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HomeMy WebLinkAbout2002-09-25 ad Hoc - RMLD Governance Advisory Committee MinutesRF- CEIVED TOWN CLERK READING. MASS. Ad Hoc RMLD Governance Advisory Committee Meeting September 25, 2002 ZOOZ OCT 21 A C. 5b The meeting convened at 7:30 p.m. at Town Hall Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman Dan Ensminger, members Jim Francis, Doug Cowell, John Carpenter, George Theophanis and Matt Cummings. Also present were North Reading Selectmen Joe Veno and Town Manager Peter Hechenbleiliier. The Town Manager distributed tapes from the joint session of the RMLD and the Finance Committee regarding power purchase. The tapes were given to George Theophanis and Dan Ensminger. They will circulate them to the other members. On motion by Cowell seconded by Cummings the minutes of September 9, 2002 were approved by a vote of 6-0-0. Dan Ensminger reviewed the agenda and gave a report on the meeting with the Board of Selectmen on September 24, 2002. There was discussion about additional issues including purchasing, and making sure that the power purchasing process is appropriately done and audited appropriately. A suggestion was made that a mission statement as spelled out in the 20 year agreement should be that the RMLD continue to provide economical and dependable power to the community served. The Town Manager asked what communities the Advisory Committee would like to come in to talk with them. Taunton was suggested as well as perhaps Concord or Danvers who use the "Town Manager as General Manager" model. We are looking for communities of like size and number of meters and number of employees. They would like to see models where there is an appointed board as well as an elected board. Doug Cowell indicated that he favors a model where the Town Manager is the General Manager with appropriate staff at the Light Department to handle day to day management. Jim Francis noted that we should not make change for the salve of making change. We should be very careful to think about change that doesn't necessarily solve the problem. Joe Veno was the only member of a Board of Selectmen from the served communities responding to the Advisory Committee's invitation to attend and speak. Veno noted that he represents the Town of North Reading. He felt it is clear that closure checks and balances are needed of the Light Department. He agrees with Jim Francis' comment about not making drastic change for the salve of change. He feels that in large measure the problem is gone. He is not in favor of having the Town Manager as a General Manager. He wondered to what extent Town Hall can or does tell the Light Department how to operate. He indicated that you could get a poor Town Manager or Board of Selectmen and wind up with the same problems. Matt Cummings noted that two weeks ago the Advisory Committee had a discussion with the Reading Municipal Light Board, and having heard their observations about their role in the CAB do the work on detennining earnings distribution in the Town of Reading, rate setting, approving operating budgets, and approving capital budgets. Joe Veno did not feel that the Citizens Advisory Board should have more authority than what is outlined in the 20 year agreement. He feels that the RMLB's job is to set policy. He noted that in North Reading, people are very satisfied with the Reading Municipal Light Department and their reliability. Carpenter noted that some of the RMLB members felt that the solution would be to stop being a Town Department and start being a regional cooperative. Joe Veno disagreed. He feels that North Reading is concerned about the problems that were created by the Reading Municipal Light Department, but not as concerned as Reading residents. He indicated that the only concern that North Reading has is if a major change is made that would allow the Town of Reading to utilize rate payers funding this would be a major concern. He would also be a concerned about whether changes would drastically affect the 20 year agreement. Perhaps the Town would want to have the General Manager hired by the Town Manager. The group talked about other issues about how the Municipal Light Department budget is prepared, and whether other businesses that the Light Department might enter into should be restricted to the service area --like cable TV or internet access. The Town Manager noted that there are other cooperative ventures that could be done between the Light Department and the served communities, including geographic information services, vehicle maintenance, traffic light maintenance, utility billing, etc. The Advisory Committee discussed the General Manager's contract and whether or not there should, in fact, be a General Manager's contract. The Advisory Committee reviewed the survey results, and an outline that Dan Ensminger put together addressing some of the potential options. Items discussed were policy formulation as a solution to problems, criteria for setting policies on significant issues such as Warrant signing, provision of legal services, the difficulty of understanding the financial statements from the Light Department and how to make the Light Department accountable. It was suggested that the report that the Advisory Committee makes to the Board of Selectmen and to the public should snake a firm statement about who the Reading Municipal Light Board is and who they are accountable to. The Advisory Committee will also need a concise memo from Town Counsel dispelling the myths vis-a-vis the 20 year agreement. John Carpenter suggested that there should be a amendments to the Charter. Doug Cowell noted that he didn't see the value added by a Light Board and this should be reviewed. George Theophanis noted that the Light Board refers to rate payers dollars when it is really the Reading tax payers who are the stock holders, and the rate payers who are customers. Jim Francis disagreed. He thinks that the responsibility is to the shareholders, the customers, the employees, and the vendors. Francis noted that we have to be very careful about any impact on customers - we can't afford to lose any because of the affect it would have on the system. John Carpenter noted that we need to keep faith with the customers. We do that through efficiency and level service. We need to support customers and employees, but we need to be aware that this is the Reading Municipal Light Department and the Town of Reading are the owners/investors and take the risk. Town Manager asked if, based on previous comments, the Advisory Committee wants to invite employees to come in and meet with the Advisory Committee. George Theophanis thought that we should deal with the issue of expansion and new services. How does direction from the community get to the Light Board? The consensus was that this should and could be done through Town Meeting. Jim Francis noted that FinCom should also exercise its investigative authority with regard to the Light Department and could do that randomly. The next meeting is on October 3'.d. The CAB will be there. The Town Manager asked if it would be okay if he re-arranged the work that Dan Ensminger did along with incorporating some of the comments from the Advisory Committee this evening. The consensus was that this would be fine. On motion by Cummings seconded Cowell the Advisory Committee adjourned at 10:10 p.m. on pvte of 6-0-0. c y bmitted, ary