2011-02-22Regular Meeting
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Beverly Meeting Minutes
From: Kathy Connolly [kconnolly @beverlyma.gov]
Sent: Wednesday, March 16, 2011 4 :07 PM
To: minutes @beverlyma.gov; caugulewicz @beverlyma.gov
Subject: 2 -22 -2011. doc
Regular Meeting
Beverly City Council 7:00 PM February 22, 2011
Rolf all: Councilors Present:, Judith A. Cronin, Patricia A. Grimes, , Kevin Hobin, , Donald Martin, D. Wesley Slate, Jr.,
Michael P. Cahill Maureen Troubetaris
Absent - Councilors: Paul Guanci, James Latter
Approval of Minutes January 3 rd and January 18th 2011
Pledge of Allegiance to the Flag: yea b councilor Martin
Public Hearings and Public Speakers:
7:00 PM Nancy Coffee, Vice Chair (Open Space & Recreation)
Semi - Annual Report
7:20 PM Order # 33 Public Hearing VERIZON
(Underground conduit -Odell Avenue)
Presentations, Awards and Memorials:
His Honor the Mayor- State of the City Address
Communications from His Honor the Mayor:
STATE OF THE CITY ADDRESS
FEBRUARY 22, 2011 AT 7:00 PM
Honorable Council, fellow citizens both here in City Hall and at home watching on television, good
evening and thank you for the opportunity to speak to you tonight.
Now that Governor Patrick has presented his proposed Fiscal Year 2012 budget to the Legislature, we are
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in a somewhat better position to discuss the new fiscal year, which begins July 1 St
But before we look forward, I thought it would be useful to look back at the journey many of us have taken
together to see what we have accomplished, then to look at where we are today and most importantly, to then look at where
we want to be and how I believe we can get there.
During the time I have been privileged to be your Mayor, by working together we have raised Beverly from the
depths of an $8.5 million deficit, a junk bond rating, a sadly neglected infrastructure and a community in some disarray to a
city with an investment grade bond rating, a much improved physical plant and a cohesive sense of community that better
educates its children, cares for those less fortunate, has a more optimistic view of the future and a great sense of community
pride.
Throughout this entire period of time, our major goal has been to run government more efficiently and to generate
significant annual new growth — new revenues to pursue the upgrading of our infrastructure leading to a better quality of life.
A significant early step was the revitalization of what is now the Cummings Center, home today to more than 500
companies and over 5,000 jobs, many held by Beverly residents. Back in 1995 that site was very run down and largely
vacant when it was sold to Cummings Properties. A so called TIF or Tax Increment Financing agreement entered into by the
City encouraged that new owner to invest far more money in the site than would otherwise have been the case resulting in
significantly more value creation. As a result the site, which generated $167,000 in real estate taxes in the year Cummings
purchased it, now generates more than $2,000,000 annually.
Another important initiative took time, imagination and hard work given that the City had few financial resources
but we found a way to build the Airport Connector Road, known as Sam Fonzo Drive which opened up significant acreage of
industrial land near the Airport for development. Today, a number of businesses dot that roadway, notably Electric Insurance
and Aero Manufacturing. These businesses provide hundreds of jobs and together generate nearly $800,000 in real estate
taxes annually.
With these and other efforts we have managed over now more than 15 years to increase our tax base substantially
by an average of more than $1,000,000 each year, and that new revenue has allowed us to renovate all our elementary schools
and now our high school. Beyond that we have upgraded our parks and playgrounds and our Common and have invested
heavily in improving storm drainage through five separate major projects the last of which in North Beverly was completed
in 2010. As a result when it rains hundreds and hundreds of homes which used to flood, do not. We have also made major
improvements to our water system resulting in better flow to homes and businesses, better fire protection and back feeding
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capability which minimizes the impact of a water line break should one occur.
Moving the clock forward to today, what is different about Beverly? For one thing, back in 1994 Beverly had no
parking garages. Today we have three on the Cummings site alone as well as one at Beverly Hospital. These have been
brought about by the decrease in available land thus demanding structured parking. In addition, the large 500 space
commuter rail parking garage is soon to begin construction near the Beverly Depot train station.
This garage will put people in our city and they will spend money. In 1994 we scarcely had a good restaurant.
Now our restaurant sales have reached $70,000,000 annually and we have many fine establishments. This situation will only
improve with the completion of the commuter parking garage. The garage is expected to open in late 2012 or early 2013.
