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HomeMy WebLinkAbout2021-11-17 RMLD Board of Commissioners MinutesRECEIVED 4911 TOWN CLERK Town of Reading RE4DING, MA. Meeting Minutes 2k 2622 FEB -8 PH 5:13 Board - Committee - Commission - Council: RMLD Board of Commissioners Date: 2021-11-17 Time: 7:00 PM Building: Location: Address: Session: Open Session Purpose: Version: Final Attendees: Members - Present: Mr. Robert Coulter, Chair; Mr. Philip Pacino, Vice Chair; Mr. David Talbot, Commissioner; Ms. Manana Bita, Commissioner. Members - Not Present: Mr. John Stempeck, Commissioner Others Present: RMLD Staff: Ms. Coleen O'Brien, General Manager; Mr. Greg Phipps, Director of Integrated Resources; Ms. Wendy Markiewicz, Director of Business Finance; Mr. Hamid Jaffari, Director of Engineering and Operations;Mr. Brian Hatch, Director of IT, Ms. Erica Morse, Executive Assistant; RMLD Board Liaisons: Karen Herrick, Select Board, Reading RMLD Finance Committee Liaisons: Jackie McCarthy, Reading Citizens' Advisory Board:Mr. Dennis Kelley, CAB, Wilmington Minutes Respectfully Submitted By: Philip Pacino, Secretary Pro Tem Topics of Discussion: 1. Call Meetino to Omer Chair Coulter called the Board of Commissioner' meeting to order at 7:00 PM and announced that the meeting would be held on Zoom and live on RCN and YouTube Opening Remarks Chair Coulter read RMLD's code of conduct. Vice Chair Pacino will serve as the Secretary for the meeting. Introductions Chair Coulter welcomed everyone to the meeting of the RMLD Board of Commissioners and asked all attendees to identify themselves. Citizens' Advisory Board Mr. Kelley reported on the previous CAB meeting; Mr. Phipps presented the new solar package, Ms. O'Brien and Ms. Markiewicz provided updates, and the budget was approved unanimously. Liaisons to RMLD Board Ms. McCarthy introduced herself as the Finance Committee Liaison to the RMLD Board. Paye I I 2. Public Comment Materials Presented: Budget Breakdown, PDF Vice Chair Pacino presented RMLD's Financial Structure as RMLD's budget will be discussed. He highlighted the rates in terms of kilowatts and the Fuel Charge, as well as noted the depreciation fund (minimum at three percent). The rate of return was addressed; statutorily it is eight percent, RMLD Is at approximately six and a half percent. Vice Chair Pacino noted that the Build Back Better legislation contains green energy credits on electricity produced by renewable sources, energy Investment credits, zero emission facilities, as well as plug In vehicles. In addition, there will be a credit for a used plug- in vehicle. Vice Chair Pacino reported that at the last Select Board meeting there was discussion on a Sustainability Director. He Is recommending RMLD consider a similar position, where it covers four towns. The International Financial Reporting Standards Board created a new internationally focused Board„ the Sustainability Accounting Standards Board, which requires that companies disclose their policies and strategies on sustainability. Mr. Talbot thanked Vice Chair Pacino for his comment and responded that he is uncertain if an RMLD staff member would have authority to Implement anything on the town side. RMLD already offers many great programs that the towns can take advantage of. Mr. Talbot made a comment regarding the missed Board meeting cycle last month. Chair Coulter that this was due to the storm and Town Meeting schedule. Mr. Talbot commented on the importance of ensuring the Board meets monthly and reiterated that one of the Board goals is to have a Joint meeting with the Select Board on economic development. Chair Coulter reported that he presented remotely at the November 9'h Select Board meeting on rates. Ms. O'Brien, Mr. Phipps, and Ms. Bite also attended. 3. Approval of Board Minutes Meeting minutes were approved by the Board as presented. Vice Chair Pacino made a motion, seconded by Mr. Talbot, that the Board of Commissioners approve the meeting minutes of the July 19, 2021, and August 12, 2021, meetings on the recommendation of the General Manager. Motion Passed: 4:0:0 (4 in favor) Roll Call: Vice Chair Pacino, Aye; Mr. Talbot, Aye; Ms. Bita, Aye and Chair Coulter, Aye 4. Report on Citizens' Advisory Board Meet na on Oct 21 and Nov 11 Ms. Bite reported that the budgets passed 3:0:0. 5. General Manager's Report Ms. O'Brien provided a General Manager's Report Inclusive of the following: Virtual Air Source Haat Pump Owners Panel The Virtual Air Source Heat Pump Owners panel was held on November 9, RMLD had a great turnout of approximately 80 attendees. This presentation is available on the RMLD's website, and the community television stations. Many customers are inquiring on how to transition to the air source heat pump. RMLD offers a great rebate for this program. Page 12 Virtual EV Workshop Since the first Virtual EV Workshop was well -attended, RMLD Is tentatively scheduling a second workshop on February 1 with the format to be determined. RMLD is in the design phase of the technology for the AV room with the intention to run hybrid meetings and In preparation for the return to in-person meetings. RMLD's 2022 Historical Calendar The RMLD 2022 historical calendar will be available mid-December. Information will be posted on the RMLD's website listing the locations where the calendars can be picked up. RMLD Elementary Student Art Contest The elementary art contest