HomeMy WebLinkAbout2010-09-20 RMLD General Manager Committee MinutesReading Municipal Light Board of Commissioners
General Manager Committee Minutes
September 20, 2010
Start Time of Committee Meeting: 7:30 p.m.
End Time of Committee Meeting. 8:00 p.m.
Attendees:
Commissioners: Chairman O'Neill, Messrs. Hahn and Pacino
The meeting was called to order at 7:30 p.m.
The only item on the agenda, the performance plan for fiscal year 2011 for the general manager of
the RMLD, was discussed. Minor modifications and updates to the current evaluation tool were
proposed and considered.
Mr. Hahn made a motion, seconded by Mr. Pacino, to recommend that the RMLD Board of
Commissioners approve the Performance Plan for the General Manager for July 2010 to July 2011
as revised at this meeting.
Motion carried 3:0:0.
At 8:00 p.m. Mr. Hahn made a motion seconded by Mr. Pacino, to adjourn.
Motion carried 3:0:0.
A copy of the new performance plan is attached.
PERFORMANCE REVIEW
READING MUNICIPAL LIGHT DEPARTMENT
GENERAL MANAGER
PROCESS
The Board of Commissioners (Board) of the Reading Municipal Light Department
(RMLD) is responsible for hiring and evaluating the General Manager (GM), setting his/her
compensation and establishing policies that guide the GM in the operations of the RMLD,
according to Chapter 164 of the Massachusetts General Laws.
The Board has established the following seven criteria for evaluating the GM's
performance for the period July 1, 2010 - June 30, 2011, with the relative weight to be given
each factor:
Finance
........20%
Energy Efficiency and Load Management...
.........20%
System Reliability
........20%
Leadership
........10%
Board Relations....
........10%
Employee Relations
.10%
Community Relations
........10%
Each Commissioner is expected to complete this evaluation form within two
weeks after receiving it. In addition, the GM will be required to do a self-assessment on
the same form.
The General Manager Subcommittee will review all evaluation forms and make a
recommendation to the Board regarding the GM's compensation for fiscal year 2011 -
2012.1 The Committee will also recommend to the Board goals for future performance
including priorities, goals, and timetables.
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I. FINANCE
Goal: Meaningful budgets are developed in a timely manner. Expenses are accurately
tracked and reported. Cash reserves are prudently invested. Financial targets are
met. Plans are developed to meet unexpected contingencies.
Minimum Tasks to be completed:
1. Provide the basis for the estimates found in the Capital & Operating budgets.
2. Create Capital & Operating budgets and submit to CAB and the Board.
3. On a monthly basis provide the Board with actual expenditures and variance
with respect to the Capital and Operating Budgets.
4. On a quarterly basis update the Six Year Financial Plan and provide to the Board.
5. On a quarterly basis provide the Board with a report on the Retirement trust
general ledger & Town cash reconciliation.
6. Perform a Cost of Service (COS) study, when necessary, and provide the CAB
and the Board with a rate adjustment recommendation.
7. Create a plan to show how the RMLD will meet its 8% return.
8. If required, report to the Board on matters raised in the FY2010 audit letter.
9. If the rate-stabilization fund misses its year-end goal of $6.5 million by more
than $0.5 million, prepare a plan to address the issue.
Overall Score:
(1 - 20 points)
II. ENERGY EFFICIENCY AND LOAD MANAGEMENT
Goal: Assess peak demand and energy needs to determine amounts of capacity and
energy necessary to meet system requirements. Consider and implement energy
efficiency, load management and conservation measures. Seek a diverse power
supply portfolio, including environmentally responsible power.
Minimum Tasks to be completed:
1. Continue the power supply procurement strategy, including obtaining bids
from renewable projects.
2. Manage the fuel clause and deferred-fuel-account balance.
3. Implement the Conservation and Energy Efficiency Program approved by the Board.
4. Keep up to date on new industry technologies and inform the Board of suggested
operational changes to meet these trends.
5. Create new initiatives to address the Board's commitment to green power.
6. Continue the RMLD's efforts to maintain reasonable rates including the provision
of monthly rate comparisons to the Board.
Overall Score:
(1 - 20 points)
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V. LEADERSHIP
Goal: Delegate tasks and monitor performance of key staff. Identify and bring to the
attention of the Board changes in legislation that may affect the running of a
public power utility. Participate in training programs, conferences and seminars
to develop enhanced personal skills and to contribute to the development of
others.
