't implement anything. scorecard with an idea of what the financials look like. Power Supply Report - May 2017- Ms. Parenteau (Attachment 2) Ms. Parenteau reported on upcoming community events. On August 7, at 10 a.m. RMLD will be participating at Touch a Truck Day at 15 Central Street in North Reading. There will be another Touch a Truck Day on August 15 at 7:30 am at the Reading Library. RMLD will have a booth at the Reading Town Fair on September 10. RMLD is about to kick off an art contest for highschool students. There will be an information session on August 1. So far; 19 students in grades nine through twelve have registered. RMLD's Public Power Week Open House will be on Thursday, October 5th. Ms. Parenteau then presented the Power Supply Report. In May 2016 RMLD's portfolio was comprised of 15 percent renewables, which include, hydro,.wind and solar. Nuclear accounted for 14 percent and the spot, market was 15 percent. - 'Mr. O'Rourke then stated that he has been receiving automated calls about electric rates: effective on July 1. Mr. O'Rourke asked what the purpose of the telemarketing calls are. Ms. Parenteau explained that the robocalls are not from RMLD. The calls are intended for customers who are subject to deregulation and who can choose their. power .supplier. RMLD's rates are much lower than customers who can choose. Chairman Pacino encouraged customers to please call the Department with any questions. Ms. Parenteau added, as a message to customers, RMLD only charges. for what is used. Ms. Parenteau encouraged customers who are feeling "the pinch to reach out to RMLD for ideas on how to conserve energy. Mr. Talbot stated that if we can generate power in the- district then we're not. subject to increases in capacity and transmission charges. Ms. Parenteau returned to the Power Supply Report and a comparison between May 2016 and May 2017. In. the month of May 2016, the average cost of energy for RMLD's portfolio was 3 and a half cents. We paid a little under 10 cents for wind, solar was around 7 cents, and nuclear was less than a penny. The spot market was 22 cents and the system cost was 46 cents. `. Vice Chairman. Hennessy asked, why wouldn't we buy more nuclear if it's so cheap? Is the amount we can buy restricted? Ms. Parenteau answered that there's no more being built.and Pilgrim is being decommissioned. Vice Chair Hennessy asked you're buying as much as you can? Regular Session Meeting Minutes 3 July 20, 2017 Power Supply Report - May 2017- Ms. Parenteau (Attachment 2) Ms. Parenteau stated that is correct, and added that the energy component is cheap, but the capital costs to construct plants are significant. The projects that RMLD is involved in -Millstone and Seabrook -next year that debt service will be paid off. All the capital investments that we've made for nuclear over the past thirty years have finally come to fruition -the mortgage has been paid off, in a sense. That will help our customers by reducing costs. In May 2017, renewables increased to 22 percent. Nuclear increased to 17.56 percent. System power was 42.8 and spot market was around 15 percent. In May 2016, the average cost of energy was 3.5 cents. In May 2017, the average cost was 3 cents. These costs area pass through to customers, and are passed through by the fuel charge adjustment. Overall, year to year, there has been a reduction in the cost that we charge our customers. 40-50 Fordham Road; Wilmington Ms. Parenteau explained that RMLD has been working with a solar developer on a project at 40-50 Fordham Road in Wilmington. The size of the array is approximately 1.8 megawatts.AC. It is a 20 -year contract with Kearsarge Solar, LLC, a developer out of Watertown, MA. The project will be for 5,000 panels and generate 1,500 megawatt hours a year. This will be Phase 2 in RMLD's Solar Choice Program. RMLD has yet to begin a marketing campaign, but there are already 87 customers on the waiting list for community solar. Chairman Pacino verified. that this was approved by the CAB. Ms. Parenteau affirmed. Chairman Pacino then explained that the Board approved the*project in Executive Session on June 15, 2017, but now needs to take a vote in open session. Mr. Stempeck made a motion, seconded by Vice Chairman Hennessy, that the RMLD Board of Commissioners authorize the General Manager of Reading Municipal Light Department to finalize negotiations and execute a contract with Kearsarge Solar, LLC, for the output of a facility at 40-5.0 Fordham Road, Wilmington, Massachusetts. Motion Carried: 5:0:0. Engineering and Operations Report - May 2017 - Mr. Jaffan (Attachment 3) Mr. Jaffari stated that total spending year-to-date..for Capital Improvement Projects is $588,355. in the budget that were approved by the Board. The FY 17 budget is $9.4 million. As of May, year-to-date spending is $6.4 million. In June, another $2 million was paid for the generator. In the month of May, $118,263 was spent on routine construction, bringing the fiscal year-to-date to $1.724 million. We're making great progress routine maintenance. The substations are in good shape. The pole inspection program is going great. In North Reading we're removing 10 or 15 pole butts a week. There were no substation hot spots. The maintenance we've done is paying off; we're seeing vast improvements. The delay in transferring double poles is due to Verizon and Comcast. Mr. Jaffari thanked all four communities for their patience. There is a lot of maintenance going on and we get to the double poles in order of .priority and safety. Reliability is strong and getting better. Our numbers are well below the national and regional averages. Outages in May were caused by trees coming down during storms. RMLD is making progress on reducing outages caused by equipment and wildlife. Mr: Talbot stated that Comcast is rehegotiating its franchise with the Town and asked if it would be worth mentioning the double poles to the Towns. Ms. Parenteau replied that RMLD can remind the Town Manager. . There is still some final testing that needs to be done on the Distributed Gas Generator, but we anticipate going online next Thursday. Mr. Jaffari thanked the Town of North Reading and Town Administrator Gilleberto and his team for their help in overcoming challenges and moving the project along. This is a pilot; it is expected to meet Regular Session Meeting Minutes July 20, 2017 4 Engineering and Operations Report - May 2017 - Mr. Jaffari (Attachment 3) challenges during the pilot. Vice Chairman Hennessy asked, how will it work?Will it coincide with peak demand? Mr. Jaffari answered that a procedure has been set up with Integrated Resources. We know the forecast a day ahead of time. The generator is turned on 3 or 4 hours before the expected peak. Our peak is different than ISO's .peak; we want to ensure the window before and after ISO's peak is covered, Final testing needs to be .done to ensure the generator is in phase with our system. It is a great engine. It has been, running perfectly with no load and the equipment has a seven-year warranty. RMLD Procurement Request Requiring Board Approval - Mr. Jaffari (Attachment 4) RFP 2018-02 Category 2 