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HomeMy WebLinkAbout2018-11-14 RMLD Citizens Advisory Board Minutes • rN E Town of Reading Meeting Minutes RECEIVED °-,,,:,�o•pa TOWN CLERK READING, MA. Board - Committee - Commission - Council: ZP RMLD Citizens Advisory Board 2919 APR 22 AM 10; 08 Date: 2018-11-14 Time: 6:30 PM Building: Reading Municipal Light Building Location: Winfred Spurr Audio Visual Room Address: 230 Ash Street Session: Open Session Purpose: General Business Version: Final Attendees: Members - Present: Mr. Dennis Kelley, Chair (Wilmington); Mr. Jason Small, Vice Chair (North Reading) Mr. Neil Cohen (Reading) Members - Not Present: Mr. Vivek Soni, Secretary (Lynnfield); Mr. George Hooper (Wilmington) Others Present: Mr. Phil Pacino, Board of Commissioners, and Ms. Vanessa Alvarado, Reading Select Board Ms. Caleen O'Brien, Mr. Hamid Jaffari, Ms. Kathleen Rybak, Mr. 1 Underhill Minutes Respectfully Submitted By: Mr. Dennis Kelley, Chair Topics of Discussion: 1. Call Meeting to Order - D. Kelley, Chair Chair Kelley called the meeting of the Citizens'Advisory Board to order at 6:30 PM and noted that the meeting was being audio recorded. 2. Approval of Minutes - D. Kelley, Chair Materials: Draft Minutes from September 19,2018,meetings. Mr. Cohen made a motion that the Citizens' Advisory Board approve the Minutes of the September 19, 2018, meetings as written, seconded by Mr. Small. Hearing no further discussion, motion carried 3:0:2 (3 in favor, 0 opposed, 2 absent). 3. General Manager's Update - C. O'Brien, General Manager • Director of Integrated Resources Ms. O'Brien introduced Mr. Charles (Chuck) Underhill, the new Director of Integrated Resources. Mr. Underhill gave a brief overview of his experience and initial assessment in IRD. Ms. O'Brien noted that IRD will focus on strategic planning, key accounts, and areas for economic development. Ms. O'Brien and Mr. Underhill asked if there were any specific request that the CAB had for IRD. Chair Kelley asked that town-specific data be included when any cumulative data is being presented. Pape I 1 • Town Meetings - Board of Selectmen Meeting Dates and Agendas Ms. O'Brien reported that she is presenting at Reading Town Meeting on November 15. The presentation slides (which include information that will be Included in the RMLD Annual Report) were forwarded to the CAB along with the GM's letter, which is typically the first page in the RMLD Annual Report. The theme for this year's annual report is "electrification." The Town actuarial report, which confirms the OPEB and pension numbers for RMLD has not yet been completed, which is delaying the RMLD audit report and annual report. Ms. O'Brien reported that she does not anticipate any issues with the audit. However, loss of kilowatt hour sales will come in at about 1.5%. Once the audit report is completed the annual report will be finalized. Select Board presentations are as follows: Wilmington on Monday, January 14; North Reading on Monday, January 28; Lynnfield on Monday, January 7. A Reading Select Board presentation will be scheduled after January. Ms. O'Brien noted that she meets with the individual Town Administrator/Manager prior to the Select Board meeting to review her presentation. If CAB members have specific items they would like her to discuss with the Town Administrator/Manager or Select Board they should let her know. 4. Review of Recent Weather/Outage Issues - H. Jaffari, Director of E & 0 Materials: Recent Major Outage Events Due to Weather/Trees (handout) Mr. Jaffari provided a review of recent outages occurring October through November 3. Mr. Jaffari noted that the recent above-average rainfall has had an impact on tree roots making them unstable. Ms. O'Brien noted that an increase in "strangle weeds" on trees is impacting the trees as well, which is a concern for the winter months. Mr. Jaffari reviewed the RMLD Reliability Indices (through September), which remain below national and regional averages. However, it is anticipated SAIFI will go above the regional average because of storms in this area. 5. Payment to the Town of Reading - C. O'Brien, General Manager Materials: Historical documentation regarding the history of the Town Payment (handout) Commissioner Pacino was present to give an update on the work of the Sub-Committee for the Payment to the Town of Reading. Mr. Pacino distributed and reviewed historical documentation regarding the Town payments dating back to 1949. In 1998 the present formula was set. At the last Sub-Committee meeting, the General Manager's study was presented. The bottom line of the study is that at some point decreased kilowatt sales are going to converge with what RMLD can afford in order to maintain the system and it will be a problem at that point. Mr. Pacino stated that he had proposed to the Sub-Committee that the payment be potentially frozen for the next two years, and then the annual payment would be determined by some sort of formula. Mr. Pacino noted that this was his opinion and not the opinion of the Commission. Mr. Pacino noted that there was not much discussion of that proposal by the Sub-Committee, and that there were no counter- proposals. Mr. Pacino reported that the Sub-Committee would like to determine whether a facilitator is necessary, and he was asked to discuss with the CAB the use of a facilitator. Mr. Pacino noted that should the CAB want to put a facilitator in place, the cost would be split equally between the Commission and the CAB budgets. The group discussed the role a facilitator would play. Mr. Kelley noted that this issue is really about the Town of Reading's budget, not RMLD's, and did not see why the CAB would pay for a facilitator. Mr. Small noted that a facilitator will usually facilitate between two varying and conflicting viewpoints and maybe two conflicting proposals and bridge the gap to get to some sort of middle ground. There has been only one proposal and there's been no counter proposal from the Town. Chair Kelley thanked Mr. Pacino for the update noting that it sounds like we are in a holding pattern with not a lot of detail or movement. Page 1 2 y I y 6. Upcoming Meetings - D. Kelley, Chair The group agreed to tentatively schedule a Board meeting for December 19th depending on the need to meet. 7. Adjournment - D. Kelley, Chair Mr. Cohen made a motion to adjourn the Citizens' Advisory Board meeting, seconded by Mr. Small. Motion carried 3:0:2 (3 in favor, 0 opposed, 2 absent). The CAB meeting adjourned at 7:09 PM. As approved December 19, 2018. 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Article 1.from motion mode by Kenneth was it was voted to take Article 1 Prom table. The following was rend by Y/i 1.1 lam McKinnon: December 5, 1949 Town Meeting Members Town of Reading Reading, Massachusetts Gentlemen: The committee appointed in accordance with your vete of March 29, 1949, to recommend a formula for deter- mining the amount to be contributed by the Municipal Light Department each yesr to the Town of heading in lieu of taxes is pleased to submit a report. A number of meetings have been held, at which nil members of the committee were present. The problem was dis- cussed at considerable length in order that each member might become familiar with all the points brought out by the Munloi- pal Light Board and the Finance Committee in their previous idiscussions of this problem. Facts and figures were requested --. of the Light Department and were nrovlded. In attempting to arrive at an equitable solution, the coahiU.. hes been acutely aware of the following vital points: 1. The municipal Light Department should con- tribute some amount to the Town each year in lieu of taxes. 