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HomeMy WebLinkAbout2010-02-22 Board of Selectmen Minutes BOARD OF SELECTMEN MINUTES FEBRUARY 22, 2010 CALL TO ORDER: Chairman Tracy M. Watson called the meeting to order at 7:00 PM at Town Hall Meeting Room. PLEDGE OF ALLEGIANCE ATTENDANCE: The following were present: Tracy M. Watson, Chairman; Daniel P. Lanen, Vice Chairman; Rosemary Connelly Smedile, Clerk; Richard A. Nardella, Licensing Chairman;William F. Gordon; Mark Rees, Town Manager; Ray Santilli, Assistant Town Manager. EXECUTIVE SESSION: William Gordon made a MOTION, seconded by Richard Nardella, to move into Executive Session to discuss Collective Bargaining and Litigation Strategy. Roll Call vote: William Gordon yes, Richard Nardella yes, Rosemary Smedile yes, Daniel Lanen, yes and Tracy Watson yes. Vote approved 5-0. COMMUNICATIONS,ANNOUNCEMENTS, AND PUBLIC COMMENT: The Town Manager added two items to the Agenda...Collective Bargaining and deleted New Business Recognition "Just Dance" APPROVAL OF MINUTES: Rosemary Smedile made a MOTION, seconded by Daniel Lanen, to approve the Open Session Minutes of February 8, 2010. Vote approved 4-0-1. Richard Nardella abstained. Rosemary Smedile made a MOTION, seconded by William Gordon, to approve the Executive Session Minutes of February 2, 2010 and February 8, 2010. Vote approved 3-0-2. Richard Nardella and Daniel Lanen abstained. FY09 Auditors Report The Town's outside auditor Richard Sullivan was present from the firm of Powers and Sullivan to give the Board an overview and analysis of the town's financial activities of FY09, the financial highlights as follows: ➢ The assets of the Town of North Andover exceeded it's liabilities at the close of the most recent fiscal year by $145.1 million (net assets). ➢ Of this amount, 4% or$5.1 million (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. ➢ At the close of the current fiscal year, the Town's general fund reported an ending fund balance of $1.6 million, a decrease of approximately $2 million in comparison with the prior year. Total fund balance represents 2% of total fund expenditures. ➢ The Town's total debt (short-term and long-term combined) decreased by $4.1 million during the current fiscal year. This was due to the net effect of$8 million from the issuance of new debt and 12.1 million in principal payments on outstanding debt. ➢ The Town implemented GASB Statement#45, which resulted in the recognition of another post employment benefit (OPEB) liability totaling $7 million. In the prior year the auditors recommended that policies and procedures be implemented to ensure opportunities for strengthening internal controls and operating efficiency. Some of these have been resolved and others have been partially resolved. Mr. Powers commented that it was a pleasure working with the Town's financial team and thanked the Town Accountant and Treasurer for their assistance. Financial Advisor Report David Eisenthal from Unibank Financial Services was present to discuss with the Board, Standard and Poor's decision to change their outlook designation to `negative' and what steps the town could take to prevent the possibility of the rating down-grade foreshadowed by this negative outlook. Board of Selectmen Minutes February 22, 2010 2 The advice was to increase conservatism in budgetary practices for revenue estimation and appropriation levels. Avoid using for ongoing expenditures and replenish when possible - $905,000 in fiscal 2010. All Boards, management and Town Meeting must support for budgetary and reserve practices and policies by moving toward reserves totaling 5 to 10 percent of expenditures. This will represent significant progress. MA Department of Revenue The Town received a letter from the DOR recommending that the Town consider a conservative approach with both revenues and expenditures for the FY11 budget process in an effort to avoid fiscal problems. The Town is required to submit a balance sheet and free cash certified prior to approving the FY11 tax rate by October 2010. Collective Bargaining —Police Unions The Town Manager announced that the Board of Selectmen has ratified two Union Contracts with the New England Police Benevolent Association, Local 2 and the International Brotherhood of Police Officers, Local 454 Police Lieutenants. Salary Schedule was 7/1/09-0%, 7/1/10-0% and 7/1/11-2.0%. Health insurance contribution rates to increase to 25% over a three-year period by June 30, 2012. All employees hired before July 1, 2009 participating in the educational incentive program shall continue to receive that payment. All employees hired after July 1, 2009 shall receive an education incentive based upon their educational attainments Associates Degree $3,000 per year and Bachelors Degree 6,000 per year. The Board thanked the Police Department for their dedication to the Town of North Andover and working with the Town through difficult financial times. Public Comment Donald Stewart 52 Prospect Street a member of the Commission on Disabilities spoke about parking problems located on Rte. 125 at the Choice Fitness Gym and the newly opened Cedar Crest Restaurant. He suggested that the Board look into opening a paper street behind the gym that would provide about 40 more parking spaces for patrons of both of these businesses. Steve Tryder 386 Chestnut Street commented that the Planning Board was not posting their meeting agendas on the Town's website. Residents are not being notified about important issues that would be discussed at their meetings. Mr. Tryder requested that all board agendas be posted at least one day prior to the meeting. The Town Manager said that