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HomeMy WebLinkAbout2002-05-16 RMLD Oversight Task Force MinutesRMLD Oversight Task Force Meeting May 16, 2002 The meeting was convened at 7:35 p.m. in the Selectmen's Meeting Room, 16 Lowell 'Street,`Ye << Reading, Massachusetts. Present were Chairman George Hines, RMLB Chairman Alan Ames, Fincom Chairman Richard McDonald, CAB Chairman Roger Lessard, Fincom member Jim Francis, RMLB member Andrew Herlihy. Also present were Joe Veno from the North Reading Board of Selectmen, Phil Pacino from the RMLB, Frank Hadley from the RMLD, Jim Blomley from the RMLD, Tony Butler from the RMLD, Priscilla Gottwald from the RMLD, Mary Murray from the Chronicle, Steven K. from the RMLD, Town Manager Peter Hechenbleikner, Town Accountant Richard Foley. On motion by Ames seconded by McDonald the minutes of April 4, 2002 were approve as submitted by a vote of 6-0-0. Discussion of Final Report - Melanson and Heath and Company - Richard McDonald noted that Melanson and Heath did an outstanding job on the report - it was well organized and complete. On motion by Francis seconded by McDonald the Advisory Committee accepted the Melanson Heath forensic audit as the final report by a vote of 6-0-0. Alan Ames noted that the Light Department has not done as much as they would like to have done. The department is pulling out past policies and will be sitting down with Alan Ames and - Andrew Herlihy as a subcommittee. They hope to be able to give a final report to the Task Force. George Hines noted that it is possible the Task Force may dissolve, in which case the Board of Selectmen would like to have that report. Andrew Herlihy noted that he had run for the Light Board to cater to the need for new policies. He now feels there are generally adequate policies in place, but there was not adherence. Jim Francis asked about the General Manager's contract and Alan Ames noted that Phil Pacino and Alan Ames would be willing to discuss the genesis of the contract. Francis noted that he is not concerned about the history, but concerned about the future. George Hines asked if the Acting General Manager was under contract and the response was that he was not. Hines asked if it applied to Rucker only and the response was that it did. Hines noted that the Finance Committee and Board of Selectmen may like to have discussion as to future contracts. The main concern being the buy out clause. He would also like to see salaries commensurate with other Town government positions as well as other municipal light departments. Roger Lessard asked if it was the intention of the Board of Selectmen to allow the Reading Municipal Light Board to go ahead with hiring a new General Manager, or if they would want to wait until any reorganization took place that might take place. Hines noted that the Task Force members role is to report to their bodies. Hines took back to the Board of Selectmen the option for doing the Governance Task Force. The consensus of the Board of Selectmen is to go forward RMLD Oversight Task Force - May 16, 2002 - page 2 with the Governance Task Force. They will want input from the CAB as well as to look at the 20 year agreement and keep the other communities involved. Hines asked about the issue of voting on reimbursement to the Town of Reading for the cost of the Melanson and Heath report. Lessard noted that the CAB is meeting on June 4, 2002. Ames noted that the Light Board is scheduled to meet on June 3, but might change its meeting to June 4 to accommodate everyone. Ames noted that the Light Board cannot approve the transfer without the CAB approval. Hines noted that the Board of Selectmen would like to be present and if they can meet at 7:00 p.m. then Board members would have the ability to go to other meetings that are scheduled. McDonald noted that FinCom will be meeting with the Reading Municipal Light Board to review the audit process. Alan Ames suggested a review of the process of reviewing accounts payable warrants. He felt that the Task Force was created to deal with issues that "fall between the cracks" and this was one. There could be others. He presented a paper dated May 16 related to the examination of RMLD payment oversight process. He felt that the process should be one of specifying what the roles are. George Hines asked if there were other efforts to alleviate this issue and Ames indicated that there were not. Francis asked what other bodies do and it was noted that they sign the bill role as a group. Roger Lessard asked if the Task Force should be kept in place. George Hines noted that Alan Ames' suggestions may be appropriate for the FinCom to take up as part of their review of the RMLD. Richard McDonald agreed. He noted that receivables are not a big issue. He assumed that they are being tracked against budget accounts. One issue that Alan Ames raised is what happens if the Board disputes an item