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HomeMy WebLinkAbout2002-01-03 RMLD Oversight Task Force MinutesRMLD Oversight Task Force Meeting January 3, 2002 'J r U 14 The meeting convened at 7:30 p.m. in the Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman George Hines, Vice Chairman Richard McDonald, RMLD Chairman Allan Ames, Selectman Matthew Cummings, CAB Member Roger Lessard, RMLD Board Member Dan Halloran and Finance Committee Member James Francis. Also present were Town Accountant Richard Foley, Town Manager Peter Hechenbleikner, James Haggerty from the Chronicle, RMLD General Manager Len Rucker,' Light Board Public Relations Director Priscilla Gottwald, RMLD Board Member Bill Hughes, resident Gerry MacDonald, resident Bill Brown, Fred Livingstone and Attorney Allan Hoffinan. On motion by Ames seconded Cummings, the Oversight Task Force voted to approve the minutes of December 27, 2001 with the following amendment: The Task Force discussed the funding of the audit and the oversight. Selectman Matthew Cummings expressed preference that the oversight be within the municipal government, and that the funding be committed to the municipal government rather than bills being paid by the Reading Municipal Light Department. The motion was approved by a vote of 7-0-0. Report on Financial Arrangements Town Manager Peter Hechenbleikner reported that the Finance Committee had approved a Reserve Fund Transfer in the amount of $40,000 on a contingent basis, with the expectation that the Light Department would fund this work by a transfer to the Town of Reading, and the Reserve Fund Transfer would not have to be used. RMLD Chairman Allan Ames asked whether this is a FinCom investigation, and the Town Manager indicated that it was not because if it was, the reserve fund. could only be used by approval of the Town Moderator. The Reserve Fund .Transfer is to the Selectmen's expense account and this Task Force was established by the Board of Selectmen. Allan Ames indicated that he had a long discussion with Counsel today and asked Counsel to draft the "most demanding motion" that the Light Board can give for directing the General Manager. He asked the Task Force to support the motion. The motion was reviewed by the Task Force and a copy of the motion was distributed. Selectman Matthew Cummings asked Mr.. Ames if it was his contention that the Town does not have the right to audit the Light Department, and Mr. Ames indicated that it was not. Chairman George Hines asked the General Manager how he would respond to that motion by the Light Board. The General Manager indicated that DPU Ruling 8225 indicated that the Light Department can't give a Town money "above line." George Hines asked if the Light Board passed the motion as presented, would it be the General Manager's intent to hire an additional auditor. The General Manager indicated that if the Light Board directed him to do it, he would do it. There was discussion as to whether or not the Light Department could hire the same he was sure that Melanson Heath would not take the job. RMLD Oversight Task Force Meeting - January 3 2002 Page 2 FinCom Member James Francis noted that at the last meeting the General Manager stated that he would cooperate completely. He wanted to make sure that the Task Force and the forensic auditor would still have the full cooperation of the General Manager and the Light Department. The Task Force reviewed the scope of work from the auditor. Chairman George Hines noted that Melanson Heath indicated that they would not respond to requests for information by the media. Public documents will be released through the committee. The Town Manager will be responsible for the day to day communications with the auditors, and George Hines and Richard McDonald will be available as needed. Selectman Matthew Cummings asked to add to the scope the following: "expenses related to other businesses with which the RMLD is involved will be tracked to determine whether those expenses are appropriately charged to that other business including payroll, benefits and travel and entertainment costs." RMLD Chairman Allan Ames wondered at what point the audit will be of use to the department. Vice Chairman Richard McDonald noted that when the audit is complete, the report will point out deficiencies and make recommendations. FinCom Member Jim Francis disagreed strongly with Selectman Matt Cummings' point since the expenses and revenues from the other businesses are directly related to the General Manager's compensation. Review of Status of Information Requests The Town has received the General Manager's employment contract, which has been represented as being the only employment contract within the Light Department. The Town has also received organizational charts and the RMLD policies. Still pending are payroll time records, audits for the RMLD including management letters for 1998, 1999 and 2000, petty cash records, and information on dues, publications and seminars. The General Manager believes that all of the information will be available tomorrow. The timesheets are very time consuming to pull together. All of the material will be sent to the Town Manager who will then distribute to the auditor and to the Task Force. He asked his staff to hold information until it is all together. Additional Business FinCom Member Jim Francis asked about the process. He has a lot of questions of the General Manager and/or the commission and wondered when the appropriate time would be to ask them. Chairman George Hines felt that we should wait until we have the report from the auditors. Vice Chairman Richard McDonald agreed we need to let the auditors pull all of their material together. Selectman Matthew Cummings noted that he also has a lot of questions. Many of the questions are about policy and the employment agreement. He also has questions about oversight and line of responsibility. He believes that the report will provide the forum for those who have the responsibility for the operation of the Light Department. He, therefore, suggested that we should wait for the report. RMLD Oversight Task Force Meeting - January 3, 2002 - Page 3 Chairman George Hines recommended that each of the members of the Task Force keep their constituent bodies informed as to the progress. The Task Force set up a meeting for January 17, 2002 at 7:30 p.m. in the Conference Room. Public Comment Bill Hughes asked if the auditors would publish an agenda and provide working space when they wanted to interview people. Chairman George Hines indicated that Melanson Heath has done audits before and they are very professional. They will give adequate notice. Light Board Public Relations Director Priscilla Gottwald presented the Task Force with a tape of the meeting, and asked if the meeting that took place prior to this meeting with Melanson Heath is a public meeting and the Task Force wanted that taped also. Chairman George Hines noted that it was a working business discussion to set the parameters of the contract it was not a public meeting. RMLD General Manager Len Rucker and also Bill Hughes questioned it. On motion by Cummings seconded by Francis, the RMLD Oversight Task Force voted to adjourn their meeting of January 3, 2002 at 8:20 p.m. by a vote of 7-0-0. S