Minutes - Monday 4 December 2017Regular Meeting - Beverly City Council, Beverly, MA
MINUTES - Monday, 4 December 2017 @ 7:00 PM
Beverly City Hall, 191 Cabot Street, 3r Floor Council Chamber
Called to Order @ 7:05 PM
Roll Call: John P. Frates Jr., Scott D. Houseman -Vice President, David J. Lang,
James F. Latter, Donald G. Martin, Estelle M. Rand, Matthew J. St. Hilaire, Jason C.
Silva, Paul M. Guanci- President.
Pledge of Allegiance to the Flag: Councilor Latter
Moment of Silence:
1. Michael A. Nardella, Sr., Father of Bruce Nardella, former City Council President
Presentations, Awards and Memorials:
1. Salem Sound Coastwatch — Barbara Warren, Executive Director
Resolutions:
1. #549 —Clean Energy Advisory Committee "Pathways to Municipal Clean Energy"
Approved on the Floor — Vote: 9 -0
Public Hearings:
1. 7:25 PM - #534 — Allocation of FY2018 Tax Levy Percentages
Public Hearing held & closed — Referred back to Finance & Property
2. 7:30 PM - #524 — Amended Ordinance — Ch. 270 "Vehicles & Traffic"
(Downtown Parking)
Public Hearing held & closed, referred back to Legal Affairs
3. 7:45 PM - #539 — Golf & Tennis Club Pump House Repairs
Public Hearing held & closed, referred back to Finance & Property
4. 7:50 PM - #540 — Raise & Appropriate — FY2018 Budget
Public Hearing held & closed, referred back to Finance & Property
Presentations, Awards and Memorials (continued):
2. Mayor Michael P. Cahill - Communication presented by Bryant Ayles, Finance
Director:
December 4, 2017
The Honorable Beverly City Council
City Hall
Beverly, MA 01915
Dear Honorable Beverly City Council:
Good evening. Thank you for allowing my remarks to be read into the record tonight. I cannot
be with you tonight, as I am in Chicago attending the first North American Mayors' Climate
Summit — an event focused on the role of cities in helping to meet the goals of the International
Paris Climate Accords. It is an honor for me to represent the people of Beverly at this event.
I am particularly grateful to you members of the City Council, as well as the several members of
my Administrative team, and interested members of the public for the important work you
undertake this evening in Beverly City Council chambers.
371
With your leave, I speak briefly to several items before you tonight. I am in strong support of
both the proposed 40R ordinance and our new proposed downtown parking ordinance. I speak to
these two proposals together for this reason: they each have been the subject of lengthy — over
two years in each case — collaborative processes with multiple public meetings and public
hearings, as well as numerous collaborative meetings and brainstorming sessions among
neighbors and stakeholders, you as City Councilors, members of the city administration, and me.
These proposals have each been well vetted and represent outstanding public policy as proposed
tonight. I respectfully request you vote positively this evening on both proposals.
Next, I request that you approve the proposed Tax Increment Financing agreement with
Harmonics Drive. Planning Director Mr. Aaron Clausen and Finance Director Mr. Bryant Ayles
will speak to the details this evening. I will say only that Harmonics plans to invest significant
money to build a new manufacturing facility on Dunham Road, create 90 high quality new jobs,
and bring a projected $3.8M in new property tax revenues to our city over the ten year term of
the TIE The proposed TIF follows the same formula approved by this City Council when
considering and approving TIFs for both Krohne Manufacturing and HighRes Biosolutions.
Harmonics Drive is a world class company with longtime roots in Beverly and the North Shore,
and they project to be an outstanding corporate citizen and neighbor for years to come.
Last, I want to share some thoughts regarding our proposed supplemental budget appropriation
before you tonight.
As Finance Director, Mr. Bryant Ayles, has and will again tonight explain, the city's new growth
revenues came in well above our projected number for Fiscal Year 2017. Please know that in
seven of the last ten years, new growth occurred at about the level we projected for 2017 or
below. The fact we have realized this much more new growth is a very good thing — something
to be celebrated. This is money that will help us deliver critical services, and pay for
infrastructure improvements like our new middle school, our new police station, and other city
priorities for years to come. It also is growth that was not forecast and won't easily be duplicated
in coming years.
