Finance Committee Minutes
Monday, April 1, 2013
CostelloTransportationCenter
7:00 p.m.
Meeting opened at 7:04 p.m.
Members present: Councilor Neale, Councilor Gilday, Councilor Lavoie, Councilor McMilleon, Councilor Scorzoni, Councilor Kimball, Councilor McClure, Councilor Kelcourse and Councilor Ferguson arrived at 7:15 p.m.
Councilor Neale opened the meeting as a continuation of public forum for those who did not get a chance to speak at the March 26, 2013 meeting.
Debbie Plummer spoke representing Coastal Connections of Water St. and stated that her company moved to Amesbury because of the promise of the redevelopment of the lower Millyard. She is in full support of this project.
Dan Healey spoke on behalf of Arc Technologies and the Carriage Mills on Water Street and gave a brief history of the properties and the taxes that are paid. He stated that this is a huge step for the town and for the lower Millyard and he feels it will create a huge economic benefit.
Councilor Kimball stated that the town is looking for $300,000.00 from the taxpayers and questioned if he, Mr. Healey, might consider partnering with the town and share some of the cost and take partial ownership of the park.
Mr. Healey stated that he already feels he is partnering with the town. The assessed value of the land is $141,000.00 that he pays taxes on and he feels that is a gift to the town.
Councilor McClure asked if the property that is being gifted to the town has been tested.
Mr. Healey stated not to his knowledge.
Councilor McClure asked if the Brownfield’s Grant does not come through she asked if they could share the cost of the clean up for that parcel.
Mr. Healey stated that he would certainly consider that.
Councilor McMilleon stated that the City has already invested $7.8 million into this project and is potentially looking at another $850,000.00 more. He asked if there is a way for the Business Community to help with the $325,000.00; maybe they contribute $125,000 and the city $200,000. There are many other things coming up including budgets.
Mr. Healey stated that he does not see a lot of money to be made on his portion. He stated that his investment is in his pride for the city.
Councilor Scorzoni stated that he did not see anything in the Grant about private funds. He encourages that business groups get together a friends group for fundraising.
Councilor Lavoie stated that years ago there was a petroleum leak and he has concerns about the current ecosystem at 25 Water St. He asked if there was a timeline of when the site plan review would be filed.
Mr. Healey stated that it is a projection that it is based on completion of the park and the CarriageMuseum and the WelcomeCenter getting into place.
Councilor Neale stated that for him the whole issue comes down to liability. The town just can’t have unfettered liability. So that is the risk, we need to find a way to not have unfettered liability on the towns part relative to acceptance of the property.
Richard Gale, 6 Bartlett Place, stated that this is the opportunity to do something great for this city and would like to see it done.
Claude Gonthier, 112 Kimball Rd., stated that Mr. Higgins estimated $200,000 to clean up and the river has been tested and not found contaminated and he feels you could limit the exposure to half of the $200,000.
Matt Sherrill, President of the Amesbury Carriage Alliance, stated that he is very committed in moving forward with the project. He stated that the Chamber runs a program called Adopt-a-spot and he did not see a reason why they can’t find someone to adopt spots in the park. He asked for a vote in support of this.
Jane Snow, 44 Fern Ave, stated that she feels that the park is a great idea but is concerned if the grant does not come through, where the money will come from. She asked that they make sure they have all the facts before they vote so the taxpayers will know what they are facing for tax time.
Mayor Kezer stated that the cost of the project is $1,276,404.00; $376,000 EPA grant for clean up, $200,000 for the boat launch from the state leaving a balance of $700,404. He stated that they rounded the number for contingencies for a total request for $725,000. He stated the most critical component of the $400,000 grant is that in order to accept the grant we have a deadline to meet with the state in order to submit the design plans. We cannot start the work on the design without an appropriation; and authority to move forward.
Councilor McMilleon stated that the Brownfield’s money is not a guarantee. He believes that the deadline of June 1 is not hard and fast and negotiations could be done between now and then to get a better arrangement around that parcel of land that we are getting from Mr. Healey and he feels that we should be able to get some private investments to offset the costs of the $325,000. We should also know more by June what is happening with the state finances in terms of local aid. He stated that he is concerned in committing to that amount of money with all of the things that will be coming before us. He feels that we can negotiate a better deal.
Mayor Kezer stated that they will continue to negotiate a better deal and that means securing additional funds for any additional cost items. We are also in discussions with the state for flexibility in the schedule for this whole project because everyone recognizes that it is a very complex process with all of the moving parts that we have. The state recognizes the challenges. There has to be Brownfield cleanups that happen first before you can construct a park. The timing on the park grant doesn’t match up with the timing on the Brownfield’s, they get it and they are willing however, they are willing to allow flexibility in the schedule going forward as we line up the project but we need to do the authorization up front to show the state our commitment that we are doing it.
