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HomeMy WebLinkAbout2011-11-08 Board of Selectmen Packet16 Lowell Street Reading, MA 018672685 FAX: (781) 942-9071 Email: townmanager@ci.reading.ma.us Website: www. readingma.gov MEMORANDUM TO: Board of Selectmen FROM: Peter I. Hechenbleikner DATE: November 3, 2011 TOWN MANAGER (781) 942-9043 RE: Agenda -November 8, 2011 4) The Volunteer Appointment Subcommittee will be meeting early next week and will interview an applicant for the Council on Aging. Their recommendation will be included in the motions for your November 8th meeting. 5a) Bob Beck, Fire Fighter for the Reading Fire Department, will be in to do a brief presentation for the Board of Selectmen and the community on the upcoming Toys for Tots program. 5b) Your packet includes material on the tax classification hearing. We found out mid day on Thursday that the State has approved the forms that they need to approve, and that the Board of Selectmen will be free to take action on the tax classification on Tuesday. 5c) Town Clerk Laura Gemme will be in to discuss with the Board the ramifications of combing the 2012 local election with the 2012 presidential primary election: The material in your packet includes a couple of charts showing dates under two 'different scenarios - a combined election and separate elections. 5d) All liquor licensees have been requested to appear at the Selectmen's meeting. I am including in your packet a draft agenda for this part of the meeting. Two licensees have indicated to us they will not be able to attend, and I will work with the Chairman to repeat the substance of the Board's discussion on Tuesday night with these two licensees. 5e) Lori'Hodin and Monique Grianaratnam will be in to talk about the mission and direction of the Human Relations Advisory Committee. As you know, there are vacancies on the committee and the committee had not met for some time until they met recently to discuss their mission. I have talked with Lori and Monique about how they might go about developing a new mission and direction. 4 5f) We received one bid for the operation and management of the Burbank. Ice Arena. This was from the Reading Ice Arena Authority. I am copying the proposal that we received with your material. By Tuesday night, I will have evaluated this material to make sure it conforms to the RFP and I will have a recommendation for the Board of Selectmen. 5g) The Chairman has suggested discussion about establishment of a Town Manager evaluation subcommittee. This traditionally has been two members of.the Board who solicit and received input from the other members, compiles a composite evaluation and presents that to the Board and Town Manager in mid-December. The Board of Selectmen policy and last year's evaluation are included in your packet. PIH/ps 5 LEGAL NOTICE o~N Ur ~ y. 638 IHCOR4~¢P TOWN..OF READING , >NO.TICE OE PUBLIC " HEARING To the` Inhabitants:bf the Town of Reading: , Notice'.is-hereby'given that•a`. public hearing will beheld in accordance with' t.he.. Massachusetts General Laws,. Chapter 369 of the Acts of 1982. • om the• issue of tletermming,a : residential factor in assessing the percentage of talc :burden :to be borne by each class of prop- erty for Fiscal Year 2012. The., hearing , will be, held -on Tuesday,' Noverrtber,.8, 2010 at' > 7.30 m the Selectmen's Meeting ° Room; 16 : Lo-well., Street; Rea_ding~,~MA. j. Oral or written'info rmati06 py interested parties will be received :by the ;S61ectmen,at ` the heading, and will.'4e received :by email up.ao 6:00 p m.. on November 8, 2011 to' townma"noger@ci I;eading ma...u. s The five:: classes of property; involvetl are residential, open space, commercial, industrial' and personal property By order of Peter I.'Hechenbleikner TOwn Managejr 10/25,1.1/1 6 s61 Page 1 of 2 Schena, Paula From: Hechenbleikner, Peter Sent: Tuesday, November 01, 2011 9:30 AM To: Schena, Paula Subject: FW: Tax Rate Copy for. Board of Selectmen next week re tax classification - redact email address of the resident Peter I. Hechenbleikner Town Manager- Town of Reading 16 Lowell Street Reading MA 01867 Please note new Town Hall Hours effective June 7, 2010: Monday, Wednesday and Thursday: 7:30 a.m - 5:30 p.m. Tuesday: 7:30 a.m. - 7:00 p.m. Friday: CLOSED phone: 781-942-9043 fax 781-942-9071 web www.readingma.gov email town manager ci reading ma us Please let us know how we are doing - fill out our brief customer service survey at http://readingma-survey virtuaItownhaI1 net/survey/sid/1dc7dcf24f2eb18 From: ilene bornstein [mailto ' __7 Sent: Monday, October 31, 2011 5;22 PI1 To: Reading - Selectmen 1 ~~l r{; y ~ Subject: FW: Tax Rate Once again, I am writing to request that you adopt a split tax rate. One can no longer call Reading a strictly residential town, with the presence of so many big box stores and restaurants. These commercial enterprises take, and do not give. It is time for them to pay more for their burden on our services and resources and ease the burden on the average homeowner. Most of these businesses are headquartered out of state. What do they care for Reading? Additionally, I propose another business-rate category for the smaller, locally based single stores. These 2 commercial rates can be based on one or more of the following: number of employees; square footage; local or out of state ownership; gross revenue; etc. This will serve to encourage the growth of our local business community. You should know that I am a long time Reading resident, a Senior and no longer have children in the school system. I am HAPPY to contribute my fair share, and help educate the children of our community. I am FURIOUS to be taxed at the same rate as a Home Depot, Jordan's,, Chili's etc. 11/1/2011 7 S -z' Page 2 of 2 May I also remind you that the development of the DUMP was undertaken to ease the tax burden on the homeowner. We are still waiting..... Sincerely, Ilene J. Bornstein; 80 Haystack Rd. 781-944-4294 Please see below and note date!!! From: F , To: selectmen@ci.reading.ma.us Subject: Tax Rate Date: Sun, 23 Nov 2008 10:20:12 -0500 Kudos to Ben Tafoya for speaking out for the average homeowner/taxpayer. With the addition of many deep- pocketed stores in our midst, it is well past time for the average homeowner to gain some tax advantage. With the extra income these stores generate, they also bring traffic and at times, the need for increased police presence. These latter are subsidized by the homeowners in larger proportion than is fair. A split tax rate is the only proper response. ALL Selecipersons need to recognize this and vote accordingly. Sincerely, Ilene J. Bornstein C S63 11/1/2011 8 Page 1_of 2 Schena, Paula From: LeLacheur, Bob Sent: Wednesday, November 02, 2011 10:25 AM To: Hechenbleikner, Peter; Schena, Paula Cc: Boatwright, Bill Subject: FW: Tax Class Hearing After a discussion, Bill would like you to use this response below as part of the BOS packet for next week. Bill will also have his presentation ready for you to include in the packet by Thursday mid-day. Thanks, Bob Bob LeLacheur Assistant Town Manager/Finance Director Town of Reading 16 Lowell Street Reading, MA 01867 (P) 781-942-6636 (F) 781-942-9037 Please note new Town Hall Hours: Monday, Wednesday and Thursday: 7:30 a.m - 5:30 p.m. Tuesday: 7:30 a.m. - 7:00 p.m. Friday: CLOSED. web www.readingma.gov email finance(a),ci.reading. ma.us Please let us know how we are doing - fill out our brief customer service survey at htt~//readingma- survey.virtualtownhall.net/survey/sid/1 dc7dcf24f2ebl 82/ From: Boatwright, Bill Sent: Wednesday, November 02, 20119:28 AM To: LeLacheur, Bob Subject: RE: Tax Class Hearing Good Morning Bob, As of yesterday, November 1, 2011, only 44 towns and cities have been approved out of 351 state-wide towns and cities. Yesterday, we were twelfth in line out of 44 communities waiting for the final approval process. Bill William L. Boatwright MAI Town Appraiser Town of Reading 16 Cowell Street Reading MA 01867-2601 Main: 781-942-9027 Fax: 781-942-9037 E-mail: bboatwright@ci.reading.ma.us sib N 11/2/2011 9 Page 2 of 2 Web: www.readinema.~ov Please note New Town Hall Hours effective June 7, 2010 Mon. 7:30 am to 5:30 pm; Tues. 7:30 am 7:00 pm; Wed. & Thurs. 7:30 am to 5:30 pm; Closed Friday, From: LeLacheur, Bob Sent: Wednesday, November 02, 20117:34 AM To: Boatwright, Bill Cc: Hechenbleikner, Peter Subject: Tax Class Hearing Hi Bill - I updated the BOS last night about the fact they can have the TC Hearing but are not yet cleared by the state to vote. They requested something from you and/or the BOA explaining why, and they wanted it before next week. We'll use the email you sent unless I hear differently from you between now and when Paula sends their meeting packet out on Thursday afternoon. Thanks, Bob Bob LeLacheur Assistant Town Manager/Finance Director Town of Reading 16 Lowell Street Reading, MA 01867 (P) 781-942-6636 (F) 781-942-9037 Please note new Town Hall Hours: Monday, Wednesday and Thursday: 7:30 a.m - 5:30 p.m. Tuesday: 7:30 a.m. - 7:00 p.m. Friday: CLOSED web www.readingma.gov email finance@ci.reading. ma. us Please let us know how we are doing - fill out our brief customer service survey at httP_//readin_gma. survey,virtualtownhall. net/su rvey/sid/l dc7dcf24f2ebl 82/ 11/2/2011 10 sb5' TOWN OF READING 16 L LL STREET READING, 01867-2693 BOARD OF ASSESSORS TEL.: 781-942-9027 FAX: 781-942-9037 November 1, 2011 Peter Hechenbleikner, Town Manager Reading Town Hall 16 Lowell Street Reading, MA 01867 Dear Peter: As you are no doubt aware, the Board of Assessors met with Bob LeLacheur at the Board's October 25th regularly scheduled meeting. At that meeting, Mr. LeLacheur informed the Board of the recently enacted legislation, which prohibits the telecommunication industry from disputing their legal obligation to pay personal property taxes. Not coincidentally, he was requesting that the Board amend the dollar amount of the overlay account. While pleased to be informed.of the above referenced positive development, the Board remains concerned, among other factors, with the possibility of an increase in the number of commercial property abatements should the Board of Selectmen opt to split the tax rate. continued 11 Peter Hechenbleikner November 1, 2011 Page 2 of 2 As a result, following a significant amount of discussion and careful consideration, it is the decision of the Board of Assessors to reduce the dollar amount of the fiscal year 2012 overlay account from $675,000 - as had previously been detailed in our September 20th letter - to $600,000. Very truly yours, Ral A. Colorusso, Chairman AFre *McGrrfee,, dstrand, Vice Chairman Secretary / Clerk cc: Robert LeLacheur, Ass't Town Manager & Finance Director Camille W. Anthony, Chair, Board of Selectmen Marcie West, Chair, Finance Committee Gail LaPointe, Town Accountant William Boatwright, Town Appraiser 5 b-~ 12 'FOWN OF READ~NG cw FISCAL 2012 CLASSIFICATION HEARING Presented to the Board of Selectmen By the oar o Assessors November 0, 2011 °Q DETERMINATION OF VALUATION BY GLASS v l Each year, prior to the mailing of the first actual tax bill, the Board of Selectmen holds a public hearing to discuss and decide on the distribution of the tax burden among the various classes of property. The Assessors finalize all assessments and group them into four classes of property. The values are used to determine the allocation of the tax burden among the three classes of real property and one class of personal property. The Reading property value totals by property class from 2009 through 2012, are as follows. PROPERTY VALUATION CLASSIFICATION HIS TORY FY 2009-FY 2012 FY 2012 FY 2011 FY 2010 FY 2009 ASSESSED % OF ASSESSED % OF ASSESSED % OF ASSESSED % OF PROPERTYCLASS VALUATION TOTAL VALUATION TOTAL VALUATION TOTAL VALUATION TOTAL RESIDENTIAL (R) $3,389,725,591 90.06% $3,373,086,171 90.01% $3,308,115,508 90.74% $3,401,468,484 91.44%0 OPEN SPACE (O) $0 0.00% $0 0.00% $0 0.00% $0 0.00% TOTAL R O : $3,389,725,591 90.06% $3,373,086,171 90.01% $3,308,115,508 90.74% $3,401,468,484 91.44% COMMERCIAL (C) $320,481,055 8.51% $319,506,376 8.53% $270,816,033 7.43% $262,919,463 7.07% INDUSTRIAL (1) $9,648,700 0.26% $9,658,200 0.26% $21,050,500 0.58% $21,161,400 0.57% PERSONAL (P) $44,158,260 1.17% $45,295,130 1.21% $45,778,760 1.26% $34;298,590 0.920/6 TOTAL C I P : $374,288,015 9.94% $374,459,706 9:99% $337,645,293 9.26% $318,379,453 8.56% TOTAL TOWN : $3,764,013,606 100.00% $3,747,545,877 100.00% $3,645,760,801 100.00% $3,719,847,937 100.00% I * Fiscal Year 2012 analysis assumes that the tax rate will be based upon a uniform single rate 2 EVALUATION OF EXEMPTION OPTIONS In addition to deciding the share of the levy to be incurred by the residential, commercial, industrial, and personal property classes, the Classification Hearing allows the Board of Selectmen to consider alternatives with respect to alternative property tax exemptions. and discounts. The four votes needed to be taken by the Board of Selectmen are as follows: -Vote of a Residential Exemption -Vote of a Small Commercial Exemption -Vote of an Open Space Discount -Vote of a Residential Factor Information concerning each alternative, as well as a list of communities which have implemented an exemption and/or discount, follows. RESIDENTIAL. EXEMPTION Adopting the Residential Exemption would allow the Selectmen to exempt from qualified Class I properties a percentage of the average assessed value of all Class 1 properties. The exemption can be as high as twenty (20%) percent of the average assessed value of all Class I properties, or as low as five (5%) percent, and in between in multiples of five (5%) percent. To compensate for the reduction in valuations of Class I properties receiving the exemption, the tax rate for the residential class must increase. This is because the total taxes to be levied on Class I properties must remain within that class of property, and cannot be shifted into properties classified as Commercial, Industrial or Personal Property. 