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HomeMy WebLinkAbout2005-01-19 RMLD Board of Commissioners Minutes. 6U, Reading Municipal Light Board of Commissioners Regular Session 230 Ash Street Reading, MA 01867 January 19, 2005 ' . Start Time of Regular Session: 7:42 p.m. End Time of Regular Session: 9:50 p.m. - - , ~i tY Attendees: 41 cn ; ,K Commissioners: Pacino, Soli, *Herlihy and Kearns ' RMLD Staff: Messrs. Cameron, and Fournier CAB: Mr. Van Magness Liaisons: Mr. Bolger Chairman Pacino called the meeting to order at 7:42 p.m. *Commissioner Herlihy arrived at 7:50 p.m. This meeting of the Reading Municipal Light Department (RMLD) Board of Commissioners January 19, 2005 is being broadcast 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. Minutes October 28 Mr. Soli made a motion seconded by Ms. Kearns to approve the Regular Session meeting minutes of October 28, 2004 with the changes presented. Motion carried 3:0:0. Commissioner Herlihy was not present for the vote. November 10 Mr. Soli made a motion seconded by Ms. Kearns to approve the Regular Session meeting minutes of November 10, 2004 with the changes presented. Motion carried 3:0:0. Commissioner Herlihy was not present for the vote. Report of the Chairman of the Board Resignation of RMLD Commissioner, Secretary, Daniel A. Ensminger E-Mail from RMLD Commissioner, Secretary, Daniel A. Ensminger. Mr. Pacino stated the Board is in receipt of an e-mail from Commissioner Ensminger stating that he has resigned his position. Mr. Pacino noted Mr. Ensminger had served as Secretary of the Board. Mr. Pacino pointed out that in the e-mail Mr. Ensminger thanked the Board for its service. Mr. Pacino mentioned Mr. Ensminger resigned at this point in order to allow someone to run for this position during the regular Annual Town Election. This creates a one-year term open on this Board for an elected position. Mr. Pacino did thank Mr. Ensminger personally via e-mail for his service on this Board as well as on the Ad Hoc Committee. Mr. Cameron stated he also sent an e-mail back to Commissioner Ensminger. Mr. Cameron was looking forward to working with him in the future and it is unfortunate that he decided not to stay on the Board. Mr. Cameron pointed out he did state that he hopes his replacement would have his knowledge and expertise because it was invaluable. - - Regular Session Meeting Minutes -2- January 19, 2005 Report of the Chairman of the Board Resignation of RMLD Commissioner, Secretary, Daniel A. Ensminger E-Mail from RMLD Commissioner, Secretary, Daniel A. Ensminger. Mr. Van Magness had a question because Commissioner Ensminger did resign and the ballot for the Town is not prepared at this point in time, he is assuming that term will be a separate line item on the ballot whether someone takes out papers or not. Quite candidly, if there are no papers taken out based on that assumption, can a write in candidate go forward on that? Mr. Cameron replied the public has until February 15, as explained to him, to take out papers to run against any one of the Commissioners. Mr. Cameron stated anyone taking out papers for that position would have to make sure they specify taking it out for the one-year term. Mr. Van Magness pointed out that if someone does not take out papers it will show on the ballot as a blank position. Mr. Van Magness stated that the people could in fact write in someone. Mr. Van Magness emphasized you could conceivably have someone running for Commissioner or winning Commissioner with a very low number of votes. It is a significant risk for someone coming on. Mr. Cameron replied it is the hope there will be one or more individuals taking out papers for that position. Ms. Kearns stated she does not agree with the analysis. Ms. Kearns thinks what would happen is if the position is blank it gives the Board the power to appoint. Mr. Pacino explained the process. Mr. Pacino stated as it currently stands an individual would have to take out papers with fifty approved signatures in order to quality to be on the ballot. Mr. Pacino then clarified if no one brings forward the required approved fifty signatures as Mr. Van Magness previous stated, the line would appear blank on the ballot. Then there could potentially be write in votes. The Town Clerk would have to recognize the write in votes, providing they were legitimate. Mr. Pacino pointed out that this is an issue that came out on the Charter Review Committee. There was discussion as to the minimum number of write-ins people should need to get. Mr. Pacino noted discussion revolved around if there was an elected position (Board or Committee), then fifty signatures is required, whereas for Town Meeting the recommendation was a minimum of ten signatures. There was a lot of disagreement on what the correct number should be. The consensus was to leave it be because it is a ruling that was a change beyond what the Committee was set up to do. Mr. Pacino stated it is very possible that someone could get on this Board with two write ins. Mr. Pacino pointed that Commissioner Grauper, who served for four years, was the last write in candidate to serve on this Board twenty-five years ago. Mr. Pacino stated Commissioner Herlihy will be Secretary Pro Tem. RMLD Board of Commissioners Subcommittees The Subcommittees served by former RMLD Commissioner Ensminger need to be filled. Mr. Pacino stated the Subcommittees that former Commissioner Ensminger has vacated need to be filled. Mr. Pacino commented that Mr. Ensminger was a signer of the Account Payables. Mr. Cameron pointed out that the following Subcommittees require replacements: General Manager Contract, Power and Rate Setting and Account Payables. Mr. Cameron also added the CAB/Board Subcommittee can remain vacant until after the election, but the Accounting Manager Subcommittee needs to be filled. Mr. Pacino stated the following Commissioners will replace the vacancies: Mr. Herlihy will step up as the signer of Account Payables with Mr. Soli being the sole back up. Mr. Pacino inquired of Mr. Cameron if anything will be corning in before the election in the area of the power contracts before the election in April? Mr. Cameron replied no, just the General Manager's Contract Subcommittee. Mr. Pacino will serve on the General Manager's Contract Subcommittee. Mr. Pacino inquired of Mr. Cameron relative to the CAB/Board Subcommittee and the payment to the Town do these need to be filled? Regular Session Meeting Minutes January 19, 2005 -3- Report of the Chairman of the Board RMLD Board of Commissioners Subcommittees The Subcommittees served by former RMLD Commissioner Ensminger need to be filled. Mr. Cameron replied the calculation on the Town of Reading payment is performed in April and it can wait until after the election. Mr. Pacino added the only other vacancy is the Accounting Manager Subcommittee. Ms. Kearns volunteered to serve on the Accounting Manager Subcommittee. Mr. Herlihy inquired on the status of the 30B Subcommittee. Can this be disbanded, is a motion required, and should it be kept on the books? Mr. Pacino replied it can be disbanded. Mr. Pacino explained that basically the last change was by the RMLD with respect to the Town Charter. Therefore there is no need for this Subcommittee. This will be deleted from the future Subcommittee listing. T-Shirt Contest Award Recipients This reception was held prior to the RMLD Board meeting. Ms. Kearns thanked the RMLD team for putting together a great program, which had the T-Shirts of the winners beautifully framed on a large colored coordinated cardboard sheet depending on the placing of the winners. Ms. Kearns stated that each T-Shirt was shown to the public and a picture of each winner was