Which is why we are being very measured with the proposed supplemental budget we have
submitted to you tonight. Nearly half of our request ($440,000) is for one time spending to
improve playing fields and athletic facilities at our several schools. Next year, that same amount
of money can then be dedicated to help pay debt service on our new middle school.
Of the balance - $505,000 — a full $400,000 (with your approval) will be dedicated to our public
schools. The School Committee, in consultation with our School Administration, anticipate
acting in January to approve some combination of high priority one time and /or recurring
expenditures, with an eye towards ensuring that any additional recurring expenditures can be
sustained in future years.
We are asking the City Council to appropriate the remaining $105,000 for municipal recurring
expenses as follows:
- $70,000 to hire several new civilian dispatch personnel as we begin the transition to a
Beverly consolidated Emergency Medical Services/Police /Fire dispatch system — also
known as our local 911 dispatch system. Among many benefits, this transition will free
up several full -time police officers from dispatch to resume active service out in the
community.
- The other $35,000, I ask you to appropriate to cover a half year's cost for one new full
time position in our Executive Office — that of Constituent Services and Projects
Coordinator.
Please know I do not ask you lightly to add this position. However, after serving as your Mayor
for four years — after working in good faith each day to serve the people of Beverly, and after
working collaboratively with you and many others to make some real and lasting improvements
in our city — I state to you tonight unequivocally that there is much, much more that we can
accomplish together. There is much that we all agree needs our attention. There are many more
issues that come up that need and deserve an effective and timely response, and there are many
more initiatives and policies that need and deserve thoughtful, insightful, collaborative attention.
372
For you as City Councilors and me as Mayor, our shared priority list of worthy issues and
initiatives is long. The people of Beverly — your constituents and mine — need and desire and
deserve that we collectively act on the many issues that make a difference in the quality of life in
this community. This city Administration is filled with talented people who work hard and in
good faith to serve this community. I say to you that our Executive Office — also comprised of
talented, hard working professionals — can well utilize the greater capacity this position will
provide to move Beverly forward as we reaffirm our place as a truly world class city — one with
economic opportunity, a thriving downtown, an outstanding public educational system, well
protected resources, beautiful neighborhoods, parks, and beaches, and a high quality of life that
make us the envy of our region.
A half year's salary of $25,000, annualized to $50,000 is a sound investment that will pay
dividends many times over in the greater level of service it will provide to our constituents — and
in the increased ability it will bring for us to advance important city objectives.
With four years' experience effectively moving this city forward, I know this is right for our city
and its people. The people of Beverly have entrusted you in your role as City Councilors and me
as Mayor with the responsibility of leading this city towards a better future. They have entrusted
us all to partner collaboratively and effectively in this effort. Now I ask you, the Beverly City
Council, to express confidence in my judgement and entrust me with an additional $25,000 to
staff this position for the second half of FY2018 and up to $10,000 more if that employee
chooses our health plan.
Specifically, here are just a few of the many areas where we can make more progress and move
more effectively with greater Executive Office staffing: implementation of civilian dispatch;
implementation and management of the proposed new downtown parking plan; improvements in
our trash and recycling programs; progress in environmental and energy sustainability initiatives;
roll out of the city's new work order system to City Councilors and the public; charting the future
for the Briscoe Middle School property, specifically building and site decisions and next steps;
conducting a comprehensive evaluation of our city transit and school busing, our Council on
Aging transportation program, T and regional transit; and deciding how to proceed with
increasing transit options in Beverly to ease congestion on our roads and to decrease carbon
output community wide. Again, these are just a few examples of the many critically important
issues that demand more resources in our Executive Office.
Tonight, we have the opportunity to take a real and meaningful positive step forward by
dedicating an additional three one hundredths of one percent of our proposed amended total
operating budget for FY2018 to these critically important initiatives for the people of Beverly,
ask you to vote tonight to approve funding this position, as well as the rest of the proposed
supplemental budget before you tonight.
With the utmost respect for your ongoing service to our city and its people, I am
Sincerely yours,
Michael P. Cahill
Mayor
Comments by Citizens (subject to the conditions contained in Appendix
A to the "Rules and Orders "): Anyone who would like to speak at the
Meeting has until 9:30AM on the day of the Meeting to register with the
City Clerk. (Limit of 3 @ 5 minutes each). None
Acceptance of Minutes of Previous Meetings:
1. Monday, 20 November 2017 - Regular Meeting
Vote to Approve: 9 -0
373
Communications from His Honor the Mayor:
#545
December 4, 2017
The Honorable City Council
191 Cabot Street
Beverly, MA 01915
Dear Honorable City Council:
I hereby reappoint, subject to your review and recommendation, the following citizens to serve
on the Beverly Airport Commission:
Paul Brean
7 Dartmouth Street
Paul Trefry
43 Glidden Street
Peter Gentile
47 Middlebury Lane
Their terms are to be effective from December 31, 2017 until December 31, 2020.