beginning July 1, 2010 state law requires that all meeting agendas be posted. New Business Recognition A Certificate of Appreciation was presented to Merrimack Valley Martial Arts Academy for locating their business in North Andover. CONSENT ITEMS: Timothy Roberts "Reeling in a Dream" Foundation Rosemary Smedile made a MOTION, seconded by William Gordon, to approve the request by the Timothy Roberts Foundation to hold a fishing derby on Lake Cochichewick on Saturday, June 5, 2010 from 7:00 a.m. to 4:00 p.m. and a Wiffle Ball Tourney for Tim/Rocking for Roberts' event on Saturday, August 7, 2010 at the Middle School Field fields. Vote approved 5-0. LICENSING: Rosemary Smedile made a MOTION, seconded by William Gordon to move into Licensing. Vote approved 5-0. Violation Public Hearing —Millennium Eatery, Inc. Beijing Restaurant Chairman Nardella announced that the public hearing was opened. Board of Selectmen Minutes February 22, 2010 3 Clerk Smedile read the letter of February 9, 2010 notifying the manager on record Wen Jing Huang and manager of operations Victor Ng of the public hearing and possible violations on dates July 16, 2009, August 13, 2009 and February 6, 2010. The Town Clerk gave the oath to three police officers William Brush, Jason Wedge and Eric Sewade and testimonies were given regarding above incidents. The Commissioners had a discussion with the restaurant managers about all the incidents and what was requested by the Licensing Commission on December 21, 2009 and their last appearance on January 25, 2010, in a letter dated Feb. 1, 2010, giving the Restaurant's owner and manager time to submit information and bring the establishment up-to-date with required security plan and employee training. The restaurant managers'Wen Jing Huang and Victor Ng were asked to answer the Board's questions and to bring forth any new or added information in their defense about the incident on February 6, 2010 and their security plan and employee training TIP certifications. Mr. Ng said that he did not serve intoxicated people on February 6, 2010 and he sent a letter on February 11, 2010 with some of the requested updated information. The Board said that simple requests were ignored by restaurant management and the restaurant was not in compliance with the law. The incident that happened on February 6, 2010 might have been avoided if the management had been in compliance with the licensing laws. Tracy Watson made a MOTION, seconded by William Gordon, to close the public hearing. Vote approved 5-0. The Board had a discussion whether a violation had occurred on February 6, 2010. Tracy Watson made a MOTION, seconded by Rosemary Smedile, that the Licensing Commission found that on February 6, 2010, an individual was served alcohol on the premises while intoxicated in violation of M.G.L. Chapter 138, § 69—"No alcoholic beverages shall be sold or delivered on any premises licensed under this chapter to an intoxicated person. Vote approved 5-0. Rosemary Smedile made a MOTION, seconded by Tracy Watson, that the Licensing Commission suspend the alcohol license 10 days in total the first for five (5) days Wednesday through Sunday commencing on March 17, 18, 19, 20, 21, 2010; the second for five (5) days Wednesday through Sunday commencing on March 31, April 1, 2, 3, 4, 2010. Vote approved 5-0. Chairman Nardella requested that Lt. Paul Gallagher go out on Wednesday and insure that the restaurant management is in compliance with the security plan and that all back up tapes and videos of parking lot are in place and working. If this is not working, the police will order an immediate incident report and bring them back on another incident. Chairman Nardella said use the North Andover police as a resource they are here to help you. Town Manager was directed to send a letter noting the events of this evening and the dates stipulated for the violation and contact Lt. Gallagher to contact Mr. Ng and check on security plan and TIP certifications. Mr. Ng is to give TIP certifications to Lt. Gallagher. Chairman announced that the matter was completed and asked for a motion out of licensing. William Gordon made a MOTION, seconded by Daniel Lanen, to move out of Licensing. Vote approved 5-0. OLD BUSINESS: Town Manager's Recommended FY11 General Operating Budget The Town Manager is in the process of setting up a meeting with the Budget Communication Group that consists of two members of each of the following boards: Board of Selectmen, School Committee and Finance Committee, the Superintendent of Schools and the Town Manager to discuss the Fiscal Year 2011 Budget. Board of Selectmen Minutes February 22, 2010 4 There was a discussion about the twenty seventh payrolls due to the uneven nature of the calendar. It is recommended that salaried employees (both non-union and union employees) have their annual base salary divided by 27 pay periods rather than 26. The result would be that employees would receive less in their bi-weekly pay check, but would still be paid their annual salary. Hourly employees would continue to be paid based on the actual number of hours worked. There was a difference of opinion regarding this 27 pay period, but selectmen said they would have to take a look at the options before making a decision. Review/Vote of Articles to be placed on Warrant The Town Manager requested the board vote to place Articles A—T on the warrant except for Article Q Capital Improvement Plan Appropriation Fiscal Year 2011. Rosemary Smedile made a MOTION, seconded by Richard Nardella, to place the following Articles on the Warrant: Vote approved 5-0. Article A. Reports of Special Committees; Article B. Reports