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HomeMy WebLinkAbout2011-05-09 RMLD Budget Committee MinutesReading Municipal Light Department Board of Commission, Q RMLD Board of Commissioners Budget Committee Minu#Q ~ Monday, May 9, 2011 n N CLERK READING, MASS. Start Time of Regular Session: 7:03 p.m. End Time of Regular Session: 9:10 p.m. Attendees: Committee Members: Philip Pacino, Committee Chair Mary Ellen O'Neill, Member 2011 JUL 12 P 12' 3 Richard Hahn, Member Staff: Vinnie Cameron, General Manager Beth Ellen Antonio, Human Resources Manager Joe Donahoe, Facilities Manager Robert Fournier, Accounting/Business Manager Paula O'Leary, Operational Assistant Jane Parenteau, Energy Services Manager Kevin Sullivan, Engineering and Operations Manager Peter Price, Manager of Engineering Nick D'Alleva, Technical Services Manager Tom O'Connor, General Line Foreman Mr. Hahn in called the meeting to order at 7:03 p.m. Review the FY12 Capital Budget Mr. Cameron said that he would like to have the Budget Committee begin with the Capital Budget with Management Information Services and Facilities project presented first, and then proceed onto Engineering and Operations project. Mr. Hahn agreed. Mr. Fournier explained Projects 27 and 28. Mr. Donahoe explained projects 18,19, 20, 21 Discussion followed. Mr. Sullivan introduced Peter Price, Manager of Engineering, Nick D'Alleva, Technical Services Manager, and Tom O'Connor, General Line Foreman, all managers in the Engineering and Operations Division. Projects 1 through 17, 22, 23 and 24 were explained by Mr. Sullivan and other representatives of Engineering and Operations Division. Discussion followed. Mr. Hahn made a motion seconded by Ms. O'Neill that the Budget Committee recommend to the RMLD Board of Commissioners accept the projected Fiscal Year 2012 Capital Expenses of $5,910,048 as presented to the Budget Committee. Motion carried 3:0:0. Review of the FY12 Operating Mr. Cameron stated that this budget decreased over $14 million as compared to the FY11 Operating Budget, which is attributable to the soil removal at the Gaw substation and decreases in power supply costs. Mr. Cameron further stated that Mr. Fournier will explain the components of the FY12 Operating Budget. Then the manager of each division will present their budgets and answer questions. Budget Committee Meeting May 9, 2011 Review of the FY12 Operating Business Division Mr. Fournier, explained the Business Division budget. The major changes in the Business Division budget as compared'4to the FY11 Operating Budget are increases in Depreciation of $100,000, Return to Town of Reading of $45,000, Voluntary Payments of $36,000, Labor of $17,563, and Uncollectible Accounts of $12,000. Discussion followed. Energy Services Division Ms. Parenteau explained the Energy Services Division budget. Ms. Parenteau stated that the decrease from FY11 is $89,619 and is mainly due to the Key Accounts Manager not being replaced. Discussion followed. Engineering and Operations Division Mr. Sullivan explained the Engineering and Operations Budget. The major changes in the Engineering and Operations Division Budget are a decrease in the Engineering and Operations budget is from FY11 is $388,287 Transformer Maintenance decreased $505,000 (Gaw Soil remediation). Discussion followed. General Manager's Division Mr. Cameron explained the General Manager's Budget. Mr. Cameron said that the General Manager's budget decreased $50,582 as compared to the FY11 budget. Ms. Antonio explained the Human Resources Division budget and noted that the labor in Human Resources decreased $40,713 because the Human Resource and Community Relations Assistant not replaced. Discussion followed. Mr. Donahoe explained the Facilities Division budget, which increased from FY11 by $290,462. Mr. Donahoe stated that Building Maintenance- Outside Services increased $66,500 because there is a need to perform a study on the structural integrity of the building at 226 Ash Street. Mr. Fournier explained that the Pension and Benefits increased $253,030 due to (Health Insurance and Pension Trust increases.) Discussion followed. Mr. Hahn made a motion seconded by Ms. O'Neill that the Budget Committee recommend to the RMLD Board of Commissioners accept the approve the First Draft of the Fiscal Year 2012 Operating Budget as presented on May 9, 2011. Motion carried 3:0:0. At 9:10 p.m. Mr. Hahn made a motion seconded by Ms. O'Neill to adjourn the meeting. Motion carried 3:0:0.