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HomeMy WebLinkAbout2022-03-24 RMLD Board of Commissioners MinutesTown of Reading KEGEWED 0 Meeting Minutes TOWN CLERK READING, MA.&L. 8osrd - Committee - Commission - Council: 2022 JUL 2$ flit 10: 49 RMLD Board of Commissioners Date: 2022-03-24 Time: 7:00 PM Building: Location: Address: Session: Open Session Purpose: Version: Attendees: Members - Present: Mr. Robert Coulter, Chair; Mr. Philip Patina, Vice Chair; Mr. John Stempeck, Commissioner. Mr. David Talbot, Commissioner; Ms. Mariana Bita, Commissioner. Members - Not Present: 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 Ms. Erica Morse, Executive Assistant. Citizens' Advisory Board:Mr.Jason Small, CAB, North Reading Presenters: Caroline Fischer, Cultural Solutions Group Minutes Respectfully Submitted By: Philip Padno, Secretary Pro Tem Topics of Discussion 1. Call Meeting to Order Chair Coulter called the Board of Commissioner's 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 and Introductions Chair Coulter read RMLD's code of conduct and asked all attendees to identify themselves. Vice Chair Pacino served as Secretary at the meeting. Chair Coulter said Ms. O'Brien has announced her retirement; this news is very unfortunate for the RMLD. Chair Coulter stated that Ms. O'Brien has done a phenomenal job and he has great respect for her and all she does for the RMLD. Chair Coulter thanked Ms. O'Brien on behalf of the BOC; she will be missed. Mr. Talbot echoed Chair Coulter's comments and thanked Ms. O'Brien. Mr. Stempeck said Ms. O'Brien has done a wonderful job over the past ten years reshaping and reforming the RMLD Into something to be proud of moving forward. He Is very sorry to see Ms. O'Brien's retirement. Page I t Town of Reading Meeting Minutes Vice 9Chair Pacino said he is sorry to see Ms. O'Brien go. It was great working with her over the years; out of all the managers Vice Chair Pacino has had the privilege of serving, Ms. O'Brien has been the best. Ms. Bite said she appreciates all the one-on-one time Ms. O'Brien has generously offered and will miss more opportunities to work with her. Ms. O'Brien thanked the BOC for their sentiments. 2. Public Comment Citizens' Advisory Board Mr. Small stated that the CAB meeting has been postponed to 4/4/2022. Mr. Small congratulated Ms. O'Brien and said he has enjoyed working with her on the Board for the last few years. Ms. O'Brien said she is available as a resource and is always willing to help MLPs. Liaisons to RMLD Board There was no comment from the RMLD Board Liaisons at this meeting. Public Comment There was no comment from the public at this meeting. 3. Approval of Board Minutes The January 19, 2022, regular session meeting minutes were approved by the Board as presented. Vice Chair Pacino made a motion, seconded by Ms. Bite, move that the Board of Commissioners approve the meeting minutes of the January 19, 2022, meeting on the recommendation of the General Manager. Motion Carried: 5:0:0 (5 in favor) Roll Call: Vice Chair Pacino, Aye; Chair Coulter, Aye; Mr. Talbot, Aye; Mr. Stempeck, Aye; Ms. Bita, Aye. 4. General Manaaer'S Report Ms. O'Brien provided a General Manager's report as follows: Community Update Press Releases Two press releases will be going out tomorrow: one announcing Ms. O'Brien's retirement and another communicating the Kearsarge Battery Agreement. Ms. Mulvaney Resionapon Ms. O'Brien said she is sad to announce that Ms. Mulvaney is taking a job at another company. Ms. Mulvaney is thankful for her time at the RMLD and has enjoyed working with everyone. Ms. Mulvaney has done an awesome job and the RMLD will miss her. Virtual Elementary Art Contest Awards Nights The awards nights were held earlier this month and were very successful; the artwork was inspirational. Ms. O'Brien thanked Chair Coulter, Vice Chair Pacino, and Mr. Talbot for their participation. OPN Town of Reading Meeting Minutes Man School Art Contest Artwork is due tomorrow (3/25); Ms. Mulvaney will send out a link to vote. The department will choose one or more winning pieces to be on the cover of the annual report. Board Elections Board Elections will be held at the 4/21/2022 meeting. The Board will appoint a Chair, Vice Chair, and Secretary. Per Policy 19; a commissioner cannot be appointed if up for re-election within the year. Chair Coulter is the only commissioner up for re-election in 2023. Annual Reoort Ms. Markiewicz stated that the auditors are coming in on 4/4/2022. Ms. O'Brien said her evaluation packet