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HomeMy WebLinkAbout2007-05-21 RMLD Capital Operating Pension and Auditing Subcommittee MinutesReading Municipal Light Department Board pf_Cotitcooners " I Capital Operating Pension and Audit StW-o utt4~ May 21, 2007 ; a ;1 t, t 1 l °=d , r+ Start Time of Regular Session: 7:30 p.m. 21 P 37 55' End Time of Regular Session: 9:25 p.m. Attendees: Sub Committee Members: Messrs. Hahn and Pacino, Ms. O'Neill Commissioners: Ms. Kearns and Mr. Soli RMLD Staff: Messrs. Cameron, Dion, Fournier, and Ms. O'Leary Chairman Hahn called the meeting to order at 7:30 p.m. Mr. Hahn asked Mr. Cameron to start off the meeting. Mr. Cameron turned the presentation over to Mr. Dion, Engineering and Operations Manager at the RMLD. Mr. Dion explained that the RMLD Capital Budget has been reworked this year so that more capital projects are identified, which results in a decrease in Routine Construction. He went on to explain that his presentation would be in five parts 4 kV System Retirement, System Reliability, System Expansion, New Customer Service, and Routine Construction. The 4 kV System Retirements were related to activity that will make decommissioning of the Lynnfield and Reading Substations possible. Mr. Dion explained that the work required over the next few years on the distribution system, will allow the RMLD to decommission the Lynnfield and Reading Sub Stations. Mr. Hahn had a concern relative to the decommissioning costs of the Lynnfield Sub Station being expensed. Mr. Fournier said that he had talked to the auditors about this in which they agreed to expense this because the Department had done in the past with the North Reading Sub Station in 2001. In the reliability section, Mr. Dion outlined the Porcelain Cutout Replacement Project, where over a three- year period the RMLD will have replaced upwards of 2,000 cutouts, which have had a high failure rate over the past several years. The RMLD is also planning to upgrade feeder 4W23 so that it is a full rated 15 WA feeder. Mr. Hahn asked why this had to be done and what work would be required in connection with this project? Mr. Dion also said that there would be work performed in three underground developments related to completing the loop feed design. The underground design in these sub divisions does not satisfy the current RMLD design specifications. Mr. Dion then outlined the System Expansion projects, including the projects in the area of Glen Road, Wilmington and in Reading Center. The substation projects include the Station 4 station transformers, side Disconnect, and circuit switcher replacement. This work will also include outside engineering services for redesign of the substation. The largest portion of this work is the first change out of the station transformers. The transformer will cost about $1.7 million each based on a similar project ongoing at another municipal in Massachusetts. The entire replacement of all three-station transformers could cost $7 million in total. Mr. Hahn asked how the RMLD was going to pay for all this work? Mr. Cameron replied that the RMLD is planning to bond most or all the costs. Mr. Hahn then asked if the RMLD had a financing plan? Mr. Cameron stated that the engineering study will include an estimate of the project the financial plan will be completed, which should occur in this fall.