Report will explore creation of municipal utilities

As published in the Record Journal Tuesday November 27, 2012

By Russell Blair
Record-Journal staff
rblair@record-journal.com
(203) 317-2225
Twitter:@RussellBlairRJ

WALLINGFORD — Time and again the town-owned Electric Division has outperformed larger utility companies when it comes to limiting outages during storms and restoring power afterward, and state legislators have taken notice.

At the request of lawmakers, the Public Utilities Regulatory Authority will issue a report by Jan. 1 examining the procedures for creating and expanding municipal electric utilities in the state. In addition to Wallingford, six other cities and towns run their own electric companies.

“We will put everything on the table, what communities would need if they want to start their own utility,” said Rep. Laura Hoydick, the ranking House Republican on the legislature’s Energy and Technology Committee.

Wallingford and other municipal utilities have developed a reputation for keeping the lights on during storms that knock power out in neighboring towns for days. Democratic state Rep. Mary G. Fritz, who represents the 90th House District, said the Cheshire portion of her district loses power at a higher clip than the part of Wallingford she represents.

“I think it’s a good idea,” she said of the report. “I think people feel a strong support for their electric division when they are working directly for them.”

Public Utilities Director George Adair attributes the Electric Division’s success to a consistent tree-trimming program and the type of wires the department has in place. The division uses a wire that is “more tolerant of incidental contact,” he said.

“Having said that, we’re not infallible,” Adair said in an interview earlier this year. “I don’t ever want to create a sense of infallibility. A major storm will produce power outages,” he said. A serious hurricane that brings down trees would be an issue, he said.

The state’s two largest electric utilities, Connecticut Light & Power and United Illuminating, have concerns about expanding or creating new municipal electric divisions. UI representatives said expansion would be costly and complex.

“Municipalities would need to raise billions of dollars, in aggregate, to pay fair market value to acquire electric distribution company systems,” the company said in testimony before the Energy and Technology Committee. “This would burden, or overburden, the available bonding authority of municipalities and mean tax increases to the resident-customers.”

Costs were substantially lower when the Wallingford Electric Division was launched in 1899. Startup costs were $50,000, or about $1.3 million in today’s dollars. While the major utility companies pay taxes on the infrastructure they own in towns, municipal utilities return a portion of their proceeds to town budgets.

Stephen Gilbelli — associate general counsel of Northeast Utilities, CL&P’s parent company — said a municipality acquiring the electrical infrastructure within its borders could disrupt service to other towns.

“Utility facilities do not end at each municipality’s border,” he said in testimony. “A distribution system is composed of an elaborate, intertwined electric grid that serves the entire state. Facilities in one town often are a critical piece of another town’s electric supply system.”

State Rep. Vincent J. Candelora, a Republican representing the 86th House District, said he hasn’t received a complaint about Wallingford Electric in his six years representing the district, which includes southeastern Wallingford, North Branford and portions of Durham and Guilford, but has had constituent concerns about other utilities. The district is serviced by Wallingford Electric, UI and CL&P.

Candelora admitted that it would take “significant capital investment” for new municipality utilities to be formed, but thinks it’s possible the current ones could expand their service areas. Regardless, Candelora said legislators want to learn more about the municipality utilities. “They did so well in storm response, it certainly made it easy for us to take a look at what they are doing and what the for-profit utilities are not doing,” he said.

Information from the Associated Press is included in this report.

Zandri to town: Don’t be so quick to scrap

As published in the Record Journal Thursday November 15, 2012

By Laurie Rich Salerno
Record-Journal staff
lsalerno@record-journal.com
(203) 317-2235
Twitter:@LaurieSalernoRJ

WALLINGFORD - Town Councilor Jason Zandri, a Democrat, would like to see changes made in how town departments dispose of supplies. In a sometimes heated Town Council meeting Tuesday, Zandri pressed Mayor William W. Dickinson Jr., Comptroller Jim Bose and Public Utilities Director George Adair on the procedures followed.

He used the Electric Division’s recent replacement of 39 ornamental streetlights as an example. Zandri said the department sent the poles directly to a scrap metal dealer with which it has a standing contract rather than reselling them. He said that he believes that, under town ordinances, Adair should have gone to the mayor, comptroller or purchasing agent Sal Amadeo for resale opportunities before choosing to scrap them.

