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20240318 City Council Meeting Minutes City of Beverly CITY OF BEVERLY Regular City Council Meeting RECF1VED AND RECORDED Public Meeting Minutes CITY CLERK'S GFFICF Monday, March 18, 2024, 7:OOpm 20L� Rai,f � i0: 0 City Council Chambers, 191 Cabot St. Julie Flowers, City Council President, called the meeting to order at 7:OOpm. City Clerk, Lisa Kent, took attendance by roll call. Members Present: Hannah Bowen, Steven Crowley, Kathleen Feldman, Scott Houseman, Todd Rotondo, Danielle Spang, Matthew St. Hilaire, Brendan Sweeney, Julie Flowers Members Absent: None Sweeney led the pledge of allegiance. Presentations, Awards and Memorials Tim Flaherty, Director YMCA Flaherty and two of his colleagues presented on the YMCA's collaboration with the McPherson Youth Center and other YMCA programs and services. Darlene Wynne, Planning Director-Proposed Interlocal Agreement for on demand rideshare service (Order#068) Wynne stated this is a two-year pilot program. The hope is to start April 1 st. Wynne provided details on how the service works. This is primarily for the workforce. It costs $2 per ride. It is an app-based program, but there is also a phone number people can call. The service areas are Cherry Hill Business Park, Trask Lane/Folly Hill, The Cummings Center, Beverly Hospital, and the entire downtown area. This will fill the gaps in transit, increasing access to jobs in regions, and reducing congestion and emissions. St. Hilaire asked why Beverly wouldn't start its own Skipper or bus that serves the whole city. Wynne stated Beverly has the CATA bus. The reason a regional service is interesting is because a MassHire study shows that people do not always live and work in the same community. There is also a hope to connect to education centers. St. Hilaire asked if these exist in other communities or regions. Wynne confirmed there are a couple different ones and stated there is a conservation of costs with a shared system between communities. Public Hearings Order 9073-7:30pm-A request for a transfer for $150,000 from the Recreational Enterprise fund to be placed into a capital project fund to round out the necessary funding to complete the renovations of tennis courts at the Kimball Haskell and Cahill Parks The public hearing was opened. A motion to recess the hearing to 7:40pm was made and seconded. A vote was taken, and the motion carried (9-0). Presentations,Awards and Memorials Presentation on Proposed Interlocal Agreement for on demand rideshare service (Order #068) Sweeney asked about the funding source for the match. Wynne stated ARPA funds would be used. Mayor Michael Cahill stated this will only work longer term if it is supported at the state or federal level. This is to see if the demand will make it worth advocating for down the road. Public Hearings Order#073-7:30pm/7:40pm-A request for a transfer for $150,000 from the Recreational Enterprise fund to be placed into a capital project fund to round out the necessary funding to complete the renovations of tennis courts at the Kimball Haskell and Cahill Parks The public hearing was reopened. Finance Director Bryant Ayles gave an overview of the order. City Council Budget Analyst Gerry Perry spoke in favor of the appropriation. Houseman asked if the amount would be sufficient. Ayles stated the work that will be done will be coming from multiple funding sources. There is a commitment from the CPC to fund$250,000 of the project,there is another $100,000 that has been committed from the Lynch Park Trustees, and then to round out the project there is $67,000 bringing the project total to $417,000 which was the bid amount. Houseman proposed if a motion to approve the order was made,that the Council then approve the order with a condition that would require the administration to make ongoing reports back to the Council on benchmarks. Houseman stated it seems this kind of reporting is likely already being done or should be done internally anyway. Houseman referred to a handout he distributed with the proposed text of the motion reading as follows: "I move to approve Order on the condition that the Mayor and/or his staff shall report in writing on the status of the project to the Beverly City Council, within three months of the Order passing, and thereafter every three months until project completion.No funds authorized by this Order shall be expended by the Finance Director and/or City Accountant if this condition is not met, however expenditures may resume upon compliance. Further, said reports shall include a statement of project scope and benchmarks for the previous, and next, three months. Further,the reporting deadline may vary up to fifteen calendar days." Perry stated this is used at the state level but is not used often at the local level. Perry cautioned Councilors to stay in their lanes as the legislative branch. It is the Council's responsibility to determine if they would want to appropriate or write the checks for various projects, but once the Council makes that decision,then it is the responsibility of the executive branch to see it through. However, it is appropriate to ask for a status report. It is about transparency and keeping the Council aware of what is going on so that can be communicated to constituents. Ayles stated he wants to have that line of communication back and forth and has always enjoyed a good partnership with the Council in terms of getting things done in the city and trying to meet the needs of constituents. Ayles said he can fully appreciate the desire but is not sure about the process. When an appropriation is made,that is the authorization to legally enter into a Beverly City Council Meeting Minutes—March 18,2024 page 2 of 16 contractual agreement with a vendor. When the city enters into that agreement,part of the written obligation is if services get rendered, a payment needs to be made. The aspect of this language that would restrict payment for work or services that have been rendered when there is a contract with a vendor could be problematic. We would obviously work to not have that happen and try to meet the obligations of the contingency,but having a contingency appropriation is not an unencumbered right to obligate those funds. Ayles suggested out of an abundance of caution, looking at this with a legal lens just to make sure that it is something that is delivering what is intended while not having unintended consequences. It would be an added complexity to the appropriation process. Houseman stated he also sent this to Solicitor Williams to contemplate how it would go into operation. St. Hilaire stated he appreciates the spirit of the proposal but would be opposed to attaching these conditions to this particular order. As a Council, we do have oversight authority in financial matters. St. Hilaire stated as the Chair of Finance and Property Committee he would be happy to request something like that from the finance director. There is a capital improvement plan that comes out every year. St. Hilaire stated he does not know if attaching conditions like this is appropriate. Perry stated this is a policy decision. Order#017-8:OOpm-(continued from February 26, 2024 public hearing) A request that the City appropriates the sum of Fourteen Million Four Hundred Sixteen Thousand Seven Hundred Ten Dollars ($14,416,710)to pay costs of building and systems construction,renovations or improvements at