2. The Town should be able to know with some dogree of certainty t¢a amount which will be contributed from year to year. S. Provision should be made for a reasonable amount of necessary expansion and reelece- ment of aiuipment. The nmonnt of contribution should not be beyond tie ability of the Light Department to pay out of profits. The committee lulz carefully considered these and a number of other factors In arriving; at what is believed to be a reasonable and workable formula. It is the r oc.,lu.ndati.n of this committee that: "The amount to be contributed in oach year by the Municipal Light Department to the Towp of Beading In lieu of kaxea shall be 2;y$ of the 'Cost of the Plant and General Equi?meat' as of Oeaoriber t'uirty-first of the preceding year plus 10'% of the Net Income as shown by the 'Summery of Iw wrca and Expenses' of the Municipal Light Department 1'ar the said preceding year." Had this formula been used in determining the can- tribution far 1949, the amount would have been i 23:= of Cost of Plant & Ganernl Ecui, mant as of Dec. 31, 194A ,y'37,041.80 10.' of Net Income for 1948 ($70,030.24) 7,003,82 Total Contribution $44,845.02 Increased rates in effect for the last half of 1949 should make the amount contributed for 1950 somewhat higher, since part of the contribution is based on net income. The full effect of the recently increased rates will not be realized until the following year when the Light Department will benefit from a full year of higher rates. Based on an estimate made as of the end of October this year, the 1950 contribution would be approximately: 2.W of Cost of Plant & General Equipment as of Dec. 31, 1949 ($1,525,000) $38,125.00 10% of Net Income for 1949 ($100,000) 10,000.00 Eatima ted Total Contribution for 1950 $48,125.00 It is the unanimous opinion of the members of your committee that the use of this recommended formula will aovom- pllah the desired result, namely, to turn over to the Town Treasury a reasonable awn each year which the Light Department can meet out of current profits and at the some time provide funds for necessary and desirable expansion and replacement of equipment. Respectfully submitted, OIiARLcS P. A14D::RSON WALTER F . N'OSiLIGH JOSEPH N. Nazi) HOWARD L. ROGiRS YIILLIAM D. VAGKi NN01 OjiAIR%dAN On motion made by Kenneth Latham, it was voted to accent the shave report. Un motion of Kenneth Latham, it was voted that Article 1 be laid I er. Y.::e table. l r ti cls 0i m, r, of Ke ins t2 w Lath;va, it as vo L ed to Lo ba ^ 3. Article 3 1,1,, c:,e ta�1B. Artiels 3. On motion of Kenneth Latham, it was voted that there be and hereby is established the following standard method to be followed each year for dotermininr thn amount the Electric L1nht Do- partment shell turn over to the 'Town in lieu of Lazes: An amount equal to 2e% of Cha cost of t'ne Plant and Oenerol Ecuipment as of December 31st of the pre- ceding year plus 10" of two net Income as storm by the Summary of Income and Expenses of the Municipal Light Department for the said nrocedinv year. On motion of Kenneth Latham, it was voted that Article 1 be taken from the table. On motion of Kenneth Latham, it was voted to indefinitely post- pone Article 1. On motion of Kenneth Latham, it was voted to adjourn, Sine Die. Adjourned 10:50 P. M. Attest: fiL���9� '1'O�U1.17 K J Mr Lessard s-ated ne and Mr Mastrullo had a tot of discussion over the questions and after they received the answers to Ine first questions, more questions were raised. What ne read regarding this issue)ad nim to believe there might be a problem. Mr Lessard called for more questions regarding this issue. Mr. Garret wondered if there were some way the CAB could oe advised in the future of an unexpected expenditure such as This 'itiga(ion in order to alleviate this problem. I Mr. Cornell stated after reading the material, he felt RMLD was completely in the right from his perspective regarding the CRAB and if the Retirement Board were able to pick and choose groups for employees,there would be mayhem. Mr Lessard disagreed witn using the ratepayers money for this litigation. i Mr Rucker stated on the RMLD Board Agenda, under the GM Report,port,he alerts me Board to something which may become an issue, and fell a similar report could be included with the CAB agenda. He stated RMLD could produce a separate litigation report relative to upcoming or possible litigations. Mr. Gehret staled he thought the suggestion was a good one and did not want a detailed report but more of an informative report Mr. Rucker suggested he try the GM Report first to see if it works. Mr.Corbett fell that way,there would be no surprises. Mr. Fournier noted