contains the front-end materials of the annual report. Construction highlights and audited financials will go in the back of the annual report. The Audit Committee and BOC must approve the audited financials before they are included in the annual report. The RMLD is anticipating releasing the annual report by the end of May. Economic Development Meeldno This meeting relates to the Economic Development of the Eastern Gateway /Ash Street. Ms. Morse tried diligently to schedule this meeting; due to March conflicts, the meeting will be held in April, possibly after the elections. Transformer Bid Meeting An additional meeting to discuss the transformer bid needs to occur before 4/10/22. The bid deadline is 4/11/22. There is an option for the BOC to join the CAB meeting on 4/4/2022. The bid has gone past the budgeted amount; Ms. O'Brien must go back to the CAB to get permission to do the bid, then back to the BOC for approval. S. Integrated Resources Reoort Mr. Phipps provided an integrated resource report as follows: SMW New Battery Storage at Fordham Road (Slide 3) The RMLD Is proposing to add an additional 5 MW/ 10 MWH battery storage system, based on the success of the current battery system at station 3. The system will be installed adjacent to an existing solar array at an industrial site on f-ordham Road,in Wilmington The solar system was installed three years ago as part of the "Solar Choice" Program. Mr. Phipps stated that Kearsarge will make the Initial investment and operate the system. The storage agreement is a similar structure as the solar agreement (PPA), where Kearsarge made the Investment and continues to operate the solar array, while handling issues such as, panel maintenance etc. Mr. Phipps stated that the intention behind this project Is to help reduce transmission/capacity costs which are 40% of RMLD's total costs. The cost avoidance model predicts a total peak cost savings of —;1M annually. RMLD is not making the initial investment and is willing to share a high portion of savings with the Investor; the investor takes on the technical and financial risk. OFR Town of Reading Meeting Minutes rxone° � Although the RMLD prefers to own assets where possible, contracting these storage assets under a PPA allows the Department to avoid technology risk while benefiting from the shared savings. Net RMLD cost savings will average $200K annually with no net cost out and no downside. Once approved, the RMLD will draft an Energy Services Agreement (ESA version of a PPA); finish working on the Interconnect analysis; confirm permitting, site access, safety, etc. The site will be commissioned by summer 2023. Questions arose regarding the structure of the agreement. Mr. Phipps responded as follows: RMLD is making a zero dollar ($0) initial investment. Kearsarge will be making the initial multimillion dollar investment, inclusive of proponents such as getting the battery in place, software etc. Kearsarge is handling the lease of the land and insurance policies. Kearsarge is a reputable organization that has been around for some time; they manage the existing soalr array and several others in New England. Kearsarge handles everything and there is only a financial transaction on RMLD's end. This is inclusive of battery augmentation which is needed to maintain the 5 MW output. There is no liability associated with the RMLD. The site is in an industrial area which provides an added safety benefit. There are two variables in a risk reward approach: size and duration of discharge. The current system configuration is designed to discharge 5 MIN for a two-hour period, whereas a step up would discharge 5 MW every three hours. The wider window of 5 MW every two hours Increases the probability for hitting peaks, which is more beneficial to the RMLD because this storage system will be a component of the peak shredding program. The project aligns with the anticipated addition of five (5) MW blocks and is tailored to the location size, load size, and dollars in term of financial return. RMLD is renting access to the equipment under a service arrangement; Kearsarge will take responsibility for the charge and discharge of the battery. This model is anticipated to be successful because of the shared savings that aligns all parties with the Incentive to maximize such savings. Questions arose regarding economics, project cost, and net present value. Mr. Phipps responded as follows: The economics are evaluated on net cost savings to RMLD with minimal risk. The RMLD drew upon experience from the