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HomeMy WebLinkAbout2020-12-16 RMLD Board of Commissioners Minutes RECEIVED TOWN CLERK READING, MA. Town of Reading 9111- 4& Meeting Minutes 2021 MGR 29 AM 9: 09 Board- Committee .commission- council: RMLD Board of Commissioners Date: 2020-12-16 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: Due to the pandemic and the March 12, 2020 Governor's Executive Order Suspending Certain Provisions of the Open Meeting Law, all particpants attended remotely. Vice Chair; David Talbot, John Stempeck, Chair; David Hennessy, Commissioner; Robert Coulter,Commissioner; Phillip B. Pacino, Commissioner. Members- Not Present: Others Present: RMLD Staff: Coleen O'Brien, General Manager; Hamid Jaffarl, Director of Engineering and Operations; John McDonagh,Assistant Director of Engineering and Operations; Charles Underhill, Director of Integrated Resources; Greg Phipps, Assistant Director of Integrated Resources;Wendy Markiewta, Director of Business, Finance, and Utility Technology; Tracy Schultz, Executive Assistant. Vivek Soni, Citizens' Advisory Board Gail Page, Green Sanctuaries; Coordinator, GRACE Lynn Champion, 8 Franklin Avenue, Wilmington James Satterthwaite, 8 Hunt Street, ReadingReading John Rogers, 39 Tower Hill Road, Laura Haight, Partnership for Policy Integrity Mary Ellen O'Neil, Reading Bob Connor, 7 Beacon Street, Reading Minutes Respectfully Submitted BY: Philip B. Pacino, Secretary Pro Tem Topics of Discussion: Call Nesting to Order Chair Stempeck called the meeting to order and read RMLD's Code of Conduct.Chair Stempeck announced that the meeting is bei Reading,Ly recorded and Wilmington.fa distribution to the community stationstelevision Chair Stempeck Mr.Pacino asked to serve as Board Secretary. Chair Stempeck stated that Joyce Mulvaney and the town historical societies did an excellent job an the RMLD calendar. Page I r i Report on the December 16,2020 CAB Meeflrp Mr.Soni stated that the CAB had a briefing on Policy 30. Mr. Pacino,who attended the CAB as the Commisslon's representative,added that each division manager provided updates on what was achieved in 2020. Public Comment Ms. Haight of the Partnership for Public Policy I''pp"11 explained that her organization sent a letter to all Massachusetts municipal light plants last year when they teamed that Energy New England was promoting power purchase agreements with Palmer. Last year there were multiple hearings regarding changes to the Renewable Portfolio Standard I°RPS"I.specifically regarding biomass. The last hearing was in July and the regulations still have not been issued. PPI believes that Palmer would qualify for the RPS under these regulations. Further it is also PPI's opinion that the regulations are not in compliance with the underlying statute or the Global Warming Solutions Act. There will be requests for the legislation to hold hearings on the regulations. The Implementation Advisory Committee to the Global Warming Solutions Act,which has been advising the governor on 2050 decarbontzation roadmap,recommended unanimously that the biomass be gotten removed from ro n,aniggibiliaryy from the APS, RPS,and other energy Programs. it is not meets the RPS. Rather,the RPS has gotten weaker. Ms. O'Neil. a former RMLD Commissioner and Chair, expressed her displeasure regarding events at the November 19 Board meeting. Ms. O'Neil stated that person submitting public comment should be subjected to reprimand or censure,the RMLD General Manager should not hove signed a substantial power contract with no Board or CBA input and that the Palmer contract should be open to public discussion. Further it was her opinion that discussion of the merits of the contract do not qualify for executive session. Ms.O'Neil slated firmly that the minutes on the RMLD website need to be updated. Mr. Talbot stated his opinion that the DOER report about biomass is not independent in that it advocates a certain position. Vice Chair Hennessy asked for a status update regarding the independent analysis that the Board voted on. Ms.O'Brien stated that RMLD is trying to bring in a consultant for training in January. Approval of Board Minutesrove the Mr.Pacino made a motion,seconded by Vice Chair Hennessy.that the Board app meeting minutes of March 19,2020,on the recommendation of the General Manger. Roll Call vote: Mr.Coulter:Aye;Chair Siempeck:Aye:Vice Chair Hennessy:Aye;Mr.Talbot:Aye. Motion Carried:5:11k0. General Manager's Report Ms.O'Brien stated,due to a pending weather event,that RMLD staff had a storm management meeting this afternoon and expect to have full coverage. Only essential personnel will be reporting to work tomorrow due to the govemor asking for limited travel. However,employees will be working remotely. SII The customer satisfaction survey is ongoing.The report will be finalized at the end of January A and Great Blue will make a formal presentation to the CAB and Board. EV Workshop Update continue O'Briene the explained important that t complex di cuon on power ill be pushed to February in order o Account Payable(AP)Signature Process 