in an accounts payable. They don't have time to deal with the other issues that the Light Board needs to deal with if they are focused on these minute issues. George Hines asked if the CAB was comfortable with the FinCom addressing this issue. He noted that the Task Force was set up on an emergency basis to deal with a political, financial and potentially criminal crisis. Lessard felt that the Task Force should be kept in place. Alan Ames presented a second paper dated May 16 on the issue of regionalization. He noted that 80% of the service area, a vast majority, is outside the Town of Reading. He feels that the Reading Municipal Light Department is a competitive business and they need to maintain their competitive position. He noted that they could form a cooperative. Jim Francis noted that it's worth looking into. The Town Manager noted that if the problem with the current system is a lack of oversight, there would be virtually no oversight with a regional body. Roger Lessard agreed. He doesn't think we need to throw the baby out with the bath water. Jim Francis noted that he knows of only a couple of issues that the FinCom wants to investigate, including the purchase and sale of power. George Hines felt that they were both good issues for the FinCom to address. RMLD Oversight Task Force - May 16, 2002 - page 3 The next item of discussion was the future of the RMLD Oversight Task Force. Dick McDonald felt the Task Force was a good form for communications and should continue. FinCom should have their meeting and report this to the Task Force. Andrew Herlihy felt the search for a General Manager will take a long time. The Task Force may have some input. He wants to see better communications. George Hines noted that the Chairman of the Light Board and the Chairman of the Board of Selectmen have had telephone conversations and have started a process of better communication. Jim Francis felt that the work was not finished and the Task Force needs to make sure that the changes are implemented, that policies are reviewed. The consensus was to have an update in one month - on June 20. Public Comment - Joe Veno from North Reading spoke. He feels the Task Force should continue. The goal is accomplished. He asked if the Task Force should be involved in the selection of the General Manager. George Hines felt that there needs to be a form for understanding the process of hiring a General Manager and giving input. The Selectmen have asked to delay the hiring process until the Governance Advisory Committee has completed their work, but that is entirely up to the RMLD. Veno thinks that the situation has been taken care, of. The service is good. He would be careful about the Town of Reading changing the governance of the Light Department. His main concern would be that the Town could get at the Light Department's finances. Veno noted that the Board of Selectmen in Wilmington is not in favor of reimbursing the Town of Reading and asked why. Lessard noted that the Town of Reading assumes liability as a return on an investment and having to do the audit was one of the liabilities. Veno noted to Alan Ames that he was bothered that something was not done prior to this Task Force having been created. This should have been taken care of by the Commissioners a long time ago. Jim Francis noted that in defense of Alan Ames a faulty system was in place. There was a good Commission doing what they needed to do. They had poor leadership from the General Manager. Sometimes you can't tell something is wrong until something blows up. The FinCom will be looking at the Light Department's business ventures. RMLB Chairman Bill Hughes asked the group to "bear with us." Phi Pacino noted that we had bad leadership on the top and the General Manager lied to us. He noted that the Light Board would welcome the meeting with the Finance Committee. Steve Kasangrian works in the Accounting Division and reports to the Accounting Manager. The Light Department has undergone a great deal of publicity because of a few people. They only saw the General Manager one and one half to two days per month. The Board was duped. The Light Department produces great income to the Town of Reading. Tony Butler noted that the General Manager was there 14 years. He was given a blank check by the Light Board. He holds the Reading Municipal Light Board responsible for the General Manager's contract. The Board is responsible and the Board was responsible to check on the RMLD Oversight Task Force - May 16, 2002 - page 4 General Manager. If he lied to them that's their problem. He felt that the Light Board failed the department. Andrew Herlihy noted that we should schedule a CAB, RMLB meeting with the Finance Committee and that would be done. On motion by McDonald seconded by Ames the RMLD Oversight Task Force meeting of May 16, 2002 was adjourned at 9:00 p.m. by a vote of 6-0-0. es ect 11 ubmitted, Secretary