Pg. 13 of the monthly financial report lists the big items B. Concept of a Sub-Committee on the issue of'in lieu of taxes'. ` t Mr. Lessard noted the CAB had not taken a vote to form this sub-committee. Mr. Rucker stated he had spoken to the Commissioners and wanted to make a strong recommendation to pursue (his concept because this issue has always been controversial. He also recommended the Boards retain the services of a professional facilitator since it is a difficult issue. Mr. Lessard suggested the item be tabled to the next meeting in hopes Mr. Bartlett would be back. Note: When Mr. Lessard learned Mr. Bartlett would not be returning until Ina first week of April he withdrew his suggestion. Mr. Comes wanted to go forward to have a subcommittee. Mr. Gehret agreed but ne did not wish to onng in a faciliator immediately. 'He wanted to set a date such as after four meetings if there is no recommended formula to then oring in a facilitator. Discussion ensued relative to lire cost of a facilitator. Ms Bernal fhougnt a facilitator may cost oetween$8000 to$100.00 per hour Mr Conceit mace Ina foilovring motion: MO PION to go furwe.rd m create a s,.be:oinmiuee of hvb menoers frcrn on Board of Commsstone•s, Pnc members from the CAB a,d one member from he Town of Rearing to mutually recommend a formula for the paymen'.to tine Town of Reading, and line sun rnmmiltee has the power to engage a facilitator if they so need to use the services. v Secondeo by Mr.Maserullo. No discussion. All in favor. Voted unanimously. Mr Rucker thanked the CAB members. Mr. Boissonneau questioned where the money would care from to pay for the facilitator. Mr. Corbell and Idr. Gehret stated it would be Split between the CAB Budget and the RMLD Board Budget: Mr. Boissonneau stated the ratepayers money. C. Tuition Reimbursement. Mr. Lessard stated his concern an employee can leave and get 90% tuition reimbursement and if you stay an employee gels the other 10%. There are no guarantees,no way for payback. Mr. Rucker slated it was a valid point, one that has been struggled with in writing the current policy. Policies do get revised. He noted there are presently three people who nave gotten cr are gelling their MBA's. One quit,the others did not. Questions arose relative to Mr.Grasso's reimbursement. Ms. Bernal explained Mr. Grasso has received a total of $20,004, and t he stayed he would be eligible for another $16,843. She also noted his military grants are deducted from his payment. Mr. Comet asked if Mr.Grasso s courses fa the spring were pre-approved. Mr. Rucker answered yes out he will not de reimbursed for too final third. Mr. Corbell questioned if Mr.Grasso's leaving would jeopardize Ine conversion. Mr. Rucker stated no. Mr. Ed Foley noted ne had received a letter on January 7, 1998 relative to Mr Grasso's tuition and the figures were different from those just given, Mr. Rucker explained, the figures in the January 7" letter were a projection which took rite consideration the whole program. Mr Rucker explained Peal. Marwick had completed a favorable report relative to MIS The report shows that MIS has cured all the issues and accomplished a great deal in a short span of time. As a result RMLD is neared in right direction for the year 2000 D Traning and Tut1on AnU5jJ Mr Rucker stated he pushy tuition for existing management because of moving from a monopoly to a competitive environment, management will be the group to get RMLD through the t-ansdron There were no additional questions. 