is ongoing. RMLD typically holds these awards In February and will be either virtual or in person format. Press Releases Pending Board approval, the Offshore Wind Opportunity and 2022 Rates press releases will be published this evening. Select Board Meeting on Proposed Rates On November 9, Ms. O'Brien, Chair Coulter and Mr. Phipps attended the Reading Select Board meeting and Chair Coulter presented on the proposed rates approved by the CAB EV License and Update RMLD was able to obtain the EV license, which allows the RMLD to install three EV charging stations located in the Town of Reading. The license is a 15 -year term, and if within that time the town requests RMLD to remove the charger, the costs owed back to the state for the grant monies will be split. The terms also specify, if the EV charging station is asked to be removed after three years but prior to 15 years, the RMLD will pay for equipment removal and the town will pay for the resurfacing. After 15 years, it becomes a one-year time extension. The Town of Wilmington license agreement is currently under discussion. Ms. O'Brien stated that RMLD is collaborating with Karen Herrick, Select Board Chair/RMLD Liaison, and the Town Manager on an EV Charging Station Site Selection Committee. This committee will have representatives from each of the four town, who have planning and Construction experience to work with RMLD engineers for future feasible EV charging sites within each town respectively. Reading Town representatives. Ryan Percival, Town Engineer, Reading, and Erin Schaeffer, Economic Development Director, Reading. Wilmington is George Hooper, Superintendent, Public Buildings Department, Wilmington. Ms. O'Brien is working with Lynnfield and North Reading for their representatives. The Committee meets every other week. Meetings — Town of Reading In March of 2022 the RMLD plans to meet with the Finance Committee to provide an update on the in -lieu tax of payments to the towns. Ash Street Campus Tour Ms. O'Brien extended an invitation to the Select Board to tour the Ash Street campus. Various economic development visions have been presented and can be found on the town's website. The RMLD is looking to set up this tour to provide knowledge of what RMLD's Campus entails, its buildings use, operations, etc. Ms. O'Brien noted that Ms. Morse will set up a Doodle poll for the Ash Street facility tour for the Select Board and new Commissioners. A separate Doodle poll will be sent for a subsequent joint meeting with RMLD Board of Commissioners and Reading Select Board to discuss economic development specifically in the Ash Street Campus area. Page 13 6. 2022 Budoet Presentation A. CAPITAL BUDGET Mr. Jalfari presented the proposed CY22 Capital budget and highlighted additional and updated budget Items. Outlined as follows: Facilities Related Projects (Page IS, Line items 1-7) Security Uporades - All Sites, Lineitem 6. pacie 25 RMLD is requesting to spend $106K on security upgrades at all sites. In CY21, Bums and McDonnell completed a physical security assessment to identify NERC mandated compliance areas, with the Intent to improve the existing security system and equipment. Mr. Jaffari provided the following examples: expanding cameras at all RMLD facilities via CLOUD and IF Services; perimeter fencing; signage at the substations and areas on the Ash Street campus; vegetation management; physical security operating procedures; and updated employee access control. The study results were provided In short-, medium-, and long- term range, and RMLD plans to implement all rewmmendations. Rollin Stock Replacement: Lin item 7 Mae 27 RMLD is requesting to spend $744K on Rolling Stock Replacement. Scheduled vehicle replacement follows RMLD's Fuel Efficiency Operating Procedure based on the Department's Fleet Assessment and Electrification program. In CY22, $375K is planned to purchase a small SUV and Trouble Truck. A portion of this amount is carry over from CY21; scheduled to be delivered in CY22. IRD Related (Page 11, Line Item B) Electric Vehicle Supply Equipment (EVSE) RMLD is requesting to spend $744 on EVSE; of which, $177K will be supplied by grants. ($78K MassEV Grant for 5 L2 Charges; $99K 51-3). in CY22, RMLD is planning to install five L2 chargers; three In Reading and two in Wilmington. Four L3 fast chargers will be installed at retail locations and one at the Reading library. The ROI on the EVSE is 11-13 years at 22 cents per kWh. To reach a full charge, L2 chargers take 8 hours and L3 fast chargers take under an hour. From CY23 - CY27 the RMLD plans to Install two to four L3 chargers within the service territory at retail and municipal locations - TBD. This project supports the Climate Bill electrification mandate. IT Related (Page 11, Line items 9-14) Customer Portal (Mobile Apo) Line 11. page 39 RMLD is requesting to spend $100K in CY22 and $100K In CY23 for the customer portal mobile application. The plan is to develop a two-way facing customer service portal for customers to have access to news, usage, billing, events, LAN, rebate status, and rebate comparisons. IT infrastructure Enhancements Line 12. Daae 41 RMLD is requesting to spend $370K on IT infrastructure enhancements. Two projects are planned in anticipation of accommodating growth (MDM, TLM, AMI). RMLD plans to expand Its virtual environment servers and redesign the current network systems (including network switches, hardware and software). IT Security Line 13 page 43 RMLD Is requesting to spend $305K for IT security. RMLD Is continuously monitoring the cyber and Internal environments to assess and respond to threats. It is necessary for the RMLD to Implement and update the multifactor authentication, Install firewalls, network visibility, sewrity Information, advanced managers and other misc. initiatives. Engineering and Operations (Page 11, Line Items IS -s0) Relay Protection Upgrade at sub 4 Line 17. woe 55 RMLD Is requesting to spend $300K for relay protection upgrades at Station 4 over three years (CY21-CY23). 