HomeMy WebLinkAbout2002-06-12 Finance Committee MinutesG1;ECEIVED
rO1,~"N CLERK
`F A D E N G, MASS. Financial Committee Meeting
June 12, 2002
2003 JUL ( ~ P .
The meeting convened J ~ 30 p.m. in the RMLD Meeting Room, 230 Ash Street,
Reading Massachusetts. Present were Finance Committee members Richard McDonald,
Mary Grimmer, Karen Epstein, Robert LeLacheur, James Francis, Chuck Robinson,
Andrew Grimes, Town Manager Peter Hechenbleikner, and Selectman Matthew
Cummings. RMLD Board members present were Robert Soli, Andrew Herily, William
Hughes, Philip, Pacino and Allan Ames. RMLD staff present were Vincent Cameron, Bill
Seldon, and Jane Parenteau.
7:30 PM Chairman Richard McDonald called the Finance Committee meeting to order.
RMLD Board Chairman William Hughes welcomed everyone.
On a motion by Philip Pacino, seconded by Andrew Herily, the RMLD Board voted to
authorize the RMLD to transfer $45,000 to the Town of Reading for reimbursement for
the cost of the Melanson-Heath report.
William Hughes asked for any discussion concerning this motion.
Allan Ames stated he was against this motion.
Selectman Matthew Cummings recommended reimbursing the Town for this expense. He
( stated the Town should not have to incur this expense.
North Reading Selectman Joe Vino endorsed the payment to the Town of Reading.
Town Manager Peter Hechenbleilmer stated the RMLD has the legal authority to
reimburse the town for expenses. He would like to see this issue ended and have
everyone move forward.
On a role call vote the RMLD Board voted to approve the motion by a vote of 3-2-0.
Vincent Cameron discussed RMLD's long term contracts with other energy suppliers. In
2001 they purchased $50 million of power. This includes a $10 million annual purchase
from one individual company. Robert LeLacheur was concerned with the financial
exposure of such a large contract. James Francis asked if there was a limit to the
maximum exposure to one entity.
Vincent Cameron presented the financial income statement for the Street Lighting
Business for outside towns. Matthew Cummings questioned why the operating expenses
exceeded the income. Mr. Cameron replied this is due to the initial start up charges.
Karen Epstein asked if there were plans for expansion. Mr. Cameron replied he does not
see any plans for expansion looking forward to the year 2007.
Finance Committee - June 12, 2002
page 2
Peter Hechenbleilcner asked how much was spent annually for capital. Mr. Cameron
replied they have an annual cap for capital of $5 million. RMLD takes 2% of their net
and distributes it to the participating towns each year.
Dick McDonald requested an overview, on going forward, of the RMLD's policies.
William Hughes replied he developed a General Manager search committee. Vincent
Cameron stated there have been some policy changes. The travel policy has changed to
per diem only. They no longer have corporate credit cards. There is an anonymous letter
policy. Petty cash is reserved for emergencies and storms.
Philip Pacino stated there is a change in attitude. They believe in trust, but verify. They
still require three signatures on the warrant. They are more open to employees coming
forward.
Bob LeLacheur asked Peter Hechenbleikner if the communication between the RMLD
and the Town has improved. Peter stated it has. The information received on warrants has
improved. They are receiving a full back up. They are not receiving the originals, but the
quality of the copies has improved. If there is something unusual in payroll, such as a
vacation, it is explained.
Philip Pacino suggested a joint annual meeting with the RMLD Board and the Finance
Committee.
James Francis suggested a policy on credit and risk management.
10:10 PM The Reading Municipal Light Department Board recessed.
Old/New Business:
Robert LeLacheur volunteered for the Ad Hoc Storm Water Management Advisory
Committee.
Jim Francis agreed to serve on the RMLD Governance Advisory Conunittee as the
Finance Committee representative.
The next FinCom meeting is June 26, 2002, to finalize any reserve fund transfers.
Peter Hechenbleikner stated they received the grant from the State on the GIS. He
expects the landfill closing on July 1, 2002.
10:20 PM The Reading Municipal Light Department Board returned to session.
William Hughes thanked the RMLD staff for their presentations.
Finance Committee - June 12, 2002
page 3
On a motion by James Francis, seconded by Karen. Epstein, the Finance Committee voted
to adjourn at 10:20 PM.
The motion was approved by a vote of 7-0-0.
Respectfully submitted,
Joy Mohr
Recording Secretary