existing battery storage system at Station 3. Ms. O'Brien stated that people are contacting RMLD for experience and expertise with battery storage. The Department modeled a conservative analysis based on Station 3's system information; the average number of times the battery was discharged over the past year; and what can be assumed from the cost of transmission and capacity etc. The net present value has not been calculated; however, the working assumption is that there will be a 23% net savings of at least $200 K annually. Ms. O'Brien said that the RMLD has a third party that calls the peak a day ahead. This analysis is helpful for 85% or higher on the peak for transmission and capacity. Capacity and transmission costs are charged to the RMLD by the rate at a particular point in time and the load during peak hour. Although the rate is controlled externally, the load at peak hour can be reduced by the implementation of Peak Shredding programs, such as the ti (1FRF,ro Town of Reading Meeting Minutes r'•rxcoxrpP� battery being discharged during peak hours which reduces the load and results in cost savings / avoided cost. With the battery in place, the RMLD will pay on average $900K - $1M less for capacity and transmission. Once that avoided cost and shared savings are realized, the RMLD will keep - 25% of the savings and share the remaining 75% with the system owner (Kearsarge). Vice Chair Pacino made a motion, seconded by Mr. Stempeck, move that the Board of Commissioners, contingent on the recommendation of the Citizens' Advisory Board, vote to accept the General Manager's recommendation to contract with Kearsarge Energy under an energy storage PPA with shared savings, associated with a new 5 MW, 10 MWH battery system to be installed at a Fordham Road, Wilmington, MA, site, pending final interconnect study and appropriate permitting. Motion Carried (5:0:0) (5 in favor) Roll Call: Chair Coulter, Aye; Vice Chair Pacino, Aye; Mr. Stempeck, Aye; Mr. Talbot, Aye; Ms. Bita, Aye. RMLD Wholesale Energy Forecast (Slide 4) Mr. Phipps provided a general layout of RMLD's wholesale energy cost/forecast and reported on the graph titled "snapshot of current RMLD portfolio". Mr. Phipps said the purple line represents all RMLD's current contracts in $/MWH, forecasted over time. RMLD's total energy cost including transmission, capacity, and certificate retirements is - $90 - $103 per MWH depending on variables. Open market costs are dependent on various factors; this line is above RMLD's average contract line. RMLD's ability to structure long term contracts is an advantageous In keeping costs stable and below open market prices. This contrasts with IOUs who can only contract in six-month blocks. The difference between the solid and dotted lines is the sale of certificates that are tied to a particular resource. Over time the solid lines merge with the dotted lines as Policy 30 and the Climate Law cause the RMLD to retire more of the associated certificates and sell fewer of those certificates. Mr. Phipps noted that Offshore wind will likely drive the portfolio cost of wind to $70-$80 / MWH. 6, Cultural Survey (Taken out of order) Ms. Caroline Fisher introduced herself and provided an update on the use of a Cultural Survey at RMLD. Ms. Fisher is a culture/leadership consultant and facilitator; over the last 25 years has worked with large publicly traded electric power companies as well as small power rural electric cooperatives and municipals. The Concept of Culture This industry is constantly evolving, which contributes to the need for culture change within organizations to keep up with the continuously evolving demands outside of the organizations (customers, technology advances, etc.). Every organization has a culture whether by design or default; it is the way an organization works together to accomplish objectives and goals. Culture is measurable, manageable, changeable, and directly linked to everything that is measured. Culture starts at the top, but importantly does not end at the top; Everyone throughout the organization impacts the culture. Town of Reading z' Meeting Minutes P:OPPOP Steps To Understanding and Evaluating Company Culture The first step is taking a snapshot, gathering data, and seeing where the culture is now. This will provide a baseline to make informed choices throughout the entirety of the process. Ms. Fischer said that the collection of data in the organization in combination with the voices of RMLD's people, can Identify what is serving the Department's future