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HomeMy WebLinkAbout2019-03-21 RMLD Board of Commissioners Minutes RECEIVED TOWN r Town of Reading T � ,vr CLERKRK Meeting Minutes REA NG, PAA. Board - Committee - Commission - Council: RMLD Board of Commissioners Date: 2019-03-21 Time: 07:30 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: David Hennessy, Chair; David Talbot, Vice Chair; John Stempeck, Commissioner; Thomas O'Rourke, Commissioner; Philip B. Pacino, Commissioner Members - Not Present: Others Present: RMLD Staff: Colleen O'Brien, General Manager, Hamid Jaffari, Director of Engineering and Operations; Charles Underhill, Director of Integrated Resources; Wendy Markiewicz, Director of Business, Finance, and Utility Technology; Tracy Schultz, Executive Assistant Citizens' Advisory Board: Dennis Kelley, Chair Town of Reading: Karen Herrick, Finance Committee. Minutes Respectfully Submitted By: Philip B. Pacino, Secretary Pro Tem Topics of Discussion: Call Meeting to Order Chair Hennessy called the meeting to order and read RMLD's Code of Conduct. Chair Hennessy announced that the meeting is being videotaped at the RMLD office at 230 Ash Street, for distribution to the community television stations in North Reading, Lynnfield,and Wilmington. Public Comment Chair Hennessy welcomed Mr. Kelley and asked Mr. Pacino to serve as Board Secretary. There was no public comment. Report of the Citizens'Advisory Board Meeting on February 13,2019 Mr. Kelley stated that the CAB discussed the minimal outages caused by windstorms that have occurred over the lost few months. Maintenance is working. The purchase power agreement motion passed. Chair Hennessy added that the possibility of the four towns purchasing electric ,ses was discussed. it of Board Minutes made a motion,seconded by Mr.Stempeck, that the Board approve the meeting ,cember 20,2018 and January 24, 2019, on the recommendation of the General ded: 5:0:0. Page I 1 General Manager's Report-Ms. O'Brien a. Report on attendance at the NEPPA Legislative Rally In Washington DC, from February 24 to February 28,2019 Ms. O'Brien thanked the Board for allowing her to attend and asked Mr. Underhill to report. Mr. Underhill explained that it was an opportunity to meet with Representatives and Senators from Massachusetts and convey issues of concern. The voters in their districts are owners of the system and want to be sure the value of their interests is protected. Mr. Underhill stated that the issue he was most responsible for was discussing the wholesale market. ISO New England runs a very complex market and it is also o very volatile market. Prices fluctuate from year-to-year, and every time there has been a capacity auction over the last thirteen years, there has been a different set of rules. ISO is taking the position that it is necessary because buyers are figuring out how to take advantage of the system. Mr. Underhill remarked that the NYSE and Chicago Mercantile Exchange seem to function well in the exchange of stocks and commodities. The volatility in pricing and the Instability of the process makes it very difficult for capital-intensive businesses to plan their future. The capacity market has experienced a 500 percent swing over a 10-year period. The reason for that is ISO isn't able to manage the planning process anymore because the market structure is put out to bid. Their job isn't to maintain a stable cost structure; it's to make sure electricity is available. 150 is regulated by FERC. Mr. Underhill indicated that he would have FERC review the market structure and come up with a better approach that is more transparent and removes the volatility. Ms. O'Brien stated that they are seeking the formation of a blue-ribbon committee to apply pressure; there isn't one entity that's responsible: it's a complex concept with many legislative branches that represent stakeholders. At NEPPA a panel of experts in the field explained the changes that hove occurred from the late 1980s through the present and how the capacity market has gotten to where it is. Ms. O'Brien stated she has asked NEPPA to have the some presenters at the annual NEPPA conference, so that the Board can understand the history. Mr. Underhill stated that 5G on poles was also discussed.The FCC has given a 90-day window for review and approval of 5G requests. That's going to be difficult because infrastructure has to be replaced. Ms. O'Brien added that the ruling that states the requests must be quickly addressed doesn't consider logistics and safety. Mr. Talbot asked if there had been any inquiries from carriers. Ms. O'Brien replied in the negative. Mr. Talbot stated that RMLD can design forms and set technical specifications. Mr. Stempeck asked about charging for installation. Mr. Talbot replied that RMLD can charge a fee and recover costs. b. Report on Select Board Meeting Updates Ms. O'Brien stated that she has been meeting with the Town Administrators, Town Managers, and Select Boards. On Monday she met with the Lynnfield Town Manager and presented at the Board of Selectmen meeting. Lynnfield asked for help with solar projects, requested commercial auditing for their water pump efficiency, and Green Communities was discussed. Green Communities is a Massachusetts collaborative that Eversource and National Grid have for customer rebates. Lynnfield's Town Manager came from a town that had Green Communities. He wants RMLD to be part of it, but RMLD isn't paying into the program. Ms. O'Brien stated that the RMLD is looking into any potential collaborative efforts. The Director of Green Communities lives in Lynnfield. Ms. O'Brien added that the Board of Selectmen commented on the nice and neat jobs done by RMLD employees. Mr. O'Rourke asked about potential marketing opportunities for solar. Ms. O'Brien replied that RMLD just ran community information sessions for homeowners that included the benefits of going solar. Ms. O'Brien stated that Mr. Underhill is working on community solar projects. Ms. O'Brien stated she will be meeting with the Reading Town Manager and presenting on the basics of electricity and highlight each of RMLD's divisions at the Reading Select Board in May. Mr. Talbot asked about Green Communities. Ms. O'Brien stated that RMLD has been speaking with the Executive Director of the program and looking at ways to coordinate and access resources and of potential joint ventures. Page 1 2 Integrated Resources Division-Mr. Underhill a. Power Supply Report-January 2019 Mr. Underhill reported that things are going well and discussed the differential between budget to actual for total purchase power expenses for the month of January. Actual is down because January was warmer than average. Sales and load were dawn. Mr. Underhill then discussed budgeted energy casts versus actual. Energy is most reflective of where the loads are. Price is relatively fixed under RMLD's power supply agreements. Regarding transmission costs, Mr. Underhill explained that if peaks are down RMLD doesn't pay as much. Capacity costs don't change because they are set in the summer and are paid as a flat monthly rate. Mr. Underhill then reviewed kWh purchased by resource.The market has the potential to be the most volatile. In January the loads were less than the energy in the portfolio. RMLD was a net seller into the market. b. First Light Power Resources Mr. Underhill explained that RMLD has the opportunity to buy an additional three percent of its load from a hydro resource that is dispatchable.There are two plants in Connecticut that deliver to the Massachusetts hub and have storage capability. RMLD will be getting REQS with it. It will be about $51 a megawatt hour. Around-the-clock energy prices are between $45 and $50 a megawatt hour and are between $48 and $50 a megawatt hour during peak times, so this is close to the marginal energy price for a hydro-electric resource.This will improve the non-carbon aspects of RMLD's portfolio on the AK31 report. This is a ten-year deal and will start on April I if approved. Mr. Pacino made a motion, seconded by Mr. Talbot, that the RMLD Board of Commissioners authorize the General Manager of the Reading Municipal Light Department