the Beverly Public Library main branch, including site improvements and the payment of any other costs incidental or related thereto, and that to meet said appropriation,the Treasurer,with the approval of the Mayor, is authorized to borrow$14,416,710 under and pursuant to G.L. c.44, §7(1) or any other enabling authority, and to issue bonds or notes of the City therefore. The Mayor is authorized to take any other action necessary to carry out this project, including, but not limited to, applying for, accepting and expending any and all grants that may be available to the City to defray costs of this project. The amount authorized to be borrowed by this order shall be reduced to the extent the city receives any grant payments on account of such projects prior to the issuance of any bonds for related project. The public hearing was opened. A motion to recess the hearing to 8:1 Opm was made and seconded. A vote was taken, and the motion carried(9-0). Order#073-7:30pm/7:40pm-A request for a transfer for$150,000 from the Recreational Enterprise fund to be placed into a capital project fund to round out the necessary funding to complete the renovations of tennis courts at the Kimball Haskell and Cahill Parks Bowen stated she is glad this sort of conversation is happening and these are projects that definitely should happen. Bowen stated she is hoping for clarity on other ways this could have been funded or still could be funded and how to make sure the work actually gets done as quickly as possible. On the CPC side, these projects came up individually in 2015 and 2017 and again together in 2022. Bowen stated she is comfortable with making the transfer of that$67,000 to complete the project that is well-scoped and has been identified over many years but that she is less clear on the additional $83,000. Cahill gave a little bit of the history of the tennis court piece and stated the ask of the CPC was Beverly City Council Meeting Minutes—March 18,2024 page 3 of 16 several years ago,then the CPC approved a certain amount but when the project went out to bid it came in too high. Rotondo stated although he agrees with the spirit of the language Councilor Houseman is presenting, he does not know if this is necessary. Maybe it is the Council's job to periodically call for these projects to come before us. Money that was appropriated two to three years ago and has still not been used is depreciating and will not go as far on a project as it would have. Rotondo stated he does not know if this is the best way to do it. Sweeney requested Solicitor Williams' input. Williams stated she received this recently and has not had much time to review and analyze it. There are valid concerns about wanting information. Williams stated she would hope ultimately the Council and administration could come to some kind of arrangement where the Council is regularly getting the information it would like to see. The charter speaks to the process for the Council requesting and receiving information. Usually the Council does not need to resort to the formal process in Section 2-7. There are practical questions about what it means to not expend funds.Nothing in this order can de-appropriate the money, so this does not seem like the best mechanism and may raise concerns under the charter regarding the delegations of powers. Order#017-8:00pm-(continued from February 26, 2024 public hearing) A request that the City appropriates the sum of Fourteen Million Four Hundred Sixteen Thousand Seven Hundred Ten Dollars ($14,416,710)to pay costs of building and systems construction,renovations or improvements at the Beverly Public Library main branch, including site improvements and the payment of any other costs incidental or related thereto, and that to meet said appropriation, the Treasurer,with the approval of the Mayor, is authorized to borrow$14,416,710 under and pursuant to G.L. c.44, §7(1) or any other enabling authority, and to issue bonds or notes of the City therefore. The Mayor is authorized to take any other action necessary to carry out this project, including, but not limited to, applying for, accepting and expending any and all grants that may be available to the City to defray costs of this project. The amount authorized to be borrowed by this order shall be reduced to the extent the city receives any grant payments on account of such projects prior to the issuance of any bonds for related project. A motion to recess the hearing to 8:30pm was made and seconded. A vote was taken, and the motion carried(9-0). Order#073-7:30pm/7:40pm-A request for a transfer for $150,000 from the Recreational Enterprise fund to be placed into a capital project fund to round out the necessary funding to complete the renovations of tennis courts at the Kimball Haskell and Cahill Parks Houseman stated it would be appropriate for analysis to be done. If the complication is around freezing funds, we could strike that sentence and the language would still stand. Houseman stated his notion in submitting this is that it could be used as a template for future projects. Houseman used the library HVAC as an example, stating he and the public were blindsided by such a long period of time going and the change of the project. The Council went all this time without any input from the administration. This is a vehicle so that the Council is simply kept in the loop. It is not that we would change what the administration does. As a policy, it is the Council's responsibility and within our purview to get regular reports from the administration. That has not been happening. Bowen stated she appreciates the thinking there and would support some form of including a statement like that with appropriation orders. It may be difficult to get that language right for this Beverly City Council Meeting Minutes—March 18,2024 page 4 of 16 order. Bowen stated she is open to continuing that conversation and finding a way to do it. Bowen stated another tool at the Council's disposal for this particular request is to say we are comfortable with approving $67,000 for a well-scoped project with a timeline and bids and will be ready to approve a transfer of$83,000 if and when there are similar project scopes, timelines and a sense of accountability and/or when there is an update on the tennis court project. Bowen stated she is curious about other park improvements and the mechanism there and curious about the balances of funds and what the benefit is to make that transfer at this point and what the cost would be of not moving that portion of the money right now. Ayles stated that unfortunately he does not have the exact fund balance in front of him. A similar transfer was done a few years ago that facilitated a number of park improvements. It provided more timely flexibility in condensing some of those repair and playground needs so the recreation staff could address needs as they arose. There was a brief discussion of some parks and recreation budget line items. Feldman stated she appreciates the spirit of this but is comfortable with what the Council has now in terms of oversight and the ability to bring people in to speak to a project. This is a little bit reactionary to the library HVAC project which is completely understandable. Feldman stated she does not agree with putting more limitations or red tape. This type of contingency should be a bigger conversation and should not be added to this public hearing now as a