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HomeMy WebLinkAboutMinutes - AC - 04/17/2014 Town of Cohasset Massachusetts MEETING MINUTES Town of Cohasset Advisory Committee TIME: April 17,2014 7:00pm - 9:10pm PLACE: Cohasset Town Hall, Basement ATTENDEES: Advisory Committee Presenters • Peter Pescatore, Chair • Chris Senior,Town Manager • Bob Benson • Jack Keniley, Chairman of the Capital Budget • Tanya Bodell Committee • George Chamillard • Mary Gallagher, Director of Finance/Town • Richard Fitzpatrick Accountant • Lealand Jenkins • Linda Mooney Selectmen • Tom Reardon . Martha Gjesteby • Nan Roth THE FOLLOWING ITEMS WERE DISCUSSED: 1. Call to order: The meeting was called to order at 7:00 pm by Peter Pescatore, Chair of the Advisory Committee. 2. Article 10:Allocation of Funds for One-time Cost($50,000)-Chris Senior The Chair reminded the Committee that they had already voted to approve the$100,000 allocation for the special maintenance account in this article and needed to consider the remaining$50,000 Citistat appropriation and recommendation for Article 10. Per prior request by the Committee,the Town Manager presented a break-down of this$50,000 as follows: • Phase 1:$1,000 for 5 months of involvement in the MPMP program involving two departments (e.g., Police,Fire Department,and/or DPM and$15,000 for professional services(min 150 hours) to develop baseline and metrics. Meeting Minutes -: :`' Town of April 17,2014 Cahsset Page 2 °^ Massachusetts • Phase 2:Continuation with the MPMP program(costs range from$2,000 to$50,000 depending on level of service contracted),working with an outside service provider to further develop benchmarks and measurements,and a Cohasset-based intern program staffed by graduate and undergraduate interns to provide regular reports and specialized data as needed. The ultimate objective is to tie what is being spent to the level of services being delivered by the Town. In business, inefficiency and ineffectiveness results in the company going out of business;in government,it can continue indefinitely.This helps to illuminate what the town is doing versus not doing,and provides a separate,independent basis for recommendations. Although no new head count is anticipated,the results of the program may result in a reconfiguration of existing positions and staffing roles. The Town Manager assured the committee that he would be coming back on a regular basis to report on the progress of the program,the data being collected,and insights and committed to reporting on a regular basis to the Advisory Committee and Board of Selectmen. A MOTION TO RECOMMEND THE$50,000 ALLOCATION UNDER ARTICLE 10 was moved by Bob Benson and seconded by George Chamillard.Approved 9-0. 3. Article 9:Funds for Road Repair and Maintenance-Chris Senior This article proposes to allocate $150,000 for road repairs and maintenance projects identified by the Department of Public Works. An additional$209,000 is expected from the state for this purpose. A MOTION TO RECOMMEND ARTICLE 9 was moved by Lee Jenkins and seconded by Bob Benson. Approved 9-0. 4. Article 5:Supplemental Appropriations for FY2014- Mary Galla her The end of year generally includes transfers of surpluses across accounts to cover deficits. This year,the total expected deficit is$244,264.00,with the majority being Snow&Ice($111,374.00) and Street Lights($35,000), resulting from a cold winter and previous anticipation that the Town would own the street lights. There is excess in certain accounts that can be transferred to cover these deficits, including finance personnel,treasurer/collector,and transfer station. The shortfall of$85,000 would come from the stabilization fund. Discussion ensued as to whether the shortfall should be funded from overfunded insurance premiums(6.1%overage)which is$160,000, or whether those premiums should go to OPEB. As stabilization is to meet emergencies,and the snow and ice could be considered an emergency,the stabilization fund would be appropriate. Advisory Committee Meeting Minutes -: :`' Town of April 17,2014 Cohasset Page 3 Massachusetts A MOTION TO RECOMMEND ARTICLE 5 was moved by Tom Reardon and seconded by Nan Roth. Approved 9-0. 5. Article 7: Capital Improvements Budget-Jack Keniley and Mary Galla her In general,the capital schedule seemed to be in order. Two key items at issue include: • High school roof maintenance for$30,000 • Bus leases for$53,000(to be corrected to $75,000 on the Town Meeting floor) Roof maintenance is an operating budget line item and should be included in the FY15 Special Maintenance budget. However,there is precedent and examples in this capital budget(e.g.,one- on-one and Town Hall Restoration pre-capital project site work and study appropriate costs)where an expense that is tied to a larger capital project has come out of the capital accounts. The appropriate accounting for leasing school buses is more complex. The schools have a choice about buying or leasing school buses. If purchased,they need to be maintained and,when the useful life is ended,sold or otherwise disposed of. If owned,the cost would come out of capital accounts. Other towns do put leases into capital plans funded with cash; not bond proceeds.At issue is whether the lease should be similarly treated or come out of the operating budget. Using capital stabilization money for operations sets a bad precedent. Expected net savings to the town of moving from ownership to leasing buses is$100,000 per year. Jack Keniley promised to work with Mary to think through the appropriate accounting treatment and return to the Advisory Committee with a recommendation. 