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HomeMy WebLinkAbout1999-03-08 Board of Selectmen Minutes BOARD OF SELECTMEN MINUTES MARCH 8, 1999 CALL TO ORDER: Keith Mitchell called the meeting to order at 7:30 p.m. Keith Mitchell congratulated William Duffy on his reelection and James Xenakis on his election to the Board of Selectmen. ATTENDANCE: The following were present: Keith A. Mitchell, Chairman; William Duffy; John R. Leeman, Jr.; Donald B. Stewart; James M. Xenakis; Robert J. Halpin, Town Manager. APPROVAL OF MINUTES: John Leeman made a MOTION, seconded by Donald Stewart,to approve the Minutes of February 8, 1999, February 22, 1999 and February 27, 1999;vote approved 5 — 0. COMMUNICATIONS,ANNOUNCEMENTS,AND PUBLIC COMMENT: Keith Mitchell presented Jack L. Risacher, Jr. with a certificate of achievement on being certified as a Firefighter I/II in the Commonwealth of Massachusetts. Johathan W. Pramas, who was unable to be present, was also congratulated and sent a similar certificate. Keith Mitchell presented Officer Michael Gilligan with a certificate of appreciation on being voted Exchange Club Police Officer of the Year. Keith Mitchell announced that there will be another Noise Abatement Meeting at the Lawrence Municipal Airport Terminal building on March 24, 1999 at 7:00 p.m. Keith Mitchell stated that the next Board of Selectmen Meetings will be held on March 15, March 22 and March 29, 1999. (The March 15, 1999 was cancelled later in the meeting because of a scheduling conflict). NEW BUSINESS: Variance— 105 Middlesex Street. Mr. Michael O'Connor of 29 Milton Street, Linda Montmimy, 36 Milton Street, Dorothy Currier, 19 Milton Street and another resident voiced their disapproval of the granting of a variance to build a two story garage at 105 Middlesex Street. They stated that they were not aware that this building would be as large as it is. Tom Licciardllo, 99 Middlesex Street and Karen Young of 113 Middlesex Street voiced their support of this variance. Keith Mitchell told the protesters that the Board of Selectmen did not have the authority to overrule the ZBA and recommended that if they continue to have a problem,to hire an attorney. OLD BUSINESS: Senior Citizens' Tax Deferral Pro _gram. The Town Manager introduced Mr. Sam Ameen who generated discussion regarding assisting senior citizens who are eligible with their property taxes. Mr. Ameen stated that there is a State program in place to assist seniors with their property taxes. The State program mandates that the home-owner be 65 years of age or older and limits income to $20,000 to $40,000 annually. Under this plan the home owner can defer the entire tax amount until the amount Board of Selectmen Minutes March 8, 1999 Page 2 owed is equal to 50%of the equity value. It also stipulates an interest rate of 8%and if when the home is sold the taxes aren't paid immediately,the interest rates escalates to 16%. Mr. Ameen said the plan he has suggested is more flexible. Instead of deferring the entire tax bill he said his plan would defer a percentage of the tax bill based on income. He also said the Town could borrow funds to maintain cash flow at a lower rate than the interest charged. He believes this is a win/win situation. He based this on the fact that the home increases in value at a higher rate than the taxes. It also allows seniors to stay in their homes. It was suggested that an outreach program be done through the Senior Center to notify seniors of the State program. John Leeman also suggested that a notice be sent with the tax bills. Enterprise Funds. Management Report—Water/Sewer Billing Systems. The Town Manager reviewed the Management Report and his own observations. He stated that business improvement requires honest assessments of problems that must be complete and comprehensive. He also said that public disclosure is part of the process not the end of the process. He then presented a history of the water/sewer billing system problem. The Town Manager said there was an unexplained decrease in revenues and there was a lack of information on the causes. There was pressure to raise water rates without understanding the causes. At that point the Town auditor conducted a preliminary inquiry. Working with the cooperation of the DPW,the auditor found a defective meter at Lucent Technologies which was fixed with the cooperation of Lucent. Repaired meter readings and past trends let to a retroactive bill of$434,000. He stated the remaining question is why it wasn't detected. The Town Manager retained Wesley Gardner of Consultants to Management who is a C.P.A. specializing in water/sewer/utility billing. He reviewed the entire meter reading, billing and collection system. Working with the DPW, it was revealed that Sutton Pond Condominiums had not received a bill amounting to $83,179. Mr. Gardner found there was inadequate supervision of meter reading, billing and collection systems; inefficient meter reading routes; inadequate cross training of key employees; inadequate safe guards against errors; lack of coordination of meter reading and billing systems; pressure to get bills out led to estimates and undermined routine reviews for accuracy. He also found that the billing software is deficient in review/report capabilities or was not being used and out of