pilot. St. Hilaire agreed and asked for this larger discussion about accountability and financial oversight to be decoupled from this public hearing for Order#073. St. Hilaire stated he would not want to hold this up any further. Sweeney stated he agrees with the spirit however disagrees with this particular mechanism. Sweeney said he would appreciate quick written updates more regularly from the administration on projects and commended the engineering department for their regular updates. The hearing was opened to members of the public. Paul Hansen-Mitev, 25 Vine Street, spoke about the importance of transparency in government. Houseman stated he understood what his colleagues said about not wanting to hold up the order. Houseman stated he does support this order and thinks it should move forward. The public hearing was closed, and the item was referred back to Committee on Finance and Property. Order#017-8:00pm/8:30pm-(continued from February 26, 2024 public hearing) A request that the City appropriates the sum of Fourteen Million Four Hundred Sixteen Thousand Seven Hundred Ten Dollars ($14,416,710)to pay costs of building and systems construction, renovations or improvements at the Beverly Public Library main branch, including site improvements and the payment of any other costs incidental or related thereto, and that to meet said appropriation,the Treasurer, with the approval of the Mayor, is authorized to borrow $14,416,710 under and pursuant to G.L. c.44, §7(1) or any other enabling authority, and to issue bonds or notes of the City therefore. The Mayor is authorized to take any other action necessary to carry out this project, including, but not limited to, applying for, accepting and expending any and all grants that may be available to the City to defray costs of this project. The amount authorized to be borrowed by this order shall be reduced to the extent the city receives any grant payments on account of such projects prior to the issuance of any bonds for related project. The public hearing was reopened. Beverly City Council Meeting Minutes—March 18,2024 page 5 of 16 A motion to recess the hearing to 8:45pm was made and seconded. A vote was taken, and the motion carried(9-0). Comments by Citizens Bonnie Jansson, 140 Rantoul Street#410, spoke about branches covering street signs and stated there are hardly any main street signs at intersections. At an intersection, there will be a sign for the side street,but not a sign indicating what the main street is. Jansson stated the community she came from had a pen you could pick up at the library that clicks and rotates through a display of phone numbers for the city. Dina Davidyan, 2 Elm Top Lane, spoke about her temple's social justice activities and her family and temple's role in the Beverly community. Davidyan said the Jewish community feels under attack. Davidyan stated what is presented in classrooms in Beverly is one-sided. Supplemental information provided by a teacher has no peer-reviews by teachers or principals. Davidyan said programs are needed in Beverly to bring awareness to what is going on around the country in regards to antisemitism and how to combat it. We are celebrating holiday services at the temple accompanied by the police and have invested in special security and training in case we are attacked. We are a community that lives under stress, fear, intimidation, and we are not allowed to speak freely. Davidyan expressed concern about the rise of antisemitic crimes. Davidyan called for law and order and city guidelines on antisemitism, hate crimes and violent protest. Davidyan stated there should be teeth behind policies and consequences for such actions. A motion for a brief recess was made and seconded. A vote was taken, and the motion carried(9- 0). The meeting recessed at 8:41pm. The meeting was called back to order at 8:47prn. Public Hearings Order#017-8:00pm/8:45pm-(continued from February 26, 2024 public hearing)A request that the City appropriates the sum of Fourteen Million Four Hundred Sixteen Thousand Seven Hundred Ten Dollars ($14,416,710)to pay costs of building and systems construction, renovations or improvements at the Beverly Public Library main branch, including site improvements and the payment of any other costs incidental or related thereto, and that to meet said appropriation,the Treasurer,with the approval of the Mayor, is authorized to borrow $14,416,710 under and pursuant to G.L. c.44, §7(1) or any other enabling authority, and to issue bonds or notes of the City therefore. The Mayor is authorized to take any other action necessary to carry out this project, including, but not limited to, applying for, accepting and expending any and all grants that may be available to the City to defray costs of this project. The amount authorized to be borrowed by this order shall be reduced to the extent the city receives any grant payments on account of such projects prior to the issuance of any bonds for related project. Cahill stated it is clear that we should have been before the Council long before this and should have had check-ins. We are very interested in learning and coming in regularly for project updates. It was never the intent not to. We will work through things going forward. Paul Banks from B2Q Associates,the project design firm, presented a chart on the life expectancy of various systems. Banks also spoke to the equipment maintenance and replacement costs of the different options. Larry Lessard from Achieve Renewable Energies, the firm on the geothermal wells, also spoke Beverly City Council Meeting Minutes—March 18,2024 page 6 of 16 regarding the life expectancy of the equipment. Lessard brought an example of the pipe which would be set in a steel casing underground. Sweeney stated the numbers he is looking at for the total replacement cost shows the in-kind gas system is the cheapest to replace, comparatively speaking. It seems part of the sell for why the City should pursue this geothermal option is that these component pieces that are a big chunk of the initial installation cost and are so much more expensive than installing a new in-kind gas system then do not need to be replaced. Thirty years from now, the city would not be replacing 100% of the geothermal system but a percentage of the system rather than replacing 100% of a gas system at thirty years with inflation. The reality is the gas system is cheaper to install than the geothermal, so where are those savings made up in terms of replacing the system later, energy cost savings or other things? Banks stated that goes beyond what he is here to respond to which is the length of time that the ground heat exchanger can be expected to last. The costs presented are for the HVAC equipment in and around the building. The ground source heat exchanger is not in there because it is expected to last 50-100 years. Sweeney asked if the City had to do this again thirty years from now, what we are looking at in terms of replacement for a geothermal system if some of the core components are going to last 50 plus years. Banks stated these numbers presented are considerably less than what the overall project entails. This only represents equipment replacement. Thirty years from now there may be other components of the system that need to be replaced like they do today that add to the cost, such as a need to update digital controls or other components of the building that need to be addressed