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HomeMy WebLinkAbout2002-01-07 RMLD Board of Commissioners MinutesJ `_D Reading Municipal Light Board L R Regular Session MASS. 230 Ash Street, Reading, MA 01867 January 7, 2002 2( OZ E6 2: 0 8 Start Time of Regular Session: 7:35 p.m. Start of Recess: 9:15 p.m. End of Recess: 9:35 p.m. End Time of Regular Session: 10:00 P.M. Attendees Commissioners: Messrs. Pacino, Swyter, Ames, Halloran, and Hughes RMLD Staff: Messrs. Rucker, Blomley, and Cameron Mses. Bernat and Gottwald CAB Members: Mr. John Corbett Participating Guests: Attorney, Ken Barna of Rubin and Rudman Mr. George Hines, Reading Board of Selectman Mr. Matthew Cummings, Reading Board of Selectmen Mr. Robert Cain, Wilmington Board of Selectmen Mr. Richard Kaszynske Mr. Melvin Stone Mr. Arthur Caratans This meeting is being video taped, as a public record, for distribution to the community television stations in Reading, North Reading, Wihrrington and Lynnfield. Tapes of this meeting can be purchased from RCTV ($2 a tape). `s Mr. Ames called the meeting to order at 7:35 p.m. Report of the Chairman of the Board Reading Municipal Light Department Board of Commissioner, David Swyter submitted his intention to retire his elected position as RMLB Commissioner. His retirement will be effective at such time that a joint meeting of the RMLD Board of Commissioners and the Reading Selectmen can appoint a replacement. Mr. Swyter's term expires in March of 2003. IG's Report Mr. Ames introduced Mr. Rucker for the purpose of discussing the preliminary report: Mr. Rucker displayed the books of information that the RMLD had put together as the RMLD's response to the IG report which he noted was completed within the deadline. Mr. Rucker gave his rebuttal to several specific items in the IG report: IG Report Claim: Unfettered use of credit cards. Rebuttal: A policy with regards to credit card use was put in place in 1990. IG Report Claim: Per diem not in use. Rebuttal: Not true; the original cap was $35/day and is currently $40.00. IG Report Claim: Travel needs to be approved by the public. Rebuttal: There is a $238,000.00/year budget approved publicly, yet the RMLD only spends $136,000.00. IG Report Claim: Report infers that Mr. Rucker being out of the office is bad. Rebuttal: Mr. Rucker said this is not true; he is very active on many boards, APPA, MMWEC, NEPPA, ENE at various levels and all for the benefit of the RMLD which have required out of state travel and well -as_his publicspeaking engagements. Regular Session Meeting Minutes - January 7, 2002 Page 2 Report of the Chairman of the Board IG's Report IG Report Claim: Report says Town Accountant and Town Manager have been denied access to receipts, backup data, etc. Rebuttal: Not true; access has never been denied. IG Report Claim: Report says Las Vegas, Nevada was a fictitious trip and hotel room was excessively expensive. Rebuttal: Mr. Rucker said that the trip was for an Itron users conference and the trip saved ratepayers $40,000. IG Report Claim: Report called San Antonio, Texas trip excessive. Rebuttal: Mr. Rucker said he had all personal reimbursement checks; he said meals for six (6) days cost $249 and long distance calls averaged $6/day. In response to questions regarding purchases of bedding, Mr. Rucker explained that it is needed for people to sleep at the RMLD during storms and power outages as well as hotel rooms. Mr. Rucker said personal charges for Linen's & Things were charge on the wrong card by mistake and he had his personal check to show he reimbursed the RMLD. Mr. Rucker explained the Boston Coach limo that had been used to attend an Energy New England meeting and a $960 bicycle purchased for an employee who became medically restricted from driving while working at the RMLD. Mr. Rucker explained movie tickets purchased for employees who volunteered their time to put on a Halloween party for the town, the cost of a clean-up day luncheon ($803) for employees that came to work on a Saturday to clean out all old stuff; and a NEPPA training luncheon. Mr. Rucker explained the Capriccio's Restaurant expense, which was for fourteen (14) people, all listed on the receipt, which included CAB members, and Commissioners with spouses. He further explained that they had been doing this since 1990. Mr. Rucker explained Gift Certificates for volunteers; dinner at Mona's in Burlington, VT with Commissioners and spouses, RMLD staff and a Christmas luncheon at Donatello's for his staff. Mr. Rucker noted rates had not been raised in nine (9) years and were currently guaranteed to remain stable for