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HomeMy WebLinkAboutmin light commission 02/09/04 ('.'"- \ r- Minutes of Light Commissioners Meeting February 9, 2004 Present: Chairman Steven MacCaffrie; Vice Chairman David McCarter; Coniiiiissione,r. Louis P. Amoruso; Clerk Roger Achille; Commissioner Mike McCue; Director Ja~k Beliveau; Chief Financial Officer Kimberly Stoyle; Engineer Ann Langille; Engineer Chris Cox; Line Foreman Gary D' Ambra and Manager John D' Agostino Light Commissioners Meeting The meeting was called to order at 7:35 followed by the pledge of allegiance. Minutes of January 28,2004 Approved at the February 4,2004 Selectmen's meeting Questions and Comments George Dentino asked if he could defer his questions and comments until the end of the meeting as he thought some of his questions would be answered during the course of the meeting. Chairman MacCaffrie agreed. r- Fred Brown, 481 Gilbert St, addressed the Board regarding a power surge, which caused him to lose several appliances as well as his furnace controls. He explained an insulator grew into a tree, broke the neutral line and sent a surge. His out of pocket expenses were approximately $700. Director Beliveau stated thirty years ago the service was attached to the tree in front of 481 Gilbert St. because of the distance from the road to the house. It was often done this way years ago but the Light Dept would have no way of knowing how many there are. Should or could the Light Dept go around looking for them? Foreman Gary D'Ambra wanted the Board to understand this scenario is different from those in the past where the tree was rubbing against the service. In this instance the service was actually attached to the tree. Vice Chairman McCarter believed no one did anything wrong but in the interest of fairness felt a settlement could be reached. Commissioner McCue stated he was not prepared to make a decision tonight. He said he understood Mr. Brown's position but the Board needs to be careful about setting precedents. Commissioner Amoruso said what the Board does for one they have to do for all and there may be other situations which involve a larger dollar amount. ~ Motion: To permit Director Beliveau to enter into a negotiation with Mr. Brown and then come back to the Board with an equitable figure for them to vote on Passes 3/2 (Chairman MacCaffrie and Commissioner Amoruso against) r--- Commissioner Amoruso pointed out Mr. Brown was the property owner thirty years ago therefore he must have agreed to have the service on the tree. Clerk Achille felt Mr. Brown was not entitled to the full amount but should receive a portion of his expenses. Commissioner McCue questioned the issue of responsibility for past practices. Director Beliveau responded the law states there is responsibility only in the case of gross negligence. Public Hearing Motion: To open the public hearing Passes 5/0 Engineer Ann Langille read the first public hearing notice for a grant of location at School St. between Plymouth St. and the Route 495 overpass for manholes and electrical conduit. She further explained when the School St. bridge reopens electric service would be underground across the bridge. Commissioner Amoruso asked how the neighborhood, such as the people in the cui de sac, would be affected? Engineer Langille answered they would be unaffected. Motion: To accept the grant of location at School St. between Plymouth St. and the Route 495 overpass Passes 5/0 r--- Financial Report for December 2003 Chief Financial Officer, Kimberly Stoyle, reviewed the profit and loss statement and the balance sheet for December. Total metered sales for December were $1,974k and total power production expense was $1,408k. Net income for the month was $24k while there was a net decrease to surplus of $47k. The profit is right in line, coming in at 8.3%, before the final audit. The balance sheet shows Distribution and General Plant is up 7%. There were 12 outages for the month, I of which was due to a squirrel. CFO Stoyle reported the e-billing is now live and the web page has been updated. Commissioner Amoruso inquired as to whether a change had been made in regards to accessing a customer account on the website. CFO Stoyle said in addition to knowing the account number, the customer also has to input the service address. Also, there was a notice put on all bills printed from the internet that they could not be used for identification purposes. Director's Report ~ Chairman MacCaffrie inquired as to how things were going with Mass Electric and National Grid in regards to the new East Side Substation? Director Beliveau responded their participation was being encouraged and that he was reasonably optimistic. 2 Chairman MacCaffrie asked if the public had been notified? Director Beliveau answered (' no action had been taken as of yet but should a public hearing be scheduled? Manager D' Agostino said yes, as long as there were some definitive plans. Public Hearing Motion: To open the public hearing Passes 5/0 Engineer Ann Langille read the second public hearing notice for a grant of location at the intersection of Oxford, Forbes and Cabot for a manhole and electrical conduit. She stated this was a maintenance issue, as an existing small manhole needed to be replaced with a larger one as part of a system upgrade in the Industrial Park. Installation will be coordinated with the Police regarding traffic concerns. Motion: To accept the grant oflocation at the intersection of Oxford, Forbes and Cabot Passes 5/0 Director's Report continued r At