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HomeMy WebLinkAbout2003-03-03 Special Town Meeting MinutesCOMMONWEALTH OF MASSACHUSETTS Middlesex, ss. Officer's Return, Reading: By virtue of this Warrant, I, on February 12, 2003 notified and warned the inhabitants of the Town of Reading, qualified to vote on Town affairs, to meet at the place and at the time specified by posting attested copies of this Town Meeting Warrant in the following public places within the Town of Reading: Precinct 1 J. Warren Killam School, 333 Charles Street Precinct 2 Registry of Motor Vehicles, 275 Salem Street Precinct 3 Reading Police Station, 15 Union Street Precinct 4 Joshua Eaton School, 365 Summer Avenue Precinct 5 Town Hall, 16 Lowell Street Precinct 6 Alice M. Barrows School, 16 Edgemont Avenue Precinct 7 Reading Library, Local History Room, 64 Middlesex Avenue Precinct 8 Charles Mobil on the Run, 1330 Main Street The date of posting being not less than fourteen (14) days prior to March 3, 2003, the date set for the Special Town Meeting in this Warrant. I also caused an attested copy of this Warrant to be published in the Reading Chronicle in the issue of February 13, 2003 Daniel W. Halloran Jr., Constable A true copy. Attest: Aileen A. Shaw, Assistant Town Clerk 1 SPECIAL TOWN MEETING (Seal) COMMONWEALTH OF MASSACHUSETTS Middlesex, ss. To any of the Constables of the Town of Reading, Greetings: In the name of the Commonwealth of Massachusetts, you are hereby required to notify and warn the inhabitants of the Town of Reading, qualified to vote in elections and Town affairs, to meet at the Reading Memorial High School Auditorium, 62 Oakland Road in said Reading, on Monday, March 3, 2003, at seven-thirty o'clock in the evening, at which time and place the following articles are to be acted upon and determined exclusively by Town Meeting Members in accordance with the provisions of the Reading Home Rule Charter. ARTICLE 1 To hear and act on the reports of the Board of Selectmen, Town Accountant, Treasurer-Collector, Board of Assessors, Director of Public Works, Town Clerk, Tree Warden, Board of Health, School Committee, Contributory Retirement Board, Library Trustees, Municipal Light Board, Finance Committee, Cemetery Trustees, Community Planning & Development Commission, Conservation Commission, Town Manager and any other Board or Special Committee. Board of Selectmen ARTICLE 2 To choose all other necessary Town Officers and Special Committees and determine what instructions shall be given Town Officers and Special Committees, and to see what sum the Town will raise by borrowing or transfer from available funds, or otherwise, and appropriate for the purpose of funding Town Officers and Special Committees to carry out the instructions given to them, or take any other action with respect thereto. Board of Selectmen ARTICLE 3 To see if the Town will vote to amend the FY 2003 - FY 2012, Capital Improvements Program as provided for in Section 7-7 of the Reading Home Rule Charter and as previously amended, or take any other action with respect thereto. Board of Selectmen ARTICLE 4 To see if the Town will vote pursuant to M.G.L. c. 43B Section 10(a) to approve an amendment to the Reading Home Rule Charter by adding the following language to Section 3-5: "The Municipal Light Board shall hire the General Manager of the Reading Municipal Light Department and set his compensation; the General Manager shall serve at the pleasure of the Board and may be removed by vote of a majority of the entire Board after notice and hearing. The Municipal Light Board shall appoint the Accounting Manager or Chief Accountant of the Reading Municipal Light Department; and appoint counsel to the Reading Municipal Light Department. - 2 The Municipal Light Board may delegate in whole or in part as it may deem proper, the direct supervision of the Accounting Manager or Chief Accountant as the case may be, along with supervision of other subordinate employees. The Municipal Light Board shall approve warrants for payments of all bills and payroll of the Municipal Light Department; and approve all contracts made in accordance with M.G.L. c. 30B, except contracts for purchasing of power. The Municipal Light Board shall employ the Auditor appointed by the Town of Reading Audit Committee. The Municipal Light Board shall annually set electric rates and approve an annual operating budget and Capital Improvements Program each fiscal year. Such approval will be done by a majority vote of