for new code or safety issues, so it would be difficult to predict what the replacement would be. We are just looking at what the cost would be to replace the equipment. Sweeney stated he does not see, based on this information, the financial benefit that would close the gap in the net cost of the project to the City if all federal funding were achieved as presented and if the in-kind gas system is cheaper to replace and costs less to maintain. Cahill stated the ground heat exchanger is all the pipes outside,the well field outside and the pipes leading into the building. That is what is expected to last 50-100 years. The materials used to make the pipes will last. To the point about gas, we need to anticipate that future building codes eventually are not going to allow gas. There may be a point in the future where either the City is required or chooses not to run a gas system, if one were put in place, until it cannot go anymore. Commissioner of Public Services &Engineering Michael Collins stated the actual numbers are hard to predict. In 2023, we looked at a 27 year life cycle because 2050 is when the grid is supposed to have renewable energy. In full disclosure,there would need to be an in-kind boiler replacement just after that 27 year period where if the 2050 plan were factored in, it would blow up the in-kind option completely and not look as favorable. We are looking through an imperfect lens. This looks like in 19 years we are replacing ground source heat pumps,but in the future we would be replacing components. The individual components we would be replacing like the heat pumps are easy to replace and won't all die at the same time. One of the major takeaways is that with the current system, at its best, about 90-95% of the energy put in comes back in the form of heat. When we talk about heat pumps, it is a 300-500%return on that energy, and going ground source adds even more benefits. In general,the ground source is a bulletproof component of it. Beverly City Council Meeting Minutes—March 18,2024 page 7 of 16 At the police station, we seem to have found the only weakness ever. Where the pipe makes a 90 degree bend 5 feet below the surface,the contractor that installed it did not leave enough clearance, so there were a couple leaks. We asked the teams we have been working with how common of a problem it is, and out of thousands of installations,there was one instance of a single well at a residential installation that had to be replaced but never a commercial well. Our general contractor has been fantastic at the police station. They have taken full ownership three years after construction and will be doing some more testing to make sure the technology we paid for is fully serviceable. While there have been some issues, it has not cost the City any money. The amazing thing about geothermal is even though we had some wells that were not serviceable for periods of time, and during some of that time the outdoor air temperature was minus 15 degrees, inside the building nobody ever knew. The system continued to perform flawlessly. It was a workmanship error on the police station wells, which is almost unheard of in the industry and very easy to avoid going forward. Cahill gave an update on the IRA [Inflation Reduction Act] direct pay the City is counting on to help fund this project. Almost two weeks ago,the U.S. Treasury came out with final guidance on direct pay. The team at Deloitte who the City has retained were able to confirm that this project is eligible for at least a 40%credit, meaning 40% of eligible costs, and that would come to just about$4.3 million. What remains a wild card is how to deal with domestic content for materials, goods,parts, equipment, etc. We are not counting on that extra 10% of a credit. That credit could be worth up to another million dollars. We may or may not qualify for it and are waiting for farther guidance to come out from the U.S. Treasury. Cahill highlighted other tax-exempt entities who are planning on direct pay including Massport, SUNY, Miami-Dade County, and the Timpanogos Special Service District(a Utah wastewater treatment district). The pre-construction manager from Consigli stated she is working with at least six different tax- exempt entities in government or higher education that are expecting direct pay. Another representative from Consigli stated there are five large construction manager firms in the industry that are working with tax-exempt clients who are trying to leverage this opportunity. Lessard echoed that the direct pay from the IRA is having a tremendous influence on the acceptance of geothermal and other renewable energy. Cahill gave an update on the total project cost, estimated around$18 million. Cahill stated he is expecting after grants, incentives, the IRA direct payment,National Grid credits and a free cash transfer request later this year,the cost to the Beverly taxpayer would be closer to $10.3 million. Then subtract off of that the roughly$700,000 reduction in the project cost, it will be down to $9.6 million. The goal is to not to spend all of the owner's contingency and hold on to $1.6 million, which would bring it down to $8 million.Now the project cost to the taxpayers of Beverly is $8 million and includes things that have to be done at this building that are not part of the HVAC system like the insulation, a new roof on part of the building, ADA upgrades, and increasing energy efficiency. Now it is much more manageable, and the library gets a vastly superior heating and cooling system. We could earn another 10% from the IRA payment,up to $1 million,but we do not know yet if we can earn that and have not counted on it. The public hearing was opened to members of the public. Anna Langstaff, 47 Williams Street, stated she is here to talk about the project as a private citizen with a unique perspective because she worked at the library for many years and retired from library director position in 2020. Langstaff said the mayor and city officials have made a Beverly City Council Meeting Minutes—March 18,2024 page 8 of 16 very compelling case for the replacement of the library's HVAC system. Langstaff stated she understood there were questions when the price was different and it seems like a lot of questions and concerns have been addressed. Langstaff expressed disappointment that members of the City Council are not behind this project as presented. The library project needs more than a band-aid approach or the bare minimum. In the short term it may cost less, but it will cost more for the City in the long term. As a community, it is important to plan for the future now and not kick the can down the road. Langstaff stated she has great respect for Mike Collins and Bryant Ayles and the way they come to decisions. The City relies on them for their expertise and knowledge. Langstaff said, with all due respect, it is a puzzle why some City Councilors are still questioning this proposed plan. Paul Hansen-Mitev, 25 Vine Street, noted that as a point of equity, Beverly has two library branches. We are fortunate in Ward 6 for the amount of support that created the Farms branch library. The downtown library deserves the same. Even though there is common use of the internet, books still matter, and public spaces where people can come together and discuss important ideas matter. Having a quality ventilation system is also a way of welcoming the community and making a place