taken. Ms. Kearns added that the parents of the winners also had their pictures taken. Ms. Kearns thanked Ms. Gottwald and Ms. Maillett for all their hard work and a great program. Ms. Kearns stated the messages on the T-Shirt are ones that everyone should follow such as "Do Not Step on the Wires, Don't Get Near Water if you have a Wire, Do Not Put a Plug in the Wrong Place." Ms. Kearns pointed out that the children were marvelous with the creativity in the posters. Ms. Kearns explained there is a calendar, which contains the winners on it and they are available at the RMLD at no charge. Ms. Kearns commented there were 1,200 persons who received a T-Shirt to draw some sort of description with 12 winners. Ms. Kearns stated it is a great testament to the 12 winners. Mr. Pacino congratulated Ms. Kearns on a fantastic job presenting these awards. Mr. Cameron wanted to thank Priscilla Gottwald, Community Relations Manager and Bobbi Maillet, Priscilla's Assistant, for all their hard work in putting the T-Shirt Contest together. He also said that he feels this contest is an educational tool and that if one life is saved educating these children against the dangers of electricity, then it is all worth it. General Manager's Report Northeast Public Power Association NEPPA Service Award Presented by Pat Hyland, Director NEPPA RMLD Customer Service Manager Laurie Cavagnaro is the recipient of this award. Mr. Cameron stated that Pat Hyland is the Executive Director of Northeast Public Power Association (NEPPA) and is here this evening to bestow an award on the Customer Service Manager, Laurie Cavagnaro. Mr. Hyland wanted to take a few minutes to thank someone who is very special to NEPPA, as well as to thank Mr. Cameron and everyone involved for allowing her to spend as much time and effort for the last six years or more. Mr. Hyland explained for the last six years, NEPPA, largely through the leadership of Laurie Cavagnaro and a small group of her peers in the public power community has put together a very broad and diverse array of Customer Service training programs for employees within the member utilities of NEPPA. Mr. Hyland stated this happened six years ago when Laurie and a couple of her colleagues came to him and suggested that NEPPA could be doing more in the area of training Customer Service professionals. Mr. Hyland pointed out this type of training had been traditionally performed for Lineworkers, Managers and Administrative staff. Mr. Hyland was in agreement that more should be done in that regard. Mr. Hyland stated the Board of Directors formed a permanent standing committee of the association called the Customer Service Committee. - - - Regular Session Meeting Minutes -4- January 19, 2005 General Manager's Report Northeast Public Power Association NEPPA Service Award Presented by Pat Hyland, Director NEPPA RMLD Customer Service Manager Laurie Cavagnaro is the recipient of this award. Mr. Hyland pointed out that Laurie was elected unanimously as the first Chairperson of this Committee. In that period of time, this Committee has been one of the outstanding Committees at NEPPA. They bring energy and dedication to the purpose, for which they were formed and a lot of creative "outside the box" thinking to serve Customer Service personnel. This Committee has had an Annual Conference for the past five years unlike the other Committees at NEPPA, in lieu of training inside they have gone to outside locations and businesses that have excellent Customer Service programs. Mr. Hyland explained some of the locations they have gone are Yankee Candle and Jordan's Furniture, which they have used as venues as sites for the conferences and to have people speak about their Customer Service programs. Mr. Hyland stated they have had representatives from LL Bean, Sam's Club and The Registry of Motor Vehicles for the Commonwealth of Massachusetts. Mr. Hyland noted there were roundtables as well as training and educational programs. Mr. Hyland stated they are a great group of people and could not have pulled this off without Laurie's leadership over the last six years. Mr. Hyland pointed out the award was going to be made earlier this year, but due to a conflict in which Laurie had health related issues it could not be given at the NEPPA Annual Conference. Mr. Hyland gave Laurie the award, in which it states, "With Appreciation, the NEPPA Customer Service Award to Laurie Cavagnaro for her distinguished service as Chairman of the NEPPA Customer Service Committee." Mr. Hyland noted, on behalf of NEPPA, he thanked her for her leadership. Ms. Cavagnaro thanked Mr. Hyland. Ms. Cavagnaro was honored to receive this award. Ms. Cavagnaro stated what got her going on this was the people who work for her, who represent the Board and the General Manager. Ms. Cavagnaro pointed out they are talking to people on the phones every day. Ms. Cavagaro stated that Mr. Cameron speaks about the pulse of the company and she feels that Customer Service people are the pulse. If it is a good impression, it goes a long way. If it is a bad impression, it also goes a long way as well. Ms. Cavagnaro commented her staff was eager to meet with other utilities in the area. Ms. Cavagnaro noted that the RMLD is a municipal and what is done here is different than the IOU's especially in terms of Customer Service. Ms. Cavagnaro noted, the smaller municipals like the exposure provided by belonging to this group. Ms. Cavagnaro commented the conferences are wonderful and welcomes Board members to attend. Ms. Cavagnaro is proud of the roundtables. They go to different utilities and vice versa. The RMLD is the biggest utility. Ms. Cavagnaro stated every time Customer Service employees attend such conferences it affords them fresh ideas and insight, which they bring back with them. Ms. Cavagnaro pointed out there are things that have been changed in Customer Service because of what has been learned through other utilities. It has been a great experience. Ms. Cavagnaro wanted to thank Mr. Hyland, because if it were not for NEPPA, they would not be able to get in touch with everyone involved. Ms. Cavagnaro explained they have conference calls so they do not always have to go offsite. Ms. Cavagnaro stated they have the best Customer Service employees of any of the utilities and the other utilities agree. They have been mentored by the RMLD. Ms. Cavagnaro thanked the Board for having her here as well as Mr. Hyland. Mr. Cameron thanked Mr. Hyland for recognizing Ms. Cavagnaro. Mr. Cameron thanked Ms. Cavagnaro for all her work with NEPPA and for her leadership in Customer Service. Mr. Cameron stated she has done a splendid job and sometimes it is a thankless job. The fact of the matter is they are right out in front talking to the customers, taking the payments and solving the problems. Mr. Cameron stated Ms. Cavagnaro does an excellent job of leading that department. Mr. Cameron pointed out this is another example of how joint action is good for the operations of the RMLD. There have been comments by Board members in the past of how effective meetings are at NEPPA and APPA Conferences. This is another example of how Ms. Cavagnaro's leadership in Customer Service has been good and they have also learned through the NEPPA and APPA experiences. Mr. Cameron pointed out you cannot put a price on networking. There is always an opportunity to learn. It something you always have to keep in mind when you get into a situation where you can have the opportunity to have representation on such Committees. Regular Session Meeting Minutes -6- January 19, 2005 General Manager's Report RMLD Accounting/Business Manager Position Mr. Cameron commented outside of that, he does not believe the Accounting Services