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HomeMy WebLinkAbout2018-10-09 RMLD Citizens Advisory Board Minutes Town of Reading Ix Meeting Minutes CEwEC OWN ce Board - Committee - Commission - Council: r EA ' 11 RMLD Citizens Advisory Board 2111 DEC 25 AM 9: 54 Date: 2018-10-09 Time: 06:30 PM Building: North Reading Town Hall Location: Room 5 Address: 235 North Street, North Reading, MA Session: Open Session Purpose: General Business Version: Final Attendees: Members - Present: Mr. Dennis Kelley, Chair (Wilmington); Mr. Jason Small, Vice Chair (North Reading); Mr. Vivek Soni, Secretary (Lynnfield); Mr. George Hooper (Wilmington) Members - Not Present: Mr. Neil Cohen (Reading) Others Present: Mr. John Stempeck, Board of Commissioners Ms. Coleen O'Brien, Mr. Hamid Jaffari, Ms. Wendy Markiewicz, Ms. Jane Parenteau, Ms. Tracy Schultz Minutes Respectfully Submitted By: Mr. Vivek Soni, Secretary Topics of Discussion: 1. Call Meeting to Order - D. Kelley, Chair Chair Kelley called the meeting of the Citizens' Advisory Board to order at 6:30 PM. 2. CY19 Budget Presentation Capital Budget - H. laffari, Director of Engineering & Operations Mr. Jaffari reviewed projects completed or scheduled to be completed by December 31, 2018, including the Woburn Street Pole Line Upgrade in Wilmington and the 115kV Transmission Line Upgrade. Mr. Soni asked about pole inspections and Mr. Jaffari explained how 10 percent of poles are tested annually. Mr. Jaffari then went through the list of projects continuing in CY19, including Pad-Mount Switchgear Upgrades, Grid Modernization and Optimization, New Wilmington Substation, and Getaway Improvements at Station 4. Mr. Jaffari reviewed new projects including MA-125 Pole Line Installation for the New Wilmington Substation, Underground Line Extension on Marion Street in Wilmington, 5W5 Andover Access Road Upgrade in Wilmington, and 211-502 and 211-504 Fiber Line Extension at Station 4. Mr. Jaffari then went through the list of annually budgeted and recurring projects. Discussion ensued regarding the best way to present the Capital Budget to the Citizens' Advisory Board in the future. Mr. Hooper made a motion that the Citizens' Advisory Board recommend to the RMLD Board of Commissioners the Calendar Year 2019 Capital Budget in the amount of $7,804,373 as presented on October 9, 2018. Any significant changes are to be submitted Page i I to the Citizens' Advisory Board for review and recommendation, seconded by Mr. Soni. Hearing no further discussion, motion carried 4:0:1 (4 in favor, 0 opposed, 1 absent). Operating Budget - W. Markiewicz, Director of Business, Finance & Technology Ms. Markiewicz explained that the overall Operating Budget is projected to decrease by 2.94 percent with an ending balance of net income of $3.5 million. It's anticipated that fixed costs will account for 80.7 percent of the overall CY19 Operating Budget, of which 71.44 percent is power supply. Fixed costs decreased by about 4.26 percent from FY39 to CY19 due to power supply. The depreciation expense is $4.5 million. There's discussion regarding the$2.5 million return on investment to the Town of Reading so it has been left Flat. Town payments are based on 2 percent of net plant and total almost $1.6 million. Disposal on property is about $100,000. Semi-variable costs represent 19.3 percent of the overall Operating Budget, which is a 2.67 