Flame Resistant (FR) Clothing and Allowance Based Managed Clothing Program. Mr. Jaffari explained that RMLD is responsible for providing FR Category 2 clothing. The request for bid was advertised and sent out to 16 companies. Nonsubmittal responses were received from four companies: they aren't set up to provide management services or are out of stock. RMLD received sealed proposals from four companies. Two were non-responsive. Of the other two proposals, Tyndale and Action Apparel, Inc., Action Apparel Inc. lacked a management program. Tyndale does the accounting and RMLD doesn't have to use its resources to'manage the program. Vice Chairman Hennessy made a motion, seconded by Mr. Stempeck, that proposal 2018-02 for Category 2 Flame Resistant (FR) Clothing and Allowance Based Managed Clothing Program be awarded to Tyndale Company, Inc. as the most responsible and eligible bidder, in the estimated amount of $72,978.50, pursuant to M.G.L. c. 30B on the recommendation of the General Manager. Motion Carried: 5:0:0 General Discussion The next RMLD Board Meeting is tentatively set for Thursday, September 14, 2017. The date of the next CAB meeting has yet to be determined. The Board decided to hold the next Strategy Session in September. Ms. Schultz will circulate some dates. Mr. O'Rourke asked Chairman Pacino to say a few words about the upcoming NEPPA conference. Chairman Pacino explained that it is the municipal utility trade association's annual conference. It is being held from August 20-23. There are industry themed speakers and it (is a great opportunity to network and to see what other municipals are doing. Executive Session At 8:17 p.m. Mr.. Stempeck made a motion, seconded by Vice Chairman Hennessy, that the Board go into Executive Session to approve Executive Session minutes from October 20, 2016, December 15, 2016, January 31, 2017, February 23, 2017, March 23, 2017, and April 20, 2017, to discuss trade secrets or confidential, competitively - sensitive or other proprietary information in the course of activities conducted by a governmental body as an energy supplier under a license granted by the Department of Public Utilities; and to consider the purchase of real property and return to Regular Session for the sole purpose of adjournment. Chairman Pacino called for a Poll of the Vote: Mr. Talbot: Aye; Mr. O'Rourke: Aye; Vice Chairman Hennessy: Aye; Mr. Stempeck: Aye; Chairman Pacino: Aye. Motion Carried: 5:0:0 At 8:46 p.m., Mr. Stempeck made a motion, seconded by Vice Chairman Hennessy, that the Board move to return to Regular Session for the sole purpose of adjournment. Motion Carried: 5:0:0. Regular Session Meeting Minutes July 20, 2017 A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. David Hennessy, Secretary Pro Tem RMLD Board of Commissioners 5 POWER SUPPLY REPORT JULY 2017 ATTACHMENT 2 Integrated September 14, 2017 RMLD Board of Commissioners Meeting Reporting for June and July Jane Parenteau Director of Integrated Resources 180 175 - - 170 - 165 160 155 150 145 140 135 130 2013 �RMLDPeak (MW) 167.759 -ISO Peak (MW) 27,379 2014 2015 2016 157.252 156.283 163.134 24,443 24,437 25,596 28,000 27,000 26,000- 25,000 24,000 . 23,000 2017 22,000' 155.746 23,717 System Peak (kW)'Vs. Cooling Degree Days (CDD) June, 2013-2017 170,000 350 ' 165,000 300 160,000 250 p v 155,000 - 200 � Y O1 � Op a o E 150,000 150 00 a+ C N O VTf O U 145,000 100 140,000 2013 2014 2015 2016 2017 50 ® kW 167,759 157,252 156,283 155,230 155,746 CDD 331 222 213 293 213 kWh Sales vs. Cooling Degree Days (CDD) June, 2013-2017 68,000,000 66,000,000 64,000,000 62,000,000 N 0 60,000,000 s 58,000,000 56,000,000 54,000,000 52,000,000 � kWh _CDD I IN 2013 65,642,499 331 2014 2015 2016 2017 63,567,589 61,918,559 63,466,702 66,044,469 222 213 293 213 350 300 250 200 N 150 0 0 U 100 50 To: Coleen O'Brien Fro aureen McHugh, Jane Parenteau Date: September 1, 2017 Subject: Purchase Power Summary - July, 2017 Energy Services Division (ESD) has completed the Purchase Power Summary for the month of July, 2017. ENERGY The RMLD's total metered load for the month was 65,906,542 kWh, which is a 10.46% decrease from the July, 2016 figures. Table 1 is a breakdown by source of the energy purchases. . Table 1 Amount of Cost of % of Total Total $ $ as a Resource Energy Energy Energy Costs % (kWh) ($/Mwh) Millstone#3 3,656,054 $6.72 5.51% $24,575 0.91% Seabrook 5,906,202 $5.93 8.90% $35,014 1.29% Stonybrook Intermediate, 2,685,649 $29.61 4.05% $79,515 2.94% Shell Energy 13,311,200 $59.13 20.06% $787,132 29.06% NYPA. 2,368,862 $4.92 3.57% $11,655 0.43% EDF 6,417,600 $35.55 .-9.67% $228,161 8.420?o ISO Interchange 2,580,335 $41.58 3.89°/6 $107,298 3.96% NEMA congestion 0 $0.00 0.00% -$31,760 -1.17% Coop Resales 17,579 $145.07 0.03% $2,550 0.09% BP Energy 12,329,200 $46.78 18.58% $576,760 21.29% Hydro Protects' 2,729,196 $68.69 4.11% $187,465. 6.92% Braintree Watson Unit 232,950 $79.63 0.35% $18,551 0.68% Saddleback/Jericho Wind 1,091,188 $84.60 1.64% $92,310 3.41% One Burlington Solar 388,023 - $71.05 0.58% $27,569 1.02% Exelon 12,640,000 $44.48 19.050/6 $562,264 20.75% Stonybrook Peaking 0 $0.00 0.00% $0 0.00% Monthly Total 66,354,038 $40.83 100.00% $2,709,058 100.00% *Pepperell, Woronoco,lndian River, Turner Falls,Colllns, P/oneer,Hosiery Mills, Summit Hydro Table 2 breaks down the ISO interchange between the DA LMP Settlement and the RT Net Energy for,the month of July; 2017. JULY 2017 ENERGY BY RESOURCE Stony6iook Pk 1,%I . t1.9i1, ;,:,;. T, , U.UO% one suril: i ;til i iiiiiiiiiiiiab tlSRIX Coop resales 0.03% Stonybrook inter 4.05% Table 2 Amount Cost % of Total Resource of Energy of Energy Energy (kWh) ($/Mwh) ISO DA LMP * 8,599,072 $28.21 12.92% Settlement RT Net Energy ** (6,018,737) $23.27 -9.04% Settlement ISO Interchange 2,580,335 $41.52 3.88% (subtotal) * Independent System Operator Day -Ahead Locational Marginal Price JULY 2017 ENERGY BY RESOURCE Stony6iook Pk 1,%I . t1.9i1, ;,:,;. T, , U.UO% one suril: i ;til i iiiiiiiiiiiiab tlSRIX Coop resales 0.03% Stonybrook inter 4.05% CAPACITY The RMLD hit a demand of 145,294 M,which occurred 'on July 19, at 5 pm. The RMLD's monthly UCAP requirement for July, 2017 was 220,648 Ms. , Table 3 shows the, sources of capacity that the RMLD utilized to meet its requirements. - Table 3 . Sounme . Amount (Ms) Cost ($&W -month) ''Total Cost $ % of Total Cost Millstone #3 '4,950 26.97. $133,516 6.41% Seabrook -7,909 22.87- $180,897 Stonybrook Peaking 24,980 2.52 $62,841 3.02% Stonybrook CC 42,925 3.38 $145,276 6.98% i NYPA 0. . 0,00 $16,899. 0.81% -Hydro Quebec 0 0 -$91,251 -4.38% Braintree Watson Unit 0 0.00 $38,979 .1.87% ISO -NE Supply Auction . 139,884 11.40 $1,594,559 - 76:60% Total. 