Joint Meeting of the Board of Selectmen and the Middle Line Road Subcommittee.
February 21, 2006
2:00p.m.
Town Hall
Present: Frank Fenner Jr., Chair, J.B. Riggs Parker, Warren Doty, Ronald Rappaport, Steve Schwab, Jim Feiner, Andrew Goldman, Tim Carroll, Executive Secretary, and Deborah Cini, Administrative Assistant.
Call to Order:
Mr. Fenner called the meeting to order at 2:00p.m.
Conflict of Interest:
The Island Housing Trust (IHT) has made a submission to the Town of Chilmark in response to the Chilmark Housing Committee (CHC) Request For Proposals (RFP) regarding the Middle Line Road Affordable Housing. In that submission, a letter from the Dukes County Savings Bank was included and indicated that the Bank would consider possibly loaning money to the Island Housing Trust in connection with the project. Mr. Fenner and Mr. Rappaport are board members of Dukes County Savings Bank and Mr. Doty is a board member of the Island Housing Trust. Mr. Rappaport contacted the Ethics Commission on behalf of Mr. Fenner, Mr. Doty and himself because if Mr. Fenner and Mr. Doty were found to be in conflict of interest, there would be no disinterested quorum of the Board of Selectmen to deal with the submission. Further, if Mr.
Rappaport is in conflict, he might not be able to continue as counsel in the matter. Mr. Rappaport stated the Ethics Commission staff determined that all have a conflict of interest. He further stated that the Ethics Commission stated that if Messrs. Fenner and Doty properly disclose their interests, it would be possible to invoke the “Rule of Necessity” (which permits those in conflict to act if there is no other way to convene a quorum of the body) so that the Selectmen could deal with the submission by the Island Housing Trust. Accordingly, in order to resolve this difficulty, Mr. Fenner and Mr. Doty agreed to sign a disclosure of financial interest, which would be made public by attachment to these minutes.. Mr. Parker, as the only member of the Board not in conflict in this matter, said he would make every effort to disclose the process which had been followed at this meeting so the Town will be reassured the Board is proceeding
properly under the ethics rules.
Mr. Parker then moved to invoke the rule of necessity. Mr. Doty seconded. Motion approved with three ayes..
Mr. Rappaport then advised that in order to resolve the conflict of interest for Mr. Rappaport the Board of Selectmen must determine that his interests are not so substantial as to be deemed likely to affect the integrity of the services which the Town may expect from him. Mr. Parker moved to determine that Mr. Rappaport and his associate Cynthia Wansiewicz's interests are not so substantial as to be deemed likely to affect the integrity of the services which the Town may expect from them. Mr. Fenner seconded the motion. Motion carried unanimously.
The Board of Selectmen signed a letter affirming the vote with respect to Mr. Rappaport and Ms. Wansiewicz as stated above.
Mr. Parker noted for the record that John Keene of John Keene Excavation is his stepson, but that no conflict is thereby created.
The Board of Selectmen requested Mr. Rappaport contact the Ethics Commission on Mr. Abrams and Mr. Ambulos's behalf. Mr. Abrams is a board member of the Island Housing Trust, the Island Affordable Housing Fund, which may be approached for funding, and is a principal in the South Mountain Company, which developed the original concept plan for the Middle Line Road Housing and is now proposing to build the project. Mr. Ambulos has been selected by the Planning Board as a possible member of the Chilmark Housing Committee and has applied for a Homesite Housing Lot which may be awarded in the Middle Line Road project..
Middle Line Road Project and IHT Response:
Mr. Fenner requested an update of this morning’s meeting. Mr. Doty explained IHT submitted an addendum to their initial response to the RFP with changed median income ranges and modified cost of rentals. He noted that Modular housing is not possible since it would be more disruptive to the site; too many trees would have to be cut down on Middle Line Road. The 10% management fee that is in the Proforma is for a management company which Dukes County Regional Housing Authority uses for its maintenance and rent collecting. Any net operating income from the project would be put into a fund and could be used however the town sees fit.
Mr. Fenner stated he is concerned with the 99-year lease and would prefer a maximum of 50 years. His concern is taking control out of the Town leaders’ hands for such a long time. Mr. Parker stated he is concerned about the town maintaining distance from the project because of the presumed exemption from the normal procurement laws. He also expressed concern about the restrictions which might apply where CPA monies are concerned. Mr. Rappaport would like outside counsel to provide opinion on these concerns.
Mr. Doty moved to allow counsel to hire Josh Davis as special counsel on this and any other issues Town counsel sees fit. Motion approved by all. Mr. Rappaport will refer the IHT response to Josh Davis for review and opinion, as he is familiar with the CPA legislation.
Mr. Fenner is concerned about the usage of CPA funds, as preference is not allowed. Footnote #5 was considered unacceptable since it put the risk of cost overruns on the Town and eliminated risk for the developer. Concern was also expressed about the $260,000 in profit in the proforma. It was stated the 20-year projection is padded and needs to be trimmed. Mr. Parker stated he sees risk on the side of the Town and not the IHT. The possibility of putting out a new RFP with a request for design specs included was discussed.
The subcommittee addressed concerns about the town not receiving monetary value for what they are building. Mr. Goldman stated the town has a volunteer service nature, however we are marching towards a paid system when, for example a firefighter must move to West Tisbury in order to obtain housing. "Is this really the direction in which the Town wishes to go to?" The subcommittee feels a point has been reached where CPA funds are expected to fund this project.
The subcommittee also informed the Board of Selectmen that the Chilmark Housing Committee (CHC) is currently working on the selection criteria for the Homesite housing lots and the Implementation Guidelines. Mr. Parker is concerned with the selection criteria, the IHT ground lease and the inheritance of the people who are not qualified.
The Board of Selectmen has 90 days to respond to the RFP. Mr. Rappaport will review the Town options and return in two weeks with an opinion.
Meeting adjourned.
These minutes respectfully submitted by Deborah Cini, Administrative Assistant.
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