percent increase from FY19 to CY19. Labor is 7 percent at $6.6 million. Employee benefits and pension is $3.6 million and accounts for 3.82 percent. Other operating expenses is$2.6 million and accounts for 2.7 percent of budget. Conservation expenses are almost $1 million and is 1 percent of the budget. Overtime is$1 million and is 1 percent.Tree trimming is almost$900,000 and is 1 percent. All other expenses are less than half a percent of the budget. Total CY19 operating expenses is $93.6 million, as compared to FY19 which is $96.4 million. The $3 million difference is due to power supply. Chair Kelley asked about whether the bad debt is getting better. Ms. Markiewicz stated that she is budgeting closer to actual rather than a place holder. RMLD is 97 percent current on receivables. Ms. Parenteau added for a utility with $92 million worth of revenue, to have under $100,000 of bad debt is exceptional. Ms. Markiewicz stated that the rate of return will come down from 8 percent as the need for capital projects decreases. Ms. Markiewicz: discussed the budgeted net income and the budgeted rate of return, as well as the projected budgeted kWh sold to the rate of return. Ms. Markiewicz reviewed where funds come from for capital projects. The financials for FYI8 haven't been presented because the auditors are waiting for actuarial reports to come through. There shouldn't be any changes In the final numbers. Operating revenues came in slightly over budget, with a total operating income of about $800,000 more than what was budgeted. Net income was budgeted for $4.1 million but came in at$5.2 million actual due to changes in the GASB law, which caused a $700,000 increase. Net income would have been about $4.5 million. FY19 six-months operating expenses should come in at half of what was budgeted. Ms. O'Brien stated that there would be no rate increases at this time. Mr. Small made a motion that the Citizens'Advisory Board recommend to the RMLD Board of Commissioners the Calendar Year 2019 Operating Budget in the amount of $3,529,582 as presented on October 9, 2019. Any significant changes are to be submitted to the Citizens' Advisory Board for review and recommendation, seconded by Mr. Hooper. Hearing no further discussion, motion carried 4:0:1 (4 in favor, 0 opposed, 1 absent). 3. Next Meeting - D. Kelley, Chair November 7th and 14th were noted as possible dates for a November meeting. Staff will follow-up to confirm a date. 4. Adjournment - D. Kelley, Chair Mr. Hooper made a motion to adjourn the Citizens' Advisory Board meeting, seconded by Mr. Soni. Motion carried 4:0:1 (4 in favor, 0 opposed, 1 absent). The Citizens'Advisory Board adjourned at 7:50 PM. As approved on December 19, 2018. Page 1 2 Z - W Q Z CL O - W p� a - Q � O W C4 W H - = W Am C. 00uj00 ` J m w N - a CL Q Q m W I_, m • U W Q 0 Z � U > O � Q o N ' n Z .- tJ W . N Z ►_ ` U Q - a W w (T V w Cn CT ► � W Q = V l LL IL N ► ► m J ~ Y Y p a g CCV (V U V C144 � ~ � h e» ► p w ► W � J � � m ► r p00 u . 