Manager had a lot of other duties that were new to the Department. The other duties and responsibilities that probably would be performed by someone of this level, are being performed in the Accounting Department by other positions or by Mr. Fournier himself. Mr. Pacino clarified that basically the way this would be working right now is that the Board would appoint the Accounting Services/Business Manager. The issue the Ad Hoc Committee brought up was that the Accounting Manager may have been blocked from coming to the Board with concerns. Mr. Pacino noted by doing this it opens the way for the Accounting/Business Manager to report any irregularities. On a day-to-day basis the position is still run by the General Manager. It is the same way with the Town of Reading on a day-to-day basis. Mr. Pacino added it is the way it is running now and the Board would not be changing anything that is in place at this point. Mr. Soli stated in the past, there have been a couple of times when the General Manager and the Accounting Manager could not quite agree which way an Expense Report should go. In those couple of cases already, they came to the Board, then the Board came to a resolution. They were small items, but nonetheless that is something that has taken place. Mr. Soli noted the Accounting Manager Subcommittee meets quarterly or more often if the Accounting Manager thinks there is some issue that needs to be taken up. Not only is it a good way for the Board to learn about information, but also from meeting with the Town Accountant. An example of this is the advance information about what was going to happen with the health insurance costs next year. Mr. Soli thinks it is working pretty well. Ms. Kearns stated she is a little troubled about the employment issue.. Ms. Kearns pointed out the resolution passed by the Town says the Board has to appoint the person, not employ the person. Ms. Kearns' concern is that she thinks what is being created is a joint employment relationship. The Board is the employer and Mr. Cameron is the employer as well as the RMLD. Ms. Kearns is uncertain if there has been any opinion issued by the Town or RMLD's legal counsel as to whether or not the RMLD, as an entity, has the authority to hire individuals. Ms. Kearns has no problem appointing an individual. After the appointment, the RMLD hires him or her. She does not have an answer. She is raising a question. Mr. Van Magness stated this issue has been a concern, in terms of the reporting of this position that he has had for some time. Mr. Van Magness wanted to publicly state that he commends the General Manager for his leadership in resolving this issue with the solution that he has come forth with tonight. Under the circumstances of the amalgamated position, that is the best solution. Mr. Van Magness commends Mr. Cameron for stepping up and doing that. It is huge. Mr. Van Magness was prepared for a lot of discussion on this tonight that he does not have to get into, which is terrific. However, one of the things that caught his eye, when looking at the data for tonight's meeting, is the position content description of the Accounting/Business Manager. Mr. Van Magness looked at this in terms of the senior level responsibilities and what are the inherent accountability issues that this person has from a position standpoint. It occurred to him that there is an opportunity in this document to make some significant strengthening should the Board desire. Mr. Van Magness passed out his recommendations to the job content description. Mr. Van Magness asked the Board to seriously consider the inclusion of some if not all in the final document. Mr. Van Magness stated in terms of minimum qualifications it would appear to him to include words to the effect that "this position requires specific knowledge of accounting and auditing practices, processes and procedures." Mr. Van Magness pointed out that did he find in this document content that is an essential knowledge item from a minimal qualification standpoint. Mr. Van Magness stated we are talking about a very responsible position in the Business Manager/Accounting Manager. As Mr. Van Magness looks at it, 80-85% of the responsibilities in the accounting and financial will be in this end of it. From an experience standpoint, they need to look at a person that has a minimum of five years prior accounting or auditing experience, with desired experience as a CPA or prior - - demonstrated- ability as a senior-level position in accounting or auditing of a municipal entity or electric utility. Regular Session Meeting Minutes January 19, 2005 -5- General Manager's Report Northeast Public Power Association NEPPA Service Award Presented by Pat Hyland, Director NEPPA RMLD Customer Service Manager Laurie Cavagnaro is the recipient of this award. Mr. Hyland added one of the legacies the Committee has created within the association is an award that will be presented annually for outstanding Customer Service professionals. It was begun last year at the Annual Conference and was named for a former staff member at NEPPA who passed away from cancer last year. It is a great idea that the Committee got behind and fostered. They are looking forward every year for managers to come forward with recommendations for individuals within their departments who do an outstanding job in serving customers or developing Customer Service programs. Mr. Hyland stated Ms. Cavagnaro and the Committee were very instrumental in having that award established. Mr. Hyland appreciates this. The Board congratulated Ms. Cavagnaro. Selectmen Liaison, Citizens' Advisory Board and Customer Comments Chairman Pacino asked if those in attendance wanted to speak. Mr. Van Magness replied not at this time, but reserves the opportunity for further discussion. Mr. Bolger had no comment at this time. RMLD Accounting/Business Manager Position Mr. Cameron stated this is an ongoing issue. Article 7 was voted on in April, 2003, and was made part of the Charter Amendment for the Town of Reading in April, 2004. Mr. Cameron explained that this requires the Board to appoint the Accounting Services Manager. Mr. Cameron has discussed before different options, none of which are the paradigm that would please everybody. However, Mr. Cameron has spoken with Mr. Fournier about this. Mr. Cameron has had discussions with the Subcommittee, which now is down to one member. Mr. Cameron stressed the Department needs to comply with the Town Charter, because it is now law. Mr. Cameron stated there is not enough work for a separate Accounting Services Manager. Mr. Cameron considers all his managers working managers, therefore, Mr. Fournier cannot give his duties to someone else and would really not have that much to do. Mr. Cameron is not pleased with the fact he has only three non-union people in the company reporting to him. If he agrees to have the Board appoint the Accounting Services manager/Business manager, then the Board would appoint one of those. Mr. Cameron's options are pretty slim. Mr. Cameron could spend $80,000 to hire someone to sit around and basically not do much. That is not appetizing to him. It is not fair to the ratepayers of the service territory to pay $80,000 for a vestigial position. Mr. Cameron stated one of the things he has to be realistic about is one of his three direct reports that is non-union would be appointed by the Board. Mr. Cameron pointed out he considers this a big concession. Mr. Cameron would think, in the future, if the structure of the Accounting Department would change that maybe this issue could be revisited. Mr. Cameron noted he has other things he has to look at, he has other things he needs to take care of, and the Board has other things