and what needs to be addressed, especially in times of transition or leadership change. Today (Slide 3) All employees participate in and have a voice. Understanding Business Culture (Slide 4) Ms. Fischer discussed the definition of business culture. This involves understanding where the organization is going; establishing a future view; identifying the strategies In place and developing goals to support those strategies. It is crucial that the workforce can align towards the Department's goals; this ensures that their work is purposeful and meaningful. Ms. Fischer provided examples of things to consider when thinking about culture: • Is communication solely within teams, divisions, or silos? • Does the communication create real work results across the silos? • What happens when mistakes are made? • Employee Development • How decisions are made translates into how things are done, which will be measured. Why "Culture" Why Now at RMLD (Slide 5) The metrics being measured in the culture will reveal how the RMLD is positioned to move forward. Why "Culture" Why Now (Slide 6) Focusing on culture is particularly important in today's world; it is about working differently, not working harder. Creating the "We" at RMLD (Slide 7) Organizations tend to gravitate towards the small "we", department vs. department or team vs. team. Shifting to focus on culture is about bolstering the bigger "we". Why "Culture"? Why Now? (Slide 8) A company's culture will either support overall success or prevent it from moving forward. Looking through Different Windows (Slide 9) RMLD, like many other organizations, will show consistent cultural patterns across the organization with subcultural differences that occur from division to division and level to level. Identifying similarities and differences within this can allow for organizations to provide the best support as possible. The Denison Cultural Model (Slide 10) Ms. Fischer reported on the "four phases when creating a high-performance culture". Ms. Fischer highlighted the following points: • The direction that the organization Is going determines the culture that is needed. k�Q Town of Reading Meeting Minutes OF�4 •9 What kind of clarity is there about that direction throughout the organization? How is that shared (strategies; visions, goals)? • The alignment of employees with where the organization is going. • Do employees have appropriate capabilities? • How do employees work in teams? • What degree are people empowered to do the best work each day. • The ability to adapt • Consistencies, systems, and processes in the organization allow for movement in an efficient and focused way. The Denison Survey (Slide 11) The cultural survey measures behaviors: how things are done and to what degree certain behavlors align with company values such as reliability, quality, safety, employee and customer satisfaction and innovation. The survey contains sixty -items. The scale uses a one to five rating system, combined with written questions. The questions are customizable. Scores are provided in a percentile fashion and examine how RMLD stands in relation to similar functioning organizations. The survey is implemented by Cultural Solutions. The survey is performed with confidentiality and anonymity. Data is provided in an aggregated form to show the emerging patterns and themes. These emerging patters Influence the action taken. Ms. Fischer said the survey is not an employee satisfaction survey; it is a culture survey. The survey measures to what degree an organization is set up to function safely, with reliability, and with quality as It moves forward. Ideal Goals of an Employee Survey Process (Slides 12 - 16) Basic goals of the survey process include identifying areas of strengths and areas of weaknesses that need to be addressed. Ms. Fischer cited the following examples of survey process goals: • Understanding what drives an organization that only communicates in silos. • Understanding what is blocking clarity in terms of where the organization is going. • Understanding the root cause of an organization's difficulty with change. • This process opens lines of communication, which can lead to improved teamwork and relationships Denison Organizational Culture Survey: SAMPLE (Slide 17) Ms. Fisher provided a sample survey and report for demonstrative purposes. The results snapshot (included in the report) shows the survey findings of the sample power organization. Ms. Fischer discussed how the survey, and results are presented. Ms. Fischer noted that she is