to finalize negotiations and execute a contract with First Light Power Resources for the output of the Shepaug and Stevenson Hydroelectric facilities, on the recommendation of the General Manager. Motion Carried:5:0:0. There was discussion on the meaning of"dispatchable" and Green Communities. c. Energy New England Mr. Pacino made a motion, seconded by Mr. Talbot, that the Board of Commissioners approve the Executive Session minutes of September 20, 2018, October 18, 2018 and February 13, 2019, on the recommendation of the General Manager. Motion Carried: 5:0:0. Chair Hennessy noted that Ms. Herrick had arrived. Financial Report-December 2018-Ms.Marklewicz Ms. Markiewicz reminded the board that RMLD just closed a 6-month transition period to switch to a calendar year. Ms. Markiewicz explained that can make the financials misleading. When you try and divide a 12-month budget cycle into six months: timing matters. Ms. Markiewicz stated this is a draft and that the auditors will present the final financials. The actuarial report is holding things up, and, therefore, OPEB and pension may change. Ms. Markiewicz reviewed the cash balances. The operating fund is $18 million. The combined depreciation fund and construction fund are at $10 million in preparation for upcoming capital projects for 2019. Sick- leave cash has come down to $2.9 million. The pension trust is at $5.8 million. Ms. Markiewicz mentioned customer deposits, hazardous waste, uncollectible accounts, and the deferred energy conservation project reserve. The rate stabilization fund is $7 million. Ms. Markiewicz then reviewed the year-to-date operating and maintenance expenses and explained due to timing RMLD appears under budget for the six months ending December 31 by $800,000. There are many components to that, including vacancies and the timing of projects. Ms. Morkiewicz then discussed how RMLD continually reinvests in capital infrastructure. RMLD is taking its rate of return and adding more. Except for 2015, RMLD has gone beyond the depreciation fund every year between FY 14 and FY 18 to update the capital infrastructure. Ms. Morkiewicz stated that January and February were warmer than anticipated. Mr. O'Rourke asked for a sense of the revenue after the first quarter. Ms. Markiewicz replied that it's too early to determine since it's currently Page 13 Financial Report-December 2018-Ms.Markiewicz March, but January and February hod a 3.5 percent loss of kWh sales. This was due to the weather. Ms. Markiewicz added that It is going to be difficult to compare year-to-year this year due to the change to a calendar year. The auditors won't do comparative financials. Ms. O'Brien stated that the weather is significant and suggested that Mr. Underhill look at the reduction, per class, in use. Mr. Kelley stated that he tracks Wilmington's utility costs and trends weather.It shows that weather drives savings. Ms. Herrick noted that the capital plan varies year-to-year and asked what Ms. Markiewicz thinks the number for FY19 will be. Ms. Markiewicz stated that FY 19 is over as of December 31 due to the transition to the calendar year and the number shown Is for six months. Ms. Herrick asked if the capital will be significantly higher for the twelve-month period. Ms. Markiewicz replied that it will be about $9.3 million. Ms. Herrick asked how often the cash rate stabilization fund is dipped into. Ms. Markiewicz replied that it has not been utilized in the eight years that she has been working at RMLD. Mr. Pacino added in his 33 years on the Board it has been used seven or eight times. Ms. Markiewicz pointed out that if RMLD were to suffer a catastrophic event, such as the loss of a substation, it could cost $7 or 8 million to recover. RMLD wouldn't want to burden customers with that cost:in that case the stabilization fund would be needed. Ms. Herrick asked referred to the Municipal Statement of Revenues and stated that legal fees were significantly more. Ms. Markiewicz stated that is due to legal issues with FERC. Ms. O'Brien explained that FERC implements changes and the forty-one municipals in Massachusetts aggregate counsel to represent their interests. Most often, the case is settled, and money is received back. Mr. Underhill explained that the large increase was due to unanticipated FERC litigation. The municipals were trying to keep Mystic 8 and 9 up and running. It resulted in a $250,000 legal expense, however, the affirmation of the running of the plant will save RMLD $2 million a year beginning in 2023. Ms. Herrick asked if "fuel revenue" is the some as the "fuel charge" item on her bill. Mr. Underhill and Ms.Markiewicz affirmed. Engineering and Operations Report-Mr.JaBari Mr. Jaflari reviewed major construction projects that are underway or recently completed, including 4WS/4W12 getaway improvements at Station 4, 3WI3 repairs due to a motor vehicle accident 5W5 Andover access road upgrade, the Station 3 battery storage project,and Station 4 getaway replacements.Mr.Jaffari then discussed area upgrade projects,including secondary and main upgrades and underground facility upgrades.Maintenance programs were reviewed. Lynnfield has 30 poles awaiting transfer, Reading has 30 transfers and 18 pull poles, North Reading has 3 transfers and 20 pull poles, and Wilmington has 28 transfers and I pull pole. Reliability indices are below national and regional averages. Causes of outages are well below the 5-year average, but it is only reflecting two months into the year. Incidents of motor vehicle accidents have been high.The February 25 windstorm as a cause of outages was mentioned. RMLD Procurement Requests Requiring Board Approval-Mr.Jalfari IFB 2019-09 One(1)Class V Fork Truck with 12,000 1. Load Capacity with Trade-In Mr. Jaffari explained that the invitation to bid was sent to eight vendors; there were two bidders and the lowest took exception. RMLD wanted a limited fork truck and the vendor offered a full. This would impede movement inside the storage area. The bid was therefore awarded to the next lowest and most responsible bidder. Mr. O'Rourke asked how many total bids were received. Mr. Jaffari replied: two. Mr. O'Rourke remarked that he would have expected more respondents. Mr. Pacino made a motion, seconded by Mr.Stempeck, that bid 2019-09 for One (1) Class V Fork Truck with 12,000 Ib. Load Capacity be awarded to Northland Industrial Truck Company, Inc., as the lowest and most responsible bidder, for $60,500.00, pursuant to M.G.L. Chapter 30B, on the recommendation of the General Manager. Motion Carried:5:0:0. Page 1 4 IFP 2019-10: Pole Mounted Transformers Mr. Jaffari stated this bid is for pole top transformers for new service and for maintenance upgrades. Mc O'Rourke asked if it was possible to do o longer-term blanket order. Mr. Jaffari explained RMLD did that with the smart grid switches, but the price of metal is volatile.Mr. Jaffori stated he doesn't know of anyone who has done that, but it might be possible to have the delivery staggered. Mr. Pacino made a motion, seconded by Mr. Stempeck, that proposal IFP 2019-10 for Pole Mounted Transformen be awarded to: Graybor Electric Company, Inc., for a total of $68,2241, pursuant to M.G.L.c. 164 Section 561),on the recommendation of the General Manager. Motion Carded:5:0:0. IFP 2019-11: Pad Mounted Transformers Mr. Jaffari explained that this bid is for pad mount transformers. Mr. Pacino made a motion, seconded by Mr. Stempeck, that proposal IFP 2019-11 for Pad Mounted Transformers be awarded to: WESCO Distribution, Inc., for $206,755.00 and Howard Industries, Inc.,c/o Power Sales Group, Inc., for$87,120.00, for a total of$293,875.00, pursuant to M.G.L.c. 164 Section 56D, on the recommendation of the General Manager. Motion Carded: 5:0:0. General Discussion Mr. Pacino stated that the pole problem in Wakefield that he had previously mentioned was solved: the pole was moved two feet. Mr. Pocino noted that the business that had resided in RMLD's Haven Street building has moved out and stated that he hopes another business moves in. Meeting dates were discussed. Adjournment At 8:59 p.m., Mr. Pacino made a motion, seconded by Mr. O'Rourke, that the Board go into