3. 07- c~ RESIDENTIAL. EXEMPTION (CONT) Currently, thirteen Massachusetts cities and towns have adopted the Residential Exemption. The Residential Exemption is used in Barnstable, Boston, Brookline, Cambridge, Chelsea, Everett, Malden, Nantucket, Somerset, Somerville, Tisbury, Waltham and Watertown. In general, a majority of the residential taxpayers in Reading would qualify for this exemption. We estimate that as much as 98. percent of Reading's residential taxpayers would qualify for this exemption. It will decrease the tax burden on the primary residence of Reading residents up to the town-wide average assessed value. The adoption of this option results in a higher tax rate for the Residential class of property. It will increase the tax burden on all non-residents of the community as well as the owners of all vacant land and apartment building properties. It will also increase the tax burden on Reading residents entitled to the Residential Exemption if the assessed value of their single family residence is greater than the town-wide average assessed value. The Residential Exemption tends to be adopted in communities which have a high percentage of apartments and seasonal homes and other investment property. 4 ~11 ice/ SMALL COMMERCIAL EXEMPTION The Board of Selectmen can elect to grant an exemption to the owners of commercial property valued at less than $1,000,000 as of January 1, and occupied by business with an average annual number of employees of ten employees or less. The source document for this information is the Department of Labor and Workforce Development. The maximum amount of the exemption is ten (10%) percent of the assessed value of the qualified property. An adoption of this provision will result in a higher tax rate for all Commercial and Industrial properties, but would have no effect on the Residential, Open Space or Personal Property classes of property. While the eligible business does not have to own the building, all occupants of the -commercial portion of a building must qualify. As a result, most of the multi-tenant J commercial property owners are ineligible. Ten cities and towns adopted this exemption for FY 2011: Auburn, Avon, Bellingham, Braintree, Dartmouth, New Ashford, Seekonk, Somerset, Westford and Wrentham. Each of these cities and-towns had significant commercial development that the community wanted to tax at a higher tax rate. This exemption limit of 10.0 percent tends to diminish the attractiveness to communities that wish to adopt this exemption. There are one-hundred four (104) commercial properties in Reading for FY 2011 that would be eligible for this.exemption. The total assessed value for these eligible properties is $4.748 million, which results in an assessed value of $4.748 million that may be eligible for the Commercial Exemption. 5 Change in Value Between FY10 & FY11 - Commercial Properties W 00 V~ 6 OPEN SPACE DISCOUNT A maximum exemption of 25% may be adopted for all property that is classified as Open Space as determined by the Board of Assessors. The Board of Assessors further refines this definition to be privately held parcels which are in excess of an acre and unbuildable. The Board of Assessors has not classified property-as Open Space since 1991, as. few parcels qualify. In .FY 2011 one community (Bedford)' adopted this discount. -Owners of comparatively larger parcels can place their property in one of the chapter alternatives to receive advantageous tax benefits. Any discount.to owners of land granted an Open Space discount, is raised by the Residential class of taxpayers. 7 CT' .S N O SUMMARY OF EXEMPTIONS AND DISCOUNT Residential Exemption Small Commercial Exemption Open Space Discount Principally domiciled Class 3 (commercial) property Residential Properties, in an residential home owners with fewer than 10 employees open and natural state as whose assessment is at or <$1,000,000, and employing determined by the Assessors, under the break even fewer than 10 employees will not including Chapter Land valuation will benefit from benefit from the adoption. Program participants, or the adoption. properties with a perpetual deed restriction will benefit from the adoption. The voted % is removed The voted % is removed from The voted % is removed from from the taxable valuation. the taxable valuation. the taxable valuation. The allowable exemption The allowable exemption up to The allowable discount up to range is from 5 to 20% of 10% of the assessed value of 25% of value may be exempt the average of residential the qualifying property under this provision property types assessment Residential Class, Commercial and Industrial Residential Class I pays for properties pay for the Classes III + IV pay for the the Program Program Program 13 Communities adopted 10 Communities adopted the 1 Community adopted the the exemption for FY 2011 exemption for FY 2011 exemption for FY 2011 CF- _ The following tables show compared communities that are located adjacent to Reading, are part of the Middlesex League, and have a CIP ratio of slightly greater or less than ten (10) percent of total value. N Adjacent CIP SHIFT FYI 1 Tax Rate FYI 1 CIP% Community FY09 FY10 FY11 CIP RES of Total LYNNFIELD 1.14 1.06 1.08 14.61 13.49 8.12 NO READING 1.00 1.00 1.00 14.00 14.00 13.00 READING 1.00 1.00 1.00 13.80 13.80 9.99 STONEHAM 1.55 1.53 1.50 19.63 12.21 11.78 WAKEFIELD 1.75 1.75 1.75 23.32 11.46 15.77 WILMINGTON 1.75 1.75 1.75 28.10 11.88 25.74 WOBURN 1.75 1.75 1.75 26.34 10.30 29:62 9 N N t5- Middlesex CIP SHIFT FY11 Tax Rate FY11 CIP% League FY09 FY10 FY11 CIP RES of Total ARLINGTON 1.00 1.00 1.00 12.41 12.41 6.01 BELMONT 1.00 1.00 1.00 13.24 13.24 6.12 BURLINGTON 1.66 1.70 1.68 30.80 11.50 35.53 LEXINGTON 1.70 1.70 1.70 27.28 14.40 12.79 MELROSE 1.50 1.47 1.48 19.01 12.46 5.91 READING 1.00 1.00 1.00 13.80 13.80 9.99 STONEHAM 1.55 1.53 1.50 19.63 12.21 11.78 WAKEFIELD 1.75 1.75 1.75 23.32 11.46 15.77 WATERTOWN 1.75 1.75 1.75 25.87 13.92 19.41 WILMINGTON 1.75 1.75 1.75 28.10 _ 11.88 25.74 WINCHESTER 1.00 1.00 1.00 12.10 12.10 5.51 WOBURN 1.75 1.75 1.75 26.34 10.30 29.62 10 N w (r-, cr- oQ Communrties_ t GIP SHIFT FYI 1 Tax Rate FYI 1 CIP% han with less 100/0 'C6P FY09 FY1'0 FY11-11 CIP RES of Total BELMONT 1.00 1.00 1.00 13.24 13.24 6.12 GLOUCESTER 1.00 1.06 1.06 12.08 11.31 10.70 LINCOLN 1.30 1.30 1.30 16.27 12.37 3.78 LYNNFIELD 1.14 1.06 1.08 14.61 13.49 8.12 MELROSE. 1.50 1.47 1.48 19.01 12.46 5.91 MILTON 1.00 1.50 - 1.50 21.56 14.07 4.07 READING 1.00 1.00 1.00 13.80 13.80 9.99 SUDBURY 124 1.23 1.28 22.27 17.03 7.09 SWAMPSCOTT 1.75 1.75 1.75 30.80 16.60 7.04 WINCHESTER 1.00 1.00 1.00 12.10 12.10 5.51 11 EVALUATION OF TAX SHIFT OPTIONS The RESIDENTIAL FACTOR is simply the number that calculates the N C37 TOWN OF READING AVERAGE SINGLE-FAMILY TAX DATA FY 2008 - FY2012 TOTAL VALUE NUMBER OF AVG. VALUE TAX AVERAGE AVG. TAX PERCENT FISCAL SINGLE FAMILY SINGLE FAMILY SINGLE FAMILY RATE TAX BILL BILL CHANGE CHANGE YEAR PARCELS PARCELS PARCELS 2012 $2,895,475,600 6,514 $444,500 $14.15 $6,289.68 $181.05 2.96% 2011 $2,880,796,500 6,508 $442,655 $13.80 $6,108.63 $1.55.72 2.62% 2010 $2,816,270,800 6,505 $432,939 $13.75 $5,952.92 $95.11 1.62% 2009 $2,882,787,600 6,501 $443,438 $13.21 $5,857.81 $161.78 2.84% 2008 $2,933,909,900 6,490 $452,066 $12.60 $5,696.03 $123.85 2.22% *Fiscal Year 2012 analysis assumes that the tax rate will be based upon a uniform single rate s 13 N CY) TOWN OF READING AVERAGE COMMERCIAL TAX DATA FY 2008 - FY 2012 TOTAL VALUE NUMBER OF AVG. VALUE TAX AVERAGE AVG. TAX PERCENT FISCAL COMMERCIAL COMMERCIAL COMMERCIAL RATE TAX BILL BILL CHANGE CHANGE YEAR PARCELS PARCELS. PARCELS 2012 $311,122,900 205 $1,517,673 $14.15 $21,475.07 $477.64 2.27% .2011 $310,396,800 204 $1,521,553 $13.80 $20,997.43 $3,306.38 18.69% 2010 $263,757,510 205 $1,286,622 $13.75 $17,691.05 $1,281.79 7.81% 2009 $255,890,100 206 $1,242,185 $13.21 $16,409.26 $992.36 6.44% 2008 $248,383,500 203 $1,223,564 $12.60 $15,416.91 $15,416.91. 10.83% * Fiscal Year 201 2 analysis assumes that the tax rate will be based upon a uniform single rate 14' N FY2012 RES Tax Rate Options Reside nttal'Assessment FYI 1 $300,000 $4001000' $44 °$500,000 $600000$800;000 !000,000 $1,000,000, $1 ,500;000 $2.0000.00 FY12 $301,250 $401;.667, r $502 Q84 $6.Q50 $803;334 $9;03,751 $1,004168 $1,506;252 $2 0^ FY11 Rate 13.80 $4140 $5 520 $6 900 $8 280 $11 040 $12 420 $13 800 $20 700 $27 600 Factor of 1, FY12 14.15 $4,263 $5,684 $7,104 $8,525 $11,367 $12,788 $14,209 $21,313 $28,418 $Diff %Dif $123 3.0% $164 3.0% $181 3.0% $204 3.0% $245 $327 3.0% 3.0% $368 3.0% $409 3.0% $613 3.0% $818 3.0% 1.10 13.99 $4,214 $5,619 $6,219 $7,024 $8,429 $11,239 $12,643 $14,048 $21,072. $28,097 $Diff %Dif $74 1.8% $99 1.8% $110 1.8% $124 1.8% $149 $199 1.8% 1.8% $223 1.8% $248 1.8% $372 1.8% $497 1.8% 1.20 13.84 $4,169- $5,559 $6,152 $6,949 $8,339 $11,118 $12,508 $13,898 $20,847 $27,795 $Diff %Dif $29 0.7% $39 0.7% $43 0.7% $49 0.7% $59 $78 0.7% 0.7% $88 0.7% $98 0.7% $147 0.7% $195 0.7% 1.30 13.68 $4121 $5,495 $6,081 $6,869 $8,242. $10,990 $12,363 $13,737 $20,606 $27,474 $Diff %Dif ($19) -0.5% ($25) -0.5% ($28) -0.5% ($31) -0.5% ($38) ($50) -0.5% -0.5% ($57) -0.5% ($63) -0.5% ($94) -0.5% ($126) -0.5% 1.40 13.53 $4,076 $5 435 $6,014 $6 793 $8152 $10,869 $12228 $13,586 2013 80 $27173 $Diff %Dif ($64) -1.5% ($85) -1.5% ($95) -1.5% ($107) -1.5% ($128) ($171) -1.5% -1.5% ($192) -1.5% ($214) -1.5% ($320) -1.5% ($427) -1.5% 1.50 13.37 $4,028 $5,370 $5,943 $6,713 $8,055 $10,741 $12,083 $13,426 $20,139 $26,851 $Diff %Dif ($112) -2.7% ($150) 2.7% ($166). -2.7% ($187) -2.7% ($225) ($299) -2.7% -2.7% ($337) -2.7% ($374) -2.7% ($561) -2.7% ($749) -2.7% 15 N 00 FY2012 Comm Tax Rate Options CIP' AssESSmenf FY11 $.400,000 $600,000 .$1,500;000 $1,521,553 $1;90000,0, $3,8000 0,0 $8,800,00 $12,500,Q00 .GIP As.5e;ssment FY12 $398,98.0 $598,470 51,496,17E $1,517,673 $1,895,15,5 $3,790,310 $8,777,560 $12,468,125 FY11 Rate 13.80 $5,520 $8,280 $20,700 $20,997 $26,220 $52,440 $121,440 $172,500 Factor of 1, FYI 2 14.15 $5,646 $8,468 $21,171 $21,475 $26,816 $53,633 $124,202 $176,424 $Diff %Dif $126 2.3% $188 2.3% $471 2.3% $478 2.3% $596 2.3% $1,193 2.3% $2,762 2.3% $3,924. 2.3% 1.10 15.57 $6,212 $9;318 $23,295 $23,630 $29,508 $59,015 $136,667 $194,129 $Diff %Dif $692 12.5% $1,038 12.5% $2,595 12.5% $2,633 12.5% $3,288 12.5% $6,575 12.5% $15,227 12.5% $21,629 12.5% 1.20 16.98 $6,775 $10 162 $25 405 $25,770 $32180 $64,369 $149,043 $211,709 $Diff %Dif $1,255 22.7% $1,882 22.7% $4,705 22.7% $4,773 22.7% $5,960 22.7% $11,919 22.7% $27,603 22.7%" $39,209 22.7% 1.30 18.40 $7z341 $11 012 $27,530 $27925 871 $69742 $161 507 $229 413 $Diff %Dif T-1 $1,821 33.0% $2,732 33.0% $6,830 33.0% $6,928 33.0% 51 t33.0% $17,302 33.0% $40,067 33.0% $56,913 33.0% 1.40 19.81 $7,904 $11,856 $29,639 $30,065 $37,543 $757086 $173,883 $246,994 $Diff %Dif $2,384 43.2% $3,576 43.20/6 $8,939 43.2% $9,068 43.2% $11,323 43.2% $22,646 43.2% $52,443 43.2% $74,494 43.2% 1.50 21.23 $8,470 $12,706 $31,764 $32,220 $40,234 $80,468 $186,348 $264,698 $Diff $2,950 $4,426 53.4% 53.4% $11,064 534% $11,223 53.4% $14,014 53.4% $28,028 53.4% $64,908 53.40/6 $92,198 53.4% 16 ZT` NvJ N CD FY2011 Comm Tax Rate Options CIP Ass:?ssment FY10 $400 0©C V60Q000, $1,286,622 $1,500,000 $1,900,000 $3;80000`0 $8;800,000 $12,500,000 CIP 4ssFssment,FY11 $473,0'8 r0°.