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HomeMy WebLinkAbout2002-10-24 RMLD Board of Commissioners MinutesReading Municipal Light Board of Commissioners Regular Session 230 Ash Street Reading, MA 01867 October 24, 2002 Start Time of Regular Session: 7:30 p.m. End Time of Regular Session: 10:15 p.m. Attendees: Commissioners: Messrs. Hughes, Ames, Pacino, Herlihy and Soli RMLD Staff: Mr. Cameron, Acting General Manager, Mr. Blomley Mses. Antonio and Gottwald Messrs. Butler, Donahoe and Schibilio CAB: Mr. Corbett Selectmen Liaisons: Mr. Veno Guests: Messrs. Engsminger and Carpenter ECEIVE0 0VIN CLERK A- Di IG, MHSJ. ZOM NM 21 P a: 21 This meeting of the Reading Municipal Light Department (RMLD) Board of Commissioners, October 24 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 7:30 p.m. Mr. Hughes reminded everyone to speak directly into the microphones so the audio is clear. Mr. Hughes then introduced the Board Members, Acting General Manager and Recording Secretary. Report of the Chairman of the Board ` Mr. Hughes acknowledged the camaraderie of RMLD employees this afternoon as they hosted the fourth annual Halloween Party for the service territory. Ad Hoc RMLD Governance Advisory Committee Mr. Hughes updated the Commission on the organizational changes of the RMLD recommended by the Ad Hoc RMLD Governance Advisory Committee at the meeting on October 21, 2002. Mr. Cameron announced his attendance at the October 15`s Ad Hoc RMLD Governance Advisory Committee when the General Managers of the Littleton and Peabody Light Plants were interviewed. Mr. Cameron stated he also attended the October 21" meeting when the Superintendent of the Danvers Light Department as well as the General Manager from the Concord Municipal Light Plant were interviewed. Mr. Cameron informed the Commission of the changes the Ad Hoc RMLD Governance Advisory Committee recommended which included the Reading Board of Selectmen appointing the Reading Municipal Light Board; the RMLB having rate setting authority; the capital and operating budgets going to the Town Meeting for approval; the General Manager being the Town Manager; the accounting operation being part of the Town accounting operation; and no contract for the Superintendent. Mr. Cameron stated these recommendations are not final, as the Committee took a "straw" vote because not all members of the Committee were present. Mr. Cameron stated he asked the Ad Hoc RMLD Governance Advisory Committee how much interaction they had with the outside Towns and stated it there has not been much interaction. Mr. Cameron verified the next meeting of the Ad Hoc RMLD Governance Advisory Committee scheduled for Monday, October 28th, and at that meeting they will finalize their recommendations in order to present them to the Reading Board of Selectmen at the their meeting on Tuesday, October 29th. Mr. Pacino stated when he came on the Board fourteen years ago the Commission, at that time, was primarily concerned with the Reading ratepayers but when 85-121 came along it changed that point of view noting that way of thinking was essentially illegal. Mr. Pacino stated he plans to attend the next Ad Hoc RMLD Governance Advisory Committee meeting next week and will state his concern the Ad Hoc RMLD Governance Advisory Committee could very well be going down the same path. As Mr. Pacino continued he stated the changes of the Ad Hoc RMLD Governance Advisory Committee wants to put into place are clearly violations of the Twenty Year Agreement thus leading to more expense to the Town, i.e., legal expenses. Ad Hoc RMLD Governance Advisory Committee Mr. Veno stated he is unable to attend the Ad Hoc RMLD Governance Advisory Committee meeting next week and stated as a representative of North Reading he would like it noted that the North Reading Selectmen are opposed to making the RMLD Board of Commissioners appointed. Regular Meeting Minutes October 24, 2002 Page Two Ad Hoc RMLD Governance Advisory Committee Mr. Veno commented there is a lot of concern about the Reading Town Manager becoming the RMLD General Manager. In Mr. Veno's opinion, he stated if the Town Manager is the General Manager and the Board is appointed then it will be chaos. Mr. Veno said he has been told by the Ad Hoc RMLD Governance Advisory Committee and other Reading Representatives that it will have no effect on the Twenty Year Agreement, however, the Citizen's Advisory Board who has an attorney on Board, believes it will indeed have an effect. Mr. Ames acknowledged the fact that when the Ad Hoc RMLD Governance Advisory Committee originated they made it clear they did not want input from any past Board member, therefore, he avoided any involvement with the Committee and will continue to honor those wishes. Mr. Ames commented he believes the Citizen's Advisory Board, via the Twenty Year Agreement, has total control over their budget, therefore, the CAB can engage attorneys with the budget which is allocated to them by the RMLD. Mr. Hughes noted there are a series of meetings scheduled next week concerning the future of the RMLD. Mr. Hughes also noted the morale at the RMLD is