a prior meeting, Chairman MacCaffrie had made a motion for police details to be paid through the warrant as they had been done previously. The motion was tabled for further clarification. Town Accountant Bea Kearney and Town Treasurer Richard Boucher were in attendance to discuss the issue. Accountant Kearney explained invoices are generated and put into each department's mail slot on Thursday preceding the payroll enabling each department to check for errors. This provides better control over payroll, in an attempt to avoid any mistakes. Treasurer Boucher said the change was made three and a half years ago because it was difficult reconciling the police detail accounts. Before there were more steps and extra work and now charging accounts directly is easier. r- Clerk Achille inquired as to who intiated the change? Treasurer Boucher said it was an administrative change they did not feel necessary to bring to the Board. Clerk Achille asked if the Light Dept had been consulted about it? Treasurer Boucher was unsure but does remember clearing it with Manager D' Agostino. CFO Stoyle clarified that the Light Dept was not given any notification of the change. She first learned of it when performing her cash reconciliation where she discovered that police detail payments were being deducted twice from the Light Dept operating cash account. Details were being processed through the warrant, as was the traditional practice, and the detail was also being transferred by the Town Accountant/Treasurer's office. CFO Stoyle stressed the need for checks and balances as well as a clean audit trail and believes this is accomplished by placing items on the warrant for payment. This was also the recommendation of the auditor, Jim Goulet. The previous system was designed to attach proof of all detail slips with the items placed on the warrant for payment. The linemen turn signed slips in for each detail to the accounts payable clerk. This provides a check and balance for all details worked. Chairman MacCaffrie asked if the policemen who worked the details were paid twice? CFO Stoyle answered that the amounts were taken 3 . ' r out twice, however, she was unsure if they had been paid twice or if the police account had been over-funded by the double payment. The Treasurer and Town Accountant indicated that the police were not paid twice. Treasurer Boucher explained each department receives the invoice on Thursday, checks it right away and lets him know of any mistakes so payroll will be done correctly. This is especially important if the detail was done by someone from out of town. CFO Stoyle reported that the Light Dept does not receive the invoice on Thursday and that by the time she sees the figure on the cash sheet, it has already been paid. She assumed that Accountant Kearney was requiring back up for all invoices paid. Accountant Kearney answered that it was the responsibility of each department head to verify the invoice. Director Beliveau stated 25% of the details could not be verified because the invoice was received long after the individual had been paid which made it difficult to go back and check. He also said that according to the police there was no system of verification. r Accountant Kearney stated the DPW had no problems with this procedure and she was unaware that the Light Dept did. Commissioner McCue said he was comfortable with the policy as it is, as he believed what Treasurer Boucher and Accountant Kearney had to say. He felt that it was an administrative issue which the Light Dept needs to work out with the Police. CFO Stoyle pointed out that auditor Jim Goulet recommended placing all items on the warrant for payment. Commissioner McCue disagreed with the recommendations of the auditor and wished to have the Treasurer and Town Accountant carry out their chosen procedure. He believes that using the warrant is all well and good if the Light Dept worked alone but pointed out that it is part of the Town. Vice Chairman McCarter offered he had no problem with Accountant Kearney's procedure but was concerned with verifying the police details. Foreman D' Ambra explained how a slip is filled out on every job, the policeman signs it and it is turned in to the accounting dept at the Light Dept. The motion to pay police details on the warrant was left tabled. There will be a meeting with all parties to fine-tune the current procedure. FY 2002 Audit Jim Goulet, from Goulet, Salvidio & Assoc., was in attendance. He recommended using the warrant to pay police details instead of directly charging the account. r Mr. Goulet reported the FY 2002 draft audit is accompanied by a "qualified opinion" due to the lack of an adequate response with regards to a litigation matter involving Kimberly Stoyle, Chief Financial Officer. Mr. Goulet contacted Attorney Mangiaratti by letter in January of 2003 regarding the Stoyle suit. The letter was sent out once again and e-mails were exchanged regarding this outstanding issue. Attorney Mangiaratti did not respond until November of 2003 and in the response indicated that his firm was not handling any matters pertaining to Kimberly Stoyle and was unaware of any actual claims that existed as of December 31, 2003. He indicated that another firm was handling the matter but neglected to name the firm. This was unresponsive and therefore a qualified opinion was 4 . ' r- issued. Mr. Goulet stressed the urgency of identifying the representing counsel so this item could be cleared up and an audit could be issued without a qualified opinion. Vice Chairman McCarter