Loading...
HomeMy WebLinkAbout2011-05-10 Board of Selectmen Minutes Board of Selectmen Meeting May 10, 2011 For ease of archiving, the order that items appear in these minutes reflects the order in which the items appeared on the agenda for that meeting, and are not necessarily the order in which any item u;as taken up by the Board. The meeting convened at 6:30 p.m. in the Selectmen's Meeting Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman James Bonazoli, Vice Chairman Camille Anthony, Secretary Richard Schubert, Selectmen Stephen Goldy and Ben Tafoya, Town Manager Peter Hechenbleikner, Assistant Town Manager Bob LeLacheur, Office Manager Paula Schena and the following list of interested parties: Bill Brown,Joanne Senders, Karl Weld, Erin Calvo-Bacci, Barry Berman, Lyn Whyte, Tim Kelley, Tom Connery, Tony D'Arezzo, Charlie Adams. Reports and Comments Selectmen's Liaison Reports and Comments— Stephen Goldy asked if the Recreation Committee was authorized to do sound permitting. The Town Manager indicated they are but that will be coming before the Selectmen in June. Mr. Goldy also noted that Camille Anthony will be filling in for him this week at the Senior Center.. Camille Anthony noted that she attended a meeting of the Trust Fund Commissioners. She noted that her term is expiring on that committee and she feels it is time for someone to take her place — Stephen Goldy indicated he was interested in serving. Ms. Anthony noted that the Garden Club had their plant sale and the mail carriers will be collecting food this Saturday. Ben Tafoya asked about the tree lawns on Washington Street. The Town Manager noted that the state has approved a two foot tree lawn with a five foot sidewalk. Ben Tafoya indicated he wants to be reappointed to the Fall Street Faire Committee and he met with James Mawn, the owner of the MF Charles building, and he has a plan ready to go once he gets approval to move this batik branch. James Bonazoli thanked, staff for all of the work that went into Town Meeting. He also noted that 186 communities signed the bottle bill and that will help clean up the parks. He attended a School Committee meeting and they voted to name Jolm Hollingsworth Field. Jimmy Houston noted that Friday is the opening night for Chess Musical; Saturday is electronics recycling. Selectman Stephen Goldy commended Jimmy on his recycling efforts at the school. Town Manager's�'s Report—The Town Manager gave the following report: Administrative Matters • It is time for the annual Board/Committee/Commission appointment process. • Town counsel's tracking for hours/expenditure to date is included in your packet • 1 have copied you on an email from Town Meeting member Tom Connery re: Killam School. We will be working this summer with School Department officials on a strategy to address the HC access at the school Board of Selectmen Meeting—May 10, 2011 —page 2 • The Boston Region MPO is considering changing their MOU to change the municipal membership. Currently the MOU requires representatives of three cities and three towns, m. and the potential amendment would change that so there would be no minimum or maximum requirement for how many of the six municipal representatives were from cities or towns. Finance • Brian Walsh has resigned from the Finance Committee in order to take a position with the School Department. The position 'may be filled in the normal anrival BCC appointment process. Community Development • Calereso's has completed their demo work getting ready for construction of their new facility on south Main Street. • The helicopter Bti applications for mosquitoes in the East Middlesex Project area were completed mid-month. With ideal weather conditions, the three helicopters managed to finish the application by 3:00 p.m. • An outside section of the House version of the State budget has been filed which would curtail local Boards of Health ability to regulate smoking. I have asked for MMA's help in fighting back this provision, • Town Counsel has sent an email re: "Netcafes" which are now illegal per the Attorney General's emergency regulations. I have advised the Police Chief of that fact. Public Safety • You have in your packet the results of the traffic study on Harrison Street conducted in December. A second study will be done this spring. • The Board has received a letter complimentary to the Public Safety response to a MV accident that happened 4-14-11. • Staff has been meeting with Oaktree regarding the logistics of their construction project. We are working on a construction process that will minimize the amount of the Brande Court parking lot utilized for construction, minimizes zes the disruption on Haven Street, and establishes truck routes. Normally this would all be handled on a staff level. Does the Board of Selectmen want to be involved in the details of this? James Bonazoli noted the Board does not need to be involved,just keep them informed. Public Works • DPW Water Division staff has again been recognized by DEP for outstanding performance in 2010, and will receive an award on May 5. • A hearing on Safe Routes to school project took place on 4-14-11. The hearing went well. There were a couple of specific requests to the Town from property owner's that we are addressing directly — not part of the project — shrub removal in one instance to improve site distance and removal of an unsightly Town owned fence. • Correspondence from Christine Lusk of Washington Street regarding sidewalks and tree lawns was included in your packet. Board of Selectmen Meeting—May 10, 2011 —page 3 o The Compost Center is open Friday, Saturday and Monday