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HomeMy WebLinkAbout2006-10-18 RMLD Board of Commissioners MinutesReading Municipal LiLyht Board of Commissioners ReLyular Session 230 Ash Street Reading, MA 01867 October 18, 2006 Start Time of Regular Session: 7:31 p.m. End Time of Regular Session: 10:31 p.m. Attendees: Commissioners: Messrs. Pacino, Soli, Hahn, Mses. Kearns and O'Neill RMLD Staff: Messrs. Cameron, Dion, Fournier, Seldon Mses. Antonio, Cavagnaro and Parenteau CAB: Mr. Carakatsane Chairman Pacino called the meeting to order at 7:31 p.m. Minutes September 20, 2006 Ms. Kearns made a motion seconded by Mr. Soli to approve the Regular Session meeting minutes of September 20, 2006 as presented. Motion carried 5:0:0. Report of the Chairman of the Board Chairman Pacino stated that he will be making the presentation to Subsequent Town Meeting on Monday, November 13 and that the presentation will contain both RMLD highlights and a green power presentation. Selectmen Liaison, Citizens' Advisory Board and Customer Comments Mr. Carakatsane reported that the CAB recommended to the RMLD Board to execute the Braintree Electric Light Department (BELD) contract. Mr. Carakatsane wanted to thank the line crews for restoring a large major outage that happened on Monday night. Mr. Carakatsane said that his area was restored in one hour. Mr. Dion described the outage on Haverhill Street on the North Reading/Reading line Discussion followed. Ms. Cavagnaro said that customers were calling in regarding their bills. Ms. Cavagnaro explained that bills are being sent five to six days later due to a change in meter reading cycles. Report of RMLD Board Subcommittees Mr. Cameron said that the Power Contracts, Rate Setting and Customer Choice Subcommittee will be meeting on Tuesday, October 24, 2006 at 8:30 a.m. Action Items 2007-3,15 KV Aerial Spacer Cable Mr. Dion reported that all the bids the Department has recommended are the lowest qualified bidders. Mr. Dion stated that the recommended bidder took exceptions to the liquidated damages and the Department was willing to accept this because of the short lead-time. Mr. Dion explained that this clause was put in the bids because of the long lead-time with the transformers and non-conformance to the timeframes. Mr. Hahn wanted to know what liquidated damages are being charged? Mr. Dion replied that it is a penalty per day beyond the quoted delivery date. Discussion followed. Regular Session Minutes 2 October 18, 2006 Action Items 2007-3,15 KV Aerial Spacer Cable Mr. Dion said that some of these bids were sent to the cable manufacturer and distributors. Mr. Dion explained that some of the manufacturers bid their cable via local vendors. Mr. Dion said that some of the vendors do not bid because they cannot provide better pricing than those who bid. Mr. Soli made a motion seconded by Ms. Kearns that bid 2007-3 for 15 KV Aerial Spacer Cable be awarded to: Arthur J. Hurley Company for a total cost of $121,080.00 as the lowest qualified bidder on the recommendation of the General Manager. Motion carried 5:0:0. 2007-4,15 KV Copper Power Cable Mr. Dion said that a portion of this purchase will be placed in inventory and will be charged to the operating budget and a portion of this purchase will be charged to specific capital overhead upgrade projects. Mr. Dion explained there are two separate motions because the same vendor is not the lowest qualified bidder. Mr. Soli made a motion seconded by Mr. Hahn that bid 2007-4 for 15 KV Copper Power Cable be awarded to WESCO for a total cost of $223,850.00 as the lowest qualified bidder on the recommendation of the General Manager. Motion carried 5:0:0. Discussion ensued on this bid. Mr. Soli made a motion seconded by Mr. Hahn that bid 2007-4 for 15 KV Copper Power Cable be awarded to Arthur J. Hurley Company for a total cost of $68,370.00 as the lowest qualified bidder on the recommendation of the General Manager. Motion carried 5:0:0. 2007-7, 4/0 Triplex Service Cable Mr. Dion said that this purchase will be placed in inventory and will be charged to the operating budget. Discussion followed on this bid. Mr. Soli made a motion seconded by Mr. Hahn that bid 2007-7 for 4/0 Triplex Service Cable be awarded to Arthur J. Hurley Company for a total cost of $64,750.00 as the lowest qualified bidder on the recommendation of the General Manager. Motion carried 5:0:0. 2007-8, 1/0 AL Power Cable Mr. Soli made a motion seconded by Mr. Hahn that bid 2007-8 for 1/0 AL Power Cable be awarded to WESCO for a total cost of $20,368.00 as the lowest qualified bidder on the recommendation of the General Manager. Motion carried 5:0:0. General Manager's Report Financial Report, July 31, 2006 and August 31, 2006 Mr. Fournier presented the Financial Reports and reported on the Budget Variance report for the first two months of the 2007 Fiscal Year. Discussion ensued. Power Supply Update Ms. Parenteau gave a report on the RMLD's power supply for August, 2006. Ms. O'Neill would like the Department to look at renewable sources of power supply. Regular Session Minutes 3 October 18, 2006 - General Manager's Report Power Supply Update Ms. Parenteau explained when she meets with the Power, Rate Setting and Customer Choice Subcommittee on Tuesday; they will be receiving a strategic plan in terms of how the Department plans to fill the contracts that are going to expire next October. Part of that process will be a RFP because there is a large piece of energy that needs to be replaced and part of that strategy will be diversification. Ms. Parenteau said that renewables can be looked at in two methods depending on which way the Board wishes to proceed. Ms. Parenteau can ask the supplier to ensure that a certain portion of that power is green. Ms. Parenteau said that a second avenue is to contact some developers or partner up with other systems that are willing to sign a long-term