°657 $1,521,553 $1,778,893 $2;246,931 $4,49. W2 -,$10,406,838 $14,782,440 FY10 Rate 13.75 $5,500 $8,250 $17,691 $20,625 $26,125 $52,250 $121,000 $171,875 Factor of 1, FYI 1 13.80 $61528 $9,792 $20,997 $24,480 $31,008 $62,015 $143,614 $203,998 $Diff %Dif $1,028 18.7% $1,542 18.7% $3,306 18.7% $3,855 18.7% $4,883 18.7% $9,765 18.7% $22,614 18.7% $32,123 18.7% 1.10 15.17 $7,176 $10,764 $23,082 $26,910 $34086 $68,172 -$167,872 $224 250 $Diff %Dif $1,676 30.5% $2,514 30.5% $5,391 30.5% $6,285 30.5% $7,961 30.5% $15,922 30.5% $36,872 30.5% $52,375 30.5% 1.20 16.55 $7,829 $11743 $25182 $29 358 $37187 $74,373 172,233 $244,649" $Diff %Dif " $2,329 42.3% $3,493 42.3% $7,491 42.3.% $8,733 42.3% $11,062 42.3% $22,123 42.3% $51,233 42.3% $72,774 42.3% . 1.30 17.93 $8,482 $12,722 $27,281 $31,806 $40,287 $80,575 $186,595 $265,049 $Diff %Dif $2,982 54.2% $4,472 54.2% $9,590 54.2% $11,181 54.2% $14,162 54.2% $28,325 54.2% $65,595 54.2% $93,174 54.2%, 1.40 19.31 $9,134 $13,702 $29,381 $34,254 $43,388 $86,776 $200,956 $285,449 $Diff %Dif $3,634 66.1% $5,452 66.1% $11,690 66:1% $13,629 66.1% $17,263 66.1% $34,526 66.1% $79,956 66.1% $113,574 66.1% 1.50 20.69 $9 787 $14,6 81 $31,481 $36,702 $46,489 $92,978 $215 317 $306,849 $Diff %Dif $4,287 $6,431 77.9% 77.9% $13,790 77.9% $16,077 77.9% $20,364 77.9% $40,728 77.9% $94,317 77.9% $133,974 77.9% 17 c5~ w 0 :1A 60:00% 50.00% - x F-- 30.00%' - t - 20.-W as m v 10.00% - CIP Shift Impact on Average Tax Bills Increase/Decrease) Residential -Comm/Ind co T N fac tors OPShift Res Factor 1.00 100.0000 1.01 99.8898 1.02 99.7792 1.03 99.6687 1.04 99.5583 1.05 99.4479 1.06 99.3375 1.07 99.2271 1.08 99.1167 1.09 99.0062 1.10 98.8958 1.11 98.7854 1.12 98.6750 1.13 98.5646 1.14 98.4541 1.15 98.3437 1.16 98.2333 1.17 98.1229 1.18 98.0125 1.19 97.9021 1.20 97.7916 1.21 97.6812 1.22 97.5708 1.23 97.4604 1.24 97.3500 1.25 97.2395 1.26 97.1291 1.27 97.0187 1.28 96.9083 1.29 96.7979 1.30 96.6874 2012 Resiftt a l Tax lobe O ptions Share % Est Ta x Rates I r rpact for Avera ge FY12 Tax Bills Res CIP Total Res CIP' FY12 Res Tax FY11 Dif $ FY11 Dif % FY12 CIP Tart 90.056 9.9439 100.0 14.15 14.15 $6,290 $181 296% $21,475 89.957 10.0433 100.0 1413 14.29 $5,281 $172 282% $21,698 89.857 10.1427 100.0 14.12 14.43 $6,276 $168 275% $21,900 89.758 10.2422 100.0 14.10 14.57 $6,267 $159 260% $22,112 89.658 10.3416 100.0 14.09 14.72 $6,263 $154 253% $22,340 89.559 10.4410 100.0 14.07 14.86 $6,254 $145 238% $22,553 89.460 10.5405 100.0 14.06 15.00 $6,250 $141 231% $22,765 89.360 10.6399 100.0 14.04 15.14 $6,241 $132 216% $22,978 89.251 10.7394 100.0 14.03 15.28 $6,236 $128 2090/0 $23,190 89.161 10.8388 100.0 14.01 15.42 $6,227 $119 1.94% $23,403 89.062 10.9382 100.0 13.99 15.57 $6,219 $110 1.80% $23,630 88.962 11.0377 100.0 13.98 15.71 $6,214 - $105 1.73% $23,843 88.863 11.1371 100.0 13.96 15.85 $5,205 $97 1.56% $24,055 88.763 11.2365 100.0 13.95 15.99 $6,201 $92 1.51% $24,263 88664 11.3360 100.0 13.93 16.13 $6,192 $83 1.36% $24,480 565 88 11.4354 100.0 13.92 16.27 $6,187 $79 1.29% $24,693 . 88.465 11.5349 100.0 13.90 16.41 $6,179 $70 1.14% $24,905 88.366 11.6343 100.0 13.88 16.56 $6,170 $61 1.00% $25,133 88.266 11.7337 100.0 13.87 16.70 $6,165 $57 0.93% $25,345 88.167 11.8332 100.0 13.85 16.84 $6,156 $48 0.78% $25,558 88.067 11.9326 100.0 13.84 16.98 $6,152 $43 0.71% $25,770 87.963 120321 100.0 13.82 17.12 $6,143 $34 0.56% $25,983 87 868 121315 100.0 13.81 17.26 $5,139 $30 0.49% $25,195 . 87.769 122309 100.0 13.79 17.41 $5,130 $21 0.34% $23,423 87.670 123304 100.0 13.78 17.55 $6,125 $17 0.27% $26,635 87.570 124298 100.0 13.76 17.69 $6,116 $8 -0.13% $25,848 87.471 125293 100.0 13.74 17.83 $6,107 -$1 -0.02% $27,060 87.371 126287 100.0 13.73 17.97 $6,103 -$5 -0.09% $27,273 87.272 127281 100.0 1771 18.11 $6,094 -$15 -0.24010 $27,485 87.172 128276 100.0 1a70 18.25 $6,090 -$19 -0.31% $27,693 . 87.073 129270 100.0 13.68 18.40 $6,081 -$28 -a46% $27,925 FY11 Cif $ $478 $690 $903 $1,115 $1,343 $1,555 $1,765 $1,980 $2,193 $2,405 $2,845 $ 3,058 $3,270 $3,483 $3,695 $3,908 $4,135 $4,348 $4,773 $4,985 $5,198 $5,425 $5,638 $5,850 $6,063 $6,275 $6,488 $6,700 $6,928 FY11 Dif % 227% 3.29% 4.30% 5.31% 6.39% 7.41% 8.42% 9.43% 10.44% 11.45% 1254010 13.55% 14.56010 15.57% 16.59% 17.60% 18.61% 19.69% 20.71% 21.72% 2273% 2am/o 24.75% 25.84% 26.x /o 27.86% 28.87% 29.89% 30.90010 31.91% 3299% 19 w N LOSS IN COMMERCIAL T,AX REVENUE (SPLIT RATE) VALUATIQN SCENARIO USING (CIP) SPLIT RATE FACTOR.OF 20%;. SCENARIO 1 SCENARIO 2 Single Rate Split Rate No Factor 0-20% Factor Net Income $100,000 Net Income $100,000 OAR ETR OAR ETR 9.0% +1.415% 10.415% 9.0% + 1.698% 10.698% Indicate Value $960,154 Indicate Value $934,754 9, 1 "y Calculate Loss in Value as Percentage $25,4001$960,154 =2.65% Total Commercial Value in Reading $311,122,900 Loss in Value as Percentage 2.65% Loss in Assessed Value in Reading $8,244,757 Estimated FY 2012 Tax Rate $14.15 Loss in Commercial Tax Revenue $116,663 20 Significant Changes in Reading Resulting from:Split Rate w w Ndo 1) Reduces the Share of the Tax Levy Paid by the Reading Residential Owners 2) Results in a Loss of Commercial Value and Compounding Benefits 3) Difficult to Return to Single Rate Once Split Rate is Implemented 4) Lower Split Rate Factors Tend to be Insignificant. Due to Low Reading CIP Ratio 21 Town Clerk Memo To: Board of Selectmen Peter Hechenbleikner From: Laura A Gemme, Town Clerk Date: November 3, 2011 Subject: 'Elections As you are aware the 2012 Election dates are scheduled as follows: March 6, 2012. Presidential Primary April 3, 2012 Local Town Election September 18, 2012 State Primary November 6, 2012 Federal and State Election with the possibilities of the September State Primary moving to earlier in September or late August. Please note: There is still a very small chance that the Presidential and. State Primary will be moved to June. I would like to recommend moving the Local Town Election to March 6th allowing the Presidential Primary and Local Town Election to be held on the same day. This would benefit the Town by: Saving the Town of Reading around $7000.00 Less disruption to the RMHS Higher voter turn out for the Local Town Election Ease voter fatigue 34 The tables below will show the deadlines for the Local Town Election... Local Town Election - March 6th Nov Jan Fe b Mar 21 12 17 2 55T 28 2 5 6 Nomination Papers Available From Town Clerk Last Da To Obtain Nomination Papers Last Day To Submit Nomination Papers To Registrars Of Voters For Certification Last Da To Object Or Withdraw ` Last Da To Register To Vote Last Da To Post Or Publish Warrant - Election Town Meeting Warrant Closes Last Da To Test Machines Last Da To Acce t Absentee Ballot Applications - Noon Town Election Local Town Election - April 3rd Dec Fe b Mar Apr 19 9 14 28 1 14 27 30 2 3 Nomination Papers Available From Town Clerk ' Last Da To Obtain Nomination Papers - Last Day To Submit Nomination Papers To Registrars Of Voters For Certification Town Meeting Warrant Closes Last Da To Object Or Withdraw Last Da To Register To Vote Last Da To Post Or Publish Warrant - Election Last Da To Test Machines -Noon Last Da To Accept Absentee Ballot Applications Town Election ~GZ 35 Draft -Outilrne for-Selectman's-1-1=8=1-1-Meeting with Liquor Licensee's Introduction: Chairman Camille Anthony ® Concern about substance abuse in general in the community o High profile-situations involving substance abuse this summer and fall in the community ® 3.part community dialogue on substance abuse and violence in the community ® Grave concern about the increase in sale of alcohol to minors this year ® The Board of Selectmen wanted the liquor license holders in before the Board of Selectmen so we can express to you what our expectations are for your continued operation as a licensee in this community. Reminders: Selectman ® Reading has mandatory training for licensees, managers, servers, and "principal representatives" - meaning someone acting on the licensee's behalf, of licensed establishments. ® All servers must be trained within 90 days of starting employment. ® Staff must be trained not to serve alcohol to minors and to follow appropriate procedures. o Licensees must monitor service to all patrons to avoid over serving to reduce the risk for impaired driving. ® If servers are TIPs trained, employees must renew their TIPs certification every 3 years. RCASA Director Erica McNamara is a TIP's trainer and will schedule a TIPs training upon request, please contact Julianne DeAngelis, RCASA Outreach Coordinator at 781.942.6756 or jdeangelis(a-) ci.read ing.ma.us Local Enforcement Information: Selectman ® Reading Police officers have been trained on alcohol compliance regulations. ® Reading Police regularly conduct alcohol compliance checks to ensure all guidelines are being followed. ♦ Police Supervisors are "agents of the Local Licensing Board" ® All businesses with liquor licenses are required to report any illegality that occurs on the premises to Police. ® A notice is published annually in the local papers regarding alcohol compliance operations. Status of Local Compliance Rates: Rates of Alcohol Compliance: Reading, MA Percentage of Number of Licensed Number of Number of underage Establishments that Compliance Licensed sales to failed Compliance Calendar Year Checks Establishments operative Checks 2008 20 20 3 15% 2009 21 21 0 0% 2010 23 23 0 0% 36 State Enforcement Information: Representatives from the MA ABCC may also conduct random alcohol compliance checks. They also follow-up on complaints. In 2009, the MA ABCC investigated 475 complaints from 150 cities/towns. Investigators observed approximately 1,800 violations of the Liquor Control Act and documented 2,400 OUI reports. In Mass statistics indicate that 50% of people arrested for OUI had their last drink at a licensed establishment. - MGL Chapter 90 §24J requires that: "In m operating a motor vehicle under the influe inquire of the defendant, before sentencing, prior to his violation." sry case of a conviction to a violation of ice of intoxicating liquor, the court shall regarding whether he was served alcohol Conclusion - Selectman Steve Gold y, also a Board member and Vice Chairman of the Reading Coalition Against Substance Abuse (RCASA) ® Licensees need to provide responsible beverage service at all levels from management to server s Licensees need to provide workplace support and education around substance abuse issues (RCASA can help!) Licensees should keep up to date on RCASA activities through subscribing to the RCASA newsletter ® If the rate of service to minors in Reading does not abate, the Board of Selectmen is going to have to look at more severe penalties, which could include less leniency on when license suspensions are done, and perhaps more prominent notice to the public when a licensee has been found to have violated policies or laws. s~z 37 Nu-m-ber of Liquor Licenses-b-y-Categor-y - Cate or 2008 2009 2010 2011 Retail Package Goods Store License 5 4 5 5 Restaurant License - All Alcoholic 9 9 12 12 Restaurant - Wine and Malt 2 4 2 1 Club License 4 4 4 4 Total 20 21 23 22 38 ~~5 Excerpts from Reading Liquor Rules and Regulations 3.2.7 - Enforcement 3.2.7.1 Licensees violating applicable laws of the Commonwealth of Massachusetts, rules or regulations of the Alcoholic Beverage Control Commission, and/or of the Town of Reading Liquor Policies shall be subject to the following range of penalties: Offense Penal 1" Offense . Warning to three days suspension 2" Offense Three days to six days suspension 3r Offense Six days to 12 days suspension 4t Offense Show cause hearing for license revocation The term "Offense" is defined as one violation of Massachusetts General Law, Chapter 138, and/or one violation of the Massachusetts Alcoholic Beverage Control Commission Rules and Regulations 204CMR, and/or Town of Reading local licensing regulations and any other law or regulation of the Town of Reading. Examples of criteria to invoke penalties are based on the following: ® Severity and type of offense ® Number of prior offenses The penalties are only a guide. The Licensing Authority may use its discretion in determining whether the facts surrounding a violation warrant a penalty which is more lenient or sever than that suggested by the guidelines. The penalties shall not be construed as to limit the Licensing Authority's ability to consider alternative dispositions or further conditions on a license, or even alternative penalties (e.g. rolling back of the licensees operating hours, suspension of the licensee's Common Victualers license, and/or suspending the licensee's entertainment license.) 