But as we have gone along, the road has become more rocky. We have not been immune to difficult economic
realities. The State of Massachusetts has lost billions in annual revenues during the recession and has had no choice but to
cut the Local Aid provided to cities and towns. Local Aid, which is the return to cities and towns of some of the taxes we pay
to the State, remains our second largest revenue source despite being cut severely. As you probably know, the Governor's
proposed budget again cuts Beverly's Local Aid by about one -half million dollars for next fiscal year beginning July 1 St
Meanwhile, it is no secret that costs, particularly municipal health care costs, have continued to escalate. To be
sure, employee contribution rates and co -pays have increased but the health care cost increases have overwhelmed these
changes consuming much of our new funds in recent years.
With all this as background, how do we continue to improve despite the economic difficulties? What are we doing
to set ourselves apart? Before we answer that let us take stock of the major infrastructure improvements still needed in our
City. There are three important pieces required to complete the puzzle. First, the Middle School to be located at the
Memorial School site with its 17 acre landmass. Memorial is a newer building than Briscoe whose site measures only six
acres. The project will require the upgrading and expansion of the existing Memorial facility. Second, the Public Safety
facilities at the Cummings site where we own two acres of land bordered by Elliott Street and the railroad tracks and third,
the public services facilities located on Park Street which badly need upgrading. To be sure there are many smaller projects
which need to be accomplished, but once the three main objectives are met, Beverly will be well - positioned for the future.
Looking now to current initiatives, an important one is the effort of our Main Streets organization to improve our
downtown. Parking lot improvements and signage improvements will come this spring. Funds have been appropriated for
this purpose and the contract has been let. Zoning ordinances will be updated and presented to the City Council to be in
concert with modern downtown living, for example, one parking space per living unit near the Depot train station. Facade
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improvements will continue to be made on the main streets of Cabot and Rantoul.
As mentioned before, the commuter rail parking garage will soon begin construction and will bring people and
additional prosperity to our downtown stores and restaurants. The garage will be set back from Rantoul Street so that a
residential building can be built in front of it. The garage will encourage other new residential development along Rantoul
Street where a significant project has recently been approved at the former Kelly Infiniti site and another is in the design
phase near the Depot train station. Residential construction in that area is partially predicated on more and more people
commuting to Boston by train as the cost of oil and the price of gasoline continue to increase. Construction along Rantoul
Street will obviously add to our tax base.
A major project now under construction is the living complex for seniors on Conant Street directly across Cherry
Hill Drive from Axcelis. This multi - million dollar project will create 173 living units and significant tax revenues and will
be completed later this year, if the snow ever melts.
At this moment we are close to completing $2.5 million in needed improvements in our waterfront facilities behind
the old McDonalds. The waterfront apron, the sheet piling and the recreational slips were all in an advanced state of decay.
These improvements, which have been financed by a State grant, are essential for safety and to allow an important restaurant
project to proceed, but it is true that legal action brought by a neighbor needs resolution before the restaurant becomes reality.
Another significant revenue generating opportunity relates to the Brimbal Avenue Interchange improvements. We
have pursued this project for a long time but recently the pace of progress is accelerating. Six design alternatives have been
created and the preferred design chosen. We have done a Draft EIR and are close to a so- called 25% design level. All this
has been done with $1,000,000 of State money. Now the State Secretary of Transportation has offered his full support in
getting this project onto the State's Long Range Plan and the Secretary of Economic Development has also displayed real
interest.
The importance of this project cannot be overemphasized because its completion will open up more than 200 acres
of appropriately zoned land for development and the new growth from that will provide much of the funding for the three
major remaining city infrastructure needs described earlier and perhaps the best part, the interchange improvements are
estimated to take a significant percentage of the existing traffic off Brimbal Avenue by providing direct access and egress
from Route 128 to much of the land on both sides of Route 128.
We are working closely with the North Shore Alliance for Economic Development whose membership includes
thirty communities in our geographic area. This group is spearheaded by Salem State University. The Alliance has
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designated the Brimbal Avenue project as its number one transportation priority throughout the entire thirty community
region which reaches from Newburyport to Gloucester to Lynn.
The project will improve safety, reduce traffic on Brimbal Avenue, reduce time spent in long queues and save fuel.
It will also dramatically enhance the viability of the North Shore Music Theatre. We are making every effort to move this
project to reality through frequent interaction with State officials. Senator Fred Berry is a strong and outspoken supporter of
the project.
