Board of Selectmen |
March 1, 2010 |
Regular Meeting |
Selectmen’s Hearing Room, Town Hall |
Present: |
Robert P. MacKendrick, Chairman |
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Arthur J. Bourque III, Selectman |
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Al Merritt, Selectman |
Chairman MacKendrick called the meeting to order at 7:00 p.m.
Interview – Thomas Kayola, Finance Committee
Thomas Kayola appeared before the Board as an applicant for a vacant position on the Finance Committee. Mr. Kayola is a Senior Business Analyst. With Fidelity Capital Markets and formerly worked for State Street Bank. His educational qualifications include a master’s degree from the Massachusetts Institute of Technology’s Sloan School of Management.
After a brief interview, on the motion of Selectman Bourque, seconded by Selectman Merritt, the Board voted unanimously to appoint Thomas Kayola to the Finance Committee.
Fire Department budget
Chief Francis Lennon and Captain Michael Feinberg appeared before the Board of Selectmen to review the proposed Fire Department budget for Fiscal Year 2011.
Chief Lennon said that the budget was submitted at level funding, as requested. In addition, $67,275 previously funded through the regular Fire Dept. salary account will be funded from the Emergency Medical Services enterprise fund.
In the call firefighter salaries line, $10,000 is a new line item for a mechanic. The remainder of salaries, expenses and fire alarm expenses are unchanged.
The shift of costs to the enterprise fund results in an overall decrease of 3.6 percent in the Fire Dept. operating budget.
Mr. Gustus said this represents a $37,469 decrease. The enterprise fund should show a surplus due to rate increases implemented last year. The full-time chief position has been added to the budget and the operating budget is still showing a decrease. He credited the department with coming up with a creative way to maintain services without adding to the operating budget.
Capt. Feinberg said that expected enterprise fun revenues for Fiscal Year 2011 will be $565,000. The revenue estimate is $560,000, which he said is “cutting it a little close.” He said he would be preparing new ambulance rates to bring before the Board.
Selectman Bourque asked about changing ambulance rates. Capt. Feinberg said that in January of 2009, the Board voted to approve new rates, including a new patient evaluation non-transport fee. A service was rendered and a bill is sent. Many insurance companies will not pay this bill, including Medicaid and Medicare. Selectman Bourque acknowledged the change was approved by the Board, but said he was uncomfortable with imposing the fee if the resident, rather than the insurance company, would have to pay.
Selectman MacKendrick said that the Board should look at the revenue and the application of this new fee when it reviews the new fee proposal.
Chief Lennon reviewed the capital outlay request, including the replacement of the 1998 Ford Explorer used by the chief, which he said is very old and costly to maintain, hydraulic extraction tools for the South station, the ongoing replacement gear program, hose replacement, a thermo imaging camera to replace a 10-year-old camera, and a replacement ambulance, which would cost $200,000.
In response to questions from the Board, Chief Lennon said it would cost about $2,000 to outfit a new firefighter, and that if the ambulance, originally estimated to cost $180,000, cost less, the remainder of the appropriation would be returned to the Town as free cash.
Mr. Gustus said that the said that the Town has been replacing an ambulance every five years, and has been borrowing through State House Notes over a five-year period for the purchase. He said that there is $265,000 in retained earnings in the enterprise fund that could be used for this purpose.
Selectman Bourque commented that the Town is running three ambulances, more than are running in Reading and Saugus. Capt. Feinberg said there are many times when all three are out on calls. Selectman Bourque suggested this has a tremendous impact on taxpayers and suggested relying on mutual aid more frequently. Chief Lennon said that the Town receives revenue for the ambulance calls. Selectman Bourque said the EMS operation is not completely self-supporting and could be managed better. He asked if any other town the size of Lynnfield is running three ambulances.
Selectman Bourque said he is not questioning the quality or level of services, but wants to minimize the taxpayer contribution to offset the cost of the service above EMS revenues.
Capt. Feinberg said that Rescue 3 was purchased in 2003 and the 1994 vehicle was purchased through funds received as a donation. Maintenance costs are paid from the enterprise fund revenues. In response to a question on the cost of equipping the new ambulance, he estimated that monitors cost $20,000 and cardiac defibrillator units cost $2,000.
Selectman Merritt said that the department runs a wonderful service and that the department should come back with proposed fee adjustments by July 1. He said he would like to find whether other communities run self-supporting EMS operations. Capt. Feinberg said that other towns which the Fire Dept. is running the EMS service do not break out payroll as separate.
Selectman Bourque said that among the Town’s highest paid employees are call and full-time firefighters. He asked whether the system is working to the advantage of the taxpayers of the firefighters. Capt. Feinberg said that most of the overtime generated in the department is EMS related and paid for by the enterprise fund.