at an all time low as a result of the news media generated by the Ad Hoc RMLD Governance Advisory Committee, however, the RMLD employees have banded together during the Inspector General situation. Continued, Mr. Hughes stated now they are in fear of employment security and tension within the Department, therefore, encourages all Commissioners attend these meetings next week. Mr. Hughes mentioned the Commission received a list of the upcoming meeting for the next week. General Manager's Search Committee Update Mr. Hughes updated the Commission at the last GM Search Committee meeting on October 17th, stating the search has been narrowed to eight semi-finalist. Mr. Hughes stated the next meeting is scheduled for next Thursday, October 31St, and reminded the Commission if they are interested in attending these meetings they are open public meetings until they enter into Executive Session. Mr. Herlihy suggested the General Manager's Search Committee think about postponing any future meetings of GM Search Committee given the recommendations of the Ad Hoc RMLD Governance Advisory Committee, at least until after the Town Meeting in November. Messrs. Hughes and Pacino stated they will discuss Mr. Herlihy's suggestion with the GM Search Committee. Update on Energy New England (ENE) Member's Meeting, October 16, 2002 Mr. Hughes updated the Commission on the Energy New England (ENE) Member's Meeting he and Commissioner Soli attended last week held at the Taunton Municipal Light Plant. Mr. Hughes stated he has copies for the Commissioners of the packets ENE distributed which include ENE's mission goals and accomplishments. Mr. Pacino stated upon signing the warrant last week he noticed the two Commissioners who attended the ENE meeting did not partake in the dinner provided by ENE, they bought their dinners separately in order to avoid any conflict of interest. Mr. Cameron reiterated his zero tolerance of accepting vendor gifts explaining that although accepting something $50.00 or under may appear okay it could possibly become an issue if it shows a pattern. Mr. Cameron explained gifts are defined as food, travel, entertainment, golf games, etc., and was adamant about not accepting any gifts at all. Discussion ensued. Letter from Roger Lessard, Chairman Citizen's Advisory Board containing two motions Mr. Hughes read the letter from Mr. Lessard noting one motion was to draft and send a letter to the Ad Hoc RMLD Governance Advisory Committee noting the CAB as a whole has not considered nor taken any position on any changes to the fiscal year of RMLD financial reporting or to the Reading Town Meeting review and/or oversight of the RMLD budgets. Mr. Corbett commented when the CAB was reviewing the spread sheet of the options the Ad Hoc RMLD Governance Advisory Committee were considering they had notations that the CAB agreed with two of the items and that was not exactly the case, therefore, the CAB wanted to set the record straight. Mr. Corbett stated a few CAB members thought it may be_a good idea, however, that did not necessarily mean they agree whole heartedly to support those items, nor had the CAB discussed those items in any their sessions. Mr. Engsminger, Chairman of the Ad Hoc RMLD Governance Advisory Committee, stated he did receive the CAB letter and explained they understand the CAB did not totally agree. Mr. Engsminger stated it was just an interpretation of some of the Ad Hoc RMLD Governance Advisory Committee Members that were present at that particular meeting. Regular Meeting Minutes October 24, 2002 Page Three Letter from Roger Lessard, Chairman Citizen's Advisory Board containing two motions Mr. Hughes read the second motion regarding sending a letter to the Boards of Selectmen and the Town Managers/Administrators of Wilmington, North Reading and Lynnfield with copies to the respective Town's State Representatives and RMLD Board of Commissioners expressing the CAB's concern about the options to change the governance at the RMLD that the Ad Hoc RMLD Governance Advisory Committee and the Reading Board of Selectmen appear to be considering seriously. Mr. Corbett commented that the CAB is scheduled to meet on Wednesday, October 30th at the Wilmington Town Hall, 121 Glen Road, Room 19. Mr. Corbett said the invitees include the Board of Selectmen and the Town Managers from the surrounding towns in order to discuss the options being considered since those Towns need to be a part of the process. Selectmen Liaison, Citizen's Advisory Board and Customer Comments Mr. Veno thanked the Department for their prompt action with turning some streetlights back on. Mr. Veno also clarified not all streetlights were turned back on, however, it was due to the North Reading Selectmen voting not to turn them back on, not due to the RMLD. Mr. Veno reminded the residents of North Reading if a streetlight is out, do not assume it has been shut off, the bulb could just be blown out. Mr. Veno stated residents need to check to see if it has an orange cap during the day, if it does not have an orange cap then the bulb was blown out and should be reported for replacement. Mr. Cameron