in the process of customizing the survey for RMI -D. Mr. Stempeck commented that the RMLD is facing a General Manager that will be leaving and he does not think It is appropriate at this time to conduct a survey without a new General Manager in place. Mr. Talbot said that he would like to see the survey questions. This was requested by the Board last June. Mr. Talbot would like to see a survey instrument upon which the Board can QI Town of Reading Meeting Minutes decide on as a commission. Ms. O'Brien said that In June when the goal to perform a survey was assigned, it was to hire a consultant to develop an employee survey in early 2022. It is on schedule. Ms. Fischer responded that currently there is a survey that is being customized Into RMLD's language. The time to capture the most current state is before the new GM comes on so that person can hit the ground running with the added benefit of the survey data. Mr. Talbot requested to see where the survey is now and that it be sent to the commission members. Mr. Talbot suggested at the next meeting the Board can decide on the content and timeline. Mr. Talbot asked if there a narrative report that Is produced? Ms. Fischer responded that she does a debrief with the Board and provides a summary of the written responses to the questions with a recommendation. Ms. Bita asked a question regarding length and detail; Ms. Fischer said the survey takes twelve to fifteen minutes. Chair Coulter said he is in favor of moving forward with the survey as fast as possible. Chair Coulter stated that participation is key; promoting the survey and stressing the importance to employees is on the RMLD staff. A question arose regarding confidentiality; Ms. Fischer responded that written data can be handled in multiple ways to protect anonymity and confidentiality. Ms. Fischer said that communication around the Implementation of the survey is the foremost Important aspect; Cultural Solutions Group provides counsel around that. Managing the meaning of the survey is paramount. It is Cultural Solution's job to garner the most valid data possible. Vice Chair Pacino said that in the past the commission did a survey with no follow through, which had a negative Impact on the employees. If the Board sees the questions, perhaps they could better assess the timing of the survey. There needs to be a plan so that there is follow up on the survey. 7. EDglneerma & Operations Report Mr. Jaffari reported on supply chain issues and the related effects on the RMLD, in terms of lead time and the pricing for transformers. The COVID pandemic has negatively impacted and accelerated the supply chain issues on a global scale. This impact is not exclusive to RMLD, it Includes but is not limited to, manufacturing, transportation, distribution, and retail. According to experts, the supply chain issue could extend beyond 2025. Transformers Lead Time/Pricing (Slide 4) Mr. Jaffari reported on the RMLD bid opening last week for transformers. There Is an increase in transformer pricing (up to 528%) from CY21 to CY22. Transformers are used daily for construction, system maintenance, and capital improvements. The lead time has increased from 18-32 weeks (CY21) to 22-102 weeks (CY22). Transformer bid submissions include base pricing with the stipulation of no commitment for pricing until the time of delivery, which may �, orx Town of Reading a'' Meeting Minutes �4 include additional costs. Manufacturers cannot commit on the delivery timeframe and the submitted changes provided by bidders must conform to 30B bidding requirements. Supply Chain Impact on Maintenance & Capital Projects (Slide 5) Mr. laffari pointed out the stock amount and impact on capital projects. RMLD will be implementing a business mitigation plan and solutions to counterbalance this new challenge and increase the resilience in the supply chain. This includes a business contingency plan; risk management analysis; Intelligent order management (better management of stock Inventory and ordering); and intelligent workflow. Supply chain costs are directly impacting the price of raw materials, resulting in higher cost of all products used in the power industry. Projected price Increases are expected to reach the following: oil 59%, carbon, steel, and aluminum 50%, freight charges 44%, labor 15.5% and electrical steel 25%. These factors are forcing RMLD to slow down the implementation of capital Improvement projects to maintain adequate Inventory by year end. New Strategy — Transformer Replacement (Slide 6) The RMLD is