where people do not feel marginalized. Perry stated the City needs to use the vast majority of free cash over two to four years as well as utilize stabilization funds in order for this to be successful. Perry stated he is looking at the library, city hall,the McPherson Center, and the Dollar Store building. This has to work with all four projects. Perry stated initially he would not have recommended this from a strictly financial standpoint but there have been some changes. Perry stated he can see a pathway financially. Perry stated he is concerned about the IRA money but is more comfortable than before. If the mayor commits to using stabilization funds and free cash, even if the IRA money does not come through, it is possible, if we commit like we did with the police station project,that we can afford to do all four of these projects and stay within the debt capacity of$30-31 million. Perry stated he cannot speak to if Councilors have other priorities but there is a possible path to do this. It is similar in nature to the strategy when the police station was built. Perry stated if the Council wants to do it and do the other projects, it is possible within the debt capacity. Flowers stated this public hearing will be continued to a special meeting on April 8 and opened the floor to some questions from councilors. Rotondo asked if the IRA$4.3 million has been confirmed to actually be reimbursed. Rotondo also asked,while the issues at the police station have not cost anything to the City yet,how long the work is under warranty. If it is faulty,will there be problems another ten years down the road? Cahill spoke to the direct payment, saying he would distribute the report from Deloitte that has calculated the City will earn a tax credit in the amount of$4.3 million, without counting the possibility of an additional 10% for domestic content. It is a tax credit, so the City would have to do the work then file for the tax credit but would meet the requirements. It is as guaranteed as any tax credit. The City and the project are categorically eligible. Collins stated any item in a building project like the police station typically has a one-year warranty. The pipe itself has a 50-year warranty, notwithstanding installation of the pipe. We are outside of the warranty for all of this,but the construction manager has committed to finding out where the leak was. Now we know everything is functioning with that circuit and we do not have any leaks. The contractor wants to dig four more holes to make sure the other circuits are in good condition. We are in good hands and have been treated very well. The original library project Beverly City Council Meeting Minutes—March 18,2024 page 9 of 16 ended in court. Someone had asked about that at a previous meeting, and we did sue the company that worked on that addition. The other money we are getting here,the federal money, National Grid incentives and grants bring the costs down, so we are very close to the in-kind replacement cost, and it will be so much better. We are essentially heating the building for free forever because we are taking over the heating and making it electric, and at the end of the day it will use less electricity than the building uses today. Sweeney asked if the City as a local government does not pay taxes to the federal government then how does the City have some level of certainty that the funding will be there for the anticipated $4.3 million IRA funding. It seems like the federal government is going to have to appropriate funding for these large entities and projects, a significant appropriation,potentially more than was initially outlined in the Inflation Reduction Act. Sweeney asked if this is funding that there needs to be an additional appropriation of Congress to finance, money that Congress has already appropriated, or some other funding mechanism. Sweeney stated that without this funding,there is a huge gap in terms of installing an in-kind gas replacement system and the proposed geothermal replacement. Cahill stated the life cycle cost analysis showed significant cost savings in dollars over the life cycle of the systems if we go with geothermal. Cahill stated he recognizes that is not money available up front to build the project but it is savings that repeat year over year, so crediting that to the project shrinks the delta even more. Cahill stated he will take the question to Deloitte because they as a company policy do not attend hearings at the local level. With tax credits to tax-paying entities,there has to be a calculation by the federal government that a certain amount of revenue will be forgone by the federal government by companies taking advantage of tax credits, and on the flip side that will lead to economic investment, growth, and more revenues coming to the federal government. Cahill stated he thinks it is a similar calculation that has been used here but can get the answer to that question. St. Hilaire stated he views all the variables with this project as risks. It is clear that the lower cost up front is the in-kind replacement. Why wouldn't the wisest option be to take the lowest cost, get this project done and then move on to other priorities? Why go to such great lengths to show this is the best option and take on all these risks when the City can just do the lower-cost option right now and move on to city hall, the McPherson Center and all the other big things we have to do? Cahill stated this project is one that the City probably would have difficulty doing again because of all the resources that are available at this time for a clean energy project. There is a lot of learning here because Beverly has six schools that will need new roofs and new HVAC systems. We don't know what will be the affordable way to do those future projects. This is a first-round of the IRA. Cahill stated he does not see risk with all the other sources of funding because many are in-hand or committed. Cahill stated he is less concerned with the pieces that will continue to move as the project is refined; it really comes down to the direct pay. Cahill said he has gotten a much greater comfort level with direct pay based on meetings,talking with Deloitte, getting an understanding of the history of how tax credits have worked in this country, and seeing how widespread the commitment is that is coming from many sectors to ensure these programs continue. Bowen stated she is looking to get back to the high-level big picture prioritizations and really think about the opportunity costs of any money being spent on this capital project instead of other possible projects. Bowen said that when this came forward in January she was expecting to Beverly City Council Meeting Minutes—March 18,2024 page 10 of 16 see where some of the decision points were and what value was prioritized at those decision points and that is not what the process has felt like. Bowen stated she does not want the Council to be making the decision just on a big package where we do not understand the paths taken to get there. Feldman stated when it comes to projects like this with a large dollar number associated with federal tax credits versus state tax credits,taxpayers in Massachusetts usually get back far less than the dollar that they pay on these projects. Feldman stated she is very interested anytime there is a project that has tax money the City can get back for Massachusetts taxpayers at the federal