TMLWP
Meeting
Water department
Old Business –
FY
14 Water Capital improvements & Rate Study estimates.
After
discussion, the contract to perform the rate study for the water department was
awarded to Tighe & Bond. The time- table is 4-6 weeks to complete the rate
study. While water sales have increased from 94 million gallons to 96 million
gallons (an increase of $12,000 in revenue), there is a projected budget deficit of $60,000 in this
fiscal year for the water department.
Factors
that have contributed to the water department shortfall are the water main
breaks (July
14, 2012) as well as other water main breaks in the first quarter of FY 13.
Willow St. needed some work on the aeration tower: Sawyer St. well needed the
to cleaned out (iron and manganese). These repairs coupled with the water main
breaks have contributed to the projected $60,000
shortfall for THIS fiscal year.
Other
issues – lack of connection fee income, which is generated by new tie-ins and
construction. The “customer charge was increased from $12.00/quarter to
$28.00/quarter in 2009. The debt from numerous bonds is a heavy burden for the
department. The debt will not see a significant reduction until FY 2023 – ten
years away.
It
looks like a significant water rate
increase is about to be determined in the next 4-6 weeks. Our water bills
for the last quarter of this fiscal year will be going up! Chairman Dana Blais stated: ”whatever we
gotta do, we gotta do.” There was no discussion about cost cutting measures.
Back
Bay update –
The
CDBG Back Bay has begun on Fisher St. temporary water service is being
installed and tested.
Customer
Question –
Zone
II delineation has been completed. It took over 5 years to complete. Is the
money that was to be used for that study available for other purposes? No. The
original contract was billed on a monthly or bi-monthly basis not to exceed
$120,000. The final cost of the Zone II work was about $75,000. There isn’t
$45,000 set aside to cover the $60,000 shortfall.
The
executive session minutes from 5/1/201 and 6/5/2012 were released.
A
vote was taken to go into Executive session, which was held after the Light
Department meeting convened.
Light Department –
Old Business –
Templeton Wind Turbine
Maintenance Update-
The
report from JaKe (Jahlen Kestermann) is not ready. The preliminary results from
the vibration test indicate there is nothing critically wrong with it. The may
be some minor issue with the gears. A written report will follow.
Wind Turbine Cost
Certification Update –
Six
weeks ago Peter Chatellier (BRAVER) stated he had everything he needed to
prepare the cost certification for the wind turbine. Braver was contacted again
and the cost certification should be ready by June 30, 2013. The unbilled time
for this work is estimated to be $11,000. More likely will cost $15,000 when
all is said and done.
Baldwinville Rd
Reconstruction
– Most of the poles have been moved for the Baldwinville Rd reconstruction
project. There is one pole that will need to be moved at #35. Delays are anticipated
in moving the wires. There were similar delays at other projects (The Brow)
where Verizon was very slow in moving the wires to the new poles. There were no
pole hearings for the pole relocation along Baldwinville Rd. Most of the pole
relocations were less than three feet.
Rate study – The rate study may take
about a year to complete. The study will look at another type of discounted
rate. Once the study is completed the vendor will attend an open session to
present the new proposed rates.
New Business-
Q1
2013 rate comparisons
There
is an issue with the current fuel adjustment charge. The fuel adjustment charge
will be based on the February figures from MMWEC which were very high for a
short month. The increase is based on a few factors – the prolonged cold
weather, unplanned shut down of nuclear plants and the diversion of (abundant)
natural gas from electricity production to home heating as is required in the
winter months.
The
Commissioners voted to release the redacted executive session minutes of
5/1/2012, 6/5/2012 and 2/6/2013.
Customer comments and
questions-
Mr.
Mitchell asks about the $10,000 legal
research paid for by the Light and Water commissioners regarding the
Citizen petition. Mr. Mitchell thinks the information/legal research regarding
the ramifications of the issue to rescind the special acts should be available to
the town and to the public. (Also invoice from Rubin
and Rudman for legal research on PILOT payment)
Mr.
Smart inquired about “catastrophic insurance” for the wind turbine. The
response was that there is insurance carried by Travelers Insurance which
covers liability up to 2 million dollars. The same policy covers the liability
of injury and as well as to replace the turbine. Mr. Smart informed the Commissioners
about a section of Chapter
164 section 55. Which reads in part:
The municipal light board shall have authority to
construct, purchase or lease a gas or electric plant in accordance with the
vote of the town and to maintain and operate the same.
When did the “vote of the
town” occur?
Discussion
ensued about the siting of the wind turbine. The rules and regulations
regarding the siting of wind turbines have changed. Under current regulations,
our wind turbine would not be allowed. So in essence, the turbine is
grandfathered.
Residents
have made complaints about the wind turbine. The manager needs concrete
evidence before any action will be taken. One resident has made a request for a
letter from the department that the turbine is safe.
Mr.
Kasper asked if the blades on the turbine were the right size. We were informed
that they were the correct size.
The
report from JaKe will outline all the options to repair the turbine. The
manager stated we are light years away from the situation in Princeton and
Portsmouth RI.
My
opinions…supported by FACTS ! ! !
Julie
Farrell
I thought the reason the turbine was broken was because the blades were too big and overtaxed the gears.
ReplyDeleteAs usual the commissioners are not gong to admit to that being the truth. I can't wait to see that report. My guess is that it will not surface until after the election, especially if it is bad news. Why is the water department giving out raises if they are in a hole? In the real world, like the one you and I live in, that would not happen. Looks like Mr.Skelton's way of doing business is coming back to bite us. Too many loans, to long to pay for them. He thinks he is a financial wizard! I would say NO!! This man needs a reality check! He needs to pack it up and go someplace else to retire. Enough is enough, of him! That is my opinion, Bev.
DeleteSoon we will know about what the cost of the turbine was/is. Soon we will know what it will take to make it run again.
ReplyDeleteNever will we get to vote about any of this.
Never will you get to have in writing that it is safe.
Never will we get a fair shake or reduction on our rates from the investment that Templeton makes like this. Thay think it was TMLWP investment they get all the extra that comes from our business investment.
Stop and think if the bank kept all your intrest would you stay at the bank? If it was the only one you would have to.
Point is TMLWP is the only place you get your power and with the monopoly they control our future investments.
No Votes,No choice,No say,No rights.The plan about the money is slowly falling apart and with it the strenght we had with the TMLWP. It is our Business and what happens to is also!
Shareholder
Dave Smart