HomeMy WebLinkAbout1993-01-25 Board of Selectmen Minutes Minutes of the Board of Selectmen Meeting
January 25, 1993
The Board covened at 7 : 30 p.m. in the RMLD Conference Room on
Haven Street. Present were Chairman Dan Ensminger, Secretary
Sally Hoyt, Selectmen Bill Burditt, Eugene Nigro, Town Manager
Peter Hechenbleikner, RMLD Chairman Phil Pacino, RMLD Board Mem-
bers Bill Brown, Allan Ames, Dave Swyter, Bill Hughes, RMLD At-
torney Ken Barner, RMLD General Manager Len Rucker, RMLD
employees Vin Cameron and Paul Carson and members of the Citizens
Advisory Boards from Lynnfield and Wilmington.
The RMLD Chairman introduced the topic of DPU 85-121 which estab-
lished the earnings for the Light Department at 8% of net plant
value vs. 8% of gross plant value. The difference between gross
plant value of $44 million and net plant value of $24 million
makes a difference in the amount of money that's available to
distribute to the Town of Reading as earnings and distribution
and also the funds available for capital improvement for the
RMLD. The RMLD needs approximately $2 . 1 million dollars per
year. Rucker reviewed several possible alternatives for revers-
ing the effects of case 85-121. If it is reversed -it will cause
a rate increase of 4 . 2%. The Citizen Advisory Board has indi-
cated it would not object to such reversal as long as there was a
method of distribution of these funds to the benefit of the en-
tire system. The concensus of the RMLD Board Members was that we
should appeal to DPU to reverse this ruling, and if not success-
ful then we may appeal it to court. Part of this process would
be to establish a cap of $1.9 million on payments to the Town of
Reading, and a difference between current payments to the town
and that cap would be phased in over time so as to avoid a single
large rate increase. The Reading Board of Selectmen may support
this because it provides better stability than the $1.4 million
that we're currently getting and will provide for some growth in
this area. Under this scenario, the routine capital needs of the
RMLD could be met. Extraordinary RMLD needs such as a new sub-
station or a conversion to fiber optics would require bonding by
the Town of Reading. The idea would be to go to the DPU jointly
with all four towns supporting this approach. The concensus was
that the Citizens Advisory Board Members should be polled to find
out whether or not their communities would be willing to attend a
joint meeting with the RMLD and the other communities to discuss
this issue. The Town Manager and the RMLD General Manager will
draft a statement of approval to be acted upon by the Board of
Selectmen.
The Board of Selectmen and the RMLD Board also discussed street
lighting costs. It is possible that with the increase in capital
expenditures by the RMLD, conversion in all four communities to
more efficient street lighting could be done and this could help
reduce local expenses.
The Board of Selectmen and the RMLD Board reviewed the issues
with regard to the Haven Street facility and agreed that a task
force should be established which would include a member of the
RMLD Board, a member of the Board of Selectmen, a member of the
Chamber of Commerce, a member of Town Meeting, and a member of
Minutes of Board of Selectmen Meeting - 1/25/93 - page 2
the Community Planning and Development Commission to evaluate the
reuse and/or sale of this property. The Board of Selectmen will
establish such a committee.
The bill for Community Development Services for the RMLD facility
on Ash Street was discussed. The Town Manager indicated that the
agreement with the RMLD had been that the RMLD would be treated
like any other applicant before the Town and the bill was ren-
dered accordingly. Mr. Hughes expressed concern that the Town
should be doing this work for the RMLD as another department of
Town.
Mr. Sywter suggested that the RMLD might be in a position of
critiquing the community development process and making suggest-
ions for improvement of that process.
On motion by Nigro seconded by Burditt the Board of Selectmen ad-
journed at 9 : 00 p.m. and left the meeting. The motion was ap-
proved by a vote of 4-0-0.
Respectively submitted:
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