HomeMy WebLinkAbout2003-02-10 Board of Selectmen Minutes BOARD OF SELECTMEN MINUTES February 10, 2003
CALL TO ORDER: Rosemary Smedile called the meeting to order at 7:00 PM at the Steven's Memorial Library.
ATTENDANCE: The following were present: Rosemary Smedile, Chairman; James Xenakis; Donald B. Stewart;
Susan Haltmaier;Wendy Wakeman; Mark Rees, Town Manager; Ray Santilli, Assistant Town Manager.
APPROVAL OF MINUTES:
James Xenakis made a MOTION, seconded by Wendy Wakeman, to approve the minutes of January 13, 2003,
Open Session and Executive Session as written; January 27, 2003 Open Session and Executive Session as
written. Vote approved 5-0.
COMMUNICATIONS,ANNOUNCEMENTS, AND PUBLIC COMMENT:
Heart Safe Community Program.
Chief Dolan and Firefighter Barry Sullivan accepted an award for the Town from Jonathan Epstein, Executive
Director of NEEMS. Mr. Epstein, representing the Massachusetts Board of Health, the American Heart
Association and North East Emergency Medical Services, Inc., presented an award certificate and recognized
North Andover as a Heart Safe Community. This award is in recognition of North Andover's efforts to improve
survival from sudden cardiac arrest and for meeting the criteria to be designated a Heart Safe Community.
The Town Manager introduced and welcomed Justin Woods as the newly appointed Town Planner.
Selectman Smedile acknowledged the superintendent search committee's new choice for North Andover's school
system, Dr. Harry Harutunian.
Dave Rand, 280 Dale Street, asked the Board of Selectmen and the Town of North Andover about supporting
Aaron Feuerstein of Malden Mills. Mr. Feuerstein is asking the city of Lawrence to ensure his loans to help him
keep his company from bankruptcy. The Town Manager will meet with Mr. Rand before the next Board of
Selectmen's meeting and bring back any suggestions.
Maura Wittstein, 280 Webster Woods Lane, asked why 60 businesses in the downtown area received free trash
pickup. She suggested that during this difficult financial time, the Town should look at every available way to
collect revenue. Tina Klein from the Solid Waste Advisory Committee said that she is aware of this service and
has a list of these particular businesses that are grandfathered in a contract. This issue would be looked into and
reported back to the Board of Selectmen.
Alfred Perry, a member of the School Committee, wanted to encourage everyone on all the different boards and
citizens in Town to change the dialogue of the past and work together.
Selectman Smedile agreed and asked that the Town concentrate on the upcoming budget and work together to
have fundraisers to help raise money for the loss of services that the Town will have in community services, youth
services and senior center.
James Connolly, 210 Bear Hill Road, asked the Board if there was any progress with discussions with the
Thomson family regarding their land on Holt Road. The Town Manager answered that Town Counsel has
advised the Board of Selectmen not to comment at this time regarding this matter because of personal liability.
He said the Town continues to be in communication with the Thomson family along with Attorney's Urbelis and
Kimmell.
Selectman Xenakis wanted to make it clear to the public that the Board of Selectmen are very concerned with the
present issues and the use of land on Holt Road. Therefore, he stated the following MOTION:
That the Board of Selectmen send a letter to the Thomson family indicating that the Town of North Andover
welcomes an application for a trash transfer facility providing that the new application is significantly different than
Board of Selectmen Minutes February 10, 2003 2
the previously denied proposal. We further would like to indicate that it is our goal to ensure that any application
presented to any Town Board is treated fairly and judiciously by the presiding Board (regardless of the nature of
the business). We feel that it is most beneficial to everyone involved if the process is followed and as such
neither special consideration nor prejudice will impact Mr. Thomson's application.
Susan Haltmaier seconded the MOTION. Vote approved 5-0.
PUBLIC HEARING:
Pole Petitions by Massachusetts Electric Company.