it needs to take care of and it is time to move on from this issue. Mr. Pacino asked how does this run at the present time? Why don't go over how you run this position now? Mr. Cameron replied according to Board Policy 19, which is the Board of Commissioners' Policy, the Accounting Services Manager would have a few duties. One of the duties is he would have the responsibility of coming to the Board unfettered if he believed there was an irregularity occurring at the RMLD. (Mr. Cameron is paraphrasing). In addition, the Accounting Services/Business Manager has been attending quarterly meetings with the Town Accountant and a member of the Accounting Subcommittee. Recently, it has been Commissioner Soli who has been attending these meetings. They discuss the financial inner workings of the RMLD with the Town Accountant. Mr. Cameron stated that the Commissioner asks questions pertinent about the Cash Balances and Pension Trust, and these meetings have gone on since early last year. Regular Session Meeting Minutes -7- January 19, 2005 General Manager's Report RMLD Accounting/Business Manager Position Mr. Van Magness noted the position content document and if you look at Page 2, under Basic Requirements, it says a "Bachelor's Degree in Business, Management, Accounting or related area as determined by the Department. Specific and demonstrated knowledge of business administration, customer service or accounting." Mr. Van Magness would dare say, as the position is structured, while they just heard a very eloquent situation with customer service, should we hire a manager who has a background in customer service and does not have a strong financial or accounting background? Mr. Van Magness added, then 80% of the job would not be covered with a knowledgeable person as the Business Manager. In terms of independent actions, these are all items that follow what is in the document. He believes it needs to be stated to the effect that this position must review, approve and implement operational decisions consistent with the day-to-day supervision from the General Manager, etcetera, etcetera. Mr. Van Magness commented the description goes on to say that "financial accounts processes and records shall be maintained consistent with laws and regulations of the General Court of the Commonwealth of Massachusetts and standards rules, regulations and laws promulgated and adopted by the Federal Energy Regulatory Commission, Public Utilities, Regulatory Commission(s), Massachusetts Department of Public Utilities, Federal Accounting Standards Board, and Generally Accepted Accounting Practices for municipal utilities or entities." Mr. Van Magness knows some of this is probably a strong expansion of the position content guide, but what you really have to look at, as a Board in terms of the position, is to adequately describe what the requirements are and the parameters are in terms of essential tasks. Mr. Van Magness will not continue to go through the rest of these recommendations because his suggested list of qualifications is two Pages. Mr. Van Magness asks that the Board or Subcommittee that as you rewrite the position content document to be consistent with the recommendation of the General Manager tonight that you carefully consider these. Mr. Van Magness thanked Mr. Cameron for his leadership on this position. Ms. Kearns asked Mr. Van Magness if he drafted these qualifications of his own accord or did you use any currently existing Accounting Manager positions at an investor owned or public utility? Mr. Van Magness stated these suggested changes are based upon his professional experience in managing a very large financial organization in which he drafted the changes personally. It is things Mr. Van Magness looks at, such as the responsibilities and the inherent knowledge that position requires, which could be added to strengthen the document that is already in draft form. It is a series of recommendations for the Board to consider. Ms. Kearns asked of Mr. Van Magness did he look at or does a job description exists for the similar position at the Town level for the Accounting Manager position? Mr. Van Magness replied he did not look at that. Ms. Kearns stated the bottom line for the viewing audience is that the Subcommittee now takes Mr. Van Magness' suggestion and goes back and redrafts it. Mr. Pacino agreed with this along with consulting the Department. Mr. Herlihy clarified that the Board in its package has an e-mail from the Town Manager. Is this irrelevant now? Mr. Van Magness stated that was in response to his request for a meeting. Based the recommendation of the General Manager tonight and the decision of the Board, it is his intention tomorrow morning to send an e-mail to the Town Manager. Mr. Van Magness will specifically indicate in the e-mail there is no need for any meeting on this matter. Regular Session Meeting Minutes January 19, 2005 -8- General Manager's Report RMLD Accounting/Business Manager Position Mr. Cameron clarified does the Board have to do anything tonight with the Business/Accounting Manager position? Mr. Pacino replied it will be referred to the Subcommittee and they can come back with their recommendation. Financial Report November 30, 2004 Mr. Fournier updated the Board by pointing out the highlight of the November Financials was the $3.5 million rate refund that was given back to the ratepayers. Almost the full amount was given back by the criteria set forth 99.5% was returned to the ratepayers. Mr. Fournier noted on Page 3A, Actual versus Budget for the first eleven months, Net Income through November of $3.7 million, which is $300,000 higher than last year's Actual but $1.3 million under budget. Mr. Fournier explained that a good portion under budget is due to the rate refund, which is in the Profit & Loss Statement in November. Mr. Fournier noted Base Revenues are over budget by $350,000, Fuel Revenue below budget as well as Fuel Expense yielding a $1.5 million gain on Fuel. Mr. Fournier commented that the Fuel has been put through as a pass through but under GASB they reflect what occurs. Operating Expense is under budget due to lower insurance costs and three supervisory positions budgeted in 2004, which were not filled. Maintenance Expenses are down by about $860,000 due to a combination of the Maintenance of the Overhead Line work versus the Capital work. Tree trimming is down considerably and the Maintenance budget is also down. Ms. Kearns questioned the Maintenance budget issue and is Mr. Fournier saying it is down because you re-shifted the cost to Capital? The Maintenance is down $860,000, correct? Mr. Fournier replied yes. Ms. Kearns clarified because you re-shifted some of this to Capital? Mr. Fournier replied on Page 12A, Actual versus Budget, Maintenance of Lines Overhead there is $1.5 million budgeted. The Department has spent $860,000 for the first eleven months. What comprises that expense is pro rating of the Capital versus Expense work that appears in both Budgets but also another significant part of that is the Tree Trimming in that Account. Mr. Fournier commented it is under by $600,000. Ms. Kearns does not understand what Mr. Fournier is saying. Ms. Kearns asked of Mr. Fournier is there a mistake in that it was budgeted as an Expense item versus Capital? Mr. Fournier replied it is not a mistake. It is what the Department thought would happen in 2004. Mr. Fournier pointed out the Budget was done in 2003. Assumptions are made based on the Capital work and the mix this is how much is going to budgeted for. Tree trimming came in less because not as many crews were used, Overhead Line work came in less. Ms. Kearns stated she wanted to concentrate on the issue of Capital versus budgeted. Why