Sincerely yours,
Michael P. Cahill
Mayor
Referred to Public Services
#546
December 4, 2017
The Honorable City Council
191 Cabot Street
Beverly, MA 01915
Dear Honorable City Council:
I hereby reappoint, subject to your review and recommendation, the following citizens to serve
on the Beverly Planning Board:
Ellen Flannery
30 Conant Street
Wayne Miller
5 Pasture Road
Zane Craft
5 Stone Street
Their terms are to be effective from December 31, 2017 until December 31, 2020.
Sincerely yours,
Michael P. Cahill
Mayor
Referred to Legal Affairs
#547
374
December 4, 2017
The Honorable City Council
191 Cabot Street
Beverly, MA 01915
Dear Honorable City Council:
I hereby reappoint, subject to your review and recommendation, Mr. Mark Casey, 16 Chapman
Street and Ms. Dorothy Bolas, 80 '/z Essex Street to serve on the Parks and Recreation
Committee.
Their terms are to be effective from December 31, 2017 until December 31, 2020.
Sincerely yours,
Michael P. Cahill
Mayor
Referred to Public Services
#548
December 4, 2017
The Honorable City Council
191 Cabot Street
Beverly, MA 01915
Dear Honorable City Council:
I hereby reappoint, subject to your review and recommendation, Mr. Donald Neuman, 26
Washington Street, Beverly to serve on the Beverly Harbor Management Authority.
His term is to be effective from December 31, 2017 until December 31, 2020.
Sincerely yours,
Michael P. Cahill
Mayor
Referred to Public Services
Communications from other City Officers & Boards:
#507A
Chair, Planning Board — Recommendations on Smart Grown Overlay Zoning District
( "SGOD ")
Referred to Leaal Affairs
#524A
375
Planning Director — Additional Materials — Downtown Parking Strategy /Pricing
Referred to Leaal Affairs
#550
Commissioner, Public Services — Powers & Sullivan South Essex Sewerage District
( "SESD ") Report on Examination of Basic Financial Statements — Year Ended 30 June
2017
Referred to Finance & Property
#505A
Assistant City Engineer — Pond View Lane Road Repair Approval for Street Acceptance
Referred to Public Services
#551
City Clerk — 2018 Motor Vehicle Dealers License Approvals
Referred to Leaal Affairs
#552
City Clerk — 2018 Lodging House License Approvals
Referred to Legal Affairs
Council President entertained a Motion to accept a Late File from
the Planning Director — Approved — Vote: 9 -0
LATE FILE - #508A
Planning Director —Withdrawn Until Next Term
Referred to Legal Affairs
Communications, Applications & Petitions:
#553
WorldTech Engineering — Reconstruction of Bridge Street, MassDOT Project #608348
Referred to Public Services
376
#554
MA -State Lottery Commission — Keno License application — Herman A. Spear Post
#331, 3 Judson Street
Received and Placed on File — Vote: 9 -0
Council President entertained a Motion to accept a Late File from
Jennifer Freedson — Approved — Vote: 9 -0
LATE FILE - # 555
Application — 2n Hand Junk Dealers License — Jennifer Freedson, Chive Events, 30
Rantoul Street
Referred to Legal Affairs
Communications from His Honor the Mayor (continued):
#544
December 4, 2017
The Honorable City Council
Beverly City Hall
191 Cabot Street
Beverly, MA 01915
Dear Honorable City Council:
I am pleased to submit, for your consideration, an application package for a local Tax Increment
Financing project on behalf of Harmonic Drive Systems, Inc. (HD Systems). This package
includes the required Letter of Intent submitted to my office, a supplemental application which
was submitted to the Commonwealth's Economic Assistance Coordinating Council (EACC) and
a draft of the proposed tax increment financing agreement between the City of Beverly and HD
Systems, Inc.