220,648 $9.43. $2,081,717 100.00% Table 4 shows. the dollar amounts for energy and capacity per source. . Table 4 Cost of % of Amf of Energy Power Resource Energy Capacity Total cost. Total Cost (kWh) ($/kWh) Millstone #3 124,575 $133,516 $158,091, 3;300/6 3,658,054 0.0432 Seabrook $35,014 $180,897 . $215,911 4.51% 5,906,202 0.0368 . Stonybrook Intermediate $79,515 $145,276 $224,191 4.69°% 2,685,649 0.0637. ' Hydro'Quebec .: $0 ,$91,251' -$91,251 '-1.90°% 0.0000 Shek Energy $787,132 $0 $787,132 16.43% :13,311,200 0.0591 NextEra/EDF $228,161 $0 $228,161 4.76% 6,417,600 0.0356 , 'r NYPA $11,655 $16,899 $28,554 0.60% 2,368,862 0.0121 Z ISO Interchange $107,298 $1,594,559 $1,701,857 35.52% 2,580,335 0.6595 Name Congestion -$31,760 $0 -$31,760 -0.66% 199,191 -0.1594 - BP Energy $576,760 $0 $576,760 12.04% 12,329,200 0.0468 Hydro Projects $187,465 $0 $187,465 3.91% 7,036,636 0.0288 Braintree Watson Unit $18,551 $38,979. $57,530 1,20% 232,950 0.2470 * Saddieback/Jedcho $92,310 $0 $92,310 1.93% 1,091,188 0.0848 .. One Burlington Solar $27,589 $0 $27,589 0.58% 388,023 0.0710 Coop Resales $2,550 $0 $2,550 0.05% 17,579 0.1451. 'Exelon Energy $562,264 $0 $562,264 11.74% 12,640,000 0.0445 Stonybrook Peaking $0 $62;841 $62,841 -1.31% - 0.0000 Monthly Total $2,709,058 $2,081,717 $4,790,776. 100.0.0% 70,860,669 0.0676. * Renewable Resources 15.38% RENEWABLE ENERGY CERTIF ICATES (RECs) Tables shows the amount of banked and projected RECs for. the Swift River Hydro Projects through July 2017,'as well as their estimated market value. transmission costs were $1;215,292. Table 5 Table 6 RECs Summary Last Month Last Year Peak Demand (kW) 145,294 Period - January 2017 - July 2017 " Energy -(kWh) 66,553,229 Banked . Projected Total Est. $2,520,199 RECs RECs RECs Dollars ' Wcronoco/Cresent 0 5,669 5,669 $90,704 Pepperell 0 2,836 2,836 $45,376 Indian River/Glendale 0 1,688 1,688 $27,008 J j Turners Falls 0 1,349 1,349 $21,584 " Saddleback 0 7,835 7;635 $125,360 Jericho 0 3,639 3,639 $58,224 Sub tOtpl 0 ,01 23,016 - 3 8,256 RECs Sold $0 0 $0 Grand Total 0 23,016 23,016 $368,256 TRANSMISSION The RMLD's total transmission costs for the month of July, 2017 were $1,546,151: This is an increase of 18.40% from the June transmission cost of $1,305,840. In July, 2016 the transmission costs were $1;215,292. Table 6 . Current Month Last Month Last Year Peak Demand (kW) 145,294 155,746 155,230 Energy -(kWh) 66,553,229 60,903,283 73,246,501 Energy ($) $2,709,058 $2,520,199 $3,217,314 Capacity ($) : $2,081,717 $2,379,893 $1,506,547 Transmission($) $1,546,151 $1,305,840 $1,215,292 Total " $6,336,927 $6,205,931 $5,939,153 PROPOSED RATE APPROVAL ATTACHMENT13 9 Town of Reading, Massachusetts MDPU # 277 Municipal Light Department Electric. Vehicle. Supply Equipment Schedule. EVSE Rate Designation: Electric Vehicle Charger (EVSE) Rate. Available in: Reading, Lynnfield Center, North Reading, and- Wilmington Applicable to: This rate, is available to Customers who utilize Electric Vehicle Supply Equipment; installed and owned by RMLD. Character of service: AC 60 cycles: single phase or three phase. Distribution Energy Charge: $.1111 per Kilowatt-hour for all Kilowatt-hours usage Fuel Adjustment: The rate for service hereunder may be increased or decreased as provided by. the Standard Fuel Adjustment Clause. Purchase Power Capacity and Transmission Charge: The rate for service hereunder may be increased or decreased as provided by the Purchase Power Capacity and Transmission Charge. Meter Reading and. Billing:_ Service under this schedule will be rendered. immediately. General Terms and Conditions: Service hereunder is subject to the General Terms and Conditions which are incorporated herein and are a part of this rate schedule. Rate Filed: TBD Effective: On Billings on or After November 1, 2017. Filed By: Coleen M. O'Brien, General Manager 1 ENGINEERING & OPERATIONS REPORT JUNE 2017. . ATTACHMENT 4 9 f READING MUNICIPAL LIGHT DEPARTMENT 1CAPITAL VARIANCE REPORT FOR'P.ERIOD ENDING JUNE 2017 1 DRAFT OF UNAUDITED NUMBERS PROJ DESCRIPTION CONSTRUCTION: 106 Underground Facilities Upgrades (URIYs, Manholes, etc) 107. 13.8kV Upgrade (Step-down areas, etc.) SUB -TOTAL STATION UPGRADES: 108 Station 4 (GAW) Relay Replacement Project 109 Station 4 35kV Potential Transformer Replacement . 110 4W9 Getaway Replacement -Station 4 111 Substation Equipment Upgrade (all) 113 Station 4 (GAW) Battery, Bank Upgrade 120 Station 4 - Relay/SCADA Integration for Bus A&B 130 Station 3 - Remote Terminal Unit(RTU) Replacement 133 Station 3 -Relay Upgrades and,SCADA Integration 139 Station 5 - LTC Control Replacement 140 Substation Grounding Equipment Upgrade SUB -TOTAL NEW CUSTOMER SERVICES: .141-141 New Service Installations (Commercial / Industrial) SUB -TOTAL ROUTINE CONSTRUCTION: SPECIAL PROJECTS [CAPITAL PURCHASES: f Am Distributed Gas Generation (Pilot FY16717) j 102 Padmount Switchgear Upgrade at Industrial Parks 103 Grid Modernization and Opitmization 105 New Wilmington Sub -Station 112 AMI Mesh Network Expansion 115 Fault Indicators 116 Transformers and Capacitors 117 Meter Purchases 125 .GIS 126 Communication Equipment '(Fiber Optic) 131 LED Street Light ' Implementation } 134 Substation Test Equipment 135 Analog Devices Cap Bank Upgrade 136 Vcltage Data Recorders I SUB -TOTAL OTHER CAPITAL PROJECTS: ` 96 Control CenterMo_difications 97.: HVAC Roof Units - Garage 98 Carpet Upgrade 99 Electric Vehicle Supply Equipment 104 RMLD Lighting (LED) Upgrade 118 Rolling Stock Replacement 119 Security Upgrades All Sites 121 HVAC System Upgrade - 230 Ash Street 127 Hardware Upgrades 126 Software and Licensing 129 Master Facilities Site Plan SUB -TOTAL ACTUAL TOWN COST YTD ANNUAL REMAINING ADDITIONS BUDGET BALANCE ALL 1,427 300,048. 149,965 (150,083) ALL 753 11,176 -105,748 94,572 2,180. 311;224. 255,713 155,511) R 6,382 113,209 48,904 (64,305) R 6,392 57 - (57) R 30,596 135,552 234,747 - 99,195 ALL - 74,590 - 74,590 R 24,000 17,037 (6,963) R 2,003,174 51,225 70,308 19,083 NR 6,219. 31,069 39,330 8,261 NR 54,476 379,616 252,225 (127,391) W 13,516 6,324 41,543 35,219 ALL 125,394 220,021 20.671 20,671 R 91,291 741,052 799,355 58,303" ALL 6,382 A6707 139,570 31,63- R 6,392 107,657. 139,570 31;913. R 3,255 - 22,570 ALL 49,083 ALL 1841,874) _ 129,660 1,854,538 1,012,962 - - 25,000 ALL 1,033,637 2,003,174 2,720,409 717,235 W ALL 2,286 194,518 "192,232 ALL 21,339 345,890 284,000 (61,890) W 5,063 _ 13,516 260,000 236,484 ALL ALL 125,394 220,021 94,627 ALL R - 1,340 25,000 23,660 ALL 234,851 668,000 433,149 ALL .35,784 80,000 44,216 ALL 53,779 396,427 360,000 (36,427) ALL 10,014 .17,488 69,173 51,685 ALL 39,222 627,577 804,070 176,493 ALL 26,125 30,000 3,875 W 548 54,188 53,640 ALL 25.000 25.000 1,163,053 3,830;399 5,784,379 1,953,980 ALL - 100,000 100,000 R -44,484 - (44,484) R 3,255 - 22,570 71,653 49,083 ALL - - 10,000 10,000 - - 25,000 25,000 ALL 221,715 274,798 310,000 35,202 ALL 34,684 5,000 (29,684) R 2,000 609,804 500,000 (109,804) ALL 4,395 :94,717 112,065 17,348 ALL 6,692 83,908 230,519 146,611 R 50,000 50,000 238,059 1,164,965 1,414,237 249,272 TOTAL CAPITAL BUDGET _ $ 1,530,623.38' $ 0,009,832 S 9,40 , 1,390,384 i.gineering & Operations Report RMLD Board of Commissioners Meeting September 14, 2017 June 2017 Reporting Period Hamid Jaffari, Director of Engineering & Operations Capital Improvement Projects PROJ BUDGET RBA AINCE 300,04 11,176 # DESCRIPTION COMPLETE JUNE CONSTRUCTION: 48,90 (64,305) 106 Underground Facilities Upgrades (URD's, Manholes, etc.) On-going 1,42% 234,74 . Deanna Circle, Lynnfield 24,00d 17,03 107 13.8kV Upgrade (Step-down areas, etc.) On-going 75": 31,069 Main Street, Reading 8,261 379,61 252,22 