Kevin Kelly and Joe Plentzas representatives from Massachusetts Electric petitioned for 4 plans to be approved.
This is necessary to build a new sub-station being built on Foster Street and Boxford Street. It is necessary to
install these poles along these streets to accommodate additional wiring.
Massachusetts Electric Co. — Plan #F53/460—Foster Street,
Place 5 poles 18/3394, 3394-S, 5008, 3395, 3396. Remove 3 poles.
Massachusetts Electric Co. — Plan #F53/462—Foster Street,
Place 4 poles 18/3397, 3398, 3399, 3400. Remove 3 poles.
Massachusetts Electric Co. — Plan #F53/461 —Foster Street,
Place 1 pole 18/3402. Remove 1 pole.
Massachusetts Electric Co. — Plan #S53/464—Salem Street,
Place 3 poles 3/2436'/2, 2439-84, 2440'/2.
Mr. Robert Halloran, 1049 Salem Street, and Mr. Al Manzi III, 1028 Salem Street, Mr. John Machons, 1020 Salem
Street, abutters objected to the placement of poles abutting their property included in the fourth petition.
The Town Manager suggested sponsoring a meeting with the abutters and representatives from Massachusetts
Electric. The Assistant Town Manager will coordinate this meeting. This matter was tabled until further notice.
LICENSING COMMISSIONERS:
Wendy Wakeman made a MOTION, seconded by Susan Haltmaier, to move into Licensing. Vote approved 5-0.
Stevens Estate, 723 Osgood Street—One-Day Liquor License.
Wendy Wakeman made a MOTION, seconded by Susan Haltmaier, to approve the following one-day liquor
license. Vote 5-0.
1. Lisa Cavallano Birthday Party—February 22, 2003—7:00 PM to 12:00 AM —Beer and Wine Only.
Wendy Wakeman made a MOTION, seconded by Susan Haltmaier, to move out of licensing. Vote approved 5-0.
There was a five-minute recess.
NEW BUSINESS:
NESWC Contract.
Assistant Town Manager Ray Santilli informed the Board of the Town's service agreement, through participation
in the North East Solid Waste Committee (NESWC) consortium, with Wheelabrator North Andover(WNA)that will
expire on September 27, 2005. Two crucial provisions of the current service agreement have a direct impact on
on-going negotiations. The first is that NESWC, and all of its 23 member communities, must first negotiate "in
good faith"with WNA for a new service agreement. The second provision allows WNA the "first right of refusal" if
NESWC or any of its member communities goes out to bid and is prepared to enter into a new service agreement
with a third party.
Board of Selectmen Minutes February 10, 2003 3
There are three basic options post--2005 being offered:
A. A nine month agreement (through June, 2006),
B. A two year and nine month agreement (through June, 2008),
C. A four year and nine month agreement (through June, 2010).
In each of the proposals, there no longer would be a "guaranteed annual tonnage"that the Town would be liable
for providing and the service fees per ton (tipping fee)will be a defined dollar per ton number for each year of the
contract.
The proposals also include what amounts to a "refinancing" of the remaining debt principal by NESWC (which
would save member communities approximately $5/ton in tipping fees for the balance of the current service
agreement) and the securing of long-term tax-exempt debt by WNA through the efforts of NESWC.
The North Andover Solid Waste Advisory Committee recommends to the Board of Selectmen to accept Option C
(the four year and nine month term) with a declared amount of 10,800 tons. The tipping fees are as follows:
A. $64/ton (9/28/05 through 6/30/06
B. $68/ton (7/01/2006 through 6/30/2007
C. $69.50/ton (7/01/2007 through 6/30/2008
D. $71.50/ton (7/01/2008 through 6/30/2009
E. $73/ton (7/01/2009 through 6/30/2010.
This is contingent on a due diligence review, by environmental legal counsel, of the proposed standard terms and
conditions of the service agreement (not yet provided to member communities) including written confirmation that
there will be no GAT requirement, the financial implications of the "flip-up" and procurement of tax exempt debt,
and the possibility of extending or renegotiating a host community agreement.
