Prudential
Committee Meeting
APPROVED
Committee Members
Present: Robert Ronzio, Chairman; Gilles Beaudoin (arrives at
Committee Members
Absent: Jerry Summit, Vice Chairman; Marty Feit, Clerk-Treasurer
Public Present:
Albert Barvenik, Frances Barvenik, Bill Brownhill, Joyce Brownhill, David
Devane, Nancy Devane, Murielle Forster, Jim Griffin, R. Guevin, Al Labombard, Sandra
Labombard, Dennis LaChapelle, Howard Lerner, Gail McGeer, John McGeer, Eric
Nielsen
Meeting called to
order at [tape starts just after time is stated]
Mr. McEnerney moves
that Murielle Forster be Acting Clerk for the day; motion seconded; unanimous
approval.
Mr. Ronzio states
that Public Participation will be primarily limited to issues that have to do
with the purpose of this meeting which is as the result of a report from MEMA
which was sent to all cities, towns, and districts in the state.
Mr. Bonney speaks
of his ongoing communications with the Attorney General. He requests that a
special line item be put in the budget for which roads will be done and the
price of the road.
Mr. McEnerney
asks Mr. Bonney if he has anything else to report on his statement at the last
meeting that non-residents were really not part of the Prudential Committee.
Mr. Bonney says the A.G. is still standing with that but the Town of
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Public Participation
Mr. Guevin asks
if borrowing from the Money Market “is going to put us in the same situation as
the last time we took money out of the money market and . . .” Mr. Ronzio
replies, “No.”
An unidentified male individual asks if there has been anything
received in writing from the A.G. reflecting any of what Mr. Bonney has been
saying at previous meetings. Mr. Ronzio answers that there has bee no response
to date.
Communications
Mr. Ronzio
addresses a letter received from Ken McBride, Acting Director of MEMA;
Subject: Preliminary Damage Assessment
for the April Nor’easter 2007. He says the report was sent to the Town via FAX
on the 17th which was due the following day. He reported that the
Fax was unreadable so contacted MEMA the next morning. MEMA sent the district
an e-mail which said that for agencies that started their report they were due
by April 18th; for agencies that hadn’t started their report it
would be due on Thursday, April 19th. He then went around and
assessed the damage to the roads and came up with a figure of approximately
$78,250 (Seventy-eight thousand, two hundred and fifty dollars). That
information was then submitted to MEMA. He also submitted an addendum
explaining what was being done which he reads into the record. He also put in a
supplemental report addressing residential/business damage. The state will
submit information to the federal government and if a certain threshold is met
then, “Hopefully the district will get reimbursed like it did with the last
storm which was about 75% of the cost.”
Mr. Ronzio reports that he also received a phone call from Stephen
and Joan Sobol who reported damage to their septic system on Thursday the 19th.
A corner of their mound system was washed away when a culvert near their
residence failed.
Authorize the Borrowing
of Funds Against the Money Market Account
Mr. Ronzio states there is approximately $62,000 (Sixty-two
thousand dollars) in the Money Market account. He reads from Chapter 44 of MGL
regarding “Powers to Borrow”. Mr. Bonney asks if this will go out for approval
of the district voters. Mr. Ronzio states that the money that is taken out of
the Money Market account is going to have to go before the voters because the
district can’t take the money out of the Money Market without doing that so the
district will actually have to borrow the money to pay the bills.
Mr. Ronzio puts the question to the Committee of whether they are
going to authorize the Clerk/Treasurer to borrow against the Money Market
account in accordance with MGL and the Special Act. Mr. McEnerney asks if it
will affect the future budget – push the budget up? Mr. Ronzio quotes MGL which
says “the proceeds of any such reimbursement shall be applied to the discharge
of the loan without the necessity of further appropriations.” Mr. McEnerney
asks how much money will need to be borrowed. Mr. Ronzio says he would like to give
[Mr. Feit] the authority to go ahead and make appropriate arrangements with the
bank up to the limit of the money in the money market account.
The work that needs to be done is discussed, as well as proper
procedure for borrowing money. Mr. Bonney is concerned that the borrowing must
be approved by the voters and not just by the Prudential Committee.
Mr. Bonney proposes, “to put it to the people if they are willing
to have us borrow money for them to fix the roads,” and says he has to have a
figure of how much is to be borrowed.
An unidentified male individual haranguing the committee from the
floor is asked by Mr. Ronzio to leave.
Mr. Ronzio states that the
Prudential Committee represents the district in all these matters and they have
the power to do what needs to be done under .the Special Act and the by-laws.
Mr. Bonney says, “We can recommend . . . “ Mr. Ronzio says, “It is not a
recommendation . . .[after a minute or two of silence] he continues I’m looking for a motion but if someone is
not going to make a motion then the meeting is basically over.” Mr. Bonney
says, “I made that a motion. It goes to the people first.” Mr. Ronzio asks for
a second to the motion . . . none comes; Mr. Ronzio says then that the motion
fails since there is no second.