is it you budgeted $1.494 million and you are coming in at $64,503? Mr. Cameron replied that the delta of that is the Line crews are doing more Capital work than estimated in the original budget. When they do more Capital work, then they do less Expense work. Another part of the reason that is down is because the Department was down one construction crew for almost two months because one of the crews went to Florida in the fall to assist with hurricane damage. That Capital/Expense split is targeted by the Department each year and the Department makes it best estimate on the Capital Budget, which is based on how many crews we have and what has to get done. Mr. Cameron commented, based on what Mr. Fournier has said, it is a reflection of the fact the Department has done more Capital and less Maintenance work. Mr. Cameron explained the Department goes through a very detailed exercise to come up with that split. Mr. Cameron noted sometimes budgets and reality do not converge. Regular Session Meeting Minutes -9- January 19, 2005 General Manager's Report Financial Report November 30, 2004 Mr. Soli inquired does that mean that the Capital Budget is over? Mr. Cameron replied the Capital budget is not over budget Mr. Pacino inquired why is it not over budget? Mr. Cameron replied there are other factors such as routine construction. Mr. Cameron reiterated there was a contractor crew in Florida for two months, which represents a sizeable amount of money that was not expensed. It did not go into Capital. Mr. Pacino clarified, the Department is allocating to Capital but overall below the spending. There are other things in the Capital Budget that are not being spent. Mr. Van Magness stated in following up on that conceptual discussion one of the things asked for at the CAB meeting was from his perspective one of the missing elements of the monthly Financial Report was one sheet on the status of Capital Projects because they go through the individual Capital items from a budget standpoint. It would be nice if they had a sheet whatever the project is in North Reading or Wilmington, this is the budget with the year to date actual. Nothing fancy but it would give a grounding back in terms of the where the Capital Projects stand perhaps for 2005. Mr. Fournier replied the Department has something in place for 2005. It will be a summary capital sheet and assign specific project numbers. It is his goal to keep track of specific Capital Projects not the routine construction (these will be lumped together). Mr. Fournier used an example if there is special feeder work in Lynnfield, North Reading or Wilmington they will target every month with a specific project number and with the new system it is easier to take care of this reporting. RMLD Budget Variance Summary Report through November 30, 2004 Mr. Fournier then turned to the Budget Variance Report for eleven months, Energy & Operations this refers to the tree trimming, new hires and the mix of the capital work, overhead work and maintenance of the overhead lines it is under budget by about $860,000. Energy Services is about $13,000 over budget, which is attributed to legal expenses. General Manager is under budget by about $75,000 this is due to the CAB, Board and Community Relations being under budget. Project Manager is $70,000 over budget; a good portion of this can be attributed to the Pension Contribution, which was made. In 2004 $175,000 was budgeted and the Board approved the recommended $600,000. Insurance costs came in lower. Business Division is over budget by $368,000 that includes the Gemini System write-off of $439,000 and a potential inventory write off of $100,000, which was not included in 2004 budget. For the first eleven months the Department is about $500,000 under budget on expenses. Mr. Van Magness had two items. Mr. Van Magness stated 2004 is over with and the Financial Reports for the year will be coming out next month. Mr. Van Magness would like to ask before the Department or the Board takes any action like in prior years in making transfers from funds that they should come to the CAB and do a presentation so that a recommendation can be made from the CAB. Mr. Cameron replied that he and Mr. Fournier will meet together when the pro forma numbers come out and that will be before the end of this month. Mr. Cameron stated last year he determined it was not necessary to make a transfer from the Rate Stabilization Fund, which was set a level of $6.6 million. The Operating Fund will be below $7.0 million. It is his intention to give a very hard look at the Department's construction money. Mr. Cameron added if there is construction money available with a level of surplus over the budgeted amount for Capital for 2005, then his recommendation would be to make less than the 8%. What he is looking at for 2004 is the Operation Fund is going to be lower, the Rate Stabilization Fund will be sustained at a level that is agreeable to the Board and is within the range set for him. He will take a" real hard look at the Return on Equity and the Allowable 8% return. Mr. Cameron knows what Mr. Van Magness is saying. Regular Session Meeting Minutes - 10- January 19, 2005 General Manager's Report Financial Report November 30, 2004 Mr. Cameron stated they will bring that to the Board and the CAB. Mr. Cameron also pointed out they need to address the form of the Profit and Loss Statement. It is different from what it has been in the past. The Board has to understand the mechanics of that also. Mr. Fournier commented they will present how the proposed transfers are calculated then opinions can be made. Mr. Van Magness would like to see them. Mr. Van Magness pointed out they still want to keep their eyes on the size of the Cash Fund, Operating and Rate Stabilization. The Rate Stabilization is at $6.6 million. The Cash Fund will have to be looked at in terms of how it moves and grows and shrinks vis a vis any potential refunds. Mr. Soli had a couple of questions on the Financial Report. The graph before Page 9, the Average Base Cost per kilowatt? Has the cost gone up about a'/4 of a cent or is that just some glitch? Mr. Cameron replied it is not a glitch. It is reflected in the PSA's with MMWEC, Seabrook, Millstone and Stonybrook. Sometimes those bills reflect a higher maintenance level in some months. Mr. Soli clarified basically we should stay between the 2.0¢ and 2.5¢. Mr. Cameron commented it went from 2.4¢ to 2.6¢. Mr. Soli stated an observation on Page 9, the Schedule of Cash and Investments it has gone up $2.6 million in the year. Mr. Soli inquired if the Department is becoming cash rich or does that mean something else? Mr. Cameron replied there are two lines reflected in this chart. There is the Depreciation Fund, which has gone up $1.8 million. It shows the Department has more Construction money. The Deferred Fuel Reserve is up $1.6 million. Quite frankly a year ago the Department's Deferred Fuel Reserve was at $1.9 million. Given the volatility of fuel prices and instability in the Middle East, $2.0 million is not a comfortable level to have because of how quickly the Fuel Charge can move $2.0 million, and it can be spent in two or three months. Mr. Cameron explained the mechanism for the Deferred Fuel Reserve. Mr. Soli inquired on Page 12B, under Responsible of Senior Manager there is a lot for Mr. Blomley. Mr. Cameron replied he has retired. Mr. Soli commented that he expects at some point there will be a replacement. Mr. Cameron replied there is a replacement. Mr. Fournier interjected through November Mr. Blomley was still responsible for that position. Mr. Soli questioned is there a planned replacement? Mr. Cameron replied that the replacement has been made but not