Loading...
HomeMy WebLinkAboutMinutes - BoS - 12/06/2011 Minutes-Board of Selectmen December 6, 2011 Selectmen Present: Chairman Edwin G. Carr Paul Carlson Lee Jenkins Frederick Koed Diane Kennedy Others Present: Michael Coughlin, Town Manager Diane Hindley,Acting Selectmen's Clerk Jennifer Oram, Selectmen's Clerk Chairman Carr called the meeting to order at 7:03PM. Public Comment Selectman Frederick Koed asked the Board to observe a moment of silence for former Recreation Director,Jack Worley who passed away the previous evening. Selectman Paul Carlson also asked for a moment of silence for Hamilton Tewksbury who passed away on November 26,2011. Town Manager's Report Town Manager,Michael Coughlin, distributed a packet which entitled"Going forward". Mr. Coughlin then recognized the co-captains of the football team, Chris Murphy and Chris Brash, as well as the the coaches. At the Board's previous meeting,members of the Police Department were recognized. Mr. Coughlin asked Chief Silvia to come forward. Chief Silvia and reads commendations for Captain Paul Bilodeau,Lt. John Dockray and Firefighter/Paramedic Laura Morrison. Mr. Coughlin reminded all members of boards, committees and commission and all employees of the town of the Christmas Party on Monday,December 19'h at Mr. Dooley's. Mr. Coughlin went on to say that he has been the town manager for four months and stated that much has been accomplished. Mr. Coughlin commended all of the town employees for the work that has been achieved to set the tax rate. He stated that the tax recap will be reported by December 15`h. Due to the deadline,Mr. Coughlin asked that the Board defer selection of the Finance Director until their December 13t`meeting. Selectmen Leland Jenkins stated that he would like to be able to see two different candidates. After further discussion,Mr. Coughlin stated then stated that the software system will be implemented by cooperation with town employees. He added that there has outside forces working against the implementation. Mr. Coughlin stated that he realizes that he will be fully accountable for his actions and he is now asking for the opportunity to do his job. Mr. Coughlin stated that he has excellent staff working on the financials;Mr. Eric Kinsherf,Acting Finance Director, and Mr. Dan Sullivan,Acting Treasurer/Collector, as well as the many great staff in Town Hall. Chairman Carr commended Mr. Coughlin on the great job he is doing,but stated that at the end of the day,the Board has given him direction on what they want and as Chairman,he expects it. He stated that he wants a schedule of the SoftRigt Implementation from the Town Manager by next week. There was then a discussion regarding the appointment of the Finance Director. Mr. Coughlin stated that the Town Manager Act [states that this is his appointment] and asked Chairman how he can objectify the act. Chairman Carr said that he know knows that the Finance Director is the appointment of the Town Manager,but that he recalls that Mr. Coughlin said that he would work with the Selectmen in a collaborative manner. Mr. Coughlin stated that he has worked collaboratively. Chairman Carr stated that the Board of Selectmen gives direction to the Town Manager; and that he realizes that this is Mr. Coughlin's appointment,but the Board wants to be involved. says that this board has a duty to forge dignity and respect for our town employees. Selectman Jenkins stated that he believes that the Finance Director is the second most important position in Town Selectmen—12/6/2011 DH Minutes-Board of Selectmen December 6, 2011 Hall and that they should feel they can address the Board on their own. Mr. Coughlin stated that he is the CFO of this town;nothing leaves this town without two signatures,one being his the other being the the Finance Directors'. He added that The Finance Director is more than allowed to speak their own mind. Mr. Kinsherf agreed and stated that he feels very comfortable with his freedom to speak with the Selectmen. Tax Allocation Hearing Chairman Carr read aloud the public hearing notice as advertised. Deputy Assessor,Mary Quill, and the Board of Assessors,Elsa Miller,Mary Granville and Mickey Patrolia. Ms. Quill explained that the purpose of this hearing is to determine if the Selectmen should set a uniformed rate or a split rate. Ms. Quill reviewed the hand out given to the Board. She stated that the residential percentage is 92% and commercial is 7%. She explained that the values/rates are not certified(done so by the Department of Revenue)and therefore the hearing will have to be kept open. She then reviewed the calculations for the Board. There was then a lengthy discussion regarding new growth. She stated that the current tax rate is $11.59. Selectman Carlson asked how much there was in new