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HomeMy WebLinkAbout2001-12-17 Finance Committee Minutesra c- Financial Committee Meeting CLER4 December 17, 200 L~l f~. MASS, The meeting convened at 7:30 p.m. in the Conference Room, at 44N4%iB llAg0. 13 Lowell Street, Reading Massachusetts. Present were Finance Committee members Richard McDonald, Catherine Martin, James Francis, Randy Mason, Mary Grimmer, Chuck Robinson, Karen Epstein, Andrew Grimes, and Robert LeLacheur. School Committee members present were Pete Dahl, and Jim Keigley. Also present were Town Manager Peter Hechenbleikner, Selectman Rick Schubert and residents Gerry MacDonald and Bill Brown. On a motion by James Francis, seconded by Chuck Robinson, the Finance Committee voted to approve the minutes of their November 1, 2001 meeting. The motion was approved by a vote of 8-0-0. On a motion by Karen Epstein, seconded by Andrew Grimes, the Finance Committee voted to approve the minutes of their December 4, 2001 meeting, as amended. The motion was approved by a vote of 8-0-0. Peter Hechenbleikner stated there are two issues the Finance Committee should discuss regarding the organization and operation of the RMLD. The first issue for discussion is the relationship between the town and the RMLD. The second issue is regarding the auditing firm the RMLD task force will hire. What should the auditing firm look for and what information should they request? Peter requested the Finance Committee submit a list of questions. Catherine Martin, Richard McDonald, and Chuck Robinson submitted their lists of questions. Catherine Martin stated she objects to having the Board of Commissioners part of the task force. Rick Schubert also questioned the appropriateness of that decision. Peter Hechenbleikner stated the Charter states the Finance Committee may investigate the RMLD. Karen Epstein questioned why the bills were paid and not questioned. Peter replied the RMLD Board signed the bills and the Town assumed the debt. Mary Grimmer stated she would like the Finance Committee to conduct its own investigation. Peter Hechenbleikner stated he would like to have an objective third party audit firm in place in a week. He would like the light department to pay for the audit. On a motion by Mary Grimmer, seconded by Karen Epstein, the Finance Committee voted to perform an independent investigation of the RMLD. Bob LeLacheur made a motion, seconded by Randy Mason, to amend the motion by j Mary Grimmer to have three Finance Committee members and two Selectmen on the task force and no other official members. The motion was approved by a vote of 7-2-0. Finance Committee - December 17, 2001 page 2 The Finance Committee discussed the report by the Comm. of Mass. Office of the Inspector General regarding the credit card and certain other spending practices at the Reading Municipal Light Department. Andrew Grimes questioned what was the motivation of the report. Rick Schubert stated they should check the validity of the report. Andrew Grimes stated they should discuss the results with the existing auditors first and then proceed with the task force. On a motion by Bob LeLacheur, seconded by Randy Mason, the Finance Committee voted to recommend the investigative task force consist of three Finance Committee members and two Selectmen and no other official members. The motion was approved by a vote of 9-0-0. On a motion by Catherine Martin, seconded by James Francis, the Finance Committee voted against the reserve fund transfer from the revolving fund for funding the parking enforcement. The motion was defeated by a vote of 4-4-1. On a motion by James Francis, seconded by Andrew Grimes, the Finance Committee voted to adjourn at 10:15 p.m. The motion was approved by a vote of 9-0-0. (l Respectfully submitted, ;oyV Mohr Recording Secretary