announced to the Board. This is an oversight on his behalf. Mr. Cameron stated Mr. Blomley's job was changed and the title of his replacement is Facilities Manager. Mr. Cameron explained that Mr. Blomley was Manager of Projects. Mr. Cameron noted Mr. Blomley had expertise since he was around a long time and possessed a lot of institutional knowledge of the RMLD. Mr. Cameron pointed out Mr. Blomley had a Construction Supervisor's and an Electrician's License and given his expertise and project management abilities he was very valuable. Regular Session Meeting Minutes - 11 - January 19, 2005 General Manager's Report Financial Report November 30, 2004 Mr. Cameron added Mr. Blomley ran a lot of large projects. Mr. Cameron does not see a lot of large projects coming through the RMLD. If the Department does have large projects in the future they would probably be on the Engineering side and Engineering would handle them. Mr. Cameron commented the Department does not need the Construction Supervisor's and Electrician's Licenses, therefore he took it upon himself along with Ms. Antonio's expertise to rewrite the position description. The position description is at a lower grade level. Mr. Cameron stated Joe Donahoe who was previously the Station Supervisor filled the position. Mr. Cameron added he has some of the responsibilities that Mr. Blomley had. Some responsibilities that Mr. Blomley had are no longer there whereas some of them have been shifted to other employees. There are some additional items that Mr. Donahoe is going to take on, specifically safety. Mr. Soli asked on Professional Services, this shows Camp, Dresser & McKee and their charges to the CIBFMS. Basically is the amount over budget and when does the Department expect their efforts to be complete? Mr. Fournier replied that basically they are working on the documentation end of the system. They are creating a manual so users they can click on the system to access this. It will provide consistency. The system is basically up and running they are performing some cleaning up work along with Cogsdale. It is no longer a Capital item. It is more consulting work they are providing by helping the Department to make the system better. Mr. Fournier added as far as their services, they are needed for the Credit and Collections in early spring. Mr. Soli inquired is there any more Capital with respect to this project? Mr. Fournier replied no. This will be consulting. r , Mr. Soli clarified they will be at the Department through spring. Mr. Fournier replied probably through the summer. Mr. Cameron added the reality is that there is going to be a point where the Department is finished. Mr. Cameron pointed out from time to time the Department will have to call on CDM for one issue or another. Mr. Cameron commented the Department does not have that type of talent in house. It is very specific as far as a consultant goes. The consultant is the go between the Department and Cogsdale. Ms. Kearns asked on Professional Services who makes the judgment that you do not follow through on budgeted items? Ms. Kearns referred to the Professional Services Project by Project Items 14, 15, 16 and 17 who makes the judgment call that these budgeted Items will not be called? Mr. Cameron replied he does. Ms. Kearns inquired is there any harm to the RMLD by not following through on budgeted items? Mr. Cameron replied no. Mr. Cameron explained that the RMLD does not have a line item budget, however a Town would have a line item budget. Mr. Cameron pointed out in a Town budget if you go over in a line item then an appropriation has to be made for additional money. The RMLD does a budget for two reasons, one it is required by law under Chapter 164 and second it makes good business sense. It gives you a financial road map. Mr. Cameron stated the budget gets the blessing of the Board and you go ahead and conduct business. Mr. Cameron pointed out easement issues with the MBTA, the Department has had these before and knows what it costs. Mr. Cameron commented the Department does not spend for an item it is not done on purpose to say it is not going to be spent, if not spent it goes back to a below the line return. Ms. Kearns' second question is on Page 9, with the various Restricted Cash Fund how is that money invested and Regular Session Meeting Minutes -12- January 19, 2005 General Manager's Report Financial Report November 30, 2004 Mr. Fournier replied the Town Treasurer invests that money for the Department. Mr. Fournier noted as far as the Rate Stabilization Fund and Sick Leave he will find out. Mr. Fournier believes it is government bonds. Ms. Kearns wanted to know by the next meeting the rate of returns on the Restricted Cash Funds. Mr. Fournier stated be would e-mail Ms. Kearns tomorrow. Mr. Cameron added what the Town does is they have a ladder of investments and it provides liquidity to the Department. There are a whole variety of things that the Department is invested in. There are not too many rates that are real good anymore. Most of them have been called. Mr. Herlihy has two questions, the first question in the Budget the Rent over budget how does that happen? Mr. Cameron replied Rent Expense is prepaid. The Department pays a month in advance. Mr. Fournier added there are some other costs the Department is responsible for not just basic rate there are such items as utilities, plowing and improvements. These billings come to the Department later in the year. There is a set amount the Department does pay each month but there are other costs incurred in the lease. Mr. Herlihy stated this ties into his second question. Mr. Herlihy is curious because he is doing the Account Payables with Commissioner Ensminger's departure and he does the Payroll. Mr. Herlihy pointed out he noticed there were substantial overtime costs for snow removal yet the Department contracts out snow removal as an Outside Service and it ends up in the Rent Expense. Mr. Cameron replied what happens is the Department will have it staff to come in. It is up to the Facilities Manager - as to when the staff gets called in to do shoveling and some plowing. Mr. Cameron explained the Facilities staff will do the front and back sidewalks with shoveling and salting. The last storm the Department can handle up to a certain amount of snow then they have to call in a contractor, which has heavy equipment. Mr. Cameron pointed out when the snow has to be piled up in certain places then that contractor works on the property when there is a lot of snow. Mr. Cameron added the third thing the Rent Expense part of the lease is the Department has to pay a portion of the snow plowing performed in front of the warehouse. Mr. Herlihy thought the overtime expense was a bit high. Mr. Cameron replied the parking lot needs to be clear. Employees have slipped and fallen and it is a workers compensation issue. Just because someone falls outside the building does not mean you are off the hook. It is a workers compensation issue. An employee recently fell. Mr. Cameron has had discussions with the Facilities Manager and he comes in very early in the morning when it has or is snowing and assesses the situation before calling in staff as needed. Sometimes a contractor is required for the heavy snow because the Department does not have the trucks to handle it. Mr. Cameron is not an advocate of having employees walk on surfaces that are slippery. There have been employees out on workers compensation after slipping in the parking lot and it can be expensive and cut productivity. RMLD Tour for Huckleberry Hill School Fourth Graders, Town of Lynnfield The Community Relations Department hosted a field trip for eight five students on Monday, December 13, 2004 