level. Federal taxes, no matter what, are not going down. Feldman stated she tries to look at it through that lens and that by choosing this option we can get more money back for taxpayers. Houseman stated he wants to support this project because there is a climate emergency but also needs to be confident that all the numbers work. Houseman stated he cannot really get to the point of supporting the proposal until seeing that the administration has laid out a path that explains how all four of these projects fit together financially for the City and for the taxpayers. Houseman asked for an update to the capital expenditure plan that reflects lessons learned from this process and showing how it reflects the City's stated commitment and existing plan to convert municipal facilities to more energy efficient facilities including ground sources heat pumps. Houseman suggested, if not a revised full plan, at least a side letter reflecting an update to the capital expenditure program that acknowledges what we are going through here. Ayles stated he appreciates the comments and that seems like a reasonable request that will be discussed in the near future. Ayles commented on the conversation about the projects all fitting together,noting there was a slide in the presentation at the first part of the public hearing, where the layering of all the different funding sources for all the projects and how they fit together to arrive at a management debt load was laid out. Things have only gotten better in terms of the financial picture since then. When showing these numbers,we tend to be on the conservative side of things. For example, we already know the $18.3 million is coming down. We have a track record of being conservative when it comes to presenting numbers so that we do not put the taxpayers' resources at risk. A motion to continue the public hearing to April 8 at 7:00pm was made and seconded. A vote was taken, and the motion carried(9-0). A motion for a recess was made and seconded. A vote was taken, and the motion carried(9-0). The meeting recessed at 10:09pm. The meeting was called back to order at 10:12pm. Acceptance of Minutes of Previous Meeting Regular City Council Meeting Minutes-March 11, 2024 A motion to approve was made and seconded. A vote was taken, and the motion carried (9-0). Communications from His Honor the Mayor Order#091-A transfer of$1,135,505 from City's certified free cash balance to be placed into the City's stabilization fund and a transfer of$227,101 from the free cash balance to be placed into the City's OPEB trust Referred to Committee on Finance and Property. Beverly City Council Meeting Minutes—March 18,2024 page 11 of 16 Order#092-A transfer of$1,000,902.89 from the city's debt stabilization fund to be placed into the City's Library Improvement capital fund Referred to Committee on Finance and Property. Order#093-A transfer of$2,500,000 from the city's certified free cash balance to be placed in the capital fund 5391 which was established for the acquisition of the parking lot and building known as the Dollar Store lot Referred to Committee on Finance and Property. Order#094-A transfer of$2,045,000 from the city's certified free cash balance to be placed into the City's Library Improvement capital fund. These funds will be used to partially offset the requested loan order (Order#017) for the building and system improvement work for the main branch library Referred to Committee on Finance and Property. Order#095-A transfer request for$1,000,000 to fund additional road and sidewalk work throughout the City. $750,000 of the transfer be from the City's certified cash balance and the remaining$250,000 be transferred from a variety of capital project funds Referred to Committee on Finance and Property Order#096-A $2,680 grant from the New England Chapter of the Society of Fire Protection Engineers to be used to purchase fire investigation, safety, training, and prevention equipment Referred to Committee on Finance and Property. Order#097-A four-year four-month grant totaling $295,649 from the Massachusetts Bay Transportation Authority Supplemental Transportation Program to provide transportation services in cities and towns within the MBTA service district Referred to Committee on Finance and Property. Order#098-Appointments-Jason Consalvo, Kevin Grant and Christopher Wrenn to serve on the Economic and Community Development Council Referred to Committee on Legal Affairs. Order#099-Appointment-Donna Musumeci to serve as the Greater Beverly Chamber of Commerce's representative on the Economic and Community Development Council Referred to Committee on Legal Affairs. Order#100-Lease Agreement; City of Beverly and Beverly Airport Commission for 0 LP Henderson Road (portion of parcel ID 90-4) Referred to Committee on Legal Affairs. Order#101-Proposed Amendments to City Ordinance Section 15-37 Human Rights Committee; Amendments to Modify Committee Member Qualifications Referred to Committee on Legal Affairs. Communications from other City Officers and Boards Order#065A-Councilor Houseman-A motion to reconsider the vote on Order#065-2024 at the Regular City Council Meeting held on March 11, 2024, regarding a Livery License for Alba Boston Limo, LLC Beverly City Council Meeting Minutes—March 18,2024 page 12 of 16 A motion to reconsider was made and seconded. A vote was taken, and the motion carried(9-0). Order#065 was referred to Committee on Legal Affairs. Order#102-Councilor Rotondo and President Flowers-Submission of School Committee Finance and Facilities Meetings recap October through December 2023 (2nd Quarter Report for Fiscal Year 2024) A motion to receive and place on file was made and seconded. A vote was taken, and the motion carried(9-0). Communications,Application and Petitions Order#103-Department of Public Utilities-Notice of filing,public hearing, and request comments A motion to receive and place on file was made and seconded. A vote was taken, and the motion carried (9-0). Order#104-National Grid-A petition WO#9000022943 to install approximately 40 feet of new 12" gas main at 46 River Street Referred to Committee on Public Services. Order#105-National Grid-#30665817-A petition to install 1 JO pole on Lothrop Street Referred to Committee on Public Services. Unfinished Business from a Previous Meeting Order#046-Order Proposing Amendments to City Ordinances, Chapters 1,7, 15,26,33,58,69,105,113,124,136,155,192,210,215,227,232,249,253,274,282 striking or amending provisions to: modernize and clarify language; remove obsolete language; correct typos; recognize use of technology; ensure gender neutrality; achieve consistency with city charter provisions and state law or policy; and address constitutionality concerns Flowers stated this item will remain as unfinished business. A motion to break for committee work was made and seconded. A vote was taken, and the motion carried (9-0). The meeting recessed at 10:27pm. The meeting was called back to order at 10:47pm. Reports of Committees Finance and Property Order#073-A request for a transfer for$150,000 from the Recreational Enterprise fund to be placed into a capital project fund to round out the necessary funding to complete the renovations of tennis courts at the Kimball Haskell and Cahill Parks A motion to approve was made and seconded. Bowen moved to amend it to be a transfer of$67,000. Spang seconded for discussion. Bowen agreed it is a worthy project and well-scoped