70K in CY21; 150K In CY22; 80K In CY23. Per NERC and NPCC, RMLD is required to install high speed relay protection upgrades to clear faults faster. These upgrades will occur between National Grid's Tewksbury Station #17 and Reading Station Page 14 *494. Design changes will be made to replace system 1 and 2 relays at RMLD's BES Station 4. RMLD hired PLM to redesign 150 KV relaying, to coordinate and sequence them with the National Grid and Eversource relaying once all designs are complete. Pad -mount Switchc ar Uoorade at Industrial Parks Une18 Paae 57, RMLD Is requesting to spend $764K for Pad -mount Switch Gear Upgrades. This project began In FY18 and continues through CY23 to replace 27 aging units. Since the Inception of the program, 14 units have been replaced and seven more are expected to be replaced in 2021. In CY22, six more units will be purchased and replaced. New Wllminoton Substation. Paae 59. Line Item 19 and 20 For the new Wilmington Substation, the RMLD is requesting to spend 650K for the land purchase in CY22 and an additional 195K for the system impact study, engineering, and permitting. RMLD's existing Wlldwood Wilmington Substation Is antiquated and far from Wilmington's load center, which Is In the Ballardvale area. RMLD is negotiating to purchase the land near the 115 kV lines. The substation will be designed and equipped with 260 MVA transformers and 115kV switchgear to feed the Ballardvale area and provide load relief from Stations 3 and 4. RMLD has executed an L01 and agreement with the landowner to proceed with surveying and conducting the phase 1 environmental assessment. The land purchase and permitting will take place in CY22, followed by construction and commissioning in CY23 and CY24. Grid Modernization and Optimization (Pace 63 Lme Item 231 RMLD Is requesting to spend approximately $1.56m for grid modernization and optimization. This is an ongoing project (15-20 years) following the best practices and Industry trends. The program will upgrade and modernize the following: system switches, cap banks, SCADA systems, reclosers, etc. This program began in FYIS and will continue through CY35. In accordance with RMLD's technology roadmap, the program Includes the Installation of four SCADA made switches and two IntelllRupter smart switches. This project also addresses ABB reclosures, Cap bank automation, W0, MDM, and communication devices. A communication study was performed in CY21, recommending the best means for field devices to communicate amongst each other and with the SCADA system (necessary for processing and automation). These recommendations were implemented In CY22 In the amount of $156K. AMI Mesh Network Expansion & Meter Renl t meet fPace 71 Lne 241 In CY20, RMLD hired a consultant to evaluate the current antiquated AMI, AMR system. The recommendation was to upgrade and replace Itron antiquated meters with a full two way fixed Mesh Network, as the system has reached the end of its useful technology life. Approximately 3600 commercials and some residential mirrors of Itron meters are Incapable of sending Last Gasp messages, which come through the outage management system and allow the RMLD to map out the outage area. As a result, the outage management system cannot locate the outage when meters are out. The RMLD was also recommended to Install a new MDM program to house the metering data as well as, providing the means to integrate with the AMI and Cogsdale CIS to implement the demand response and other demand management programs. This integration provides RMLD and IRD with the data needed to create successful programs. In CY20 RMLD hired Katama engineering to prepare an RFP for the MDM, AMI, and AMR systems. RMLD plans to install the MDM in CY22, included as a part of grid modernization, for $280K. The RMLD plans to Install the AMI, AMR system from CY22 to CY24. The total cost of this project is approximately $7.6m The 3W18 Gateway Improvements for Station 31s a continuation from CY21 to increase the feeder thermal ratings for normal and emergency loading and minimizing the loading the losses. The total cost of the project is $215K. The RMLD completed a similar project at Station 4 to Increase the thermal rating of the feeders, which lowered losses and saved the rate payers money. Page 15 Transformer and Capacitor Purchase (Page 79. Line Item 361 The RMLD is requesting $751K for annual transformers and apacltator purchases. This covers purchases of all stock, new construction, and reliability projects (including the age transformer replacement program), and 13.8kV step down conversions. This is another significant project that assists in lowering system losses and costs. The Increase from CY21 to CY22 ($333k) Is due to the Increase of the single and three phase transformer Inventories