June 3, 2019 minutes

Chairman Crawford called the meeting to order at 7:00 p.m. He announced that the meeting was being recorded for cable television and led those assembled in the Pledge of Allegiance.

Review of FY 2018 audit, Melanson and Heath

Zackary Fentross of the Town’s independent audit firm, Melanson and Heath, and Town Accountant/Asst. Finance Director Julianne McCarthy were in attendance to review the FY18 audit.

Mr. Fentross said that for the first year, the Town undertook a Comprehensive Annual Financial Report (CAFR), which included much more financial information, with the report increasing from 51 to 113 pages. He said this demonstrated the Town’s commitment to financial transparency and that it has been submitted for evaluation by the Government Finance Officers Association for evaluation for a certificate of achievement.

He reviewed the various aspects of the CAFR and its inclusion of data such as demographic and economic information. He said the Town receives a “clean opinion,” which is the best rating a municipality can receive. The Town received the same rating last year.

Mr. Fentross reviewed the status funds, the Town Golf and Emergency Management Services enterprise funds, and governmental activities reports, as well as its capital assets. He reviewed the Town’s capital expenditures and related debt for athletic facilities, vehicle purchases and road improvements. He said the Town’s unfunded liability for pensions is related to the Essex Regional Retirement System’s being 55.4 percent funded, which is below average. He said some strong investment return by ERRS was offset by changes in the assumption on the discount rate.

Mr. Fentross said the Town’s Other Post-Employment Benefits (OPEB) obligation is $75 million, which was an increase of $38 million due to the implementation of Government Accounting Standards Bureau (GASB) 75. He said bond rating agencies are well aware of the effects of this implementation. He noted the Town has begun to put funds toward OPEB in a trust. Lynnfield is 1.2 funded; most municipalities are between zero and 10 percent funded. He said that the bond agencies like to see that communities have begun to fund the obligation, as Lynnfield has.

Mr. Fentross said that Lynnfield does a good job of collecting taxes and liening properties when necessary. He said That the Town’s unallocated fund balance is $4.67 million, about one million lower than last year. He said this is 8.13 percent of the Town budget; bond rating agencies like to see that number between 10 and 15 percent. The Town’s figure has been dropping since FY 2015. He said 8 percent is a strong position but the Town should seek to improve it if it seeks a AAA bond rating. He noted the Town’s revenues were $600,000 above estimates, and that $857,000 in unspent funds were returned to free cash, but that $2,306,000 in free cash was spent. Since free cash was used for one-time capital items, bond agencies understand the value gained.

Mr. Fentross said the Town is in good financial condition with a strong unassigned fund balance. He said no management letter was issued, with only 10 to 15 percent of municipalities in that category. H praised the work of Ms. McCarthy and her team.

Board members also praised Ms. McCarthy for her efforts and Sel. Dalton said completion of the CAFR was a major step. Mr. Fentross said that the CAFR process was no small undertaking and that Ms. McCarthy is always well prepared.

Vote to approve sale of $282,000 2.16 percent General Obligation Bond Anticipation Note, Series A

Vote to approve sale of $1,00,000 2.25 percent General Obligation Bond Anticipation Note, Series B

Bond authorizations and approvals for Town Treasurer, Town Clerk and Board of Selectmen

The Town is rolling over its short-term borrowing and the proposed motions required by bond counsel were provided to the Board. Ms. McCarthy said the first vote would roll over for one year the borrowing on the track and fields project. Three entities bid on this and BNY Mellon was the low bidder with 1.98 percent. $22,375 in interest will be due. The second vote was for the $282,0000 taxable bond for the purchase of Center Farm. $94,000 on that bond will be paid off this year. The low bidder was Newburyport Bank, at 2.16 percent. $6.057 in interest will be due.

MOTION by Selectman Dalton, duly seconded by Chairman Crawford: I move the Board approve the sale of a $282,000 2.16 percent General Obligation Bond Anticipation Note, Series A (Subject to Federal and Massachusetts Income Taxation) (the “Series A Note”) of the Town dated June 14, 2019, and payable June 12, 2020, to Newburyport Five Cents Savings Bank at par and accrued interest, if any.

I move to approve the sale of $1,000,000 2.25 percent General Obligation Bond Anticipation Notes, Series B (the “Series B Notes” and together with the Series A Note, the "Notes") of the Town dated June 14, 2019, payable June 12, 2020, at par and accrued interest, if any, plus a premium of $2,640.00.

Further, that in connection with the marketing and sale of the Notes, the preparation and distribution of a Notice of Sale and Preliminary Official Statement dated May 21, 2019, and a final Official Statement dated May 29, 2019, each in such form as may be approved by the Town Treasurer, be and hereby are ratified, confirmed, approved and adopted.

