2010-02-01
Regular Meeting
Page 1 of 10
Beverly Meeting Minutes
From: Fran MacDonald [fmacdonald@beverlyma.gov]
Sent: Tuesday, February 02, 2010 2:57 PM
To: minutes@beverlyma.gov
Subject: 2/1/10
Regular Meeting
Beverly City Council 7:00 PM February 1, 2010
Roll Call: Councilors Present, Judith A. Cronin, Patricia A. Grimes, Paul M. Guanci, Kevin Hobin, James F. Latter,
Donald Martin, D. Wesley Slate, Jr., Maureen Troubetaris, Michael P. Cahill
Pledge of Allegiance to the Flag: Led by Chief Ray, Captain Negrotti, Lt. Devlin and Sgt.
Richardson
Public Hearings and Public Speakers:
7:05 PM Police Department Swear-In Ceremony
Acceptance of Minutes:
Meeting of January 21, 2010
Presentations, Awards and Memorials:
Appointments:
Communications from His Honor the Mayor:
#25
State of the City
William F. Scanlon, Jr.
February 1, 2010
The State of the City address, always delivered early in the New Year, is an opportunity to reflect on the past, assess
the present and peer into the future. It is appropriate to schedule the delivery of this address after the Governor's State of the
State and the President's State of the Union addresses which have both been given in the past few days. At this time, we know
the Governor's recommendation for Local Aid for fiscal 2011 which begins July 1 st, and while that recommendation is better than
had been feared, it will not alleviate the financial strain of these most difficult times.
Despite having been cut to a level $2.5 million less annually than what we received a decade ago, Local Aid remains
Beverly's second largest revenue source. The good news is that the Governor's recommendation is to level fund the coming
year's Local Aid, based on recent improvements in State revenue collections. The bad news is that level funding Local Aid does
not keep pace with the increases in our costs to deliver the same services. Additionally, there is no way to know at this time
whether the Legislature will accept the Governor's budget recommendation or vote to reduce it. While all of that is largely
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beyond our control, we are doing a good job managing those things that are within our control.
We finished the last fiscal year ending June 30, 2009 with yet another Free Cash certification of slightly over $1,000,000.
Unfortunately, $800,000 of that was required to payoff the snow and ice deficit caused by the difficult winter.
In Calendar 2009 we suffered not one but two separate cuts in Local Aid. We managed to absorb these cuts without layoffs of
full time personnel but we did so by encouraging any eligible City side employees to retire. Fourteen persons, roughly 50/0 of the City side
workforce, chose to do so. Wherever possible, we have not replaced these employees.
In January we received several pieces of good news. You will recall that the entire project to build a new academic wing and
renovate the balance of the high school has an $81 million price tag. The Commonwealth of Massachusetts is paying for over 580/0 of the
project, about $47 million, leaving Beverly to pay the balance of $34 million. As we have issued the first installment of long-term debt on
the project, I am pleased to advise you that last month Beverly's bond rating was increased yet again, the eighth such increase during my
time as mayor. As you know, that significantly reduces our costs to borrow money. We were able to borrow $20 million for 25 years at
3.90/0, more than a full percentage point less than the 50/0 we anticipated when the City Council courageously approved the project in
February of 2006. Because the high school is being constructed to a standard of useful life of at least 50 years, we were able to issue the
debt using a 25-year amortization period. The manner in which municipal projects are amortized results in higher payments in the early
years, significantly lowering interest costs over the life of the loan, which further lowers our cost to borrow money. We also plan to
refinance up to $24 million of existing debt, which will save the City a substantial sum of money, most of it in the current fiscal year.
Coincidentally, that refinancing will produce a savings to the State, as their reimbursement is partially based on the interest costs we will
have reduced.
These bits of good news and a determined effort to control expenses should allow us to once again come in on budget for the
current fiscal year. We expect this despite weakness in several revenue accounts, including building permits, excise taxes and federal
reimbursement of school related Medicaid costs, as well as the slowness in collecting golf course revenues. Of course our snow and ice
expenses remain a wild card.