Executive Session to consider the purchase of real property and to discuss confidential, competitively-sensitive and proprietary information in relation to making, selling, or distributing electric power and energy,end return to Regular Session for the sole purpose of adjournment. m ers minutes Page 1 5 READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS REGULAR SESSION THURSDAY, MARCH 21 , 2019 APPROVAL OF BOARD MINUTES DECEMBER 20, 2018 AND JANUARY 24, 2019 ATTACHMENT 1 rq "i Town of Reading Meeting Minutes lOP4aP' Board - committee - commission - Council: RMLD Board of Commissioners Date: 2018-12-20 Time: 07:30 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: David Hennessy, Chair; David Talbot, Vice Chair; John Stempeck, Commissioner; Thomas O'Rourke, Commissioner; Philip B. Racine, Commissioner Members - Not Present: Others Present: RMLD Staff: Hamid Jaffari, Director of Engineering and Operations; Charles Underhill, Director of Integrated Resources; Tracy Schultz, Executive Assistant Citizens' Advisory Board: Vivek Soni, Member Town of Reading: Vanessa Alvarado, Select Board Member and RMLD Liasion RMLD Staff: Nick D'Alleva, Maureen Hanifan, Brian Smith, Vaughn Bryan, Patricia Mellino, Paul McGonagle, Joyce Mulvaney, Katie Mahan, Matt Brown, Tom 011ila, Ben Thivierge, Paul Galvin, Peter Price, Rahul Shah, Laurie Ann Sylvia, Trevor Legere IBEW Local 103: Louis Ciarclone, Attorney Minutes Respectfully Submitted By: Thomas O'Rourke, Secretary Pro Tem Topics of Discussion: Call Meeting to Order Chair Hennessy called the meeting to order and read RMLD's Code of Conduct. Chair Hennessy announced that the meeting is being videotaped at the RMLD office at 230 Ash Street, for distribution to the community television stations in North Reading, Lynnfield, and Wilmington. Public Comment Chair Hennessy welcomed Mr. Soni and Ms. Alvarado, who had no comments. Chair Hennessy welcomed the RMLD employees in attendance. Mr. O'Rourke agreed to serve as secretary. Mr. Soni commented that Mr. Underhill gave a presentation at the CAB meeting the night before. Ms. Alvarado commented that the Town is in the process of scheduling a meeting with legal counsel to discuss RMLD's payment to the Town and that the Select Board is meeting on the eighth of January. Mr.Stempeck and Mr.Pacino stated that they plan on attending. There was no public comment. Page I I Report of the Cltizeni Advisory Board Meeting on December 19,2018 Mr. Pacino added to Mr. Soni's previous comments, stating that Ms. Markiewicz reviewed the audit results with the CAB. Report of the Chair a. Discussion and Update Quantifying RMLD's Current Renewable Supply Portfolio Mr. Talbot stated that this agenda item is regarding a prior discussion on RMLD's renewable/sustainable portfolio and what the terminology means. The State has an emissions reporting system. Because RMLD is a muni doesn't have to report. But if RMLD did choose to report, its renewables would be close to zero. Mr. Talbot added that RMLD should stick to common definitions. Mr. Stempeck asked what the implications are whether RMLD should handle its RECs differently or change where its power supply is purchased from. Mr.Talbot stated that there aren't any implications unless RMLD wants there to be. Mr. O'Rourke commented on the importance of getting the vocabulary right. Mr. Talbot emphasized the need for transparency. Mr. Stempeck recognized Mr. Talbot's concerns and suggested tabling the discussion for a later time. b. Sub-Committee on the Payment to the Town of Reading and Town Meeting on November 15, 2018-Mr. Pocino and Mr.Stempeck Mr. Pocino explained that the Town is doing an analysis and he hopes that RMLD and the CAB would get a copy of analysis. Integrated Resources Division-Mr. Underhill a.Power Supply Report-September and October 2018 Mr. Hennessy asked Mr. Underhill if he had any comments on renewables. Mr. Underhill replied that there are different methods of reporting resource portfolios to the State. Most utilities report to the Department of Environmental Protections annually and report on their carbon and non- carbon emissions. Carbon-free resources, such as nuclear, hydro, wind, and solar get reported. Mr. Underhill stated that he believes that Mr.Talbot was referring to the definition of "renewable" In M.G.L. Chapter 25, that talks about sustainable resources. Sustainable resources include both those that emit carbon (such as wood or trash burning) and non-carbon emitting. Mr. Underhill stated that he personally has a problem with the REC system. There are municipals in Massachusetts that are offsetting their carbon emissions by buying RECs so they go to a 100 percent renewable portfolio while continuing to use gas-fired resources. Addressing definitions becomes a policy decision. Mr. Underhill explained that since it's a policy decision he will answer technical questions but will not offer advice. Mr. Underhill explained that when he worked at Danvers filed a greenhouse gas emissions report and listed whether a resource was carbon- emitting. Danvers did not get into whether a resource was defined as sustainable. Mr. Underhill then discussed how the purchase power budget projections for the year compare to the actual results. The variance is fairly low and RMLD is expecting to finish the year relatively on target. Mr. Underhill explained that the power supply budget is compnsed of seven components.Three of those account for 99 percent of costs: energy, capacity, and transmission. Energy is roughly 80 percent, capacity is roughly 15 percent, and transmission is roughly five percent of that 99 percent. The percentages change from year to year. Mr. Underhill explained that the energy component is the largest and is subject to the most volatility. Capacity rates are set several years in advance and once RMLD knows its peak for the previous year that's what gets put into the budget. RMLD's energy costs are a bit below what was budgeted. Mr. Underhill then discussed capacity costs and explained that they track closely to what was budgeted. Mr. Underhill presented a chart showing how the portfolio breaks down monthly and drew the Board's attention to market exposure. Mr. Underhill explained that market exposure is where there's the most price volatility and risk. Risk is determined by how much load profile differs by forecast and actual. Weather extremes drive cost because the higher the New England load, the less-economic resources are used. RMLD has protections built into its portfolio so that there are caps. RMLD's target is 10 to 15 percent exposure to the market. Each municipal utility targets a different level of exposure. Some are zero and have contracts assigning power supply to a third party. In September the loads were below what was expected and RMLD sold energy back Page 1 2 Integrated Resources Division-Mr. Underhill a. Power Supply Report-September and October 2018 to the market.Mr. Stempeck asked if RMLD sold the energy at the some price it was bought. Mr. Underhill explained that there's an hourly market price and that it's generally close. b.Strategic Power Supply Pilot Mr. Underhill explained that about a year ago RMLD, with Commissioner approval, entered into a Transaction Facilitation Agreement with NextEra. NextEra has come to RMLD with a second program, a Load Following Agreement. It would take risk components out of RMLD's portfolio. If RMLD's actual is different from its budget that gets settled in the real-time market and can lead to settling at very high prices. There are protective caps but RMLD prefers to ovoid adding high costs to the portfolio. Next Era's strategy is to match with Riv1LD's budget and the variance risk therefore goes away. They will fix a price based on the market forecast and RMLD will have to approve before they can proceed as pad of the pilot program. Controls are being established to protect both parties. Mr. Sfempeck asked how NextEra makes its money in this scenario. Mr. Underhill explained that they charge a fee for megawatt hours that they aggregate, and they market savings to RMLD based on their ability to manage the market. They will set the transaction price, which will remove the price