Before turning to our High School project, the largest municipal project in Beverly's history, I wish to discuss an
issue which has nothing to do with economic development but a lot to do with the quality of life for many people. This
problem which has eluded resolution over the past decade, is the creation of a dog park on a basis which is satisfactory to all.
With the help of the Airport Commission, we have identified a parcel at the airport which we believe will be a good
place for such a park and allow dogs to run off leash. The Airport Commission will authorize the Recreation Department to
use this site by issuing a revocable license. Planning is proceeding on this project. Relevant City departments are involved.
The intent is to clear brush and create the Park this spring.
Now turning to our High School, this project was driven by the certain loss of accreditation of the school had we
not proceeded and in my considered view, the certain serious loss in value of real estate throughout our City. It is worth
recalling that when we made the decision to move forward with the High School, it was agreed by the School Committee, the
then Superintendent, the City Council and the Mayor that future increases in the City's appropriation to fund the school
system would be limited to approximately $1,000,000 each year in recognition of our increased debt service obligation on the
City's portion of the High School project. We intend to continue to honor that commitment in Fiscal Year 2012 despite
another cut in Local Aid.
The new academic wing of the High School was opened for classes in late November. At this time the project is on
schedule and on budget although work will continue well into this year for demolition of the former academic wings and
landscaping. The last of the interior work will be completed by this Spring. The 83 kW solar array will be added to the new
academic wing roof in the coming months.
When we designed this project on the school's 45 acre site, we planned for the future in the initial design concept to
include two artificial turf fields, spectator stands, lights, bathroom facilities, etc. At the time we had every reason to believe
that MSBA (Massachusetts School Building Authority) would contribute heavily towards their cost, nearly 60% of the total.
But the bad economy hit MSBA too and they cancelled all contributions to athletic fields at all schools. Yet the
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need for these facilities remains. Artificial turf fields can be used all day long, day in and day out and require very little
maintenance. They are a good investment and they are needed. But it was clear they would have to come later.
To get the ball rolling, the City's Planning Department pursued a grant to help build the first such field inside the
track oval at an estimated cost of $830,000. The good news is that we have received the maximum $500,000 grant from the
State for the field leaving us needing to raise privately the remaining $330,000 which I am happy to say we have
accomplished with major donations and pledges from about two dozen parties. Our thanks go out to those who have been
so generous. Our success in raising these funds is a tribute to the confidence people have in the future of our fine City. I
believe the investment in the field will be a good one and will provide a significant increase in available practice and game
time. Volunteer effort to raise funds to build a second turf field will soon follow. As you can see, clearly there are a lot of
good things happening in our City.
Yet, at the same time on the budget front it is no secret that, unlike the Federal Government, the law requires that
Beverly balance its budget every year, something we have consistently done year after year even while making significant
investments in our infrastructure. The current fiscal year is particularly challenging because of the harsh winter which has
overwhelmed the snow and ice budget. Close control over expenses and careful use of available reserves will, we believe,
see us safely through this fiscal year which ends June 30
Practices designed to minimize the cost of government and maximize its effectiveness will continue. Strategic
financing decisions by the City's Finance Department have saved the City millions of dollars in borrowing costs to date and
those savings will continue. The positive financial impact of the recent consolidation of school maintenance functions is
already noticeable. We are working in close cooperation with the new Superintendent, Marie Galinski, and the new School
Business Manager, Jean Sherburne.
On the city side, we have recently consolidated the operations of the Assessor's Office resulting in a personnel
reduction, staffing in the Clerk's Office has been reduced; we have concluded our relationship with Frank Killilea, formerly
the Director of Engineering; we have a hiring freeze in place regarding several open positions and we have taken other steps
to minimize expense levels.
Another important initiative is the regional emergency dispatch center to be located at the Middleton Jail site.
Beverly is the largest of six communities which have agreed to participate in this project. We expect the center to be on line
in the first quarter of calendar 2013. Regional dispatch will give us better service, lower cost, and reduced long term
investment. It will allow police officers now inside the station to be out on the street with the dispatch function being
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performed by trained civilians.
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We will look for additional ways to maximize productivity at the lowest reasonable cost. We will continue to refine
decisions related to the purchase of goods and services with taxpayer monies to ensure best value for our dollars.
None of these cost cutting measures changes the fact that the Governor's initial budget shows a nearly $500,000
reduction in Beverly's Local Aid for FY 2012 and assuming that budget passes, Local Aid for FY 2012 would be $2.6
million less than that for FY 2009, a drop from $13.9 million to $11.3 million, a huge loss but still our second largest revenue
source.