There are many important initiatives in our City at this time. The new commuter rail parking garage, which will help unlock the
potential of Rantoul Street, is on track and only this week, the State's commitment to that project was personally reconfirmed by the
Governor. With that in mind we continue to develop detailed design plans for a major upgrading of Rantoul Street. Those plans include
renewing the entire street from the back of one sidewalk to the back of the other.
The state funded waterfront improvements presently underway will finally pave the way for a waterfront restaurant, which is now
just one permit away from proceeding.
The senior living project on Conant Street is breaking ground soon. That project, representing a private investment in excess of
$20 million, will create 173 units of housing.
The new CVS on the corner of Rantoul and Elliott Streets is set to open any day now.
The high school project, the largest municipal project in the City's history, is on budget and on schedule. Construction has
passed the halfway point.
We anticipate once again having the Music Theatre in operation with the prospective owner planning to pass papers this month.
The North Beverly Brook project is nearing completion. It brings needed relief to one of the last areas of the city plagued by
large-scale flooding.
We recently received approval for two affordable housing projects, each with significant state funding.
We continue design work on the Brimbal Avenue Interchange upgrade. Full funding for further design work throughout this year
is in place. This important project has the potential to generate the appropriate new growth needed to fund the middle school upgrade and
a new public safety facility. Both the Metropolitan Area Planning Council and the North Shore Alliance for Economic Development are
working closely with us to advance this essential initiative. While all of these projects will better position Beverly to sustain its quality of life,
they are not a panacea for these most difficult of times.
Beverly and its residents are not unaffected by the same damaged economy that is ravaging cities and towns across the State
and throughout the Nation. While we have largely avoided the rash of home foreclosures seen elsewhere, organizations such as the
Salvation Army and Beverly Bootstraps are struggling to meet record need. While we continue to move the city forward, we are struggling
to adequately fund some of our most basic services, and sometimes we come up short. The money simply isn't there. Regrettably, as we
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look into the future, there are more clouds on the horizon.
As you all know, by law the City must prepare a balanced budget each year. Revenues and expenses must match. The process
of building such budgets has grown more difficult each year. As part of that process, we created a Financial Forecasting Committee to
peer into the future and assess ways to develop sustainable budgets. Many of you are no doubt aware that this committee, made up of
city councilors, school committee members and members of the public, has predicted for next fiscal year a large multi-million dollar gap
between available revenues and required expenses. Worse, the Committee expects that gap to grow annually. Should the city fail to
make further, necessary, changes to the way it does business, these predictions may well become true.
Historically, the subject of sustainability is annually raised during difficult budget resolutions and is then quickly forgotten once
the immediate crisis has passed. I believe this is so because of the difficulty of making the painful decisions necessary to ensure long-term
sustainability. We can no longer shy away from that difficulty.
Consider the Financial Forecasting Committee's review of our school budget. That review determined that this year's school
budget relied on $1 million in one-time school reserves. Those reserves are now fully exhausted. So even though we hope to add $1
million in new additional funds to next year's school budget, the school system's total available funding will be level from this year to next.
As I mentioned earlier, level funding does not keep pace with the increases in costs to deliver the same services.
Consider the costs of health insurance alone. Those costs increase every year, sometimes by more than 100/0 a year. In
Beverly, the total cost of providing municipal health care coverage, including employee and retiree contributions, is now over $18 million
annually, of which over $15 million falls on the city.