Further, that the Town Treasurer and the Board of Selectmen be, and hereby are, authorized to execute and deliver a significant events disclosure undertaking in compliance with SEC Rule 1502-12 in such form as may be approved by bond counsel to the Town, which undertaking shall be incorporated by reference in the Notes for the benefit of the holders of the Notes from time to time.

Further, that we authorize and direct the Town Treasurer to establish post issuance federal tax compliance procedures and continuing disclosure procedures in such forms as the Town Treasurer and bond counsel deem sufficient, or if such procedures are currently in place, to review and update said procedures, in order to monitor and maintain the tax-exempt status of the Notes and to comply with relevant securities laws.

Further Voted: that each member of the Board of Selectmen, the Town Clerk and the Town Treasurer be and hereby are, authorized to take any and all such actions, and execute and deliver such certificates, receipts or other documents as may be determined by them, or any of them, to be necessary or convenient to carry into effect the provisions of the foregoing votes.

The motion was approved 2-0 (Selectman Barrett absent).

Donation of canine dog “Ace” to Officer Barnes

“Ace,” the Town’s police dog, is now ready to be retired from active service. The Board adopted a policy by which retired canines can be donated to members of the department willing to care for the dog. Patrolman Raymond Barnes, who has served as Ace’s handler, has agreed to adopt the dog and care for it during its retirement.

MOTION by Selectman Dalton, duly seconded by Chairman Crawford: I move that the Board declare the police dog known as “Ace” to be surplus property and approve its donation to Patrolman Raymond Barnes, according to the agreement drafted by Town Counsel and approved by Patrolman Barnes, as amended. The motion was approved 2-0 (Selectman Barrett absent).

Appointment of liaisons

Chairman Crawford prepared a list of liaison appointments and presented it to the Board.

MOTION by Selectman Dalton, duly seconded by Chairman Crawford: I move that the liaison assignments be approved as presented. The motion was approved 2-0 (Selectman Barrett absent).

Use of facilities requests

a. July 4, Lynnfield Athletic Association road race

b. Common, Flag Day, June 14

c. South Fire, LHS Boys Soccer car wash

MOTION by Selectman Dalton, duly seconded by Chairman Crawford: I move that the Board approve the use of Town streets and the common for the Lynnfield Athletic Association July 4 road race. The motion was approved 2-0 (Selectman Barrett absent).

MOTION by Selectman Dalton, duly seconded by Chairman Crawford: I move that the Board approve the use of the common for the Flag Day ceremony on June 14 as proposed by the American Legion Post. The motion was approved 2-0 (Selectman Barrett absent).

MOTION by Selectman Dalton, duly seconded by Chairman Crawford I move that the Board approve the use of the South Fire Station lot for a car was by the Lynnfield High School baseball team to be held on September 15. The motion was approved 2-0 (Selectman Barrett absent).

Public hearing: Application for transfer of an On-Premises All-Alcoholic Beverages License from Bali Hai, Inc. to MDK Ventures LLC, 591 North Avenue, Door 12, Wakefield MA, for the site of the existing Bali Hai restaurant, 160 Moulton Drive.

The public hearing was declared open by Chairman Crawford. The hearing was duly posted and advertised in the Lynnfield Villager.

Attorney Theodore Regnante and the new owners of the property and the proposed manager attended to discuss the proposed transfer of the all-alcohol license to the new owner.

Atty. Regnante said that the proposed license transferee will file a business certificate application with the Town Clerk and is waiting for Board of Health approval of its plans. The proponent is seeking common victualler, automatic amusement and weekday entertainment licenses with the same provisions as the past licensee. Abutters were notified of the public hearing as required by law.

Atty. Regnante said MDK Ventures is a new LLC owned by Matthew and David Palumbo, who reside at 18 Bluejay Road. Steve Cuccinatti, their brother-in-law, is the proposed manager. Two of the three are TIPS certified, and the third is awaiting approval. All employees serving liquor will be TIPS certified. The LLC purchased the business in December for $600,000, and the property is being leased to the entity by 160 Moulton Drive, LLC.

He said the plan is for a family restaurant with American comfort food such as steak tips, burgers and chicken wings. Prices will be substantially lower than those at Market Street restaurants. He said the restaurant would occupy the same space of the Bali Hai restaurant, and the only exterior change will be the signage. Interior renovations will take a couple of months to complete. The hours of operation will remain unchanged: 11 a.m. to 1 a.m. Monday through Saturday, and noon to 1 a.m. on Sunday.

