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HomeMy WebLinkAbout2005-09-28 Finance Committee MinutesI-;cCEIVED FOWN CLERK f; DIING, MASS. Finance Committee Meeting September 28, 2005 2005 NOV 10 A 10: 19 The meeting convened at 7:30 p.m. in the Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman Chuck Robinson, Paul Bolger, Ronald Powell, David Greenfield, Andrew Grimes, Hal Torman, Michele Williams and Recording Secretary Paula Schena. Also present were RMLD General Manager Vinnie Cameron, RMLB members Andreww Herlihy, Bob Soli and Dick Hahn and Phil Pacino. Discussion/Action Items Presentation by RMLD - Earnings Distribution Formula & 20 Year Agreement - Vinnie Cameron noted that Paul Bolger had attended a Light Board meeting and requested that Vinnie make a presentation to the Finance Committee regarding the earnings distribution formula. Vinnie Cameron noted that the 20 year agreement with four towns came from a dispute between Wilmington and the RMLD where they felt the rates were discriminatory against them and favored Reading. An agreement was negotiated and the agreement creates the Citizen Advisory Board (CAB). The CAB makes recommendations to the Light Board regarding power supply, rates, budgeting and other subjects. The RMLD makes voluntary payments to each town which is 2% of net plant shared by pro rata share. Paul Bolger asked how the relationship is with the four towns. Vinnie Cameron noted it is very good, but there is a delicate balance between the Town of Reading, RMLD and the other towns. 1 Andrew Herlihy noted that if a town wants out, then they have to start their own light department or switch to another electric company. Chuck Robinson asked if other municipal light departments return money to other towns. Vinnie Cameron indicated they do not because most serve just their own town. Paul Bolger asked if a study was done to conclude if the payments were fair. Vinnie Cameron indicated there was and the recommendation was that what is given to Reading is fair. They categorize it as a return not a payment in lieu of taxes. He noted that a payment in lieu of taxes is based on property and most of the Light Department property is outside of Reading. Vinnie Cameron noted that the Light Board voted a benchmark of $1,560,414 for calendar year 1998 and for future years to be changed by the consumer price index. Andrew Herlihy noted that the Town receives two payments per year - the first week of July and the first week of January. Andrew Herlihy noted that Wilmington's use has dropped and Reading's has increased. David Greenfield asked if there was any potential litigation. Vinnie Cameron noted that the federal regulation systems files rules that are not good so they have to go to Washington to fight. They try to join other towns to alleviate costs. Finance Committee Meeting - September 28, 2005 - page 2 Chuck Robinson asked if there was any discussion of bringing in other towns. Vinnie Cameron noted it is against the law for them to pursue other towns since deregulation. Liaison Reports Chuck Robinson noted that the Health Insurance Task Force has met several times. The Town Manager has hired a consultant to put together an RFP and to ask MIIA for an extension. There will not be a decrease from this year's rate. He will ask the consultant to make a presentation to the Finance Committee. Andrew Grimes asked if we know what the increase percentage will be from MIIA. Chuck Robinson indicated we do not know that yet. The consultant will negotiate with MIIA and also Blue Cross/Blue Shield. Michele Williams noted that she received the minutes of the Library Board meeting. David Hutchinson is the Library Board liaison to the Finance Committee. The Library needs carpet and are contacting Home Depot. Paul Bolger noted he went on a tour of the RMLD substations and it was an interesting tour. Hal Torman noted that he attended a School Committee meeting. There was a lot of building updates. The School Committee put Article 12 regarding the culvert back on the Warrant - they are asking for money. There was also discussion on the press box. Election of Vice Chairman of the Finance Committee - Chuck Robinson noted that Bob Lelacheur was hired as the Assistant Town Manager/Finance Director for the Town so his position is vacant. Bober moved and Greenfield seconded to place the name of Andrew Grimes into nomination as Vice Chairman. A motion by Torman seconded by Bober to close the nominations was approved by a vote of 7-0-0. Andrew Grimes received seven votes and was appointed Vice Chairman. Andrew Grimes volunteered to be the Finance Committee representative on the Hospital Development Committee. Ron Powell noted he will be the representative on the Nurse Advocacy Committee. Approval of Auditor's Bills - A motion by Grimes seconded by Williams to approve the payment of the Melanson and Heath bills in the amount of $25,000 and $5,000 was approved by a vote of 7-0-0. Chuck Robinson noted that the committee will meet on October 12, 2005, to review the Warrant. They will set the budget schedule then. Finance Committee Meeting - September 28, 2005 - page 3 Approval Minutes A motion by Torman seconded by Grimes to approve the minutes of June 22, 2005 was approved by a vote of 6-0-1 with Torman abstaining. A motion by Grimes seconded by Williams to adjourn the meeting at 9:00 p.m. was approved by a vote of 7-0-0. e ectfully s bmitted, Secretary