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HomeMy WebLinkAbout2002-12-01 RMLD Board of Commissioners MinutesReading Municipal Light Board of Commissioners Regular Session 230 Ash Street , Reading, MA 01867 ; - V ED PWN CLERK December 19, 2002 . DINU, MASS. Start Time of Regular Session: 7:40 p.m. JA"~ 10 P 12: 2 tJ End Time of Regular Session: 9:45 p.m. Attendees: Commissioners: Messrs. Hughes, Pacino, Ames, and Herlihy RMLD Staff. Mr. Cameron, Acting General Manager, Messrs. Blomley, Fournier, Owen and Uvanni Mses. Cavagnaro, Gottwald and Blomley CAB: Messrs. Norton Guests: Ms. Amy Corriveau, CDM This meeting of the Reading Municipal Light Department (RMLD) Board of Commissioners, December 19'h, is being broadcast live at the RMLD's office at 230 Ash Street, Reading, MA. Live broadcasts are available only in Reading due to technology constraints. This meeting is being video taped for distribution to the community television stations in North Reading, Wilmington and Lynnfield. Chairman Hughes called the meeting to order at 7:40 p.m. On behalf of the RMLD Board of Commissioners, the Citizen's Advisory Board (CAB) and employees of the RMLD, Chairman Hughes wished a Happy Holiday greeting to all the four communities; Reading, North Reading, Wilmington and Lynnfield. Mr. Hughes stated it has been a very challenging year for the Department and if not for the great team effort on the part of the above mentioned the Department could not have maintained the one hundred percent service to the rate payers. Mr. Hughes continued, the new year brings more challenges to the Department. Report of the Chairman of the Board Mr. Hughes announced the Capital and Operating Budget Subcommittee met prior to this meeting in the temporary Transmission and Distribution Conference Room. Mr. Hughes noted the Capital and Operating Budget Subcommittee approved Draft Two of the Capital Budget. Citizen's Advisory Board (CAB) Mr. Hughes read the following letter from Mr. Roger Lessard, Chairman of the CAB: Dear Mr. Hughes: The Citizen's Advisory Board (CAB) at its meeting held on Wednesday, December 18, 2002, approved the following motion unanimously: Move that the CAB recommend to the RMLD Board of Commissioners, the 'acceptance of the 2003 Capital Budget, Draft Two, dated 12/12/02. Any additional changes are to be submitted to the CAB for review and recommendation. Mr. Hughes read another written motion submitted the CAB: Move that the CAB recommend that the RMLD look to not renew any non-RMLD Streetlight contracts and attempt to terminate these contacts at the earliest, financially feasible, and practical point. Motion carried: 4:0:0. Mr. Stevenin was not present. Mr. Pacino asked the Acting General Manager to discuss the Streetlight situation and where it stands at the present time. Mr. Cameron stated the RMLD has contracts with the Towns and/or Cities of. Haverhill, Arlington, Winchester, Brookline, and Framingham as well as having a time and materials agreement with Lexington. Mr. Cameron stated the Haverhill contract is due to expire_ in 2003- and the remainder of the contracts are due to expire in 2004 with option years Mr. Cameron is exploring what the "option years" actually mean as far as termination rights. Regular Session Minutes Page Two December 19, 2002 Report of the Chairman of the Board Mr. Cameron stated he intends on honoring all the current contracts and will continue to run the streetlight program as an efficient operation in order to mitigate losses. Mr. Cameron noted the net operating losses are now up to approximately $300,000 since 2000. Mr. Cameron also noted there is not a lot of interest for anyone taking over those contacts because they were bid at such a low price. Discussion ensued relative to the streetlight contracts and the assignment clauses within those contracts. Mr. Hughes asked about the letter the Department received from the Attorney General's Office relative to the Prevailing Wage Act. Mr. Cameron noted he responded to this letter approximately two months ago and has not received any feedback, as yet. Mr. Ames made a motion seconded by Mr. Pacino of the acknowledgement and receipt of the CAB's recommendation to not renew any RMLD Outside Streetlighting Contracts. Motion carried by a show of hands: 4:0:0. Action Item CIBFMS Mr. Cameron explained the RMLD has gone through an extensive process over the last two and one-half years in order to select and implement a new computer system noting the current computer system, the customer information billing system, is not a user friendly system and has a lot of limitations relative to electric rate changes. In August 2000, the Department searched for a consultant and chose Camp, Dresser, and McKee, Inc. (CDM) to assist the RMLD in the selection process and the implementation of a new computer system. Mr. Cameron continued stating after extensive research the Core Team is recommending Cogsdale as the successful vendor. Mr. Cameron informed the Commission that the Capital Budget for this item is two million six hundred and thirty thousand dollars which was included in the 2002 Capital Budget but has also been included in the 2003 Capital Budget since it is so close to the new year although through negotiations, the estimate has been cut down to one million five hundred two thousand nine hundred and eight dollars. Mr. Cameron explained the Cogsdale contract is only four hundred and sixty-one thousand of that