Selectman MacKendrick said everyone’s aim is having the best service at the lowest cost possible. For the sake of efficiency, there should be an ongoing review of such matters. Capt. Feinberg said the recent consultant’s report on the department found the department and the EMS operation to be incredibly efficient.
Finance Committee Co-Chair Timothy LaRovere commented on the limited amount of funds available for fire capital needs. He asked the chief to prioritize his list. Chief Lennon said replacement of the chief’s vehicle and replacement gear are the most important. He said the thermal imaging camera was a high priority, but the department has three cameras.
Patricia Campbell of Patrice Lane asked for the guidelines for replacing and use of Town vehicles. Chief Lennon said he was seeking to purchase a Ford Tahoe, which would give more room for equipment and would be similar to the Police Chief’s vehicle. Mr. Gustus said that very few employees have the authority to take Town vehicles home, and those are all on call around the clock. They include the police and fire chiefs and public works director, as well as one police sergeant and a public works foreman. They are not supposed to use the Town vehicle for any extended personal use, except for the two chiefs, who may have to respond immediately to an emergency.
Chief Lennon said he usually avoid using the Town vehicle for personal use. He said a deputy chief would also require a vehicle.
The Board members thanked Chief Lennon and Capt. Feinberg for their presentations.
Police Department budget
Chief Joseph Dunn appeared before the Board to present the Police Department proposed Fiscal Year 2011 budget.
Chief Dunn told the Board that the budget was essentially level funded. Most of the budget is made up of salaries, both regular salaries and overtime needed to replace officers out sick, injured or on vacation. The total budget request is $2,222,824.
Mr. LaRovere said that the Chief had reviewed the budget with the Finance Committee two weeks before.
Jack Dahlstedt of the Finance Committee asked about a request for a new patrolman position. He said the Chief had discussed trying to get two slots at the next Police Academy.
Chief Dunn said the department is currently short one patrolman and he is seeking to fill that position, and is exploring a lateral transfer of hiring from the laid-off list. Hiring a trained officer would eliminate the lag from the date of hire to the deployment of the officer on the street. He said that the department is now running one patrolman short on day shifts, and that Sgt. Sean Donovan is very busy in his duties as daytime sergeant, court officer and safety officer.
Mr. Gustus said the vacancy was created by the promotion of Sgt. Lamusta, and said he believes that the department will finish this fiscal year without a deficit. He said failure to fill that vacant patrolman slot would add to overtime costs. The amount budgeted for overtime for the department has not increased since Fiscal Year 2002.
Mr. Gustus said that the Town had contemplated adding two new patrolman positions as a result of the Meadow Walk development, and it is still contemplated that the Town will add to the police force when that development opens.
On the capital budget request, Chief Dunn said he formed a cruiser committee with one sergeant and two patrolmen, to review officer safety and other issues. Sgt. Karl Johnson compiled a report of the results.
The department is recommending the replacement of three cruisers that have, or will have by July 1, high mileage. The cruisers run 16 to 24 hours per day. One vehicle has traveled over 122,000 miles; the others are close to 90,000 miles. The older vehicles are used for support purposes, and are handed down. One old cruiser is used by the dog officer. The outfitted cost of a cruiser is $34,000, with $25,000 for the vehicle and the remainder for lights, equipment and mobile devices. The data terminals used in the cruisers enhance officer safety.
In response to questions from the Board members, Chief Dunn said that the committee explored three or four different models and believes that Ford offers an adequate cruiser.
Mr. LaRovere asked about the requested fingerprint scanner. Chief Dunn said that the department is using the obsolete ink and card method. A scanner would relay fingerprints electronically to the Federal Bureau of Investigation, and that this feature is a national and local security issue. He said the department has applied for a grant to fund this acquisition, but said that these grants tend to go to larger departments.
The Board members thanked Chief Dunn for his presentation.
Town department budgets
Mr. Gustus reviewed with the Board Town Hall departmental budget requests.
Selectmen: Mr. Gustus said that salaries were level-funded, with the exception of the assistant to administration salary, which was funded at $50,000 for the current year. Mr. Gustus said the amount requested was $60,000, but town meeting reduced it to $50,000. He said the Board did not object at the time because it was planned to hire an assistant to administration for less than the full fiscal year, and the rate was $58,000 annually, but the total expenditure was within the appropriation. Other changes were made to the budget to reduce the request for this fiscal year.
Town Counsel: This budget request is level funded, but Mr. Gustus noted that it had been reduced from $50,000 in FY09 to $34,000 for FY10 and was not sure that this is sustainable.