Wendy Wakeman made a MOTION, seconded by Susan Haltmaier, to adopt Option C (the four year and nine
month term) recommended by the Solid Waste Advisory Committee. Vote approved 4-1. Donald Stewart
opposed.
FY02 Audit.
Frank Byron president of Melanson Heath & Co., the Town's audit firm, presented the Town's financial statement
and management letter for the year ending June 30, 2002. Frank Byron went over the Balance Sheet and
stated Undesignated or Surplus was $4,036,839 and Bond Rating agencies focus on and likes to see 5% and
10% of your budget in this number. This number is about 7.3% that is very strong. This number is used to
calculate your free cash. This is a major accomplishment for the Town compared to previous years. Surplus of
Enterprise Fund (Water, Sewer and Osgood Estate) is $3,106,514. This number is also up $1.4 million from
the previous year. Reserves have been built up for future capital additions and stability of enterprise funds. The
Fiduciary Trust Fund the number of$1,198,955. The important thing in that is the balance of the stabilization
fund in June 30, 02, the balance was $756,000 is up significantly from the year before from $131,000. The
combined Statement of Revenues, Expenditures the excess of revenues over expenditures number is $1,405,156
that represents the Town's net income that is also a positive indication. The Town has been very conservative in
estimating its revenue and has built up this figure. Looking at this financial picture says that the Town has done a
great job in building up reserves for the difficult times ahead.
As part of the audit, Mr. Byron did an evaluation of the Town's system of internal accounting systems in The
Management Report. Recommendations are as follows: Maintain complete log of check numbers; Integrate Tax
Collector with General Ledger; Reconcile Performance Bond Balances; Reconcile Outstanding Check List;
Monitor Activity in Other Funds;Formalize Controls Over Departmental Receipts. All of these recommendations
have been either implemented already or are in the process of being done. In closing, Mr. Byron said that the
condition of the Town's accounts is in better shape than previous years.
Selectmen Smedile said that this is a credit to the Director of Finance Chuck Benevento, Town Accountant Lyne
Savage, and Town Manager Mark Rees.
Board of Selectmen Minutes February 10, 2003 4
FY03 Budget Revisions: State Aid Reductions
The Town Manager said that the Governor announced his plan to deal with the projected State deficit of 650
million dollars. This plan called for a reduction for North Andover of Lottery: $179,948, and Additional Assistance
$13,260 for a total of$193,208. This plan revolves around the use of funds previously "frozen"from departmental
budgets. The Town proposes not to release the "frozen"fund, with the following exceptions: Fire salaries and
Health expenses. This would give us $100,018 in previously marked budget reductions and the attritional funds
of$93,190 by "freezing"funds from the departments. These additional funds have become available due to
position vacancies and resulting time lag to recruit and replace positions. The recommendation is that for the
remainder of the fiscal year no vacancies be filled without prior approval from the Town Manager. This should
insure the availability of funds as described above. Just an update note: At this time the Snow and Ice Removal
deficit is at$279,000. This figure will increase if there are more storms this winter.
FY03 Second Quarter Financial Report
Town Accountant Lyne Savage reviewed the budget status reports for revenue and expenses for the second
quarter ending December 31, 2003. Over all, the total revenue collection of 50% is in line with our target
percentages at this point in the fiscal year. There are a few departments that are over expenditures that are a
concern. Memos have been sent to these departments to request explanation of expenses and the Board will be
updated as needed on their responses.
FY04 Recommended General Fund Budget
The Town Manager, Mark Rees presented his recommended FY04 General Fund Operating Budget. After
summarizing the Town's revenues and expenses, the Town Manager said that only a portion of the fiscal crisis is
due to the reduction on state aid to the Town. The main problem is that the Town's operating expenses will
continue to rise at a pace higher than revenues. Until a viable political and fiscal solution is found to address this
basic problem, North Andover will continue to stagger from one fiscal crises to another; each year getting worse
as more and more of the Town's reserves are depleted.
