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Home My WebLink About2019-06-11 Finance Committee Minutes 1 ue i ni I V TOWN OF NORTH ANDOVER FINANCE COMMITTEE Meeting Minutes Meeting Date June 11, 2019 Meeting Location: School Administration Building Timothy Tschirhart, TT, Chairman X Ed MacMillian EM X Sasha Weinreich, SW, Vice Chair X Divya Bhatnagar, DB Christine Allen CA X Charles Trafton CT X Thomas Ringler, TR X Angela Ciofolo, AC X Liz Gerron, LG X Note: All FINCOM votes are subject to a re-vote upon receipt of new information. Note: Documents used in this meeting are listed in Document Table, herein. Non Finance Committee Members in attendance Lyne Savage (LS), Acting Town Manager, Finance Director/Town Accountant Ellen osier(EM), e er of the Stevens Estate Board of Trustees David Brown (DB), er of the Stevens Estate Board of Trustees Pledte of Allegiance Discussion starts on or about 7:00 pm TT: I want to take a few things out of order from the agenda, so let's review the Minutes for May 14th at this time. Approval of minutes for May 14, 2018 Discussion starts on or about 7:01 pm/01:00 on video time CA: Made a motion to approve the minutes as written for May 14, 2019 LG: Second the motion All were in favor to approve the minutes. Call to order and opening comments—Tim Discussion starts on or about 7:02 pm/02:00 on video time TT: The purpose of this meeting is to discuss the warrants associated with the Osgood Property and the Stevens Estate Property. Both are opportunities, both are changes, both represent some financial considerations. TT: For the Zoning changes we will not vote, but will offer an opinion/comment. June 11, 2019 Page 1 TT: Voting for Articles will take place at our next scheduled meeting on June 18th prior to the Special Town Meeting(on same day). TT: Went on to say that anyone could attend the Finance Committee Meeting(June 18th) at 6:15pm Special Town Meeting Warrants Discussions and Vote Recommendation -Article's 1, 2, and 3 Amend Zoning Bylaws—Finance Committee recommendation requested -Article 4 Approve borrowing to extend sewer line on Osgood Street—Finance Committee recommendation needed Discussion starts on or about 7: 04 pm/04:00 on video time TT: Invited LS to discuss Articles 1, 21 3, and 4, relative to Zoning byLaws and approval to borrow debt. LS: Articles 1, 2, and 3 are regarding changes to the Zoning Bylaws to allow for such things as height of the building(proposal 105'), floor(size of building), and also referenced the renewable energy and solar panels. The Solar Panels need setbacks, since they need to be relocated from the roof to the ground(near the ball field). LG: Who pays to move the Solar Panels? LS: Responded that the contractors will do that and there will also be some type of landscaping to hide the Solar Panels. TT: Stated that Hillwood developers will own the property and build the facility, and Amazon will lease from Hillwood (for 20 years). TT: Stated that they anticipate at least 200 trucks a day. Also stating that it is required that the trucks will only be able to take left turns only. They will make them go through Ward Hill to 495 TT: Spoke of the two work shifts proposed, the hiring of 1,500 employees, and that the top 2 floors will be robotics. LS: Commented that this facility has been underutilized for too many years. This will bring in new business and new jobs and tax revenue etc. EM: Asked if the airport has any concerns with the building height. LS: Responded no LS: Went on to Article 4, borrowing for the sewer lines. Proposal is for the Town to borrow seven million dollars. Because it is a Town Project we have to get approval for the entire amount (7 million). Hillwood has committed to pay for 1/3 the cost(stated in a letter to the BOS dated May 31 st), the town will also pay for 1/3. The Town will apply for a Mass work Grant to pay for the remaining 1/3 (or less). Questions and concerns for Article 4 were discussed regarding, building permit fees, paying capital from retained earnings, debt services and payments, enterprise funds, location and length of sewer lines, borrowing money, etc. June 11, 2019 Page 2 LS: Commented that they(Hillwood)want to be up and running by 2021. They want to move fast as soon as everything is approved. -Article 5 Transfer a portion of the 153 acres comprising the Stevens Estate—No recommendation needed Article 6 Sale or Lease of a Portion of the Stevens Estate—Finance Committee recommendation needed Discussion starts on or about 7:36 pm/36:00 on video time TT: Welcomed DB and EM. TT: Read out loud Warrant Article 6, as it currently stands (Page 19 of the special Town Meeting Warrant Book for June 18th, 2019) TT: Stated that this article will be amended since they plan on leasing the