HomeMy WebLinkAboutMinutes - BoS - 12/02/2010 Minutes—Board of Selectmen December 2, 2010
Selectmen Present: Karen Quigley, Chairman
Edwin G. Carr
Paul Carlson
Leland H.Jenkins
Selectman Absent: Frederick Koed
Others Present: Stephen J. Lombard, Interim Town Manager
Eric Kinsherf, Interim Finance Director
Jennifer Brennan Oram, Selectmen's Clerk
Attorney Rick Manley of Edward Angell Palmer& Dodge LLP
Cinda McNerney of First Southwest
John Sullivan of Melanson Heath & Company, PC
Chairman Quigley called the meeting to order at 3PM.
Mr.John Sullivan of Melanson Heath &Co. reviewed the bond issue that was discussed at the November
22, 2010 meeting. Mr. Sullivan stated that they are still examining and reviewing the costs to those
bond authorizations and it's with that review that they came forth with the one million dollar number.
The Town has bonds that are maturing on December 10th for both Water and Sewer and the DOR is
looking for the number as well. Mr. Sullivan also addressed the audit his firm is conducting. He stated
that in the end, the report will be his opinion and that many of the issues will be based on judgment.
DOR and Bond Counsel will look at his work and they may or may not agree with him. He went back to
the issue at hand saying that the one million dollars is an estimate.
Mr. Sullivan was hoping to provide a draft of the report by December 15th, but that is proving difficult as
American Water has stopped cooperating with him and is seeking counsel. He stated that American
Water and its employees have been a great independent source to gather information and now there is
a roadblock. Not having this information makes it very difficult to come up with the accurate deficit
number for the Town.
In addition to the water bonds, Mr. Sullivan is having difficulty balancing out the grants and the
reimbursements. He is waiting on information from Norfolk Ram and until he receives it, he cannot
complete the report. Chairman Quigley suggested he work with Mark Brennan and Tom Gruber as they
have reconciled these accounts before for the previous Town Manager.
Mr. Sullivan explained how tenuous the million dollar amount is. He stated that of the twenty-seven
million dollars of projects and the accounting they have gone through he came up with $989,914 that
was questionable as to whether it was is actually allowed to be applied to the bond. In addition, if any
of that$989,914 is set to mature on December 10th some of that Bond Council or the Bond advisor may
not feel comfortable rolling. Mr. Sullivan stated that through this process, he reviewed $440,000 as part
American Water Bills; he identified $244,000 as potentially questionable.
Members in the audience, including Steve Gaumer of the Capital Budget Committee and Mr. Peter
Pescatore of the Advisory Committee asked a series of questions.
There was then an extensive conversation about American Water not working with the auditing firm.
Selectman Jenkins asked Mr. Sullivan why he thought they were not willing to discuss the issue any
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Minutes—Board of Selectmen December 2, 2010
further. Mr. Sullivan stated that he felt they it could be the staffing issues and how the RFP for the
projects complied with 40B requirements and they could be in violation of contract. Mr. David Farrag of
the Conservation Commission suggested the Board ask Town Counsel to address the issue with
American Water. Chairman Quigley stated she was not opposed to ask that question. Selectman
Carlson asked when Mr. Sullivan had asked for the additional information; he stated right before
Thanksgiving. Chairman Quigley suggested they give the Water Department until Friday and then ask
for a status on the requests.
Chairman Quigley then asked Cinda McNerney of Southwest Financial what the Board needed to do to
move forward. Ms. McNerney stated that the Board will need to approve the sale of the notes. She is
hoping to get the documentation to the Board to do so in the next day or so. Mr. Lombard thanked
everyone for their help and cooperation. Chairman Quigley echoed his sentiment.
Selectman Carlson moved to adjourn the meeting. Selectman Jenkins seconded the motion and the
vote was unanimous(4-0). Meeting adjourned at 4:30PM.
Respectfully submitted,
Karen Quigley
Chairman
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