3.2.7.2 - Access to Premises by Police and Agents It shall be the responsibility of the licensee to ensure that procedures are in place, by posting a doorman or otherwise, to allow Police and authorized agents of the licensing Authority immediate entrance into the premises at any time employees are on the premises. Any delay in providing such access shall be cause for action against the license. 3.2.7.3 - Posting of Notice Whenever the Licensing Authority warns a licensee or suspends the license or licenses of any licensee, the Licensing Authority shall provide the licensee with a sign containing the words "Closed by order of the Licensing Authority for the Town of Reading," or "warning issued by the Licensing Authority of the Town of Reading" and stating the reason for the warning or suspension. This sign shall be attached by the licensee on the inside of a window in a location designated by the Licensing Authority which location shall be visible from the outside of the licensed premises in a conspicuous place during the entire period of such-waming or suspension. Sa'~ 39 2.3.1 Human Relations Advisory Committee There is hereby established by the Board of Selectmen a Human Relations Advisory Committee. The Human Relations Advisory Committee shall provide advice to the Board of Selectmen on how the community can encourage an environment of tolerance, understanding and harmonious racial, ethnic, religious, cultural and gender relations within the Town and among its citizens, prevent discrimination or the perception of discrimination on the basis of color, age, gender, religion, disability, culture, national origin, ancestry or sexual orientation within the Town or among its inhabitants, and enhance its ability to mediate differences arising from the aforesaid relations. The Human Relations Advisory Committee shall: ® Engage in out-reach to such groups which may have suffered from or been the object of such discrimination, or may perceive themselves to have been the object of the same; ® Provide a safe place where individuals or groups may air their concerns or complaints as to the existence of such discrimination, or where concerns as to the potential existence of such discrimination within the Town or community at large or the perception thereof may be discussed; ® Identify perceived problems of such discrimination or human relations conflicts within the Town, and be a resource or referral agency to assist the parties or mediate among the parties so as, to the extent possible, permit the resolution of the same at the local level; ® Promote and encourage understanding, tolerance and diversity and the recognition of human and civil rights in the Town and community, and sponsor educational programs and the celebrations of events for that purpose. The Human Relations Advisory Committee shall consist of seven (7) members appointed by the Board of Selectmen, unless another means of appointment is indicated. Members shall reside in the Town or have their place of business in the Town. Membership on the Human Relations Advisory Committee shall include the following: ® One member shall be a member of the Board of Selectmen or its designee, ® One member shall be the Chief of Police or his/her designee, ® One member shall be designated by the School Committee, ® The remaining four members shall be appointed by the Board of Selectmen and, to the extent possible, shall be a diverse group which may include representatives from the following fields: 0 A business owner other than the real estate business or a business association; 4 A representative of a real estate business or association; o A representative of the Reading Clergy Association. The Committee may invite to serve as non-voting members such voluntary consultants in the field of human relations or human, rights as it may choose from time to time. The Town Manager may assign a staff liaison representative to the Human Relations Advisory Committee and arrange for staff support. 2-4 Board of Selectmen Policies 40 -5 e.l The Committee. shall be advisory to the Board of Selectmen and shall report at least annually to the. Board of Selectmen on policy issues. The Committee shall administratively fall within the Police Department. Adopted 2-13-01, Revised .7--22-0, Revised 12114, 04 2-5 Board of Selectmen Policies 41'~ APPOINTMEN'T'S TO BECOME EFFECTIVE NOVEMBER 39 2011 Human Relations Advisory Committee Term- 3 years Appointing Authority: Board of Selectmen Present Member(s) and Term(s) Vacancy Monique Pillow Gnanaratnam Charles McDonald (BOS) Lori Hodin Margaret LeLacheur Vacancy (School Com.) James Cormier (Police) Candidates: 2 Vacancies Orig. Term Date Exp. ( 2014 873 Main Street (08) 2012 41 Canterbury Drive (03) 2012 385 Summer Avenue (07) 2013 47 County Road (09) 2013 ( ) 2014 15 Union Street (05) .2013 42 S~3 READING ICE ARENA AUTHORITY, INC. 51 SYMONDS WAY READING, MA O 1867 October 19, 2011 Reading Board of Selectmen c/o Peter I. Hechenbleikner, Town Manager Town Hall 16 Lowell Street Reading, MA 01867 Re: Proposal to Lease the Nelson S. Burbank Ice Arena located at 51 Symonds Way, Reading, MA This is a proposal by Reading Ice Arena Authority, Inc. ("R.IAA") to enter into a long term lease with the Town of Reading, Massachusetts, acting by and through the Board of Selectmen, for the operation and management of the Nelson S. Burbank Ice Arena located at 51 Symonds Way, Reading, MA, by RIAA. As required by the Request for Proposal RFP") issued by the Town of Reading, we submit the following information: The. fall legal name of the proposer is Reading Ice Arena Authority, Inc., a. Massachusetts nonprofit corporation organized under Massachusetts General Laws Chapter 180. The address of the RIAA is 51 Symonds Way, Reading, MA 01867. The telephone number is (781) 942-2271. As a non-profit entity, there are no owners or partners. This proposal was prepared by William J. Jennings, President of R.IAA., with the assistance of O. Bradley Latham, Esquire, of Latham Law Offices LLC, acting as pro Bono legal counsel. The Reading Ice Arena Authority, Inc. agrees to all terms and conditions outlined in the Town's Request for Proposal. The proposal being made by the RIAA includes this letter and the affixed pages, which are incorporated herein. Respectfully Submitted, Reading Ice Arena Au~hority, Inc. By - William ennin , its President Page 1 of 16 43 5~~ Qualifications RIAA has extensive experience in the operation of the ice skating arena. It has operated the Nelson S. Burbank Ice Arena located at 51 Symonds Way for 18 years for the benefit of the Town. Over the last ten years, as a consequence of its operation of the arena, the RIAA has paid to or for the benefit of the Town over one million, six hundred thousand dollars ($1,600,000). It is intimately familiar with the facility and how to operate it. It understands the need of the Town and its skating groups and can work well with those interests. The RIAA has a competent staff with extensive experience in rink operation and management and in the day to day operations of the facility. It has a good working relationship with the Town's rink users. In addition to providing cash payments to the Town, the RIAA has shown its commitment to the Reading community by benefiting local youth sports and citizens; some of those benefits are stated on Exhibit A. The RIAA has sufficient liquidity. It also owns equipment to run the facility, including self-propelled ice resurfacing- equipment. It does not have any significant debt. Audited financial statements have been provided to the Town annually. The RIAA is a nonprofit corporation that was. formed in 1992 under Massachusetts law. It is in good standing with the Connmonwealth of Massachusetts. It has been determined by the Internal. Revenue Service to be qualified under section 501(c)(3) of the Internal Revenue Code. A copy of the IRS determination letter is attached and marked Exhibit B. A listing of the board of directors and officers of the RIAA is attached as Exhibit C. All of officers and directors are Reading residents. A Corporate Vote of RIAA authorizing its President to make this Proposal is attached and marked Exhibit D. The RIAA has had a 19 year lease relationship and rental payment history with the Town. There have not been breaches or defaults. The RIAA has operated with dedication, competence, honestly and transparently. Proposal The proposal made by the RIAA is to lease the premises covered by the RFP on the following terms and conditions: 1. Tenant: The tenant would be the Reading Ice Arena Authority, Inc. 2. Use: The premises shall be used only for an ice skating rink arena for ice skating and related activities and for accessory uses, including a snack bar and skate shop incidental to the primary use of ice skating and for such additional uses as may be allowed by the Board of Selectmen. Page 2 of 16 44 3. Term: The lease would be for an initial term of ten (10) years, with two options in the tenant to extend the lease term for up to ten years each. The term of the new lease would commence upon the expiration of the term of the current lease. 4. Rent: The rent to be paid by the tenant to the Town shall be calculated and based on the following: First, the gross income received by the tenant shall be used first to pay operating costs and expenses for the rink. Second, the remaining income shall be used to establish and replenish a contingency reserve to be held by the tenant. The contingency reserve shall be established for the purpose of covering significant repairs, capital costs and replacement and contingency costs and non-insured losses or liabilities. The contingency reserve funded by the tenant must be at least $100,000 at the time of the lease signing. Thereafter, the contingency reserve shall not exceed $300,000 at any given moment.without the permission from the Board of Selectmen. Nevertheless, the $300,000 cap shall increase to reflect increases in the consumer price index from the date of the lease. Third, income then remaining shall be paid to the Town of Reading, Massachusetts, as rent. Amounts due to the. Town shall be paid annually. 5. Other Town Benefits: The current method of preference of usage by Reading residents will continue. 6. Utilities: The tenant shall pay for all utilities consumed at the premises as part of operating expenses. 7. Insurance: The tenant shall, at its own expense and as part of operating expenses, maintain public liability and property damage insurance covering the leased premises, insuring the tenant and the Town against any and all loss or claims arising out of the tenant's use of the premises and all operations of the tenant, wherever located, including the skating rink, parking area and access ways, and all other facilities or areas used by the tenant under the lease agreement, or from any act or omission of the tenant, its agents, servants, employees, or permitees. The public liability, insurance shall be appropriately endorsed for contractual liability under this paragraph, in an amount not less than $1,000,000 per occurrence with a general aggregate limit of not less than $2,000,000. The insurer shall be licensed to conduct business in the Commonwealth of Massachusetts. The Town of Reading shall be named as an additional insured on the policy and it shall also be stated on the Insurance Certificate that this coverage is primary to other coverage the Town may possess. A Certificate of Insurance naming the Town as an additional insured shall be provided to the Town as required by the RFP. Performance under the lease will not commence until a valid Certificate of Insurance evidencing the requirements of this provision has been delivered to the Town. Property damage insurance proceeds shall be made available to the tenant to rebuild/repair/restore the building and improvements. The tenant shall obtain and maintain statutory workers compensation insurance. 