of Receipts and Expenditures; Article C. Authorization of the Town Manager of Superintendent of Schools Regarding Contracts in Excess of Three Years; Article D. Authorization to Accept Grants of Easements; Article E. Authorization to Grant Easements; Article F. Compensation of Elected Officials; Article G. Amend General Fund Appropriation for Fiscal Year 2010; Article H. Amend Water Enterprise Fund Appropriation for Fiscal Year 2010; Article I. Amend Sewer Enterprise Fund Appropriation for Fiscal Year 2010; Article J. Amend Stevens Estate at Osgood Hill Enterprise Fund Appropriation for Fiscal Year 2010; Article K. Prior Years Unpaid Bills; Article L. Amend Capital Improvement Plan Appropriation from Prior Years; Article M. General Fund Appropriation Fiscal Year 2011; Article N. Water Enterprise Fund Appropriation Fiscal Year 2011; Article O. Sewer Enterprise Fund Appropriation Fiscal Year 2011; Article P. Stevens Estate at Osgood Hill Enterprise Fund Appropriation Fiscal Year 2011; Article R. Establishment of Revolving Funds; Article S. Report of the Community Preservation Committee and Appropriation from the Community Preservation Fund; Article T. Continuation of MGL Chap. 59 Sec. 5K Senior Work Program Funding to $18,000 The Town Manager also recommended placing the following non monetary articles on the warrant: Richard Nardella made a MOTION, seconded by Rosemary Smedile, to place Articles C, D, H, I, J, K, L on the warrant. Vote approved 5-0. Article C. Update Second hand dealer's bylaw Article D. Update Fortune teller bylaw Article H. Amend Chiefs of Police and Fire Assessment Center bylaw Article I. Fire Department Contract Award Article J. Acceptance of Chapter 479 of the Acts of 2008 Article K. Amend Town bylaw chapter 28, Sec 5C to allow Housing Authority Trust Fund to see property Article L. Petition State Legislature to change the structure of the ERRB Selectmen recommended posting the specific articles that will be discussed on the March 1, 2010 meeting on the Town's website. Board of Selectmen Minutes February 22, 2010 5 Fire Chief Recruitment Update Assistant Town Manager Ray Santilli said he received seven proposals from Assessment Centers in response to the RFQ. Prices differ based on the number of candidates. It is recommended that the contract be awarded to MMA Consulting Group, Inc. in the amount of$2,750 for one candidate. Selectman Smedile said that fact there is only one candidate and he has already gone through the assessment process not too long ago and is a current employee and is the only candidate she proposed the following motion. Rosemary Smedile made a MOTION, seconded by Daniel Lanen, to setup an interview with the candidate, Town Manager and Board of Selectmen and at that time decide whether or not to offer him the position. Vote approved 4-1. William Gordon opposed Selectmen had a discussion regarding the time-line of the Assessment Process. That going through this again is just burning money when the candidate was assessed two years ago. The by-law will be amended for the upcoming Town Warrant with specific changes to a time-line. NEW BUSINESS: Essex Regional Retirement Board — Proposed Legislation The Town Manager keeping the Board appraise of the activities of the Essex Regional Retirement Board. The member communities are attempting to work with the Legislature to change the structure of the Board that the Executive Director could not serve as chairman or a voting member of the Board. The draft legislation would have a representative from a Town Manager or Chief Administrative Officer of the member communities serve on the board of directors. The Manager asked the Board of Selectmen to endorse this legislation to move forward with this. The Town Manager said that Senator Tarr is very concerned about this situation. There was a caucus of representatives that represent the North Shore and Merrimack Valley. A letter is being sent to Attorney General Martha Coakley asking for an investigation in recent actions of the board and its chairman. Richard Nardella made a MOTION, seconded by Rosemary Smedile, to endorse the proposed legislation of changes for the Essex Regional Retirement Board. Vote approved 5-.0 Richard Nardella instructed the Town Manager to ensure that North Andover's portion of legal bills forwarded by the Essex Regional Retirement Board that specifically pertain to refusing requests for public information, defending violations of the open meeting law and defending improper actions related to the election of Executive Director Timothy Bassett, be currently withheld pending detailed backup information to such bills and a subsequent affirmative vote of the North Andover BOS directing the Town Accountant to pay such previously deducted costs. TOWN MANAGER'S REPORT: Per the attached message from the state, the Town was successful in receiving a $103,846 grant for installing additional solar panels at the high school. Congratulations to Curt Bellavance, Bruce Thibodeau and members of the Sustainability Committee who submitted the grant application. The Town Manager announced that the Town will be offering group dental insurance to its employees (100% paid by the employees). Assistant Town Manager Ray Santilli coordinated a series of meetings with the town's insurance advisory committee and representatives from various dental insurance companies and selected Delta Dental as the program most advantageous to our employees. ADJOURNMENT: William Gordon made a MOTION, seconded by Richard Nardella, to adjourn the meeting at 10:20 p.m. Vote approved 5-0. Adele J. Johnson Administrative Secretary Rosemary Connelly Smedile, Clerk of the Board