amount, the CDM's amount is four hundred seventeen thousand kdollars for consulting assistance. RMLD capitalized labor is six hundred one thousand five hundred dollars. Hardware is approximately fifty-two thousand dollars with a contingency of about one hundred thousand dollars. Mr. Cameron noted the process used for this project has been well thought out. The Cogsdale contract proposal has been reviewed by a legal firm, This project was presented to the Board of Commissioners in August of 2002, as well as the CAB. Mr. Cameron stated the CAB has accepted this project as well as the entire Capital Budget and the RMLD Board of Commissioner's Capital and Operating Subcommittee recommends this Capital Budget draft to the Board that also includes this project. Discussion ensued with a brief question and answer period. Ms. Amy Corriveau from CDM stated her review of Cogsdale's financial statement and confirmed their financial stability. This is partly because of the agreement they have with their former company, Aquillium Software, and the fact the staff that created the product from Aquillium is now with Cogsdale. Ms. Corriveau also stated when they changed companies, Cogsdale owned all of the support and maintenance contracts for all of the installs for the former Aquillium product. Mr. Owen stated the RMLD staff also reviewed the Cogsdale balance sheet making sure they not only have the finanical resources but the personnel resources as well. Mr. Owen confirmed Ms. Corriveau's statement that Cogsdale acquired their personnel resources from Aguillium. Mr. Owen also stated Cogsdale has Microsoft through the Great Plains module in the software, backing them in their endeavors. Mr. Owen has spoken with Microsoft relative to the partnership agreement with Cogsdale, and Microsoft also reinforced Cogsdale viability. Discussion ensued. Mr. Ames suggested the motion include the Core Team names. Mr. Pacino made a motion seconded by Mr. Ames to move that RFP-2001-13-1-Customer Information Billing Financial Management System be awarded to Cogsdale Corporation asthe lowest qualified bidder for a-total of $461,080.00 on the ;recommendation of the Acting General Manager, Camp Dresser & McKee, Inc. and RMLD Core Team which include Diedre Ahearn, Joseph Bilicki, Donna Blomley, Loretta Cavagnaro, Anna Ciarlone, Robert Fournier, Stephen Kazanjian, Craig Owen, William Seldon, Laurie Ann Sylvia and Mark Uvanni. Motion 4:0:0 by a show of hands. Regular Meeting Minutes December 19, 2002 Page Three Action Item `CIBFMS < 'Mr. Herlihy questioned training for the new system stating it indicates in the deliverables the contractor will train the RMLD systems manager and the RMLD systems manager will be responsible for training all the other employees. Mr. Owen responded to Mr. Herlihy's question by stating that a training plan will be developed consisting of training the systems manager and individual training for each department's representative. Mr. John Norton made a comment on behalf of the CAB stating the CAB spent two full meetings over the past two weeks reviewing this particular project. Mr. Norton complimented the Core Team, Acting General Manager and CDM for their extensive work on this project and their invaluable input to the CAB questions. Mr. Pacino questioned the details of the $250,000 consultant fee. Mr. Cameron stated the CDM consulting fees are included in the package as $417,500 and stated Mr. Van Magness pointed out there is approximately $250,000 for one person from CDM working fulltime at the RMLD for one year. Mr. Cameron noted that unit cost comes out to be about $122.00/hour which is not a lot for a consultant. Mr. Cameron noted total estimate is high because it has a contingency just in case there are problems with the implementation. Mr. Cameron also noted the cost for this implementation was initially $219,000 but it was a base line estimate with the anticipation of an easy implementation. Mr. Cameron noted the total amount of $417,000 may not be needed, however, it was included as a precaution. Mr. Hughes thanked and congratulated the Core Team and all those involved in making the project a success. Mr. Cameron stated a lot of responsibility has been put upon the Core Team during this process and with the help of CDM this project worked well. Mr. Cameron thanked the Core Team and complimented James Blomley for keeping this process going despite the events of the past year. 15Kv Aerial Cable Bid #2002-4 Mr. Pacino made a motion seconded by Mr. Ames to move that bid 2002-4 for 15Kv Aerial Cable be awarded to Okonite for a total cost of $325,275.00 as the lowest qualified bidder on the recommendation of the Acting General - Manager. Motion approved by a show of hands: 4:0:0. Brief discussion ensued relative to the history of the awarded bidder, Okonite. Acting General Manager's Report , American Public Power Association (APPA) Legislative Rally February 9th to February 12th' Washington, DC Mr. Cameron informed the Board there are several issues involved at the federal level that will be discussed during this legislative rally February 91h through February 12th. Mr. Cameron noted one of the biggest issues has to do with standard market design that the FERC is in the process of studying. Mr. Cameron noted this is a good rally to attend and proposed that he and Mr. Hughes attend the Rally with the total cost of this trip would being $1,129.00. The consensus of the Board is that