“I thought that the procedure in town was when any asset is to be retired in town it has to go through the Purchasing Department,” Zandri said.

Zandri quoted a town ordinance that says the town’s purchasing agent is required to, “with the approval of the mayor, to transfer to or between departments or agencies or to sell supplies and equipment determined, after consultation with the head of the department, office or agency concerned, to be surplus, obsolete, or unused.”

Adair said the items were not viable assets and did not need to go through that process.

“Given their status, I don’t view these old, taken-out-of-service streetlight posts as supplies, materials or equipment, nor do they really qualify as surplus obsolete or unused. They’re damaged, unsafe to maintain, undesirable and appropriately viewed as scrap,” Adair said. “I don’t think the question quite fits.”

Most of the 39 lights, installed in 1991 in a first wave of streetscaping, were operational, but Adair said they were valueless, with poor wiring and damage to the poles from general wear and tear and snowplows, and were made in a way that wiring at the base could only be accessed in a clumsy and sometimes dangerous fashion. Electric workers had to lift and hold the 50-pound base rather than simply take off a panel, which is the way the replacement streetlights are accessed. “You’re determining that these had no value, I’m just trying to figure out the procedure here. Is it the purview of the department?” Zandri asked, saying he still feels Amadeo should make that call according to the ordinance. And the ordinance should be changed if it’s not viable, he said.

Dickinson agreed.

“The purchasing office doesn’t’ have the expertise to determine a lot of things like that ... You have to rely on the department,” Dickinson said. “We’re talking about something that does not have a functioning value here. We could not do business if everything — all scrap that’s determined to be trash —has to first be discussed with the mayor and purchasing agent. It was never meant to be that.”

Bose acknowledged that there should be more of a paper trail to such discussions by department heads and the Purchasing Department. He said he knew there had been discussions between Adair and Amadeo, but they weren’t documented.

“It’s probably something we’re going to have to improve upon,” Bose said, saying would follow up with department heads. “There’s just got to be something to see if we can document about how we go about the process. ... It could just be a form; we’ll toss something around.” Zandri said Wednesday that he would continue his push to get the process codified, and was planning to move that council recommend the mayor formalize the procedure for these things around the rules in the charter,” Zandri said.

MY TAKE - New concerns about old lampposts

I have a new post over on Wallingford Politico written by Laurie Rich Salerno from the Record Journal titled New concerns about old lampposts.

I am working on collecting some additional information I want to review and I will want to most likely wish to discuss at the next or immediately following Council Meeting.

At the end of the day it is really this: the Town Charter and the Wallingford Code are pretty clear on what is supposed to occur and in what fashion:

“The Purchasing Agent shall have the authority, with the approval of the Comptroller and the Mayor, to dispose of all unsaleable or unsold supplies, material and equipment.”

Not anyone else.

And the approval seems to require both the Comptroller and the Mayor (not “or” but rather “and”).

This was not the case as the Purchasing Agent was not aware that this activity was going on when I called Wednesday afternoon as he had indicated to me that “normally as part of his duties as the Purchasing Agent that he would otherwise handle “surplus property disposition” whether the decision be to recycle the materials or to try to sell them.

He also indicated on Thursday morning on a follow up call that to find out any further, specific details around the present situation that I should follow up with Mayor Dickinson.”

So this would seem to be yet another case of departments in the town doing what they want at will without respect for what the Charter and the Wallingford Code outlines especially now that I am watching the wagons get circled.

Sad part it – it wasn’t supposed to be a witch hunt; I was trying to get to the bottom of why there was no perceived value to these lights and all of a sudden when I asked why Purchasing wasn’t involved everyone got tight lipped and then suggested I call the Mayor.

There is a quote in the article that reads as follows:

Amadeo says the decision is up to Adair.

“It’s his call; if he’s saying it’s scrap, it’s scrap,” Amadeo said of Adair. “Stuff that is deemed saleable, they would send back to us to sell.”

So let’s take a look at the beginning of the Wallingford Code at 43-14:

The Purchasing Agent, with the approval of the Mayor, shall transfer to or between departments, office and agencies, or sell supplies, materials and equipment, determined, after consultation with the head of the department, office or agency concerned, to be surplus, obsolete or unused.