STATION UPGRADES: 6,32 41,54 108 - Station 4: Relay Replacement Project, R 100% - 109 Station 4: 35kV Potential Transformer Replacement, R 100% 110 Station 4: 4W9 Getaway Replacement, R 95% 30,59E 113 Station 4: Battery Bank Upgrade, R 99% - 120 Station 4: Relay/SCADA Integration for Bus A&B, R 100% - 130 Station 3: Remote Terminal Unit (RTU) Replacement, NR 99% 6,215 133 Station 3: Relay Upgrades and SCADA Integration, NR 100% 54,47E 139 Station 5: LTC Control Replacement, W 100% - New Service Installations (Commercial/Industrial) On-going 6,38 YTD BUDGET RBA AINCE 300,04 11,176 00 149,96 105,74 (150,083) 94,57 113,209 48,90 (64,305) 5 (57) 135,55 234,74 99,195 24,00d 17,03 51,22 70,308 19,08 31,069 39,33 8,261 379,61 252,22 (127,391) 6,32 41,54 35,219 00 107,657 139,57 31,913 Routine Capital Construction — - - — - -- JUNE -- Pole Setting/Transfers 41,75E Overhead/Underground 12,49E Projects Assigned as Required Lopez Road, Wilmington 27( Pole Damage/Knockdowns - Some Reimbursable • Work was done to repair or replace one pole. 4,03 Station Group - Hazmat/Oil Spills - Porcelain Cutout Replacement Program - Lighting (Street Light Connections) 3,03 Storm Trouble 4,57( Underground Subdivisions (new construction) 50,70 ' • Garden of Eden, Wilmington 1,54E Animal Guard Installation - Miscellaneous Capital Costs 61,94E TOTAL: 129 66[ YTD FY17REMAINING BUDGET BALANCE 398,12 366,278 363,768 110,549 222,025 7,037 0 33,922, 50,381 50,70 ' 1,16 250,59 $Q1� ($841,574) System .Projects/Capital. Purchases _J DEIPROJ #I SCRIPTION% JUNE 100 Distributed Gas Generator, NR 99% 1,033;637 ., 102 'Pad Mount Switchgear Upgrade at Industrial Parks, W 5% _4 31' _103 Grid ModernIzation4ind- Optimization, All Towns On-going 21,339 105 New Wilmington Sub -Station, W 5% 5,06� 78xjs80;00 -112, AMI, Mesh Network Expansion, All Towns On going 116.. !Fault Indicators, A6 Towns On going 'J 6 116 Transformers -arid Capacitors, All Towns On going' T- 117 !Meter Purchases,.All Towns On-going 6` 7 i 125 -GIS 98% 53,779 126 Communication Equipment .(Fiber Optic), All On-going 1! 10,014 131 LED Street Light Implementation, All 75% 39,222 1-7 - 134 (Substation Test Equipment, All. 100% 135 Analog Devices Cap Bank Upgrade,.W. 100% _J 2,003 F7777777-1 _4 31' �25 0j00 236,48 125,39 220 ,021 94,62 78xjs80;00 "44 21 396 42 ,(86,427 'J 6 6` 7 i _J Other Capital Projects/Purchases I' it . _ _� .-- - % ;i FY17 PROJ_#i __ DESCRIPTION_, _� .�COMPLETEL_ __- JUNE___- YTD BUDGET 097 - HVAC Roof Units Garage 100% 44,484 _098 - ;Carpet Upgrade - _ 75% _3,255 2-2,570 MT 118 Rolling Stock Replacement On-going 221,715 274,798 311 119Security Upgrades All Sites On-going 121 HVAC System Upgrade- 230 Ash Street ' . 100% 2,000 =609,80�501 127 ;Computer Hardware Upgrades ;! On-going y -4,395 94,717 11: 128 Computer Software and Licensing On=going 6,692 83,908 231 Others YTD TOTAL: j $1,630,623 $.8,009,832 $ M19,406,216 $ 1,396,384 j Note: All June/Year-end Capital figures area draft of unaudited numbers. Routine'Maintenance Transformer Replacement(through June 2017) `Pad mount 26.42% Overhead 1.7:43% Pole Inspection (as of 8/24/17) 243 poles have: been replaced 141 of 243 transfers have been completed Quarterly Inspection of Feeders has of 8/22/17) Inspected Circuits (Jan -Mar): 3W5, 3W6, 3W7; 3W8, 3.W 13, 3W 14, 3W 1.5, 3W 18, 4W4, 4W5, 4W6, 4W71 4W9, 4W23, 4W24, 5W4, 5W5, 5W8, 5W9; 4P9, 4P2 Inspected Circuits (Apr -Jun) : 4W 10; 4W 12, 4W 13 Inspected Circuits (Jul -Sep): 3W5, 3W7, 3W8, 3W 13, 3W 14, 3W 18 . Manhole lnspection (through June 2017) 961 of 1,237 manholes have been inspected. Porcelain Cutout Replacements (through June 2017) 91 % complete 249 remaining to be replaced w Tree Trimming June: No spans trimmed YTD: 1,122 spans trimmed w Substation Maintenance Infrared Scanning - June complete - no hot spots found I Double Poles iership: 16,000 (approximately) 50% RMLD - 50% Verizon odial: Reading -split (see map) North Reading - RMLD Lynnfield - Verizon Wilmington - Verizon Town of Reading r 1 Pole Jurisdiction � 37 r ` / �••• ,-ti�yr ',l ReaElneSheets S�L, Town of Reading 1�•�'.1- f'. �./- t) Pole Owner ONNFIELD NTG Member and Job Type O LRDFD 7LynnfieldFire Department TRANSFER JRMLD J Reading Municipal UgM Dc TRANSFER S VZNFSA a Verizon TRANSFER GrandTotal NJUNS "Next to Go" as of September 1, 2017 READING , NORTH READING Count of 48 TRANSFER Count of Count of 34 Ticket J Vert wn TRANSFER Ticket Ticket 4 i -7 -Number 1 NTG Member and lobType l•1 Number NTG Memberand Job Type _I'Number 1 7 3 JCMCINR 1 9CMCTNR i 1(mank) Grand Total 9COMCEst Grand Total BCD Grand Total 205 3 TRANSFER 1 TRANSFER 1 JNGMA 1 5 JNP3PMA 8 JNationalGrid ent TRANSFER 1 5 NaFparli ipating 3rd Party OAttVCher- Massachusetts 9NP31PMA 1 TRANSFER 8 Non-participating3nd Party Attadher- Massadk iseits 5 TRANSFER 1 JRDNGFD b S JReadingFire DeparUnert JNRDGFD 36 13 TRANSFER 6 J North Reading Fire Department J RMLD EJ Reading Municipal Light Department TRANSFER PULL POLE TRANSFER 93 :J RMLD WILMINGTON Count of Ticket NTG Member andlobType Number 3 NPFAMA 4 oNon-participating Fire Alakms - Masgdutsetts 48 TRANSFER 4 J RMLD 34 3Reading Municipal Ught Department J Vert wn TRANSFER 30 PULL POLE 4 JVZBMA 1 O Verhon Badness PULL POLE TRANSFER 1 J VZN®R JVerlwn TRANSFER PULL POLE 34 J Reading Municipal Light Department 59 TRANSFER 13 JWLIYFM PULL POLE 32 JTakm of Wilmington TRANSFER 70 14 10 9V2NESA 48 JVZN EDR 24 J Vekizon J Vert wn J WMGNFD 72 TRANSFER 46 TRANSFER 17 -JWilm ikkaton Flte Department PULL POLE 2 PULL POLE 7 TRANSFER 72 9( lank) r� (blank) 1(mank) Grand Total L% Grand Total 109 Grand Total 205 Minutes 60.00 50.00 SAIDI 2012-2017 RMLD Reliability Indices 11111111111111111112012 40.00 �2U13 30.00 - 7014 IFFF day threshold 27.65 �2015IEEE day threshold 20.00 2016 IEEE day threshold 10.00 12236 2017 YfD IEEE day threshold 6.28 —2016 Region Average (no ME) a.00 7017-7013-7014-7015-7016- —2016 National Average (no ME) 2017 Average SAIDI SAIUI (Minzaes) = T olal Uut-ationof Cuslomer Interruptions I oral Number of Customers Served Note: The major event (ME) threshold allows a utility to remove outages that exceed the IEEE 2.5 beta threshold for events. These events could be severe weather, which can lead to unusually long outages in comparison to your distribution system's typical outage. SAIFI = Total Numberof CuslowerlNeu-ruptions Total Numberof Customers Sensed Note: Regional and national averages have been updated for 2016. Minutes CAIDI 2012-2017 120.00 100.00 80.00 60.00 40.00 20.00 0.00 2012-2013-2014-2015-2016-2017 Average CAIDI 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2012-2013-2014-2015-2016-2017 Average SAIFI X2012 X2013 X2014 X2015 X2016 2017 YTD —2016 Region Average —2016 National Average CAIUI (Minedes) — T blal Duration of Customer Interivplions Total Number (?f Customers Interruptions SAIFI 2012-2017 X2012 2013 ® 2014 2015 X2016 2017 YTD —2016 Region Average —2016 National Average Weather Utility Human 3% Unknown Eor .rr0 2 0% 3% !hide :ident Natural i 0% Tree 30 42% :Outages Causes 2017 YTD June 'Vehicle ■ Equipment 5 o Tree Wildlife ® Vehicle Accident ■ Weather =' Unknown ■ Utility Human Error ■ Natural Annual Average 2012-2017 Utility Human Error Unknown 2 . 