20210429092410415 CITY OFBEVERLY
C!TY 0'FrE F N"I F-R L'(
PUBLIC MEETING MINUTES
Committee: Charter Review Committee
DATE: k8arch24, 2021 10ZI APR 2q A 0�- 13
LOCATION: Virtual Meeting
BOARD MEMBERS PRESENT: Hannah Bowen,Julie DeSilva Richard D|nkin,Timothy Flaherty,
Michael Pindaro �
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BOARD MEMBERS ABSENT: Stacy Ames, Paul Guanci finally joined meeting 7:05
RECORDER: 8har|ynoVVoodbun/ `
City Council Appnintee(s): Chairperson and City Cound|opat-LargeTimothy Flaherty; Ward Councilor
Stacy Ames
K4ayona|Appointee(d� Paul Gu�nci, City President-at-large
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By Ordinance: �
Ex Offido' Gerard Perry
This meeting is held in accordance tospecial meeting format as required to honor Governor Baker's
State of Emergency declared due to the national crisis ofCOV|C+1q.
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Chair Flaherty calls the meeting to order at7:OO p.m. Flaherty informs the Committee the Mayor's �
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schedule did not permit to attend tonight's meeting.The Mayor is anticipated to attend the March 31,
2021 meeting. |
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Approval of Minutes
WnWn moves to approve the March 10, 2021 minutes asp mended. DeSikm Seconds.The �
motion carries 7-O.
Dinhin moves to approve the March 17, 2021 minutes as preyented/anoendad. DeSi|va Seconds.The
motion carries 7-0.
2. Discussion with Finance Director Bryant Aylesr
Perry introduces the Finance Director BryantAy|es and begins the discussion. He asks 4vesfor his
thoughts on e city manager,the current budget process,the organizational direction of the finance
department, and the legal opinion of the City Solicitor, Stephanie Williams. Ayles briefly outlines the
best practices implemented throughout the last 8 years during his tenure. Ayles does not express any
major concerns with the Charter or any aspects therein. He does not want to limit the ability of a leader
to effectively lead; does not recommend instituting concrete changes within the Charter; and believes
the Charter should function more asaguideline.
Desi(ve asks for two opinions on the topics of city manager and the City Council having a say in the audit
process and selection of the auditor.Ayles starts by opining it is the mayor's role to hire competent
members various appointments and for them to competently and faithfully fulfill the duties of their �
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roles. It is the council's role to not approve of the recommendations by the mayor should there be any �
hesitations of an appointee competently executing their responsibilities. Ayles believes the professionals
appointed to the current roles within their staff appointments perform well. Guanci reminds the
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March 24,2021 Meeting Minutes
Page 2 of 3
Committee that novice politicians are capable of appointing competent individuals and the city can still
function with those individuals supporting the executive role. Flaherty, Guanci and Ayles discuss the
recall vote and function of the city council to dismiss an incompetent mayor.
DeSilva mentions the solicitor's opinion.Ayles will not argue with it. He supports her interpretations of
the Charter and feels it's a reasonable conclusion as to how the charter is drawn. Ayles refers to MA
council law and language within the Charter agreeing with how the budget section is structured.Ayles
admits there has been some concerns with the function of the budge and audit rotation.Ayles
addresses the independent piece of the audit and the processes contained therein.There is an
independent peer review and they are subject to the Comptroller of the United State.Therefore, it is in
their best interest to be transparent.The auditor's responsibilities are not to expose major scandals and
collusions.They're fact checking that the municipality is reporting correctly. Ayles affirms the timing is
critical when working with an auditor.The firms take at least 1-2 years to establish the relationship and
understand how the organization functions.Ayles mentions the turn over time with managing partners
and entities of the auditors. If you're focusing on relearning, reeducating and rehiring,the extra scope of
understanding and other services to fine tune the organization becomes a major burden for
management to perform the audits regularly. Currently they're able to get a good product from the city
and suggests keeping the responsibility with the executive function.Ayles assures the Committee
individuals such as Perry, are the independent function. Perry can audit any time he wants. Ayles speaks
to having the political nature exempt from the audit process. Councils can politicize the issues. If
decisions are made outside the mayor's purview, it ties the mayor's ability to effectively perform.
Dinkin plays devil's advocate demonstrating how the conflict of interest can arise. Essentially when the
executive office is in charge of the money,they also pick the firm to review them. Ayles counterpoints
that auditing standards do not allow for collusion and to look the other way.The auditors must meet
obligations promulgated to the Comptroller.There is transparency in the process and focus on integrity
of financial statements.Audits are not progress reports.Ayles reviews the Sarbanes-Oxley Act 2002
using Enron as an example. Dinkin responds, all professions have standards that still do not prevent
malpractice. Dinkin does not believe the City Council should solely have the function either. He would
like to see an independent entity audit; effectively build a wall around the law. Make it as difficult as
possible for an unscrupulous executive to be deviant.
Bowen appreciates Ayles explanations about the whole process.Seeks recommendations for what is
reasonable standard for audits.Seeks a range for what's acceptable.Ayles answers engagements
typically last three years.Ayles speaks to the 3-year time frame and suggests not more than 3
engagements of 3 years each. If the audit function is doing what it's designed to do there will be no
stagnancy in the review process,the relationship between management and the audit is good,then
keep the engagement. 6 years can be too soon. Bowen asks what other organizations have typically
done where the council and public can freely inquire about the audit and processes. Flaherty offers
thoughts about the audit being a watch dog entity on the administration.A lot was put into separating
the functions. Flaherty provides a brief history of how the functions were separated.
Ames asks what are the expectations for the recommendation of the audit. Is the audit report an
qualified or unqualified report.Ayles answers the reports should be public and transparent. Ames notes
a couple of points in the audit report that were repeated and notes the timing of the report. If the point
is to institute changes the report must be made available earlier in order to effect appropriate change.
Ayles explains the audit report and how they implement the new comments annually provided. Perry
seconds Ayles explanation and provides perspective on the management letter and the carry over of
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March 24,2021 Meeting Minutes
Page 3 of 3
reports from year to year. Perry offers additional thoughts and reviews the audit with Ayles,the audit
itself, management letter and grant report.The audit report is required under federal guideline to be
completed by March annually.
There being no further comments or discussion. No further action required at this time.
3. Review Chapter 9
a. 9.6
Pinciaro reviews the specific language to the transitional points of school committee members. Pinciaro
questions if the language is obsolete. Flaherty reviews the language of the terms further explaining the
pros and cons of the wording.
There being no further comments or discussion. No further action required at this time.
4. Next Meetings, including a Public Hearing
Flaherty goes over the Committee's role in the process for public hearings with Perry advising of the
public hearing protocols. Most important,there must be a 10-day public notification.The Committee
discusses the public hearing and Perry advises of the School Committee schedule. Perry will coordinate
with Kent on the School Committee's meeting rotation in order to avoid scheduling conflicts for the
public hearing. Guanci informs the Committee of the next City Council meeting. After some back and
forth,the Committee tentatively decides to schedule the public hearing for the week of April 12Ih
including alternative dates. Members discuss their preferences of how to effectively review the Charter
structure for the public. Guanci advises providing an outline to the City Council on topics for discussion
and a statement of intent.
There being no further comments or discussion. No further action required at this time.
5. Old Business
None at this time.
6. New Business
None at this time.
7. Adjournment
Ames moves to adjourn. DeSilva seconds.The motion carries 7-0.
Meeting adjourned at 8:22 p.m.