date meter reading technology compounded the problem. He further stated that 3,000 meters are in excess of 40 years old. He recommended that the meters be replaced not repaired; establish new, more productive routes for readers; turn reading over daily to billing personnel; use new billing software to run reports to check for errors; inspect new homes for proper meters at time of Occupancy Permit inspection. The Town Manager said the next steps are to assign action items and completion dates for improvements; issue a monthly report to the Board of Selectmen; appropriate meter replacement program at the Annual Town Meeting and retain Mr. Gardner in FY 2000 to review changes and advise Board as needed. Donald Stewart said this situation is very disturbing and also there are areas that have not had meters read since 1993. He believes replacing the meters will help to resolve the problem. Board of Selectmen Minutes March 8, 1999 Page 3 John Leeman questioned who is responsible for billing and was told ultimately the Director of Public Works. James Xenakis asked if the Lucent payment would be in increments or full. The Town Manager said very probably full payment. Several residents asked questions and voiced their opinion. Meter Replacement Program. J.William Hmurciak, Director of Public Works, introduced Jim Finnegan of Weston& Sampson Engineers, Inc. who presented various meter replacement plans. He stated that North Andover has a total of 7,200 meters with 4,200 of these meters having remote readouts. The remaining 3,000 have to be read manually. He also said that new water meters improve registration by 15%. He stated that the options include remote touchpad, radio (pedestrian, vehicle or central), telephone or retrofit/upgrade of existing remote read meters. Mr. Finnegan estimated the cost of a touch pad meter reading system to be approximately$736,000. He said the payback period would be approximately 2.7 years. The cost of a pedestrian radio system is $1,680,000 with a payback of 6.1 years. Donald Stewart asked if the meters were tamper proof and was told they are tamper resistant. There was discussion about who would pay for the meter;the homeowner or the Town. That decision still has not yet been made. FY 2000 Budget. Historical Trends—Revenues and Expenditures. The Town Manager briefly reviewed some revenue and expenditure history, focusing on the revenue side. He reviewed the years between 1989 and 1998 noting the fact that in FY 1989 the Town received approximately 17%of its revenue in State aid and now receives only 11%. This percentage has increased from a low point of 8%in 1992. William Duffy noted that fixed expenses have risen dramatically. The Town Manager remarked that health insurance, retirement and benefits are better funded than previously done. The Town Manager briefly reviewed the school versus non-school expenditures. He noted that the total expenditures rose from approximately$18.5 million in 1987 to just over$40 million in 1997. The school spending tracked almost identically the total expenditures during this time period. Non-school spending continued to increase because of total debt service and fixed expenditures. Board Discussion— School Department. Dr. William Allen, Superintendent of Schools, gave a brief presentation on the school department's budget request. He said the factors driving the budget include the Town's philosophy and mission, district goals, and master plan. He discussed the student/teacher ratios and the fact that North Andover is in some instances above the recommended ratios. He stated that the per pupil expenditures continue to lose ground in comparison to other school systems. Dr. Allen believes that if the school department's requested budget is approved MCAS testing will improve greatly. He discussed the School Committee's priorities based on six different levels. William Duffy discussed the fact that the former superintendent stated that when the Thomson School was completed, it could be staffed without increasing the operating budget. Board of Selectmen Minutes March 8, 1999 Page 4 Mr. Yong Nam, a resident, discussed the League of Women Voters lobbying of the Legislature to increase State aid to North Andover schools. At a later date he will present this to the Selectmen in detail. Board Discussion—Fire Department/EMS. Chief William Dolan discussed the Fire Department's requests for a Deputy Fire Chief, a second ambulance and a third fire station. Board Discussion— Open Space. William Scott, Director of Community Development and Services, discussed the Town's priority to have open space. He said that protected open space is only 8%of the watershed. He stated that if purchasing open space is deferred, purchasing power is diminished. Board Discussion—Facilities. The Town Manager discussed the necessity to hire a manager to oversee all facilities. This position would be under Public Works. Annual Town Meeting. Open Town Meeting Warrant. John Leeman made a MOTION, seconded by James Xenakis,to open the Town Meeting Warrant and close it at 4:30 p.m. on March 19, 1999; vote approved 5 - 0. ADJOURNMENT: John Leeman made a MOTION, seconded by William Duffy,to adjourn the meeting at 10:45 p.m.; vote approved 5 — 0. Ann M. Keating Administrative Secretary John R. Leeman, Jr., Clerk of the Board