Minimum Tasks to be completed:
1. Maintain comprehensive coverage of new information related to governmental
regulations, financial conditions, technological changes, energy and resource
developments as they relate to public utilities.
2. Bring issues regarding these matters to the attention of the Board.
3. Discuss long-range goals for capital expansion with the Board.
4. Assure that the goals and implementing strategies of the strategic plan are being
followed.
Overall Score:
(1 - 10 points)
VI. RELATIONSHIP WITH THE BOARD
Goal: Actively keep the Board informed of major issues and strategic direction of the
RMLD. Maintain professional working relationships with elected Commissioners.
Provide needed information to the Board to assist it in making decisions.
Minimum Tasks to be completed:
1. Communicate effectively with Board members.
2. Provide useful information to the Board that is helpful in Board decision-making.
3. Respond to the voted requests of the Board and meet time commitments made to
the Board.
4. Provide quarterly updates to the Board on the progress of the "implementing
strategies" from the RMLD's strategic plan.
5. Identify current issues, problems or projects that should concern the Board.
Overall Score:
(1 - 10 points)
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III. THE RELIABILITY OF THE RMLD SYSTEM
Goal: Construct and maintain an electric distribution system capable of delivering
electric service with a high degree of reliability. Measure the reliability of the
RMLD's distribution system against industry standards.
Minimum Tasks to be completed:
1. Provide an annual report to the Board dated December 31 of the previous year's
safety incidents.
2. Provide an annual report to the Board dated December 31 regarding security
issues, including the recommendation of new measures and/or procedures.
3. Maintain SAIFI and CAIDI indices on a monthly basis and provide an
explanation if RMLD's reliability measures exceed industry standards or
RMLD's historical performance.
4. Maintain an outage database detailing the nature and duration of an outage and
RMLD's response to the outage.
5. Prepare a five-year capital plan report annually for presentation to the Board that
addresses future needs of the RMLD's distribution system, the date of the report
to be in conjunction with the release of the Capital Budget.
6. Modify and re-evaluate the capital and operating budgets throughout the year to
address concerns affecting the reliability of the distribution system.
7. Complete the Gaw Substation Transformer Upgrade project.
8. Complete the first phase of the Meter Upgrade Project.
Overall Score:
(1 - 20 points)
IV. MANAGE EMPLOYEES
Goal: Keep employees informed about Board initiatives and policies. Assure that
competent individuals are hired, trained and promoted. Negotiate contracts and
conduct business with the bargaining units in a professional manner. Provide
effective leadership to direct reports.
Minimum Tasks to be completed:
1. Maintain a highly skilled and knowledgeable workforce.
2. On an annual basis, provide a Summary of Grievances report to the Board dated
December 31
3. Participate in negotiations, when necessary, with the three bargaining units for
renewal contracts; keep the Board apprised of the outcome of these negotiations.
4. Assure that appropriate training is provided for all staff.
Overall Score:
(1 10 points)
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3
VII. RELATIONSHIP WITH THE COMMUNITY SERVED BY THE RMLD
Goal: Maintain good working relationships with all the constituent groups that interface
with the RMLD
Minimum Tasks to be completed:
1. Continue a good working relationship with the Town Managers in the four towns
served by RMLD.
2. Attend all meetings of the CAB.
3. Continue to maintain working relationships with state and national utility
associations and groups, and forward to the Board's attention new matters being
raised by these entities.
4. Assure that an Annual report is given at the Subsequent Town Meeting of the
Town of Reading.
5. Communicate effectively with community and business interests in the four towns
served by the RMLD.
6. Communicate effectively with customers regarding rate increases, or other
relevant information.
7. Seek to influence government concerning the emerging needs of the RMLD.
8. From time to time, conduct a customer satisfaction survey and share the survey
results with the Board, staff and customers.
9. Provide an annual report to the Board on Customer Service programs.
10. Assure that Customer Service training is provided to all positions that have
consistent contact with residential or commercial customers.
Overall Score:
(1 - 10 points)
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5
Calculation of Annual Raise:
Total Score Possible: 100 points
Calculation of Annual Increase:
Composite Score: greater than 90 CPI + 2%*
81 - 90 CPI + 1.5%
71 - 80 CPI +.5%
61-70 CPI %
< 61% No Raise.
* The Board may consider awarding an increase in pay that is higher than CPI + 2% if the GM
performs extraordinary work during the period, July 1, 2009 - June 30, 2010.
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