for the aged replacement program. In CY21 the RMLD Inspected, evaluated, and scheduled replacements for the transformers that were due for an upgrade from the effects of environmental Impact on load and physlcal condition, Beginning In CY22 the RMLD will Implement an annual Inspection of all transformers aged 10+ years, and will schedule replacements based on a scorecard evaluatlon method developed inhouse. The RMLD discovered that some of the younger transformers have begun to deteriorate faster due to poor material or condition of the soil. This pushed the RMLD to change the 25 - year evaluation to 10 years, as a means of ensuring the transformers are not overloaded or in poor condition. Lono-Term llaprade Reliability Proiects Paoes 81 - 89. Line Item 37 -41 Long term upgrade reliability projects are annual reliability projects that reduce outages and Improve overall system reliability. These projects are broken down Into five categories, costing $2,479,000. These line Items do not include the cost of transformers (Line Item 36). Long-term upgrade reliability projects are Inclusive of 13.8kV stepdown conversions to support load and improve voltage delivery; underground facility upgrades; age transformer replacement programs; and secondary and main service upgrades to renew overall system losses and Improve operating conditions. Pole replacement Proaram Line Item 42. pace 1 The RMLD Is requesting $298K for the pole replacement program. Started In 2014, the RMLD annually inspects poles in the area with the intent to replace poles that have reached the end of their useful life. Each year the RMLD tests 700-1000 existing poles, and since the inception of the program, since the inception of this program RMLD has Inspected 4774 poles and replaced 302. B. OPERTATING BUDGET Ms. Markiewicz presented the CY22 Operating Budget Reading Municipal Light Department CY22 Operating Budget PDF Presentation, Board Packet Financial Strategic Balance: Slide 1 Ms. Markiewicz reported on the financlal strategic balance that occurs when the budget is created and emphasized the Importance of paying consideration to crucial factors during this process (as outlined on slide 1). CY22 Operating Budget Fixed Costs: Slide 2 Ms. Markiewicz reported on the CY22 fixed costs. Fixed costs are costs that cannot be changed and Include expenses that are contracted and/or previously voted on by the Board In past motions. The total fixed costs represent approximately 76% of the overall operating budget, and of that, Power Supply accounts for 66%. As Mr. Padno noted, the depreciation expense is a 3% minimum reserve, and is currently at about 5.5% ($5.1m). This is approximately a 4% Increase due to necessary capital Investments. Ms. Markiewla stated that the 2.73% ($2.5m) voluntary payment to the Town of Reading reflects the formula change to the commitment; with an increase of nearly 2%. The payments to the four towns (2% net plant, $1.7m) increased approximately 3%. This was due to capital investment growth, which led to an Increase of net plant. Loss on disposal of assets is just under a quarter percent. Page 16 CY22 Operating Budget Semi - Variable Costs: Slide 3 Ms. Markiewicz reported on the CY22 semi - variable costs. Semi -variable costs account for approximately 24% of the budget and allow for a small amount of wiggle room. Ms. Markiewicz identified the top items in this category, citing labor costs with overtime and pension, employee benefits, pension, and OPEB (Other Post -Employment Benefits) tied to RMLD's three labor contracts. Employee benefits are also tied to the Town of Reading, through the Town's health and dental plans. Labor expense amounts for approximately 10.25% of seml-variable costs; of which, 1.6% ($9.4m) is for capital projects. Ms. Markiewicz reported further on the notable items in this category, as outlined on slide 3. Significant Increases Budget to Budget: Slide 4 Ms. Markiewicz reported on the significant increases In the CY22 budget, as outlined on slide 4. Notable Increases were outlined as follows: Labor is projected to increase by approximately 12.5% or $1 million Employee Benefits/Pension is projected to Increase by approximately 6% or $274K • Other operating and maintenance expenses are projected to Increase about 19% or $414K Efficiency electrification expenses are projected to double about $1.2m. • Contract and consulting services are projected to increase about 45% or $227K. Software and hardware maintenance projected to Increase 54% or $250K. Property insurance projected to increase about 14% or 67K. Transformer maintenance projected to increase 67%, about $145K. • Training and tuition reimbursement projected to Increase 28% or 72K. CY22 Budgeted Other Operating and Maintenance Expenses: Slide 5 - Slide 6 Ms. Markiewicz provided a breakdown of the other operating and maintenance expenses, as requested by Vice Chair Pacino. Each division, and departments within each division, have their own budget allocated towards items particular to the department Itself and supplies and expenses that are directly related to the department. Ms. Marklewi¢ cited the example of the General Manager budget, which is inclusive of dues and subscriptions, public power week, storm related supplies, etc. Notable expenses were highlighted as follows: General Managers expenses at approximately $90K. Human Resources expenses at approximately $81K