HomeMy WebLinkAbout2017-11-15 RMLD Citizens Advisory Board MinutesOFR
Town of Reading
�- :M
Meeting Minutes
iBJ9°lYCO4Q��
R Y
Board - Committee - Commission - Council: R CA�, i A
RMLD Citizens Advisory Board 201a'"AR -6 AN 9,' 8
Date: 2017-11-15 Time: 6:30 PM
Building: Reading Municipal Light Building Location: Winfred Spurr Audio Visual Room
Address: 230 Ash Street Session: Open Session
Purpose: General Business Version: Final
Attendees: Members - Present:
Mr. George Hooper, Chair (Wilmington); Mr. Jason Small, Vice Chair (North
Reading); Mr. Dennis Kelley, Secretary (Wilmington); Mr. Neil Cohen
(Reading); Mr. Vivek Soni (Lynnfield)
Members - Not Present:
Others Present:
Ms. Coleen O'Brien, Ms. Wendy Markewicz, Ms. Kathleen Rybak
Minutes Respectfully Submitted By: Mr. Dennis Kelley, Secretary
Topics of Discussion:
1. Call Meeting to Order - G. Hooper, Chair
Chair Hooper called the meeting of the Citizens' Advisory Board to order at
6:30 PM and noted that the meeting was being audio recorded.
2. General Manager's Update - C. O'Brien, General Manager
Ms. O'Brien updated the CAB on RMLD's response to the recent storm. Staff will be
having a post -storm meeting with representatives from the Town of Reading to review
communications. The Technology Roadmap includes an outage management system
(OMS), which will enable RMLD to more easily communicate outage information.
RMLD is currently updating the mesh network to support the smart meters and an
OMS.
3. Presentation of FY17 Audited Financial Statements - W. Markiewicz, Director of
Business Finance
Materials: Draft Town of Reading, Massachusetts, Reading Municipal Light Department, Annual
Financial Statements, for the Year ended June 30, 2017
Handout: Statement of Revenues, Expenses and Changes in Fund Net Assets (for period ending
9/30/17)
Ms. Markiewicz, Director of Business Finance, reported that Melanson Heath presented
the FY17 Audited Financial Statements at both the Audit Committee and the Board of
Commissioners meetings on November 9th. The audit presentation was delayed
pending the actuarial report (done with the Town of Reading) that specifically talks to
OPEB (other post -employment benefits) and the new GASB 74 requirements. The
final actuarial report was received November 2nd. Melanson Health gave RMLD an
unqualified opinion, which says that the financial statements are presented fairly in all
material respects.
Page 1 1
There were changes to GASB 68 (related to the Pension Trust), which impacts how
unfunded pension liability is reported. In the past, RMLD was only required to report
on the balance sheet the unfunded portion of the Pension Trust liability. However,
GASB changed to require the entire pension liability, as well as the asset, be shown on
the books. Therefore, the auditors needed to go back and restate the numbers for
FY16. This means the final net position for FY16 (as stated in the Audited Statements
for FY16) does not match what is reported in the FY17 Audited Statements. Notes on
page 37 explain this change. Internally, this required some adjustments to get the
books in order.
Ms. Markiewicz reviewed the Statement of Net Position (page 7). Unrestricted Cash is
up about $2m, however, if you look at accounts payable, we are also up about $2m.
This reflects the timing of when bills are paid and the accruals. Receivables is
consistent from FY16. Restricted Cash is where you will see a difference from last
year's audit book (as noted above). This includes the $5.7 of our pension cash in
that number. Capital assets has gone up, which is a reflection of our capital
projects. Net pension liability is $13m; we have cash of $5.7, therefore, the
unfunded portion is $7.4m.
Net OPEB obligation is a new category. The actuarial report tells us what we should
put into OPEB in order to fund this obligation. The report told us that we were
supposed to fund $138k less than we needed, so this was underfunded by $138k.
Therefore, there is a new line item on the financials for "Net OPEB Obligation" of
$138K. Next year the entire OPEB obligation will be put on the books (per GASB
75). The OPEB liability is approximately $10m, and we have cash of $2.8m. You
will see $7.2m of OPEB liability next year. Net Position - Restricted for Pension Trust:
this is new and reflects the cash portion (in a Pension Trust) that we have put on the
books this year.