Mr. Cameron stated the fourth graders from the Huckleberry Hill School toured the RMLD facility. The students sent back notes thanking the Department for the tour. Mr. Cameron explained for those who were here earlier the RMLD had its T-Shirt contest. Mr. Cameron made the observation that when children come to the RMLD and learn about safety with electricity and get involved in the T-Shirt contest kids learn about the safety of electricity and if one live is saved then you cannot put a price on that. Regular Session Meeting Minutes January 19, 2005 -13- General Manager's Report RMLD Tour for Huckleberry Hill School Fourth Graders, Town of Lynnfield The Community Relations Department hosted a field trip for eight five students on Monday, December 13, 2004 Mr. Cameron stated Mses. Gottwald and Maillett do a great job. Mr. Soli looked at the notes and they are sweet. These are fourth grade students with notes that contain their names. For the safety of the children he would like their names not to be contained in the final minutes. Letter to the Massachusetts Office of the Attorney General This is in response to the withdrawal of the bid by Tar-Vel Roofing Co. Inc., for the roof bid. Mr. Cameron stated back in October 2004, the Department went out to bid to replace the roof on the garage and the successful bidder rescinded the bid. Mr. Cameron pointed out the Board directed him to write to the Commonwealth of Massachusetts about this issue. Mr. Cameron noted Mr. Owen, the RMLD's Materials Manager, sent this letter into the Attorney General explaining this occurrence. Remembrance of former RMLD Employees Mr. Cameron stated one of the Commissioners asked him to remember the employees and Commissioners who passed away in 2004. Mr. Cameron stated Commissioner William Hughes, former RMLD employee Carl Benson who was the Manager at the Rowley Municipal Light Department, Jane Ahearn former RMLD employee also the mother of Meter Supervisor, Deirdre Ahearn as well as the Secretary to the General Manager, and Henry Boissoneau. It would be easier for Mr. Cameron to tell you what positions Mr. Boissoneau did not hold at the RMLD because he was the Appliance Repairman when the Department sold appliances, as a Facilities person he could fix anything and when he retired he was the Purchasing Agent. Also, former Commissioner Dan Halloran passed away on the same day as Commissioner Hughes. It is sad that so many people who were close to us and were an integral part of the RMLD passed away this year. Our hearts go out to their families. System Interruptions Thursday and Friday Evenings This e-mail is in response to Commissioner Herlihy's inquiry on system interruptions. Mr. Cameron wrote an e-mail in response to two separate interruptions the Department had recently. Mr. Cameron explained they both occurred on the National Grid Transmission Lines and affected the customers that are served off the North Reading Substation. One of the transmission lines that feeds the Department's substations had an incident on Thursday night around 7:00 p.m. caused from a cross arm that malfunctioned at the Salem Harbor Generating Plant. It also resulted in the Town of Marblehead being without electricity for six hours. Mr. Cameron noted on Friday, there was a problem with an air break switch on one of the same transmission lines and this resulted in a bump on the system. Two transmission lines feed the North Reading substation and there is an automatic transfer scheme. When there is an operation on one of these lines the Station will transfer automatically to the line they did not operate. The automatic transfer scheme helps protect the customers from that line going out for an extended amount of time. Mr. Soli commented that Marblehead was out for six hours whereas the Department was able to do something instantaneously. Does that mean that the Department has a better-designed system with more redundancy? Mr. Cameron replied no. Mr. Cameron explained that where the cross arm failed was on the direct feed to Marblehead. Mr. Soli stated this was not his question. Mr. Soli pointed out the Department had a momentary incident whereas Marblehead was out for six hours. Mr. Cameron commented that their lines went right down that feeds them directly. - -Mr. Soli added Marblehead-does not have redundancy. - - - - - - Regular Session Meeting Minutes -14- January 19, 2005 General Manager's Report System Interruptions Thursday and Friday Evenings This e-mail is in response to Commissioner Herlihy's inquiry on system interruptions. Mr. Cameron explained it is not this. Mr. Cameron noted that Marblehead is not fed off the same transmission lines as the Department they are fed out different lines. Their lines that feed them went down so they did not have any electricity coming into their system from either line. Mr. Soli thanked Mr. Cameron. Ms. Kearns had a follow up question could happened at Marblehead could this happen in Reading? Mr. Cameron replied it did happen here in March 5, 2001. One of the transmission towers on the line that comes from Salem Harbor to Tewksbury fell down. On the other line one of the static wires fell down and cut the feed on the other line. When that happened the North Reading substation was off line. There was no electricity going to it. When the 115 KV lines that feed the GAW station sensed what happened on the North Reading lines they automatically shut down. For four hours there was no power coming into the service territory. Ms. Kearns added it is not necessarily a matter of structure. Mr. Cameron pointed out you are only as good as your power supply lines. Mr. Cameron stated that customers should not be alarmed. The Department is part of an interconnected system, which has a great deal of benefit. Probably one of the biggest drawbacks is that something can happen down at the Mystic Station in Everett and it will be felt up here. The benefits of interconnected system with respect to the economic benefits that the utility and its customers gain are huge compared to the momentary interruptions. Mr. Herlihy stated he would like to thank the General Manager and the Community Relations Manager for putting out word to the press about what happened. Mr. Herlihy explained it was weird because it happened coincidentally almost exact same time two nights in a row. It was a good explanation for what happened due the coincidence of the events. Thank you letter from the American Red Cross to Customer Service Manager, Laurie Cavagnaro. The blood drive on December 17 was held in the RMLD Cafeteria. Mr. Cameron stated this is a thank you letter from the American Red Cross thanking the Department. There was a Blood Drive held at the Department on December 17. The goal was 50 donors and there were 67. It was very successful. They used the RMLD Cafeteria for the Blood Drive. Board Discussion Rate Comparisons, December, 2004 Mr. Cameron pointed out on the Residential side it is the same old story. Peabody and Middleton are about 8% and 8.8% below the Department. The Residential Time of Use at Peabody and Middleton is 2% and 2.5% below the Department. On the Commercial side the Department is the lowest provider for December. That is given the fact that the Fuel Charge was down to 3.25¢ per kilowatt-hour. Mr. Cameron noted on the Industrial Time of Use side was tied with Middleton as the lowest. Mr. Van Magness asked one item that was discussed at the CAB was getting an additional sheet added for the smaller commercial entities? It was an important discussion item for the rate study. Mr. Van Magness wanted to get some metrics on this on a monthly basis. E- Mail Explanation for Account Payable and Payroll Removal Sheets Mr. Pacino stated these are information