risk. They are guaranteeing to serve the actual load, so that removes load volatility. Mr. Underhill added that it would free up some of his staff resources over the next year so that he can begin to implement programs that he was brought on board to take care of. Mr. Underhill summarized that NextEra would be fixing the load, fixing the price, and then calculating the cost. RMLD has a market-based price and both will be compared to mete out the transaction flow. Some months RMLD will owe NextEra and some months NextEra will owe RMLD, but RMLD is expecting a net benefit. Mr. Underhill compared it to having a financial advisor manage a retirement portfolio: they are paid a fee and try to make the soundest decisions. Mr. Underhill stated that he has begun drafting analysis for benefits of TFA and LFA and is I working on how to do a baseline analysis absent both programs. The risk is very low and RMLD will not sign until the market has come down from a jump in November due to the cold. Mr. Pocino made a motion, seconded by Mr. Sfempeck, that the RMLD Board of Commissioners accept the Physical Load Following and Power Sale and Purchase Confirmation as presented and authorize the General Manager to enter into purchase power agreements that satisfy the criteria set forth in the Risk Management Strategy, on the recommendation of the General Manager. As a matter of protocol, the Department will provide a report on transactions relative to this strategy. Motion Carried:5:0:0. Engineering and Operations Report-October 2018-Mr.Jaffari Mr. Jaffari began by discussing major construction projects that are currently underway or have been recently completed, including upgrades to transmission lines feeding Station 4, pole line upgrades on Woburn Street, Wilmington, and getaway improvements at Station 4. Mr. Jaffari then discussed area upgrades to aging underground equipment and explained that the life expectancy of a transformer is 20 to 25 years. 1,600 are in that category. RMLD has developed a proactive maintenance program that prioritizes upgrades based on the age and condition of the existing equipment. Mr. Jaffari then showed before and after photos of replaced equipment. Mr. Jaffari announced that the Grid Modernization Outage Management System is installed and is testing is in progress to ensure that the system is integrated.The installation of the Interactive Voice Response has started and is 30 percent completed. In the first quarter of 2019, RMLD will be campaigning for customers to go on the website and enroll in their preferred method of contact in the event of an outage. The system will be tested throughout 2019. Mr. Jaffari then discussed automation projects, explaining that RMLD has a 15-year plan to replace outdated switches with Smart Grid devices to improve operational efficiency. Mr. Jaffari then reviewed the progress being made on maintenance programs including pole inspections and free trimming. Mr.Jaffari reviewed double poles and then discussed reliability indices and stated that RMLD is higher than the regional average in Page 1 3 Engineering and Operations Report-October 2018-Mr.JORarl system frequency due to storms. Outages caused by motor vehicle accidents have increased. Outages caused by equipment are decreasing but a lot of upgrades are still needed.Mr.Soni asked what the "Natural" category meant. Mr. Jaffari explained that is going to be changed to "Other" and gave the example of an August, 2018 outage that was caused by realtor balloons. RMLD Procurement Requests Requiring Board Approval-Mr.Jaffari IFP 2019-04: Solid Dielectric Padmounted Switchgear Mr. Jaffari explained that these are the padmount switchgears that are used for industrial and commercial customers. They are outdated and RMLD has a program to replace 25 to 30 of them, five a year. RMLD is still waiting for delivery on five. RMLD is transitioning to new technology. They are solid dielectric, which means that there is no oil. Eversource and National Grid are transitioning to this technology as well. Mr. Jaffari explained that this was budgeted for $312,500 but he is recommending that the Board approve the proposal. Mr. Pocino made a motion,seconded by Mr. O'Rourke, that proposal 2019-04for:Solid Dielectric Padmounted SwRchgeor be awarded to:Innovative Switchgear Solutions,Inc. for $333.250.00, pursuant to Chapter 164,Section 56D, on the recommendation of the General Manager. Motion Carred:5:0:0. General Discussion Meeting dates were discussed. Adjournment At 9:00 p.m., Mr. Pacino made a motion, seconded by Mr. O'Rourke, that the Board go into Executive Session to consider the purchase of real property and to discuss confidential, competitively-sensitive and proprietary information in relation to making, selling, or distributing electric power and energy, and return to Regular Session for the sole purpose of adjournment. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. Thomas O'Rourke, Secretary Pro Tem RMLD Board of Commissioners Page 1 4 FR Town of Reading �e Meeting Minutes e f� Board - Committee - Commission - Council: RMLD Board of Commissioners Date: 2019-01-24 Time: 07:30 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: David Hennessy, Chair; David Talbot, Vice Chair; John Stempeck, Commissioner; Tom O'Rourke, Commissioner; Philip B. Pacino, Commissioner Members - Not Present: Others Present: RMLD Staff: Colleen O'Brien, General Manager; Hall Jaffari, Director of Engineering and Operations; Charles Underhill, Director of Integrated Resources; Tracy Schultz, Executive Assistant Citizens' Advisory Board: George Hooper, Member KP Law: Christopher Pollart, Attorney Town of Reading: Vanessa Alvarado, Select Board Member and RMLD Liasion Mark Dockser, Financial Committee, Karen Herrick, Financial Committee Minutes Respectfully Submitted By: David Talbot, Secretary Pro Tem Topics of Discussion: Call Meeting to Order Chair Hennessy called the meeting to order and read RMLD's Code of Conduct. Chair Hennessy announced that the meeting is being videotaped at the RMLD office at 230 Ash Street, for distribution to the community television stations in North Reading, Lynnfield, and Wilmington. Public Comment Chair Hennessy announced that two members are running for reelection to the Board. Mr. Pacino stated that he is a candidate for reelection and that he has been on the Board for 32 years. Mr. Pacino stated that he has a lot of knowledge and feels that he still has a lot to contribute over the next three years.When asked, Mr.Talbot confirmed that he is also seeking reelection. Chair Hennessy welcomed Mr. Hooper, Ms. Alvarado, and Mr. Dockser. Mr. Talbot agreed to serve as secretary. Mr. Hooper stated that the CAB met the previous evening. There was no comment from the liaisons and no public comment. Approval of Board Minutes Mr. Pacino made a motion, seconded by Mr.Stempeck,that the Board approve the meeting minutes of October 18, 2018 and November 29,2018, on the recommendation of the General Manger, Motion Carried:5:0:0. Page 1 1 Status of the Payment to the Town of Reading-Update from the Sub-Committee a. Report of the January 8.2019 meeting with Select Board-Mr. Pacino L Mr. Stempeck Chair Hennessy stated that all the Commissioners attended the Select Board meeting. b. Discussion of the proposed agreement presented at the Select Board meeting on January 8,2019. Chair Hennessy read the following statement: As a bridge while RMLD studies how it can continue to help the Town of Reading financially, the RMLD Commissioners have proposed that RMLD freeze the voluntary below-the-line payment that it makes to the Town of Reading at the 2018 level of$2,480,506 for two years, i.e., 2019 and 2020. In this spirit, the Town of Reading Select board presented the RMLD Board of Commissioners with a draft contract called "Agreement Regarding Distribution of Earnings of RMLD to Reading". The draft contract was very helpful in confirming that a freeze of the voluntary below-the-line payment at the 2018 level would be satisfactory while the RMLD studies and determines a strategy for moving forward. However, our legal counsel has advised us that the use of a contract to document an obligation to pay on amount that is legally recognized as a voluntary payment subject to available funds Is not appropriate or consistent with how such matters are handled by other Municipalities. The RMLD is happy that it can continue to help the Town financially and looks forward to working with the Town of Reading to continue to do so by determining the appropriate formula to be used starting in 2021 for such voluntary payments. Tonight, we would like to formally vote on the amount of the voluntary payment. Note: Based on the above,we recommend that the present Sub-Committee be dismissed. C. Possible amendment and/or approval of proposed agreement. Chair Hennessy made a motion, seconded by Mr. Stempeck, that the Board of Commissioners direct the RMLD to make certain voluntary payments to the Town of Reading from available below-the-line unappropriated earned surplus for the calendar years 2019 and 2020 as follows: (l) Each annual payment shall total $2,480,506 and be paid in semi-annual installments, as follows: $1,240,253 on June 30. 