8. Maintenance and Repair: The tenant shall maintain the premises in good condition. 45 Page 3 of 16 9. Improvements: The tenant may'make improvements to the premises, provided all required permits and approvals are obtained to do so and all such work shall be done in accordance with applicable codes and are done a good and workmanlike manner. 10. Quiet Enjoyment: The tenant shall have the right of quiet enjoyment of the premises during the lease tern and extensions. The tenant and its invitees may use Symonds Way for vehicular access between Haverhill Street and the premises. 11. No Discrimination: The tenant shall not unlawfully discriminate against any person on the basis of sex, sexual orientation, age, race, national origin, or religion. 12. Storage: The tenant shall accommodate storage for Reading Youth Hockey, Reading Youth Baseball and Reading.Senior Baseball. 13. Additional Terms: The lease shall contain and the tenant shall abide by such additional terms and conditions as are contained in the RFP. Completed Attachments This Proposal includes fully completed documents as are listed in the RFP under the heading titled, "Attachments", all of which are attached hereto and marked Exhibits E, F, G, HandI. Other Conditions RIAA. agrees to lease the property "AS IS" and agrees to be solely responsible for obtaining any and all permits, approvals, waivers, releases or any other requirements to occupy the property as proposed in the RFP. RIAA agrees that it shall not assign, transfer, sublet, convey or otherwise dispose of any lease which results from the RFP, or its right, title or interest therein or its power to execute the same to any other person, firm, partnership, company or corporation without the previous consent in writing of the Town. Said consent to be entirely at Town's sole discretion. Should the RIAA attempt any of the above without written consent of the Town, the Town reserves the right to declare the Proposer in default and terminate the contract for cause. It is agreed that all contract amendments must be in writing and approved and signed by the Reading Board of Selectmen and RIAA. RIAA is current in taxes and all other municipal obligations (i.e., water and personal property taxes) on any and all real estate owned in the Town of Reading. RIAA meets the following criteria: Page 4of16 46 J l . RIAA a non-profit entity, qualified as such by the Internal Revenue Service, with at least ten years of experience in the operation and management of-an ice skating arena(s). 2. All materials outlined in the section titled, "Submittal and Contents of Proposals" are attached. If it is selected as the tenant, RIAA is prepared to execute a lease within ninety days following the initial notice, to be effective upon the expiration of the term of the current lease. . The RIAA is prepared to execute releases to enable the Town to obtain information from third parties: Conflict of Interest and Collusion RIAA certifies that no relationship exists between the RIAA and any of its officers, employees, agents, or representatives and the Town of Reading, or any officer, employee, or agent of DCAM that constitutes unfair competition or conflict of interest or that may be adverse to DCAM. RIAA certifies that it has not acted in collusion with any other proposer or other entity doing business with the Town of Reading in a way that would constitute unfair competition. It is the intention that this Proposal be consistent with the Vote of the Reading Town Meeting authorizing the Board of Selectmen to lease the premises and that this Proposal be in conformity with the RFP, and the Proposal should be so construed. Respectfully Submitted, Reading Ice Arena Authority, Inc. By 11,1X].11 47 Page 5of16 ~ e' S EXHIBIT A RIAA QUALITATIVE BENEFITS TO TOWN OF READING 1. RIAA has provided FREE Meeting Room Space and Equipment Storage Space to Reading Non-profits Since 1994. Groups Include: a. Reading Youth Hockey b. Reading Youth Lacrosse c. Reading Youth Baseball d. Reading Senior Baseball e. Reading Youth Soccer 2. RIAA has hosted the Reading Lions Club Road Race Annually (at no Charge). 3. RIAA has provided ice rentals at no charge for: a.. Reading High School 2008 State Championship Celebration / Fundraiser b. North Shore Skating Club 2009 Skate-a-thon to Benefit Dana Farber Cancer Institute 4. Since 2000, RIAA. has provided a clean, lit parking area & restrooms for Symonds Way Field, which was built without any dedicated parking area. That field is used by: a. RHS Freshmen Baseball Games b. Youth Baseball Games c. Youth Soccer Games d. . Youth Soccer Clinic which was moved here due to parking Concerns elsewhere in Town 5. Since 2002, RIAA has had a written agreement with Town of Reading Health Department that the RIAA's Burbank Ice Arena will provide facility and labor for an emergency morgue in the event of a large loss of life in town. Homeland Security measure. 6. Since its inception, RIAA has lived up to all agreements with Symonds Way / Haverhill St. / Range Road neighbors. 7. RIAA have provided reasonably priced public skating sessions year-round. 8. RIAA maintains ties with the community and professional organizations. It is a member of the Reading / No. Reading Chamber of Commerce, Mass. Restaurant Association, Northeast Ice Skating Managers' Association and the Ice Skating Institute 9. RIAA has provided dedicated locker room space for Reading High School Boys' & Girls Ice Hockey teams. 48 Page 6 of l6 l0 10. RIAA has hosted annual New Year's Eve Bash for Children. For many years the Reading Firefighters Association co-hosted with RIAA. 11. RIAA engages and pays for Reading police details for high occupancy events. 12. RIAA hosts Reading Girls Scouts, Martin Luther King Day Skating Event Annually. 13. RIAA. hosts Reading Special Skates, Saturdays at noon for 18 weeks per year. 14. RIAA has provided cold storage for flowers for the American Cancer Society's Daffodil Days. % Page 7of16 S ~I 49 INTERNAL REMNUE SERVICE: GEPARTMENT OF THE TREASURY . '✓~tlI STFtIG-T-I7~IF:EGTOF7 G. P.(]. BOX 1.1)80 BROORLYK NY 11202 Gate:: p~~ ~ ~ ~1g92 REAM0 ICE ARENA AUTHORITY INC C/0.01AMA T BURNS GRAY GRAY GRAY 185 DEVONSHIRE STREET EOSTOM MA 02110 Employer Identification Number: Contact Mrson: VINCENT URGIUOLI Contact Telephone Number; COMMMEM 509 (a) (2) Advance Rul ing Period Begins: July 14, 1992 Advance Ruling Period Ends:: June 2% 1997 Addendum App I iE_s: 110 Accounting Period Eroding: June 0 Foundation Status Classification: Clear Applicant*. Eased an information you supplied, and assuming your operations Nil) be as stated in your application for recognition of exemption, we have determined you are exempt from federal income tax under section 501 (a) of the Iptern•al Revenue Cede as an organization described in section 501(c)(3). Because you are a newly created organ i zaticn, we are not nom making a f i na I determinaticn of your foundation status under section 509(ra) of the Code. However, we have determined that you can reasonably expect to be a publicly supported organization described in section 509(a) (20. Accordinglyn during an advance ruling period you will be treated as a publicly supported organization, and not as a private foundation. This advance ruling period begins and ends on the dates shown above. Within 90 days after the end of your advance ruling period, you must send us the information needed to determine whether you have met the require-- meuts of the applicable support test, during the advance ruling period. If you establish that you have been a publicly supported organ i z•at i on s we will classi- fy you as a section 509(a) (1) or 509(a)(2) organization as long as you continue to meet the requirements; of the applicable support test. If you do not meet the public support requirements d uri ng the advance ruling pe:ri odi we wi 1 I classify you as ea private foundation for future periods. Also, if we classify you as a'private foundation, we will treat you as a private foundation from your beginning date for purposes of section 507(d) and 4990. Grantors and contributors may rely on our determination that, you are not a private foundation until 90 days after the end of your advance ruling period., If you send us the required information raithin the 9() days, grantors and contributors may continue to rely on the advances determination until me make a final determination of your foundation status. 50 Letter 1046MOM) SF8 -A- READING ICE ARENA AUTHORITY .INC If we pub I Wh a notice in the Enterna i 30 nue but VMS stating that we wi 1 I no longer treat you as a pub 1 icily supported orgaaniza-tionl grantors and contributors may not rely on this determination after the date we publish the notice. In additions if you lose your status as a publicly supported organP zations and a grantor or contributor was responsible fur, or was aware oft the, act or failure to acts that resulted in your loss of such status, that person may not rely on this determination from the date: of the act or failure to act. AI soi if a grantor or contributor learned that we had given notice that you =could be removed from classification as a publicly supported organizations then that person may not rely on this determination as of the date he or she acquired such knowledge. If you change your sources of supports your purposes characters or method of operations please let; us know so we can consider the effect of the change on your exempt status and foundation status.. If you amend your organ i zationa l document or byla"ss please send us a, copy of the amended document or bylaws. Ai sou let us know all changes in your name or address. As of January 1 s 1904, you are liable for social securities taxes under the Federal Insurance Contributions Act on amounts of $109 or more you pay to each of your-employees during a calendar year. You are not I i ab le for the tax imposed under the Federal Unemployment Tax Act (FUTAY. Organizations that are not private foundations are not Abject to the pri- vate foundation excise taxes under Chapter 42 of the Internal Revenue Code. Howeverl you are not automatically exempt from ether federal excise taxes. If you have any questions about excises emp loyment1 or other federal taxesl please let us know. Donors stay deduct contributions to you as provided it section 170 of the Internal Revenue Code. Beque=sts, legacie_ss devises tran•sfe:rs'or gifts to you or for your use are deductible for Federal estate and gift tsar, purposes if they meet the applicable provisions of sections 20551 21061 and 252Z of this Code. Donors may deduct contributions to you only to the extent that their contributions are gif•tss with no consideration received. Ticket purchases and si mi tar payments in conjunction with fundraising events may not necessarily qua) ify as deductible ccmtritautionsl depending on the circumstances. Revenue Ruling 67-2461 published in Cumulative Bulletin 1967--21 on page 1041 gives guidelines regarding whet taxpayers may deduct payments for admission tut or ether participation imi fundraising activities for charity. Contributions to'you are deductible by donors beginning July 141 1992. You are not required to f i l e Form 990, Return of Organization Exempt. From Income Taxi if your gross receipts each year are normally $20000 or less. If you receive a Farm 990 package in the mails simply attach the Cabel provided, check the bar, in the heading to indicate that your annual gross receipts are normally 425 000 or 1 eses1 and sign the return. m Letter 1045(DO/CG) 51 _.3 -1 READING ICE ARENA AUTHORITY :[1qC If you are req u i rod to f i l e .a return you must f i l e it by the. 15th clay of the fifth month after the end of your annual accounting period. We charge a penalty of 510 a day Men a return is fi led late, unless there is reasonable cause f or the de I ay. Howevere the maximum penalty we charge: cannot exceed $5,000 or 5 percent of your dross receipts for the year, whicheveer is less. We may also charge this penalty if a return is not complete. So, please be surf? your return is complete before you file it. You are not required to file federal income: tax returns unless you are subject to the tax on unrelated business income under section 511 of the: Code. If you are subject to this taxi you must fi le an income tax return on Form 990-T, Exempt Organization Business Income Tax Return. In this letter we are= not determining "hether any of your present or proposed actbvities are uure- 1 a ted trade or business as defined in section 513 of the Code. You -need an employer ide_ntif ication number even if you have no employees. If an employer identification number was not entered on your app i ications we wi t t assign a number to you and advise you of it. Please use that number on al I returns you file and in all correspondence, with the Internal Revenue: Service. In accordance with section 5086) of the Codei the e•fferctivee date of this determination letter is July 16 1992. This determination is based on evidence that your funds are dedicated 'to the purposes; I isted' in section 501(c)(3) of the Code.. To assure your continued exemptions you should keep records to show that funds are spent only for those purposes. If you distribute funds to other organizationsi your records should short whether- they are exempt under section 501(c:) (3).. In cases where the recipient organis ation is not exempt; unde=r section 501(c) (3) a' you must have evidence that the funds will remain dedicated to the required purposes and that the recipient w i 11 use the funds for those purposes. If you distributes funds to individuzats, you should k0ep cases histories showing the recipients` namessi addresses" purposes of awards, manner of selec_- tioni and relationship (if any) to numbers, officers" trustees or donors of funds to you: so that you can substantiate upon request by the Internal Revenue Service any and all distributions you made to individuals. (Revenue Ruling 56-3041 C.B. 1956-21 page S06.) If we said in the heading of this letter that an addendum appl ie•si the addendum enclosed is an integral part of this letter.. Because this letter could help us resolve any questions about your exempt status and foundation st,atusn you should keep it in ;lour permanent record,. m Letter 1040QONG) 52 _-4- REWING ICE ARENA AUTHORITY INC If y,3u have any jjut:stjoTTs, plezise contact t:he person WhOse name and telephone number are •shmn ill the heading of -this iei;ter. Sincerely yours? E=ugen,_ 11. Alf_r,andcr E:1i str i ct: Director Enclosure (s) Fo rm 0? 2-1" Let-ter- 104(5 (00/CG) 53 EXHIBIT C The following are the board of directors and officers of the RIAA, all of whom are Reading residents: Title Individual Name PRESIDENT WILLIAM J. JENNINGS Address 64 MA 018 7 READING, , MA 01867 USA 51 ASHLEY PLACE TREASURER CLERK DAVID HUNTER DENNIS HUGHES READING, MA 01867 USA 72 VAN NORDEN ROAD READING, MA 01867 USA 60BLUEBERRY LANE DIRECTOR MARK DOHERTY READING, MA 01867 USA 26 HOLLY ROAD DIRECTOR NANCY GRAHAM READING, MA 01867 USA ELD STREET DIRECTOR CARL MCFADDEN 33 WAKEFI READING, MA 01867 USA 1105 COLONIAL DRIVE DIRECTOR ROY BENJAMIN READING, MA 01867 USA 54 Page 8 of 16, EXIT BIT D CORPORATE VOTE READING ICE ARENA AUTHORITY, INC. W At a special meeting of the Board of Directors of the Reading Ice Arena Authority, Inc., a nonprofit corporation, notice of which was duly given or waived, held at 51 Symonds Way, Reading, Massachusetts, on October Z, 2011, at which a quorum was present, it was moved, seconded and unanimously carried as follows: VOTED: That William J. Jennings, as the President of the Corporation, is hereby authorize and directed to sign and submit a Proposal and related certifications, disclosures ai other documents to the Town of Reading, Massachusetts, in response to a Request I Proposals as issued by the Town for the lease of the Nelson S. Burbank Ice Are located at 51 Symonds Way, Reading, MA, such Proposal to be substantially on t terms stated in the attached Proposal; and to negotiate such a long term lease and if t Corporation is successful in negotiating a lease with the Town to execute a lease w the Town and to take any and all additional action that the President deems necessary appropriate in that regard. Undersigned, as the Secretary of the Corporation, hereby certifies that the foregoing is a true accurate vote of the Corporation, that such vote remains in full force and effect and that Will J. Jennings is the President of the Corporation, duly elected, qualified and authorized. c9 ~ a ea-r- 17 2011 Dennis Hu:4~ferk/Secretary BID FORM - 51 SYMONDS WAY TOWN OF READING BID PRICE FORM FOR LEASE OF PROPERTY DESCRIBED IN THIS RFP Total Bid: The amount of monetary benefit to the Town is stated below. There are other non-monetary benefits as outlined in the Proposal, to which reference is made for more details. Bid Dollar Amount in Writing: The amount of monetary benefit to the Town is stated below. READING ICE ARENA AUTHORITY, INC. SIGNATURE OF BIDDER: By as President ---a ~ NAME OF BIDDER: READING ICE ARENA AUTHORITY, INC. DATE: OCTOBER 19, 2011 The amount to be paid to the Town as rent shall be based on the following: Gross income received by the Lessee shall be used first to pay operating expenses for the rink. Second, the remaining income shall be used to establish and replenish a contingency reserve to be held by the Lessee. The contingency reserve shall be established for the purpose of covering significant repairs, capital costs and replacement and contingency costs and non-insured losses or liabilities. The contingency reserve funded by the Lessee must be at least $100,000 at the time of the lease signing. Thereafter, the contingency reserve shall not exceed $300,000 at any given moment without the permission from the Board of Selectmen. Nevertheless, the $300,000 cap shall increase to reflect increases in the consumer price index from the date of the lease. Third, income then remaining shall be paid to the Town of Reading, Massachusetts. Amounts due to the Town shall be paid annually. 56 Page 10 of 16 ` VI S DISCLOSURE STATEMENT FOR DISPOSITION OF REAL PROPERTY For disposition of Real Property by the Town of Reading, the undersigned does hereby state, for the purposes of disclosure pursuant to Massachusetts General Laws, Chapter 7, section 40J, of a transaction relating to real property as follows: (1) LEGAL DESCRIPTION OF REAL PROPERTY: 51 Symonds Way, Reading, MA The proposed property for lease is located at 51 Symonds Way in the Town of Reading. The property, available for disposition through this RFP, is 4.45 acre parcel as shown on Assessors Map 41, Lot 54 with a Registry of Deeds reference of Book 11189, Page 431. The total land area is approximately 4.45 acres with a 72,646 s.f. building.. (2) TYPE OF TRANSACTION: Lease of Property (3) SELLER or LESSOR: Town of Reading, Massachusetts (4) BUYER or LESSEE: Reading Ice Arena Authority, Inc. (5) Names and addresses of all persons who have or will have a direct or indirect beneficial interest in the real property described above: NAME RESIDENCE Ed Peduto, but only in his capacity as an employee (Rink General Manager) of the Lessee, with a residence of 311 Lowell St., Wakefield, MA (6) None of the above mentioned persons is an employee of the Division of Capital Asset Management or an official elected to public office in the Commonwealth except as listed below. Name & Position Title: NONE (7) This section must be signed by the individual(s) or organization(s) entering into this real property transaction with the public agency named above. If this form is signed on behalf of a corporation or other legal entity, it must be signed by a duly authorized officer of that corporation or legal entity. The " Page 11 of 16, l 57 undersigned acknowledges that any changes or additions to items 3 and or 4 of this fonn during the term of any lease or rental will require filing a new disclosure with the Division of Capital Asset Management and Maintenance within thirty (30) days following the change or addition. The undersigned swears under the pains and penalties of perjury that this form is complete and accurate in all respects. Signature: Print N me: Wil iam J. Jennings Title: President, Reading Ice Arena Authority, Inc. Date: October 19, 2011 58 Page 12 of 16 Fib Massachusetts Tax Compliance Statement TO: Town of Reading Town Hall t6 Lowell Street Reading, MA 01867 FROM: Reading Ice Arena Authority, Inc.c~ I certify under the penalty of perjury that the above named organization of person, to the best of my knowledge, has filed all State tax returns and paid all State taxes required under law. Reading ke'Arena tuthority, Inc. SIGNED THIS DATE ; October 19, 2011 BY. Name: %Aam J. Title: President *Note: Your Federal Identification number will be furnished to the Commonwealth of Massachusetts - Department of Revenue to determine whether all tax filing and tax payment obligations have been met. Under Mass. G.L.C. 62C; §49A, Proposers of goods or services who fail to correct a tax filing or tax payment delinquency will not have a Contract or other agreements issued, renewed or extended. Page 13 of 16 59 CERTIFICATE OF NON-COLLUSION The undersigned certifies under penalties of perjury that this bid or proposal has been made and submitted in good faith and without collusion or fraud with any other person. As used. in this certification, the word "person" shall mean any natural person, business, partnership, corporation, union, committee, club, or other organization, entity, or group of individuals. Reading Ice Arena Authority, Inc. By (Signature of i ing bid or proposal) as President Reading Ice Arena Authority, Inc. (Name of business) 60 Page 14 of 16 5~1 EQUAL OPPORTUNITY EMPLOYER CERTIFICATION TO: Town of Reading Town Hall 16 Lowell Street Reading, MA 01867 FROM: Reading Ice Arena Authority, Inc. We certify under the penalties of perjury that the above named organization or person and will continue to )erate in strict compliance with the following Equal Opportunity Employer Regulations: No person in the United States shall, on the basis of age, be excluded from participation in, be denied the benefits of, or be subjected to discrimination from receiving Federal financial assistance. The Contractor shall comply with the provisions of the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.). The Age Discrimination in Employment Act prohibits arbitrary age discrimination in employment. The Contractor shall adhere to the requirements set forth in Title VI of the Civil Rights Act of 1964 (Public Law 88-352), and the regulations issued pursuant thereto by HUD (24 CFR Part 1); Title. VIII of the Civil Rights Act of 1968 (Public Law 90-284), as amended; Section 109 f` the Housing and Community Development Act of 1974, and the HUD regulations issued pursuant thereto (24 CFR 570.601); Federal Executive Order 11063, as amended by Executive Order 12259 and the HUD regulations issued pursuant thereto (24 CFR 107); Executive Order 11246 and the rules, regulations and relevant orders of the U.S. Secretary of Labor, if applicable; The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.); Section 402 of the Veterans of the Vietnam Era Act (for projects of $10,000 or more). Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); Massachusetts General Laws Chapter 151B, section 1 et seq.; State Executive Order 74 as amended and revised by Executive Orders 116, 143 and 227, and EOCD regulations, procedures or guidelines; Title II of the Uniform Relocation Assistance and Real Property, Acquisition Policies Act of 1979; and EOCD guidelines, procedures or regulations. The Contractor shall not discriminate against any employee or applicant for employment because of race, -lor religion, sex, age, handicap, or national origin. The Contractor shall take affirmative action to ensure .at applicants for employment are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, age, handicap, or national origin. Such action shall include, but not q Page 15 of 16 61 I)e limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment dvertising: layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor shall post in conspicuous places, available to employees and applicants for employment, notices setting forth the provision of this non-discrimination clause. The Contractor shall state in all solicitations or advertisements for employees placed by or on behalf of the Contractor, that all qualified applicants will receive consideration for employment. without regard to race, color, religion, sex, age, handicap, or national origin. The Contractor shall incorporate the foregoing requirements of this paragraph in all contracts for work to be performed in accordance with this Contract and will require all of its subcontractors to incorporate such requirements in all subcontracts for program work. Signed this date: October 19, 2011 Reading Ice Arena Authority, Inc. By: as President Name: William J. Jennings Title: Authority, Inc. ~ Page 16 of 16 2v 62 Section 6.2 - Evaluation of the Town Manager Since the position of Town Manager is of great importance in establishing the direction of Town Services, the Board of Selectmen formulates through this policy a process for evaluating the performance of the Town Manager at two levels: 1. Annual establishment of the Town Manager's goals for the coming calendar year. 2. Annual evaluation of the Town Manager's overall performance as defined in the role description for the position and in meeting established objectives. 