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HomeMy WebLinkAbout2005-02-14 Board of Selectmen Minutes BOARD OF SELECTMEN MINUTES FEBRUARY 14, 2005 CALL TO ORDER: In the Chairman's absence, Clerk Wendy Wakeman called the meeting to order at 7:00 PM at Town Hall Meeting Room. ATTENDANCE: The following were present: Wendy Wakeman; James Xenakis; Donald B. Stewart; Mark J.T. Caggiano; Mark Rees, Town Manager; Ray Santilli, Assistant Town Manager. EXECUTIVE SESSION: James Xenakis made a MOTION, seconded by Mark Caggiano, to move into Executive Session to discuss. Vote approved 4-0. The Board of Selectmen was individually polled and each voted to move into Executive Session. Donald Stewart yes; James Xenakis yes; Mark Caggiano yes; Wendy Wakeman yes. Vote approved 4-0. Note: Rosemary Connelly Smedile arrived at 7:05 PM. COMMUNICATIONS,ANNOUNCEMENTS, AND PUBLIC COMMENT: Wendy Wakeman made a MOTION, seconded by James Xenakis, to appoint Pricilla Cole to the Council on Aging. Vote approved 5-0. CONSENT ITEMS: Wendy Wakeman made a MOTION, seconded by Donald Stewart, to receive funds to repair the Town Clock and to establish an account. Vote approved 5-0. Wendy Wakeman made a MOTION, seconded by Donald Stewart, to accept donations from Harold Dushame for$1,000 and from Paul and Lora Stewart for$2,000. Vote approved 5-0. Wendy Wakeman made a MOTION, seconded by Mark Caggiano, to accept donations from the Rotary Club for$250 and Wheelabrator for$250 for the Solid Waste Advisory Committee. These funds would be used to purchase prizes for a Recycling Poster Contest. Vote approved 5-0. LICENSING COMMISSIONERS: Wendy Wakeman made a MOTION, seconded by James Xenakis, to move into Licensing. Vote approved 5-0. Wendy Wakeman made a MOTION, seconded by Rosemary Smedile, to approve the following one-day licenses. Laurie Fennelly, Stevens Estate, 723 Osgood Street, requests the following one-day licenses. Comedy Theatre Event, Saturday, February 26, 2005 from 6:30 PM— 11:00 PM, full bar license. Charlie Berman 50th Birthday Party, Saturday, March 5, 2005 from 7:45 PM— 11:45 PM, full bar license. Marisa Kafantis, Andona Society Fundraiser, Sunday, March 6, 2005 from 1:00 PM —4:00 PM, beer& wine license only. Vote approved 5-0. Wendy Wakeman made a MOTION, seconded by Mark Caggiano, to move out of licensing. Vote approved 5-0. OLD BUSINESS: FY04 Audit and Management Report. The Town's outside auditors Christian Rogers from Sullivan, Rogers and Company, LLC presented an overview of the Town's financial statement and management letter for the year ending June 30, 2004. Financial highlights are as follows: Board of Selectmen Meeting February 14, 2005 2 1). The assets of the Town exceeded its liabilities at the close of the most recent fiscal year by $89,553,376(net assets). Of this amount, $24,067,892(unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. 2). The Town's total net assets increased by$3,763,789. 3). As of the close of the fiscal year, the Town's governmental funds reported combined ending fund balances totaling($24,526,267); a decrease of($11,709,976) in comparison with the prior year. Approximately$9,419,323 is available for spending at the Town's discretion (unreserved fund balance of the general fund, special revenue and permanent fund). The capital projects fund deficit totaling $34,579,055 will be funded through the issuance of long-term debt in future fiscal years. 4). At the end of the fiscal year, undesignated fund balance for the general fund totaled$2,827,527, or 4.0 percent of total general fund expenditures. 5). The Town's total bonded debt increased by$155,537 during the fiscal year;$14,658,000 of new debt was issued. As part of the audit, Mr. Rogers did an evaluation of the Town's system of internal control related to cash and accounts receivable and noted deficiencies. Their recommendations are as follows: 1). Complete the reconciliation of the conversion and implement procedures to reconcile the detailed accounts receivable activity and outstanding balances monthly. 2). Cash receipts be reported to the Accountant no later than 10 days following the end of the previous month. 3). Reconciliation of cash between the general ledger and Treasurer's cashbook be completed by the end of the following month. 4). All monthly bank reconciliation's (including the vendor and payroll account) be completed by the end of the following month. Ambulance Service Recommendations are as follows: 1). The Town should discontinue the current process of disbursing funds directly from the ambulance band account. All expenditures should be processed through the Town's general ledger via the warrant process. 2). Since the Town is still contracting with Comstar, recommendation is that an extended agreement be obtained to protect against possible misunderstanding about the terms that apply during the extended period. 3). Payment conditions related to the LGH agreement be obtained in writing and become part of the agreement. 4). Procedures be implemented to monitor and collect(or write-off where applicable) the outstanding ambulance fees receivable. Chart of Accounts and Accounting System Recommendations are as follows: 1). Accounting System should be designed in a manner that Accounts for each state and federal grant are in a separate fund. 2). Accounts for all of the grant's activity(revenues and expenditures) in the corresponding fund. 3). Management integrate the Treasurer/Collector's detailed accounts receivable module with the Town's general ledger. Lockbox 1). Recommend Management evaluates the cost/benefit of using a lockbox system for processing tax receipts. Implementation of this recommendation will increase efficiencies in the operation of the Treasuer/Collector's office. Board of Selectmen Meeting February 14, 2005 3 Chapter 90 Highway Grants 1). Recommend that the Chapter 90 deficit be permanently funded via Town Meeting vote. Performance Bonds 1). Recommend that the Town implement procedures to reconcile the outstanding