With this information in hand, let us step back for a moment to look at balancing the City's checkbook, a task not
so different from the one you face at home except that the numbers are bigger. We get new money each year from
Proposition 2 V2, that is a 2 V2% average increase on all real estate taxes and to that we add new growth which is the tax
revenue from newly constructed buildings and projects, things which were not there a year ago. When these amounts are
added together and the $500,000 in lost State Aid is subtracted, the net new money for the City for next year is estimated at
$2
That may seem like a lot of money. But if municipal health care costs rise as they have been recently by 10% from
their current total of $16,850,000 and we add in next year's increased pension funding requirement of $350,000, these two
factors alone would total more than $2,000,000, leaving about $300,000 for everything else and that $300,000 would not
even cover our current snow and ice overage, an issue we are allowed by law to deal with in next year's budget.
In recent years, health care cost increases alone have largely consumed all our new funds. That is the real
dilemma. That is the reason I have personally pursued for several years what is called Plan Design change which is an effort
to lower health care costs by changing the financial structure of current health plans of municipal employees to mirror the
structure of State plans offered by the Group Insurance Commission known as the GIC. These plans provide excellent
coverage to over 300,000 State employees and their families. Recently Governor Patrick specifically sponsored legislation
now before the House of Representatives requiring that all Massachusetts communities either join the GIC or modify the
financial terms of their plans to mirror the GIC plans.
I did note earlier that our city unions have in recent years agreed to change their percentage contribution to health
care plan costs from 10% to 20% of the total and have also agreed to office co -pay increases from $5 to $15. But these
changes have been overwhelmed by the increase in health care costs which now consume 17% of the City's entire general
fund budget.
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It is important that listeners understand that we do not seek inferior health care for our employees or ourselves.
Rather, as I said earlier, we wish to match the plans provided by the Commonwealth to over 300,000 State workers and their
families across Massachusetts. Note that these changes would be financial, not related to quality of care nor access to doctors
or hospitals. These plans would mean lower premiums for our employees but would include deductibles. Today, our plans
for active employees do not include deductibles.
We have had recent discussion with all our municipal union leaders to ensure full awareness of the Governor's
proposal. Passage of effective health care legislation will clearly save many municipal jobs in Beverly. Progress on plan
design is really all about keeping jobs, jobs necessary to provide our community with a reasonable level of service.
Failure to pass such legislation will almost certainly demand layoffs to free up the funds needed to pay the increased
health care costs for those still on the payroll. There would be an obvious loss of essential services. That is how important
this subject is.
Clearly these are not easy times for most of you nor for government. No matter how much it snows and no matter
how much it costs, we must clear the snow. Yet we must pay the bills. We must balance the budget.
Before I close, I would like to discuss volunteering. This City, our city which we all care about deeply requires
many volunteers giving of their time without financial compensation to make Beverly a better place. We have an ongoing
need for volunteers. Senior Care, a North Shore organization which helps seniors in many ways is in particular need of
volunteers. If you can spare the time to help, please drop me a line outlining your interest and your background. It will be
appreciated.
Now on a personal note, while I see the balance of this year and the next two years as being difficult, I believe that
by continuing to work together and by making hard decisions when necessary that we can continue to move Beverly forward
and lay the ground work for the remaining key pieces of infrastructure -- the middle school, the public safety facility and the
public services facilities.
I am personally energized and continue to be determined to do the best job possible as we face the difficult future.
I do believe that experience and continuity will be important as will many established key contacts on Beacon Hill. I believe
I can continue to lead our city effectively.
Thus I announce to you tonight that I will run for re- election in November, and I will work vigorously to earn your
continued support. Together we have done much and together we can do more. If you have questions or comments on the
issues I have discussed tonight, please let me know.
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Thank you and good night.
#35
February 22, 2011
Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
Page 9 of 13
I recommend that you approve the request described in the attached to subordinate the City's CDBG
loan on property at 29 Eastern Avenue. This matter is fully described in the attached memo from Bill
O'Hare.
Very truly yours,
William F. Scanlon, Jr.
Mayor
#36
February 22, 2011
Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
I recommend that you approve the request described in the attached to subordinate the City's CDBG
loan on property at 29 Eastern Avenue. This matter is fully described in the attached memo from Bill
O'Hare.
Very truly yours,
William F. Scanlon, Jr.