The landowners are also awaiting the results of an appeal in Land Court to a Board of Appeals denial of a proposal for a 23-unit apartment complex and modification of a non-conforming use. He said that it will take two to three years to litigate the case in land Court, and that one possibility of a negotiated settlement would be to restrict the apartments to senior housing. If the petitioners lose the case, they will continue with the restaurant. He said the Palumbo brothers are the sole owners, and that their father is not involved. He said they plan to upgrade the property.

Matthew Palumbo said that running a successful restaurant has always been a goal. The restaurant will be called American 160 Bar and Grill and will have a local pub feel, which he believes will fulfill a local need, due to Market Street’s prices and parking issues. He said the restaurant will cater to families. He discussed plans to renovate the property. He said the sound barrier blocking the view of the restaurant from Route 128 means the establishment must win repeat customers. He said Mr. Cucinatti has extensive restaurant experience with Orzo in Reading and North Andover, which his family owns. Mr. Cucinatti said that he has worked in the restaurant business for 12 years.

Chairman Crawford said that the Board expects all those serving alcohol to be trained by TIPS or ServSafe and that the business be respectful of neighbors about issues such as noise.

Seectman Dalton said that he has known the manager and owners for many years. Selectman Barrett said he knows Steven well and has confidence that it will be a well-run establishment,

Resident Wayne Perry asked what would happen to the liquor license if the apartments are approved as built. He was told the license could be sold or turned back into the Town.

No other members of the public wished to comment. Chairman Crawford closed the public hearing.

MOTION by Selectman Dalton, duly seconded by Selectman Barrett: I move the Board approve the transfer of an On-Premises All-Alcoholic Beverages License from Bali Hai, Inc. to MDK Ventures LLC, 591 North Avenue, Door 12, Wakefield MA, for the site of the existing Bali Hai restaurant, 160 Moulton Drive. Motion was approved unanimously.

Formation of Public Employee Committee and appointment of retiree representative

Chairman Crawford explained that the Town’s agreement with the Commonwealth’s Group Insurance Commission (GIC) to provide health insurance to Town employees and retirees is up for renewal.

For the Town to explore alternative health insurance providers or renew its agreement to be served by the GIC, under state law, the Town must bargain with a Public Employee Committee made up by representatives of the Town’s employee bargaining units, chosen by those units, whose votes are weighted by the number of full-time employees in the unit, and a retiree representative, chosen by the Board of Selectmen, whose vote is weighted at 10 percent.

The Town had contracted with a consultant to assist in the evaluation of the GIC and alternative health care insurance providers. To begin the process, the Board must vote to re-form the PEC and appoint a retiree representative. Judith Angelini, a retired Lynnfield High School teacher, served previously as the PEC retiree representative and was instrumental in providing retirees with information about the proposals and has continued to forward to retirees new information about GIC health insurance issues. She has agreed to be re-appointed.

MOTION by Selectman Dalton, duly seconded by Selectman Barrett: I move that the Board vote to re-form the Public Employee Committee and that the Town Administrator notify each employee bargaining unit and request that unit provide the name of a representative and alternate member of the committee. Motion approved unanimously.

MOTION by Selectman Dalton, duly seconded by Selectman Barrett: I move that the Board designate Judith Angelini as the retiree representative of the Public Employee Committee. Motion approved unanimously.

Declaration of fire vehicle as surplus property

Fire Chief Glenn Davis has asked that the Town declare Squad 4, a 1994 GMC Topkick with a rescue body on the back, as surplus property. The vehicle was acquired from the City of Lynn and no longer runs due to transmission issues. Its value is minimal and no other Town department has expressed interest in acquiring it for its use.

Chief Davis would like to donate this vehicle to Roger Baker and his Rehab-Five, a Peabody-based non-profit 501c3 charitable organization, which provides support and refreshments to local Fire Departments at the scene of incidents.

MOTION by Selectman Dalton, duly seconded by Selectman Barrett: I move that the Board declare the Fire Department vehicle known as Squad 4 as surplus property and approve its donation to the Rehab-Five non-profit 501c3 charitable organization. Motion was approved unanimously.

Town Administrator update

Town Administrator Robert Dolan gave very brief updates on a number of projects and issues. He said the CAFR report discussed tonight will be available on the Town’s website. He discussed recent meetings of the Strategic Planning Committee and the Recreational Path Committee, the Jordan Park and Lynnfield High School weight room projects, the request for proposals for an architectural firm to assist with the study of existing school space. He said Summer Street is being surveyed for the proposed improvements at the school crossings.

MOTION by Selectman Dalton, duly seconded by Selectman Barrett: I move that the Board adjourn. Motion was approved unanimously. The Board adjourned at 8:03 p.m.