Community Relations expenses at approximately $76K. • Building maintenance expenses at approximately $500K (largest budget). • Material management expenses at approximately $160K. Engineering and operations expenses at approximately $31K • Overhead and underground maintenance of lines expenses at approximately $367K. • Station & meter tech expenses at approximately $326K. Information technology supplies and expenses at approximately $50K. Integrated resource expenses at approximately $129K. • Business and finance expenses at approximately $191K. • Customer deposit interest expenses at approximately $40K (interest payback for held customer deposits). Customer processing fees at approximately $534K Vice Chair Pacino commented that the information provided was exactly what he was looking for. Page 17 CY22 Budgeted Legal Expenses: Slide 7 Ms. Markiewicz reported on a breakdown of legal expenses, as requested by Vice Chair Pacino. Notable expenses were highlighted as follows: • General Manager B policy review expenses at approximately $25K. Includes any new updates as well as language and compliance requirements on RMLD policies, etc. • Human resources and labor relations expenses at approximately $92K. Includes anything related to negotiations, grievances, arbitration, staffing, labor law, benefits, COVID 19 etc. • Engineering and operations expenses at approximately at 90K. Includes OSHA compliance, terms and conditions, service requirement handbooks, dark fiber, small cell attachments and related compliance, etc. • Business and finance expenses at approximately $30K. Includes audit letters sent to our legal counsel, GASB compliance, DPU regulation, sales tax exemption, fraud prevention, cash custodial responsibility, etc. • Procurement and liability expenses at approximately $60K. Includes contracts, Chapter 300, Insurance updates and requirements, electric liability claims, Wilmington substation land, • Purchase power expenses at approximately $159K. • Includes supply contracts, ISO litigations, FERC regulations, renewable energy certificates, portfolio standards, etc. Ms. Markiewicz reported on a breakdown of CAB and Board expenses for the last five years, as requested by Vice Chair Pacino. The information outlined demonstrates the combined total expenses of the Board and the CAB. Each budget Is approximately $15,000. The CAB amounts stems from the 20 year Agreement. Expenses that are allocated to these budgets Include the NEPPA conference, staff related time with minutes, and any other expenses related directly to the Board or CAB. Discussion ensued regarding the amount of money spent by the Board annually. Vice Chair Pacino commented that the budget amount for the CAB of $15K was established by the 20 - year agreement, and he has no issue with that. However, the Board is not spending the amount is allocated to Board of Commissioner for expenses. After discussion the majority sense was not to change the expense amojtn allocated to the Board of Commissioners. Ms. Bite asked for clarification regarding the 67% increase for transformer maintenance. Ms. Markiewicz responded that a portion of the increase is related to the addition of the transformer maintenance project to the capital budget, which is associated with testing hazardous material. Although the increase seems significant at 67%, the amount is only $145K. Chair Coulter added that it is a standard operating procedure to test around the soil of leaky transformers, Ms. O'Brien clarified that transformer expenses are allocated to both the capital and operating budget. The transformer maintenance expense for the clean-up and testing of hazardous material is allocated to the operating budget, while replacement expenses are allocated to capital budget. Ms. Bita asked for clarification on the miscellaneous line in the operating budget for approximately $50K, which will Increase by 15% in CY22. Ms. Markiewicz stated that this line (930) represents customer processing services and supports customer payment needs and expectations. Ms. Markiewicz misspoke, this actually refers to Town of Reading services Invoice along with administrative salaries unrelated to customer needs. 903 is the account Ms. Markiewicz was originally referring to above. ft, 18 Mr. Talbot asked for further clarification on the miscellaneous expense line; Ms. Markiewicz responded that it is called miscellaneous general expense because when utilizing FERC accounting, the relevant FERC description must be used. The miscellaneous general expense category captures expenses relating to different areas of administrative support within the business side. Ms. O'Brien stated that the RMLD can offer a mini -FERC accounting training for the Commissioners. Ms. Bite asked a question regarding the process of the requesting a change to the budget once approved. Discussion ensued regarding the overall RMLD budget review process for the CAB and Board. The Board and Mr. Kelley agreed to discuss and consider a joint meeting between the CAB and the Board when the RMLD presents the Initial budget moving forward. Chair Coulter commented that Massachusetts is now in a new grow zone, and this, among other factors, may have an impact on the tree trimming budget. Projected Rate Increases: Slide 8 Ms. Markiewicz reported on the projected rate Increases. For CY22 there Is a 2.2%-4.7% overall rate increase across all rate classes. For the la half