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Home My WebLink About1988-09-27 Finance Committee Minutes 4 MINUTES OF THE READING FINANCE COMMITTEE 9/27/88 Members Present: Mr. Donald Allen, Chairman Mr. Brian McMenamin, Vice Chairman Mr. Charles Catalfamo Mr. Paul Devlin - Mrs. Elizabeth Greene Mr. Randolph Harrison, Jr. Mr. Dean Haskell Also Present: Mr. Phil Pacino, R M L D Mr. Len Rucker, R M L D Mr. Fred Numegut, R M L D The meeting was held at the Employee Lounge at Town Hall at 7:30 P.M. 4 A. ACTION ITEMS 1. Reading Municipal Light Department Presentation Mr. Phil Pacino was introduced by Chairman Allen and took the floor. Mr. Pacino introduced Mr. Len Rucker and also Mr. Fred Numegut of the R M L D. Presentation was made of the 5-year management model-base by Mr. Rucker, and expenses were outlined at that time. Reserves were discussed (5 %, million dollars). (Pension Reserves are handled by the Trustees of R M L D ). Possibility of selling the present facility for larger quarters was discussed. Dean Haskell brought forth bond market discussion and conversation continued with Mr. Pacino. The year 1990 will be designated as time for R M L D to be in the bond market. Mr. Rucker proceeded with ex- planations of the budget and modelled the plan. Don Allen asked about the Seabrook Plant and exactly what revenues it represented. Rucker suggested that R M L D ford own a portion of the facility in Seabrook - but most of Seabrook's costs are absorbed. Rate comparisons entered discussion here, and Mr. Rucker stated that the Town of Reading's rate is very low out of 41 utilities. The system of R M L D is in "good shape" , according to Rucker. _1_ J Mr. Allen brought forth discussion of contract negotiations and contract issues. Any future bonding will go through the Town. However, the need for bonding may disappear, according to representative Rucker. Any future worries that the Town of Reading may encounter were questioned here by Chairman Allen. With regard to rate stabilization, Mr. Rucker explained that the rates have been stable now for four or five years and he does not see a drastic change. Don Allen then questioned the power supply in the next ten years. Mr. Rucker stated he sees no problem in Reading. Regionally, however, there are problems in this area. Co-generation may be a possibility at some point - whichever way is least expensive. Mr. Allen showed his appreciation to the Board for their time in pre- paring the presentation. Other questions were asked by Dean Haskell to R M L D representatives regarding more communication within other Towns. Also, queries from Mr. Catalfamo about the Seabrook situation - and why R M L D has not done more with it, if possibility of power worries loom. Discussions by Messrs. Pacino, Rucker, and Numegut continued until 8:25 P.M. and the gentlemen left the meeting at that time. 2. Business/Contract Discussions Mr. Allen attended most recent School Committee meeting and enlightened the Finance Committee. Reading firemen are about to sign contracts. 3. Liaisons for Coverage of Town Meetings Mr. Allen proposed that liaisons should cover School Committee meetings, Selectmen Meetings, and the Board felt it was a good idea. Mr. Allen feels that coverage at other Town-wide meetings is important, and then asked the Board their own preferences. Liz Greene - Selectmen's Meeting preference Dean Haskell - Selectmen's Meeting preference Mr. Allen then verbalized on the School Committee meeting that he attended recently, with regard to labor negotiations/teacher arbitration, captial requests in the Fall Town Warrant. 4W -2- i _- _J / 4. More Business The ten-year forecast criteria was printed out for all FinCom members to view. Discussion followed after the presentation by Mr. Allen. Discussion continued from 9:00 - 10:00. Each item was presented by the Chairman and questions and answer period followed. SuggestiObs from Randy Harrison to have this ten-year forecast be sent to Peter Heichenbleikner, T 0 W N M A N A G E R , for review. 5. Adjournment Motion: Mr. McMenamin motioned to adjourn the meeting. Mr. Catalfamo seconded. Vote: 7 - 0 motion passed, meeting adjourned at 10:25 P.M. Respectfully submitted, Sue/ lnn Seretary, Reading Finance Committee I/sf � i 3- 4W