construction- $59 million,2 %z%of the total, in new growth. Chairman Carr asked who checked the work of the Assessors. Ms. Quill stated that it was the Department of Revenue and that is a re-evaluation year. She added that the numbers are checked by three different people at the DOR. The hearing will be continued. Public Comment Period Mr. Fitzsimmons of asked if all properties were to have increased by 4.8%? Assessor Elsa Miller stated that she thinks that there have been more units on the higher end than last year. Selectman Carlson suggests the median would be better for the single family. Ms. Quill stated she would bring those figures to the Board next week. There was then a discussion regarding Avalon,new growth and future evaluations. Mr. Steve Gaumer,Chairman of the Capital Budget Committee, asked about appreciating closing sales and valuations and asked how many sales did Ms. Quill observed.Ms. Quill responded that there were approximately 90,which is consistent with years passed. Mr. Jack Keniley of the Capital Budget Committee commended Ms. Quill on her professionalism, and the calculating the levy limit which allows the borrowing to the levy limit. He added that the town as a whole sets a limit that is less than the levy,which it can do,but unfortunately, due to the deficit,they cannot do that. He stated that on the preliminary tax recap sheet,the number was $65K less than what was distributed,he said a component may have changed and that it may have been just an estimate at the time,however the number Ms.Quill has delivered is the real number. Adrienne McCarthy of 86 Doan Street commented on the growth of Avalon and said that the more bedrooms,the more children that can be added to our school system which could burden our schools. Assessor Miller would like to commend Mary Quill,Bruce Lane and Ellen Warner for their excellent work during a difficult year. Ms. Miller then made a public comment about the possible"damage"could be caused interviewing Finance Director candidate in a public forum and that they could lose a good candidate. Bond Signing Acting Treasurer/Collector Daniel Sullivan explained the bond signing is for two components; $47k for water system improvements, $839k for water system improvements, $1.2m for sewer, all of which were voted in at previous Town Meetings. The total of$2m is due in December 2012. He explained that these are all BAN's(Bond Anticipation Notes). Selectman Jenkins pointed out that there is over$1million dollars in cash from betterment revenues, and over$400k in other revenues and asked Mr. Sullivan if it was true. Mr. Sullivan stated that it was. Selectman Jenkins asked why are we not using that betterment Selectmen—12/6/2011 DH Minutes-Board of Selectmen December 6, 2011 money for the bonds. Mr. Sullivan explained that those funds are segregated and used to pay down other bonds. Mr.Kinsherf then explained the betterment process explaining that if the betterment was prepaid. it can only be used to pay debt service for that specific project. In addition,people have paid more than the debt that was due. Selectman Jenkins asked if the$1.2 million is part of the Little Harbor Sewer Project. Mr. Sullivan stated it was. Mr. Sullivan recommends that the project is completely reconciled before allocating any of this betterment money to pay off the BAN. Mr. Sullivan recommends renewing this for one more year and then would in the future,they could make recommendations after they have all of the facts. Selectman Koed asked that if everything is verified, can the Town prepay this bond in a year or so. Mr. Sullivan said they could. Mr. Kinsherf added that the Little Harbor project needs to be audited as it is currently in a deficit. There was then a lengthy conversation about the future of the bond. The Chairman asked that the signing be wrapped up as the agenda is running behind. He asked Mr. Sullivan if they could wait a week to sign the bond. Mr. Sullivan stated that it expires on December 9th and that it is necessary to borrow this much and he recommends to borrow this much at the rate being offered. Chairman of the Water Commission,Peter DeCaprio. asked where the numbers came from and if they were certified by Brenda Douglas in the office. Chairman Carr stated that he is upset by previous comments and feels that the numbers given to the accounting department were certified by the staff of American Water. Mr. Sullivan stated that he had to confirm how much had been spent throughout the process and called to confirm the numbers on the general ledger. Mr. Gaumer suggested that the rate payers should hold the elected body to the task of certifying the numbers; American Water does not have a contractual obligation to report numbers to the town so they are they would be the wrong peope to be reporting