contract for renewable resources. Ms. Kearns said that she would like to know the cost of green power for the consumer. Ms. Kearns would like to know what requirements are mandated for investor owned utilities. Mr. Hahn stated that Investor Owned Utilities in Massachusetts are required to have a certain percentage of their power supply from renewable energy sources and they can buy directly from the output of projects such as a windmillibiomass or they can buy REC's. Mr. Hahn said that if they do not meet this mandate for renewable energy then they are penalized on the kilowatt-hour basis. These funds are channeled into a renewable energy fund that encourages renewable projects. Discussion followed. Commercial Customer Survey Ms. Parenteau said that Key Accounts Managers, Michele Benson and Joe Bilicki have been working with Priscilla Gottwald in conjunction with the Center for Research and Public Policy for a commercial customer survey. Ms. Parenteau said that final report will be completed shortly. The findings of survey went well. Update on Green Choice Program Mr. Cameron said that he was on local Reading cable on Monday, October 16 on Ask the Manager, promoting the Green Choice Program. Ms. Cavagnaro said that there are 128 customers who have signed up for the program for 261 blocks. Discussion followed. Ms. O`Neill said that she would like a stamped post card put in with the bills as a means to promote the Green Choice program. Ms. O'Neill stated she would like it possible for customers to sign up for Green Choice online. Mr. Cameron said that he will address Ms. O'Neill's suggestions. Engineering & Operations Monthly Report Mr. Dion reported that on the Capital Projects in progress. Discussion followed. Ms. O'Neill said that the Department is running over in routine construction. Mr. Dion replied that this line item will run higher than budgeted but they are endeavoring to stay under the capital budget by working on reliability. Fiber Optic Opportunity Mr. Dion explained the fiber optic lease opportunity with National Grid Wireless. Discussion ensued. Regular Session Minutes October 18, 2006 4 General Manager's Report Over-Recovery Mr. Cameron said that the RMLD Board requested an analysis of the 2006 Over Recovery. Mr. Cameron stated that his memorandum outlines impacts to and uses of the 2006 Fiscal Year Over Recovery. Discussion followed. Mr. Hahn said prior year refunds were given in the next to last month prior to the year-end. Mr. Hahn said the refund was given in the year it was generated and this refund should not come out of this year's refund because it was generated last year. Mr. Hahn stated that he would like to see real numbers at the Rate Subcommittee meeting on Tuesday regarding projected power supply costs. Mr. Fournier explained that this refund will change the Net Income in the current year. Discussion followed. Mr. Soli made a motion seconded by Ms. Kearns that it is the sense of the RMLD Board of Commissioners to recommend a refund of $1,230,629 and to ask the Citizens' Advisory Board to act upon this sense of RMLD Board expeditiously. Motion carried 5:0:0. Update on Strategic Planning Mr. Cameron said the Board directed him to obtain information on strategic plans. Mr. Cameron explained the memo he supplied to the Board on Strategic Planning. Ms. O'Neill said that American Public Power Association has a great website that provides a lot of useful information which is accessible to all Board member. Ms. ONeill would like the Department to order several publications from APPA, including, Handbook for Public Policy Makers, Electric Utility Basics and It's Your Future Lead It. Another free book to members is Competitive Edge, A Guide to Management Issues and Resources. Chairman Pacino stated that the Strategic Planning Subcommittee will be formed with Mses. Kearns and O'Neill as the members. Plan for Conducting Audits of RMLD physical and data security Mr. Cameron said that the RMLD Board, at its July 19, 2006, requested a plan for conducting analysis of RMLD's physical and data security. Discussion followed, with further detailed discussions to be held in Executive Session. RMLD Halloween Party Thursday, October 26 Mr. Cameron stated that the annual RMLD Halloween Party will be held on Thursday, October 26 from 2:00 to 5:00 p.m. Board Discussion Rate Comparisons, October 2006 Mr. Cameron reported that nothing has changed, with Middleton the only nearby electric utility with lower rates. Board Education Ms. ONeill said that she would like an education component for each meeting for a five to ten minute time span. Ms. ONeill would like to see what the Departments in the RMLD are doing. Chairman Pacino said that the CAB is designed for addressing the concerns of each town the RMLD services. Chairman Pacino has no problem with the Departments providing reports. Regular Session Minutes October 18, 2006 Board Discussion Next Meeting Dates Monday, November 13, 2006, Subsequent Town Meeting Wednesday, November 15, 2006 Wednesday, December 13, 2006 RMLD Board Rotation at Citizens' Advisory Board (CAB) Meetings No date has been set for the next Citizens' Advisory Board meeting. 5 Executive Session (General Manager's Conference Room) At 9:50 p.m. Mr. Soli made a motion seconded by Mr. Hahn that the Board go into Executive Session to discuss strategy with respect to the deployment of security devices, collective bargaining, and to return to Regular Session for the sole purpose of adjournment. Motion carried 5:0:0. Chairman Pacino called for a poll of the vote: Mr. Soli, Aye; Mr. Hahn, Aye; Mr. Pacino, Aye; Ms. Kearns, Aye; and Ms. O'Neill, Aye. Motion carried 5:0:0. Motion to Adjourn At 10:31 p.m. Mr. Soli made a motion seconded by Ms. Kearns to adjourn the Regular Session. Motion carried 5:0:0. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. Robert Soli, Secretary RMLD Board of Commissioners