Other budgets, including Accounting, Finance and Administration budgets of Town Clerk, Tax Collector, Operations Support, and Information Systems are also level funded, with no salary increases anticipated. The Board of Assessors, Conservation Commission, Personnel Board, Planning Board and Finance Committee budgets are also level funded.
Finance Committee members asked why the Payrate Increase Fund was funded at $30,000 if no pay raises were contemplated. Mr. Gustus said that this would cover step increases, but not fund any base pay increases, which are not contemplated. He said contract negotiations are still ongoing.
Mr. Gustus said that the School Committee is expected to vote on a proposed school budget on March 9. Mr. Gustus is carrying a level-funded school budget in this model, and the superintendent is seeking an increase of $235,000.
Mr. Gustus is projecting an 8.9 percent increase in health insurance costs, with a combination of a premium increase and additional insureds resulting from newly retired employees and their replacements.
Debt and Interest costs are being reduced by $373,000 but this provides taxpayer relief, not additional funds to be expended, as much of the reduction is from debt exclusion. The tax levy will be reduced by about $250,000 as a result, and one debt, from the 1990 capital building project, will be retired completely in Fiscal Year 2011. The Town has very little short-term debt.
In Employee Benefits, Mr. Gustus said pension contributions are budgeted to increase by 13 percent. The Town takes advantage of an early payment discount. The actuarial increase of 4.5 percent is a portion of the increase. The remainder is to due to a portfolio revaluation, requiring increased contributions to offset the downturn in investment income. The system is to be fully funded by 2030. Governor Patrick filed a municipal relief bill that would extend that funding schedule another ten years. Health insurance is estimated to increase between 9.0 and 9.3 percent. Medicare and worker’s compensation insurance is increasing by three percent, and are tied to last years’ salaries. Unemployment insurance funding was reduced in the current fiscal year to $34,000, and has been restored to $40,000.
In total the operating budget is increasing by 0.4 percent, or $157,000, assuming a level-funded school budget. The capital budget funding is carried at an extremely modest $300,000. This would leave the Town with a balance of $150,000 in revenue above expenditures. Mr. Gustus recommends that any additional funds available be put toward the capital program. Police cruisers and large public works equipment are among the biggest needs. The governor says he intends to level-fund local aid, but it could be cut by as much as 10 percent. If the cut is only five percent, the Town could afford a meaningful capital plan, which is needed. The remaining operating budget issue is the School Department. All other departments can live within the proposed appropriation levels presented.
Selectman Merritt asked about the agreed-upon one-percent base salary increase for teachers in FY11. Mr. Gustus said this agreement would forgo step increases for teachers in that year, and will cost the Town an estimated $100,000 less than level-funded base salaries with step increases. Selectman Bourque said that in FY12, the teachers will receive a two-percent base pay increase and step increases will resume. Mr. Gustus agreed that this will present a challenge. But he said changing this would require a radical revision to this salary scale, which is in place in all other communities.
Selectman Bourque warned that draining the Town’s reserves this year to support higher school spending would make funding the following year’s teacher contract more difficult for the Town. Mr. Gustus mentioned the use of federal ARRA funds by the School Department and warned the Town must wean itself off using one-time revenues. For the second year in a row, the Town will be using the Stabilization Fund to held fund the budget. The proposed budget would leave the Town’s reserves at five percent of the operating budget, which Mr. Gustus said is probably as lean as we want to be.
Selectman Merritt asked about local aid. Mr. Gustus said the Town should know the amount of funds it will receive by April. Last year the commitment was delayed due to the drop in state revenues. In prior years, a local aid resolution was adopted in March so that municipalities could plan their budgets. There has been talk about a similar course this year, as state revenues are increasing again.
Selectman Bourque asked about the snow and ice budget. Mr. Gustus said total expenditures have been $305,000, where the budget is $175,000, and that in the past the overruns have been funded through transfers from other line items. He said he hopes to do the same this year, but mid-year budget reductions made for the second year in a row have made budgets tighter. He said that he believes the Town can take spending control measures that would free up enough funds to cover half the overrun. He said the remainder could be raised in the Fiscal Year 2011 budget and be offset by an appropriation of free cash in the fall. More snowfall will make the situation more difficult, although a major storm would bring state end federal relief. The storm of the past week may result in such funds, but they are only for extraordinary
expenses, not basic snow removal. Public Works Director Dennis Roy has been asked to compile the storm-related expenses.
Selectman Bourque praised the Department of Public Works, Police Department, Fire Department and the two light departments for their work during the storm. He said some towns are still without power.