The Town Manager suggested making the following personnel cuts to balance the budget with addition to
significant reduction with operating expenses:
1. Eliminate three positions in general government;
2. Eliminate four positions in the police department and only fund one vehicle;
3. Eliminate one position in the fire department and reduction in EMT ambulance services;
4. Eliminate two positions in the public works department;
5. Eliminate two-three positions and reduce funding for books at the library;
6. Eliminate half-time outreach worker in elder services;
7. Eliminate one program coordinator position for youth services;
8. Reduced hours of work for the public health nurse;
9. The elimination of funding for the festival committee for the July 4th fireworks and summer events on the
common for the recreation department.
10. Reduce the Finance Committee Reserve Fund to $200,000.
The Town Manager stated that during times of fiscal distress, difficult decisions have to be made regarding the
application of financial policies and allocation of very limited resources. However, it is important to remember that
the municipal budget process is not static but evolutionary. As recent history has shown, budget assumptions
and hence projections and estimates changes, often times radically, as additional information becomes available.
Even after a budget is approved at town meeting, modifications to the budget after adoption are becoming the
norm and not the exception. With that in mind, this budget should be viewed by policy makers and the public as
the starting point, not the conclusion, of an in-depth, open discussion on what values and priorities the town
deems important as evidenced by its preeminent policy document, the general fund operating budget.
Mark Rees thanked the Department Directors, staffs, Director of Finance Charles Benevento, Assistant Town
Manager Ray Santilli, and Town Accountant Lyne Savage for their invaluable assistance in developing the
recommended budget. The Town Manager suggested holding a series of joint workshops with the Finance
Committee and the Board of Selectmen to openly discuss the issues of the budget. Selectman Wakeman
encouraged the Board members to move expediently to vote on the FY04 budget at their next meeting so the
Finance Committee would have ample time to work out the details.
Board of Selectmen Minutes February 10, 2003 5
TOWN MANAGER'S REPORT:
The Town of Norton has requested that the Governor implement an "immediate suspension of MGL Chapter 40B
as a means of easing the financial difficulties now being faced by municipalities across the Commonwealth" They
are requesting other communities to lend support to this initiative.
Wendy Wakeman made a MOTION, seconded by Donald Stewart, to authorize the Town Manager to write a letter
to Governor Romney requesting that the Governor implement an "immediate suspension of MGL Chapter 4013".
Vote approved 5-0.
The Town has been invited by the City of Lawrence to march in the St. Patrick Day Parade to be held on Sunday,
March 16, 2003, starting at 1:00 p.m.
On Friday, February 14, 2003, North Andover will be sponsoring a Merrimack Valley Chamber of Commerce
breakfast at the Steven's Estate.
On Monday, February 3, Selectmen Smedile and the Town Manager attended a Chamber breakfast where
Congressman Meehan and Tierney spoke.
On Tuesday, February 4, the Town Manager spoke to the Senior Citizen Men's group on current Town financial
matters.
On Thursday, February 6, the Town Manager met with the 4th Grade Webelos of Cub Scout Pack 89 at the
Franklin School to talk about town government.
EXECUTIVE SESSION:
Wendy Wakeman made a MOTION, seconded by Susan Haltmaier, to move into Executive Session to discuss
pending litigation with Rocket Entertainment and Collective Bargaining. The Board would not return to Open
Session. Vote 5-0.
The Board was individually polled and each voted to move into Executive Session. Vote: Wendy Wakeman yes;
Donald Stewart yes; Susan Haltmaier yes; James Xenakis yes; Rosemary Smedile yes.
ADJOURNMENT:
Wendy Wakeman made a MOTION, seconded by Donald Stewart, to adjourn the meeting at 10:45 PM. Vote
approved 5-0.
Adele J. Johnson
Administrative Secretary
James M. Xenakis, Clerk of the Board