the Municipal Light Board. After the Municipal Light Board has approved an annual operating budget and Capital Improvements Program, it will present them to the Reading Finance Committee and Reading Town Meeting. Upon request of any of the other towns served by the Reading Municipal Light Department, the Municipal Light Board shall make a presentation to the Finance Committee and/or Town Meeting of any such town(s)." or take any other action with respect thereto. Board of Selectmen ARTICLE 5 To see if the Town will vote to amend Section 3.8 of the General Bylaws of the Town of Reading Massachusetts by deleting Section 3.8.1 and 3.8.2 in their entirety and substituting therefore the following language: "3.8 Audit Committee 3.8.1 There shall be an Audit Committee consisting of seven (7) members appointed for three (3) year terms so arranged that as near an equal number of terms as possible shall expire each year. No member of the Audit Committee shall be a Town employee; however, notwithstanding the provisions of Section 3.4.6 of these Bylaws to the contrary, a Finance Committee member may be a member of the Audit Committee. Two (2) members shall be appointed by the Board of Selectmen, two (2) members shall be appointed by the School Committee, one (1) member shall be appointed by the Reading Municipal Light Board, and two (2) members shall be appointed by the Finance Committee. 3.8.2 The Audit Committee shall determine the firm or firms of independent auditor(s) that is to audit and report on the financial statements issued by the Town, including the Reading Municipal Light Department. The Audit Committee shall review the audit plan with the independent auditor(s) and, upon completion of the audit, meet with the independent auditor(s) to discuss the results of the audit and the annual financial reports. The Audit Committee shall transmit a copy of the completed annual audit and report to the Board of Selectmen, the Finance Committee, the School Committee and the Reading Municipal Light Board by the end of the calendar year within which the Fiscal Year covered by the audit occurs." or take any other action with respect thereto. Board of Selectmen 3 and you are directed to serve this Warrant by posting an attested copy thereof in at least - one (1) public place in each precinct of the Town not less than fourteen (14) days prior to March 3, 2003, the date set for the meeting in said Warrant, and to publish this Warrant in a newspaper published in the Town, or by mailing an attested copy of said Warrant to each Town Meeting Member at least fourteen (14) days prior to the time of holding said meeting. Hereof fail not and make due return of this Warrant with your doings thereon to the Town Clerk at or before the time appointed for said meeting. Given under our hands this 11 th day of February, 2003. Camille 1N-Anthony, Chairman Matthew Cummings, Vice Chairma Richard W. Schubert, Secretary ` orge V. Hines Gail F. Wood SELECTMEN OF READING Daniel K. Halloran r., Constable 4 SPECIAL TOWN MEETING Reading Memorial High School March 3, 2003 The meeting was called to order by the Moderator, Alan E. Foulds, at 7:43 p.m., there being a quorum present. The Invocation was given by Reverend Kevin H. Vendt, of the First Baptist Church followed by the Pledge of Allegiance to the Flag. The Warrant was partially read by the Town Clerk, Cheryl A. Johnson, when on motion by Camille W. Anthony, Chairman of the Board of Selectmen, it was voted to dispense with further reading of the Warrant except for the Officer's Return, which was read by the Town Clerk. Thomas J. Ryan, Precinct 1, requested a point of personal privilege to give a slide presentation of the Coolidge Middle School Olympiam Team. Camille W. Anthony, Chairman of the Board of Selectmen, moved to take Article 4 out of order. ARTICLE 4 - On motion by Camille W. Anthony, Chairman of the Board of Selectmen, it was moved pursuant to M.G.L. c. 43B Section 10(a) to approve an amendment to the Reading Home Rule Charter by adding the following language to Section 3-5: "The Municipal Light Board shall hire the General Manager of the Reading Municipal Light Department and set his compensation; the General Manager shall serve at the pleasure of the Board and may be removed by vote of a majority of the entire Board after notice and hearing. The Municipal Light Board shall appoint the Accounting Manager or Chief Accountant of the Reading Municipal Light Department; and appoint counsel to the Reading Municipal