developing a new strategy to meet the upcoming challenges. Prior strategy of transformer replacement and inspection will be modified. The annual transformer replacement target of 180 will be modified to less than 100; transformer replacement will be geared to aged / overloaded conditions only. Priority will be shifted to transformers leaking or seeping oil and emergencies. Transformers used in construction may be returned to stock for refurbishment. Transformer refurbishment companies (New York, Texas, Midwest) will be utilized to mitigate the supply shortage. The utilization category for transformers In CY22 will be refocused. Due to market price volatility, RMLD is reaching out to other MLPs to create bulk transformer purchases. RMLD would benefit by this strategy. This plan will be continuously modified based on what the market dictates. The historic price Increases in CY22 were not anticipated ($700 K budgeted amount for transformers). Based on the last bid results, RMLD will be over budget by $1.2m. A question arose regarding the root cause of the supply chain challenges. Mr. laffari stated that the demand is high, and the supply is low. Supply chain issues are caused by backlog of major suppliers, of major ports, and shipping containers entering the United States. Customs agents, the transportation Industry, and manufacturers are working around the clock to catch up. The transportation Industry is not adequately staffed to transport the products and raw materials, which results In the delay of materials to manufacturers. Existing issues with customs around materials Imported from India and China also play a role. Chair Coulter stated that the same Issues are Impacting IOUs (Investor -Owned Utilities). All available Inventory was immediately purchased; from building switches first to transformers. Anyone not In line today for a transformer will realistically face a minimum wait time of six months. RMLD needs to alter its transformer purchasing process; if the Department is not in the queue customers will not receive the timely service they require. Projects could be held off based on the lack of inventory within the next six months. Ms. O'Brien provided the commodity impacts: carbon, steel, copper, oil, transformer regulators, switchgears, cost of raw materials pricing, freight costs, types of freight availability 14 o Town of Reading ?- Meeting Minutes no `aa: rxros+° and labor, manufacturing labor including customs - lack of Customs staffing, electrical steel both grain- oriented for transformer cores, and non -oriented for EVs. There is only one core steel transformer manufacturer in the United States and five globally, oil staffing levels and national security are the Impacts. Ms. O'Brien contacted NEPPA for the municipals to put in an aggregated bid to get into a queue. Currently, potential bidders may not take quotes because they are 100 weeks out. An aggregated bid is a possible solution as it takes the legislative avenue to the government where there can be a shift of funding and refurbishment. Ms. O'Brien will send an Insightful presentation from one of RMLD's vendors. Mr. Jaffarl said that the RMLD increased its transformer Inventory In anticipation of the upcoming issues; the supply should carry RMLD to the year end. RMLD needs to double up ordering to get in the manufacturers production queue for the next year. Chair Coulter stressed that it is extremely Important to get in the queue for manufacturing capacity. 8. RMLD Procurement Reguests R a irina Board IFP 2021-28 Electric Vehicle Charging Stations Site Construction and Installation There was no discussion regarding this bid. Vice Chair Pacino made a motion, seconded by Mr. Stempeck, that bid IFB 2021-28 for Electric Vehicle Charging Stations Site Construction and Installation be awarded to: Coviello Electric & General Contracting Co., Inc. for $95,000.00 pursuant to M.G.L., c. 30 4 39M, as the lowest responsible and eligible bidder, on the recommendation of the General Manager. Motion Passed: 5:0:0 (5 in favor) Roll Call: Vice Chair Pacino, Aye; Ms. Bita, Aye; Mr. Stempeck, Aye; Mr. Talbot, Aye; and Chair Coulter, Aye. IFP 2022-01 - Trouble Truck with Trade -In Mr. Talbot asked how many bids were received. Mr. Jaffarl responded the bid was sent to eighteen companies; there were two respondents, James A. Kiley Company and Altec Industries, Inc. Kiley was the lowest responsive and responsible bidder. The Truck 10 traded value assessed by Kiley is $4.5 K. In response to a question regarding Altec, Mr. Jaffari