2019, $1,240,253 on December 31, 2019, $1,240,253 on June 30, 2020 and $1,240,253 on December 31,2020. (2) In the event RMLD's below-the-line unappropriated earned surplus is insufficient to make the full annual payment to the Town or Reading or is otherwise required for RMLD to meet its franchise obligations in a particular calendar year, the RMLD Board of Commissioners may vote to reduce the amount of one or both of such annual payments. Mr. Pacino explained that he would be opposing the motion because he feels that there should be a written memorandum of understanding between all parties with obligations in writing so it's clear for future members of Board and Select Board.Chair Pacino asked to change language in Statement to dismiss the present Sub-Committee and stated that the Motion doesn't address if kWh sales were to increase. Mr. Stempeck replied that he disagrees with Mr. Pacino and that doing a motion gives all parties what they want. The numbers included in the proposed contract have not changed. Drafting an obligation in writing will incur significant attorney fees and take more time.The Motion gives everyone what they need. As for as kWh increases,it's impossible to tell if that will happen.Mr. O'Rourke added that a document will fake time and a fixed payment is reasonable. RMLD has made continuous payments for over twenty years. Mr. Talbot stated that he concurs with Mr. O'Rourke and added that municipals don't generally sign an agreement for PILOT payments. This will allow RMLD to begin the process of devising a new formula and move on to other things. Mr. Pacino pointed out that the CAB is a third-party to the agreement and should also weigh in. Mr. Hooper stated that this eliminates the Sub-Committee and the CAB's involvement and that he understands that the Motion gives Reading the fixed amounts that it can use for budgeting over the next two years. Mr. Stempeck stated that experts will have to determine the new formula for payment.Chair Hennessy added that once that happens, their findings will be presented to the CAB. Page 1 2 Status of the Payment to the Town of Reading-Update from the Sub-Committee C. Possible amendment and/or approval of proposed agreement. Mr. Pacino clarified that it is just the present Sub-Committee that is being dismissed and that the Sub- Committee can be re-formed. Mr. Pacino added that under the Twenty-Year Agreement, the CAB has a right to weigh in on any major decisions. Mr. Hooper stated that rates should not be increased in order to make larger payments. Mr. Talbot asked, as a matter of process, since the CAB votes on the budgets, do they need to vote on the Commission's motion? Mr. Pacino suggested, as a courtesy, adding the provision "subject to the Citizens' Advisory Board's review and comment" to the original motion. This was agreed to after discussion and commentary from Attorney Pollan. Attorney Pollort explained that the CAB does not have to approve the motion. Under the Twenty-Year Agreement, the CAB can provide their input under five areas. The only area that would apply in this instance would be "other issues that come before the Board" If, depending on past practice and custom, this is the type of issue that would normally go before the CAB, then they should be consulted. There are also matters that are mandatory for the CAB to be consulted on: the itemized operating budget of the RMLD. However, they can only recommend changes to the budget; this is not an itemized budget. Chair Hennessy mode a motion, seconded by Mr. Stempeck, that the Board of Commissioners, subject to the Citizens' Advisory Board's review and comment, direct the RMLD to make certain voluntary payments to the Town of Reading from available below-the-line unappropriated earned surplus for the calendar years 2019 and 2020 as follows: (1) Each annual payment shall total $2,480,506 and be paid in semi-annual installments, as follows: $1,240,253 on June 30, 2019, $1,240,253 on December 31, 2019, $1,240,253 on June 30, 2020 and $1,240,253 on December 31,2020. (2) In the event RMLD's below-the-line unappropriated earned surplus is insufficient to make the full annual payment to the Town or Reading or is otherwise required for RMLD to meet its franchise obligations in a particular calendar year, the RMLD Board of Commissioners may vote to reduce the amount of one or both of such annual payments. Motion Carried:4:1:0,with Mr. Pacino opposed. Mr. O'Rourke asked what happens if the CAB rejects the motion. Attorney Pollan} explained that the CAB doesn't have the right to vote "yes" or"no." The CAB can only review and comment. Mr. Pacino asked that the document with the Statement and Motion be added into the official record,as well as the contract sent by the Select Board. Mr. O'Rourke asked how the Board should inform the Select Board about the motion. Ms. Alvarado suggested sending the motion to the Town Manager who can forward it to the rest of Board. Ms. Alvarado stated she will additionally provide an update to the Select Board at their next meeting. Report of the Chair-Chair Hennessy a. Discussion of RMLD Renewable Energy Supply Reporting Mr.Talbot explained that there is a proposed piece of legislation to ensure that municipal light plants (MLPs) are reducing greenhouse gas emissions. Additionally, there's an optional form that RMLD can file with the state regarding its greenhouse gas emissions. Mr. Underhill explained that the legislation is structured so that Chapter 164, which defines the independence of municipal light plants in the Commonwealth, is left sacrosanct. In exchange, the municipal light plants in Massachusetts have agreed to develop portfolios that reduce carbon emissions. The first target is a seven percent reduction by 2021. MLPs will be reporting to the Department of Environmental Protection. If the MLPs fail to meet the target for the year, penalty funds are to be established and used for compliance, thereby building in an enforcement mechanism. This avoids the issue of RECs and of defining what should be classified as renewable energy. The bill has been introduced to the House and will be advantageous to the MLPs and the Commonwealth. RMLD was one of the leaders in developing this initiative. Mr. Talbot asked whether RMLD will be filing the optional AQ31 and AQ 32 forms with the State. Mr. Underhill confirmed,stating that 2018 is not due yet, but if will be filed. Page 1 3 General Manager's Report-Ms. O'Brien a. Review of Board Policies Ms. O'Brien explained that policies are coming up for three-year review.She stated that she will send the policies to the Board and if there are no changes or comments, the Board can simply vote to extend them. Ms. O'Brien explained that Policy No.23 Dress Code was reduced to one page. It is simple and in-line with acceptable office dress standards and a business casual work environment. The Collective Bargaining agreements cover protective equipment. The policy differentiates between what's appropriate in the business office and that if an employee needs to go to warehouse he/she needs to dress for that environment. The Board suggested language to replace the use of "etc" and an addition