In an effort to hold down health care costs, I along with many other municipal leaders have lobbied hard for the same rights the
Commonwealth of Massachusetts has to control its health care costs which it exercises through the so called GIC or Group Insurance
Commission which insures over 300,000 persons. Those rights allow the Commonwealth to unilaterally modify employee co-pays and
deductibles without the need to obtain union consent. Contrarily, cities and towns cannot make any such cost saving changes absent
union consent no matter how small the change. To date, the state legislature continues to deny to cities and towns the same tool the State
uses to mitigate its own escalating health care costs. Local officials are not asking for the right to remove employee percentage
contributions from negotiation. We are, in fact. simplv trvinq to save iobs. As cities and towns can no longer afford the rising costs of
health care, they are left with no alternative but to eliminate jobs to save enough money to pay for increased health care costs. This is not
good for the cities and towns as it reduces their ability to provide services, and it's obviously not good for the individuals affected. I
personally believe that most union members would come down in favor of allowing local leaders to modify their co-pays or deductibles in
order to save their jobs. Now, having said that, I do need to yet again address another fact threatening the city's long-term sustainability -
the sheer volume of people eligible for city-provided benefits, including health care coverage
Today, by recent count, Beverly provides health care coverage to over 3,000 persons. These include active employees and their
dependents as well as retirees and their dependents. There are today 296 full-time equivalent employees on the city side and 650 full time
equivalents on the school side for a total of 946. With regard to at least 150 of these positions, if the employee in question is covered by a
family health care plan, the lifetime cost to the city for health care will exceed the total lifetime salary paid to that individual. So, what do
we do?
As I have said repeatedly, I would not suggest any change in the treatment of present employees. But I again strongly suggest
that we pursue a policy of hiring part-time employees whenever possible. Under state law those working up to 19 ~ hours per week for a
municipality do so without benefits. Those working 19 ~ hours or more receive full benefits including, after ten years of employment, a
lifetime pension upon retirement as well as lifetime health care coverage upon retirement.
But these costs are not the only issue we must confront. There is the even more basic question of how many persons we can
afford to employ. This question must be asked of both the city side and the school side. In the past year, the total of full-time equivalent
employees in the school system has risen by 23 persons. All of these positions are likely educationally desirable and certainly education
remains the number one priority in the mind of most Beverly citizens. It cannot, however, be our only priority.
Total educational spending in Beverly is now well over $60 million per year. Some of this money does come from sources
outside the General Fund such as grants and fees. And some of it is not under the control of the Superintendent such as payments to the
Vocational Technical High school and payments by the City on behalf of the schools, but the entire sum represents educational spending.
A 1 % increase in that spending exceeds a half million dollars. Our total General Fund is less than $100 million. The math says that this
budget cannot grow much in percentage terms and we must focus our attention on spending it in the most advantageous manner.
The current school committee is aware of all of this and I believe that committee is fully committed to developing sustainable
budgets. The city side too must take every available step to operate more efficiently by minimizing manpower and maximizing
productivity. In this regard we are now pursuing a policy of reduction through attrition wherever possible. Since March of 2009, total city
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side full-time equivalents have dropped by ten persons, from 306 to 296. Along with measures such as these to reduce our
expenses, we are also pursuing means by which to stabilize our revenues.
In life there is a need for balance between conflicting objectives. Last Spring, the State Legislature, mindful of the dramatic cuts
in Local Aid made to cities and towns, created Local Options for cities and towns to add their own meals tax and hotel tax. The legislature
took this action specifically to allow cities and towns to partially offset their losses in Local Aid and I believe we have no choice but to do
just that.
I have requested that our City Council pass these measures. Believe me, I take no pleasure whatsoever in doing so and I can
tell you that I have reached out to restaurant owners to discuss this matter. I will not repeat here the many reasons these measures have
already been enacted by a great many communities in Eastern Massachusetts, but I will tell you that our failure to stabilize our revenues
through measures such as these will result in layoffs and a consequent decline in our ability to provide basic services. We expect these
measures, if enacted, will produce about $400,000 annually. As I said earlier, we hope to provide the school system with $1,000,000 in
additional funds for next year, and $400,000 would get us a part of the way there.
On other fronts, during the past year, we completed studies on the condition of City Hall and the Main Library. Work on both of
these buildings had already been anticipated in our Capital Expenditure Plan, but the studies determined that their conditions are worse
than anticipated. In the case of City Hall, there are leaks in the roof and in some side walls. Unaddressed, these will only get worse and
lead to additional and more costly damage. The cost of repair is estimated at $2 million.