of CY22, rate Increases will be partially supplemented by the Rate Stabilization Fund of approximately 1.4% ($1.2m). Integrated Resources Report Rates Summary (Slide 3). Mr. Phipps reported on the summary of changes rate classes 2022. Rates are intended to cover operating costs, power supply costs, and the rates support the capital budget. To align with the 2022 budget that was just presented, slight modifications were made to the rates shown here verses those originally presented in August and September. Mr. Phipps summarized the current and proposed rates for each class, as outlined In slide 3. The rate Increases are modest, maintain a fair balance between rate classes, and meet legal compliance elements. The Increase In load growth that comes with electrification is pushing more investment in the distribution network. This context ties Into Mr. Jafari's budget discussion of the acceleration of network upgrades, which looks 15-20 years down the road. Similarly, the EEC charge (previously approved) Is essentially an incentive fund to drive electrification by fostering changes in customer behavior. Ovemlew 2022 rate recommendations (Slide 4) Mr. Phipps presented the 2022 rate recommendations. The load growth Is driving the dollars for distribution energy which funds RMLD distribution network upgrades. This is primarily driven by the growth Initially in the residential space. This accounts for why the residential number is 4.7% verses the industrial and commercial numbers which are just below 4%. Although the EEC charge resembles a massive Increase at 200%, the rate Itself was only raised from $0.001/kWh to $0.003/kWh. Comparatively, the IOUs collect at a rate 6 times higher than what the RMLD is Implementing. Page 19 Mr. Phipps Identified the current proposed rates for Board approval, outlined on the table In slide 4 (Residential, Commercial, Industrial, and School). As noted, distribution energy (load growth) and EEC (electrification) are the primary drivers for these rate increases. Per the Cost -of -Service study performed by the RMLD, the rates are designed to reflect the uniqueness of each rate category. Mr. Phipps stated that detailed examples of the proposed rates are on the website as well as in the board packet. Vice Chair Pacino made a motion, seconded by Mr. Talbot, move that the Board of Commissioners, on the recommendation of the Citizen's Advisory Board, vote to accept the General Manager's recommendation to replace the following MDPU rates effective on billings on or after January 1st, 2022: Replace 279 Residential Schedule A with 296 Replace 280 Residential Time of Use Schedule A2 with 299 Replace 282 Commercial Schedule C with 297 Replace 283 Industrial Time of Use Schedule 1 with 298 Replace 284 School Schedule SCH with 300 Motion Passed: 4:0:1 (4 in favor, zero opposed, 1 absent) Roll Call: Vice Chair Pacino, Mr. Aye; Mr. Talbot, Aye: Ms. Bita, Aye; Chair Coulter, Aye. Mr. Stempeck was absent from the vote. 2021 Q2 2021 Grtificates Update (Slide 5). Mr. Phipps presented the Q2 2021 report on certificate management. Certificates are acquired through the purchase of power, with associated certificates. Currently, the RMLD buys certificates only with associated power, and does not buy on the open market. 59K certificates were acquired In Q2 of 2021 (1 certificate per MWH). The RMLD purchased additional power In Q2 but only 59K had associated certificates. Per the policy 30 the RMLD Is retiring 23% of retail sales. In Q2 the RMLD will retire approximately 36K certificates, sell approximately 23K, and keep the balance of 3,600. The ending balance of 3,600 is to account for quarterly load changes. The RMLD will retire or sell all certificates from 2021 by the end of Q2 in 2022; any 2021 certificates that the RMLD does not transact by the end of June 2022 are forfeited. When Q2 sold certificates will net approximately $520K depending on market volatility. This amount will be applied back to the purchase power budget, which dampens the volatility. Power Supply Agreements Offshore Wind Opportunity Mr. Phipps reported on two additional Power Supply Opportunities. Offshore Wind Oonortunity fslide 61 Mr. Phipps reported on the wind array (7,000 MW- 15,000 MW) going off the coast of southern MA, as outlined in slide 6. As a reference, the maximum load for all New England In 2020 was 25,000 MW. Once built, these wind projects are massive and until now, MLPs have not had a chance to bid on the outtake of these projects. Vineyard Wind owns an array and due to the anticipated purchase date of 2026 or 2027, it Is likely that the turbine systems being installed will be higher powered than what was originally planned. Out of the 7,000 MW, there Is a small 25 MW section that the MLPs can collectively participate in. ENE has assisted in orchestrating this; there are 20 MLPs who are interested In participating, amounting to 1/200 of the 20 MW for each MLP. Although this project is small relative to our portfolio, RMLD does want to participate in the bid, which will be announced and evaluated In December 2021, The RMLD will continue to push for more opportunities with offshore wind projects. Page 110 Ms. O'Brien clarified that DOER will be evaluating the proposals, one from Vineyard Wind/ Commonwealth Wind, and another from Mayflower Wind. Of these proposals, RMLD will get the excess MWs. Ms. O'Brien cited an example; If the project is