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Handout: Ocmbea 9,2018,CAB Meeting Winograd 'ptDapwmenl Statement 0 Budgeted Revenues and Expenses FY18 FY18 FY10 FY19 Jul 201 B-Dec 2018 CY19 Budget Atluel Ell ElamW Stated! Opera600 Revenue. Bess Revenue 9 26,337,621 3 25,799.148 $ 27.786190 9 14,0]1,565 9 2),)81148 FmH Revenue 32,491,810 31,504,638 33,390,196 16,187,346 M.326693 Purchased Parer CapatyTenimu.ion 38,088,87B 39,618,208 37,877,303 16938,852 3),]56,092 Forl Discount, 800080 629,258 833,588 422.148 832,034 Energy Coneervallan Revenue 875.000 648.258 855,924 327.802 tell NYPA 11.200.0001 11190 25111 (13000001 (NIBe)1 (12000001 Total Operating Fall... 50,150.409 9]208743 W31319e 411411 RS 95.130.849 E.psmaee Poway Epenma: 547 Purchases Power-Fuel 31.291,810 30,159,246 32,100198 15,78,791 28.125,893 555 POrclucet Peeer-Capaop 24.08,181 25,600480 22.884.320 12341102 22.789.037 565 PurM..et Power-TranaWa.icn 13.612,"'1] 13.]36.4]9 14892 b3 71N ee8 to 9e)O55 Thal Purchased Pvwer 89,J50,7&e 09,500,184 ]0.06].199 35,286,861 66,009,705 Operating and Maintenance Expenaee: 590 S.,d14 nand Epineenrg 900.77 583,195 1,0)5,75] 53],0)6 1,083,959 581 SIeBONCoulral Room Operators 560.576 809410 50.112 251.055 481852 502 Slabon Tech 392,832 152360 504,300 252,150 522,365 683 Line General Labor 24,818 12.409 30,309 505 Street Lighting 111,446 145,877 138.040 60,020 50,712 580 Meter General 208,412 224,441 212,933 100487 217,383 560 Meledala Management 379,312 537,523 440,005 220,003 442.061 590 Memorial at Structures and Equipment 18,5.0 61 583 Maintenance of Linea-Ovemaed 1,039,276 1,271,070 783322 31 690,537 593 Manemance of Lines-True Trimming 886340 627,962 888.605 449,433 899,534 594 Maintenance Of Lines-Underground 197,002 62,790 484,399 249,199 52],42] 595 Mesa...oce Of Line Transformer 300,000 146928 300,000 150.00 406,498 5% Mentanance of Street Light and Still Syste 4640 13,930 - $98 Line General Leave Time Lador600.00) 235.844 118422 2009 Total Operating aM Maintenance Expenses 6.508,038 5452.e07 5,698,394 2709.6p7 S.e30.014 General&Admin strip Expan.m. 802 Metro Rai 37,464 32.109 31,741 15,871 31100 903 Customer Collection 921,024 1,642.869 1,114,877 557,438 1,151199 904 UnmBMlble Amounts 150,000 89,142 106000 52,500 105,000 916 Integrated Resources 609.232 500,993 495,754 247,877 504,550 918 Energy Comers0on 952,565 673,442 9)5,]12 487.056 984,118 820 Administrative and General Sal 1,983,217 1,075,192 1.908,482 994,246 2,050,283 921 Geed Supplies 25,000 9,998 20,000 10.000 20.000 923 Outside 5ervimsLpel 471,900 54],570 07.900 233,950 533,800 923 Outside Sunless CONrN - 271,081 344,008 17,004 385,700 923 Oulade Sem.,liducstion 269,681 123,942 243,893 121,90 243,893 924 PropeM Insurance 427,200 338,118 426,200 213.100 426,200 925 Inial and Damaged 52,813 Si 47.449 23,725 511.411 926 Employee Pal and Shortage 3,000,437 2,980,459 3,72,890 1,880,495 3,501,615 930 Miecelpeaus,General Expanse 458.094 457,414 486859 242.829 403.07 831 RON Expanded 212.000 198,639 212,000 100.000 212.000 933 Vahitle Expense 391,116 298,595 311,200 155,000 311,200 033 Vehicle exteens-Caudal Clewing (301590) (337,368) 01 (142,220) (253,362) 935 Maintenance of Ganerel Plant 261,660 381,916 335.146 18]5]4 3851000 935 Meinlenmimat Guiloing&GO., 671195 628,254 897195 148850 988800 Total General&AdminiNMive Everted 101N,032 9,979889 11,eBo,7> 5.998.389 12,224.072 011ier Operating Expenses: 403 Depssestian 4,382.000 4,305,969 4.516 ON 2,232,000 4524.000 408 Voluntary PeymeMaWTvrvns 1,800.000 146],473 1,589789 784895 11"1 TOW Other Expenses 5,882,000 5.803,482 8.097. 