The Library has long suffered failing stairs at its main entrance and leaking skylights. The study estimates the cost of repair at
$1.1 million. In the near future, I will be submitting to the Council proposals to correct both the City Hall and Library issues.
There is one more capital project needing mention. The high school project includes the demolition of the current bus
maintenance garage. We are studying the feasibility of moving the bus maintenance function to the Public Services location on Park
Street. Whether this location is feasible or not, we will need to construct a suitable facility at an estimated cost of $1 million. I will be
presenting a proposal in this regard to the City Council at its February 16th meeting.
As I speak, there is before this Council a proposed ordinance, related to the sale of unused public buildings, which would add
value to the former McKay School property. Proceeds from the sale of that property will help pay down a part of the high school project
debt. Our success in lowering that debt through reduced borrowing costs has not lessened our desire to maximize those proceeds. I urge
the Council to move favorably on the ordinance after giving the matter full consideration.
As we look at balancing next fiscal year's budget, there can be no question that it will be a very difficult process. While we have
some hope that a reduction in the city's workforce through employee attrition will benefit the process, we cannot deny the very real
possibility that attrition alone will not be enough. As I said, the ability to control health care costs by in effect mirroring the State's GIC
through the modification of employee co-pays and deductibles would alleviate our need to make some terribly painful decisions in this
regard, but that is up to the State Legislature. I will continue to press for this legislation through the Massachusetts Municipal Association
and the Metropolitan Area Planning Council which coordinates the North Shore Coalition of Mayors and Town Managers.
The city does possess some modest level of reserves, due in part to the efforts of so many of our residents who take the time to
diligently separate their recyclables from their trash, sparing the city the unnecessary cost to otherwise remove and dispose of recyclable
goods. These reserves might be used if the Council so chooses to lessen adverse inputs from next year's budget. But even so, facing the
subject of sustainability in next year's and the following year's budget is essential. We simply must find ways to live within our means. As
we have seen, a strong majority of our citizens has little appetite for overrides.
Somewhat related, let me confirm once again that I am fully in favor of consolidating school maintenance functions within the
Department of Public Services, but in order for this concept to work, not just the responsibility, but also the hiring authority must transfer to
the City. It is regrettable that this process has taken so long. In my view, we are missing the opportunity to do a better job than is being
done presently, and to save money.
In closing, let me once again put out a call for volunteers for our Boards and Commissions. If you have an interest in serving
your community and can spare the time, please drop me a line describing your interest and your background. We would love to have your
help.
Lastly, I will try to answer any questions councilors may have. Thank you for listening.
Mayor William F.Scanlon, Jr.
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#26
February 1, 2010
Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
I hereby reappoint, subject to your review and recommendation, the following citizens to serve as members of the Commission on
Disabilities:
Kevin Gallant
17 Scenna Road
November 1, 2012
Michele Gordon
60 Rantoul Street
November 1, 2011
Candace Pike
291 Essex Street
November 1, 2012
The expiration date of their terms is noted above.
Very truly yours,
William F. Scanlon, Jr., Mayor
Refer to Public Services
#27
February 1, 2010
Honorable City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
I hereby appoint, subject to your review and recommendation, the following citizen to serve as an alternate on the Board of Appeals -
Zoning:
John Harden
14 High Street
His term will be effective until October 1, 2014.
Very truly yours,
William F. Scanlon, Jr., Mayor
Refer to Leaal Affairs
Communications from Other City Officers and Boards:
#28
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January 22, 2010
Frances Macdonald, City clerk
191 Cabot Street
Beverly, MA 01915
Dear Mrs. Macdonald:
Please be advised that I have made the following promotions, effective, Monday February 1, 2010:
From Captain to Deputy Chief-Michael J. Acciavatti, 309 Essex St., Beverly, MA
From Lieutenant to Captain-Russell C. Halloran, 3 Stone St., Danvers, MA
From Firefighter to Lieutenant-Matthew J. Kowalski, 30 Atlantic Ave., Beverly, MA
From Reserve Firefighter to Firefighter-Derek Belanger, 12 Walcott Rd. Beverly, MA
If you have any questions regarding this matter, please feel free to contact me.