Light Department. The Accounting Manager or Chief Accountant as the case may be, and Counsel shall be subject to the supervision of the General Manager. The Municipal Light Board shall approve warrants for payments of all bills and payroll of the Municipal Light Department; and approve all contracts made in accordance with M.G.L. c. 30B, except contracts for purchasing of power. The Municipal Light Board shall employ the Auditor appointed by the Town of Reading Audit Committee. The Municipal Light Board shall annually set electric rates and approve an annual operating budget and Capital Improvements Program each fiscal year. Such approval will be done by a majority vote of the Municipal Light Board. After the Municipal Light Board has approved an annual operating budget and Capital Improvements Program, it will present them to the Reading Finance Committee and Reading Town Meeting. Upon request of any of the other towns served by the Reading Municipal Light Department, the Municipal Light Board shall make a presentation to the Finance Committee and/or Town Meeting of any such town(s)." Briefing for Articles 4 and 5 Board of Selectmen Special Town Meeting March 3, 2003 OVERVIEW • December 2001 - I.G. Report • RMLD oversight committee formed • Melanson & Heath engaged for forensic audit • Audit results surfaced lack of adherence to policy and/or lack ofspecific policies • Reading Light Board enacts certain policies regarding credit cards, petty cash, travel & entertainment, employee communication • Results begged the larger question whether or not there were fundamentals lacking in Town of Reading governance of the RMLD • June - BOS establish Ad Hoc Committee Citizens Advisory Board • 2 Major Responsibilities • Input to RMLD on (Significant Expansion or Retirement of RMLD Transmission, Power Contracts, General Plan or Generation, Cost-of- Service/Rate Making, Financial/Accounting Practice, other issues that may come before board • Review the operating and capital budget, may recommend increases, decreases and alterations to proposed budget FUNDAMENTAL ISSUES • Address Governance, NOT Operation • Provide an overall structure of priorities as the basis upon which policies can be made • As preamble to charter says, it is about "re- establishing our individual sovereignty with respect to the conduct of our local government" AD HOC charge To advise the Board of Selectmen on what changes if any should be made to the governance of the RMLD to ensure continued high quality of service, adherence to community standards of business, and the ability to move forward with new ventures that reinforce their commitment to the Town of Reading and the other communities they serve. Timeline of Meetings Group Ad4ioc Committee Reading SOS Citizens' Advisory Board (CAB) Lynnfieid,N. Reading, Wilmington Y Reading BOS 8/1/02 911 10/1 11/1 12/1 111/03 211 3/1 • f8 PUfiHr. hlenlings, many attended fiy RliCD! - - - - Kcy fgs: Oct28 Nov25 Jana ® kkAAAk Seo24 006.29 N-6.25 OocJ Jan21 AA AA AAA At Alk OcO Oct7o Deca,18 Jan7.21 F W1,12,26 A. ♦ ®u Qc190 OnO Jan26 643,10 1 Key Dates and Meetings • 8/5/02-1/21/03 - Ad-Hoc Committee holds 18 meetings; interviews Reading, RMLD/RMLB, and other LD officials • 10/3/02 - Ad-Hoc Committee interviews CAB • 10/29/02 - Ad-Hoc Committee presents initial recommendations to Reading BOS • 10/30/02 - Ad-Hoc Committee presents initial recommendations to CAB and reps of the four Towns' BOS (appointed Light Board with enhanced powers) • 11/13/02-11125/02 -Ad-Hoc Committee considers CAB input, refines root cause analysis, and votes new recommendations Key Dates and Meetings (Conc.) • 1/22103 - Reading BOS transmit Ad-Hoc Committee recommendations to BOS ofall four towns • 1/26, 2/3, and 2/10/03 -Members of Reading BOS meet and discuss recommendations with Lynnfield, No. Reading, and Wilmington BOS • 2/11/03 - Reading BOS close 313 STM warrant and transmit Report of Special Counsel to RMLD & CAB • 1/21, 2/3, 2/12/03 - CAB meets but takes no formal action on the Ad-Hoc Committee recommendations • 2/26/03 - CAB passes motion that it cannot issue a recommendation at this time regarding the proposed amendments to the Reading Home Rule Charter Root Issues (Cont.) Problem Group Problem Result of Observed Problem General Manager, Accepted gifts from Conflict of interest Assistant General Mgr, vendors in excess of the finding by I.G. and another employee statutory allowable amount Light Board Failed to examine all Light Board approved transaction