6.2.1- Goals Prior to the end of the calendar year, the Town Manager shall submit in writing to the Board for discussion and mutual approval, a list of annual 'key goals that reflect the Town's needs and priorities. The Town Manager will then establish, with Department Heads, the specific objectives and work plan to accomplish the agreed upon goals. During the year, normally at three-month intervals, there will be open sessions of the Board during which the Town Manager shall report progress in achieving the goals and objectives and receive feedback from the Board. 6.2.2 -Annual Evaluation The annual evaluation of the Town Manager's overall performance shall be based on the role description for the position and the achievement of goals and objectives that had been previously agreed upon. The' evaluation shall cover the previous year's performance. With input from the Town Manager, the Board shall establish a role description for the position of Town Manager which may be reviewed from time to time at the request of either the Board or the Manager. When changes in items on the role description are made by the Board, the Town Manager shall be given at least six months to demonstrate performance on the changed item before an evaluation on that issue is made unless the Manager and the Board agree otherwise. An evaluation subcommittee, appointed by the Chairman, shall initiate the annual. evaluation process late in each year by distributing to each Board member and the Town Manager: ® a copy of an Annual Evaluation Form, ® the current years goals and objectives and current progress reports from the Town Manager and ® the previous year's Evaluation Report. Each Board member and the Town Manager shall submit the completed evaluation form to the subcommittee within four weeks. The subcommittee will then prepare a composite of the Evaluation Reports and submit this to the Board of Selectmen and Town Manager for presentation and discussion in a regular session of the Board of Selectmen. The Board will take into consideration the Town Manager's overall performance and progress in meeting the annual key goals and objectives in establishing the Town Manager's salary for the following year beginning July 1. A copy of the Annual Evaluation Report is to be placed in the Town Manager's personnel file. Adopted 12-13-94, amended November 1, 2005 6-4 Board of Selectmen Policies r ' 63 J TOWN MANAGER EVALUATION Manager Name: Peter Hechenbleikner Evaluation for the period: CY 2010 Evaluator: Selectmen GOALS AND OBJECTIVES DURING THIS EVALUATION BOARD OF SELECTMEN RATING, RATING SCALE FROM PERIOD 1(LOW) - 5 (HIGH) Goals and Objectives JB CA RS BT SG Average Development 4.00 5.00 5.00' 4.50 5.00 4.70 Personnel 3.00 4.00 5.00 4.00 3.00 3.80 Finance 4.50 5.00 5.00 5.00 5.00 4.90 operations 4.00 5.00 5.00 4.50 4.00 4.50 Services 3.50 4.00 4.00 5.00 3.50 4.00 Policies and Procedures 3.50 4.00 5.00 4.50 5.00 4.40 3.75 4.50 4.83 4.58 4.25 4.38 ACHIEVEMENTS, ACCOMPLISHMENTS, AND RESPONSIBILII IES (compierea oy employees Fully completed 22 of 48 goals established in January 2010, with major progress on 11 others. The following is a synopsis of mayor accomplishments in 2010: Development Affordability of Cedar Glen housing complex, potentially expiring in 2010, was extended in perpetuity Downtown Smart Growth zoning approved, $350,000 in State Funding secured and in the stabilization fund, and the first application - Oaktree - is approved and expected to begin construction in the winter/spring of 2011 Peter Sanborn Place expansion of 50 affordable housing units is moving forward Addison Wesley Pearson property is pending sale to Pulte Homes for 425 units of housing including Gateway Smart Growth (40R) district, age restricted housing, and non age restricted housing - site demolition expected winter 2011, with site construction beginning in the spring of 2011. Continue to advocate for redevelopment of MF Charles building and Lynch building in downtown. Completed sign Inventory; completed analysis of sign conformance with sign bylaw; Town Meeting approved several amendments to the sign bylaw; "friendly" enforcement begun. Wayfinding sign recommendations complete Some minor "tweaks" made to downtown parking regulations Reviewed possible quality designs for bus shelters - 2 priority locations selected (Salem Street at Baystate Road and Walkers Brook Drive at Newcrossing Road) - pending funding • 15 additional bike racks ordered and delivered under grant, to be installed winter/spring as conditions allow Progress being made under Reading's leadership - on the availability of "Green Community" designation by communities served by Municipal Light Departments - potential legislation required • Performance Contracting for public buildings almost complete Ad hoc Municipal Building Committee formed - final draft report being finalized Initial progress on addressing Library building maintenance and space needs - continue to move forward with developing a project that will be eligible for state grant funds 64 567, • Mattera Cabin - progress being made, with completion early 2011. • Memorial Park construction complete Washington Park and Killam playground complete; Joshua Eaton Master Plan complete and adopted; Barrows site Master Plan begun; Landscape architect for Birch Meadow hired. • Major progress made on trails - volunteer build, supported by a state grant for materials - in the Bare Meadow area Personnel Completed all labor negotiations with all goals for negotiations having been met • Health insurance reviewed and renewed • Disability Insurance reviewed and presented to Public Employee Committee Finance • Completed all labor negotiations with all goals for negotiations having been met • Used less than $1M in cash reserves to balance the FY 2011 budget - cash reserves restored to just about 2010 ending levels - +8% of budget • Secured almost $2 million in new funding to the community for a variety of purposes Operations Successfully implemented process of phasing out snow plowing at churches Reviewed sidewalk snow plowing / removal policy • Executed an extension of the rubbish disposal contract under very favorable terms Added new MUNIs software modules - 7.4 update and Ambulance Billing • Made major progress on records management in Town Manager's and Town Clerk's offices • Completed Continuity of Operations (COOP) plan for emergency management for all Town and School operations • Completed evaluation of regional public safety dispatch operations - study is being reviewed by all 4 communities. and the.Sherriff's office • Healthy Reading initiative started Services Implemented Customer Service policy and action plan Developed needs assessment and analysis for licensing and permitting software Developed major changes to rubbish and recycling program and implemented the changes community-wide Policies and Procedures • Sign Bylaw. amendments approved • Section 6.3 Zoning Bylaw amendments approved • Junk bylaw regulations completed - Board of Selectmen decided not to implement • Earth Removal bylaw drafted - not action on proposing to Town Meeting S~ 3 65 • Comprehensive review and recodification of General Bylaws has begun in working with Town Clerk, Town Manager, Bylaw Committee, and Town Counsel. • LIP regulations amended by Board of Selectmen EVALUATION (aggregate average rating for goals) SELECTMEN COMMENTS - - RICHARD SCHUBERT Development over the last year has been amazing, especially when considering the current economy. Pete and staff (while not perfect) have significantly advanced the goals of our community. Personnel - Still some work to be done addressing perceived versus actual customer service, but overall, good results have been realized. Pete has been successful in managing labor contract negotiations and staff salaries during these especially difficult budget years. Finance - Working on its own and jointly with the School Department, the Town has greatly benefitted, from numerous grants that were aggressively and creatively pursued over the last year. Operations - The new trash/recycle contract has been a great success in the eyes of our residents; several other expressed concerns of the Board, Town Meeting and residents have been addressed and resolved successfully establishing new procedures for delivering services (snowplowing church parking lots, further implementation of MUNIs, upgraded reverse 911 system.) The MWRA water main break / community emergency last Spring was handled extremely well. Services - This is and will continue to be the most'challenging area, meeting an increasing demand for the quality and quantity of services while budgets and staff are being reduced. The complex customer service issue (again, perceived versus actual) is starting to be examined and understood figuring out the right balance will be key in the next year. The job of Town Manager never gets easier, there's always a need to reevaluate, rethink and creatively deliver the services expected of local government in Reading. Pete continues to exhibit the energy, flexibility and collaboration- building that is necessary to move our community forward. And another great, growing, successful Reading Fall Street' Faire l JAMES BONAZOLI Development - Despite the down turn economy I believe Reading has done and the team continues to find new avenues. Personnel - Although labor negotiations was a terrific success I believe managing personnel continues to be a challenge.. This is ongoing and recognize it will take time. Finance - This is an area of strength for Pete and the town. The negotiations of contracts and health benefits has allowed us to fair much better than any other community. Operations - Operations has made good progress over the last year and half. Services - The trash contract is a great win for 2010. We need to be forever vigilant on customer satisfaction and how we can improve everyone's experience in working with the Town. Policies and Procedures - Although we have started peeling back the onion on our policies and procedures we have a long way to go. I believe half the problems we have in regards to customer service is due to our on charter and by- laws. SGd 66 STEPHEN GOLDY Excellent work on finance and 'development. The budget is under control but more importantly the expenses are kept to acceptable levels. The economic development in Reading is moving along at a great pace thanks to Pete's hard work and persistence. Pete works very. hard and is successful in securing state construction funding for infrastructure which enhances the attractiveness of the flown. Pete needs to consistently push back on staff to correct the perception that Reading town hall is a hard place to do business for both commercial and residential customers. Implementing the customer service policies is a great first step in the services category. Pete needs to work hard to have all staff meet the requirements of these policies as well as make them a consistent part of all interactions :'BEN TAFOYA Overall, Pete Hechenbleikner continues to do an excellent job managing the municipal operations of the Town of Reading. Even while having served in the role of Town Manager for well over 20 years, he continues to innovate and provide a high level of management. We are in the midst of extremely challenging financial times and Pete's leadership has proven critical to maintaining town operations