Councilor Kelcourse stated that they have heard the same presentation before. There is always a sense of urgency or we will miss out on this opportunity for new growth and development. We have a gracious business community but we also have a residential community that can’t keep up with the spending.
Mayor Kezer stated that again the deadline is June 1. We need authorization to put the plan together to submit to the state.
Councilor Gilday stated that we need to move forward on this; there is no reason the vote needs to be delayed.
Councilor Neale asked Mr. Basque to tell him what the cost of the bond might be at the $300,000 and the $725,000 annually.
Mr. Basque stated that if it was $300,000 it would bec$30,000 the first year and would drop a little bit every year after that. If it was $725,000 it would be $71,000 for the first year and drop a little bit every year.
Mr. Basque then reviewed the costs of all projects combined and what the annual debt service would be as per the schedule of projects that he had previously supplied the committee.
Councilor Kimball asked what the percentage of the total debt service of our operating budget is.
Mr. Basque stated that it is around 4%.
Councilor McClure asked about the $300,000 for the 40R payment and if that was available still.
Mr. Basque stated that it is still in a stabilization fund and is available and could be used. There is legally nothing preventing it. It just takes a 2/3 vote.
Councilor Lavoie asked Mayor Kezer what his plans were for that money.
Mayor Kezer stated that it was an idea upfront but it was suggested to hold off and consider it later. It is an option. We are still engaged with the state and if they say they can help close the gap we should let them and when the bill comes due towards the end we will figure out which is the best option at that time.
Councilor Scorzoni stated that they need to move forward on a vote tonight. There is some risk we have to incur but there is a net benefit to the city.
Councilor McClure stated that it is a great project and the town needs it; it just needs to be tightened up a bit. She stated that she would like to see a completed MOU before this is put to a vote. She stated that she is concerned that they are jumping the gun and that they don’t have a plan B if the money doesn’t come in and we are looking down the throat of budget increases.
Councilor Lavoie stated that he is not comfortable with signing a blank check and he would only be comfortable with accepting 25 Water St if there was a condition posed that they only accept title of that land and only be eligible to record the deed for that property if either the property is clean or unless a source of non-municipal funding has been secured to clean it up. That addresses the concerns of what happens if the money doesn’t come.
Councilor McMilleon stated that he feels there is still time to make changes in that monetary request. He stated he would like to see some of those funds come from another source other than the city. He is in favor of the amendment that Councilor Lavoie has suggested.
Councilor Neale stated that we don’t want to pledge some of the free cash and/or reserve money upfront because we want to keep pressure on the state to give us more money. Anymore we get to resolve the problems down there is less that we have to hit our reserves for. That leaves the money in our bank to be used for something else. If you pledge it up front the state can assume that we are all set. It is a strategy that we as a city need to deploy.
Jim Higgins stated that he has some perspective about everything around it. There are two parts that he does not know what the quality is because they have not been tested. He stated that he also does not know what the thickness is and that is related to cost. He stated we need to figure out what the depth of the fill is. He stated that he feels pretty comfortable that he is probably within three feet. At three feet it is $200,000.
Matt Sherrill stated that there is going to be an informational night this week at the TransportationCenter hosted by the Chamber and the Carriage Alliance to answer questions that have not been answered here.
Councilor Neale stated that he would like to turn everyones attention to 2013-037.
2013-037An Orderto authorize the Mayor to accept, on behalf of the City, a parcel of land located at 25 Water Street – Mayor Kezer sponsor
Summary:Authorize the Mayor to accept, on behalf of the City, by gift, the fee in and to the parcel of land located at 25 Water Street, shown on Assessors Map 53 as Parcel 110, owned by Louis Lavoie, Trustee of Water Street Realty Trust, which parcel of land is a portion of the property described in the deed recorded with the Essex South District Registry of Deeds in Book 14193, Page 292, for general municipal purposes.
Councilor Lavoie moved to send 2013-037 to the City Council with a recommendation for approval with the condition that the Mayor only be authorized to accept title to the land and record the deed conveying the property to the city if the property is clean or unless the source of non-municipal funding has been secured to pay for the environmental clean up of the property to make it clean.
Councilor Ferguson seconded.
A Roll Call was taken: Kelcourse-Y, Kimball-Y, Lavoie-Y, McClure-Y, McMilleon-Y, Scorzoni-Y, Gilday-Y, Ferguson-Y, Neale-Y: (Unanimous)
2013-038An Orderto create the AmesburyHeritagePark – Mayor Kezer sponsor
Summary:To designate an area of property on Water Street as the Amesbury Heritage Park and to dedicate it as a Public Park in accordance with MGL Chapter 45 Section 3.
Councilor Ferguson moved to send 2013-038 back to the City Council with a recommendation for approval.
Councilor McMilleon seconded.
