HomeMy WebLinkAboutFCMeetingMinutes_02.03.05 Town of North Andover
Finance Committee Minutes
r February 3,2005
ATTENDANCE:
Finance Committee: Jack Watkins, Chair; Keith Mitchell, Vice Chair; Mike Batsimm; Melinda Coppa; Steve Dawe; B
Fink;Mark Nichols;Paula Porten;and Paul Stewart.
Town Employees/
Committee Members: Harry Harutunian, School Superintendent (left at 7:20 p.m.); Mark Rees, Town Manager (arrived at
7:00 p.m.);Tom Coppa,Police Station Building Committee(arrived at 7:00 p.m., left at 8:20 p.m.)
CALL TO ORDER: Jack called the meeting to order at 6:30 p.m.
MINUTES:
After a brief discussion of the Minutes of January 27, and some suggested changes, B MOVED to accept the minutes as
amended. Melinda SECONDED the motion. The vote was unanimous(6-0-1),with Keith abstaining(note: Steve and Mark
arrived after the vote).
NEW BUSINESS:
Superintendent Q&A:
School Superintendent Harry Harutunian addressed the Committee on several school-related topics. He believes that the
previously voted-upon school enrollment "trigger" for Foster Farm will not be met anytime soon. He would like to close
Bradstreet and Kittredge Schools, and use the Foster Farm school site as a replacement, not an enrollment, school. He
reiterated that he believes that he still needs Foster Farm,but not as large a school as was originally planned—more like 550
students instead of 800. Addressing Committee questions, Harry stated that there are no plans to close either the Franklin or
Thomson schools. He also emphasized that the Town needs to develop a coherent long-term town-wide facility plan, to be
ready for all possibilities. He and Town Manager Mark Rees will be looking to hire an outside consultant to create this plan.
Regarding other school topics: he projects that next year's enrollment will show a big increase. Chuck Ormsby did a study
that projects over 5,000 students in the school system by 2010. In response to a question about CIP,Harry responded that the
numbers on the CIP for the schools are just placeholders at this point. In the future,he would like to use the CIP the way the
Town Manager does, to supplement the operating budget, as opposed to just the actual school buildings. Regarding his
budget, he will be presenting to the School Committee $4.1 million in budget cuts from his proposed budget at the Feb. 15
School Committee meeting. On SPED, they are looking at a current year deficit of$172,697 (approximately). The SPED
budget is increasing at a lower rate than in previous years(I I%for FY '06 as opposed to 17%for FY '04). He would like to
increase SPED programs, in order to a)keep more kids in district, and b)take other town's kids and make money. Harry then
left the meeting at 7:20 p.m.
Special Town Meeting/Police Station:
Town Manager Mark Rees passed out the latest language of Article 2—the police station funding article—for review and a
recommendation by the Committee. Jack noted that there had been discussion among Committee members about changing
the wording of the article to direct how the bonding should be effected. He expressed concerns from Bond Counsel that any
changes restricting bonding options could adversely affect the bond's salability. He further expressed a concern,reiterated by
Manager Rees,that any proposed changes could create a political issue with the Board of Selectmen. A discussion ensued
about bonding choices (length of bond, equal v. declining payments). Some members expressed concerns with leaving the
bonding control entirely in the hands of the Selectmen, notably in light of the recent High School bonding. Police Station
Building Committee member Tom Coppa then opined that the Committee should not tie the hands of the Town at the STM,
but rather should follow the normal course of making an official Finance Committee recommendation to the Selectmen, and
allow them to make the choice. Some members noted that the Selectmen's choice of declining payments for the High School
bonding freed the town up to make decisions such as funding the Police Station and have more financial flexibility this year.
Paul then distributed a handout summarizing his position on the articles, and noted that some of his concerns, delineated in
this handout, have been alleviated by the preceding discussion. Paul then MOVED, "That the Finance Committee 1) finds
that the Town's only Police Station is grossly inadequate to its task and should be replaced as soon as possible; and 2)finds
that a Capital project of this magnitude cannot be accommodated wholly within the Town's annual operating budget under
Proposition 2 '/Z without unacceptable reductions in other vital Town services; and 3) recommends that the Special Town
Meeting and the voters of North Andover approve the Police Station project and the Proposition 2 '/2 Debt Exclusion
February 7, 2005
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necessary to move this project to completion, and, further, that the Finance Committee charges its Chairman to finalize a
presentation and other materials, including a handout similar to that we are considering tonight, and negotiate with other
officials over any details of this issue, all for final approval by the Finance Committee at its meeting scheduled for February 7
�. before the Special Town Meeting." Keith SECONDED the motion. In discussion, B outlined her opposition to the motion
and the whole project: 1) giving up four acres of Atkinson to the new station limits the School Department's future options;
2) it limits the Town's ability to focus on other priorities, such as the Community Development department; 3) the cost is
excessive per square foot, especially in light of new State construction regulations that Delp cut costs; and 4) the Town is
being rushed into the project. Paula then asked if the amount of the project could go down. Manager Rees responded that
once authorized, the $7.3 borrowing would be set—to change that would require a new Town meeting—but the cost of the
project could change. 'T'here will be a future meeting needed to sell the land, with a separate article needed to apply the sale
proceeds against the principal. Melinda responded to B's objection about Atkinson's land, saying that nothing is final within
the school budget. Jack also noted that even without donating four acres, Atkinson's current campus of nine acres is too
small for a new construction. Keith voiced his support for the project, noting that in fact this project has been around for a
long time. The motion passed 8-1,with B opposed.
Melinda MOVED that the Finance Committee recommend favorable action on Article 2 of the STM warrant. Mike
SECONDED the motion. Manager Rees stated that he will move to consider Article 2 first at the STM. If Article 2 fails,
then the meeting is basically over. Steve asked the Manager what the argument would be if a member of the STM proposed
an amendment to attach the money coming back to us from NESWC to the Police Station project. Mark Rees responded that
it would require$900,000 in operating budget cuts elsewhere. The motion passed 8-1,with B opposed.
The Committee then considered Article 3, to transfer money appropriated at the 2001 ATM to the Police Station project.
Keith MOVED that the Finance Committee recommend favorable action. Mark Nichols SECONDED the motion. The
motion passed unanimously. Paul then MOVED favorable action on Article 1, to transfer the land from Atkinson. Paula
SECONDED the motion. The motion passed 8-0-1,with B abstaining.
FinCom Presentation to STM:
Jack passed out his latest version of the Finance Committee's presentation to the STM, incorporating many of the changes
suggested by members. A discussion ensued regarding the layout of the materials,and specifically the Debt-Exclusion graph.
It was agreed that the goal of the presentation is to make it complete but concise and clear to the STM attendees. Jack agreed
to make a few more changes and distribute them for a final review.
NEXT MEETINGS: The next meeting is scheduled for Monday, February 7'h at 6:00 p.m. in the Main Office
Conference Room(Room 1121) of the High School, immediately before the STM. The following
meeting is scheduled for Thursday,February 17th at 6:30 p.m. in the first floor conference room of
Town Hall,
ADJOURNMENT: There being no further business, Keith MOVED to adjourn the meeting. Melinda SECONDED
the motion. The vote was unanimous. Time of adjournment: 8:30 p.m. on the button (thank you,
8:30 Jack!)
Michael Batsimm, Secretary
February 7, 2005
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