but it seems the $83,000 was tacked on to make it a round number of$150,000. Bowen stated she would like more information on that. Beverly City Council Meeting Minutes—March 18,2024 page 13 of 16 Bowen stated she wants to support the overall funding and the first step is to do the $67,000. A vote was taken on the amendment, and the motion failed(1-8, Bowen in favor). A vote was taken on the main motion, and the motion carried (9-0). Order#091-A transfer of$1,135,505 from City's certified free cash balance to be placed into the City's stabilization fund and a transfer of$227,101 from the free cash balance to be placed into the City's OPEB trust(Set public hearing) A motion to set the public hearing for April 1 at 7:45pm was made and seconded. A vote was taken, and the motion carried(9-0). Order#092-A transfer of$1,000,902.89 from the city's debt stabilization fund to be placed into the City's Library Improvement capital fund A motion to set the public hearing for April 1 at 8:15pm was made and seconded. A vote was taken, and the motion carried(9-0). Order#093-A transfer of$2,500,000 from the city's certified free cash balance to be placed in the capital fund 5391 which was established for the acquisition of the parking lot and building known as the Dollar Store lot A motion to set the public hearing for April 1 at 8:45pm was made and seconded. A vote was taken, and the motion carried(9-0). Order#094-A transfer of$2,045,000 from the city's certified free cash balance to be placed into the City's Library Improvement capital fund. These funds will be used to partially offset the requested loan order(Order#017) for the building and system improvement work for the main branch library A motion to set the public hearing for April 1 at 8:30pm was made and seconded. A vote was taken, and the motion carried(9-0). Order#095-A transfer request for$1,000,000 to fund additional road and sidewalk work throughout the City. $750,000 of the transfer be from the City's certified cash balance and the remaining$250,000 be transferred from a variety of capital project funds Referred to Committee on Finance and Property A motion to set the public hearing for April 1 at 8:00pm was made and seconded. A vote was taken, and the motion carried (9-0). Order#096-A $2,680 grant from the New England Chapter of the Society of Fire Protection Engineers to be used to purchase fire investigation, safety,training, and prevention equipment A motion to approve was made and seconded. A vote was taken, and the motion carried(9-0). Order#097-A four-year four-month grant totaling$295,649 from the Massachusetts Bay Transportation Authority Supplemental Transportation Program to provide transportation services in cities and towns within the MBTA service district A motion to approve was made and seconded. A vote was taken, and the motion carried (9-0). Legal Affairs Order#087-Councilor Spang-A Proposed Amendment to Ordinance 270-49, Handicapped parking on Broadway A motion to approve the first vote of the proposed ordinance change was made and seconded. A Beverly City Council Meeting Minutes—March 18,2024 page 14 of 16 vote was taken, and the motion carried (9-0). Order#032-Councilor Rotondo and Councilor Sweeney-A letter regarding the 2023 Committee on Legal Affairs ordinance review process A motion to receive and place on file was made and seconded. A vote was taken, and the motion carried(9-0). Order#068-Planning Director, Darlene Wynne-A proposed Interlocal Agreement for on- demand rideshare service between the City of Salem, Town of Danvers, and the City of Beverly A motion to approve was made and seconded. A vote was taken, and the motion carried(9-0). Order#081-Reappointments-Wendy Pearl, 21 Morningside Drive and Mr. John(Jay) Leahy, 12 Canter Brook Lane, Hamilton to serve on the Beverly Historic District Commission as well as a request to approve a residency waiver for Mr. Leahy = A motion to approve the residency waiver was made and seconded. A vote was taken, and the motion carried (9-0). A motion to approve the reappointment of Mr. Leahy was made and seconded. A vote was taken, and the motion carried(9-0). A motion to approve the reappointment of Ms. Pearl was made and seconded. A vote was taken, and the motion carried(9-0). Order#085-Reappointment-Jonathan Cassidy, 12 Michael Road to serve as constable of the City of Beverly for the express purpose of serving Civil Process A motion to approve was made and seconded. A vote was taken, and the motion carried(9-0). Public Services Order#080-Appointments-Krystal Demaine PH.D., 4 Larcom Avenue, Eric S. Roberts, 32 Dane Street Apt 1L, Becky Blizard 33 Central Street and Lindsay Mae Barth 675C Hale Street to serve on the Beverly Cultural Council A motion to approve was made and seconded. A vote was taken, and the motion carried(9-0). Order#082-Appointment-Scott Freeman, 3 Oceanside Drive and Lauren DiMarco, 32 Pierce Avenue to serve on the Beverly Harbor Management Authority Kent stated for the record that Ms. DiMarco withdrew her name from this appointment. A motion to approve the appointment of Scott Freeman was made and seconded. A vote was taken, and the motion carried (9-0). Order#083-Appointments-City of Beverly Representatives-Lisa Chandler, City Engineer, Michael P. Collins, Commissioner, Public Services and Engineering, James Butler, Building Commissioner, Municipal Inspections, David Spidaliere, Conservation Agent, Kenneth Clawson, Assistant Planning Director and Bruce Doig, Director of Parks, Recreation and Community Services. Citizen Representative,Natalie Pommersheim, 50 Boyles Street to serve on the Stormwater Management Advisory Committee A motion to approve was made and seconded. A vote was taken, and the motion carried(9-0). Order#084-Appointment-Ms. Diantha Phothisan, 90 Corning Street#2 to serve on the Economic and Community Development Council A motion to approve was made and seconded. A vote was taken, and the motion carried(9-0). Beverly City Council Meeting Minutes—March 18,2024 page 15 of 16 Order#104-National Grid-A petition WO#9000022943 to install approximately 40 feet of new 12" gas main at 46 River Street A motion to set the public hearing for April 16 at 7:30pm was made and seconded. A vote was taken, and the motion carried(9-0). Order#105-National Grid-#30665817-A petition to install 1 JO pole on Lothrop Street A motion to set the public hearing for April 1 at 7:20pm was made and seconded. A vote was taken, and the motion carried(970). A motion to adjourn was made and seconded. A vote was taken, and the motion carried (9-0). The meeting adjourned at 11:09pm. Beverly City Council Meeting Minutes—March 18,2024 page 16 of 16 Matthew J. St. Hilaire-Chair Julie R. Flowers Brendan S. Sweeney Finance and Property/City Council Committee of the Whole Meeting Minutes Monday, March 18, 2024, 7:OOPM Within the Confines of the City Council Meeting City Council Committee Room,311 Floor, Beverly City Hall, 191 Cabot St. St. Hilaire called the meeting to order at 10:28pm. Members present: Brendan Sweeney, Julie Flowers, Matthew St. Hilaire Order Date to Description Action Taken Number Committee A request for a transfer for$150,000 from the Recreational Enterprise fund to be placed into a capital project fund to Recommend the #073 3/18/2024 round out the necessary funding to complete the Council approve renovations of tennis courts at the Kimball Haskell and (3-0) Cahill Parks Earmark-A$200,000 earmark from