1% Natural i ■ Equipment * Tree 93 Wildlife * Vehicle Accident ■ Weather c Unknown ■ Utility Human Error Questions ? r RMLD PROCUREMENT REQUESTS REQUIRING BOARD APPROVAL. ATTACHMENT 5 RMLD: CO-=) September 7, 2017 Reading Municipal Light Department RELIABLE POWER FOR GENERATIONS 230 Ash Street P.O. Box 150 Reading, MA 01867-0250 Tel: (781) 9441340 Web: www.rmid.com Town of Reading Municipal Light Board Subject: IFB 2018-01: 115kV Pole Replacement Project Pursuant to M.G.L c. 30 § 39M, on July 26, 2017, an invitation for bid was placed as a legal notice in the Middlesex East Section of the Daily Times Chronicle and in the Central Register requesting sealed bids for the 115kV Pole Replacement Project. An invitation for bid was sent to the following twenty-five companies: ABM Electrical Power Services, LLC Albanese Brothers, Inc. . Coviello Electric & General Contracting Co., Inc. Dagle Electrical Construction Corp. ElecComm Corp. Evermore Light and Power Fischbach & Moore GEOD Consulting Grattan Line Construction Corp. Hamilton Electric Co., Inc. Harlan Electric Hawkeye - Ele'cnor Group Hi Volt Line Construction &. Maintenance IB Abel Inc. K.B. Aruda Construction, Inc. Mass Bay Electrical Corp. ' Matrix NAC Maverick Construction McDonough Electric Construction MEC Power Group Northeast Line Construction Corp. One Source Power Power Line Contractors Spencer Contracting Utility Service & Assistance, Inc. Sealed bids were received from two companies: Harlan Electric and Mass Bay Electrical Corp. The sealed bids were publicly opened and read: aloud, at 11:00 a.m. on August 30, 2017, in the Town of Reading Municipal Light Department's Winfred Spurr AV Room, 230 Ash Street, Reading, Massachusetts. The bids .were reviewed, analyzed and evaluated by staff and recommended to the General Manager. Move that bid 2018-01 for. 115kV Pole Replacement Project be awarded to: Harlan Electric for $115,069.59 (including $9,314.34 formatting If necessary) as the lowest responsible and eligible bidder on the recommendation of the General Manager. The FYI 8, Capital Budget amount for this item is $60,000. , File: Bid/FY18/2018-01 for 115kV Pole Replacement Project 115kV Pole Replacement Project IFB: 2018-01 Certified Exceptions to Unit Price All forms Check or Bid stated bid Authorized Bidder Per Pole Qty Total Price filled out Bond requirements signature Harlan Electric (1) $23,013.92 5 $115,069.59 yes yes no yes (1) Matting has been included at STR 503-6 at a cost of $9,314.34. If this matting is not required the bid may be reduced by this amount. Mass Bay Electrical Corp. $17,935.00 5 $89,675.00 yes yes yes yes Exceptions: for any ledge encountered while excavating for the new structures. While this is an unlikely occurrence in the affected area, drilling through ledge requires specialized equipment that would be financially burdensome were it included in the bid. RMLD a' September 5, 2017 Reading Municipal Light Department RELIABLE POWER FOR GENERATIONS 230 Ash Street, P.O. Box 150 Reading, MA 01867-0250 Town of Reading Municipal Light Board Subject: IFP 2018-03 Pole Mounted Transformers Pursuant to M.G.L c. 164 § 56D, on August 2, 2017; a bid invitation was placed as a legal notice in the Middlesex East section of the Daily Times Chronicle requesting sealed proposals for Pole Mounted Transformers. An invitation for proposals was sent to the following sixteen companies: EDI Graybar Electric Hasgo Power IF Gray Stuart C. Irby Co. Jordan Transformer Power Sales Group Power Tech-UPSC Prime Vendor, Inc. Robinson Sales Shamrock Power Sales Inc. Transformer Exchange Ward Transformer Sales Weidmann Electrical Technology WESCO Yale Electric Supply Sealed proposals were received from four companies: Graybar Electric, Stuart C. Irby Co., Howard Industries c/o Power Sales Group and WESCO. The sealed proposals were publicly opened and read aloud at 11:00 am., August 30, 2017, in the Town of Reading Municipal Light Department's Audio Visual Spurr Room, 230 Ash Street, Reading, Massachusetts. The proposals were reviewed, analyzed and evaluated by staff and recommended to the General Manager. Move that proposal 2018-03 for. Pole Mounted Transformers be awarded to: Stuart C. Irby Co. for $42,493.00 and WESCO for $59,229.00, for a total of $101,722.00 pur;uant'to Chapter 164 § 56D on the recommendation of the General Manager. The FYI Capital Budget amount for these items is $145,500. Vaughan Bryan Hamid Jaffari' A41� Q-4140- Cv, &I en Coleen O'Brien File: Bid/Mg/2018-03 Pole Mounted Transformers Pole Mounted Transformers 81d 2018-03 Meat Afi certified Exceptions to Total Net Awan ing Specificathm Specrftetm Firm forms Check or slated bld Authorized Bidder Manufacturer DelWaryDala. un �! Price Prices reaurement Data Sheets Puke filedou Old � , Bond re4uireme» is nature hbY res res res - mea Yes yes Yes Item 125 kVa Single Phase 240/120 ABB 88 weeks $1,099.50 5 $5,497.50 Item 2 37.5 We Single Phase 240/120 ABB 68 weeks '$1,274.00 10 $12,740.00. Item 350 kVa Single Phase 240M20 ABB 68 weeks $1,427.00 20 $28,640.00 $20,540.00 Exceptions: Warranty 3 PatentslTmdemarksfCopyrigMa Indemnification Iters 4.45 Wei Three Phase 208YI120 ABB 6-8 weeks $3,768.00 2 $7,536.00 is pass-along from Manufacturer urer and rot responsibirdy of Item 5 75 kVa Three Phase 208Y1120 ABS 68 weeks $4,134.00 5 $20,670.00 seller. Rom 6 225 kVa Three Phase 209YI120 ABB 10-12 weeks $7,830.00 1 $7,630.00 $7,830_.00 Nato: For an $18 adder per transformer, we era offering the EZ Item 7 75 We Three Phase 411 277 ABB . 8.8 weeks $4,084.00 3 $12;252.00 Lift EyeboO.on 50 We and below. Engineering Note: RMLD is not adding Ore EZ Lilt Eyebolt Item 6225 kV®Three Phase 480Y277 ABB 10-12 weeks $6,12300 1 $6,123.00 $6,123.00 Item 9150 We Three Phase 208Y/120 ABB 10.12 weeks $6,704.00 1 $5,704.00 Purchasing Note: Stated warranty exceptions acceptable to RMLD, _ $108,892.50 '$4$493.00 Greyber Electric yes . yes res re re Yes Do' Item 125 kVs Single Phase 2401120 GE 6 weeks $961.00 5 $4,805.00 ' Item 2 37.5 We Single Phase 2401120 GE 8 weeks $1,049.00 10 $10,490.00 Item 3 50 We Single Phase 2401120. GE 9 weeks $1,10800 20 $22,160.00 Exceptions: We are quoting perANSI C57.1220, comrentioral pole Item 4 45 We Three Phase 208Y1120 no quota 2 mounted bansfonners. We are quoting HV 4160 GRDY/2400 Item 5 75 We Three Phase 208Y1120 no quote 5 x 13800 GRDYrr970-.1 HV bushing; single hanger tank; Item 6 225 We Three Phase 208YI120 no quote 1 no brps; LV 1201240. Item 7 75 We Three Phase 480Y1277 no quote 3 _- Purchasing Note: 'Proposel rejected due to unaultrorized signalwe on the bid _ Item 8 225 kVa Three Phase 480Y277 no quote 1 documents. Item 9150 kVa Three Phase 208Y1120 no quiote 1 $37.455.00 50.00 WESCO Yea . yes Yea Yes Yes yes Yee Item 126 kVa Single Phase 240/120 Ermco 8-10 weeks 57,049.00 5 $5,245.00 $6,246 00 Item 2375 We Singh Phase 2401120 Ermco : 8.10 weeks SIX%00 10 $12,560.00 $12,560.00 Item 3 50 We Single Phase 24OM20 Ensco. - ' -, . 8-10 weeks $1.447.00 20 $28,940.00 Exceptions: 225 We pole mart transformers will be retarguhar to Bou Item 4 45 kVa Three' Phase 208YI120 Ermco 8.10 weeks $3,42200 2 $6,844.00 " $6,844.00 of round. 