Messrs. Cameron and Hughes attend the Rally. Acting General Manager's Report The Boston Globe Article, Sunday, December 15, 2002 relative to RMLD. Mr. Cameron informed the Board of an article in the Northwest Weekly section of The Sunday Boston Globe on December 15, 2002 relative to the RMLD budgets. Mr. Cameron explained in the article it stated the RMLD Budgets will be approved by FinCom and Reading Town Meeting, however, that was an misinterpretation. The RMLD budgets are approved by the CAB and the RMLD Board of Commissioners. Protest of Bid ITB 2002-7 "Hourly Rates for Line Equipment and Professional Manpower" Mr. Cameron informed the Board that a bid protest was sent as follows: Mr. Thomas Halpin, President of Halpin Line Construction, requests that the Fair Labor Division investigate 12-4-02, bidswere submitted for the Line Construction Work on the Reading Municipal Light System. Extensive discussion ensued. Regular Session Minutes Page Four December 19, 2002 Board Discussion RMLD Representative for the Town of Reading Auditor Subcommittee Mr. Cameron updated the Commission on his actions relative to this issue stating he contacted Ms. Cathy Martin from the Town Audit Committee. Mr. Cameron stated he explained to Ms. Martin the RMLD's views on having the Town Auditor audit the RMLD, as well as moving the fiscal year to coincide with the Town's fiscal year. Mr. Cameron also explained to Ms. Martin that on November 71h, the RMLD Board of Commissioners made a motion to go to the Town's fiscal year date with some caveats regarding reporting, etc. Mr. Cameron told Ms. Martin the Board still has some issues to resolve despite Mr. Fournier's attempt to clarify. Mr. Cameron also told Ms. Martin that even if the RMLD only uses the Town's auditor, the RMLD still needs to have a representative on the Audit Committee, therefore, the RMLD Board of Commissioners will select one of its members. In addition, Mr. Cameron stated on January 9`h, he would bring his recommendation to the Board as far as using the Town's Auditor and moving to the Town's fiscal year. Ms. Martin agreed with that time frame. Mr. Cameron then asked the Board which of their members do they select to sit on the Audit Committee. Mr. Hughes asked Mr. Pacino to sit on the Audit Committee to represent the RMLD. With all the other Commissioners in agreement, Mr. Pacino accepted this role. Mr. Cameron will call Ms. Martin and inform her that Mr. Pacino will represent RMLD on the Audit Committee. Accounts Payable Mr. Cameron stated that Ms. Gottwald, Community Relations Manager, sent him a requisition for $200.00 to pay for advertising banner to put on the side of the trolley for the Reading/North Reading Chamber of Commerce, which he approved. Mr. Cameron also stated Ms. Gottwald included an explanation on the second page of the bill why she feels this fee falls under the RMLD membership to community organizations. Mr. Soli did not agree with the payment and therefore, did not want to sign the warrant for an out of policy item relative to the sponsorship of the Christmas lighting. Mr. Cameron suggested to Mr. Soli rather than holding up the rest of the warrants if he go ahead and sign the warrant. Mr. Cameron would re-deposit the check and add this item to the payables for the next warrant for signature, which is what was done. Mr. Cameron then informed the Commissioner that Mr. Soli is on vacation for the next few weeks and Mr. Pacino will be signing the warrants for the week in question anyway. Discussion ensued. Annualized Rates December 2002 Mr. Cameron reviewed the annualized rates for December, 2002, noting under residential the RMLD is now 6.6-7.6 percent above Peabody and Middleton, however, below all other utilities. The Residential Tune of Use rate is 8.83 cents per Kwh with the only utility lower than RMLD is Middleton; and the RMLD has the lowest rate per the Commercial and Industrial Time of Use. Mr. Cameron noted his goal has been to get the rates down and they seem to moving in the right direction. Next Meeting Dates Thursday, January 9`h' Other Items Mr. Cameron reminded the Commission that Mr. John Coyle will be in the area during the week of January 20th and asked the Board to reschedule the second meeting in January from Thursday, January 23rd meeting to possibly Wednesday, January 22nd in order to accommodate Mr. Coyle as a guest. Mr. Cameron will return to the Board after he confirms the date with Mr. Coyle. Mr. Herlihy suggesting inviting the FinCom and the Reading Selectmen to this meeting. Mr. Pacino suggested notifying the Town Managers of the four towns as well. Mr. Cameron stated he will notify the CAB of this meeting and they can notify the Town Managers Executive Session Motion At 9:20 p.m., Mr. Pacino made a motion seconded by Mr. Ames to enter into Executive Session to discuss strategy with respect to litigation and return to the Regular Session for the sole purpose of adjourning. Motion carried by a show of hands: 4:0:0. Regular Session Minutes Page Five December 19, 2002 Motion to Adjourn At 9:45 p.m., Mr. Pacino made a motion seconded by Mr. Ames to adjourn the Regular Session. Motion carried by a show of hands 4:0:0. Mr. Pacino called for a poll of the vote: Mr. Hughes, Aye; Mr. Ames, Aye; Mr. Pacino, Aye; and Mr. Herlihy; Aye. A true copy of the RMLD Board of Comrissioners minutes as approved by a majority of the Commission. Philip B. Pacino, Secretary RMLD Board of Commissioners