calculated to by a 12 MW turbine, and it ends up being a 13 MW turbine, the SMW difference Is the excess. The DOER then decides whether the MLPs will win the Incremental addition. This is a bid solicitation that comes under MA procurement laws. This bid Is not a guarantee, but a decision will come quickly, likely before December 17. It is important for the RMLD to participate, as this sets a precedent for potentially being included in future offshore projects. Mr. Talbot commented that the inclusion of the phrase in the motion regarding environmental justice may not apply to an offshore wind project. Discussion ensued on keeping the verbiage in the phrase, and It was agreed to keep the motion as Is. Vice Chair Pacino made a motion, seconded by Mr. Talbot, that the Board of Commissioners, on the recommendation of the Citizen's Advisory Board, vote to accept the General Manager's recommendation to execute a contract with Commonwealth Wind for energy, including associated certificates, from an offshore wind facility off the southern mast of Massachusetts, contingent on appropriate environmental justice due diligence. Motion Passed: 4:0:1 (4 in favor, zero opposed, 1 absent) Roll Call: Vice Chair Pacino, Mr. Aye; Mr. Talbot, Aye: Ms. Bita, Aye; Chair Coulter, Aye. Mr. Stempeck was absent from the vote. Power Supply - Solar PV ,Slide 2 - Solar Mot onl Mr. Phipps presented on the Solar PV power supply opportunity as outlined on Slide 2. The system is land base and associated with a previous project that was granted approval (up to 5 MW) by the Board. The Solar Array is located at the Seabrook New Hampshire site, and there is an opportunity to increase the size of the array with land adjacent to the Seabrook site. Mr. Phipps reported on the total volume, term, certificates, and pricing of opportunity, which allows for the RMLD to add additional solar to the power portfolio, as well as additional certificates. The motion allows for up to 12 MW for a solar PV system Instead of SMW to allow room for an opportunity to secure additional MWs as purchase options for panels may allow for higher efficiency panels to be installed.. Ms. Blta asked a question on the cost of the MA Class 1 certiflcates. Mr. Phipps responded costs were currently at $40 per certificate. Ms. Bita asked a follow up question on purchasing certificates In the open market; Mr. Phipps responded that the RMLD does not purchase on the open market but would consider It if necessary. Vice Chair Pacino asked a question on a point that was made at the CAB meeting about other solar projects. Mr, Phipps responded that In Sept, the RMLD received BOC approval to purchase solar power for a BroadLeaf solar array. ENE assembled several MLPs, including RMLD, to participate in an opportunity for 182,000 MWhs (shared across 8 MLPs), RMLD share Is 27,000 MWhs. RMLD Is proactively and aggressively looking for solar projects while building out the Power Supply Portfolio due to the anticipated shortage of non- carbon sources towards 2050. Mr. Pacino made a motion, seconded by Ms. Site. To move that the Board of Commissioners, on the recommendation of the Citizens' Advisory Board, vote to accept the General Manager's recommendation to modify a power supply contract with NextEra for energy, Including associated certificates, to increase the size of the previously approved solar array from up to 5 MW to up to 12 MW for a solar PV system at the Seabrook nuclear facility site, contingent on appropriate environmental justice due diligence. Motion Passat: 4:0:1 (4 in favor, zero opposed, 1 absent) Roll Call: Vice Chair Padno, Mr. Aye; Mr. Talbot, Aye: Ms. Bita, Aye; Chair Coulter, Aye. Mr. Stempeck was absent from the vote. 8. Procurement Requests Requiring Board Approval - Mr. Jaffari, Director of Engineering & Operations IFS 2021-19 Janitorial Services Mr. Jaffan reported that S&I Services had the most recent contract for janitorial services for a three-year term. The bid was sent to 40 companies, four respondents, three bidders deemed non-responsive. SJ Services Is the lowest responsible and responsive bidder they did not take any exceptions. The bid reflects the pricing for the janitorial services performed at RMLD's office and operations buildings, service center, garage, as well as a leased warehouse that are all located at RMLD's Ash Street campus. Mr. Talbot asked for clarification on the pricing and Ms. Site sought clarification on the terms. Mr. Jaffari explained that the three-year contract total is $119,424, costing per annum is $38,720 year one, $39,824 year two, and $40,880 year three. It has Increased from the last contract (2018-2020) approximately $19.000. Mr. Talbot commented on the fact that there was only one bid. Mr. Jaffari responded that there were four respondents out of 40 bids sent. Some of the bid packages did not include all the required documentation such as liability Insurance and authorized signatures. Mr. Talbot asked a follow up question on the disqualified bidders. Mr. Jaffarl replied that one respondent put all zeros in for each year. The other bidders were higher Partner Solutions General $134,921 and Star Building Services $123,956. Mr. Talbot thanked Mr. Jaffari for the discussion since the pricing for the bid is good, he is comfortable with that. Vice Chair Pacino made a motion seconded by Ms. Site that IFB 2021-19 for Janitorial Services be awarded to