Ms. Markiewicz reviewed some of the highlights of remaining financial statements:
• Statements of Revenues, Expenses, and Changes in Net Position (page 8):
Electric Sales were up 3.93%, but kilowatt hour sales were down about
0.09%. This is reflective of flat sales. However, due to the increase in rates,
sales came in higher so we could recover our costs, which went up about
3.8%.
• Statement of Fiduciary Net Position (page 10): Shows the cash for the OPEB
Trust Fund, which can be used toward the liability.
• Restricted Cash and Investments (page 18) - the Pension Trust is new on the
books this year.
• Capital Assets (page 20) - reflects the major increases in infrastructure.
• Schedule of OPEB Funding Progress (page 40) - shows assets of $2.8m, a
liability of $10m, and the unfunded liability of $7.1m, which will be shown on
the books next year. Page 41 goes into a little more detail of the same
information, and page 42 speaks to the portion of deficiency.
Ms. Markiewicz then provided Draft FY18 Q1 Statement of Revenues, Expenses and
Changes in Fund Net Asset, noting that we are on target for most items. Chair Hooper
asked about Street Lighting (585 and 596) which shows 100% of budget remaining.
Ms. Markiewicz noted that these are new FERC numbers being used this year and
expenses may not be hitting properly, or the work may not have been completed at
this point in the year. Ms. O'Brien noted that this budget was developed and
formatted using FERC accounting numbers, which is new for FY18. Staff will look into
these accounts, as well as Maintenance of Line Transformers (595), and follow-up.
Page 1 2
4. Review of CAB Policies - G. Hooper, Chair
Chair Hooper opened discussion on review of CAB Policy 1 and 2, noting that the
policies are written to be consistent with the 20 -year Agreement. Mr. Small asked
about the term for Vice Chair, as he was recently appointed Vice Chair. Chair Hooper
clarified that officer terms are staggered, and that Mr. Small's term would run for two
years from his date of appointment. It was noted that on Policy 1, under Section III
C. there was no language relative to the term for the Secretary. The group agreed
terms for all officers should be two years.
Mr. Cohen made a motion that CAB Policy No. 1, Section III, C., be amended to
include the following: The Secretary will serve a two-year term and will be eligible for
re-election as Secretary for two consecutive terms. Upon completion of such terms,
one two-year term must pass prior to being eligible for re-election as Secretary,
seconded by Mr. Small. Hearing no further discussion, motion carried 5:0:0 (5 in
favor, 0 opposed, 0 absent).
Ms. O'Brien stated that Policy 1 would be updated, and both policies scheduled for
review on a three-year cycle.
5. Next Meeting - G. Hooper, Chair
Ms. O'Brien asked if there were any questions in follow-up to the recent Board of
Commissioners meeting. Ms. O'Brien reported that (at a recent Board meeting) there
was a customer inquiry regarding the tree trimming program, and a suggestion that
some type of contribution be made to the Town for trees that are removed by the
RMLD. This issue will be reviewed by staff and any recommendation will be made to
the Board and instituted fairly across all four towns
The next meeting of the CAB will be December 13, 2017.
Mr. Kelley made a motion to adjourn the Citizens' Advisory Board meeting, seconded
by Mr. Small. Hearing no further discussion, motion carried 5:0:0 (5 in favor, 0
opposed, 0 absent).
The Citizens' Advisory Board Meeting adjourned at 7:21 PM.
As approved on February 28, 2018.