225I(Va rectangular transformers will exceed the Item 5 76 kVa Three Phaso 208YI120 Ermco 8-10 weeks $3,541.00 5 '$17,705.00 $17,705.00 44' neuch. xn palet wWL Item 6 225 We Three Phase 208YI120 Ermco 8.10 weeks' $5,906.00 1 $5.908.00 Item 7 75 kVa Three Phase 480Y277 Ermco &10 weeks $3,890.00. 3 $11.670.00 $11,670.00 Engineers Note: RMLD w7 riot be purchasing re tangular trarsfal i. am' Item 8 225 We Three Phase 48OY277 Ensco 8-10 weeks $5.687.00 1 $5.687.DD Item 9150 kVa Three Phase 2UY1120 Ermco 11-10 weeks . $505.00 - 1 _ SSX5.00 $5,205.00 599,76200 $59228.00 Power Salm Grdrp for H a i 'Ind Yes yes . Yes Yes Yea no yes Item 125 We Single Phase 2401120 ' Howiard 68 weeks $1,145.00 5 $5,72500 Item 2 37.5 We Single Phase 2401720 Howald 68 weeks $1,458,00 10 ' $14,580,00 Item 3 50 We Single Phase 2401120 Howard 6-6 wises $1.634.110 20 $32,680.00 Item 4 45 kVa Three Phase 206Yt12D Howard 12-14 weeks $4,0 00 2 $8.11200 c Rom 5 75 We Three mase 206YI120 Howard 12-14 weds $6.57500 5 $32.87500 Item 6 225 We Three Phase 208YI120 Howard 12-14 weeks $16,4633.00 1 $16.483.00 Item 7 75 We Three Phase 480Y277 Howard .12-14 weeks $4,756.00 3 $14,MOO. Item 8 225 We Thee Phase 480YM Howard 12-14 weds $8,55&00 1 $8155&00 Item 9150 kVa Three Phase 20BYM20 Howard 12-14 weeks 516,03200 1 $16432:00 S749 29300 i SD.OD' P4 1 RMLD ` Reading Municipal Light Department RELIABLE POWER FOR GENERATIONS 230 Ash Street, P.O. Box 150 Reading, MA 01867.0250 September 5, 2017 Town of Reading Municipal Light Board Subject:. IFP 2018-04 Pad Mounted Transformers Pursuant to M.G.L. c. 164 § 56D, on August 2, 2017, a bid invitation was placed as a legalinotice in the Middlesex East section of the Daily Times Chronicle requesting sealed proposals for Pad Mounted Transformers. An invitation for proposals was sent to the following sixteen companies: EDI Graybar Electric Hasgo Power. IF .Gray Irby Jordan Transformer Power Sales Group Power Tech-UPSC Prime. Vendor, Inc. Robinson Sales Shamrock Power Sales Inc. Transformer Exchange, Ward Transformer Sales ... Weidman. Electrical Technology WESCO Yale Electric Supply . Sealed proposals were received from four companies: Graybar Electric, Stuart C. Irby Co. Howard Industries c/o Power Sales Group, and WESCO. The sealed proposals were publicly opened and read aloud at 11:00 a.m:, August 30, 2017, in the Town of Reading Municipal Light Department's Audio Visual Spurr Room, 230 Ash Street, Reading, Massachusetts. The proposals were reviewed, analyzed and evaluated by staff and recommended to the General Manager.. Move that proposal 2018-04 for: Pad Mounted Transformers be awarded to: WESCO for $68,959.00 pursuant to Chapter 164 §_56D on the recommendation of the General Manager. The FY18 Capital Budget amount for these items is $385,000. File: Bid/FY18/2018=04 Pad Mounted Transformers Pad Mounted Transformers . Bid 2018-04 Meet Cordfied Exceptions ft Spedfication Speciftcatlon " Fum All forms Check or stated bid Authorized Bidder Manufacturer Delivery hate Unit Cost QTotal Net Cost reoubement Data Sheets Price filled out Bid gond recumernen sibnalum WESCO yes yes yes' yes yes no yes Item 175 kVa 10 FR3 240/120 ERMCO. B-10 weeks $2,852.00 5 $14,260.00 Item 2 37.5 kVa10 FR3 2401120 ERMCO 8-10 weeks $2,204.00 10 " $22,040.00 Item 3 50 kVa 10 FR3 2401120 ERMCO B-10 weeks $2,402.60 15 $36,030.00 Item 4 45 kVa 30 DF 20BY1120 ERMCO - 8-10 weeks $4A27.00 4 $17,708.00 Item 5 45 Wa 30 OF 20BY/M ERMCO 6-10 weeks $4,438.00. 4 $17,752.00 Item 6 75 kVa 30 OF 205YI120 ERMCO 8-10 weeks $4,673.00 '2 $9,346.00 Item 7 75 kVa 30 OF 480Y/477 ERMCO 8-10 weeks $4,668.00 2 $9,336.00 Item 6112.5 kVa 30 OF 208Y/720-. ERMCO 8-10 weeks $5,175.00 2 $10,350.00 Item 9112.5 kVa 30 OF 4BOY1277 ERMCO 8-10 weeks $5,020.00 2 $10,040.00 Item 10500 kVa 30 OF 20BY1120 ERMCO 8-10 weeks $9,665.00 3 $28,995.00 Item 11 300 kVa 30 DFLF 208YI120 ERMCO B-10 weeks $7,481.00 4 $29,924.00 $68,959.00 Irby yes yes yes yes yes yes yes Item 175 kVa 10 FR3 240/120 ABB 12-14 weeks $4,450.00 5 $22,250.00 Item 2 37.5 kVa10 FR3 240/120 ABB 12-14 weeks $2,670.00 10 $26,700.00 Item 3 50 kVa 10 FR3 240/120 ABB 12-14 weeks $3,152.00 15 $47,280.00 Exemptions as stated: Item 4 45 kVa 30 DF 208Y/120 ABB 16-18 weeks $5,822.00 4 $23,288.00 Warranty 8 Patents/Trademarks/Copyrights indemnification Item 5 45 kVa 30 DF 208Y1277 ABB 16-18 weeks $5,738.00 4 $22,952.00 Is pass-along from Manufacturer and not responsibility of Item 6 75 kVa 30 DF 208YI120 ABB 16-18 weeks $5,864.00 2 $11,728.06 seller. Item 7 75 kVa 30 DF 4BOY1277 ABB 16-18 weeks $5,801.00" 2 $11,602.00 See ABB quote 17Q3395249 for details on offerings. Item 8112.5 kVa 30 DF 208Y/126 ABB 16-18 weeks $6,199.00 2 $12,398.00 Item 9112.5 kVa 30 DF 480Y/277 ABB 16-18 weeks $6147.00 2 $12,294.00 Purchasing Note: Item 10 500 kVa 30 DF 20BY/120 ABB 16-18 weeks $10,995.00 3 $32,985.00 Stated warranty exceptions acceptable to RMLD. Item 11 300 kVa 30 DFLF 208Y/120 ABB. 16-18 weeks $8,262.00 4 $33,048.00 GPaybar yes yes yes yes. yes yes no* Item 1 75 kVa 10 FR3 2401120 Cooper Eaton 10 weeks $3,001.00 5 $15,005.00 Item 2 37:5 kVa10 FR3 2401120 Cooper Eaton 10 weeks $2,238.00 10 $22,380.00 . Item 3 50 kVa 10 FR3 240/120 Cooper Eaton 10 weeks $2,308.00 15 $34,620.00 Exemptions as stated: Rom 445 kVa 30 DF 206Y/120 . Cooper Eaton 12 weeks . $7,093.00 4 $28,372.00 Please see pages 2 tf 3 of Cooper proposal which I highlighted. Item 5 45 kVa 30 DF 20BY1277 Cooper Eaton 12 weeks $7,190.00 4 $28,760.00 Item 6 75 kVa 30 DF 208Y/120 Cooper Eaton 12 weeks $7,422.00 2 $14,844.00 Purchasing Note: Item 775 kVa 30 DF 4BOY1277 Cooper Eaton 12 weeks $7,432.00 2 $14,864.00 'Proposal rejected due to unau0rormed signature on the bid documents. Item 8112.5 kVa 30 DF 208Y/120 Cooper Eaton 12 weeks . $7,839.00 2 $15,678.00 Item 9112.5 kVa 30 DF 48DY/277 Cooper Eaton 12 weeks . $7,829.00 -2 $15,65800 Item 10 500 kVa 30 DF 20BY1120 Cooper Eaton 13 weeks $12,997.00 3 $38,991.00 Item 11 300 kVa. 30 DFLF 208Y/120 Cooper Eaton 13 weeks $9,894.00 4 $39.576.00 $94,225.00 Page 1 Pad Mounted Transibnners Bid.2018-04 Bidder Howard do Power Sales Group Item 175 kVa 10 FR3 240/120 Item 2 37.5 kVa10 FR3 240/120 Item 3 50 kVa 10 FR3 240/120 Item 4 45 kVa 30 OF 20BY/120 Item 5 45 kVa 30 OF 20BY1277 Item 6 75 kVA 30 OF 20BY/120 Item 7 75 kVA 30 OF 480Y/277 Item 8112.5 kVa 30 OF 208Y/120 Item 9112.5 kVa 30 OF 48=277 Item 10 500 kVa 30 OF 208Y/120 Item 11 300 kVa 30 DFLF 208Y/120 M Meet CerhWed Exceptions to Specificathn Specification Firm All forms Check or stated bid Authorized Manufactuw MrNery Date Unit Cost Obf Total Net Cost. MMImment Data Shoots Price filled out Bid Bond reouiramerrts snanature Yes yes yes Yes Yes no yes Howard 8-10 weeks Howard 6-8 Its Howard 6-6 weeks Howard 6-8 weeks Howard 6-8 weeks Howard 6-8 weeks Howard 6-8 weep Howard 6.8 weeks Howard 6-8 weeks Howard 6-8 weeks Howard 6-8 weeks $3,561.00 5 $17,805.00 $2,757.00 10 $27,570.00 $3,092.00 15 $46,380.00 $6,451.00 4 $25,804.00 $6,034.00 4 $24,136.00 $6,985.00 2 $13,930.00 $6,767.00 2 $13,534.00 $7,608.00 2 $15,216.00 $7,487.00 2 $14,974.00 $10,440.110 3. $31,320.00 $13,638.00 4 - $54,552.00 $6,425.00 4 $100.846.00 Page 2 