suggested the Board give Mr. Goulet the information that he needed. Commissioner McCue provided the name, address and telephone number, John Davis, 10 Winthrop Square, Boston, MA 02110, (617) 350-0950. Manager D'Agostino offered to set up a meeting with Attorney Mangiaratti, Mr. Goulet and himself. Mr. Goulet indicated that if Attorney Mangiaratti is not the attorney of record then there would be no need for a meeting. Upon receipt of the legal confirm from Attorney Davis, a final audit will be presented to the Board for approval. r-- Director Beliveau suggested Mr. Goulet address the issue of the Light Dept's fiscal year. Mr. Goulet explained the DTE required, for comparative purposes, all municipal light departments to be on a calendar year. There is no flexibility with this. He also said the Light Dept is only allowed to make 8% profit. Commissioner Amoruso believes there are light departments that, with a one-time act of legislature, can account for the cash portion of the payment in lieu of taxes above the line. CFO Stoyle said that to the best of her knowledge, all light departments must account for the cash portion payment in lieu of taxes below the line. She was interested in Commissioner Amoruso's new information and asked that he share it at some point in the future. Commissioner Amoruso agreed to get clarification and report back. Chairman MacCaffrie pointed out there does not have to be a PILOT and Vice Chairman McCarter thinks, perhaps, he never understood the PILOT. CFO Stoyle added she would prefer a fixed cash amount for the PILOT instead of the 10% above profit formula. Vice Chairman McCarter said he would never advocate pillaging the Light Dept to give to the Town and is concerned with how the PILOT amount has grown. Mr. Goulet stated he was aware Manager D' Agostino was looking to change auditors and said his expertise did not include auditing towns but that he did audit approximately 25% of the light departments throughout the state. He did believe the formation of an audit committee was a good idea and respectfully asked to be invited to the committee meeting. Chairman MacCaffrie answered it may not even happen but the Board would be happy to have him serve on the committee. Mr. Goulet will contact Manager D'Agostino's office in the morning regarding the meeting with Attorney Mangiaratti to straighten out the legal letter issue. Charges to Customers Engineer Chris Cox has been working on analyzing National Grid's methodology of one year's revenue offsetting construction costs. He needs approximately one more month to come back with the numbers. Director Beliveau reported the e-billing is up and running. He mentioned the customer who had concerns about identity theft. "Not to be used for identification purposes" will now be printed across the customer's account. r-- 5 , '. Chairman MacCaffrie inquired about Shawn Curran's accident. Foreman D' Ambra r--- reported Shawn is fine. He explained medflight is procedure in these instances. He added how he appreciated the off-duty firefighters who did such a great job, since at the time of the accident, the Fire Dept was out straight with other problems. Questions and Comments continued George Dentino pointed out, in regards to paying the police details, no one knew for sure the verbage of the contract and whether or not the police did have to be paid within 10 days of the detail. He questioned taking away the checks and balances by not using the warrant? He asked why the Light Dept signs slips and sends them in and does the DPW do the same? Previously, any double billing had been denied by the Town, but Mr. Dentino pointed out it had been admitted to during this evenings discussion. He also wondered about Commissioner McCue's statement that following Treasurer Boucher and Accountant Kearney's procedure for paying police details is for the greater good. Whose greater good? r- In regards to the auditors, Vice Chairman McCarter stated it was a simple request to have Mr. Goulet sit down with Attorney Mangiaratti. Mr. Dentino asked since it was such a simple request, why did it take so long to accomplish? He also questioned why Manager D' Agostino wanted to sit down with Mr. Goulet and Attorney Mangiaratti when Mangiaratti is not the attorney of record. Mr. Dentino wanted to know why the Board wasn't sitting down with Attorney Mangiaratti instead of Mr. Goulet? He pointed out Mr. Goulet was just the poor guy who couldn't get an answer and it should be the responsibility of the Board to follow up. Mr. Dentino stated it was painfully evident that one auditor was not needed for both the Light Dept and the Town as the Light Dept always reconciles their books but the Town hasn't balanced in 10 years. Chairman MacCaffrie said if there are firms able to service both, then they will be considered. Mr. Dentino pointed out it is not standard practice for both the Town and the Light Dept to have the same auditor. Commissioner Amoruso was not in agreement with Mr. Dentino's statement that the Town hasn't balanced. Mr. Dentino explained that only one account was balanced. Old Business There was no old business. New Business Chairman MacCaffrie suggested putting money in the budget for a generator. Director Beliveau will address this at the next meeting. The date for the next meeting was set for Monday, March 15, at 7:30. r 6 .... . - Adjournment r Motion: To adjourn the Light Commissioner's meeting at 10:00 Passes 5/0 Respectfully submitted: Jacqueline Lee 3/15/04 Rlr?/lk- Signature of Clerk J//0r Date 6f Approval r-- r-- 7 --