balance of performance bond deposits between the Town Accountant, Treasurer/Collector and originating departments. Any discrepancies between the records of these departments should be appropriately adjusted in a timely manner. The Town Manager responded that all of these recommendations have been either implemented already or are in the process of being done. In closing, Mr. Rogers said that the Town is in good shape financially. FY05 Budget Status Report. Town Accountant Lyne Savage reviewed the second quarter budget status report for revenue and expenses ending December 31, 2004. Overall, the total revenue collection of 50% is in line with our target percentages at this point in the fiscal year. As an aggregate the expenses are in at 43.74%, which is below the target percentage of 50%. Although there are several department expenses that are running above the 50%target range, they are okay due to normal operations. Both Water and Sewer revenues are running 47.5%, which is below the target percentage for this point in the fiscal year and expenditures running at 38.8%. Revenue collections for the Stevens Estate are funning at 49.6% with expenditures at 48.1%. Because of numerous snow and ice storms this winter, the Snow and Ice Account will have a deficit. The town may be able to receive additional funds from FEMA for the January blizzard. At this time there are no problems and Ms. Savage will keep the board informed of any changes. Tax Increment Financing Agreement, 1600 Osgood Street. The Town Manager asked the Board to vote on the TIFF Agreement for 1600 Osgood Street. Before the Board voted, Selectmen Xenakis asked Orit Goldstein of Ozzy Properties several questions about what the new owners of 1600 Osgood Street would be doing with the property. Ms. Goldstein answered questions such as building 650 additional apartment buildings for a possible train depot station on the adjacent land and what improvements would be made to the original building complex. Selectman Stewart was against the deal because negotiations changed from the original town meeting vote. Stewart said because of stalled negotiations, the town was stuck paying rent for one of its departments, faces the possibility of 650 new condominiums and uncertainty about the future use of the playing fields. Ms Goldstein told the Board that if apartment buildings were considered, they would fall under the state's new 40-R program, the town would get cash payments from the state of$1,000 per unit up front and another$4,000 per unit once construction was completed. This proposal was put on the table to prove to the State's Transportation Secretary there would be a need for a train depot station at the site. The TIFF Agreement is a 20-year tax break to Ozzy Properties for the 1600 Osgood Property and to bring back business to the Town in exchange for rent-free use by the town of 5,000 square feet of furnished office space for 10 years. The Town would also get free use of the playing fields next to the plant. Mark Caggiano made a MOTION, seconded by Wendy Wakeman; to approve and sign the Tax Increment Financing Agreement (TIFF) dated February 14, 2005. Vote approved 4-1. Donald Stewart opposed. Board of Selectmen Meeting February 14, 2005 4 Town Manager's Projects. The Town Manager presented the Board with a list of ongoing projects currently being undertaken and the prioritizing of these projects. The Town Manager asked the Board to set up a special workshop to handle this item at a future time, rather than tackle it at tonight's meeting. The Board agreed to Table this item and deal with it in the future. NEW BUSINESS: FY06 2006 PILOT Resolution. S.T.A.R. is a group of communities in Massachusetts that exists in part to promote full funding of the Commonwealth's Payment in Lieu of Taxes (PILOT) Cherry Sheet item. As the FY06 state budget process begins, STAR is urging its member communities to adopt a resolution and send it to our legislators to convince the legislature to add more PILOT funding to the Governor's $15 million budget proposal. Wendy Wakeman made a MOTION, seconded by James Xenakis, to adopt a resolution as a member of S.T.A.R. in support of the state increasing PILOT funding and send it to State Representatives and Senator. Vote approved 5-0. Vote to place debt exclusion vote on March 29, 2005 Election. The Town Manager said that with the passage at the February 7, 2005, special town meeting of the article authorizing the construction of the new police station subject to Proposition 2'h debt exclusion, the next step is for the board to vote to place the debt exclusion on the ballot for the March 29, 2005 election. Wendy Wakeman made a MOTION, seconded by Mark Caggiano, to place the debt exclusion on the ballot for the March 29, 2005 town election. Vote approved 5-0. The following wording shall be used: "Shall the Town of North Andover be allowed to exempt from the provisions of Proposition two and one- half, so called, the amounts required to pay for the bond issued in order to pay costs of constructing, originally equipping and furnishing a new police station, including any necessary additional architectural services, construction management services, demolition and site improvements, and of reconstructing and relocating any school playground or other school facilities that would be affected by construction of the police station?" Wendy Wakeman asked if the Board would reschedule its meeting on March 7th to February 28th due to a conflict. TOWN MANAGER'S REPORT: The Town Manager suggested having a budget workshop session on Monday, February 28, 2005. The new CVS Pharmacy on Route 114 is close to being ready to open for business and the pharmacy plans on being open 24 hours a day. The CVS Pharmacy is not subject to a Board of Selectmen approval. ADJOURNMENT: Wendy Wakeman made a MOTION, seconded by Mark Caggiano, to adjourn the meeting at 9:OOPM. Vote approved 5-0. Adele J. Johnson Administrative Secretary Wendy D. Wakeman, Clerk of the Board