Loading...
HomeMy WebLinkAbout2016-06-29 Finance Committee Minutes - Executive SessionOWN OFR Town of Reading :I Meeting Minutes ,..• sJ9. 1MCOPp�Pr� Board - Committee - Commission - Council: Finance Committee Date: 2016-06-29 Building: Reading Town Hall Address: 16 Lowell Street Purpose: General Business Attendees: Members - Present: irZECEIYED TOWN CLERK RD"NOING. Mr SS. 2011 gR 2 S A II: Ob I Time: 7:35 PM Location: Conference Room Session: Executive Session Version: Chair Mark Dockser, Paul McNeice, Anne Landry, David Neshat, Paula Perry, Peter Lydecker, Vanessa Alvarado, Marc Moll Members - Not Present: Craig Merry Others Present: Town Manager Bob LeLacheur, Superintendent of Schools Dr. Doherty, Town Accountant Sharon Angstrom, School Committee Chair Jeanne Borawski, Selectmen Dan Ensminger, Adminisitrative Assistant Caitlin Saunders, Dave Doneski Minutes Respectfully Submitted By: Topics of Discussion: Mr. McNeice Move to go into Executive Session to discuss strategy with respect to litigation and that the Chair declare that an open meeting may have a detrimental effect on the bargaining position of the body, and to reconvene in Open Session at approximately 8:15pm. Mr. Dockser so declares that an open meeting may have a detrimental effect on the bargaining position of the body The motion passed with a roll call vote as follows: Marc Moll — Yes Vanessa Alvarado — Yes Peter Lydecker — Yes Paula Perry — Yes David Neshat — Yes Anne Landry — Yes Paul McNeice — Yes Mark Dockser — Yes Dr. Doherty explained this session is to update the Finance Committee on the TLT Litigation regarding RMHS. The litigation started in January of 2006. Dave Doneski was present to give a full update on where the litigation is currently at. TLT is claiming they are owed a substantial amount of money for change orders. The Town noted they can hold the money for damages. Page 1 1 From 2007-2013 normal litigation work for a construction case took place. In 2013 the case was assigned to a Master because of the amount of details. Brackett + Lucas withdrew from the case in January of 2014 suspending the case until May 2014. The case took hiatus between July of 2014 and January of 2015 because TLT was involved in another case. The Master decided to go piece by piece with decisions and so far he has given back drafts on 4 matters. The first issue about the asbestos went in TLT's favor. The second issue about the track went in the Town's favor. The Town claimed TLT did not do some work they were supposed to. TLT claims they had change orders. TLT got most of what they were looking for in change orders. The Town got most of the money for the contract. In April the School Committee discussed what it looks like if TLT wins, which is a real possibility. At this point, if they do win, they will get over 100% because of interest and how long it has been. The Town has made some offers to TLT and they keep denying them. If the Town wins, we will get a credit of 1.6 Million, however it is not looking like we will receive that much. Another draft should be coming soon. The Master will give a final report then it gets sent to the supreme judge for review. Realistically, 2017 is most likely the earliest we will get a decision. Mr. LeLacheur noted there is a bill in about that 12% interest number and if it passes we could get market rate. TLT is no longer a functioning company. Ms. Perry noted the interest amount is crazy. Mr. Moll asked if the Town appeals the decision, does the interest keep going and it was answered yes. Mr. LeLacheur asked if TLT appeals, does the interest keep going and it was answered also yes. Mr. Neshat commented it looks like they will get about 10 or 11 Million if they win with the interest. Ms. Perry asked if there was still money in the fund and it was answered yes. Mr. McNeice asked when/if we settle, where is this money coming from? Mr. LeLacheur noted the construction fund, issue debt, borrow some, free cash. Town Meeting will have to approve it regardless of where it comes from. Ms. Perry asked what happened to our counsel and Mr. Doneski noted he asked to withdraw from this case. Page 1 2 Mr. McNeice asked how we go about giving the public a certain amount of information considering we are about to ask them for an override and then we may have to turn around and ask them for more for this litigation. Ms. Perry agreed noting they need to prepare the town but is not sure how to do it. Ms. Landry asked if they are allowed to say there is pending litigation and it is most likely, more than we allocated for. Mr. McNeice suggested at least putting it out there that something is going on and that they cannot talk about just so they are not blindsided. Ms. Barowski suggested saying the Board of Selectmen and FINCOM are aware and involved but we just can't talk about it yet. Ms. Landry suggested making a presentation at Special Town Meeting. Mr. Dockser asked how we can set aside some money to prepare for this. Mr. Ensminger inquired about what the next steps are. We need to wait and see what the Master comes back with. Mr. McNeice made a motion to adiourn the executive session at 8:36 PM, the motion passed with the following roll call vote: Marc Moll — Yes Vanessa Alvarado — Yes Peter Lydecker — Yes Paula Perry — Yes David Neshat — Yes Anne Landry — Yes Paul McNeice — Yes Mark Dockser — Yes Page 1 3