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HomeMy WebLinkAbout2002-01-09 RMLD Board of Commissioners Minutesv icy Reading Municipal Light Board Regular Session MASS. 230 Ash Street, Reading, MA 01867 January 9, 2002 {{ryp ty~ Start Time of Regular Session: 7:35 p.m. End Time of Regular Session: 9:05 p.m. Attendees Commissioners: Messrs. Pacino, Swyter, Ames, Halloran, and Hughes RMLD Staff: Mr. Rucker and Ms. Bernat CAB Members: Mr. Roger Lessard Participating Guests: Attorney Ken Bama of Rubin and Rudman Mr. Cummings, Reading Board of Selectmen Mr. Veno, North Reading Board of Selectmen Mr. Francis, Oversight Task Force Member Mr. Kelly Mr. Van Magness Mr. McDonald Mr. Brown This meeting is being video taped, as a public record, for distribution to the community television stations in Reading, North Reading, Wilmington and Lynnfield. Tapes of this meeting can be purchased from RCTV ($2 a tape). Mr. Ames called the meeting to order at 7:35 p.m. Discussion of the Issues Raised by the IG Report Mr. Pacino made a motion to bring the motion previously tabled from the RMLD Board of Commissioner's meeting on Monday, January 7`h; this was seconded by Mr. Swyter. Motion Carried 5:0:0. Motion read for the record. Mr. Pacino, made a motion seconded by Mr. Swyter move that the Reading Municipal Light Board, consistent with its statutory duties, vote to authorize the General Manager to take all steps necessary to search for and retain a forensic auditor for the purpose of conducting and audit of the specific issues raised in the purpose of conducting an audit of the specific issues raised in the Inspector General's report dated December, 2001, including but not limited to issues such the use of RMLD-issued credit cards. RMLD's credit card policy, oversight of spending practices, travel, education and conference policy and budgets, petty cash procedures, and reimbursement of personal expenses. Motion carried 5:0:0. Discussion ensued. Mr. Ames asked for an amendment be added to the end of the motion "on the recommendation of General Counsel" Mr. Pacino agreed to amend the motion, seconded by Mr. Swyter to amend the original motion. Mr. Swyter read the amended motion: "Move that the Reading Municipal Light Board, consistent with its statutory duties, vote to authorize the General Manager to take all steps necessary to search for and retain a forensic auditor for the purpose of conducting and audit of the specific issues raised in the specific issues raised in the Inspector General's report dated December, 2001, including but not limited to issues such the use of RMLD-issued credit cards. RMLD's credit card policy, oversight of spending practices, travel, education and conference policy and budgets, petty cash procedures, and reimbursement of personal expenses on the recommendation of General Counsel. Regular Session Minutes - January 9, 2002 Page 2 Discussion of the Issues Raised by the IG Report Discussion ensued with regards to the RMLD paying for the Task Force audit and the RMLD performing its own forensic audit. Mr. Ames noted counsel for the RMLD has responded with two (2) memos related to the payment of an independent audit by the RMLD. He said in summary this Commission has to pay for its own audit and there might be an issue of timing stating if they wait, this Commission will have given authority to the Task Force, which it cannot do. Mr. Barna explained the RMLD cannot make an above the line payment as an expense, an above the line expense must be an expense necessary to run the RMLD. Since the RMLD would have no authority or overseeing rights it cannot be a necessary expense. A below the line payment could be an option - inappropriate earned surplus funds. Mr. Barra said the RMLD has a statutory obligation to perform an independent audit. Mr. Lessard, of the CAB, asked if a below the line payment, given to the RMLD by Reading, can be re-allocated Mr. Ames replied in the affirmative noting that the CAB input is necessary and required by the Twenty Year Agreement. Mr. Barna said the Board and the Task Force could not hire same auditor. He said the RMLD Board and Task Force are two separate entities and that the Board would have to make an independent determination and that they cannot accept auditors that they have not hired regardless of the outcome. Mr. McDonald, Reading resident recommended the Light Board turn this matter over to the AG and let him handle it. Mr. Ames asked counsel if they could give this to the AG. Mr. Barna said they might do it or you might turn this over to other agencies, but as a Board they would still have a statutory obligation and could not delegate this responsibility away. Mr. McDonald formally requested that the Board send a letter to the AG. Mr. Bill Brown, Reading resident questioned the legality of the Task Force. Mr. Hines indicate that the Task Force audit had already begun; that the Task Force voted seven to zero to hire Melanson Heath and he doesn't think there is any reason to be concerned about criminal activity. Mr. Ames replied that the Task Force had voted to recommend the audit but did not vote to hire. Mr. Hughes said he wanted to go on record that he is totally opposed to the second audit. Mr. Hughes moved that the Light Board turn the forensic audit related to the IG's report over to the AG. The motion failed to obtain a second and died. Mr. Hughes inquired about the details of Mr. Swyter's retirement from the RMLB. Mr. Swyter indicated that while he has no obligation to comment; his retirement is not specifically related to the IG's report or the public's response, and indicated that it will allow him additional time to spend participating with his growing family. Mr. Swyter described the processes, as he understands it: resignations must be given with a date certain. Upon receipt, a joint meeting of the Selectman (5) and remaining Light Board (4) may appoint a Reading citizen until the next municipal election or the completion of the elected term, which ever comes first, e.g. if Mr. Swyter resigns prior to the closing of nomination partitions, 5:00 pm on February 16th, the remainder of his term would be included on the April 2, 2002 ballot and the joint Boards could appoint a citizen until the election. Regular Session Minutes - January 9, 2002 Page 3 Discussion of the Issues Raised by the IG Report Should Mr. Swyter resign after February 16`x' the joint boards may appoint a Reading citizen for the remainder of his elected term. Mr. Swyter indicated he intends to tender his resignation following the next RMLB meeting, well ahead of the February 16'' deadline which providing time for interested citizens to complete nomination partitions. Mr. Swyter indicated specific questions regarding the process be directed to the Town Clerk or the Town Manager. Motion to Adjourn At 9:05 p.m. Mr. Swyter made a motion seconded by Mr. Hughes to adjourn the Regular Session. Motion carried by a show of hands 5:0:0. The next meeting was scheduled for January 18, 2002. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. Mr. David Swyter Secretary, RMLD Board of Commissioners