for the months of April and May. Don't forget to have your Community Access Sticker for 2011, available at.the Police Station. Construction Projects Roadway Paving: • Will start in June and continue until August. We were going to start with Pearl, Haven and the intersection of Forest Glen with Pearl but we.will have to re-assess our plan of attack as the gas company notified us yesterday that they want to replace cast iron mains on Pearl, Hanscom, Wilson and Track. Sidewalks: • Imagination Station area — July construction. Camille Anthony noted that YMCA buses and 23 cars park on Birch Meadow. She requested that Imagination Station not be closed off until ready to do Imagination Station. Drainage: • DPW Garage water quality units July. • Howard Street improvements—bid May-June, construction this summer • Memorial Park swale silt removal and bank stabilization — summer work (dry season) Water: • Haverhill Street main replacement—anticipated construction start July Sewer: • Lewis Street sewer rehabilitation — late summer/fall. Slip lining of the sewer main, limited to no excavation • Smoke testing remainder of Town, mostly northern half of Town late summer/fall Proclamations/Certificates of Appreciation Proclamation for Public Works Week — Public Works Director Jeff Zager and Public Works employees Jeff Cummings, Peter Isbell, Michael Hannaford and Arthur Markos were present. .Teff Zager noted that only 17 of 1700 communities were recognized and Reading was one. They received three proclamations from the State. A motion by Tafoya seconded by Goldy to declare May 15 to May 21, 2011 as Public Works Week in the Town of ReadinjZ was approved by a vote of 5-0-0. Personnel and Appointments Community Planning and Development Commission— Stephen Goldy noted that the VASC met and interviewed William Keating and Charlie Adams. Both candidates have good backgrounds. .A motion by Goldy seconded by Anthony that the Board of Selectmen accept the report of the Volunteer Appointment Subcommittee and confirm the following appointments to the following Committee: Board of Selectmen Meeting—May 10, 2011 —page 4 ® Charles Adams for a position on the Community Planning and Development Commission with a term expiring June 30, 2011 ® William Keating for an Associate position on the Community Planning and Development Commission with a term expiring June 30, 2011 The motion was approved by a vote of 5-0-0. Discussion/Action Items Highlights — 9-11 Memorial — Fire Fighter Mark Dwyer noted that the memorial is to honor all of those who lost their life on 9-11 including Kevin McCarthy from Reading. He proposes a walkway between two monuments — one honoring Kevin and one honoring all who died. There will also be three benches. He has already raised $5000 and is looking to raise $12,000. All funds are going into a charitable donations find at the Reading Co-op Bank_ Presentation —Cultural Council Survey — Sudie Fay from the Cultural Council was present. She noted that the Cultural Council awards grants are funded by the Massachusetts Cultural Council for activities. The council did a survey and the results show that there is an interest in public art galleries and there was a request for more historical education. Joint meeting with Reading Housing Authority re: Use of Affordable Housing Trust Fund —The Reading Housing Authority called the meeting to order at 7:30 p.m. James Bonazoli noted that there were earlier discussions regarding the use of the Affordable Housing Trust Funds. There is currently $480,000 in the trust fund and Town Meeting approved the allocation plan. The Town Manager noted that there was more information on pages 7 —21 of tonight's handout. He noted that consultant Chuck Eisenberg from Housing Partners is present. He also noted that the Board received an email from Jacqui Carson indicating that Peter Sanborn Place would like to apply for funds also. Bill Onenberg, representing Oaktree, indicated that there will be 23 one-bedroom and 30 two- bedroom units for a total of 53 units. The cost is approximately $214,000 per unit not including parking or retail space. The total cost of the project is $18.3 million with a $.4 million grant. The grant partially covers the cost of three additional affordable units. It will be difficult to proceed with the project without the grant. They are limited by the amount of rent they can collect on the affordable units and the units designated "affordable" will be in perpetuity. Ben Tafoya noted that 20% of the project has to be affordable because it is a 40R district. Chuck Eisenberg from IIousing Partners noted that the loss of cash flow of three units is approximately $150,000. Paul Ognibene noted that they tried to fill the gap by going to the State, but they discouraged them. The Town suggested the trust funds instead of waiving permit fees. Mr. Ognibene noted that if they move forward with the project then the Town gets bonus, plus ,permit fees and tax income. If they don't move forward then the Town gets nothing. Board of Selectmen Meeting—May 10, 2011 —page 5 Camille Anthony noted that 40R is increased density and asked what happens if these rental units turn to condo's after one year. Mr. Ognibene noted that whether they are condo or rentals the outcome is the same. Camille Anthony noted that if they switch.to condos' then a lot of money is being made by the developer and if we are an equity partner, we should get a return on the investment. Chuck Eisenberg noted that there is a five year wait on the return. Housing Authority member Kevin Mulvey referenced a memo dated 4/11 from Chuck Eisenberg which indicates that $400,000 is not needed. Chuck Eisenberg noted that he couldn't determine if it was needed due to the lack of information. Presuming the numbers are accurate, then the return on the investment is thin. ,lames Bonazoli noted that $400,000 is a lot of money and that lot won't stay vacant if Oaktree walks away. The liquor license alone increased the retail value. 