6. Article 22:Amendments to Cohasset By-laws Article 26: Petitioned Article-Town of Cohasset Governance Committee There are now two articles in the warrant concerning proposed changes to the Cohasset By-laws tied to recommendations by the Governance Committee: 1) Article 26:The original citizen's petition to modify the by-laws;and 2) Article 22:An amended version of the citizen's petition modified and submitted by the Board of Selectmen A representative from the Governance Commission was not in attendance at the Advisory Committee meeting. Therefore, no additional insight as to the Governance Commission's recommendation could be discerned. Advisory Committee Meeting Minutes -: :`' Town of April 17,2014 Cahasset Page 4 °^ Massachusetts The Governance Committee is going to meet on the morning of April 231d to review the two articles and make a recommendation.The Advisory Committee agreed to defer its vote until the next meeting,which will be informed by the deliberations of the Governance Committee. A MOTION TO DEFER THE VOTE ON ARTICLE 22 AND 26 was moved by Tanya Bodell and seconded by Tom Reardon.Approved 9-0. 7. Overall Town Budget Having reviewed the department budgets in detail,the Advisory Committee turned to the overall budget. This budget consumes the entirety of the projected uplift in revenues,establishes a higher base that will continue going forward, and could result in the need for an override next year. It was viewed as a fundamental mistake to spend the entirety of the$1.2 million increase in funds in the operating budget. Furthermore,the process by which this budget was created implies a manipulation of the system that sets a bad precedent. The original budget in September assumed a $682,000 increase and everyone initially proposed a budget that would have fit into their obligations. That increased in November to$802,000 and then again in December to$1.3 million, at which point it was disclosed to the newspaper.The final budget included a $1.2 million increase. The town is facing systematic constraints both internally and externally. Internal structures surrounding personnel have created 5%to 9%annual cost increases. External, macroeconomic forces tied to housing turnover, economic conditions,and housing market values have increased expectations and the number of children attending the schools,stressing the town's ability to provide services.These structural issues should be identified and addressed. Structural problems warrant a systematic look and a coherent approach to addressing the long- term sustainability of the town. That said,turning down this budget is a declaration of war strategy that could undermine confidence in department heads. The Town Manager indicated that it would "cut his legs off from under him"and result in a credibility issue just as he assumes office and is trying to address these issues. Although the strategy of sending a message to create a sustainable solution is appropriate,the tactic could be detrimental. If the Committee does vote against the budget, it is not required to indicate what should be removed or recommend a different level. However,failing to do so could weaken the message intended by a vote against the budget. Regardless of the vote,the presentation from the Advisory Committee should let it be known that this budget has serious implications,will limit our ability to give anyone raises next year,and will limit potential outcomes of the union contract negotiations, Advisory Committee Meeting Minutes -: :`' Town of April 17,2014 Cahsset Page 5 °^ Massachusetts as well as requiring an override next year. In other words, approving this budget has implications for everyone's future. A potential recommendation is to reduce the budget by$300,000 - a 1 percent reduction. There does not seem to be stress in terms of spending as money is available to repurpose for other uses at the end of each year. The rest could be put into the general stabilization fund. The broader problem of personnel,cost-of-living increases,step promotions, unions and contracts would not be addressed. Disapproval of the budget is not a step that anyone would like to take. But, as ombudsmen for the town, it is this Committee's fiduciary duty to take a stand. The only way to take a reduced budget to town meeting would be to have a unanimous vote. Such a vote, however, could be symbolic as the budget could still pass. Each person needs to do what they think is the right thing and let the town citizens decide what they want to do. A MOTION TO APPROVE THE TOWN BUDGET AS SUBMITTED was moved by Tanya Bodell and seconded by Tom Reardon. Failed 4-5. Peter Pescatore will present both positions, per decision last week. Tom Reardon will draft the position supporting the vote to approve the budget. 8. Approval of Meeting Minutes 4/3/2014 A MOTION TO APPROVE THE MEETING MINUTES OFAPRIL 3, 2014 was moved by Linda Mooney and seconded by Bob Benson. Approved 7-0-2(abstentions) 9. Approval of Meeting Minutes 4/8/2014 A MOTION TO APPROVE THE MEETING MINUTES OFAPRIL 8, 2014 was moved by Nan Roth and seconded by Peter Pescatore. Approved 7-0-2(abstentions) 10. Scheduled Meetings Next meeting: • Wednesday,April 23, 2014 at 7:00 pm • Town Meeting: Monday,April 28,2014 at 7:00 pm Please arrive at Town Meeting 10 minutes in advance. 11. Farewell and ThankYou -Tom Reardon Tom Reardon indicated that this could be his final meeting on the Advisory Committee as his second term was ending. He expressed a deep pleasure at being involved in the Committee and a heartfelt thanks to the other committee members. Advisory Committee Meeting Minutes -: :`' Town of April 17,2014 Cahasset Page 6 Massachusetts 12. Motion to Adjourn: A MOTION TOADIOURNwas made by Tom Reardon and seconded by Bob Benson. Approved 9-0. Respectfully submitted, Tanya Bodell, Rotating Secretary Advisory Committee