The Mayor gave no approval as the Purchasing Agent told me on the phone that he wasn’t full aware of the activity going on as the Public Utilities Director hadn’t been in contact with him regarding the work and that the Public Utilities Director was handling the activity and that if I wanted more details I would have to contact him.

Additionally, the way this reads, even if a prior discussion occurred the task should have been handled by the Purchasing Agent and not the Public Utilities Director or the staff.

The Purchasing Agent, with the approval of the Mayor, shall transfer to or between departments, office and agencies, or sell supplies, materials and equipment, determined, after consultation with the head of the department, office or agency concerned, to be surplus, obsolete or unused.

In my opinion the conversation, that never happened, should have gone like this according to our own ordinances, code and charter:

Public Utilities Director: “Hey Mr. Purchasing Agent, “We (the Wallingford Electric Division) don’t consider (these assets) suitable. We (the Wallingford Electric Division) do not want to perpetuate the use of them. We (the Wallingford Electric Division) consider them truly to be scrap.”

Purchasing Agent: “Thanks Mr. Public Utilities Director, let me get a hold of the Mayor and get the approval to surplus these obsolete assets.”

Purchasing Agent (dials the phone): “Mr. Mayor – I have the Public Utilities Director here in my office and he wants to recycle these obsolete assets; according to the Town Charter and the Wallingford Code, I need the “OK” first before I take on this effort”

Mayor: “If the Public Utilities Director says that they are inadequate, they are the department in charge of that asset, so I am good with that assessment and you can perform the duties as assigned.”

Purchasing Agent (to the Public Utilities Director): I have the approval to do this work; we can go ahead with the recycling if you think that is the best, most cost effective way to deal with the asset that is being retired.”

As to whether these assets really are “truly to be scrap” and have no value all I can say is “one battle at a time.”

Stay tuned.

New concerns about old lampposts

As published in the Record Journal Saturday October 27, 2012

By Laurie Rich Salerno
Record-Journal staff
lsalerno@record-journal.com
(203) 317-2235
Twitter:@LaurieSalernoRJ

WALLINGFORD — Jason Zandri has joined a small group of town councilors in questioning the decision by the Public Utilities Department to sell used ornamental lampposts for scrap instead of reselling them intact or reusing them elsewhere in town. Some other councilors say they trust the department’s call. Zandri has been talking to town staff and blogging in recent days about the lights, saying that he believes purchasing agent Sal Amadeo should have been the one to make the call as to whether the lights could be resold as is, not the Public Utilities Department.

“To me, the procedure should be that those are assets, the purchasing agent should have said these are scrap and then (utilities Director) George Adair should have been able to scrap them,” Zandri said.

Amadeo says the decision is up to Adair.

“It’s his call; if he’s saying it’s scrap, it’s scrap,” Amadeo said of Adair. “Stuff that is deemed saleable, they would send back to us to sell.”

The town-run Electric Division has been working to replace 37 ornamental lampposts that were originally installed during streetscape projects in the 1980s and 1990s. Adair says the poles are operational, but in poor shape, having been damaged by snowplows and weathering over the years. He said their construction also makes it difficult to get to wiring inside the base, forcing workers to lift the 50pound aluminum base to get inside.

The new poles have an access panel at the base. They cost just more than $3,000 apiece, and though a Wednesday Record-Journal article erroneously stated that that the funding for them came from a yearly town allocation, the replacement poles are part of normal operating costs that actually come from Electric Division revenues, Adair said.

The old poles are being disassembled and sold to a scrap dealer under a contract the dealer holds with the town.

Town councilors Craig Fishbein, a Republican, and Nick Economopoulos, a Democrat, said Tuesday that they felt the department could have reused the poles for other projects in town, such as the temporary Wooding-Caplan parking lot that is being constructed, or resold them intact for a higher price than they believe scrapping them would fetch.

Adair says the poles are basically unusable. “These are beat up; they’ve done their duty, they’ve seen their day.” Zandri said he believes the lights could have a higher resale value intact, comparing them to computers he has resold.

“A computer that might be scrap to me ... because I’m a power user ... I can rebuild it and sell it to somebody for 100 bucks because they just want to use the internet and do email on it,” Zandri said.

Other councilors said they had faith in the Public Utilities Department’s decision.

“I hope George Adair is making the best decision for the town of Wallingford, both from a fiscal standpoint and using good judgment here — and I’m sure he is,” said Councilor John Sullivan, a Democrat.