An individual from the audience offers a second.. An unidentified
female individual speaking out asks, “And when will this be?” Mr. Bonney
responds, it would have to be a special meeting with fourteen days notice. The
woman then says, “So that the roads would stay the way they are in disrepair
until the people vote?” Mr. Bonney’s answer is unintelligible. Mr. Ronzio reads
from MGL, “the Treasurer of the District may with the approval of the
Prudential Committee incur debt outside the debt limit.”
Mr. Ronzio says, “Mr Bonney made the motion again. . . we now have
seconded to the motion, from Mr. Beaudoin. Any further discussion?” No
response. Mr. Ronzio calls for the vote. Two votes of “Aye” Mr. Bonney and Mr.
McEnerney, then two votes of “Nay” Mr. Beuadoin and Mr. Ronzio. The motion
fails.
Ms. Devane asks from the floor, “Is there any way that this money
wouldn’t be granted?” Mr. Ronzio answered that, we’re not guaranteed that the
money is going to be reimbursed. However we do have money available. . . under
Ch 40 § 5D . . . the money that went to the Money Market account is in essence
a stabilization fund under the statute. He further states that the last time we
asked for reimbursement it didn’t come back to the district for about six months
but we did get reimbursed. He reiterates that reimbursement would be most
likely be 75% of cost.
He now speaks to the committee, saying that if we’re not going to authorize Mr. Feit to borrow any money, we’re going to have to
put together a warrant for another meeting. He continues that the committee can
do that but it’s going to be at least two weeks before we get that money out of the Stabilization Fund. If we prepared the warrant today we could have
a meeting on the 16th.”
There is a discussion amongst the committee about the contractor,
preparing a warrant and having the money available to pay the contractor in a
timely manner.
From the floor there is heard a discussion of the dysfunctionality
of the committee and respect of members of the community. An unidentified
individual offers an interpretation of the part of MGL which has been read in
which the Prudential Committee is authorized to borrow the money. This is
further discussed, as well as if/when/how Mr. Bonney was notified of this
meeting. Mr. Ronzio states that Mr. Beaudoin contacted Mr. Bonney by telephone.
Mr. Ronzio states we are still at the item on the agenda entitled,
Authorize the Borrowing of Funds
Against the Money Market Account and the second item which is, The Realocation of the Stabilization
Money. He reads once more from MGL. There is more discussion, both of
borrowing money and of whether work must go to bid and what work would be paid
for with the borrowed money.
Mr. McEnerney asks for clarification of what the funds in the
Money Market. Mr Ronzio responds that
the district hasn’t formally established a stabilization fund. This money
market money is regular [tax money] that was
collected but wasn’t spent in previous years so it was put into a CD to
get better interest. Mr. Ronzio states that he believes that it is in essence a
stabilization fund according to the statute.
Mr. Beaudoin makes a motion to “borrow against the money to
strictly fix the damage that has been done during the past storm – the April 17th
Nor’easter. And that includes the waterways because a lot of the problems were
caused by the waterways.”
Mr. McEnerney says, “It’s not actually that we borrow the money to
do that, it’s that we authorize that work to be done.” Mr. Ronzio says, “You
can borrow the money immediately against . . .” Mr. McEnerney asks, “. . .
against the Stabilization Fund?” Mr. Ronzio replies, “Against the Money Market
account. You’re basically using the Money Market account as collateral.” Mr.
McEnerney asks, “Where are we getting this money?” Mr. Ronzio says that he
believes that the Clerk/Treasurer [Mr. Feit] said he could get zero percent
interest on a loan by using the money in the Money Market as collateral.
Mr. Ronzio asks if there is a second to Mr. Beaudoin’s motion; Mr.
Bonney seconds. Mr. McEnerney asks Mr. Beaudoin to restate his motion to
be sure that it’s clear. Mr. Beaudoin says, “I put a proposal to borrow money
against the Money Market fund to be used strictly for the April 17th
Nor’easter storm for damaged roads and waterways.”
Mr. Ronzio states that motion gives the District the authority to
borrow. Later there will need to be another motion at another meeting made to
take the money out of the Money Market account to pay off the borrowed money.
Eventually, that will be done by warrant.
Mr. Bonney again seconds Mr. Beaudoin’s proposal. Mr. Ronzio asks,
“Any further discussion?” Hearing none, he asks, “All those in favor?” Three
“Ayes” are heard on the tape. Mr. Ronzio says, “Motion carries.”