in detail, warrants without before signing warrants sufficient backup infarmatim Light Board Failed to understand the Light Board approved significance of the lack warrants without ofthe Accounting sufficicttbackup Manager's signature for information warrants to be processed t I Key Dates and Meetings (Cont.) • 12/3/02 - Ad-Hoc Committee presents revised recommendations to CAB and reps of4 Towns' BOS (elected Light Board with enhanced powers) • 12/4/02 - Ad-Hoc Committee presents revised recommendations to Reading BOS • 12/11/02 - Subcommittee of Ad-Hoc Committee, including 2 Light Board members, agrees on refinements to revised recommendations • 1/8/02 - Ad-Hoc Committee votes FINAL recommendations • 1/9102 - Final Ad-Hoc Committee recommendations sent to Reading BOS, CAB members, and RMLD / RMLB Root Issues Problem Group Problem Result of Observed Problem General Manager Failed to follow his Travel and credit card own reimbursement irregularities cited by and travel policies. I.G. General Manager Failed to enact Created culture of policies allowing the fearamong accounting manager employees and employees to report noncompliance issues General Manager GM not required to Unclear, because the post bond GM did not directly handle finances to Root Issues (Conc.) Problem Group Problem Result of Observed Problem Light Board Failed to eeereise Ab--ofpnwer by General "dircrid-and control" in Manager managing the Geneml Manager through policy setting & coforu:ment Light Board viewed the mic 'rate Conflicted view by Light CAB as mom awn a purely Boar oftitctr fiduciary "advimry'ane rest-ibiliryto Townof Reading Light Beard and Gancmi insulndcnt financial Noadviceandcaruera Manager oversight by the Town of from Reading Fincom on Reading's Fimnec outside business Conunim, and Audit agmemems. Inability of Comminee Reading Audit Committee to serf MILD audit letter. I' 2 Section 3-5 Reading Home Rule Charter • Municipal Light Board - Five (5) Members elected for three (3) year terms - Charge of all real estate, facilities, personnel & equipment of the Town pertaining to the production and transmission of electrical power, both within the Town and elsewhere - Shall have powers & duties under G.L., C. 164 Sec.34 and other general/special acts, further powers and duties assigned by this Charter: by bylaw an by other Town Meeting vote n Amended Charter Section 3-5 • Municipal Light Board shall: - Hire General Manager, set compensation. GM shall serve at pleasure of the board - Appoint Accounting Manager/Chief Accountant and legal counsel (Acct.Manager / legal counsel supervised by GM) - Employ auditor appointed by Audit Committee - Approve warrants and contracts made in accordance with M.G.L. c 30B, except power contracts - Set electric rates, make presentations to FinCom & Town Meeting IS Process Challenges (Conc.) • Re-define roles/responsibilities of Governance (Town Meeting/Charter), Executive Management (Light Board), Operations (GM) & Employees • Respond to misperceptions and misinformation • Continual focus on governance improvement - through structural changes P MGL Chapter 164 - General Manager • The General Manager shall have full charge of- - Operation and management of the plant - Manufacture & distribution of gas or electricity - Purchase of supplies - Employment - Employment of attorneys and auditors and of "agents and servants" - Method, time, price, quantity and quality of supply - Collection of bills and keeping of accounts I< Process Challenges • Pervasive underlying commitment to status quo by some parties • Perception by some constituencies that the RMLD is an electric co-operative owned and operated by / accountable to the rate payers • History of authority abdication by the RML Board to the Citizens Advisory Board • Belief by some constituencies that the other communities should have voting authority on RMLB 16 Benefits of Proposed Changes • MLB shall hire GM, set compensation, serve at pleasure of board - Provides framework of employment - Precludes some provisions in previous GM contract from happening again - Provides for more accountability In 3 Benefits of Proposed Changes (Cont.) Light Board shall appoint Accounting Manager & Legal Counsel - Adds dual control having Accounting Manager report directly to Board - Responds to core problem of the accounting manager having no one to report issues to - Provides reporting structure if policies are ignored - Eliminates inherent conflict of interest in legal representation 1.E., legal