Shedding Some Light…April 9, 2013

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.

Water Department Questions Answered

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