Very truly yours,
Chief Richard F. Pierce
Receive and Place on File
#29
February 1, 2010
Beverly City Council
City Hall
Beverly, MA 01915
Dear Honorable Council:
Periodically our Financial Advisor, Peter Frazier of First Southwest Company, looks at the feasibility of refunding existing debt. In 2003,
the City refunded the balance of the 1994 debt issue and saved approximately $350,000 over the remaining life of that issue. Mr. Frazier
has analyzed a proposed refunding of the City's 1996, 1999 and 2000 debt issues and based on the interest rates we received in January
on our new bond issue, he anticipates substantial savings over the remaining terms of the issues.
In addition to the savings to the City, there would also be a savings to the State. The refunding would include some of the debt associated
with the elementary schools project. Because State grant reimbursements are predicated, in part, on interest costs a reduction in such
interest costs would result in a savings to the State through reduced future grant payments.
Bond Counsel has proposed a Loan Order to authorize the refunding, which is attached. I would like to introduce the order tonight and ask
that the Council schedule a public hearing for Tuesday February 16, 2010. It may be that unexpected changes in interest rates could
change our decision on the refunding but it will be to our benefit to have an approved Loan Order, certified by Bond Counsel, ready if rates
continue to hold in their present range.
Very truly yours,
John P. Dunn, Finance Director
Refer to Finance and Property
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Communications, Applications and Petitions:
#30
Comm. relative to complaints about snow plowing Whitaker Way
Refer to Public Services
#31
Application Class II MVDL McNeil Auto Body
Refer to Leaal Affairs
Reports from Committees:
#10
The Committee on Finance and Property to whom was referred the matter of Legal Option Excises for Meals and Room Occupancy Tax
have considered said matter and beg leave to follow, to wit
Submit the accompanying order and recommend its adoption
Ordered: The City Council of the city of Beverly will old a public hearing on Monday, February 22, 2010 at 7:05 PM in Council Chambers,
third floor, 191 Cabot street, Beverly, Ma relative to the following:
1. Local Option Excises for Meals increase levy by % of 10/0
2. Local Option Excises for Room Occupancy levy from 40/0 to 60/0
Order read once and adopted 9-0 Vote
#24
The Committee on Finance and Property to whom was referred the matter of Request to waive fee for one day beverage license have
considered said matter and beg leave to report as follows, to wit
Submit the accompanying order and recommend its adoption
Ordered: The City Council DENIES the request of the BHS Wellness Department to waive the fee of $75.00 for a one day alcohol license.
Order read once and adopted 9-0 Vote
#29
The Committee on Finance and Property to whom was referred the matter of Loan Order 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 Council of the City of Beverly will hold a public hearing on Tuesday, February 16, 2010 in Council Chambers, third
floor, 191 Cabot Street, Beverly, MA at 7:45 PM relative to the enclosed loan order:
Ordered: that, in order to reduce interest costs, the Treasurer with the approval of the Mayor and the Director of Municipal Finance and the
Committee of Finance and Property is authorized to issue refunding bonds pursuant to G.L. c.44, 921A to refund all or a portion
of the remaining amounts of the City's State Qualified Municipal Purpose Loan of 1996 Bonds dated October 1, 1996, the City's
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Municipal Purpose Loan of 1999 Bonds dated March 1, 1999 and the City's Municipal Purpose Loan of 2000 Bonds dated September 1,
2000; that the refunding bonds shall be issued in an amount not to exceed $24,200,000, in order to pay the principal, redemption
premium and interest on the bonds to be refunded, and costs of issuance of the refunding bonds; that the Treasurer is authorized
to execute such documents as may be necessary or desirable to carry out this transaction, including a refunding trust agreement
or escrow agreement with a bank or trust company; that the Treasurer is authorized to file an application with the Municipal
Finance Oversight Board to qualify under Chapter 44A of the General Laws any or all of the bonds and to provide such
information and execute such documents as the Board may require for these purposes; and that any bonds or notes issued
pursuant to this order shall be certified in writing as to their genuiness by a bank or trust company situated and doing business in
Massachusetts to be selected by the Committee on Finance and Property. This Order shall supercede Order No. 239 of this
Council which had authorized the issuance of refunding bonds in the amount of $16,000,000 for this purpose.