Budget Reallocation
Stabilization Fund Money Market Fund
Mr. Ronzio requests a motion to cause the committee to prepare a
warrant for the money to be withdrawn from the Stabilization Fund to pay off
the borrowed funds. Mr. Bonney asks if any funds received as reimbursement from
the state will be put back into the Stabilization Fund. Mr. Ronzio says that
decision would have to be made when those reimbursed monies are received but
adds that the motion could be made now. He asks if someone would like to make
that motion.
Mr. Bonney says, “I’ll make
it a motion, but if you take the whole motion that we’re going to take the
money out of the money market account [Stabilization Fund] to pay off the loan
and any reimbursement we get goes back into the money market account [Stabilization
Fund].”
Mr. Ronzio asks if there is any further discussion. None is
forthcoming. A second to the motion is heard on the tape. Hearing no further
discussion Mr. Ronzio calls for a vote. Four “Aye’s” are heard on the tape.
Mr. Ronzio goes on to the next item on the agenda which he says in
accordance with the Special Act. Under Section C the district will indemnify
its officers and employees to the extent of Item . . . [not audible]. Someone
asks where it is in the Act and Mr. Ronzio says it’s on page 12. Mr. McEnerney
clarifies that this has to do with the bonding of the board. He says he thought
there was a bond in effect. Mr. Ronzio says he can’t seem to find it. There is
discussion here that the word “bonding” has been used but it is, in fact,
“indemnification” and of who must be bonded . . . just the Treasurer, or board
members too. Mr. Ronzio asks if someone would like to make a proposal, “in
accordance with the Special Act Section C – 2C, where it says that the District
may indemnify its officers and employees.” He says, “We have bonded the
employees but we haven’t indemnified them. The question is, ‘Do you want to do
that?’ Yes or no? If you do then I need a motion.” Someone asks what this would
cost and Mr. Ronzio says he doesn’t believe there would be any cost associated
with it.
Mr. McEnerney moves to “have the Clerk-Treasurer look into costs
for indemnifying the board against lawsuits”. A second by Mr. Beaudoin is made.
There is no further discussion. Mr. Ronzio calls for a vote and three “Ayes”
are heard on the tape.
Special Meeting Date
Mr. Ronzio says that the Special Meeting that was approved for
April 28th did not get posted in time. He proposed to move it to May
12th.
Mr. Bonney asks, “What is the meeting about and who’s going to
vote at that meeting?”
Mr. Ronzio presents a copy of the proposal that was signed (by
himself, Mr. Summit, and Mr. Beaudoin) and didn’t get posted in time and asks
if the committee will re-sign it and have the meeting.
Mr. Bonney asks again, “Who is going to vote?”
Mr. Ronzio says, “The District Prudential Committee voted in
several meetings to send this out to everybody within the district.”
Mr. Bonney says he understands that but asks yet again who would
be voting.
Mr. Ronzio says, “They would all be voting.”
Mr. Bonney says, “I have been told . . . that if you’re not a
registered voter and you’re voting on this issue you’re going to be subject to
the voting laws and the penalty that goes with not being a registered voter and
voting in the town. . . . They told me to report it and I will. . . . You can
talk to the Town Clerk; she knows all about it. . . . I will not vote on
anything that’s against Mass. Law and this is way against Mass Law.” He
confirms that he has nothing in writing and says he is just relating what he
has been told.
Ms. Forster asks if it wouldn’t be prudent to postpone anything
until there is something definite to go by.
Mr. Bonney proposes “to put this on hold until we get an answer
from the Attorney General, in writing, if this is legal according to our
bylaws.” No second.
Mr. Ronzio asks for a motion to re-sign the warrant and to go
ahead with the meeting on the 12th May at
Mr. McEnerney moves to “proceed with scheduling this meeting and
in anticipation of the paperwork coming down this week from the Attorney
General’s office, when you get that information, if you [Mr. Bonney] could
share it with the Prudential Committee, and we’ll know at that time whether
planning this meeting was in error. But for us to all be here today to be able
to further the setting up of this meeting, I’d like to continue with that.” A
second is heard on the tape. Mr. McEnerney says he doesn’t think one thing has
to stop because there are results being awaited on something else and asks [Mr.
Bonney] please to share any information with the rest of the committee as soon
as he gets it. Mr. Ronzio calls for a vote; two “Ayes” and one “Nay” are heard
on the tape. Mr. Ronzio says, “The ‘Ayes’ have it.” Mr. McEnerney says that Mr.
Bonney must be given a chance to report why he voted “Nay”. Mr. Bonney says,
“We’re going against Mass. Law and that’s why I’m voting “No” per the advice of
the Attorney General’s office.
There being no other business to conduct, Mr. McEnerney moves
to adjourn; a second is made; unanimous approval.
Meeting adjourned
Respectfully
Submitted
Murielle Forster
Acting Clerk
__________________________________
Robert Ronzio,
Chair Date
__________________________________
Gilles Beaudoin Date
__________________________________
David Bonney Date
__________________________________
Michael McEnerney Date
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