Finance Committee Co-Chair Jack Dahlstedt asked about bonding for some capital items, due to the advantages rates. Mr. Gustus said bonding is an option, and the Town has not added to its debt significantly in recent years. Equipment purchases have been paid off over five-year periods. While borrowing can be an effective tool, it is preferable not to borrow when it is avoidable. The last time the Town borrowed was for the ladder truck.
Selectman Bourque said the Town missed the chance to complete a lot of paving projects when the cost was low due to the lack of available funds. He said the Town also has a lot of building needs, and needs space for Town operations.
Patricia Campbell of Patrice Lane asked questions about the School Department’s fiscal autonomy and teacher contract negotiations. She asked whether the Town had considered consolidating bus stops. Selectman Bourque replied that the adding or deletion of stops is financially insignificant unless the number of buses required can be reduced. He said some consolidation has already taken place.
Mrs. Campbell also asked about the rail-to-trial project. Mr. Bourque assured her that abutters to the trial would be involved in the process and Chairman MacKendrick said that the maintenance costs associated with the trail would be investigated. Mr. Gustus said the preliminary design process would require a number of public hearings, and that homeowner concerns such as access and fencing would be addressed. Federal and state funds will pay for all or nearly the entire project.
Mrs. Campbell asked if increasing deductibles and co-payments has been considered as a way to keep health insurance premiums lower. Mr. Gustus said that these were increased in the current fiscal year, and there was no increase in premiums from FY09 to FY10. Increasing regular co-pays from $15 to $20 was considered, but it was felt that as some employees will already be seeing decreases in the take-home pay due to the lack of raises, employee unions would not likely agree to increase their health insurance costs. If the legislature allows municipalities to change health insurance benefits without collective bargaining, the Town could revisit that issue. He also said that the Town could reopen bargaining if it seemed that layoffs would be otherwise unavoidable.
Selection of polling site for April 12 town election
Mr. Gustus said continued use of the King Rail Reserve clubhouse as a polling place is not feasible. It is not well lit or heated and the bathroom facilities are not good. Town-side municipal buildings do not have the space to house voting. The former voting room in the Town Hall basement has been converted to office space. The South Fire Station is now unsuitable due to the vehicle exhaust system suspended from the ceiling. The Senior Center could accommodate two precincts but not all four. The only Town-owned facilities suitable for voting are the schools. Mr. Gustus has had many conversations about this topic with school officials, who wish to be cooperative. They suggested use of Lynnfield Middle School.
The School Department has arranged the schedule so no students will be on hand during most election days. There will be three election days in the next four years in which school will be in session: for the two state primaries in the presidential primary. The School Department is concerned use of a school as a polling site would disrupt school operations. They have asked for a plan by which disruption could be kept to a minimum.
The School Department has offered to close the Lynnfield Preschool on all election days, as the preschool is not subject to the 180-day requirement and time-in-learning requirements. The preschool could house on precinct for voting and the Senior Center the other three. But there is very little parking available at that site, and some of it is not close to the entrance. While the School Department prefers this option, Mr. Gustus believes a school gymnasium would be the preferred polling site, as it would limit the interaction between students and voters. The School Department is concerned that students will have to use the same corridor that will be used by voters. Two police officers would be placed at the polling site.
Mr. Gustus said changing polling places for each election would be costly due to the mandated mailing notice to every voting household and confusing to voters. He noted that there will be no school on April 12. If the Board of Selectmen and School Committee cannot agree on the use of a school as a polling site, the Board could take the matter to town meeting. He said that he is recommending use of the Middle School for all four precincts, and that the town clerk has made the same recommendation.
Selectman Bourque said that the gymnasium at the High School was used for voting for a number of years. He said the High School gymnasium offers a dedicated entrance that the Middle School gymnasium lacks. Mr. Gustus said the preference for the Middle School was driven by parking issues, due to the number of students who drive to the High School every day.
Selectman Bourque said that these discussions represent a breakthrough on this issue and expressed gratitude to the School Department for its willingness to allow voting in the schools. He said the issue should be put before the voters, as the townspeople spent millions of dollars to build the schools, and voting will not be a major problem.
On the motion of Selectman Bourque, seconded by Selectman Merritt, the Board voted unanimously to designate Lynnfield Middle School as the polling place for all four precincts for the April 12, 2010 town election.
Chairman MacKendrick said that this has been a difficult issue and said the school officials have tried to accommodate the Town’s needs. He said he respects that they have problems, and suggested that Town and school officials talk before an article on the issue is placed in the warrant.
Snow and Ice authorization
On the motion of Selectman Merritt, seconded by Selectman Bourque, the Board voted unanimously to authorize the expenditure of another $85,000 on snow and ice removal.