stated they did not complete the requisite documentation required, had numerous exceptions, and a higher cost. Discussion ensued and questions arose regarding trade-in verses auction. Mr. Jaffarl responded with the following: Pricing Is better with trade ins; auctions have longer wait times and pricing may be lower. Despite a shortage of trucks in the used vehicle market, this trouble truck has high mileage, as it is in continuous use and requires more maintenance. Thus, a trade in is less complex. Chair Coulter said that with the trade In, the vehicle will stay in place for - one year until delivery of the new replacement vehicle. Mr. Talbot asked if the contract can be tweaked to give the option of withdrawing the trade in at RMLD's discretion. This would allow to either trade in at $4.5 K or hold it back. 10 aI Town of Reading Meeting Minutes Mr. Jaffari said that the pricing may have been predicted on trade in value; the truck will be put on the secondary market, and this is calculated in the amount. Mr. Jaffari said that he will check Into the suggestions made. Vice Chair Pacino pointed out that the nonresponsive bidder offered a trade in of $7K whereas the responsive bidder only offered $4.5 K. Can the $7 K be matched? Mr. Stempeck suggested RMLD see what the truck will sell for on the secondary market and said that RMLD is not in the truck fixing business, it is the utility business. Mr. Stempeck cautioned the use of resources time for tracking things down. Chair Coulter suggested finding a truck on the market with the same make and mileage to compare the cost, including another year's worth of miles. Chair Coulter said that if the RMLD gets a third of the price on the open market, it is a solid deal. Chair Coulter suggested to table the motion to the next meeting based on the information requested. Bid deferred to the next meeting. Note motion tabled to next meeting, no vote taken - Suggested Motion: Move that proposal IFP 2022-01 for one (1) Trouble Truck with Trade -In be awarded to: lames A. Kiley Company for $252,419.001, pursuant to M, G.L. c. 164, § 56D, on the recommendation of the General Manager. IFB 2022-04 — Home Energy Assessment Program Mr. Phipps presented on the Home Energy Assessment Program Bid. Mr. Phipps said the residential energy assessment program has been in place for many years; Energy New England performed the audits in the past. The prior contract expired at the end of last year. With the new contract, in-person audits (preferred method) costs $185 per audit, and the virtual audits costs $150 per audit. Mr. Phipps compared this with the prior contract; in-person audits cost $176 per audit. Mr. Phipps said that the In-person audit will take two thirds of the funds with other options filling the balance. Mr. Phipps said that fifteen bids were sent out with one respondent. CEG was Interested, but Is Mass Save focused and Abode was not Interested. Mr. Talbot said that he had the Mass Save residential energy audit through the gas company and they pay for attic insulation. Energy New England's version does not do that. Mr. Phipps stated that RMLD is putting together a weatherization program. RMLD's intention is to have an insulation program linked to the air source heat pump program and is working through the economics of this. This will be brought to the BOC this summer. Mr. Talbot asked if the audits include air tests to verify If there is air leakage. Mr. Phipps said air door tests can be done at an additional cost of $200 per test. Chair Coulter asked if there is a backlog of audits. Mr. Phipps responded yes; January - March requests will be handled in April. Chair Coulter explained what Mass Save entails. It is more expansive than the RMLD due to the nature of its funding. Vice Chair Pacino made a motion, seconded by Mr. Talbot, that bid IFB 2022-04 for Home Energy Assessment Program be awarded to: Energy New England, LLC. for $82,500.00, 11 OPR Town of Reading '? Meeting Minutes • IXOP 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. Motion Passed: 5:0:0 (5 in favor) Roll Call: Mr. Talbot, Aye; Vice Chair Pacino, Aye; Ms. Bita, Aye; Mr. Stempeck, Aye; and Chair Coulter, Aye. 9. Schedullno April 21, 2022 will be the next Board of Commissioner's Meeting. It was agreed that the Board would not attend the CAB meeting on April 4, 2022. The GM Evaluation and Review will be discussed at the April 21, 2022, meeting. Chair Coulter said that the transformer meeting needs to be held Immediately. Falling to get into the queue now could