Page 1 3
Town of Reading, Massachusetts Handout. for November 15, 2017, CAB Meeting
Municipal Light Department
Business Type Proprietary Fund
Statement of Revenues, Expenses and Changes in Fund Net Assets
9/30/2017
Actual Budget Remaining Remaining
Year to Date Full Year Budget Budget %
Operating Revenues
Base Revenue
Fuel Revenue
Purchased Power Capacity
Forfeited Discounts
Energy Conservation Revenue
NYPA Credit
Total Operating Revenues
Expenses
Power Expenses:
547 Purchased Power Fuel Expense
555 Purchased Power Capacity
565 Purchased Power Transmission
Total Purchased Power
Operations and Maintenance Expenses:
$7,319,135.19
$26,337,621.00
$19,018,485.81
72.2%
8,147,517.46
32,491,810.00
24,344,292.54
74.9%
10,555,785.25
38,088,978.00
27,533,192.75
72.3%
226,229.36
800,000.00
573,770.64
71.7%
184,533.10
675,000.00
490,466.90
72.7%
(214,885.13)
(1,200,000.00)
(985,114.87)
82.1%
26,218,315.23
97,193,409.00
70,975,093.77
73.0%
7,242,952.02 31,291,810.00 24,048,857.98 76.9%
6,314,859.25 24,476,161.00 18,161,301.75 74.2%
4,311,499.76 13,612,817.00 9,301,317.24 68.3%
17,869,311.03 69,380,788.00 51,511,476.97 74.2%
580 Supervision and Engineering
112,766.41
829,705.00
716,938.59
86.4%
581 Station Supervisor
36,571.87
130,662.06
94,090.13
72.0%
581 Line General
160,134.95
638,107:80
477,972.05
74.9%
582 Control Room
96,420.49
473;878.00
377,457.51
79.7%
585 Street Lighting
(240.10)
1f9,398.08
119,638.10
100.2%
586 Meter General
57,968.11
222,280.00
164,311.89
73.9%
588 Materials Management
116,141.31
450,828.00
334,686.69
74.2%
590 Maintenance of Structures and Equipment
91,772.54-
495,731.00
403,958.46
81.5%
593 Maintenance of Lines - Overhead
307,232.49
2,036,277.00
1,729,044.51
84.9%
594 Maintenance of Lines - Underground
27,806.16
198,592.00
170,785.84
86.0%
595 Maintenance of Line Transformers
0.00
300,000.00
300,000.00
100.0%
596 Maintenance of Street Lights
(40.67)
:46.242.00
46,282.67
100.1%
Total Operations and Maintenance Expenses
1,006,533.56
5,941,700.00
4,935,166.44
83.1%
General & Administration Expenses:
902 Meter Reading
903 Customer Collection
904 Uncollectible Accounts
916 Energy Audit
916 Energy Conservation
920 Administrative and General Salaries
921 Office Supplies and Expense
923 Outside Services
924 Property Insurance
925 Injuries and Damages
926 Employee Pensions and Benefits
930 Miscellaneous General Expense
931 Rent Expense
935 Maintenance of General Plant
935 Maintenance of Building & Garage
Total General & Administration Expenses
Other Operating Expenses:
403 Depreciation
408 Voluntary Payments to Towns
Total Other Expenses
Operating Income
Non Operating Revenues (Expenses):
419 Interest Income
419 Other Income
426 Return on Investment to Reading/Loss on
Disposal
431 Interest Expense
Total Non Operating Revenues (Expenses)
9,020.24
39,847.00
30,826.76
77.4%
407,065.52
1,986,508.00
1,579,442.48
79.5%
37,500.00
150,000.00
112,500.00
75.0%
105,164.70
537,898.00
432,733.30
80.4%
105,278.54
952,565.00
847,286.46
88.9%
261,846.39
1,017,151.00
755,304.61
74.3°x6
63,261.24
350,000.00
286,738.76
81.9%
110,955.41
471,900.00
360,944.59
76.5%
84,446.97
427,200.00
342,753.03
80.2%
13,185.19
52,613.00
39,427.81
74.9%
671,575.23
3,000,437.00
2,328,861.77
77.6%
26,829.97
207,205.00
180,375.03
87.1%
54,801.65
212,000.00
157,198.35
74.2%
58,615.78
281,880.00
223,264.22
79.2%
92,948.29
674,157.00
581,208.71
86.2%
2,102,495.12
10,361,361.00
8,258,865.88
79.7%
1,076,497.26
4,362,000.00
3,285,502.74
75.3%
380,555.01
1,500,000.00
1,119,444.99
74.6%
1,457,052.27
5,862,000.00
4,404,947.73
75.1%
3,782,923.25 5,647,560.00 1,864,636.75
38,721.52 150,000.00 111,278.48 74.2%
257,406.28 890,000.00 632,593.72 71.1%
(604,942.50) (2,570,438.00) (1,965,495.50) 76.5%
(1,306.29) (2,500.00) (1,193.71) 47.7%
(310,120.99) (1,532,938.00) (1,222,817.01) 79.8%
Net Income $3,472,802.26 $4,114,622.00 $641,819.74