In other business
On the motion of Selectman Merritt, seconded by Selectman Bourque, the Board voted unanimously to authorize the expenditure of another $85,000 on snow and ice removal.
On the motion of Selectman Merritt, seconded by Selectman Bourque, the Board voted unanimously to approve the minutes of February 8, 2010, regular meeting and executive session.
On the motion of Selectman Merritt, seconded by Selectman Bourque, the Board voted unanimously to approve a one-day liquor license for the Knights of Columbus, Post Office Square, for April 3, 2010.
The Board agreed to close the warrant for the annual town meeting at the March 8, 2010 meeting.
The Board received a request from Rev. Dennis Bailey, pastor at Centre Congregational Church, requesting the use of Newhall Park for a sunrise service. Selectman Merritt was supportive of the idea but was concerned about parking and asked the Police Department to review the request. Chairman MacKendrick suggested that cars could also park at the Bali Hai lot if the owner granted permission, as the restaurant would not be open at that hour.
On the motion of Selectman Merritt, seconded by Selectman Bourque, the Board voted to approve the request subject to the approval of Chief Dunn. Chairman MacKendrick abstained from the vote, explaining that he is a member of the church.
Review of potential warrant articles
Mr. Gustus reviewed the potential warrant articles being prepared for the annual town meeting (see attached exhibit). He spoke briefly on articles that recur each year.
Other articles include the following:
* An article that would create a new revolving fund for the Recreation Commission that would allow the Commission to carry over up to $10,000 from the prior fiscal year.
* A Stormwater Management Bylaw article and an article on fines for enforcement of the bylaw. These articles have been carried forward from October, where they were not acted upon due to the lack of a quorum.
* An article approving the merger of vocational school districts. Selectman Bourque asked about the plan to allow Peabody to reap the benefit of the sale of the existing vocational school, which was built by the current member communities and not Peabody. Mr. Gustus said that the Department of Education has made this agreement a requirement, and said that the state would have the right to insist on a return of its investment into the building.
* An article granting the Board of Selectmen power over the school buildings for the purposes of voting.
* An article that would provide funds for a feasibility study on the Lynnfield High School building project. Mr. Gustus discussed this issue with Superintendent of Schools Hassett, who was going to speak to the School Committee members about whether they wished to go forward. Selectman Merritt suggested that the School Committee and superintendent be asked to attend the March 8, 2010 meeting to discuss the matter.
* An article that would extend the existing 20-year agreement between the Town and Reading Municipal Light Department. Selectman Bourque asked about raising payment in lie of taxes (PILOT) issues at this time. He asked if Lynnfield is getting equal treatment. Mr. Gustus said that Lynnfield is being treated equitably when compared with the other constituent towns, Wilmington and North Reading. However, the agreement is far more favorable to the host town of Reading. Still, Reading is not obligated under law to make any PILOT payment and has treated the Town of Lynnfield fairly, and makes a far larger PILOT than does the Peabody Municipal Light Plant.
* An article that would put in place a motorcycle control bylaw submitted by Police Chief Dunn that would require all motorcycles to have a sticker showing that its muffler was factory installed and meets federal pollution guidelines.
* An article with a proposed noise bylaw submitted by Police Chief Dunn that has been sent to town counsel for review. Selectman Merritt said this was based on the Salem noise bylaw, among others, and said that bylaws are scary things. He urged that the Board take time to reflect on its implications. Selectman Bourque suggested that it may be more appropriate to bring the bylaw before town meeting in the fall.
* An article drafted by a member of the Planning Board that would revise the zoning bylaws to create a municipal district and define it uses, requiring that cell towers be placed there. The Town could restrict the placement of cell towers to this district unless it could be demonstrated that universal coverage could not be achieved without placing a tower elsewhere. Selectman Bourque asked about case law on the subject, and Mr. Gustus said the bylaw will merely create another hurdle for communications companies. If they can prove they need a location, they can place them where they want regardless of local bylaws. He said this would likely have little impact on the pending application, but may assist the Town in future cases. He said the proposed article was just submitted and has not yet been seen by town counsel. He
said he will report further on it at the March 8 meeting. Chairman MacKendrick asked if the Town would collect the fee if a tower would be located on Town-owned land. Mr. Gustus said it would. Selectman Merritt asked that the Planning Board member who drafted the article be invited to discuss it at the March 8 meeting. Selectman Bourque said he hoped the entire Planning Board would review the article, and said he would rather see it submitted by the Board as a whole.
On the motion of Selectman Bourque, seconded by Selectman Merritt, the Board voted to adjourn the meeting at 9:50 p.m.
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