another four (4) years and other successes, which are a result good business management practices. Customer Comments Mr. Cain, Chairman of the Board of Selectmen, Town of Wilmington read a letter from Wilmington stating that they support the Task Force idea but do not agree with the RMLD hiring their own independent audit company. Mr. Pacino noted two fictitious statements in the IG Report Mr. Hines on behalf of Board of Selectmen presented a letter from the Reading Selectmen asking the Board not duplicate the cost of the audit and requested that the Board members to come back to the RMLD with on-going findings by the auditors. Mr. Barna was asked to explain the RMLD's ability or lack of ability to delegate authority to the Task Force. Mr. Barna said that the RMLD must make their own interpretation of the independent audit and that the RMLD has a statutory responsibility to do their own audit. Mr. Barna said the RMLD Board couldn't adopt the Task Force audit without doing their own audit. Mr. Cuminings, a member of the Board of Selectmen of Reading and a Task Force member suggested that the contract be amended through an agreement with the four (4) towns allowing the RMLD other options. Regular Session Meeting Minutes - January 7, 2002 Page 3 Report of the Chairman of the Board Commissioners' Indemnification The Commission asked of Mr. Barra the following questions: • What coverage do we have as elected officials by the Town of Reading and/or the RMLD? • Should RMLD General Counsel and/or Town Counsel address this issue? • Availability of Counsel to respond to individual Cornrnissioner concerns. • In advance of cost for reimbursement by independent Counsel for a Commissioner's request for a second opinion. • Representation by Counsel should the Inspector General, RMLD Oversite Task Force, or others request personal interviews with individual Commissioners. IG must declare purpose and your rights, they can compel a response. The Task Force cannot compel a response. Mr. Barra spoke regarding Commissioners indemnification saying he however, he made the following comments with regards to: Criminal items - no indemnification Restitution - not covered by indemnification Fines - not covered by indemnification Negligence - there could be indemnification (not likely) Civil matter - there would be indemnification to cover attorney's fees felt it was premature to respond to this, Discussion ensued regarding why there would be a need for indemnification. Forensic Audit Mr. Ames, indicated the Board couldn't delegate its decision-making authority and must make its own independent investigation, decisions, reach its own conclusions and take appropriate actions. Mr. Bama's opinion and comments supported Mr. Ames statement. The RMLD cannot pay for the audit being performed by the Task Force or any other outside source, from above or below the line by the Light Department. Light Board members sitting on the Task Force may or may not be a conflict of interest; opinion should be available by the Boards next meeting. Motion 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. Statement from Mr. Barna reaffirming the legal ability of the Department to pay for or adopt the Task Forces' report, the RMLB has a statutory obligation to make its own independent investigation and reach its own conclusions. The Department cannot pay for the Town of Reading audit. Board discussion ensued. RMLD Smoking Policy 4, Revision 4 Mr. Swyter made a motion seconded by Mr. Halloran that the Board accept the changes in Policy 4, RMLD Smoking Policy, Revision 4, based on the recommendation of the General Manager. Motion carried: 5:0:0. Regular Session Meeting Minutes - January 7, 2002 Page 4 Customer Service Log Monitor Mr. Rucker asked the public to please not vent or take out their personal opinion on employees, he stands prepared to discuss concerns and responsibility for same. Cable Services Mr. Rucker informed the Board that Uptown Connections had been hired to do a feasibility study and will proceed with a survey of 400 customers in the 4 towns at a maximum expense of $38,000. CAB Resignation CAB Member, Joe Gehret, has submitted his resignation due to time issues, not the IG's investigation of RMLD. Mr. Ames asked that he be recognized for his contributions. Next Meeting Date The next meeting was scheduled for Wednesday, January 9, 2002 for the purpose of discussing the motion to perform the audit. At 10:00 p.m. Mr. Pacino made a motion seconded by Mr. Hughes to adjourn the Regular Session. Motion carried by a show of hands 5:0:0. 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