only e-mails to explain the questions on the Warrants. Mr. Herlihy added he had one problem with a bill item in which he made a note of it. Mr. Herlihy noted Mr. Cameron got back to him on it. It involved work on the GIS database. If it were a new item this would be put out to bid. Mr. Herlihy is concerned about the older items in which the Department continues to spend in excess of the 30B limits Mr. Herlihy is unsure if there is an issue there or not. Regular Session Meeting Minutes - 15 - January 19, 2005 Board Discussion E- Mail Explanation for Account Payable and Payroll Removal Sheets Mr. Cameron replied it is a service. The Department had contracted for a GIS system years ago. The Department has a supplier and is going to be working on this system. They are going to ensure the database is correct. Mr. Cameron pointed out the Department is not skirting any 30B rules. Mr. Cameron explained that the Department had gone through a bid process to get the GIS system. It is a service that is connected with the GIS because it is the same supplier. Mr. Cameron noted that it would be more expensive to go out and get another supplier to come in. Mr. Cameron is uncertain if someone else could come in and work on that software. It would nullify the software warranty if they stopped with that company and went with someone else. Mr. Soli added 30B has certain exceptions such as services, engineering and legal. Next Meeting Dates Wednesday, February 16, 2005 Mr. Cameron wanted to ensure that there is a quorum because there are two bids for the gas circuit breakers that need to be purchased due to the delivery dates. One bid will be for the 115 KV breakers and one for the 35 KV breakers. This needs to be done before the summer peak. Mr. Herlihy inquired since the Board is down one member what constitutes a quorum? Mr. Pacino replied three. RMLD Board of Commissioners Subcommittee Meetings Mr. Cameron commented the General Manager Contract and Accounting Manager need to meet perhaps in the morning. RMLD Board Rotation at Citizens' Advisory Board (CAB) Meetings Commissioner Soli volunteered to attend the next Citizens' Advisory Board (CAB) meeting. Board Discussion On another matter Mr. Soli has been thinking about various policy issues. Mr. Soli noted for some of these things it is hard for a Commissioner to know what to do. Actually you might like a survey or something on the Town Election ballot. That is why he is bringing this up. Mr. Soli noted one particular item is for the past several years what the Department has been doing is giving the customers a rebate towards the end of the year. Mr. Soli has been told by customers they think it is very nice because last November's bill was very small. Mr. Soli pointed out that there is an alternative with a Cost of Service Study, which could reduce the rate a little bit throughout the year. Mr. Soli noted this is not anything noticeable. Mr. Soli was thinking there might be a way the Board wanted some advice to put such a question on the ballot as advisory. This is one way to find out what the citizens of Reading think about it. Mr. Van Magness understands the need for this. Mr. Van Magness noted it would be something for one of his colleagues to discuss. Mr. Van Magness is sure with the four towns in the service territory if some type of survey were to be initiated his colleagues would want to see that all the towns to be included as a minimum. Mr. Van Magness is uncertain what their election criteria is or anything else. Mr. Van Magness is concerned how this would flow with all the towns in the service territory. Mr. Herlihy stated in 2005 one of the big things to get done is the Customer Survey. The Survey is overdue and there are several issues that can be determined with this. That is a mechanism instead of ballot questions. Regular Session Meeting Minutes -16- January 19, 2005 Board Discussion Ms. Kearns stated as a matter of governing she does not think it is appropriate to always go back to the public and ask the public to vote "yes or "nay" on a ballot question. Ms. Kearns pointed out it is the Board's job to try our best to discern what is in the best interest of all the customers in the RMLD and do that by method of surveying and perhaps other methods. Ms. Kearns is leery of cities and towns that consistently go back to the towns people and let them decide. It is our job to try to filter through the various sources of information and make rationale and wise decisions. Mr. Cameron added he does not know how to put this. There are some things you ask the customers. There are some things that must be done from a business point of view. Quite frankly the Department has made the effort to do a Cost of Service Study. Another one will be done. A good business practice is to get the rates at a proper level. Mr. Cameron noted until such time the Department can get the rates at a proper level a refund is not a bad mechanism to have. Mr. Cameron mentioned it is necessary to look to the General Manager for those decisions. There are services the customers like which can be handled in a survey. Mr. Cameron pointed out as far as a refund goes it is up to him to come to the Board and say this is something that can be done. Mr. Pacino stated if you go to the ballot there needs to be an education process to go along with it. Mr. Pacino pointed out there was a recent motion made at Town Meeting to look at alternative/clean energy. It is a noble cause and well meaning. Mr. Pacino stressed clean energy costs more and was not discussed at all. When you go forward and ask if you want clean environmental energy, he would want that however is he willing to pay more for it, he is uncertain. This is an example of the education to go along with something like this. Mr. Soli inquired there will be a survey? Mr. Cameron stated yes there will be a customer survey this year. Mr. Cameron added the Town of Reading has asked him twice about green power. Ms. Kearns has recently done a survey of a group she is president of. Ms. Kearns stated they put the survey on the web and it is amazing how quickly people will go to the web survey. It takes than less than five minutes to fill in and will increase the number of respondents. Ms. Kearns stated there are companies out there who specialize in such web surveys. She suggested using www.survevmonkey.com and others to draft and collect the data. In today's world many people use the e-mail system to communicate. Mr. Herlihy stated the CAB and Board need to look at this as well. If we could find out from our customers certain items what they want it will assist in better meeting their expectations. Executive Session (General Manager's Conference Room) Mr. Herlihy made a motion seconded by Ms. Kearns that the Board go into Executive Session, to discuss strategy in preparation of Calpine negotiations, Seabrook and to return to Regular Session for the sole purpose of adjournment. Motion to Adjourn Executive Session (General Manager's Conference Room) At 9:25 p.m. Mr. Herlihy made a motion seconded by Ms. Kearns that the Board go into Executive Session to discuss strategy in preparation of Calpine negotiations, Seabrook matters and to return to Regular Session for the sole purpose of adjournment. Motion carried by show of hands 4:0:0. Mr. Pacino called for a poll of the vote: Mr. Soli: Aye, Mr. Herlihy, Aye; Mr. Pacino, Aye; and Ms. Kearns Aye. Motion to Adjourn At 9:50 p.m. Mr. Soli made a motion seconded by Ms. Kearns to adjourn the Regular Session. Motion carried by show of hands 4:0:0. Regular Session Meeting Minutes -17- January 19, 2005 A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. Andrew K. Herlihy, Secretary Pro Tern RMLD Board of Commissioners