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HomeMy WebLinkAbout2002-01-17 RMLD Oversight Task Force MinutesRMLD Oversight Task Force Meeting January 17, 2002 s tso Q The meeting convened at 7:30 p.m. in the Town Hall Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Board of Selectmen Chairman George Hines, FinCom Chairman Richard McDonald, FinCom Member James Francis, RMLD Chairman Allan Ames, RMLD Member Dan Halloran, Citizens Advisory Committee Member Roger Lesard, Karen Roberts from Melanson Heath, Town Manager Peter Hechenbleikner, Town Accountant Richard Foley, and the following interested parties: Bill Hughes (RMLD), Gerry MacDonald, Attorney Hoffrnan for Len Rucker, Priscilla Gottwald (RMLD), Nate White, Bill Brown, Joe Veno, North Reading Board of Selectmen Chairman, Mary Murray from the Chronicle, Fred Livingstone and Nadine Wandzilak from the Advocate. . On motion by Lesard seconded by McDonald, the minutes of the January 3, 2002 RMLD Oversight Task Force Meeting were approved as submitted. Board of Selectmen Chairman George Hines read a letter from Town Counsel. The Town Manager reviewed the material that has been submitted to date. Karen Roberts from Melanson Heath gave a progress report. She gave an oral report that she had met with the Inspector General, and had also met with Len Rucker, General Manager of the Light Department. The IG and Melanson Heath will be working in cooperation so they do not duplicate their efforts. They will be executing a memorandum of understanding. In Karen Roberts' meeting with Len Rucker, he gave Melanson Heath two binders of information related to answering the Inspector General's charges. Melanson Heath was also introduced to key people at the RMLD, and they were assured complete access to any and all material at a rapid response. Karen Roberts outlined that the scope deals with 80-90 travel trips during four years. Having access is key, including access to the original materials. Melanson Heath plans on spending approximately a week getting documents, and then begin to talk to employees at the Light Department. They will be asking general questions not specifics at this time. They will be talking with employees one on one. George Hines asked if Melanson Heath had a better feel for the timeframe to complete the work. Karen Roberts noted that it would not be longer than three months but it is too early to say if it will be shorter. RMLD Oversight Task Force Meeting - January 17, 2002 - Page 2 FinCom Member James Francis asked if we could have the progress reports in writing. Karen Roberts asked how frequently. Discussion ensued that the Task Force would meet approximately one month with Melanson Heath since they would not have much to tell in the interim. RMLD Chairman Allan Ames asked if they find a problem, how would they deal with it. Karen Roberts noted that they would track the issue down to the responsible party. Following considerable discussion, the Task Force agreed that they would meet on February 28, 2002, a date that would accommodate everyone's schedule. RMLD Member Dan Halloran asked if Melanson Heath found a problem, how would they address it. Karen Roberts indicated that they would notify the Task Force via the Town Manager immediately. George Hines asked CAB Member Roger Lesard about the discussion at the Citizens Advisory Board Meeting last night. Roger Lesard noted that the committee met and talked about the capital budget. He brought the CAB up to date on the Task Force's work. He also indicated that the RMLD has decided to hire their own auditor. The CAB's view is to sit back and see what happens with the audit. They will keep the Task Force up to date. Regarding the duplication of the audit process, some of the CAB Members understood that the RMLD was taking action based on the advice of Counsel that the RMLD needs to do their own audit. Roger Lesard brought. up the idea of adding $40,000 to the $1.6 million earnings distribution that the Town of Reading gets. The CAB wants to wait for awhile and see how things play out. George Hines asked if the particular State statute was recited at the CAB meeting. Roger Lesard stated that he did not remember. Allan Ames noted that he would give the Town a copy of the briefs from their Counsel. His view is that the Light Board should go by the book. If it doesn't know the answer to something, it gets the advice of Counsel. They want to be cooperative in this process. James Francis asked Allan Ames whether he felt that Melanson Heath is credible. If he believes Melanson Heath is credible, then why would they hire another auditor. Allan Ames stated that the RMLD needs an inside auditor. Dan Halloran said that Jim Francis was being unfair to Allan Ames. He feels that the Light Board is obligated by Counsel to take the stand that they have. If the Task Force feels uncomfortable having members of the Light Board on the Task Force, then the Task Force needs to let the Light Board members know that. RMLD Oversight Task Force Meeting - January 17, 2002 - Page 3 George Hines noted that the concern