13 Ms.O'Brien stated that at one paint,three commissioners signed the of the process is to provide checks AP invoices.I}was i then changed to one. Ms.Obrien explained that the intent c and balances. Pegs 12 General Manager's Vacation nm* Ms. O'Brien explained that for 2020 due to the COVID-19 pandemic she has been able to use all her vacation time per her contract and aike din accordance with her contract that she be allowed to carry over the unused time to 2021.. Mr.Pactirl made a motion,seconded by Vice Chair of Commissioners allow,the General Manager to cony onward anyunused vacation time from 2020 into 2021 due to extenuating circumstances resulting from the COVID-19 pandemic. Roll call vote:Mr.Coulter.Aye;Chair Stempeck:Aye;Vice Chair Hennessy:Aye;Mr.Talbot:Aye. Motion canted:5:0:0. Financial Report 2030/1021 Rwtew and Goals Ms. Markiewicz stated that there have been great strides this year and that she Is proud of the accomplishments of her team. Business accomplishments included accounts payable and payroll going paperless, quarterly communication meetings with the Town of Reading, the integration of processes and procedures, and the development of a cohesive relationship between Human Resources and payroll. Finance accomplishments included a clean opinion on the Calendar year 2019 audit, which was conducted virtually, the timely filing of the Cy 2019 Department of Public Utilities Annual Return,the presentation and approval of the CY 2021 Capital and Operating Budget,and the success of the Credit and Collections department in working with customers for continued payments. Technology accomplishments included securing R infrastructure by implementing lessons learned otter recovery from the romomware intrusion, removing and upgrading outdated operating systems, strengthening user level security, and conducting a full inventory of IT assets. 2021 Business goals for her team include developing a cohesive relationship with all divisions, continuing to Integrate processes and procedures, and continuing popedess efficiency and training efforts. Finance goals are to receive a clean opinion on the 2020 Audit. continuing Credit and Collections communications and billing succession. Technology goals are to secure new R management, migrate billing software to the cloud, upgrade firewalls,and ensure software integration. Legal Invoices Update Ms. Markiewicz explained that legal expenses are essential in maintaining compliance with Federal and State laws, standard, and regulations to mitigate risk and liability. A $100 million electric utility requires numerous areas of expertise,including policy review,purchase power.labor relations,engineering and operations,procurement and liability claims,and business and finance. Every year brings new challenges. Ms.Markiewicz presented average spending between July I, 2016 and November 30, 2020. Purchased power is the biggest expense, then lobar relations, Procurement and liability claims,policy review,business fiance,and engineering and operations. Ms.Marklewicz explained that RMLD utilizes six attorneys with specific areas of expertise. Integrated Resources Report 2020/2021 Review and Goals carbon sulpply nconiractsh forn25 rperc percent ofrcRMLD'ses a resource portfolio, successsfulexecuting peak non- management savings of$691,542,implementation and enhancement of multiple retail programs. $500, ro 000 in rebate payments to RMLD customers for solar Installations,submitting the Residential Conservation Services filing, improved tracking and reporting for rebate pcessing, and developing in-house and external responses to Covid-19. 2021 goals Include establishing an implementation process for Roadmap 2050. continuing to enhance the wholesale and retail resource portfolios,and finalizing the RCS filing. J Mr.Talbot asked that a copy of the TFA be sent to the Commissioners. Page 13 Engineering and Operations Report 2020/2021 Review and Goals Mr. Jaffari stated that engineering and operations accomplishments included receiving a ity from the APPA, meeting maintenance program goals, certificate of excellence in reliabil continuing progress on I area p rales,andprojects overhead and underground the nd groundnarea upgrades. Grid ment program and step-down area upgrades, modernization 2020 goals were met. Smart switches will continue to be installed in 2021. tight pad-mount switchgear upgrades at industrial parks are scheduled far 2021. 2021 reliability goals include securing land for the new Wilmington substation. Facilities accomplishments included emergency generator replacement, parking lot upgrade, and roof repair. 