Special Meeting
Board of Selectmen with Finance Committee
Wednesday, April 26, 2006
7:00 p.m. HMLD Meeting Room
Board of Selectmen: Chairman Joseph Sullivan, and Selectmen Kimberly Ferguson, James Jumonville, Kenneth OBrien and David White.
Staff: Brian Bullock, Town Manager, Jacquelyn Kelly, Assistant Town Manager
Finance Committee: Chairman Paul Challenger, and Members Paul Anderson, Edmond Benoit, Alan Berg, James Dunne, Marilyn Foley, and Peter Lacy
The meeting was called to order at 7:00 p.m. The purpose of the meeting was to discuss the Rice School and other articles on the upcoming Annual Town Meeting Warrant. The Warrant was due to be posted by Friday, April 28, 2006.
Rice School
There will be three Articles on the Warrant pertaining to the disposition of Rice School. One will allow the Town to sell the building to a successful bidder, pursuant to conditions set forth in the Request for Proposals, dated March 30, 2006. The other two articles address the removal of hazardous materials from the building and demolition should no qualified bids be received. Town Manager Bullock recommended that the second two articles not be placed on the annual Warrant; action on the demolition could be authorized at a future special town meeting. Selectmen White was in favor of leaving them on the Warrant because of the need to address safety concerns with the deteriorated condition of the building. Selectman Ferguson agreed with leaving them on the Warrant because if no proposals were received in response to the RFP, the Town will be
ready to move forward and not have to wait until a future, as yet unscheduled special meeting.
Town Manager Bullock explained the financing proposal available to achieve the hazardous materials removal and demolition:
Tax Rate Impact Avg. Tax Bill Impact
Demolition - $425,000
Putnam Lane Lot Sales 325,000
Recreation Revolving 100,000
Sub-Total $425,000 $ 0.00 $ 0.00
HazMat - $425,000
5-Year Debt Exclusion $425,000 $ 0.05 $ 16.19
Total $850,000 $ 0.05 $ 16.19
Chairman Challenger reported that the Finance Committee endorsed Town Managers recommendation on funding the Rice School hazardous materials abatement and demolition.
On a motion by Selectman Ferguson, seconded by Selectman Jumonville, it was voted, 4 to 1 (Selectman OBrien opposed), to ENDORSE THE TOWN MANAGERS RECOMMENDED FUNDING OPTION FOR THE HAZARDOUS MATERIALS REMOVAL AND DEMOLITION OF RICE SCHOOL. Mr. OBrien stated that he was not in support of demolishing Rice School.
Pool Grant/ Public Safety Facility
Discussion ensued on the $800,000 pool grant from the MA Executive Office of Environmental Affairs. Town Manager Bullock commented that past practice, when grants such as the landfill capping grant were received after the project was completed, has been to deposit the money in the Infrastructure Investment Fund to return it to the taxpayers via payment of debt on other capital projects. If the grant were to be used to buy-down the pool debt, the borrowing would have to be refinanced at current interest rates, which are substantially higher than interest on the existing borrowing. In effect, there would be little if any financial benefit to the taxpayers.
The Town Manager recommended that the grant be returned to the taxpayers by applying it to the Public Safety Facility, thereby reducing the amount which would be needed through borrowing. Finance Committee Chairman Paul Challenger commented that the FinCom had reviewed the proposal to use the $800,000, and the expected sales revenue from sale of the old Police Department building, as recommended by the Town Manager, to reduce the borrowing for the Public Safety Facility, should it be successful at town meeting and the subsequent debt exclusion election. There was further discussion about possible uses of the $800,000 including returning it to the Recreation Revolving Fund, applying it towards the demolition of the Rice facility, and using it for road resurfacing and other DPW projects such as the Unionville Pond dam.
Town Manager Bullock explained that the $800,000 was incorporated into the proposed funding of the Public Safety Facility because it would increase the chances of the projects success, would be the most economical way of returning the funds to the taxpayers, and would constitute the best and most beneficial use of the funds by paying down the most expensive project (due to borrowing interest rates).
The Finance Committee voted unanimously to apply the $800,000 to the Public Safety facility project due to the savings that would accrue over the twenty year bond period. Chairman Challenger explained that it was the Finance Committees motion that would be presented to Town Meeting. If the Selectmens position on the motion is in conflict with the Finance Committee, the Selectmen can make a motion to amend on the floor of Town Meeting. The Selectmen agreed to take a position on this matter at their meeting on May 15, 2006 just prior to Town Meeting.
Asset Management Fund
Earlier in the budget season, the concept of using the proceeds from the Putnam Lane lots (and other revenue from the sale of town assets) to establish an Asset Management Fund had been proposed by the Board of Selectmen and then forwarded to the Finance Committee. A guiding concept of such a Fund would be to use one-time assets for one-time projects or events. Town Manager Bullock explained that if the Rice School demolition was passed over at Town Meeting, the revenue from the Putnam Lane lots would be available for appropriation to the proposed Asset Management Fund or the Infrastructure Investment Fund. Finance Committee Member Berg stated that the FinCom was on record as supporting the use of the IIF as a vehicle for the Asset Management Fund. The Asset Management Fund would be segregated within the IIF and the Trustees would administer
it pursuant to guidelines as yet to be developed.
On a motion by Selectman White, seconded by Selectman Ferguson, it was unanimously voted, 5 to 0, to REMOVE THE PLACEHOLDER ARTICLE CONCERNING ESTABLISHMENT OF AN ASSET MANAGEMENT FUND FROM THE ANNUAL TOWN MEETING WARRANT.
Adjournment
At 8:55 p.m. on a motion by Selectman Jumonville, seconded by Selectman White, it was voted to adjourn the special meeting of the Board of Selectmen.
Approved: June 5, 2006
| 