at the level expected by residents of the community. Finance is an area where we have a very strong team and expect continued great things. In addition to Finance; Development is an area of important dynamism for the town. The continued progress toward start of construction on the Oaktree project is a positive sign for the community; as or the proposals at Peter Sanborn Place and the Pearson property. Reading's reputation is growing as a strong market for goods and services. We are able to maintain a high level of service delivery. We expanded the support for the street faire and other citizen organized events. The study regarding regional dispatch is a positive development and we need more initiatives to efficiently and competently deliver services on a regional basis. Operations have been marked by lack of resources in many areas. We need to increase resources particularly for roadways. It would be helpful to have measures in place to see how productive we are using existing monies. We make efficient use of resources in recreation, engineering and public works. Strong labor relations remain a hallmark of Pete's tenure. The ability to communicate openly with staff is critical at this time of shared sacrifice. Timely completion of contracts on a sustainable basis marked excellence in the area of personnel. However, performance of all staff needs to be at the same level and with the same commitment to customer service as the Town Manager. Pete has an excellent grasp of the importance of Policies and Procedures. His work in trying to accommodate concerns of the BOS regarding the implementation and modification of the sign by-laws is appreciated. It would be god for the town for Pete to have the resources to complete the proper review of the general and zoning by-laws in the near future. CAMILLE ANTHONY This past year was a very busy one for the Town Manager as the departments had many. important initiatives that required his attention. Economic Development was certainly an area of continuing motion this past year. Considering the state of the national economic condition, Reading has been very fortunate to have a significant number of new businesses and large developments establishing their roots in the community. In addition, the successful labor negotiations were a huge endeavor which required hours of discussion and patience and will hopefully help Reading remain financially stable in the difficult funding years we are encountering. The implementation of the new rubbish contract was a huge success. The reduction of waste through recycling and more public education is meeting both a financial and an environmental goal. Reading is on its way of moving to the state's mandate of 60% recycling. The goals to be completed this year were numerous, too numerous to be completed. Great strides have 67 been made and the next year should see many more fulfilled. The one area that needs to be more fully addressed next year is the process for helping businesses, new and existing, maneuver through the many regulations of the town. For too many years the process has been too cumbersome and is still in need of being streamlined. In retrospect, we can be proud of the strides that have been made under Peter's direction last year. We have been fortunate to have an able administrator who is deeply committed to the community and its success. Peter I. Hechenbleikner James Bonazoli, Chairman Date s~('0 68 Board of Selectmen Meeting. October 12, 2011 The meeting convened at 7:40 p.m. at the Senior Center, 49 Pleasant Street, Reading, Massachusetts. Present were Selectmen Camille Anthony, Ben Tafoya and James Bonazoli; Finance Committee members Marsie West, Marie Ferrari, Hal Torman, Paula Perry, Mark Dockser, David Greenfield, Barry Berman, and John Arena; School Committee members Chuck Robinson and Chris Caruso, Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Superintendent of Schools John Doherty,. Mary Delai, Town Accountant Gail LaPointe,'Fire Chief Greg Burns, Police Chief James Cormier, Town Planner Jean Delios, Public Works Director Jeff Zager, Public Works Business Manager Jane Kinsella, Library Director Ruth Urell, Office Manager Paula Schena, Bill Brown, and Dick Curtis. Review of Revenue Ideas from Instructional Motion - The Town Manager noted that the process for selling land parcels and selling timber in the Town Forest has been started. Rental of existing spaces is ongoing and the School Committee approved a policy for naming rights. Moving at a slower pace are potential cell towers and advertisingibillboards because there are no Town owned places in Reading that qualify. The Board of Selectmen decided to leave parking fees at the depot unchanged. The possibility of offering ambulance services to other towns will have to be studied. Ideas that have been discarded include preferred parking at the high school; gas tax on the Town; raising parking tickets/parking meters. Marsie West asked the Selectmen about their decision not to increase parking rates at the depot. Camille Anthony noted that James Bonazoli put forth a motion to raise parking/compost to $50 and then have a separate sticker just for the compost center at $25. The concern was they don't want to discourage the use of public transportation. Ben Tafoya noted that the depot stickers are only for residents, not out-of-towners who park in the neighborhoods. When the MBTA raised fees they lost 28% of the parkers. . Marie Ferrari asked if on streets with sticker parking only, would residents be ticketed if they park in front of their homes. Chief Cormier noted that people who have restricted parking in front of their home can get a sticker for free, but it does not include the compost center. School Committee member Chris Caruso indicated this is outside the purview of the Finance Committee and suggested moving on. Project Updates and Financial Tools for Economic Development - Town Planner Jean Delios updated the Committee on the current status of developments throughout town. She noted that financial tools include work smart permitting, simplifying regulations, public/private partnerships, a request to increase the threshold for site plan review is going to Town Meeting. She also noted that a substitute Building Inspector has been hired for one day a week to help out the Building Inspector. The Town Manager noted we will be asking for more funds for inspectional services at Town Meeting. Barry Berman asked what will happen to the Calareso's old site. Jean Delios indicated she is encouraging a high end use. Ben Tafoya noted that the Selectmen are pushing the State hard to 69 (06U 1 Board of Selectmen Minutes - October 12, 2011 - page 2 - - - - signalize that intersection. The Town Manager noted that Pulte is putting up $50,000 for the intersection design and then MassDOT will install the signal. Jean Delios noted that the M.F. Charles building is focusing on the ground level first and ultimately there will be residential units upstairs. Recap of Free Cash and Reserves - Town Accountant Gail LaPointe noted that the total reserve is $7,079,462 which equals 9% of the total revenues. She noted that the Finance Committee policy is to keep 5% for reserves. Reserve money was used for building safety and that will be replenished at Town Meeting. Projected FY13 Revenues - Gail LaPointe noted that many revenues are over the estimates including excise taxes, property taxes, refunds from priox years expenses, MIIA credits and FEMA reimbursement. There was also an increase in meals tax and one time state aid. Update n Capital - The Town Manager noted that we are receiving one time revenues from Smart Growth, one time state aid and reprogrammed debt. He proposes to use $1.25 million as follows: $50,000 into the Housing Trust; $50,000 for a school building study; $50,000 for pedestrian improvements; $250,000 for road improvements in neighborhoods and $55,000 for the West Street 100% design. Library. Protect - Ruth Urell noted that the Library is 116 years old. The Library Board reviewed their needs and decided to update and add on to the current Library was best. Reading is on the list for grant funding, and if it is granted, it will need Town Meeting vote and a special election. Killam Elementary School - Superintendent John Doherty and Mary Delai were present. Mary Delai noted that when we did the Green Repair, the Architectural Access Board indicated that we would be required to be ADA compliant if we spent over a certain amount of money so we just replaced the roof at Killam. We did over $2 million in repairs and improvements. We can't do any major repairs for three years unless we do the ADA upgrades too. The majority of the work is in the bathrooms with an estimated cost of $1.6 million with a 10% contingency. To do everything would be $4.9 million. The main office alone would cost $1.3 million and MSBA might not reimburse for that. Preliminary FYI 3 Accommodated Costs - Bob LeLacheur noted that accommodated costs include health insurance, Medicare, debt and capital and education. The operating budgets are 1% in the negative. The revenues are not enough to cover accommodated costs. Mr. LeLacheur noted there are three scenarios including #1 - no use of reserves; #2 - operating budget plus I%; and #3 - target use of free cash. Bob LeLacheur noted that if no reserves are used in FY13 we will have to cut 1.5%. If we use 1% of reserves then we run out of free cash in FYI 6. He prefers that free cash be used to address health insurance cost because that is an unknown until the last minute and then the departments are cutting at the last minute. Camille Anthony noted she would prefer the expense discussion first. She is not ready to talk about free cash right now. Bob LeLacheur also noted that some level of free cash should be kept for the bond rating. ,L_- 70 Board of Selectmen Minutes - October 12, 2011 - page 3 Chuck Robinson noted that every year money goes back to the Town. He feels we cannot keep dismantling the budgets. He feels some free cash should be used to keep things going. Bob LeLacheur noted that due to the line item discipline of the Town budget there will always be a surplus. Ben Tafoya noted we are not using free cash to_ increase our operations. He also noted that $1 million in free cash is only 0.7% and he would rather do that. Barry Berman asked about the level of new growth. The Town Manager noted that approximately 1 There was much discussion among the Finance Committee members regarding the amount of free cash to use. A motion by Berman seconded by Greenfield to use up to $1.5 million in free cash to create the FY13 budget was approved by a vote of 7-1-0 with Arena voting in the negative. A motion by Bonazoli seconded by Tafova that the Board of Selectmen adjourn their meeting at 10:20 p.m. was approved by a vote of 3-0-0. Respectfully submitted, Secretary 5 60-1 71 r.a 0 ©r r7 W O October 28, 2011 w Camille Anthony Stephen Goldy Ben Tafoya James Bonazoli Richard Schubert Dear Selectmen, I would like to inform you that I am retiring from my position as Town Accountant for the Town of Reading. My last day of work will be June 28, 2012. I have enjoyed working alongside excellent colleagues who have enriched my professional experience and with many dedicated and truly caring employees and volunteers. The residents of the town of Reading are fortunate to have so many talented and creative people'contributing to the progress and growth of the town. Please let me know if I can be of assistance in the transition. Sincerely, cu-P v~~ Gail LaPointe 72 VC Qo nity October 31, 2011 Via overnight Delivery Board of Selectmen Town of Reading 16 Lowell Street Reading, MA 01867 RE: Important Information- Price Adjustments Dear Chairman and Members of the Board: I As part of our commitment to provide customers in your community with the best entertainment and communications experience, we continue to invest in making our services even better. Here are some highlights: More to Watch More Ways-Anytime, Anywhere ® Now, over 60,000 On Demand TV shows and hit movies on TV and online-over half are free! ® Catch up and keep up with your favorite shows from all top networks & enjoy new movies On Demand-many the same day as DVD & a month before Netflix ® Watch from your TV or online, anytime, anywhere-even from your iPad or iPhone! 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