counsel creating GM employment contract) - Provides accountability for excessive legal expenditures 19 Benefits of Proposed Changes (Cont.) • Light Board shall approve warrants and approve contracts in accordance with M.G.L. c 30B, except power contracts - Eliminates warrant approval process (former GM/Legal counsel said Board had no authority) - Focuses accountability for expenditures - Codifies current policy into Governance structure so that subsequent boards are bound Benefits of Proposed Changes (Cont.) • Accounting Manager/Legal Counsel subject to supervision of GM - Provides for dotted line reporting - Assists in day-to-day operations without blurring final accountability 0 Benefits of Proposed Changes (Conc.) • Light Board shall set electric rates, approve budgets, shall present approved budgets to Reading Finance Committee and Town Meeting - and other Towns if requested - Provides additional visibility - Codifies current practice - Emphasizes RMLD as pact of the Reading Municipal Government 4 John H. Russell, Precinct 8, made as a report of the Bylaw Committee, a motion to indefinitely postpone the subject matter of Article 4 as follows: The Bylaw Committee recommends the content of Article 4 by a vote of 3:0:1 abstention but moves to indefinitely postpone Article 4 after full discussion takes place and a vote representing the sense of town meeting is taking for the short term direction to the Board of Commissioners, and that the article be brought back to the next annual town meeting. The reason for this motion is to avoid procedural challenges. William C. Brown, Precinct 8, moves to adjourn town meeting sine die. Motion did not carry. William C. Brown moves the question of indefinite postponement. 2/3 vote requested 41 voted in the affirmative 66 voted in the negative Motion did not carry. Motion by George Hines to table the subject matter of Article 4. Motion carried. ARTICLE 2 - Camille W. Anthony, Chairman of the Board of Selectmen, moved to take Article 2 out of order. ARTICLE 2 - John H. Russell, Precinct 8, moves to instruct the Light Board to govern themselves in the short term in accordance with sense of meeting vote of Article 4. Motion carries. ARTICLE 2 - On motion by John H. Russell, Precinct 8, it was moved to instruct the Board of Selectmen to bring the subject matter of Article 4 before the Annual Town Meeting. Motion carries. On the motion on Article 4 to indefinitely postpone Motion carried. ARTICLE 2 - On motion by William C. Brown, Precinct 8, it was moved to instruct the Board of Selectmen to bring the subject matter of Article 4 before the Subsequent Town Meeting. Motion did not carry. ARTICLE 2 - On motion by Pasquale M. Iapicca, Precinct 7, it was moved to instruct the Town Manager prepare for the next annual Town Meeting all grants all departments have received -2- Special Town Meeting March 3, 2003 during the past two years as well as any other revenues the departments take in, to give us a complete fiscal picture for next years budget. Please itemize the grant(s) received and how they were spent. Motion carried. ARTICLE 2 - On motion by William C. Brown, Precinct 8, it was moved to instruct the Board of Selectmen to sell by sealed bid on or before June 30, 2004, Lots 16 through 21, 25 through 32, 48 through 54 and 58 through 62 together with those portions of Oakland Road, Cold Spring Road and Tower Road as shown on the Board of Assessors plat 123, the minimum bid price shall be One Million Dollars ($1,000,000.00) and other terms and conditions the Board of Selectmen may determine to be in the best interest of the Town. Motion did not carry. ARTICLE 2 - On motion by William C. Brown, Precinct 8, it was moved to instruct the School Committee to transfer care and custody and control of Lots 22, 23, 24, 34, 139 and that portion of Lot 35 which abuts Lot 34 on the southerly side of Oakland Road as shown on the Board of Assessors plate 123 to the Board of Selectmen for other municipal use and/or sale. Motion did not cam. ARTICLE 2 - On motion by Camille W. Anthony, Chairman of the Board of Selectmen, it was moved to table the subject matter of Article 2. Camille W. Anthony, Chairman of the Board of Selectmen, moved to take Article 5 out of order. ARTICLE 5 - On motion by Camille W. Anthony, Chairman of the Board of Selectmen, it was moved to amend Section 3.8 of the General Bylaws of the Town of Reading Massachusetts by deleting Section 3.8.1 and 3.8.2 in their entirety and substituting therefore the