Howard do Power Sales Group Item 1 75 kVa 10 FR3 240/120 AmorphousYes Howard 10-12 weeks $3,448.00 5 yes Yes yes yes no Iles $17,240.00 Item 2 37.5 kVa10 FR3 240/120 Howard 8-10 weeks $2,685.00 10 $26,850.00 Item 3 50 kVa 10 FR3 240/120 Howard B-10 weeks $3,002.00 15 $45,030.00 Item 4 45 kVa 30 OF 20BY/120 Howard 8-10 weeks $6,869.00 4 $27,476.00 Item 5 45 kVa 30 OF 20BY1277 Howard 8-10 weeks $6,425.00 4 $25,700.00 Item 6 75 kVa 30 OF 20BY112O Howard 8-10 weeks $7,115.00 2 $14,230.00 Item 7 75 kVa 30 OF 4BOY1277 Howard 8-10 weeks $7,137.00 2 $14,274.00 Item B 112.5 kVa 30 OF 20BY/120 Howard B-10 weeks $7,739.00 2 $15,478.00 Item 9112.5 kVa 30 OF 480YI277 Howard 8-10 weeks $7,654.00 2. $15,308.00 Item 10 500 kVa 30 OF 208Y/120 Howard 8.10 weeks $10,378.00 3 $31,134.00 Item 11 300 kVa 30 DFLF 208Y/120 Howard 8-10 weeks $12,301.00 4 $49,204.00 $95,646.00 Page 2 RMLDReadhig Municipal Light Department CO= -) RELIABLE POWER FOR -GENERATIONS 230 Ash Street, P.O. Box 150 Reading, MA 01867-0250 September 5,2017 Town of Reading Municipal Light Board Subject: IFP 2018-05 Capacitor Banks Pursuant to M.G.L c. 164 § 56D, on August 2, 2017, a bid invitation was placed as a legal notice in the Middlesex East section of the Daily Times Chronicle requesting sealed proposals for Capacitor Banks. An invitation for proposals was sent to the following eleven companies: E.L. Flowers & Associates Graybar. Hasgo Power Sales Stuart C. Irby Co. Onvia - Power Sales Group Power Tech dba UPSC Prime Vendor, Inc. Robinson Sales Shamrock Power WESCO Sealed proposals were received from three companies: Irby, Graybar and WESCO. The sealed proposals were publicly opened and read aloud at 11:00 a.m., August 30, 2017, in the Town of Reading Municipal Light Department's Audio Visual Spurr Room, 230 Ash Street, Reading, Massachusetts. The proposals were reviewed, analyzed and evaluated by staff and recommended to the General Manager. Move that proposal 2018-05 for Capacitor Bank be awarded to .Stuart C. Irby Co. for $39,664.00 pursuant to Chapter 164 § 56D on the recommendation of the General Manager. The FY17 Capital Budget amount for this item is $30,000. File Bid/FY18/2018-05 Capacitor Banks Capacitor Bank IFP 2018-05 Certified Exceptions to Firm All forms Check or stated bid.. Authorized. Bidder Manufacturer Unit Price (qty . Total Price Delivery Date Price filled out. Bid. Bond requirements signature Irby, yeS yes yes yes yes Capacitor Bank ABB $9,916.00 4 $39,664.00 12-14 weeks Exception: Warranty 8 Patents; Trademarks, Copyrights indemnifications are pass along from - manufacturers and not the responsibility of seller. Purchasing Note: Stated exceptions acceptable to RMLD. Graybar ^4 - yes yes yes yes no* Capacitor Bank GE $103458.00 $41,832.00 10-14 weeks Exception: Attached to bid. Purchasina Note: *Proposal rejected due.to unauthorized signature on the bid documents. WESCO yes yes yes yes yes Capacitor Bank Eaton Cooper $13,190.00 4 $52,760.00 12-14 weeks Exception: Attached to bid. Enaineering. Note: Exceptions were reviewed by staff and found to be acceptable. R M L D Reading Municipal Light Department RELIABLE POWER FOR GENERATIONS 230 Ash Street P.O. Box 150 Reading, MA 01867 -WO Tel: (1.81) 9441340 Fax: (781) 942-2409. Web: wwwxmld.com September 5, 2017 Town of Reading Municipal Light.Board Subject: IFP 2018-06 Padmounted Switchgear Pursuant to M.G.L c.: 164 § 56D, on August 2, 2017, a bid invitation was placed as a legal notice in the Middlesex East section of the Daily Times Chronicle requesting sealed proposals for Padmounted Switchgear. An invitation for proposals was sent to the following.twenty companies: BCS, Switchgear, Inc. Diversified Electric Services, Inc. Electric Control Equipment Irby. Onvia Prime Vendor, Inc. Trayer Engineering Corp. Circuit Breaker Sales Co., Inc. E.L. Flowers & Associates Graybar National Switchgear Power Sales Group Robinson Sales WESCO Circuit Breaker Sales North East Eaton Cooper Power Systems Hasgo Power Sales Omicron Electronics Corp. USA Power Tech dba UPSC Shamrock Power Sealed proposals were received from four companies: S&C Electric c/o E.L. Flowers & Associates, G&W Electric Co. c/o Power Sales Group, Trayer Engineering Corp. and WESCO. The sealed proposals were publicly opened and read aloud at 11:00 am., August 30, 2017, in the Town of Reading Municipal Light Department's Audio Visual Spurr Room, 230 Ash Street, Reading, Massachusetts. The proposals were reviewed, analyzed and evaluated by staff and recommended to the General Manager. Move that proposal 2018-06 for Padmoumtc& Switchgearr be, awarded to-Trayer Engineering Corp. for $175,431 pursuant to Chapter 164 § 56D.on the recommendation of the General Manager. The FY17 Capital Budget amount for this item is $135,000. Brian Smith Jbq, /0 HaAll idJa Coleen O'Brien File: Bid/FY18/2018=06 Padmounted Switchgear Padmounted Switchgear /FP 2018-06 Certified Exceptions to Finn All forms Check or stated bid ' Authorized Bidder Manufacturer Unit Price QAC Total Price Delivery Date Price filled out Bid Bond requirements signature WESCO Yes yes yes yes yes Padmount Switchgear Cooper Eaton $54;750.00 3 $164,250.00 18-19 weeks Padmount Switchgear - Alt. Cooper Eaton $44,625.00, 3 $133,875.00 18-19 weeks Exception: Please see proposal BIRD 8729080 for technical details and clarifications and options. Eaton is proposing SEL -751A relay and Eaton CPS TAP -265 relay as an option. Engineering Notes: Exceptions were reviewed by staff and found to be unacceptable: Does not meet specifications. Trayer Engineering _ es Y Yes yes no' yes Padmount Switchgear Trayer $58,477.00 3 $175,431.00 22 weeks SAC. Electric do EL Flowers yes yes yes yes yes Padmount Switchgear S$C Electric $59,500.00 3. $178,500.00 10-14 weeks Exceation: List of comments/clarifications attached. En aineerina Notes: Exceptions were reviewed by staff and -found to be, unacceptable. Does not meet specifications. I GSW Electric Co. c% Power Sales Group yes yes yes yes yes Padmount Switchgear G&W Electric $70,776.00. 3 $212,328.00 17-18 weeks Exception: Exceptions and clarifications are listed on the attached G&W quote. Enaineerina Notes: Exceptions were reviewed by staff and found to be unacceptable. Does not meet specifications. RMLD September 5, 2017 _Reading Municipal Light Department RELIABLE POWER POR GENERATIONS' 230 Ash Street P.O. Box 150 Reading, MA 01867400 Tel: (781) 944.1340 Fax: (781) 942-2409 Web: wwwmn1daom Town of Reading Municipal Light Board Subject: IFP 2018-07 SCADA-Mate CX Switches Pursuant to M.G.L c. 164 § 56D, on August 2, 2017, a bid invitation was placed as a legal notice in the Middlesex East section of the Daily Times Chronicle requesting sealed proposals for SCADA-Mate CX Switches. An invitation for proposals was sent to the following nineteen companies: BCS Switchgear, Inc. E.L. Flowers & Associates Graybar . National Switchgear Power Sales Group Robinson Sales WESCO Circuit Breaker Sales Co., Inc. Eaton Cooper Power Systems Hasgo Power Sales Omicron Electronics Corp. USA. Power Tech dba UPSC Shamrock Power Diversified Electric Services, Inc. Electric Control Equipment Irby Onvia Prime Vendor, Inc. Trayer Engineering