6 February?], 1998 Regular Minutes 4. Action Items a. Approval of 1998 Operation Budgel Motion by Mr. Burditt to take Item 5B, Approval of the 1998 RhfLD Operation 1 Budget,off the table. Mr. Stvyter seconded. The motion passed unanimously. i Mr. Burditt moved that the Board vote to approve the 1998 RMLD Operation Budget, ! expenses not to exceed$57,170,486.00 as presented on the recommendation of the General Manager, Assistant General Manager,R&C, and the Board Operating Budget Subcommittee, Mr. Sw)aer seconded.The motion passed unanimously. b. Joint RMLB/CAB/Town Subcommittee Discussion ensued among the Commissioners and the Selectmen guests about the feasibility of forming a subcommittee and the amount to be transferred from unappropriated earned surplus to the town of Reading. Mr. Pacino moved that Commissioners Ames and Burdin be appointed to ajoint subcomrruttec of the RMLB and CAB. This subcommittee is to be charged with developing a recommendation by May 1, 1998, preferably in the form of a formula, that each body will use to determine 1998 and future transfers from unappropriated earned surplus to the Town ofReadmit. The subcommittee is further authorized to expend up to$5,000 for a professional facilitator should a majority of the subcommittee su vote.Mr.Swyter seconded.The motion passed unanimously. / c. Appointment of One Representative from the Board of Selectmen to the Joint ✓ RhfLD/C.AB Subcommittee. b6 Burditt moved that the Board of Selectmen of Reading he requested to appoint one representative to the joint RMLD/CAD subcommittee on future transfers from unappropriated earned surplus to the Town of Reading. The Seleciperson shall call the meeting to order, and that representative, so appoimcd,will call The first meeting of this joint board, and that such a person be desigmated as Chairman Pro Tem for the sole purpose of calling the first meetin.- to order. Mr. S",Acr seconded. Motion passed unanimously, At this point the Chair teas passed Gom Mr Hughes to Mr. Pacino. Mr. Burditt nenrained as Secretary. 5. Second Presentation on the 1998 Cost of Sen'ice Srudv (C.O.S.S.) The C0 S . 'k 1111% Cued to unbundle the scasona rat. sinemra A•.r C':nneron answcred .)'esuons prescntcd by Mr Sr+'wer. Board of Selectmen Meering - March 3 1995 -nage 4 RMLD/CAB Subcommi tee re_ Earnings Distribution - Camille Art'hony filled the Board in on the RMLD/CAB Subcommittee, Dan Ensminger asked why the Citizens Advisory Board cares about the earnings distribution to the Town of Reading George Hines noted that unless we participate in this kind of process, the issue will die. He recommends that we proceed with a process involving the CAB, the RMLD and the Board or selectmen to establish an earnings distribution formula lie recommended that Camille Anthony be the representative on this committee. On motion by MacDonald seconded by Ensminger, the Board of Selectmen agreed to participate in the Subcommittee made up of two members of the Reading Municipal Light Board and two members of the RMLD Citizens Advisory Board, along with a single member of the Board of Selectmen of the Town of Reading. The purpose of the Subcommittee will be to develop a formula for the annual increase in the earnings distribution by the RMLD to the Town of Reading as owner of the Light Depanment. Camille Anthony as Chairman and liaison will serve as the Board of Selectmen member to this committee with the Vice Chairman of the Board of Selectmen as an alternate The motion was approved by a vote of 5-0-0. The Board made recommendations on some of the Warrant Articles for the Special Town Meeting as follows: On motion by Ensminger seconded by Hoyt, the Board voted to recommend the subject matrer of Article 3 by a vote of 5-0-0. On motion by Ensminger seconded by Hoyt, the Board voted to recommend the subject matter of Article 4 by a vote of 5-0-0 On motion by MacDonald seconded by Ensminger, the Board voted to recommend the subject 1 matter of Article 5 by a vote of 5-0-0. On motion by MacDonald seconded by Hoyt, the Board voted to recommend the subject manes of Article 6 by a vote of 5-0-0 - On motion by MacDonald seconded by Hines, the Board voted to recommend fire subject matter of Articles 9 and 10 by a vole of 5-0-0 On motion by flings seconded by Ensminger, the Board voted 10 not recommend the subject i matter of Anicles 1 1 and 13 by a vote of 4-1-0, with Hoyt opposed i On motion by [lines s:conded by Ensminger, Ibc Board voted :o recommend the tabling of Ariclec I; and 17 by a vote of A 1-0, Wbb Hoer opnoyed t i A npro,ni of Minu r es On m000r by Epsnoneer s['saaded b, Mx:Docald, the Board otecl to approve the minutes of thty mcct:n_4S a` Nos^efber 5. lou' Cn•.^_inh_: 14, 1597, lanuary b, 1995, Ja•nmo, 20. 