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HomeMy WebLinkAbout2008-05-20 RMLD Operating and Capital Budget Pension Legal Services Committee MinutesReading Municipal Light Department (RMLD) Board of Tuesday, May 20, 2008 Cafeteria Start Time: 6:30 P.M. End Time: 8:45 P.M. Attendees: Committee Members: RMLD Board: Staff: ` E D ~i i.. C 4.!iwI9 SS. . 01 P It E. Kearns and P. Pacino R. Soli and M.E. O'Neill V. Cameron, R. Fournier, K. Sullivan, J. Parenteau, P. Price, G. Cavanagh, D. Ahearn, J. Donohoe, B.E. Antonio, P. O'Leary FY09 Capital Budget Ms. Kearns called the meeting to order at 6:30 P.M. and said that she would like to use the same methodology of review on the Capital Budget that the CAB used by having the pertinent staff person explain each project. Prior to beginning the Capital Budget Review, Ms. Kearns asked if there would be any changes to the Operating Revenue as outlined in Mr. Cameron's 2009 Six- Year Plan Memo in the Operating Budget. The figures presently show a total of $95,000,000 with $40,000,000 for Base Revenue and $54,000,000 for Fuel Revenue. Mr. Cameron stated that the revenue estimate could go down. Ms. Kearns asked if the CAB approved the $11,074, 867 FY09 Capital Budget and if the CAB made any changes. Mr. Cameron responded that the CAB approved the FY09 Capital Budget and that no changes were made. Mr. Price explained Projects 1 through 10 and Projects 12 through 16. The following questions arose followed by the response: • How long does wire last? Depending on the type of wire, it lasts a long time. Some wire is replaced to upgrade the voltage in an area. • How are the quarters determined as to when the work will be done? With some projects it has to do with tying it in with other projects such as the Station 4 Project. Others may depend on the telephone company and pole setting issues. + Project #4 is the most expensive project and why is it necessary? This project is necessary to expand the capacity of the Gaw Sub Station by replacing aging transformers. + Most of the projects, are in Reading and Wilmington, why is that? Work in North Reading and Lynnfield has taken place over the past few years. • How does the Department determine the projects? The Engineering Department looks at areas in need of work and load growth, and then prioritizes the projects. • When will the transformers be delivered? Between the end of December 2008 and March 2009. Ms. Ahearn explained Project #17, Meter Purchases. She noted that the new meters are digital. Discussion arose on the ability of the customer to read the meter from inside the home. Ms. Ahearn thought it would be quite expensive with some serious issues. She suggested that more advertising about the Residential Time-of-Use rates should be done. Only 103 customers presently take advantage of the rate. Mr. Donahoe presented Projects #18 through #26. Questions and comments: Concerns were expressed relative to buying a full-size pick up truck (Project #17), particularly because of the cost of fuel. Commissioner Kearns. would not vote for a large pick up to be purchased. Mr. Donahoe stated he researched the full size hybrid trucks, and they presently don't save a great deal and cost more. + Mr. Donahoe was asked if he had looked into the Toyota and Honda products, and he responded he had. • Suggestion was made to move Project #23 to the first quarter. Ms. O'Neill stated she does not like poisoning the pigeons (in the garage) and would like the Department to look into alternatives, i.e., spike strips. Concern for the wetlands was raised regarding Project #24, Grade and Asphalt the pole yard at Station 3. It was stated that the work will be done outside the wetlands buffer zone and the grading will be done to protect the wetlands. + There is a correction in Project 26: 20 office chairs will be purchased not 40. Mr. Fournier explained Projects #27 and #28. Questions and comments: Concern arose relative to the main building becoming wireless noting the issues TJ Maxx Company had. It's the Department's understanding that wireless is completely encrypted. • It was suggested that Mark Uvanni, MIS Director, attend the next executive session RMLB meeting. Ms. O'Neill asked for an outline of how the capital budget will be funded. Mr. Fournier responded as follows: $6.1 M from the Operating Fund $3.0 M from the Depreciation Fund $2.0 M from the Construction Fund Motion was made by Mr. Pacino and seconded by Ms. Kearns to approve the First Draft of the FY 09 Capital Budget as presented. Motion carried 2:0:0.