3016.895 11.094,800 Operal income 5.00.580 8484,400 5No.?n 340401O4 51010M Non Opara6ng Revenuaa(Experou l: 4191nfmot Income 150,000 182.07 250,000 1251 175,000 419 Me,Inwma 590,000 1.077,282 850,000 425,00 850,000 426 Warner,PILOT Payment W Reni (2420430) (2.418,770f (2,480,508) (1,240,253) (2,480,506) 426 Los,an Diposel (150,000) (63,845) (150.000) (75,000) (101 431 Interest Expense (25001 IIO29]1 (180001 (8000) 11"'000) Total Non OPeal Reomue.(apernm) 11.532,8 11]84.1191 FA506) 114,9 1 11.16251 Nal Income 5 4.114,622 9 5,230.251 5 4053.232 5 1,630831 6 3,529502 Handout: October 9,2018,CAB Meeting Municipal light Department Statement of Budgete0 Revenues and Erpmees CY19 FY19 Ch.,.In BUDGET BUDGET Budge% OWO,Revenues Base Revere 3 2],]01,148 J 27.758,190 (01%) FUN Revenue 30,326,893 33,390,190 (92X) Puramed Prover CepechyTemmusbn 3],]56,692 37,877303 (0.3%) Formed Dlwpmle 832.034 033,586 (0.1X) Energy COneervnion Revenue 662.D01 655.924 0.9% NYPA 112140000) (1.200 Opp) O.p% Ties Operating Revenues 06.1J9.M9 99.MJ 198 114., Expenses Powe Expenses: 541 PurNused Power-FUN 29,126,803 32,190,196 (9.5%) 555 Purchased Power-Capacity 2$789,837 22,8&220 (0.4%) 565 Purchased POate-Tomroaaion 14981,055 14,992,98) (0.2X1 Total PindneN Power ;4883]85 ]0A0U99 14.5%) Operating and Maintenance Expenses: 500 Supervision and EnylnaeM, 1,003,959 1.075,757 O9% 501 SainonlContrul Room OperHoo 401.952 602,112 (4.0X) 502 Station Tech 522,305 504,300 3.6% 583 Lina Gen0,*U8m 30,309 24,816 22.1% 585 Sloe lighting 50,122 43,900 154% 586 Meter General 217,383 212,933 21% 586 MeeNa Management 442,061 440,006 0.5% 593 Mainlenanu 0l Lines-Overused 890.537 783,322 137% 593 Maintenance N Lines-Toe Trimming 899,534 098,885 0.1% 594 Maintenance 0 Lines-UMe ,mund 527,427 484,399 8.9% 595 Maintenance M Line Trenebrmen 408,498 304000 35.5% 596 Maintenance of Street GgM and Signal Sura - 92,072 (100.0%) 590 Una Genre Leave Time La0or 283,299 236.044 19.6% TNN Opereing and Maintenance Expenses 5,836.044 5,599,394 4.2% General 6 Adminierelive Expanses: 902 Meer Readlrp 34.100 31,741 7,4% 903 cea.mar Culaxor 1,154,199 1114,671 3.5% 904 Uncolectiea Accounts 105,000 105,000 00% 910 1ntagreted Resources mi 495,154 1.B% 916 Enxgy Conaervatlan 984,118 9]5,]12 0.9% an Administrative and Geperal Before 2,050.263 1.908691 3.1% 921 Olen supple. 20,000 20.000 0.0% 923 Outside Services-Legal 532.900 07,900 13.9% 9£3 Ouleee 5ervicesConMc1 385,700 344,0118 12.1% 923 Outed,SarvicasEduceBon 243,083 243,093 D.0% 924 PrapeM insurance 420,200 420,200 0.0% 925 Injuries a0d Oamaget 56,411 47449 18.9% 928 Employee Pensions and Benefits 3.581,615 3,]]2.890 (5.1%) 930 MiseNMneous General Expense 493,477 485.659 1.6% 931 Rent Expense 212,000 212,000 0.0% 933 Vehicle Expense 311,200 311,200 0.0% 933 VehicM Expense-Comal Clearing (253,302) (2M,44O) (10.9%) 935 Maintenance of General Plant 385,000 335148 14.9% 935 Maintenance of Budding 6 Garage 990.208 09],1% 11.1% Teel General B Administrative Expenses 12,220,0]2 11,980,171 19% Other Operating Expenses: 403 Depreciation 4,5241400 4,516,000 0.2% 400 VNUMary PeyrMnta to Towne 1.570,660 1,509,189 01% TOW Omer Expense. 6,OM,BB0 6,085789 0.1% Operating Income 5,101,060 5.589]39 (8.0%1 Non Operating Revenue.(Expenses): 419 Intense In.. 175,000 250,000 (30.0%) 419 ghnlnwme 850,000 850,000 0.0% 426 VNUNary PILOT Payment b Reeding (2,480,506) (2480,506) 0.0% 429 Loss on Disposal (100,000) (150,000) (33.3%) 4311enM Expene, (16,000) (IBM) am TNM Nun OpereOq Revenues Expensee _(1,571,6061 (1,546,506) 19% NN Income 3 3,529,582 6 4,053.232 (12.9%)