the Massachusetts Marketing Partnership within the Executive Office of Labor #077 3/11/2024 and Workforce Development to be used for HVAC Hold improvements and weatherization for the Beverly Public Library Earmark-A$100,000 earmark from the Massachusetts Marketing Partnership within the Executive Office of Labor #078 3/11/2024 and Workforce Development to be used for HVAC Hold improvements and weatherization for the Beverly Public Library Earmark-A$1,000,000 earmark from the United States #079 3/11/2024 Department of Housing and Urban Development to support Hold the main library HVAC system replacement and weatherization A transfer of$1,135,505 from City's certified free cash Recommend the balance to be placed into the City's stabilization fund and a Council set the #091 3/18/2024 transfer of$227,101 from the free cash balance to be placed public hearing into the City's OPEB trust for April 1 at 7:45 m 3-0 Recommend the A transfer of$1,000,902.89 from the city's debt Council set the #092 3/18/2024 stabilization fund to be placed into the City's Library public hearing Improvement capital fund for April 1 at 8:15 m 3-0 A transfer of$2,500,000 from the city's certified free cash Recommend the balance to be placed in the capital fund 5391 which was Council set the #093 3/18/2024 established for the acquisition of the parking lot and public hearing building known as the Dollar Store lot for April 1 at 8:45 m 3-0 Order Date to Description Action Taken Number Committee A transfer of$2,045,000 from the ciy's certified free cash Recommend the balance to be placed into the City's Library Improvement Council set the #094 3/18/2024 capital fund. These funds will be used to partially offset the public hearing requested loan order (Order#017) for the building and for April 1 at system improvement work for the main branch library 8:30pm(3-0) A transfer request for$1,000,000 to fund additional road Recommend the and sidewalk work throughout the City. $750,000 of the Council set the #095 3/18/2024 transfer be from the City's certified cash balance and the public hearing remaining$250,000 be transferred from a variety of capital for April 1 at project funds Referred to Committee 8:00pm (3-0) A$2,680 grant from the New England Chapter of the Society of Fire Protection Engineers to be used to purchase Recommend the #096 3/18/2024 fire investigation, safety, training, and prevention Council approve equipment (3-0) A four-year four-month grant totaling $295,649 from the Massachusetts Bay Transportation Authority Supplemental Recommend the #097 3/18/2024 Transportation Program to provide transportation services Council approve in cities and towns within the MBTA service district (3-0) The meeting adjourned at 10:37pm. Beverly City Council Committee on Finance and Property Meeting Minutes—March 18,2024 Page 2 of 2 Scott D. Houseman-Chair Todd C. Rotondo Kathleen M. Feldman Legal Affairs/City Council Committee of the Whole Meeting Minutes Monday, March 18, 2024, 7:OOPM Within the Confines of the City Council Meeting City Council Chambers, 3"d Floor, Beverly City Hall, 191 Cabot St. The meeting was called to order at 10:28pm. Members resent: Todd Rotondo, Kathleen Feldman, Scott Houseman Order Date to Description Action Taken Number Committee Councilor Houseman-A letter regarding the Subcommittee on Legal #034 1/16/2024 Affairs initiatives in the new term Hold #064 2/20/2024 City Clerk-A Livery License renewal application for BAT Hold Enterprises, LLC located at 19 Beckford Street #065 3/18/2024 City Clerk-A Livery License-A new Livery License application for Hold Alba Boston Limo, LLC located at 285 Cabot Street Planning Director, Darlene Wynne-Proposed Amendments to the City of Beverly Ordinances Section 113-2 Possession or consumption on public ways, in public places or on private property; #067 2/20/2024 Section 192-61 Sandwich board signs; Section 253-24 Signs, Hold awnings and displays; Section 253-35 Public meetings in streets; temporary stands for selling goods Planning Director, Darlene Wynne-A proposed Interlocal Agreement Recommend #068 2/20/2024 for on-demand rideshare service between the City of Salem, Town of the Council Danvers, and the City of Beverly approve (3-0) Appointments-Jason Consalvo Kevin Grant and Christopher Wrenn #098 3/18/2024 to serve on the Economic and Community Development Council Hold Appointment-Donna Musumeci to serve as the Greater Beverly #099 3/18/2024 Chamber of Commerce's representative on the Economic and Hold Community Development Council Lease Agreement; City of Beverly and Beverly Airport Commission Recommend #100 3/18/2024 for 0 LP Henderson Road (portion of parcel ID 90-4) the Council approve 3-0 Proposed Amendments to City Ordinance Section 15-37 Human #101 3/18/2024 Rights Committee; Amendments to Modify Committee Member Hold Qualifications Discussion on #065 Houseman informed the applicant who was present at the meeting that the landlord of 285 Cabot Street submitted a letter stating that he was not giving permission for the livery vehicle to be parked at 285 Cabot Street. The applicant, Martin Nonaj, stated the landlord had told him it would be okay to park there. Nonaj stated he may be able to use the Story Avenue address instead. Houseman requested the applicant either get a new letter from the landlord giving permission to park or submit a new application for a different address with insurance and RMV paperwork that matches the new address. The meeting adjourned at 10:44pm. Hannah L. Bowen-Chair Steven M. Crowley Danielle M. Spang Public Services/City Council Committee of the Whole Meeting Minutes Monday, March 18, 2024, 7:OOPM Within the Confines of the City Council Meeting City Council Chambers, 3"d Floor, Beverly City Hall, 191 Cabot St. Bowen called the meeting to order. Members present: Steven Crowley, Danielle Spang, Hannah Bowen Order Date to Description Action Taken Number Committee Appointments-Krystal Demaine PH.D., 4 Larcom #080 3/11/2024 Avenue,Eric S. Roberts, 32 Dane Street Apt 1L, Becky Recommend the Blizard 33 Central Street and Lindsay Mae Barth 675C Council approve (3-0) Hale Street to serve on the Beverly Cultural Council Appointment-Scott Freeman, 3 Oceanside Drive and Recommend the #082 3/11/2024 Lauren DiMarco, 32 Pierce Avenue to serve on the Council approve the Beverly Harbor Management Authority appointment of Scott Freeman 3-0 Appointments-For City of Beverly Representatives-Lisa Chandler, City Engineer, Michael P. Collins, Commissioner,Public Services and Engineering, James Butler, Building Commissioner, Municipal Inspections, #083 3/11/2024 David Spidaliere, Conservation Agent,Kenneth Recommend the Clawson, Assistant Planning Director and Bruce Doig, Council approve (3-0) Director of Parks, Recreation and Community Services. Citizen Representative,Natalie Pommersheim, 50 Boyles Street to serve on the Stormwater Management Advisory Committee Appointment-Ms. Diantha Phothisan, 90 Corning Street #084 3/11/2024 #2 to serve on the Economic and Community Recommend the Council approve (3-0) Development Council National Grid-A petition WO#9000022943 to install Recommend the #104 3/18/2024 approximately 40 feet of new 12" gas main at 46 River Council set the public Street hearing for April 16 at 7:30 m 3-0 Recommend the #105 3/18/2024 National Grid-#30665817-A petition to install 1 JO pole Council set the public on Lothrop Street hearing for April 1 at 7:30 m 3-0 The meeting adjourned.