explained the Adopt a Streetlight Program stating this policy is similar to the private streetlight rate. If a customer wants to "adopt" a streetlight, it is approximately $80/light per year and the customers should call Ms. Laurie Cavagnaro at 781- 942-6434. Action Items RMLD Policy 10, Revision 4, RMLD Credit Cards Suggested Motion Mr. Pacino made a motion seconded by Mr. Herlihy to move that the RMLD Board of Commissioners rescind RMLD Policy 10 based on the recommendations of the Policy Subcommittee. Unanimously approved by a show of hands 5:0:0. RMLD Policy 5, Revision 7, Employee, RMLD Board of Commissioners and Citizen's Advisory Board Travel Policy (Overnight/Day Travel) Suggested Motion Mr. Pacino noted a technical correction to this policy stating on the third page, first sentence should stop after the words "the Town of Reading" deleting "which is currently.31 cents per mile." Mr. Pacino made a motion seconded by Mr. Ames to move that the RMLD Board of Commissioners approve RMLD Policy 5, Revision 7, Employee, RMLD Board of Commissioners and Citizen's Advisory Board Travel Policy (Ovemight/Day Travel) based on the recommendations of the Policy Subcommittee and the change recommended by Mr. Pacino. Unanimously approved by a show of hands 5:0:0. RMLD Policy 25, Revision 0, Anonymous Communication Suggested Motion Mr. Hughes questioned the Policy on the last page, under Policy Elements, paragraph three, "the Human Resources Manager will notify Legal Counsel if the complaint pertains to the General Manager." Mr. Hughes recommended that phrase be changed to "the Human Resources Manager will notify the RMLD Board of Commissioners and will notify Legal Counsel for course of action should the complaint pertain to the General Manager." Mr. Pacino made a motion seconded by Mr. Soli to accept the RMLD Board of Commissions approve RMLD Policy 25, Revision 0, Anonymous Communication based on the recommendations of the Policy Subcommittee and the change recommended by Messrs. Hughes and Pacino. Unanimously approved by a show of hands 5:0:0. Acting General Manager's Report RMLD Halloween Party at the RMLD on Thursday, October 24th, from 2:00 p.m. to 5:00 p.m. Mr. Cameron mentioned the RMLD held a Halloween Party, in the Audio Visual _(Spurr)_ Board Room prior, tto this Board - meeting this evening. Mr. Cameron stated there were about eight hundred costumed children who attended the party this afternoon. Regular Meeting Minutes October 24, 2002 Page Four Acting General Manager's Report RMLD Halloween Party at the RMLD on Thursday, October 20, from 2:00 p.m, to 5:00 p.m. Mr. Cameron noted the Halloween party was coordinated by Ms. Gottwald, the RMLD Community Relations Manager, however, there was a huge effort from the rest of the employees as well, some even dressed up with their own costumes. Mr. Cameron said this was the fourth annual Halloween Party showing goodwill within our service territory. Mr. Hughes commented on the Halloween Party stating the good spirit of the employees today as they portrayed community relations is commendable especially in lieu of the news media and the threat of job security, however, there was no detection of that today as they showed what the RMLD means to them and to the community. Energy New England (ENE) August, 2002, Management Report Mr. Cameron updated the Commission on the ENE Management Report of August 2002. Mr. Cameron stated this report is not much different from the July 2002 report; the actual seven months budgeted net profit is negative seventy-one hundred dollars; as far as the wholesale trading is concerned, there are not a lot of opportunities with shrinking trading partners due to the economy and liquidity problems. Mr. Cameron stated the equity grew through 2002 to $1.6 million which means the RMLD's portion of that would be about four hundred thousand dollars (about one hundred thousand dollars less than the initial investment). Mr. Pacino questioned whether this venture continues to be any value to the RMLD and if not, a timetable should be set to determine whether to continue. Mr. Cameron said he discussed this issue with one of the founding members, however, he has not spoken to the other two members and is willing to do so and return back to the Commission with more information at the next Board meeting. Mr. Cameron stated he already reviewed the Operating Agreement and as of now the RMLD has concluded its Service Agreement as far as the energy side goes and the RCS Program was on a three month basis which as of the end of December the RMLD will be terminated. Mr. Herlihy suggested the Department pull out of ENE. Discussion ensued. Mr. Soli requested a detailed agenda item for the next meeting on this issue. Mr. Cameron agreed to provide a detailed agenda item ready at the next meeting. American Public Power Association (APPA) Awards Program, 2003 Mr. Cameron asked the Commission if they have any nominations for the APPA Awards Program; there were none. American Public Power Association (APPA) Nominations and Awards Committee Mr. Cameron announced that APPA is looking for nominations for their Board of