following language: "3.8 Audit Committee 3.8.1 There shall be an Audit Committee consisting of seven (7) members appointed for three (3) year terms so arranged that as near an equal number of terms as possible shall expire each year. No member of the Audit Committee shall be a Town employee; however, notwithstanding the provisions of Section 3.4.6 of these Bylaws to the contrary, a Finance Committee member may be a member of the Audit Committee. Two (2) members shall be appointed by the Board of Selectmen, two (2) members shall be appointed by the School Committee, one (1) member shall be appointed by the Reading Municipal Light Board, and two (2) members shall be appointed by the Finance Committee. 3.8.2 The Audit Committee shall determine the firm or firms of -3- Special Town Meeting March 3, 2003 independent auditor(s) that is to audit and report on the financial statements issued by the Town, including the Reading Municipal Light Department. The Audit Committee shall review the audit plan with the independent auditor(s) and, upon completion of the audit, meet with the independent auditor(s) to discuss the results of the audit and the annual financial reports. The Audit Committee shall transmit a copy of the completed annual audit and report to the Board of Selectmen, the Finance Committee, the School Committee and the Reading Municipal Light Board by the end of the calendar year within which the Fiscal Year covered by the audit occurs." ARTICLE 5 - On motion by John D. Wood, Precinct 2, it was moved to add after the first sentence in the first paragraph the following language "No two members terms of a single appointing authority shall expire in the same year. Motion on the amendment carried. Original motion with amendment carried. ARTICLE 1 - Alan Foulds gave the following Report of the Rules Committee: As per Section 2-12 of the Reading Home Rule Charter, a Rules Committee shall consist of all Precinct Chairmen, and an Annual Meeting must be held in order to review the rules governing Town Meeting. The Moderator serves as the non-voting Chairman of the committee. y The Rules Committee met on November 18, 2002 at Town Hall and reviewed the current rules. Specifically examined by the committee were the length of debate allowed by each speaker, the use of Instructional Motions, speaking by non-town meeting members, and the use of the title of "Town Meeting Member" outside of legislative sessions. Action by the committee included the following: On a motion by member William Brown, the Committee voted unanimously to recommend a bylaw change of rule #4 of Town Meeting Rules, Article 2, Section 2.2 It currently reads: "Prior to debate on each article in a warrant involving changes in the bylaws, the Bylaw Committee shall advise the Town Meeting as to its recommendations and the reasons therefore." The proposed change would add the words "or Charter", so that the Bylaw Committee would review both proposed bylaw and charter changes. The Rules Committee felt that this is already done today, but the change would formalize the process. The proposed change will come before the Annual Town Meeting in April. The Rules Committee also considered the possibility of changing Rule #19, which currently stipulates Roberts Rules of Order Revised, as the parliamentary framework of Town Meeting. -4- Special Town Meeting March 3, 2003 The change would replace it with Town Meeting Time, a publication of the Massachusetts Moderators Association. That book is now used by a majority of towns in the Commonwealth. This proposal will be discussed again at the next Rules Committee meeting. ARTICLE 1- On motion by Camille W. Anthony, Chairman of the Board of Selectmen, it was moved to table the subject matter of Article 1. Motion carried. ARTICLE 3 - On motion by Camille W. Anthony, Chairman of the Board of Selectmen, it was voted to indefinitely postpone the subject matter of Article 3. Motion carried. On motion by Camille W. Anthony, Chairman of the Board of Selectmen, it was voted that this Special Town Meeting stand adjourned sine die. Meeting adjourned at 9:37 p.m. 121 Town Meeting Members were present. Q• A true copy. Attest: Cheryl . John on Town Clerk -5- Special Town Meeting March 3, 2003 Mr. Moderator The Selectmen have put together a warrant article for the Special Town Meeting this evening that deals with certain aspects of the operations of the Reading Municipal Light Department. Article 4 contains several points, which may impair the ability of