Order read once and adopted 9-0 Vote
#17
The Committee on Legal Affairs / Committee of the Whole to who was referred the matter of recommendation from Planning re
Congregate Elderly/OPO 55 Housing appointment of Richard Dinkin to Committee have considered said matter and beg leave to report as
follows, to wit:
Receive and Place on File
Order read once and adopted 9-0 Vote
#20
The Committee on Legal Affairs / Committee of the Whole to who was referred the matter of Application Hawkers and Peddlers License
Richard Philpot have considered said matter and beg leave to report as follows, to wit:
Recommend the License be granted
Order read once and adopted 9-0 Vote
#21
The Committee on Legal Affairs / Committee of the Whole to who was referred the matter of Application Second hand Junk Dealers
License Over the Rainbow have considered said matter and beg leave to report as follows, to wit:
Recommend the License be granted
Order read once and adopted 9-0 Vote
#22
The Committee on Legal Affairs / Committee of the Whole to who was referred the matter of application for 3 additional Livery Licenses
Boston have considered said matter and beg leave to report as follows, to wit:
-
Order read once and adopted 9-0 Vote
#23
The Committee on Legal Affairs / Committee of the Whole to who was referred the matter of Application for eleven (11) Livery Licenses
Bass River, Inc. have considered said matter and beg leave to report as follows, to wit:
Recommend the License be granted
Order read once and adopted 9-0 Vote
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#24
The Committee on Legal Affairs / Committee of the Whole to who was referred the matter of have considered said matter and beg leave to
report as follows, to wit:
Submit the accompanying order and recommend its adoption
Ordered: The City Council waive the Alcohol in a Public Building Ordinance for an occasion at Beverly High School on April 23, 2010.
Order read once and adopted 9-0 Vote
#4
The Committee on Public Services / Committee of the Whole to whom was referred the matter of appointment to Beverly Airport
Commission Karen nelson, Ralph Forgione, Paul Lydon, Anthony Dettore, Susan McEvoy and Joseph DiPaolo have considered said
matter and beg leave to report as follows, to wit:
Recommend the Council approve the appointments
Order read once and adopted 9-0 Vote
#13
-
The Committee on Public Services / Committee of the Whole to whom was referred the matter of Solid Waste Management Committee
Sandy Burgess have considered said matter and beg leave to report as follows, to wit:
Recommend the Council approve the appointment
Order read once and adopted 9-0 Vote
#14
The Committee on Public Services / Committee of the Whole to whom was referred the matter of appointment Parks and Recreation
William Lowd and jack O'Neil have considered said matter and beg leave to report as follows, to wit:
Recommend the council approve the appointment
Order read once and adopted 9-0 Vote
#15
The Committee on Public Services / Committee of the Whole to whom was referred the matter of Appointment Trustees of the Public
Library Anthony Kline and Mary Behrle have considered said matter and beg leave to report as follows, to wit:
Recommend the council approve the appointment
Order read once and adopted 9-0 Vote
#16
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The Committee on Public Services / Committee of the Whole to whom was referred the matter of Appointment Cable TV Advisory
Committee Kim Allyn have considered said matter and beg leave to report as follows, to wit:
Recommend the council approve the appointment
Order read once and adopted 9-0 Vote
Unfinished Business:
Motions and Orders:
By Councilors Slate and Troubetaris:
Ordered: That the Department of Public Services replace the plaque at the corner of Dane and Knowlton Streets erected on 5 January
1976, naming it "Gertrude J. Smith Square". The plaque was knocked down sometime in 1978 and was never repaired or replaced.
Referred to Public Services
Meeting Adjourned: 8:35 PM
Attest: Frances A. Macdonald, CMC
City Clerk
2/8/2010