Directors if anyone is interested. Unused Commissioner Airline Tickets Mr. Cameron noted that Commissioners Ames and Hughes have airline tickets that were never used and if these are not re-ticketed by December 7'', the RMLD will lose that money. Mr. Cameron explained these tickets were originally purchased for the Legislative Rally last February which neither Commissioner attended. Mr. Cameron suggested re-ticketing for use to attend the this year's Legislative Rally since there are issue being addressed in Washington the Commissioners may find interesting relative to ISO New England. Mr. Cameron also noted if these tickets are re-ticketed and then not used again, they will be lost, however, they will be lost if not re-ticketed anyway. The Commissioners agreed to at least re-ticket with the intention of possibly attending the Legislative Rally in February. RMLD Property Listings (Jim Blomley) Mr. Cameron noted at the last meeting Commissioner Herlihy requested an RMLD property listing and Mr. Blomley put together a memo with an attachment of all the RMLD properties which are clearly marked. Discussion ensued: Mr. Herlihy thanked Messrs. Blomley and Cameron for putting this effort together. Regular Meeting Minutes October 24, 2002 Page Five Letter from the Town of Reading Elder Human Services, Ms. Pamela Brown Ms. Gottwald noted the letter from Ms. Pamela Brown of the Town of Reading Elder Services thanking the Department for inviting the Reading Seniors to a Senior Citizen's Appreciation Day during Public Power Week on October 10, 2002. Acting General Manager's Report Letter from the Town of Reading Elder Human Services, Ms. Pamela Brown Ms. Gottwald informed the Commission there were approximately fifty seniors who attended the drop in brunch and enjoyed the old artifacts from the 1920's and 1930's which included old annual reports which were available to view. Ms. Gottwald stated Mr. Cameron, the Acting General Manager and Commissioners Hughes and Herlihy dropped in as well. Town of Reading Expenses attributable to the Reading Municipal Light Department (RMLD) for Fiscal Year 2003 Mr. Cameron updated the Commission on a letter to Chairman Hughes from the Town Accountant and the Finance Director outlining what the RMLD posed the Town for reimbursable expenses for Fiscal Year 2003 which includes Health Insurance, Life Insurance, Worker's Compensation and it equals $732,124. Mr. Cameron stated Ms. Antonio checked these number for accuracy. Mr. Hughes questioned why the Ex-General Manager's name is listed on page six of the report where it shows the Blue Cross/Blue Shield Groups for the Town of Reading. Mr. Cameron replied he believes the last paycheck of the Ex-General Manager included pre-payment for the month which the report indicates. Mr. Hughes asked for a more definitive answer. Mr. Cameron will resolve the uncertainty and report back to Mr. Hughes. Three transfer letters for the Town of Reading, Town Treasurer for Reading Municipal Light Department. Mr. Pacino expressed his opinion that the transfer letter agenda items need not be on the agenda. Mr. Pacino stated copies of the letters are put into the Commissioners mailboxes and does not need to be further discussed. Mr. Hughes suggested these items be put into a three ring binder for the review of the Commission at their leisure. Discussion ensued with a final decision keep these items as agenda items and add it is "per a vote and include the date of the vote," and not add the letters in the Board books. Mr. Patin stated the Board books are again being delivered, however, it was decided not too long ago that the Board books would be kept in the GM Conference Room and the Commissioners would come in to retrieve them. All Commissioners agreed the Board Books be left in the Conference. Room for their own retrieval. Board Discussion October, 2002, Rate Comparisons Mr. Cameron updated the Commission that an Nstar System Power Contract is dropping out of the RMLD's power supply in November and the Purchase Power Adjustment will probably go up in November. Mr. Cameron explained that will situate RMLD under Massachusetts Electric and closer to Middleton and Peabody. Mr. Cameron also reminded the Commission that with the one time refund in November that will put the RMLD under all other utilities for that one month. Mr. Cameron also notified the Commission that the refund will be a credit in all the customer's bills for November and a press release was put out this week via the Community Relations Manager. Mr. Soli suggested deleting the graphs out of the Rate Comparison Reports, all Commissioners were in agreement. Next Meeting Date Thursday, November 7, 2002. Executive Session At 9:05 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. Regular Meeting Minutes Page Six October 24, 2002 Motion to Adjourn At 10:15 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. Motion to Adjourn Mr. Pacino called for a poll of the vote: Mr. Ames, Aye; Mr. Pacino, Aye; Mr. Soli; Aye and Mr. Herlihy; Aye. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. Mr. Philip B. Pacino Secretary, RMLD Board of Commissioners