Currently, HD Systems is in negotiations with the owner of two parcels located on the Dunham
Ridge campus to purchase approximately 5 acres of vacant land. The company seeks property to
expand its manufacturing operations presently located in Peabody and construct a 95,000 square
foot facility in Beverly that would become its North American headquarters. Within five years
they anticipate designing an expansion of that new facility which would add 35,000 square feet.
HD Systems is part of a larger international organization with manufacturing sites in Europe and
Asia. The company engineers and manufactures precision servo actuators, gearheads and gear
component sets. Demand for these products is expected to increase dramatically given their
applications in the field of robotics. In order to keep pace with demand, HD Systems intends to
increase their manufacturing capacity seven fold by the end of 2020. Given their need to employ
highly skilled workers, it is important to them to remain in the area in order to retain their
existing workforce while drawing from the robust talent pool in the region.
HD Systems is seeking approval from the City of a ten -year Tax Increment Financing (TIF)
agreement to assist with their expansion to 50 Dunham Road. The company has submitted an
application to Massachusetts Office of Business Development (MOBD) seeking a tax credit
through the Commonwealth's Economic Development Incentive Program (EDIP). By entering
into the proposed TIF agreement HD Systems has committed to a minimum capital investment of
approximately $28 million (including purchase of the property, construction and the purchase of
377
machinery and equipment). In addition to their investment in the property, HD Systems is also
committed to retaining its existing employees and creating 90 new full time positions, 85 of
which will be set aside for skilled manufacturing positions, professional staff and managers. It is
expected that these new positions will be created within the next five years.
The City of Beverly has been very judicious in its support of projects seeking a tax increment
financing agreement, selecting those that will yield significant job growth, a demand for highly
skilled workers and substantial investment in Beverly. The proposed project is consistent with
these standards and therefore the attached application proposes reduction in real estate taxes on
new value created and assessed on the property over a ten year period. The reduction will begin
at ten percent for three years; adjust to seven and a half percent over the next three years, and
finally, to five percent for the last four years of the ten year term.
If HD Systems' application is approved, the City will realize additional real estate revenue over
and above what it would have otherwise received due to the planned investment during the term
of the agreement. It is estimated that additional tax revenue following completion of the
proposed project will be $385,000 during fiscal 2020, $38,500 of which will be exempted per the
proposed TIF agreement. It is estimated that the City will realize approximately $4 million in
additional tax revenue over the 10 year term of the agreement. This represents a significant
increase in new tax growth for the City by encouraging additional investment in an area targeted
for commercial industrial growth.
The City of Beverly's Economic and Community Development Council (ECDC) unanimously
voted in favor of the project on November 08, 2017. Please find enclosed with this package a
letter from the Chairman of the ECDC indicating their support for pursuing a tax increment
financing agreement with HD Systems. Officials from HD Systems will be present at the
December 4 City Council meeting to make a presentation outlining their project proposal.
I respectfully request your authorization to enter into a TIF agreement as proposed during the
December 4th City Council meeting.
Sincerely yours,
Michael P. Cahill
Mayor
Referred to Finance & Pro
Unfinished Business: None
Reports of Committees:
#534
The Committee on Finance & Property, to whom was referred the matter of Communication — Board of
Assessors — Allocation of FY2018 Tax Levy Percentages, have considered said matter and beg leave to
report as follows, to wit:
Recommend the Council Approve the Request
Order read once and adopted — Vote: 9 -0
#539
The Committee on Finance & Property, to whom was referred the matter of Communication — Mayor — Golf &
Tennis Club Pump House Repairs, have considered said matter and beg leave to report as follows, to wit:
Recommend the Council Approve the Request
Order read once and adopted — Vote: 9 -0
378
#540
The Committee on Finance & Property, to whom was referred the matter of Communication — Mayor — Raise
& Appropriate — FY2018 Budget, 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 raise and appropriate $945,000 for the Fiscal Year 2018 operating
budget; provided that $400,000 be allocated to the Beverly Public Schools through budget line 13104 /
57000; $440,000 be allocated to line 11 006 / 59740 for athletic and recreation field enhancements;
$25,000 be allocated to 11211 / 51137 in the executive budget; $70,000 be allocated to 12101 / 51984 in
the police department budget and $10,000 be allocated to 19141 / 51700 for health insurance costs.