S. J. Services, Inc, for $119,424.00, 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 mntmct. Motion Passed: 4:0:0 (4 In favor, 1 absent) Roll Call: Vice Chair Padno, Aye; Ms. Bits, Aye; Mr. Talbot, Aye; and Chair Coulter, Aye. Mr. Stempeck was absent from the vote. IFP 2021-20 Substation Spam Equipment Mr. Jaffari stated that this bid is for the spare parts for all substations. Replacements for bushings, transformers, IAs, PTs, CGs, have a long lead time. In the event there is premature failure RMLD needs to have replacement in our Inventory. The bid was sent to 14 companies, with four respondents. Stuart Irby Company came in at the lowest cost for five of the six Items, WESCO for item number four the lowest, and no pricing was received for Item number two, which was the 488 KV rated transformer bushing. Due to the fact this transformer bushing Is old RMLD needs to secure this equipment on the secondary market, resulting In a total cost of $56,829.98, the capital budget amount for this project is $100,000. Vice Chair Pacino made a motion seconded by Ms. Oita that IFP 2021-20 for Substation Spare Equipment be awarded to: Stuart C. Irby Company, for $49,873.98, and WESCO Distribution, Inc., for $6,956.01, pursuant to M.G.L. c. 164 § 560, on the recommendation of the General Manager. Motion Passed: 4:0:0 (4 In favor, 1 absent) Roll Call: Vice Chair Padno, Aye; Ms. Bita, Aye; Mr. Talbot, Aye; and Chair Coulter, Aye. Mr. Stempeck was absent from the vote. IFP 2021-23 02CU 15 kV Underground Cable and 02STR CU 1 GOND SOOV XNNW Cable riga 1 12 Vice Chair Pacino disclosed to the Chair that he will abstain on voting on this bid whereas Arthur J. Hurley Is a client of his client. Mr. )affarl said that this IFP is for number two copper cable 15 KV for underground URD systems that RMLD has in all four communities, in addition, the number two stranded copper cable 600 volts for the secondary. The bid was sent to eight companies, with three respondents. The lowest responsible and responsive bidder was Arthur Hurley for $94,725 which includes the 600 volt cable as well as the 15 KV cable. Vice Chair Pacino made a motion seconded Ms. Bita that IFP 2021-23 for #2CU 15kV Underground Cable and #2STR CU 1 COND 600V XHHW Cable be awarded to: Arthur J. Hurley Company, Inc., for $94,725.00, pursuant to M.G.L. c. 164 § 56D, on the recommendation of the General Manager. Motion Passed: 3:0:1 (3 in favor, 1 abstention, 1 absent) Roll Call: Vice Chair Pacino, Abstain; Ms. Sita, Aye; Mr. Talbot, Aye and Chair Coulter, Aye. Mr. Stempeck was absent from the vote. RFQ 2021-18 Pick -Up Truck with Dump Body and Material Spreader with Trade - Ina Mr. Jaffari explained that this bid was sent out twice, the first time, May 2021 with two respondents, who were deemed nonresponsive. RMLD in turn clarified Its specs then searched the statewide contract VEH98 which provides a list of vendors. The second bid was sent September 2021 to six vendors with only one respondent Liberty Chevrolet in which RMLD utilized a cooperative contract with the Greater Boston Police Council, GBPC who Liberty has a contract with. In addition, the town of Reading is also a member of GBPC. Some of these trucks RMLD bid on have long lead times. In this case GBPC ordered one extra truck therefore minimal lead time. RMLD is trading In three obsolete trucks from its Beet. Currently, there are no other alternatives to fuel such as electric or no PHEV. By reducing the Beet size by two vehicles results in cost savings for fuel and repairs. Vice Chair Pacino made a motion seconded Ms. Site that RFQ 2021-18 for a Pick -Up Truck with Dump Body and Material Spreader Attachment with Trade -Ins be awarded to Liberty Chevrolet for net delivered price of $65,774.00 ($68,774.00 minus $3,000.00 for trade ins), pursuant to M.G.L. c. 308, as the lowest responsive and responsible bidder, an the recommendation of the General Manager Motion Passed: 4:0:0 (4 In favor, 1 absent) Roll Call: Vice Chair Pacino, Aye; Ms. Bita, Aye; Mr. Talbot, Aye; and Chair Coulter, Aye. Mr. Stempeck was absent from the vote. 9. Schedulina Subsequent RMLD Board Meeting: RMLD Board meeting Monday, December 20, 2021, 7:00 pm. CAB Meeting Coverage: (December) Mr. Talbot AP: Mr. Coulter; Payroll: Mr. Pacino Mr. Talbot asked a question regarding ratepayers sponsoring another ratepayer relative to renewable choice, where one ratepayer could absorb the optional cost of the other ratepayers energy. The RMLD will investigate this if this can conceptually happen from a legal perspective and report back at the next meeting. Discussion ensued on gifts certificates and good citizen funds. It was the concurrence of all to consider this issue going forward Page 1 13 10. Adiournment At 9:09 pm Vice Chair Pacino made a motion seconded by Ms. Bita that the Board of Commissioners adjourn regular session. Motion Passed: 4:0:0. (4 in favor, I absent) Roll call: Vice Chair Pacino, Aye; Ms. Bita, Aye; Chair Coulter, Aye; and Mr. Talbot, Aye. Mr. Stempeck was absent from the vote. BOARD MATERIALS AVAILABLE BUT NOT DISCUSSED Accounts Payable / Payroll Questions through pay date 10/11/2021 Financial Update through August 2021 Surplus and Scrap Material Report September 2021 & October 2021 A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. ;%%ZZf7 8 i -Z*' 10 Philip Pkino(Jan 26,202218:50 EbT) Philp B. Pacing, Secretary Pro Tem RMLD Board of Commissioners Pape 114