numbers to the town. Mr. Keniley then asked about the sewer capital account. Mr. Sullivan stated that there are total expenditures of$1.9m that have not been borrowed, according to their numbers the project has been overspent by the appropriation. Mr. Kinsherf recommended approving the bond this evening and will give details to The Town Manager. Mr. John Beck of the Sewer stated that he would like a date to reconcile this debt service. He has been waiting 15 months for this to happen and would like it off the table. Chairman Carr moved to approve the bond signing. Selectman Koed seconded the motion and the vote is unanimous (5-0). Public Comments Operations Director,Mark Brennan spoke about the Seaport Grant application. He thanked Harbormaster Lorri Gibbons,Lou Sedecsa,Mr. Louisa, and Christine Player. Mr. Brennan reviewed the many areas that would be included in the grant, including: the piling that support the docks for commercial fishing, the Parker Ave boat ramp that is in disrepair at the lower end. He explained that these are the coastal infrastructure improvements they will be asking for. He stated that the Town of Cohasset is 15`h in the state with the most transient moorings, and currently, there is only four transient moorings. The Harbormaster has been able to provide space as needed in other locations. The grant application includes a schedule and he explained that the process is not a quick one. He then reviewed the steps. After further review,Mr. Coughlin asked the Board to approve so that the grant application can be submitted. Selectman Carlson moved to approve the application. Selectman Diane Kennedy seconded the motion, and the vote was unanimous (5-0). Chairman of the Water Commission,Peter DeCaprio, is before the Board to discuss their contract for plant operations which is up for renewal on June 30`h of this year. He explained that the commission is recommending a concession contract. He stated that the Town needs to take advantage of the buyer's dynamics. He reviewed ho the agreement would be reached and that it would allow them to dramatically Selectmen—12/6/2011 DH Minutes-Board of Selectmen December 6, 2011 reduce rates and keep them at that level for many years to come. He stated it would also simplify our operations and lessen the burden on town services. Mr. DeCaprio then reviewed the history of the issues from the past that has plagued the Department. He stated that essentially the 2009 calendar year was where the problems began. He stated that it was the perfect storm for them. There was a fairly sharp increase 20%in operator contract coupled with a 15% reduction in volume. He stated that in that year,they did not have the benefit of the fire hydrant revenues. It turned out to be a$265,000 operating deficit and it was paid back. He stated that there has been a lot of talk about our rates and reviewed where they had come from. He agreed that their rates are arguably high,but said that there has only been an increase of 4%compounded annually since 1989. There was then a lengthy discussion reviewing the packet distributed for review. He stated there are 7 concession in Eastern Ma and 1600 nationwide. He said that it provides a substantial front payment, on day one the money goes in the bank and that is what they allocate and set aside for their future capital needs. He stated the Town retains the ownership of the assets and the plant is still running,the only difference is the length of the contract and how we pay for it. The dynamic in a concession is solar credits. The same thing is happening in the utility/water project, it fixes everything and whatever variability came out of the Water Planning Group can be addressed with this. Selectman Diane Kennedy asked if the Town would still set the rate structure. He stated they would and referred to a graph within the packet. Mr. DeCaprio stated that they have to make a decision going forward,do we want to trade low rates for upfront money? If we do this concession,we get this pile of cash and we have 10 to 12 years until we need to think about capital again. After further discussion,Mr. Coughlin stated that it was a great presentation and asked if the Commission would be willing to submit to the Board a plan with a five year projection. Mr. DeCaprio stated he would. Chairman Carr reads aloud all of the licenses for approval. Selectman Koed moved to approve the renewal list of licenses. Selectman Carlson seconded the motion and the vote was unanimous(5-0). Selectmen Carlson moved to adjourn the meeting, Selectman Koed seconded the motion and the vote was unanimous,(5-0). Meeting adjourned at 11:13PM. Respectfully submitted, Edwin G. Carr Chairman Documents: "Going Forward",Dated Assessor Hand Out Concession Agreement Presentation Selectmen— 12/6/2011 DH