His Republican colleague, Tom Laffin, agreed, saying he doesn’t believe in micromanaging town staff.

“I trust the experts that carried us through the last storm and will this storm to know what they’re doing,” Laffin said, mentioning Hurricane Sandy, which is predicted to hit the area early next week.

Zandri said he wants to know what the actual procedure in place is and whether it’s being followed consistently by town employees and said he plans to continue to follow upon the issue, possibly requesting the issue to be placed on a future Town Council meeting agenda.

The town’s purchasing ordinance says that the purchasing agent has powers and duties, with the approval of the mayor, to sell “supplies, materials and equipment, determined after consultation with the head of the department, offices or agency concerned to be surplus, obsolete or unused.”

Mayor William W. Dickinson Jr. said he thought the old poles were handled appropriately.

“I don’t think very many people would see a used street light pole and fixture as something that would have general value,” Dickinson said. “If you have a table or a chair — that people can use — they can offer to other departments, they can be auctioned. In this case, I just don’t think there’s a market for used ornamental light fixtures that the department in charge of them are saying are inadequate.”

Scrapping light poles: Is it such a bright idea?

As published in the Record Journal Wednesday October 24, 2012

By Laurie Rich Salerno
Record-Journal staff
lsalerno@record-journal.com
(203) 317-2235
Twitter:@LaurieSalernoRJ

WALLINGFORD — The town is replacing 37 of its 160 ornamental streetlights and selling the used poles for scrap metal, but some town councilors believe the old poles could be reused.

The Electric Division has spent the last few weeks replacing what Public Utilities Director George Adair says are the oldest decorative aluminum light poles in town.

The lights were erected during streetscape projects over the last three decades, said Mayor William W. Dickinson, Jr. The earliest was in the late 1980s, the most recent in the early 2000s.

Adair said the poles being replaced are in poor shape, having taken a beating from snowplows and the elements over the years. They are also difficult to fix, he said. Their 50-pound aluminum bases need to be lifted every time workers need to get to the wiring inside.

“They were just a pain in the neck for maintenance,” Adair said.

The new streetlights have a panel at the bottom that can be removed so workers can more easily get to the wiring. The old lampposts are being disassembled and will go to scrap metal dealer Albert Brothers in Waterbury, with which the department has a standing contract, Adair said.

Town Councilor Craig Fishbein, whose law office is on South Main Street where poles have been replaced, said they look nice but he thinks the still-operational streetlights should be reused by the town.

“I guess it’s typical of government to take a working product and reduce it to scrap metal as opposed to recycling,” said Fishbein, a Republican.

Fishbein and fellow Town Councilor Nicholas Economopoulos, a Democrat, said they think the old poles should be placed around town, perhaps at the town-owned Wooding-Caplan site, which is set to be paved as a temporary parking lot.

“Since that’s supposed to be a temporary fix, why couldn’t we use those lights temporarily?“ Fishbein said.

Adair said the division wants the old poles out of circulation.

“We don’t consider them suitable. We do not want to perpetuate the use of them. ... We consider them truly to be scrap,” Adair said. “It’s not something we have interest in at all.”

The change, he said, will allow his workers to deal with streetlight problems more quickly.

Town Councilor John Le-Tourneau, a Republican, disagreed with his colleagues, saying restoring the poles might be more costly than replacing them. “It’s not just a matter of we’ll put them in storage and take them,” LeTourneau said. “When you reach into rehabbing something that’s been problematic anyhow, what’s your cost savings? At the end of the day it might just be cheaper to replace them with something that’s going to function better.”

Dickinson said the new streetlights do not have any specific energy-efficient technologies, such as LED lighting, which Fishbein said he’d like to see.

For ornamental lights, though, “there is not a LED product that the department has confidence in now,” Dickinson said. The new poles cost just more than $3,000 each, Adair said. Though the Electric Division is an enterprise fund, much of the funding for the new poles came from a yearly town allocation, Adair said, as approved by the town council in the fiscal year 2011-12 budget.

About the project, Dickinson said, “this grows out of the whole effort to ensure that the lights were on. It’s progress, we’re trying to make them better.”

Christopher Zajac courtesy of the Record-Journal

A new streetlight stands along South Main Street in Wallingford, one of 37 replacements scheduled.