push back the supply 30 days. Ms. O'Brien said she is checking on Chapter 164 regarding open-ended bids, relative to legality. Chair Coulter reiterated that the RMLD needs to get in line. The factors behind this are out of RMLD's control. There are unprecedented delays affecting RMLD's ability to provide service. The current situation is unheard of in this industry. Ms. O'Brien said RMLD is waiting for the CAB to vote on April 4, as the bid is 1M over budget. Chair Coulter noted that the cost of materials is uncontrollable, when fuel costs go up 200% there is no question that things will be over budget. Discussion ensued on a date to hold the Transformer bid meeting. Once the CAB and Board vote to approve, Ms. O'Brien will bring this supply Issue to the attention of NEPPA and APPA and work towards an aggregated solution. Mr. Jaffarl stated that the RMLD cannot double up the order because it impacts the price. Mr. Jaffari said RMLD has a strategy in place to manage the crisis, and he feels comfortable with the plan. Discussion ensued on developing a motion with a price, contingent on recommendation of the CAB. Mr. Small agreed with the contingent motion and said that Danvers opened the bid In January and awarded the bid prior to supply chain Issues. Regardless, the delivery time was pushed out to May. Danvers also faces an Issue with storage. Mr. Jaffari noted that these prices are locked in 30 days. Vice Chair Pacino asked what the RMLD plans to buy specifically. Mr. Jaffari responded that the Department will be purchasing pad mounted and pole mounted transformers. The Board agreed on a motion and voted as follows: Vice Chair Pacino made a motion, seconded by Mr. Stempeck, that the RMLD Board of Commissioners, contingent on the recommendation of the Citizens' Advisory Board, vote to 12 a, orx Town of Reading Meeting Minutes accept the General Manager's recommendation due to unprecedented and emergency situations, to award BID IFP 2022-10 and IFP 2022-09 for pad mounted and pole mounted transformers from various vendors and distributors at - $2m in accordance with M.G.L.c. 164. Motion Carried: 5:0:0 (5 in favor) Roll Call: Vice Chair Pacino, Aye; Mr. Stempeck, Aye; Mr. Talbot, Aye; Ms. Bita, Aye; Chair Coulter, Aye. 10. GM Goals and Evaluation -Taken out of order Ms. O'Brien asked when the topic of her raise will be discussed. Discussion ensued to schedule a time to address the GM's raise. Mr. Stempeck suggested a separate meeting to give the Board time to look over Ms. O'Brien's evaluation materials and receive guidelines from the Chair. This will allow the Board to form conclusions and make informed recommendations. The agenda item "GM Goals and Evaluation" will be moved to a subsequent meeting. 11. Executive Session Vice Chair Pacino made a motion, seconded by Mr. Stempeck, move that the Board of Commissioners go into Executive Session pursuant to Massachusetts G.L. c.164 section 47D, exemption from public records and open meeting requirements in certain instances, to discuss the deployment of security personnel or devices, or strategies with respect thereto and to consider the purchase, exchange, lease or value of real property If the chair declares that an open meeting may have a detrimental effect on the negotiating position of the public body; and return to regular session, for the sole purpose of adjournment. Note: Roll call vote required. Motion Carried: 5:0:0 (5 in favor) Rall Call: Vice Chair Pacino, Aye; Mr. Stempeck, Aye; Ms. Bita, Aye; Mr. Talbot, Aye; Chair Coulter, Aye. 12. SBL At 10:06 PM Vice Chair Pacino made motion, seconded by Mr. Stempeck, move that the Board of Commissioners adjourn regular session. Motion Carried: 5:0:0 (5 in favor) Roll Call: Vice Chair Pacino, Aye; Mr. Stempeck, Aye; Ms. Bite, Aye; Mr. Talbot, Aye; Chair Coulter, Aye. Documents Used: 2022-03-24 RMLD Board of Commissioners Regular Session Packet Board Packet Attachment 1 "Approval of Board Minutes" (Item 3) Board Packet Attachment 2 "Integrated Resources Report "(Item 5) Board Packet Attachment 3 "Engineering and Operations Report" (Item 7) Board Packet Attachment 4 "Procurement Requests Requiring Board Approval (Item 8) Materials Available but Not Discussed Accounts Payable / Payroll Questions through pay date 02/14/2021 Surplus and Scrap Material Report January 2021 13 O Town of Reading Meeting Minutes +IN(OPoON` A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. Z'31 Aqu*v Philip B Pa mo(Ju 122, 202210:07 EDT Philip B. Pacino, Secretary Pro Tem RMLD Board of Commissioners 14