2021 goals include substation,security,and fleet upgrades. RMLD Procurement Requests Requiring Board Approval IFB 2020-41 Line Truck Chassis and Trailer Preventative Maintenance,and Repair Servke Mr. Joffod explained that the bid was sent to nine companies. There was one responsive and responsible bidder. Mr. Pacino made a motion, seconded by Vice Chair Hennessey,that bid 2020-41 for line Truck Chassis and Trailer Inspection, Preventative Maintenance, and Repair Service be awarded to: Taylor 6 Lloyd. Inc. for $169,795.921 pursuant to M.G.L. c. 30B, as the lowest responsive and responsible bidder on the recommendation of the General Manager.This is a three-year contract. Roll call vote:Mr.Coulter:Aye;Chair Stempeck:Aye;Vice Chair Hennessy:Aye;Mr.Talbot: Aye. Motion carried:5:0:0. IFS 2020.42 Line Truck LM Equipment Inspection,Preventative Maintenance,and Repok Service Mr.Jaffari stated the bid was sent to nine companies.Two responses were received and one took exceptions. Mr.Pacino made a motion,seconded by Vice Chair Hennessy,that bid 2020-42 for Line Truck Lift Equipment Inspection, Preventative Maintenance, and Repair Service be awarded to:James A. igley co. fm he recommendation of the Ger$112,602.00, pursuant to M.G.L.al 0ilowest responsive s a three- earresponsible contract bidder on Roll call vote:W.Coulter:Aye;Chair Stempeck:Aye;Vice Chair Hennessy:Aye;Mr.Talbot:Aye. Motion carried:5:0:0. Paticy 30 Clean Energy Cod Impacts Mr.Phipps explained that the Board asked for a comparison of the cost impact to RMLD of both Roadmap 2050 and the investor-owned utilities Renewable Portfolio Standard )RPS) and Clean Energy Standard ICES). Roadmap 2050 is pending legislation and would apply to MLPs. Roadmap 20.50 covers noncarbon emitting and requ'ses RECS. If RMLD were to apply that standard now, RMLD would be compliant through 2029. The RPS and CFS only applies to the IOUs and require IOUs typically buy power independent certificate es and then certificates for compliance. The perspective, separately buy RECS that are not associated with said energy. RMLD is not currently compliant with the RPS and CES. Mr.Phipps then discussed cost implications. RMLD looked at the next four years. For Roadmop 2050,compliance value is about$300,000 to $400.000 a year. That would be a change of three tenths to four tenths of a percent to customer bills. RMLD is not currently compliant with either RPS or CES because RMLD has focused on investing in renewables rather than purchasing certificates. Compliance would add about$6.3 million in annual costs,which would amount to about a seven percent increase to customer bills. Mr.Phipps explained that RMLD's non-carbon portfolio currently has no RECs. An example wouild be RMLD'S investment in nuclear and hydro. Both are emissions free but do not issue RECS or RMLD dd not purchase the RECS with that energy. J cipal Light(CMLP)was presented. Concord has a similar structure A comparison to Concord Muni but is gradually Increasing its contracted power purchases that include RECS. Increasing market ! prices for Massachusetts Class l RECs reduced the quantity of non-associated RECS that CMLP was Page 14 able to purchase in 2019 and 2020. In 2021 a rate increase of two cents per kWh will double the amount of money available to purchase renewable energy. This will result in an increase in the number of non-associated RECs that can be acquired. In comparison, RMLD's portfolio has focused on renewables,whereas CMLP has concentrated on certificates. A significant amount of money would be needed to make RMLD complaint to the RPS and CES. Mr.Coulter asked why RMLD would increase costs by purchasing REC. Mr.Phipps explained that RMLD is focused on renewobles for that very reason. Mr. Tolbot asked about the cost increase needed to meet the IOU requirements and what the corresponding number of renewables added to RMLD's portfolio would be. Mr. Phipps replied that RMLD would not necessarily change its portfolio. Rather.RMLD would need to buy certificates in order to state that it is in compliance. Ms.O'Brien stated that the Chariot project is a combination of solar and nuclear. RMLD needs to let them know by December 18 if the contract should be extended for six more years. Mr.Coulter stated that it would be helpful to know the amount of the contract. Mr. Underhill stated that this contract represents about five percent of RMLD's portfolio for a six-year period. Mr.Pacino states the policy in place allows Ms. O'Brien to move forward without the Board's input and until the Board sets a limit on contracts that can be entered into without review,then Ms. O'Brien should continue operating as usual. General Discussion Meeting dates were discussed. Executive Session At 9:15 p.m., Mr. Pacino made a motion,seconded by Vice Chair Hennessy,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. ROTI call vote:Mr.Coulter:Aye;Chair Stempeck:Aye;Vice Chair Hennessy:Aye;Mr.Talbot:Aye. Motion Carried:&-0:0. Adjoummenf At 9:49 p.m.,Mr. Pacino made a motion,seconded by Vice Chair Hennessey that the Board revert back to regular session for the sole purpose of adjournment. Roll call vote:Mr.Coulter.Aye;Chair Sfempeck:Aye;Vice Chair Hennessy:Aye;Mr.Talbot:Aye. Motion Carded:5:0:0. At 9:29 p.m., Mr.Pacino made a motion,seconded by Mr.Coulter,that the Board adjourn. Roll call vote:Mr.Coulter:Aye;Chair Sfempeck:Aye;Vice Chair Hennessy:Aye;Mr.Talbot:Aye. Motion Carded:5:0:0. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. f�'Iy-..r 9O ull r rerye lD.io)I lbbap Philp B.Pacino,Secretary Pro Tem RMLD Board of Commissioners Page 1 5 I'