regarding discipline were discussed and agreed upon. Ms. O'Brien explained that Policy No. 8 OPEB statutory changes rendered the policy out of date and it has been updated to reflect current laws and GASB requirements. Attorney Pollart explained that the policy is consistent with the 2011 statute that allows existing OPEBs to continue to operate. Ms. O'Brien stated that the updated No. 18 Strategic Plan is simple and sets out that RMLD should have a mission and vision statements. In 2008 RMLD had a strategic plan done by a consultant,which essentially looked at the power market. However, the standard way to draft a strategic plan is to have department directors involved to ensure buy-in. Ms. O'Brien stated that RMLD was fortunate to have Mike Frisco from the North Reading Select Board come in. He has developed strategic plans for the military and helped facilitate. The strategic plan will be based upon what the Commissioners have written as policy. The Strategic Plan includes a mission statement, objectives, and a SWOTT analysis and will be presented to the Board and the CAB for input. Ms. O'Brien explained that making a six-year budget was her way of helping to show RMLD's objectives in the absence of a conventional strategic plan. The updated policy says that RMLD should have a strategic plan and it should be updated every three years. Attorney Pollart addressed No. 22 Pension Trust and explained that the existing policy was from 1966. In 1966 the Commonwealth used a pay-as-you-go funding method. RMLD established the pension trust in order to recover, through its rates, the unfunded balance. Due to changes in the law, RMLD's annual payments now take into account the unfunded portion,which means that the policy and the trust are no longer needed. Attorney Pollart stated that his recommendation is to stop paying money Into the pension trust, take money out of the trust on an annual basis until if runs out,and then vote to dissolve the trust. Mr. Poona made a motion, seconded by Mr. O'Rourke, that the Board approve the changes to Policy No. 8 OPEB Trust Fund, Policy No. 18 Strategic Plan, as amended, and Policy No. 23 Dress Standards,as amended, on the recommendation of the General Manager. Motion Carried:5:0:0. b. NextEra Energy Marketing Public Power Summit Ms. O'Brien explained that she went to the NextEra Energy Marketing Public Power Summit lost year, and it was a great networking opportunity. This will take place from February 4th to February 6th in Manalapon, Flondo. Mr. Pacino made a motion, seconded by Mr.Stempeck,that the Board approve Ms.O'Brien's travel to, and attendance at, the NextEra Energy Marketing Public Power Summit,in Manalapon, Florida, from February 3 to February 6,2019. Motion Carried:5:0:0. Attorney Pollart left the meeting. C. APPA (NEPPA) Legislative Rally Ms.O'Brien explained that this is the NEPPA legislative rally that occurs at the same time as the APPA rally. Ms. O'Brien stated that she will meet with legislators or their staff to advocate on the behalf of municipals. It will take place February 25th to February 27th in Washington, DC and Ms. O'Brien will report back to the Board following her trip. Page 1 4 APPA(NEPPA) Legislative Rally Mr. Pacino made a motion,seconded by Mr.Stempeck,that the Board approve Ms.O'Brien's travel to, and attendance at, the APPA Legislative Rally in Washington DC, from February 24 to February 28. 2019. Motion Carried:5:0:0. Integrated Resources Division-Mr. Underhill Mr. Underhill reported that budget and actual purchase power expenses are very close to one another and tracking well.There is one month left in the year and it looks like it was uneventful. Ms. O'Brien explained that Ms. Markiewicz would not be presenting because she was unable to travel back from vacation due to storms. Engineering and Operations Report-September 2018-Mr. JaRarl Mr. Jaffari stated that he was reporting through the present date. Mr. Jaffan reviewed major capital construction projects that are currently underway or recently completed including a pole line upgrade on Woburn Street in Wilmington, a remote racking device installed of Station 3, and repairs made due to a motor vehicle accident on 3W 13. Mr. Jaffari reviewed maintenance programs including aged transformer replacements, tree trimming, and infrared scans. Mr. Pacino stated that he attended a Reading Select Board meeting where concerns were expressed regarding the pole at Hopkins and South Street getting hit repeatedly. Mr. Jaffari replied that he would contact the DPW regarding installing a guardrail. Mr. Jaffari discussed the pole inspection program and double poles. Ms. O'Brien explained that Verizon only visually inspects their poles. Mr. Jaffari reviewed RMLD's reliability indices and stated that the System Average Interruption Frequency Index (SAIFIQ passed the regional average. Mr. Jaffari reviewed the outage causes in December 2018 and stated that on January 1,2019 a motor vehicle accident caused 1,270 customers to lose service. General Discussion Meeting dates were discussed,and Mr. Underhill announced upcoming RMLD community events including the Elementary School Art Awards. Adjournment At 9:00 p.m., Mr. Pacino made a motion, seconded by Mr. O'Rourke, that the Board go into Executive Session to consider the purchase of real property and to discuss confidential, competitively-sensitive and proprietary information in relation to making, selling, or distributing electric power and energy,and return to Regular Session for the sole purpose of adjournment. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. David Talbot,Secretary Pro Tem RMLD Board of Commissioners Page 15 POWER SUPPLY REPORT JANUARY 2019 ATTACHMENT 2 i� O m •ry � y d V! O ro • No N . J 0 O 4� N o A, N UY/ O cd cd � o a 0 a n O b m c0 N d � VI G! CL W f0 a 7 ` � C IA = O1 aim '" 76 to V 3 Y m i m o m d 9 i+ r' r QNI jat m ,d; ti g P n P N A C (■ 9 N r 01 A y � w U Q N ■ > �to "a 0 4! 3 = W C W 3 d m a m p S N e P n T N a n of e h A + d 0 Q N o A E w 3 L 'O bo N Q F m v m v n m A � N b '1 rl h M O a N M W q Y C a a 10 � N y Q O N N r •A � � N m 3 O_ m o l0 > N Q 'p N 7 � m m v Q m g3 � d N H ) � . } «IL \ \ } To: Coleen O'Brien Fro mIpwaureen McHugh,Charles Underhill Date: /4QTMarch 13, 2019 Subject: Purchase Power Summary—January 2019 Energy Services Division(ESD)has completed the Purchase Power Summary for the month of January,2019, ENERGY The RMLD's total metered load for the month of January was 57,949,291, which is a 3.67%decrease from the January 2018 figures. The system distribution losses are 3.6%. Table 1 is a breakdown by source of the energy purchases. Table 7 Amount of Cost of %of Total Total$ $as a Resource Energy Energy En." Costs % (kWh) (JilMwh) Millstone#3 3.699.953 $6.36 6.15% $23,5% 074% Seabrook 5,693,179 $5.27 9.79% $31,071 097% Stonybrook Intermediate 211,302 $112.27 0.35% $23,722 0l4% NYPA 2,165.777 $4.92 3.60% $10,656 033% Nektera 34,382432 $63.22 57.12% $2,173.647 68.09% ISO lntemhange (2,476.124) -$20.08 -4.11% $49.671 1.56% Name Congestion - $0.00 0.00% $40,190 -1.26% Coop Resales 23521 $141.01 0.04% $3,317 0.10% Hydro Projects• 7,318,785 $57.87 12.16% $423,510 13.27% Braintree Walson Unit 50.427 $284.73 0.08% $14,358 045% SaddlegWJericho WiM 2,084.714 $9298 346% $193845 6.07% Cgmmunity Solar 288,815 $73.90 0.48% $21,343 0.67% Exelon 6,484,800 $39.09 10.77% $253,491 7.94% Slonybrook Peaking 60,891 $170.63 0.10% $10,393 0.33% Moalhly Total 60,188,472 $53.04 100.00% $3,192,434 10000% 'Pepperell,worenow,lntlhn Rhw,,rimer Falla,eo#ins,Ptkneerfbsiery Mills,Aspinook Hyd. Table 2 breaks down the[SO interchange between the DA LMP Settlement and the RT Net Energy for the month of January 2019. Table 2 Amount Cost %of Total Resource of Energy of Energy Energy (kWh) ($/Mwh) ISO DA LMP4,283,161 $85.11 7.12% Settlement RT Net Energy•' (6,759,285) $46.38 -11.23% Settlement ISO Interchange (2,476,124) ($20.66) -4.11% (subtotal) Independent System Operator DeyAhea4 Locational Marginal Price JANUARY 2019 ENERGY BY RESOURCE r.u� v�„ eo4w' ficanyh�ookVk,l�itrx 1n mA+AMC¢ti.Ui x, .S.