'Kevin Mulvey suggested a repayment plan from the rent money. James Bonazoli suggested reducing the grant $50,000 which is the parking lot amount. Richard Schubert asked if there could be subordinate language where the money is held until last. Chuck Eisenberg noted that the first mortgage for the construction will be paid off first. The Board noted that they received an email from Finance Committee member Barry Berman and CPDC member Charlie Adams. Stephen Goldy noted that there was no application because we don't require it. He indicated he hasn't seen any financials (audited financial statements) and if they file bankruptcy then the Town is out of the money. Barry Berman noted that when Oaktree made the presentation to the Finance Committee it was pay or no project. If the Town wants to invest in downtown then there needs to be people living there. He proposes a structure investment of two loans of$160,000 granted when needed and interest free. These could be paid back when rental income starts being generated. Bill Brown noted that he is concerned about using public funds for a private entity. Dave Talbot noted that the 40R zoning gave the developer 30% more density and that is an extraordinary benefit. He also noted that the liquor license increases the rental value and no other developer in town has received this. The Town Manager noted that the Town subsidized the landfill project with'state grants. Selectman Ben Tafoya summarized the following broad points of agreement: Board of Selectmen Meeting—May 10, 2011 —page 6 1. Town will invest up to $400,000 to support the project 2. Town will only expend fiends to make up the difference between the construction budget of$.18.3 Million and the actual costs starting from $17.9 Million 3. Town fiends are "last in"; may be placed in escrow 4. Town gets security in the project in the event the project fails or bankrupts 5. Payback of funds if project converts to condos or change of ownership which involved sale of stake 6. Return of investment if payback exceeds pro forma(will need to agree how this is defined and benchmarks) 7. Return of investment if project is refinanced through non-standard (subsidized) means 8. Due diligence on Oaktree and financing We will continue to discuss other methods to replenish fiends in Affordable Housing Trust apart from the possibilities above and we will work on a process to formalize the request for funds from the Trust including an RFP. James Bonazoli asked about Barry Berman's suggestion of monthly payback from rentals. Paul Ognibene noted that won't work because the rents have already been pledged to the banks. Housing Authority member Diane Cohen indicated she would like to see a deal come together with due diligence and also wants the money back. Housing Authority member Mary Connors had concerns about giving $400,000 without certainty of repayment. Housing Authority member Kevin Mulvey suggested sitting down and working out the details. After much discussion about what could and could not be done the consensus was to form a working group consisting of Kevin Mulvey, Diane Cohen, Ben Tafoya and Stephen Goldy to negotiate the details and bring it back to both boards at the next meeting. A motion by Anthony.seconded by Goldy to allocate up to 54500 in administration fees for consulting and to help draft an agreement was approved by a vote of 9-0-0. Selectman Richard Schubert left the meeting. A motion by Bonazoli to move $200,000 from the existing 40R fiends into the Affordable Housing Trust Fund was not seconded due to the fact that those funds cannot be expended until the ground is broken. A motion .by Karen Flammia seconded by Kevin Mulvey to adjourn the meeting of the Housing Authority at 10:00 p.m. was approved by a vote of 4-0-0. Board of Selectmen Meeting—May 10 2011 — page 7 Hearing — Water Sewer and Storm Water Rates for FY2012 — The Secretary read the hearing notice. Bob LeLacheur noted that the amount needed for water is a 9% increase without the use of reserves, sewer is up 1.50% and storm water rates remain the same as last year. A motion by Goldy seconded by Anthony to close the hearing on setting the water, sewer' and storm waterrates for FY2012 was approved by a vote of 4-0-0: A motion by Goldy seconded by Anthony to set the FY 2012 Water Rate at $8.27 per 100 cubic feet with a minimum quarterly bill of$ 16.54 effective with the August 2011 bdlin was approved by a vote of 4-0-0. A motion by Goldy seconded by Anthony to set the FY 2012 Sewer Rate at $8.57 per 100 cubic feet with a minimum quarterly bill of$17.14 effective with the August , 2010 billin was approved by,a vote of 4-0-0. A motion by Goldy seconded by Tafoya to set the Storm Water Rate at $40 per unit (2,552 square feet) per year to be billed quarterly effective with the August, 2011 billing was approved by a vote of 4-0-0. Review/Approve New Precincts — The Town Manager noted that there is still some tweaking of census blocks going on. The Town Manager noted that the State will okay and do a new map for the next meeting. Follow Up—Aquifer ProtectionDistrict—This was postponed to the next meeting. A motion by Goldy,seconded by Tafoya to adjourn the meeting at 10:15 p.m. was approved by a vote of 4-0-0. Respectfully submitte Secretary