Corp. Sealed proposals were received from three companies: Graybar, Irby and WESCO. The sealed proposals were publicly opened and read aloud at 11:00 am., August 30, 2017, in the Town of Reading Municipal Light Department's Audio Visual Spurr Room, 230 Ash Street, Reading, Massachusetts. The proposals were reviewed, analyzed and evaluated by staff and recommended to. the General Manager. Move that proposal 2018-07 for SCADA-Mate CX Switches be awarded to WESCO for $134,084 pursuant to Chapter 164 § 5.6D on the recommendation of the General Manager. The FYI 7 Capital Budget amount for this item is $140,000. File: Bid/FY18/2018-07 SCADA-Mate IX Switches SCADA-Mate CX Switches iFP 2018-07 Certified Exceptions to Firm All forms Check or stated bid Authorized Bidder Unit Price Q_yt Total Price Delivery Date Price filled out Bid Bond reguirements signature Graybar yes yes yes no no* SCADA Mate switch $33,388.00 4 $133,552.00 16 weeks Exception: Graybar submitted Manufacturer Terms & Conitions. Purchasing Note: Submitted Terms & Conditions from manufacturer not acceptable to RMLD. *Proposal rejected due to unauthorized signature on the bid documents. WESCO yes yes yes no yes SCADA Mate switch $33,521.00 4 $134,084.00 14-16 weeks Irby yes yes yes no no* SCADA Mate switch $35,563.00 4 $142,252.00 16 weeks Exception: Warranty and Patents, Trademarks, Copyrights indemnigications are passed along from Manufacturer and not responsibility of sellet. See S&C quote 595603-17E1589 for details on offering. Purchasina Note: *Proposal rejected due to unauthorized signature on the Non -Collusion Certification form. (statutory). I IELIADLB lOWED. FOR 68NEEA'rION6 September 1, 2017 Town of Reading Municipal -Light Board Subject IFP 2018-10 Trouble Truck with Trade -In Pursuant to M.G.L. c. 164 § 56D, on July 26, 2017 an invitation for proposal was placed as a legal notice in the Middlesex East Section of the Daily Chronicle requesting sealed proposals for one Trouble Truck with Trade -In (2010 - 40' Bucket Truck). An invitation for proposal was sent to the following nineteen companies: Altec Industries Inc. Boston Freightliner, Inc. Coastal International Truck, LLC CUES Dejana Truck Equipment Fredrickson Bros., Inc. G & S Industrial, Inc. James A. Kiley Company LibertyChevrolet Mid -State International Trucks, Inc. Minuteman Trucks Moore GMC Truck Inc. NESCO North American Equipment Upfitters Nutmeg International Trucks, Inc. Place Motor, Inc. Stoneham Ford Sunrise Equipment Company Taylor & Lloyd, Inc Sealed proposals were received from five companies: Altec, Inc.; Minuteman Trucks; Boston Freightliner, Inc.; James A. Kiley Company; Taylor & Lloyd, Inc. The sealed proposals were publicly opened and read aloud at 11:00 a.m. on August 30, 2017 in the Town of Reading. Municipal Light Department's Audio Visual Spurr Room, 230 Ash Street, Reading, Massachusetts. The proposals were reviewed, analyzed and evaluated by staff and recommended to the General Manager. Move that proposal 2018-10 for one: Trouble Truck with Trade -In be awarded to: Minuteman Trucks for $174,125.16 pursuant to M.G.L. c. 164 § 56D on the recommendation of the General Manager. The FY2018. Capital Budget amount for. this item is $200,000.00. C13 n O'Brien File: Proposal/FY18/2018-10 Trouble Truck with Trade -In TrouWe Truck with Tnx bon M.SL ChWar 164 § 56D Proposal 2 018-10 Bldde► Trouble Truck Trade-in TrouWo Truck 'Warranty Trouble Truck QRLhm Resnonsho Excentlons Goat Before Value Purchase price - 22-1 22.2 22.3 Price Less Trade . Date ARO Odder Trade Less Trade including . Warranties .Alter, Inc. $168,705.00 $10,000.00 $158,705.00 $0.00 $0.00 $0.00 $158,705.00. 40 creeks Yes Yes' Minuteman Trucks $186,465.16 $15,000.00 $171,465.16 $485.00 .$1,150.00 $1,025.00 $174,125.16 42 weeks Yes No Boston Freightliner, Inc $186,499.00 $11,850.00 $174,649.00 $1,995.00 $388.00 $2,095.00 $179,127.00 36 weeks Yes Yes 2 Taylor & Lloyd, Inc. $188,757.00 $9,000.00 $179,757.00 $0.00 $0.00 $0.00 $179,757.00 40 weeks Yes No James A. May Company $186,557.00 $6,500.00 $180,057.00 $1,068.00 $150.00 $1,000.00 $182,275.00 39 weeks Yes No Exceptions (25): Too many modifications to the vehicle RMLD was requesting. 2 Exceptions (2): 1) Different model. 2) Different Air Dryer. 'Warranties - Warranty 22.1: 5 Year extended warranty for engine and electronics 100,000. 5 Year extended warranty for transmission (indicate mileage). Warranty 22.2: 5 Year extended warranty for front and rear axles. Warranty 22.3: 5 Year manufacturer extended warranty excluding engine and transmission. Trade -In consists of one 2010 - 40' Bucket Truck 2018-10 Trouble Truck with Trade -In Analysis 1 BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED TOWN OF READING MUNICIPAL LIGHT DEPARTMENT RATE COMPARISONS READING 8, SURROUNDING TOWNS September -17 INDUSTRIAL - TOU RESIDENTIAL RESIDENTIAL-TOU RES. HOT WATER COMMERCIAL SMALL COMMERCIAL SCHOOL RATE 109,500 kWh's 760 kWh's 1600 kWh's 1000 kWh's 7,300 kWh's 1,080 kWh's 35000 kWh's 250.00D kW Demand 75126 Split 25.000 kW Demand 10.000 kW Demand 130.6 kW Demand 80120 Split READING MUNICIPAL LIGHT DEPT. TOTAL BILL $116.23 $201.32 $141.14 $995.61 $194.59 $4,639.60 $736,290.35 PER KWH CHARGE $0.15498 $0.13422 $0.14114 $0.13638 $0.18018 $0.13256 $0.10703 NATIONAL GRID TOTAL BILL $151.90 $358.79 $188.23 $1,454.38 $223.69 $5,650.22 $1,021,449.72 PER KWH CHARGE $0.20253 $0.23919 $0.18823 $0.19923 $0.20712 $0.16143 $0.14848 %DIFFERENCE 30.68% 78.21% 33.36% 46.08% 14.95% 21.78% 38.73% EVERSOURCE(NSTAR) TOTAL BILL $146.81 $260.13 $193.60 $1,433.47 $238A8 $6,948.02 $1,185,688.95 PER KWH CHARGE $0.19574 $0.17342 $0.19360 $0.19637 $0.22081 $0.19851 $0.17235 %DIFFERENCE 26.30% 29.21% 37.170/a 43.98% 22.55% 49.75% 61.04% PEABODY MUNICIPAL LIGHT PLANT TOTAL BILL $85.03 $166.25 ' $112.95 $928.52 $147.55 $4,595.13 $615,858.97 PER KWH CHARGE $0.11338 $0.11083 $0.11295 $0.12719 $0.13662 $0.13129 $0.08952 %DIFFERENCE -26.84% -17.42% -19.97% -6.74% -24.18% -0.96% -16.36% MIDDLETON MUNICIPAL LIGHT DEPT. TOTAL BILL- $98.74 $201.66 $132.75 $959.51 $168.44 $4,762.93 $807,171 A0 PER KWH CHARGE $0.13165 $0.13444 $0.13275 $0.13144 $0.15596 $0.13608 $0.11733 % DIFFERENCE -15.05% 0.17% -5.95% -3.63% -13.44% 2.66% 9.63% WAKEFIELD MUNICIPAL LIGHT DEPT. TOTAL BILL. $116.49 $213.42 $144.38 $1,093.29 $176.48 ' . $5,123.08 $852,766.30 PER KWH CHARGE $0.15398 $0.14228 $0.14438 $0.14977 $0.16249 $0.14637 $0.12396 % DIFFERENCE -0.65% 6.01% 2.30% 9.81% -9.82% 10.42% 15.82% From: Tracy Schultz To: RMLD Board Members Group Cc: Jeanne Foti Subject: AP and Payroll for September Board Book Date: Wednesday, September 06, 2017 10:43:00 AM There were no Commissioner questions on the AP on 7.21.17, 7.28.17, 8.4.17, 8.11.17, 8.18.171 8.25.17, and 9.1.17 - There were no Payroll questions on 8.4.17 and 9.5.17. There were two Commissioner questions on 8.21.17: one regarding no pay for. a departing employee, and one regarding vehicle allowance. The Commissioner was satisfied with RMLD's explanation. This e-mail will be included in the 9-14-17 Board Book. Tracy Schultz Executive Assistant Reading Municipal Light Department 230 Ash Street. Reading. MA. 01867. Tel: -781.942.6489