Mayor
Refer to Finance & Property
Appointments:
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#37
February 22, 2011
Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
Page 10 of 13
I hereby appoint, subject to your review and recommendation Ms. Charlene St. Jean, 32 Jordan Street,
Beverly, MA 01915 to serve on the Economic and Community Development Council as the
representative for the Beverly Chamber of Commerce.
Very truly yours,
William F. Scanlon, Jr.
Mayor
Refer to Legal Affairs
#38
Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
I hereby appoint, subject to your review and recommendation, Mr. Gerardo Spagnuolo, 6 Esquire Drive,
Peabody to serve as Constable in the City of Beverly for the express purpose of serving Civil Process.
Attached is Mr. Spagnuolo's application for appointment, which has been approved by Police Chief
Mark Ray.
Mr. Spagnuolo's term will be effective until February 1, 2014.
Very truly yours,
William F. Scanlon, Jr.
Mayor
Refer to Legal Affairs
REAPPOINTMENTS
Communications from Other City Officers and Boards:
#39
Communication from the City Clerk — 2011 Election Calendar
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2011 Election Calendar City of Beverly
(Relating to Biennial Municipal Primary and Final Election)
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Monday, April 4
First day for candidates to take out nomination papers
Friday, July 29
5:00 PM Last day and hour for taking out nomination
papers (Chapter 53, Sect. 9A). Candidates
must file signed statement containing his /her
name,
address and office to which he /she aspires (Only
allowed petitions sufficient for nomination times five(5)
Tuesday, August 2
5:00 PM Last day and hour for filing all nomination
Papers with Board of Registrars of Voters for
certification of signatures. (Section 7 -3) Registrars need
not certify more names than required plus 20 %. For
any City wide office not less than one hundred
signatures, not more than twenty -five signatures from
any one ward, for ward office not less than fifty
signatures all of which shall be from the ward from
which the nomination is sought.
Tuesday, August 16
5:00 PM Last day and Hour for filing certified Nomination
papers to the Board of Registrars with the City Clerk
(C.53 S.6)
Thursday, August 18
5:00 PM Last day and Hour for filing withdrawals or
objections to nomination papers. (C. 556 S.7)
Thursday, August 18
6:00 PM Drawing for ballot position by Registrars of Voters
in City council Chambers- Candidate or representative
invited to be present
Wednesday, August 31 8:00 PM Last day and hour to register voters for the
Preliminary City Election
Tuesday, September 20, 2011 City Preliminary Election
Monday, September 26 5:00 PM Last Day and Hour to file for a recount
Monday, September 26 5:15 PM Drawing for Ballot Positions, By City Clerk
(Candidate or representative may be present)
Wednesday, October 19 8:00 PM Last day and hour to register voters for the
City Election
Tuesday, November 8, 2011 Biennial Municipal Election
Friday November 18 5:00 PM Last day and hour to file for recount
►egistrars of Voters: Roger Morency, John Crowley, Dana Staples
Communications, Applications and Petitions:
#40
Claim — Tree damage to parked car on Fayette St.
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#41
Claim - Pothole damage
Reports from Committees:
#1
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The Committee on Finance and Property to whom was referred the matter of Appropriation for Turf Field Project have considered said
matter and beg leave to report as follows, to wit:
Submit the accompanying order and recommend its adoption
Ordered that:
The City of Beverly will hold a Public Hearing on Tuesday January 18, 2011 at
7:45 PM in City Council Chambers, Third Floor 191 Cabot St., Beverly, MA relative to:
Ordered: That the Beverly City Council accept a Massachusetts Division of Conservation
Services' Parkland Acquisition and Renovations for Communities grant in the amount of $500,000 and
community donations in the amount of $333,333.33 and appropriate such amounts for the construction
of a turf athletic field inside the track oval on land adjacent to Beverly High School.
1 1 t Reading Jan. 3,2011
Public Hearing Jan.18, 2011
2nd Reading
Final Approval
#235
The Committee on Legal Affairs / Committee of the Whole to who was referred the matter of Appointment to the Planning Board
Mr. Michael O'Brien
9 Willow St. Beverly, MA.
have considered said matter and beg leave to report as follows, to wit:
Recommend the Council Approve the appointment
Order read once and adopted
Unfinished Business:
Motions and Orders:
Motion to suspend the rules to go into Executive Session
Roll Call Vote 9 -0
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Meeting Adjourned: 8:24 PM Attest: Kathleen P. Connolly
City Clerk
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