is duplicated cost. Richard McDonald noted that the Light Board suggests that the Task Force should be placed on hold and wait for the Light Board's audit. He suggests that the complete opposite would be appropriate. Allan Ames asked if the Task Force would be more cooperative with the Light Board. George Hines noted that depending upon what Town Counsel finds with regard to statutory obligation, this may be more or less difficult. Jim Francis asked whether the Town of Reading should ask the other three towns to help pay for the audit. George Hines noted that the Reading Board of Selectmen is putting together a meeting with the other Boards of Selectmen and this issue can be taken up with them. Roger Lesard felt that this was a good idea but noted that the four towns are already paying for the Light Department's audit through their rates. Jim Francis noted that he hopes that the Melanson Heath audit is completed first and is credible. Roger Lesard felt that it would be more agreeable if the Light Board would wait on their audit. Jim Francis noted that it is his understanding that Barna (Counsel for the Light Board) stated that the Light Board audit had to go first. George Hines asked if the General Manager is already engaged. Allan Ames noted that the Light Department has hired Price Waterhouse Cooper. George Hines asked about the procedure used, and Allan Ames noted that Price Waterhouse was already interviewed by the Task Force. Town Accountant Richard Foley noted that he had received a call from the Account Manager at the RMLD asking who the other auditor was that the Task Force had interviewed but not selected. Jim Francis asked about the scope of the audit. Allan Ames noted that it would focus on issues flagged by the Inspector General. Under public comment, Bill Hughes noted "I as a Light Board Member was opposed to hiring a second audit." He was unaware that the General Manager was authorized to hire an additional auditor. He made a motion to use the Task Force auditor, and then give the results of that audit to Counsel to review. He also asked about the possibility of having the Attorney General do the second audit. We just found out this evening that the second auditor was hired. Priscilla Gottwald from the RMLD offered a copy of the motion to the Task Force. Gerry MacDonald noted that the Light Department is getting in deeper and deeper. He stated that there is an Attorney General's process for "civil investigation demand." He suggested that the Town consider using this. He also asked the Task Force to ask the General Manager to apologize for chastising the Town of Reading. Joe Veno, North Reading Board of Selectmen Chairman, noted that he was at the RMLD Meeting when the Board voted to go forward with the audit, and had asked what would RMLD Oversight Task Force Meeting - January 17, 2002 - Page 4 happen if the Town audit goes forward and is favorable to the Light Department. He also noted that a good point was brought up about the statute - was this the recommendation of Counsel, or is their statutory requirement that they do the audit. Joe Veno asked what the estimated cost of the Light Department's audit was, and Allan Ames thought it was about the same as the Town's - approximately $50,000. With respect to other Towns paying for the Task Force audit, he would have been more amenable had North Reading had a representative on the Task Force. George Hines noted that the communities have a representative through the CAB member. Joe Veno also noted that he was upset to hear Allan Ames suggest that the Task Force audit should be done later. Bill Brown noted that if the other Towns want to buy part of the Light Department, then they could have a voice on the Task Force. Jim Frances noted that all rate payers have a stake in this matter. Allan Ames noted that the CAB has a lot of authority and that therefore all of the communities have a part in this process. George Hines asked if the CAB was given an opportunity to review the General Manager's contract, and Allan Ames noted that they were not. Roger Lesard noted that when the CAB has made a strong recommendation, the RMLD Board has generally gone along with it. The CAB has quite a lot to say about the operations. George Hines noted that given the General Manager's Employment Agreement, he hopes the CAB will have even more oversight. Jim Francis asked if the CAB voted on the RMLD's audit and if so, they could have recommended that the RMLD wait. Allan Ames asked if the Task Force would wait on their audit. He noted that if the CAB gets another legal opinion, then they may change their mind. Richard McDonald noted that he had attended the RMLD Meeting on the 9th and thought that before another auditor was hired, Pacino (Member of the RMLD) wanted to get the CAB's opinion. George Hines noted that the CAB could ask for a legal opinion. There being no further business, on motion by Francis seconded by MacDonald, the RMLD Oversight Task Force voted to adjourn their meeting of January 17, 2002 at 8:30 p.m. by a vote of 6-0-0. Respectfully submitted, S