the RMLD to serve its ratepayers in the most efficient and economic manner. It has been fifteen months since the Inspector General's report came out and almost a year since the forensic audits were published. The operation of the RMLD has been exemplary. The electric rates have been decreased through the inclusion of a Purchased Power Adjustment Charge. In 2002 over $6.5 million was refunded to the - electric ratepayers. It is anticipated that the RMLD will refund approximately $10 million to the ratepayers in 2003. Presently, a Cost of Service Study is being performed with the desired result of lowering the rates to a Cost of Service Level and possibly levelizing the rates, removing the summer/winter differential. The payables being sent to Town Hall are being thoroughly overseen by the RMLD Accounting Manager, General Manager, and the Board of Commissioners, the Town Accountant, and the Town Manager. There have been questions from the Town Manager concerning some paybles, however, the RMLD Accounting Manager and the General Manager have answered these questions and all bills have been paid promptly. The Article 4 points include the RMLD Board hiring the RMLD Accounting Manager and Counsel, RMLD purchasing practices coming under the I Massachusetts General Laws 30B, and have the General Manager serving at the pleasure of the Board. The provisions within Article 4 may not be beneficial to the operations of the RMLD and, in some instances, could incur extra costs for all the ratepayers. Melanson Heath, the Town of Reading's forensic auditors, specifically outlined the following problem in their Executive Summary. "What the RMLD policies did not contain was a process for the Accounting Services Manager to follow when non-compliance issues occurred with the GM or AGM whom he reported to." "A key element for assuring adequate internal controls is to provide the accounting department with sufficient authority and independence to perform internal audit functions. This can be done by having the individual responsible for determining compliance periodically report directly to the Board of Commissioners." The RMLD has taken the following actions and changed its policies so that so that past problems will not reoccur. • The RMLD no longer has company credit cards. • Petty cash is only used for storm duty expenses and payroll problems. Neither incident has arisen since the change enacted in January 2002. • The RMLD has revised its polices with respect to travel and meals are only reimbursable on a per diem basis. 2 • The Accounting Manager has been given the authority to go the RMLD Board with instances when there arises a discrepancy in expense reporting,, payroll, and any other financial question. • The Board Policy has been changed so that the RMLD employees may directly contact any RMLD Board member for any reason. • The RMLD Board has both an account payable and payroll exception sheet, upon which it lists questions, concerns and comments. The General Manager and the Accounting Manager review these sheets and promptly respond to the Board's questions and concerns. Many of these changes were based on the recommendations of the forensic - audit performed by Melanson Heath for the Town of Reading. The Citizen's Advisory Board, advisory members to the RMLD Board from the four towns, are given a 30-day review period, based on the Twenty Year Agreement, for RMLD issues including Warrant Article 4. It was the understanding of the CAB that the Selectmen would give the CAB 30 days to review the Report of the Special Town Counsel on Article 4, which was delivered to the CAB on February 11th. By including Article 4 on tonight's warrant the Selectmen have denied the CAB their 30-day review. Additionally, the Selectmen have set up a schedule for the proposed amendments to Reading's Home Rule Charter (Article 4), which does not follow Massachusetts General Law. Massachusetts' law states that the proposed amendment cannot be submitted to the voters until 60 days after Attorney General's four-week review period. This means that a Town vote 3 cannot be held until the end of May. The Town's present schedule calls for a Town vote on April 81h The RMLD is running efficiently and economically and the proposed Article 4 amendment will inhibit the operations of the RMLD. The RMLD Board of Commissioners, after input from the CAB, in the next 60 to 90 days will be creating and implementing policies that will put many of the Ad Hoc Committee recommendations in place.