Council Vice President Houseman offered an Amendment to delete the funding
($35K) for the Executive Department ($25K) and its associated Health Insurance
costs ($10K) — Failed — Vote: 4 -5 (Houseman, Lang, Martin, St.Hilaire in favor).
Council President asked for the Vice President to assume the Chair so that he
might comment on the Order at hand. Councilor -at -Large Guanci voiced his
support for the Mayor's request. Order read once and adopted — Vote: 6 -3 (Lang,
Martin, St.Hilaire opposed).
#507
The Committee on Legal Affairs, to whom was referred the matter of Communication — Planning Director —
Zoning Ordinance Amendment — 40R Smart Growth Overlay, have considered said matter and beg leave to
report as follows, to wit
Submit the accompanying amended Ordinance and recommend its adoption, pending Publication and Final
Passage:
ORDERED: Be it ordained by the City Council of the City of Beverly as follows:
In the year two thousand and seventeen
An Ordinance amending an Ordinance relative to:
Chapter 300 "Zoning"
Introducing a new Article XIX "Smart Growth and Transit Oriented Overlay Districts"
First Reading: Monday, 2 October 2017
Second Reading: Monday, 4 December 2017
Pending Publication and Final Passage
Final Passage: Monday, 18 December 2017
Order read once and adopted — Vote: 9 -0
#507A
The Committee on Legal Affairs, to whom was referred the matter of Communication — Chair, Planning Board
— Recommendation on Smart Growth Overlay District ( "SGOD "), have considered said matter and beg leave
to report as follows, to wit:
Receive and Place on File — Vote: 9 -0
#508
The Committee on Legal Affairs, to whom was referred the matter of Communication — Planning Director —
Zoning Ordinance Amendment — Solar Energy Systems, have considered said matter and beg leave to report
as follows, to wit:
Withdrawn without prejudice
Order read once and adopted — Vote: 9 -0
379
#508A
The Committee on Legal Affairs, to whom was referred the matter of Communication — Planning Director —
Withdraw until next term, have considered said matter and beg leave to report as follows, to wit:
Recommend the Council Approve the Request to Withdraw
Order read once and adopted — Vote: 9 -0
#524
The Committee on Legal Affairs, to whom was referred the matter of Communication — Mayor — Amendment
to Ch. 270 — Vehicles and Traffic, have considered said matter and beg leave to report as follows, to wit:
Receive and Place on File — Vote: 9 -0
#524A
The Committee on Legal Affairs, to whom was referred the matter of Communication — Planning Director —
Additional Materials — Downtown Parking Strategy / Pricing, have considered said matter and beg leave to
report as follows, to wit:
Submit the accompanying amended Ordinance and recommend its adoption, pending Publication and Final
Passage:
ORDERED: Be it ordained by the City Council of the City of Beverly as follows:
In the year two thousand and seventeen
An Ordinance amending an Ordinance relative to parking regulations:
Chapter 270 "Vehicles & Traffic" as indicated in Appendix A which is attached thereto.
All amendments to Chapter 270 by these Orders will go into effect on 1 July 2018.
First Reading: Monday, 6 November 2017
Second Reading: Monday, 4 December 2017
Pending Publication and Final Passage
Final Passage: Monday, 18 December 2017
Order read once and adopted — Vote: 9 -0
#551
The Committee on Legal Affairs, to whom was referred the matter of Communication — City Clerk — 2018
Motor Vehicle Dealers Licenses, have considered said matter and beg leave to report as follows, to wit:
Recommend the Licenses be granted upon receipt of all the necessary paperwork required for licensing.
Order read once and adopted — Vote: 9 -0
#555
The Committee on Legal Affairs, to whom was referred the matter of Application — 2 nd Hand Junk Dealers
License — Jennifer Freedson, Chive Events, 30 Rantoul Street — Vases, Jars, Kitchenware (non - applicance),
linens, home decor, have considered said matter and beg leave to report as follows, to wit:
Recommend the License be granted
Order read once and adopted — Vote: 9 -0
#553
The Committee on Public Services, to whom was referred the matter of Communication — WorldTech
Engineering — Reconstruction of Bridge Street, MassDOT Project #608348, have considered said matter and
beg leave to report as follows, to wit:
Recommend the Council Approve the Reappointments
Receive and Place on File — Vote: 9 -0
Motions and Orders: None
Meeting Adjourned: 11:47 PM Attest: D. Wesley Slate, Jr.
City Clerk
381
381