A Roll Call was taken: Kelcourse-Y, Kimball-Y, Lavoie-Y, McClure-Y, McMilleon-Y, Scorzoni-Y, Gilday-Y, Ferguson-Y, Neale-Y: (Unanimous)
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2013-033 An Orderto request the Amesbury City Council to vote to appropriate Seven Hundred Twenty-Five Thousand dollars ($725,000) to construct a public park at the Back and Powow Rivers on Water Street. – Mayor Kezer sponsor
Summary: To provide for the construction of a public park on property owned by the City of Amesbury on Water Street to include a canoe and kayak launch, public assembly area, historic panels, pathways, and sitting areas.
Councilor Ferguson moved to send 2013-033 back to the City Council with a recommendation for approval.
Councilor McClure questioned if the recommendation should be pending receipt of the Memorandum of Understanding. She moved to add an amendment to the main motion to recommend the Council study and be completely satisfied with the MOU be arrived at between the current owner of 25 Water Street and the City of Amesbury.
Councilor Lavoie seconded the amendment
Councilor Ferguson accepted the amendment as well as Councilor Gilday.
The final motion as follows:
Councilor Ferguson moved to send 2013-033 back to the City Council with a recommendation for approval.subject to the further recommendation that the City Council study and be completely satisfied with the Memorandum of Understanding be arrived at between the current owner of 25 Water Street and the City of Amesbury.
Councilor Gilday seconded.
A Roll Call was taken: Kelcourse-Y, Kimball-Y, Lavoie-Y, McClure-Y, McMilleon-N, Scorzoni-Y, Gilday-Y, Ferguson-Y, Neale-Y: (8-Yes/1-No)
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3.) 2013-036 A Resolutionto accept a grant in the amount of $400,000 from the Massachusetts Executive Office of Energy and Environmental Affairs – Mayor Kezer sponsor
Summary: The City of Amesbury was awarded a grant from the Commonwealth of Massachusetts Executive Office of Energy and Environmental Affairs for the Parkland Acquisitions and Renovations for Communities (PARC) program for the creation and dedication of the Amesbury Heritage Park as a park and recreation facility in accordance with M.G.L Chapter 45 Section 3 to be located along the Powow and Back Rivers in the Lower Millyard.
Councilor McMilleon moved to send to the City Council with a recommendation for approval.
Councilor Kelcourse seconded.
A Roll Call was taken: Kelcourse-Y, Kimball-Y, Lavoie-Y, McClure-Y, McMilleon-Y, Scorzoni-Y, Gilday-Y, Ferguson-Y, Neale-Y: (Unanimous)
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Councilor McMilleon moved to accept the minutes of February 26, 2013
Councilor Gilday seconded and it was voted IN FAVOR: 8/NO VOTE: 1
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2013-035 An Orderto request the City Council to vote to appropriate $200,000 from Free Cash for the repair and maintenance of streets and sidewalks. – Mayor Kezer sponsor
Summary: This order will provide the funding for repair and maintenance of streets and sidewalks per the DPW Infrastructure and Pavement Plan.
Rob Desmarais stated that this is a continuation of the infrastructure improvement plan that they began last year using Chapter 90 money for streets and sidewalks. You have a list of projects that will be done in 2013 and also a three year plan. The 2013 plan will complete up around the lake and up off of Market St. He stated they will be doing some sidewalks on Thompson Street and Water Street, various drainage improvements; the water crew will be working in the Greenleaf and Pleasant Street neighborhoods and continuing on to Whittier Street and Carver St. This request for $200,000 will supplement the construction budget.
Councilor Kimball asked if the summary could be read into the record. He stated that in Mr. Desmarais’ estimation the grand total of construction projects for 2013 is $881,000 of which $200,000 we are looking to appropriate tonight. The major source of funding is Chapter 90 funds; $338,000 and then water and sewer funds of about $341,000 for water and sewer specific type infrastructure improvements. He asked for a breakout of the $200,000 that is being requested.
Mr. Desmarais stated that he did not break out the labor for the paving but it includes Morrill Street, Lakeside Drive, Amesbury Ave South for paving and then Thompson and Water Street sidewalks and all of the drainage work will be funded through Chapter 90.
Councilor Lavoie questioned the sidewalks on Water Street if any will be torn up and if there are any plans for Pleasant Valley Rd.
Mr. Desmarais stated that Water Street is just a short portion and they are not where construction will be. Pleasant Valley Road is in the construction plan for 2014 and 2015 where we are requesting funds for water work which will then allow us to pave the road.
Councilor Ferguson moved to send 2013-035 to the City Council with a recommendation for acceptance.
Councilor Gilday seconded.
A Roll Call was taken: Kelcourse-Y, Kimball-Y, Lavoie-Y, McClure-Y, McMilleon-Y, Scorzoni-Y, Gilday-Y, Ferguson-Y, Neale-Y: (Unanimous)
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2013-025 A Request to Establish a Local Option Meals Tax – Councilors Scorzoni, Gilday and Lavoie sponsor