Stevens Estate property. They want to preserve the property and amend Article 6 to just lease this property and not to sell to Elegant Banquet. DB: Commented that at the last BOS Meeting it was discussed that if Elegant Banquet fails we get the property back(since it will just be leased). EM: Felt at the last BOS meeting with Elegant Banquet there seemed to be more questions than answers. EM Expressed her feelings that there is some value to keeping the Stevens Estate just the way it is today, and not the way Eloquent Banquet proposes. EM: Believes that the Stevens Estate has been profitable. EM: Spoke of the moratorium placed by the BOS not to book any future events (that was placed in April)until further notice. EM: Also spoke of having to return deposits (as she understands)to those that booked after December 31 St 2019. SW: Asked LS if she could speak on this as a procedural perspective regarding exactly what the BOS can do, and also asked LS to also speak of the moratorium. LS: Commented on the recommendation that was made by the BOS Because of the Financial Situation of the Estate as well as the projection (for FY20)based on booking reports. LS: Spoke of the sizable deficits the estate had for FYI and FY20. LS: Stated that the moratorium was lifted and they could book events up until September 2020. Also, I am not aware of any deposits being returned, that was not the instructions of the BOS. EM: Was very passionate in her discussion relating to the Stevens Estate and the connection that she felt North Andover had with the Estate. June 11, 2019 Page 3 DB: Presented and explained the slides titled, "Stevens Estate Board of Trustees Summary on the Business and Financial Position of the Estate" DB: Also, went over the Business Overview slides and the Historical and Current Financial Overview slides. DB: Stated that the estate has been profitable over the last 6-7 years. TT: Spoke of reimbursement of Shared Costs (expenses needed to run) to run the estate. And handed out a chart entitled"Stevens Estate Enterprise Fund Budget" DB: Commented as a Committee we disagree with the numbers of projected losses. LS: Spoke of add ons items that the client would pay extra for(outside of the rental agreement for the Estate). Example if a client wants to use different tables, chairs, linens etc., then what is supplied to them, the Estate was taking this extra money and putting it into the Revenue Source for Stevens Estate and should have put it in the General Fund. Many opinions, polite disagreements and questions regarding the Estate continued. Topics such as staffing issues, the liquor license, sources of revenue received, sales, budget, and bookings. Also questioned what the role that the trustees have at the Estate. They also discussed having a marketing team or strategy to boost sales (if the proposal with Elegant Banquet does not come to fruition), and then asked if the Trustees had a mission statement. Also, revenue, costs and expenses of the Estates were also questioned and discussed. DB: I believe that our function is to be advisees to the Estate. Also spoke of the tremendous proposal that Elegant Banquet submitted. EM: Spoke with much passion and concern to the Committee about the Estate regarding the fate of Stevens Estate to Eloquent Banquet. LS: Stated if this passes at Special Town Meeting, this only gives the BOS the ability to negotiate with Elegant Banquet. Eloquent Banquet still has a long way to go and spoke of Historical restrictions too, and meeting all of the requirements from various boards. LG: Commented to EB and DB that the key take away is that if Eloquent Banquet walks away from this deal you(trustees) need a plan. LS: The financials that are provided by the Town are audited financial statements. TT: Stated that both EM and DB gave myself and the Committee something to think about and some second thoughts before we vote on Warrant Article#6 on June 18tn June 11, 2019 Page 4 TT and the Finance Committee Thanked EM and DB for coming tonight. New Business; Next Meeting— Special Town Meeting June 18, 2019 Discussion starts on or about 9:12pm/02:12 on video Spoke of the upcoming meeting on June 18th at 6:15pm and that we (Finance Committee members)will need to vote before the Special Town Meeting Adi ournment 9:15 CA: Made a motion to adjourn the meeting LG: Second the motion All were in favor to adjourn Document Table -Agenda Finance Committee Meeting for June 11,2019 -Minutes from May 14,2019 - Special Town Meeting Warrant Articles June 18,2019 -Stevens Estate Board of Trustee Summary Business&Financial Position -Development&Management of the Stevens Estate -Revenues,Analysis,CIP Funding&Projections of Stevens Estate - Stevens Estate Enterprise Fund Budget Chart June 11, 2019 Page 5