�ddi..o,mk,J♦6v, .0-jb'" '9./trq D.hSM loop•::SYet RVJR i.n�•..lJ4V.:�.SUg WeRpr n, 'i/.12% CAPACITY The RMLD hit a demand of 106,853 kW,which occurred on January 21,2019 at 4 pm. The RMLD's monthly UCAP requirement for January, was 235,407 kWs. Table 3 shows the sources of capacity that the RMLD utilized to meet its requirements. Table 3 Source Amount(kWs) Cost($/kW-month) Total Cost$ %of Total Cost Millstone#3 4,950 22.77 $112,697 5.60% Seabrook 7,914 18.93 $149,840 7.45% Stonybrook Peaking 24,980 1.94 $48,447 2.41% Stonybrook CC 42,925 3.46 $148,341 7.37% NYPA 0 0.00 -$15,114 -0.75% Hydro Quebec 0 0 $33,796 1.68% Braintree Watson Unit 0 0.00 $1,558 0.08% ISO-NE Supply Auction 154,638 9.91 $1,532,692 76.17% Total 235,407 $8.55 $2,012,257 100.00% Table 4 shows the dollar amounts for energy and capacity per source. Table Cost of %of Amt of Energy Power Resource Energy Capacity Total cost Total Cost (kWh) ($IkWh) Miilstone0 $23,5% $114697 $136,297 2.63% 3,699,953 $00368 Seabrook $31.071 $149,840 $180.911 3.49% 5,893,179 $0.0307 Stonybroak Intermediate $23,722 $148.341 $172,063 3.32% 211,302 $0.8143 Hydro Quebec SO $33,796 $33,796 0.65% - $0.0000 NextEre/EDF $2,173,847 $0 $2,173,847 41.88% 34,382,432 $0.0832 ' NYPA $10.666 s0 44,458 -0.09% 2,165,777 40 W21 NYPA FGM Credit $0 -$15,114 -$15,114 -0.27/a - $00000 ISO Interchange 549.671 0 $49,671 0.96% (2,476,124) -$0.0201 ISO Capacity $0 $1,532,692 $1,532,692 29.53% - $00000 Nemo Congestion -1140,190 $0 -$40,190 -077% - $cW00 Hydro Projects $423,510 $0 $423,510 8.16% 7,318,785 $0.0579 Braintree Watson Unit $14,358 111,558 $15,916 0.31% 50,427 $0.3156 ' Saddleback/Jimcho $193,845 $0 $193.845 3.74% 2,084,714 $0.0930 ' Burlington$Community Solar $21,343 $0 $21,343 0.41% 288,815 $0.0739 Coop Resales $3,317 $0 $3,317 0.06% 23,521 $0.1410 Exelon Energy $253.491 $0 $253,491 4.88% 6,484.600 $0.0391 Stonybrook Peaking $10,393 548,447 $58,839 1,13% 601891 $0.9663 Monmly Tetel $3.192,434 $2,012,257 $5,189,577 100.00% 60,188,472 50.0862 *Renewable Resources,per RMLD Board Policy,any RECs steroid to offset energy cosh for all cuntomers. RENEWABLE ENERGY CERTIFICATES (RECs) Table 5 shows the amount of banked and projected RECs for the Swift River Hydro Projects through January, as well as their estimated market value. Table 5 RECs Summary 2018/2019 REC RED Kcs BIO Revenue* Revenue— Classification Projected Sold Current Potential Received at 12.010 3,884 5.50 $65.052 $28,589 MAI 2,847 1.033 5.50 $15,856 $7,649 MA/CT/RI/Mal 17,714 8,163 5.50 $97,427 $66,055 MA/RI/Rol 9,804 3,654 6.50 $63726 $27,222 MAI 5,779 2,115 2600 $150,254 $54,403 Totals 48,153 18,849 $393,116 $183,917 'RED anoetted sold alcurrent bM lances "Total dollars to data for RED sold TRANSMISSION The RMLD's total transmission Costs for the month of January 2019, were $1,013,209. This is an increase of 5.53% from the December 2018 transmission cost of$927,139. In January 2018,the transmission Costs were$1,176,742. Table 6 Current Month Last Maldh Last Year Peak Demand(1,W) 106,853 98,966 108,096 Energy/kWh) 60,188,472 59,989,909 60,368.297 Energy IS) $3,192,434 53,009,300 $3,811,502 Capacity($) $2,012,257 $2,011,241 $2,109,761 Trammission($) $1,013,209 $927,139 $1,176,742 Total $6217,900 $5.947,679 $708,005 ENERGY NEW ENGLAND APPROVAL OF EXECUTIVE SESSION MINUTES SEPTEMBER 20, 2018, OCTOBER 18, 2018, JANUARY 24, 2019, & FEBRUARY 13, 2019 ATTACHMENT 3 FINANCIAL REPORT DECEMBER 2018 ATTACHMENT 4 ENGINEERING & OPERATIONS REPORT ATTACHMENT 5 <«» � � \< � IN x«: w � .� � § � / © W ® § aA. iL fA R : 03 OL \ 12, 0 LL, © ' ` � 2 72 2 j W & } - d < } \ � � \ — 1 1 — §: ■ � - ' LZ / � ,Z ` � - � 0 / % 41 / ƒ § ito � 0 k \ } 4j [ § -t § 4J Cd mak | \ x / 'CL k § \ 2 § / ) ) / � & ) u § » y . { ƒ { § § { f 0r4 ( J W -0 ° � . _ _ < � J k \ \ } kms es ; 0 � \ # \ / } � � uCD > � t 4 } k ; � E § / 4) \ < LMj § { A qF-oo -r- 07 L d a)ou coO C L0 is ft 0, Os E C WJ CO NV Av yr: L L a = I L E O J b m ra w .N o J c v J _ .� L a -o ro L Q y A ° v u A ro o c E L p n i 0 E u v V O A C N N W 0 ow N N B. V U c" O A L ' � K C N w � V a+ L 61 in •� v C v a A a, 4' .0 W o 3 4 v_ A A O vi O 5 v 0 0 y v y a v L U ao o v a r i 0 aL+ N Y d v 03 A A W aN+ y O Q 3 O v d N A E v y c - Wc c o y ai z U O L i ,O W O O v w c 3: wau+ CL 0 ro d ro C ted ate+ r 0 m O N i L y .� 0W O E 0 5 w ld7 N0'uu mo a > LOW N - w c L N a H f y A v c ro E v N L J O v a � c e A i C Y 7 O L a ++ O A s, is r a § \ vE « ) ; § ; ƒ % Ila 4 £ } 00 C. - 1 < i ƒ e77 ' ) ƒ2 � � - • / — � \ \ 0 .- 0 CL \ g § u IL ; j } /\ 0 Lu > . 0.. ° ° ° f � § ; \ \ ) \ } c � � 7 / r } < j ® , § k § § \ ( \ e _ / $ & CL ± 2 ) c -5 � � \ � � _ f $ 9 ! ) E f ° E 2 * 5a = ( § § „ a © w w # } A / 2 ® j £ 2 $ K ( \ el0. + : \ � ( /\ 2� § ) ( kkA ] 3ac:0� . - � \ ^ U. \ \ \ \ } � \ \ [ / I ) \ E ± _ ? . . / . . » « \ } � § ] . � j 0 } � \ Ea 130 \ _ r4 \ § \ CLrl/ m ■ k � § ■ { \ _ + . J I & « $ ( } ® ; J ; J k Q \ / } k \ CL / } § _ * * * * * * * \ � �� \ < 3 § ! ■ § | ■ � � . § ! § CL2F ! | | � { \ § a - � D - / # ) ! ! ! | � 7 f • § - ! ! | � ZO \ � _ _ . ■ | | | | | I ; { { _ S � k � � § 41 . . . . . § - % - - - : - � - - - - \ / \ so } } \ \ ; Z \ \ E } \ \ ; o � 2 O 6 n r - s a L � � o � fA � y � v m s > 4J « r 0 N O _ A N - J 7 W V MA a V ar o C E � W W rt a� 7 M C v V W C d0 f/1 c C N u RMLD PROCUREMENT REQUEST REQUIRING BOARD APPROVAL ATTACHMENT 6 O adinR Municipal Light aDNee aar onRMLD .vas 230 Ash Strxt P.O.Box 150 Reading.MA 01867-0250 TO:(78 1)9626598 web:waw.rbadxcoa March 5,2019 Town of Reading Municipal Light Board Subject: IFB 2019-09 One(1)Class V,Fork Truck with 12,000 Ib.Load Capacity with Trade-In Pursuant to M.G.L. c. 30B,on January 16,2019,an invitation for bid(IFB)requesting sealed bids for One(I)Class V, Fork Truck with 12,000 lb. Load Capacity with Trade-In(1999 Propane Fork Track)was placed as a legal notice in the Middlesex East section of the Daily Times Chronicle. On January 23,2019,the IFB was posted on the RMLD website, and the RMLD bulletin board. On January 24,2019,the IFB was posted on COMMBUYS. An invitation for bid was sent to the following seven companies: ATS Equipment,Inc. Brodie Toyota-Lift Crown Lift Trucks-Boston H&H Industrial Truck Service,Inc. Northland Industrial Truck Prime Vendor Inc. Company,Inc. THE Equipment, Inc. Sealed bids were received from two companies: Endless Sales lne. dba Octane Forklifts and Northland Industrial Track Company,Inc. The scaled bids were publicly opened and read aloud at 11:00 &m. on February 6, 2019, in the Town of Reading Municipal Light Department's Audio Visual Spurr Room,230 Ash Street,Reading,Massachusetts. The bids were reviewed,analyzed and evaluated by staff and recommended to the General Manager. Move that bid 2019-09 for: One (1) Class V, Fork Truck with 12,000 Ib. Load Capacity with "fmde-In be awarded to: Northland Industrial Truck Company,Inc.,as the lowest responsive and responsible bidder',for $60,500.00 pursuant to M.G.L.c.30B on the recommendation of the General Manager. 'Endless Sales Inc. chat Octane Forklifts was the lowest bidder, but was eliminated as not responsive. See attached Analysis. The CY2019 Capital Budget amount for this item is 575,000.00. P eGana Ic,Facilit eses Manager Hamid) IorofFc&O Coleco O'Brien,General Manager File:IFB/CY 19/2019-09 Fork Lift Track with Trade-l. Page 1 oft \ ) § � §\ § ! ) � | | | | § ) ) {f ! | � � & ■ b ! ! / � . e « | 0 | ! | ( ) # | ) § ) ! §| ! ` | . \ �� o� � ! � . _ ° ` \ RMLD (0j RsoliagaluRicipal LiHhrD pertmcm 230 Ash Street neons P.O.Box 150 1b,oh.g,MA 0186/-0250 Tcl:(78 1)9426598 Web:www.nnld.cam March 12,2019 Town of Reading Municipal Light Board Subject: IFP 2019-10 Pole Mounted Transformers Pursuant to M.G.L.c. 164§56D,on Febmary 20,2019,an invitation for proposals was placed as a legal notice in the Middlesex East section of the Daily Times Chronicle requesting sealed proposals for Pole Mounted Transformers.On February 21,2019,the invitation was posted on the RMLD wcbsite and bulletin board. An invitation For proposals was sent to the following fiBcen companies: Cheryong Electric Co.,Ltd., Deltek Graybar Electric Company,Inc. Global Business Department Hasgo Power Equipment Sales,Inc. Merrimac Industrial Sales PanAmerica Supply,Inc. Power Sales Group,Inc. PowerTech Associates-UPSC Prime Vendor,Inc. Robinson Sales,Inc. Shamrock Power Sales LLC Stuart C.Irby Company Technology International,Inc. WESCO Distribution,Inc. Yale Electric Supply Company Sealed proposals were received from four companies: Stuart C. Irby Company, Graybar Electric Company, Inc., Howard Industries,Inc.,c/o Power Sales Group,Inc.,and W ESCO Distribution,Inc. Sealed proposals were publicly opened and read aloud at 11:00 a.m., March 6, 2019, in the Town of Reading Municipal Light Department's Audio Visual Spurr Room,230 Ash Street,Reading,Massachusetts. The proposals were reviewed,analyud,and evaluated by staff and recommended to the General Manager. Move that proposal IFP 2019-10 for Pole Mounted Transformers be awarded to: Graybar Electric Company,Inc.,for a total of$68,2241,pursuant to M.G.L. c. 164 § 56D,on the recommendation of the General Manager. 