1995, F'hmat' i. 19'!5, rebmz-y 10. 1995. l00o.an. 11-. Ic . F,Sm:arp 17, 1995, is an-en&d, by a CITIZEN'S ADVISORY BOARD MEETING MINUTES Time 7:00 P M. - Date: 12 March 1998 t Place: Reading Municipal Light Department Present: Messrs. Lessard, Mastrullo,Corbett and Gehrel jCAB) 1 1. The Secretary called the Meeting to order at 7:05 P.M. i 2. Appointment of two CAB Members to a joint subcommittee. Motion: Move that Kenneth Mas[rullo and Joe Gehret be appointed to a joint subcommittee of the RMLD and CAB. This subcommittee is charged with developing a recommendation by May 1, 1998, preferably in the form of a formula, that each body will use to determine 1998 and future transfers from unappropriated earned surplus to the Town of Reading. j The subcommittee Is authorized to expend funds for a professional facilitator should a majority of the subcommittee so vote. The subcommittee is authorized to spend funds not to exceed $5000. Seconded Mr.Corbed. D60LSsion-None. Motion approved unanimously. Note: Mr. Rucker entered the meeting at 7:18 asking if the CAB had any questions. Discussion ensued relative to rate stabilization and capital projects. 0, Other Items for Dfscusslon. Nonc. d. Schedule Next Meeting. Tne CAB would schedule a meeting after a report back from the subcommittee. 5. Adjournment There being no further business on a motion made by Mr. Mastrulto and seconded by Mr. Corbell, the Board adjourned at 8:30 P.M. All in favor. Unanimous. Respectfully submitted, Rage, Lessard Secretary qr-,o CITIZEN'S ADVISORY BOARD MEETING MINUTES Time: 7:00 P.M. Date: 20 May 1998 Place: Reading Municipal Light Department Present: Messrs. Bartlett,Corbett,Gehrel, Lessard,Mastrullo(CAB) Maser.Richard Murch, Ms.O'Leary(RMLD) 1. Call Meeting to Order. Chairman Bartlett called meeting to order at 7:08 P M. 2. Minutes of 28 January 1998 Meeting. Motion was made by Mr.Mastrullo to approve the minutes. Seconoed by Mr. Gehret. Mr.Lessard noted on pages 7 and 8 Mr,Wendell's name was spelled incorrectly as Randall. The minutes were approved as amended with 4 in savor and 1 abstaining. Mr. Bartlett abstained because he did not attend the meeting. 3. Subcommittee recommendation for calculating the 1998 and future transfers from un- appropriated earned surplus to the Town of Reading. Mr. Mastrullo and Mr. Gehret reported on the subcommittee's meetings. Mr. Gehret discussed the suggested motion (see attached). Mr. Lessard had some concerns with the wording of the motion Mr. Mastrullo felt rhe subcommittee had made goad progress. There was much discussion back and forth between the boards. Although the meeting began somewhat tense,lne more discussion which took place, the more comfortable the meeting became. Mr. Gehrel fell similarly and related how the members looked at various formulas and decided the CPI, the present method was the best formula. The members also fell it was important that the payment could be revisited at any time by reconvening the committee. Discussion continued on the formula, the CPI, and the committee meeting annually no that the various Boards could discuss any issues or concerns. Mr. Garret made some changes in the wording and made the following motion'. Witn regard to transfers from un-appropriated earned surplus to the Town of Reading by the Board, MOVE that the Citizens'Advisory Board requests the Reading Municipal Light Board 10 establish a benchmark payment of $1,560,414 for calendar 1998: and that in subsequent years the payment will be changed by the consumer'; pr index for the previous year, and that either the Light Board o71 a gzens'Advisory Board lMotigh fhg_._ Ligh--1 Uoaim ary ask that a committee be convene3to review This payment at anytime Mr Corbett seconded motion Discussion ensued relative to the proposed annual meeting, which all members believed was a good idea. Motion was approved unanimously, 5-0. Mr Gel staled he would pass on the changes and requested a copy of the approved motion be sent to me Lign1 Board and a copy t0 the Selectmen. Fcsdiag D•lumapi �:pb:3oa-c 730 ssn Saes.nec'_ cg. ill--. 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