HomeMy WebLinkAbout2002-09-10 Board of Selectmen Executive Session Minutes Board of Selectmen Meeting
September 10, 2002
Executive Session
The Executive Session convened at 7:05 p.m. in the Conference Room, 16 Lowell Street,
Reading, Massachusetts. Present were Chairman Camille Anthony, Vice Chairman
Matthew Cummings, Secretary Richard Schubert, Selectmen George Hines and Gail
Wood, Town Manager Peter Hechenbleikner, Town Counsel Yvonne Gonzalez and Paula
Schena.
Sale of Real Estate—Landfill
Town Counsel Yvonne Gonzalez noted that the Fourth Amendment to Agreement covers the
Financial Assurance Mechanism (FAM). DEP has never let a private entity out of a FAM. A
compromise was for the Town to keep the Deed in escrow but Home Depot didn't like that.
The Town Manager noted that when the Town passes papers, we will get $3 million and put it in
escrow. The DEP agrees to release by schedule. Home Depot will put up a $3 million letter of
credit and the letter of credit will be reduced the same as our escrow account.
Yvonne Gonzalez noted that when the papers are passed, the Administrative Consent Order will
be signed by the Town and the developer and DEP will commit to signing it. When we close, we
will get the letter of credit and she suggests two trustees, perhaps the Town Manager and
Treasurer.
Yvonne Gonzalez noted that Number 1 under Section 2 indicates the DEP shall be party to but
have no access to cash escrow. Number 2 deals with the letter of credit and it indicates that
Dickinson may replace the letter of credit prior to the expiration with a letter of credit from
another banking institution. Number 3 deals with conditions to draw and it indicates that the
letter of credit is not to secure performance.
Selectman George Hines noted that in Number 3, the wording "substantially" cure—substantially
should be taken out. Chairman Camille Anthony noted that the second line of Number 3 "either
of' should be taken out.
Vice Chairman Matthew Cummings asked what if they start capping and something happens and
the Town has to close the landfill. Would that come out of the letter of credit. The Town
Manager noted that it would up to $3 million and it would be for a vanilla closure.
Yvonne Gonzalez noted that Number 7 deals `with the Town having access to the site during
construction. Selectman George Hines suggested that Town Counsel check the construction
laws regarding other contractors allowing our contractors access to the site.
Board of Selectmen Executive Session Meeting—September 10 2002 —Page 2
The Town Manager noted that Number 6 indicates that if the Town takes money out of the letter
of credit that is improper, then the Town will return the money immediately.
Yvonne Gonzalez noted that the trigger mechanism to draw on the letter of credit is the DEP.
Selectman George Hines noted that the last sentence in Number 6 didn't relate to that section and
should be moved.
Vice Chairman Matthew Cummings suggested putting in representation that Dickinson
understands that we can draw if DEP says so.
A motion by Cummings seconded by Wood to approve the Fourth Amendment in draft
form regarding the letter of credit and escrow dated 9/10/02 was approved on a roll call
vote with all five members voting in the affirmative.
Approval of Minutes
A motion by Cummings seconded by Wood to approve the Executive Session Minutes of
August 13, 2002 was approved on a roll call vote with all five members voting in the
affirmative.
A motion by Cummings seconded by Wood to approve the Executive Session Minutes of
August 21, 2002 was approved on a roll call vote with all five members voting in the
affirmative.
A motion by Wood seconded by Schubert to adjourn the Executive Session of September
1.0, 2002 at 7:40 p.m. was approved on a roll call vote with all five members voting in the
affirmative.
Respectfully submitted,
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Secretary