'See attached analysis. The 2019 Capital Budget amount for these items is$188,500. -U sta—_ _-- Cole.O'Brien File: BWCY192019-10 Pole Mounted Tmnsformm Page I oft Analysis-Pad Moanted Transformers IFB 2019-11 Al NO Cost SpeclOcallon Bidder Names,ursr Oelivan Da Una Coat 21p Total Net Cwt Awrded R"adasset MSCO Distribution,Ino. Item 137.5 kVa 10 FR324WI 20 ERMCO 8-10 weeks $2,25300 30 $87,59000 $62,5110.00 yea Item 2 SO Wa 10 FR3 2MI120 ERMCO 8-10 weeks $2,451.00 20 $49.00M $491 yes Item 3 25 We 10 FR3 2401120 ERMCO 10-12 weeks $2,985.00 8 $23,]20.00 $23,720.00 yss Item 4150 kVa 30 OF 4BOY1277 ERMCO 10-12 weeks $5,916.00 2 $11,832.00 $11,632.00 yes Item 5225 kVa 30 OF 208Y/120 ERMCO 10-12 weeks $7,153.00 2 $14,308.00 $14,3118.00 yss Item 6225 We 30 OF 480YR77 ERMCO 1012 weeks $6,888.00 2 $13,738.00 $13,738.00 Sas Item 7300 kVe 300F 20BY/120 ERMCO 1 01 2 weeks $7,883.00 2 $15,988.00 $15,888.00 yes Item 8500 kVe 30 OF 201 ERMCO 10-12 weeks $10,585.00 1 $10,585.00 $10,585.00 yea Item 9 300 W.30 DFLF 20SY1120 ERMCO 10-12 weeks $8.201.00 9 $73,80800 no $280,511400 $208,755.00 Grsyhar EMcbric Company.Inc. Item 137,5 kVa 10 FR32401120 Cooper Power 13 weeks $2,27000 30 $68,10000 Item 2 50 We 10 FR3 240/120 Cooper Power 13 weeks 52,422.00 20 $48,440.00 Item 3 75 We 10 FR3 240/120 Cooper Power 13 weeks $2,982.00 8 $23,89800 Item 4150 We 30 OF 480Y/272 Cooper Power 16 weeks $7.77100 2 $15,54600 Item 5225 We 30 OF 206Y/120 Cooper Power 16 weeks $8,519.00 2 $17,038.00 Item 6 225 We 30 OF 48CY1277 Cooper Power 16 weeks $8,311.00 2 $16,62200 Item 7 300 We 30 OF 200Y/120 Cooper Power 16 weeks $9,10000 2 $16,200.00 Item 850D We 30 OF 20BY/120 Cooper Power 16 weeks $11,84100 1 $11,841.00 Item 9 300 We 30 DFLF 20BY1120 Cooper Pourer 16 weeks $9,263.00 9 $83.362.00 no 5303,050.00 $0.00 Howard Industria,Inc.,c/o Power Sales Group,Inc. Item 137.5 We 10 FR3 240/120 Howad IndusMa,Inc. 8-10 weeks $2,900.00 30 $8700.00 Item 250 kVa 10 FR3 2401120 Howad indust les,Inc. a-10 weeks $3,148.00 20 $61 Item 325 We 10 FR3 2401120 Hpwad Industria,Inc. 8-10 weeks $3]00.00 6 $29.600.00 Item 4150 We 30 OF 481 Howad lndusMa,Inc. 14-16"eks $6,905.00 2 $13,810.00 Item 5225 We 30 OF 206YMM Howad Industries,Inc. 14-16weeks $7,75800 2 $15,516.00 Item 6225 We 30 OF 480YR77 Howad lndustdes,Inc. 14-15weeks $7,552.00 2 $15,104.00 Item 2300 We 30 OF 208YI120 Howad Industries,Inc. 14-16weeka $8,89200 2 $12,204.00 Item 8 500 We 30 OF 2MY1120 Howad Industries,Inc. 14-16 weeks $12,99400 1 $12.994.00 Item 9300 kVa 30 DFLF 2MY/120 Howad lndatries,Inc. 14-16 weeks $9,880.00 9 $82,120.00 $87120.00 yes 311,88800 $87,120.00 Stuart C.I"Company Non RaporlsIW Item 137.5 We 10 FR3 2401120 ABB 6-8 weeks $3,482.00 M $104,46000 Item 250 We 10 FR3 2401120 ABB 6-8 weeks $4,280.00 20 $85,760.00 Item 375 We 10 FR3 2401120 ABB 6-8 weeks $5,587.00 8 $44,896.00 Item 4150 We 30 OF 480Y1227 ABB 6-6 weeks $8,56000 2 $12,120.00 Item 5225 kVa 30 OF 208Y1120 ABB "weeks 59,633.00 2 $19,26600 Item 6225 kVe 30 OF 480M77 ABB e-8weeks $9,372.00 2 $18,744.00 Item 2300 We 30 OF 208Y/120 ABB 8-8 weeks $10,550.00 2 $21,10000 Item 6500 kVa 30 OF 2081 ABB 6-8 weeks $13,71700 1 $13.21700 Item 9 300 We 30 DFLF 2MY/120 ABB 643 weeks $10,838.00 9 592.542.00 $422p05.00 SO.DD •DnauMori ed Signatures Total Purchase Amount $203.875.00 Pilo.e4CY19Z01Y-I PW Mu w'.W l'ewfnrmm PM,2,f2 1 ;3! RFadng Municipal ORg Depan RMLD — MAah Street PO,Box 150 Reading,MA 018674)250 TEI:1781)94&6598 Web:www.rmld.com March 12,2019 Town of Reading Municipal Light Board Subject: IFP 2019-11 Pad Mounted Transformers Pursuant to M.G.L.c. 164§ 56D,on February 20,2019,an invitation for proposals was placed as a legal notice in the Middlesex East section of the Daily Times Chronicle requesting sealed proposals for Pad Mounted Transformers.On February 21,2019,the invitation was posted on the RMLD website and bulletin board. An invitation for proposals was sent to the following fifteen companies: Cheryong Electric Co.,Ltd., Deltek Graybar Electric Company,Inc. Global Business Department Hasgo Power Equipment Sales,Inc. Merrimac Industrial Sales PmAracrica Supply,Inc. Power Sales Group,Inc. PowerTech Associates-UPSC Prime Vendor,Inc. Robinson Sales,Inc. Shamrock Power Sales LLC Stuart C. Irby Company Technology International,Inc. WESCO Distribution,Inc. Yale Electric Supply Company Sealed proposals were received from four companies: Stuart C. Irby Company, Graybar Electric Company, Inc., Howard Industries,Inc.,Go Power Sales Group,Inc.,and WESCO Distribution,Inc. Sealed proposals were publicly opened and read aloud at 11:00 a.m., March 6, 2019, 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 IFP 2019-11 for Pad Mounted Transformers be awarded to: WESCO Distribution, Inc.,for$206,755.00 and Howard Industries,Inc.,c/o Power Sales Group, Inc.,for 887,120.00,for a total of$293,875.001,pursuant to M.G.L.c. 164§56D,on the recommendation of the General Manager. 'See attached analysis. 7'he 2019 Capital Budget amount for these items is S378,500. Va u _� ' hen Brya Coleco O'Brien File: BFYCY19Q019-1I Pad Mounted Transformers Page 1 oF2 Analysts-Pole Mounted Translmn ers IFP 2019-10 MM TowllNt Rat Cost Specalcefipn Bidder Maned UniffArks, gly NCO Amid,Q Rengeopent WESCO Distribution,Inc. Ilam 125 kVe Single Phase 2401120 Eaten Cooper 8-10 weeks $969.00 12 $11.828.00 no Item 2 37,5 Wa Single Phase 2401120 Eelon Cooper 8-10 weeks $1.185.00 28 $33,180.00 Item 3 50 Wa Single Phase 2401120 Ealon Cooper 8-10 weeks $1,401.00 20 $28.020.00 72.528.00 $0.00 Graybar Electric Company,line Item 125 kVe Single Phase 24WI 20 GE 15 weeks $99800 12 $11,988.00 $11,988.00 yes Item 237.5 We Single Pious 24WI 20 GE 15 weeks $1,127.00 28 $31,558.00 $31.556.00 yea Item 350 IiVa Single Phase 240/120 GE 15 weeks $1.234.00 20 $24,680.00 524550.00 yea 68,224.00 $88,224.00 Howard Industries,Inc.,Go Power Sales Gmup,Inc. Item 125 We Single Phase 240/120 Henri 5-10 weeks $1,308.00 12 $15,872.00 Item 237.5 We Single Phase 240/120 Mennen! 8-10 weeks $1,501.00 28 $42,028.00 Item 3 SO We Single Phesa240/120 Howard 8-10 weeks $1739.00 20 $34780.00 $92.400.00 $0.00 Stunt C.Irby Company Non Responsive Item 125 We Single Phase 240/120 Powar Pednem,Inc. 10-12 weeks $1220.00 12 $14,840.00 Item 2 37.5 We Single Phase 2401120 Power Panel Inc. 10-12 weeks S1,380.00 26 $38,840.00 Item 3 50 We Single Phase 240/120 Poway Panel Inc. 10-12 weeks $1,470.00 20 $29.400.00 $82,680.00 $0.00 Cost for all of the lomat unH prim Items $68.224.00 11uaiNCV19R014.ie eek acunmmmlemm Pool BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED From: Tran Ghulta To: RMLo Board Members Group"G Vlid Hen Subject: AP and Payroll Questions for 3 21-19 Board Book Date: Tuesday,March 19,2019 8:20:00 AM Good morning, AP: On February 81h there were no Commissioner questions. On February 15th there were no Commissioner questions. On February 22nd there were no Commissioner questions. On March 1 s1 there were no Commissioner questions. On March 8th there were no Commissioner questions. On March 15th there were no Commissioner questions. Payroll: On February 181h there were no Commissioner questions. On March 4" there were no Commissioner questions. On March 18th there were no Commissioner questions. This e-mail will be included in the 3-21-19 Board Book. Tracy Schultz Executive Assistant Reading Municipal Light Department 230 Ash Street. Reading. MA. 0186 Tel: 781.942.6489