Regular Meeting of the City Council was held in the Council Chamber on Thursday, March 22, 2001 at 7:00 P.M. for the purpose of transacting any and all business. Notice of this meeting was posted on March 16, 2001 at 11:59 A.M.
Councillor LaCava was absent.
Council President Joan B. Lovely presided.
Councillor Hayes moved to dispense with the reading of the record of the previous meeting. It was so voted.
President Lovely requested that everyone please rise to recite the Pledge of Allegiance.
Councillor DeToma requested a moment of silence for Juliet Bryce, wife of Councillor Scott LaCava, who was seriously injured in a car accident last evening.
#186 - #187 - REAPPOINTMENT OF CONSTABLES
The Mayor's reappointment of the following Constables for terms as designated, was received and filed.
Mark L. Finer for a term to expire March 8, 2004
Reid A. Hoover for a term to expire April 3, 2004
#188 - APPR. POLICE DEPARTMENT SALARIES
The following Order, recommended by the Mayor, was referred to the Committee on Administration and Finance under the rules.
Ordered: That the sum of Twenty One Thousand Two Hundred Sixty Dollars and eighty eight cents ($21,260.88) is hereby appropriated from the "Fund Balance Reserved for Appropriation - Free Cash" Account to the "Police Department - Salaries - Full-time" Account in accordance with the recommendation of His Honor the Mayor.
#189 - MAYOR EXECUTE 10-YEAR LEASE AGREEMENT WITH BROTHERS DELI FOR SOUTH HARBOR GARAGE
The following Order, recommended by the Mayor, was referred to the Committee on Community and Economic Development.
ORDERED: That the Salem City Council hereby authorizes the Mayor to execute of a ten-year lease agreement between the City of Salem and Brothers Restaurant and Deli for the lease of retail space located at 245 Derby Street on the first floor of the South Harbor Garage.
# 190 - MAYOR EXECUTE LICENSE AGREEMENT WITH DICK & JUNE'S ICE CREAM FOR GOLF COURSE CONCESSION
The following Order, recommended by the Mayor, was referred to the Committee on Administration and Finance to report out at the next meeting.
ORDERED: That the Salem City Council hereby authorizes the Mayor to execute a License Agreement between the City of Salem and Debra Farley, dba Dick & June's Ice Cream for the operation of the Olde Salem Green Food & Beverage Concession for one year with an option for two additional years in one-year increments.
#190 - CHURCH STREET PARKING LOT NO LONGER ACCEPTING PASS CARDS AND TWELVE HOUR STAMPS
The following Order was received after the deadline of Tuesday Noon. Councillor DeToma requested and received unanimous consent to suspend the rules.
The following Order, recommended by the Mayor, was adopted. Councillor DeToma requested and received unanimous consent to suspend the rules to allow Ms. Suzanne Hensley of the Parking Department Board to speak.
ORDERED: Upon the adoption of this Order, the City of Salem shall no longer accept pass cards or twelve-hour stamps at the Church Street Parking Lot.
#191 - CAPITAL OUTLAY EQUIPMENT FOR TELEPHONE SYSTEM AT 120 WASHINGTON STREET (PEABODY BLOCK)
The following Order was received after the deadline of Tuesday Noon. Councillor Driscoll requested and received unanimous consent to suspend the rules.
The following Order, recommended by the Mayor, was referred to the Committee on Administration and Finance under the rules.
ORDERED: That the sum of Twenty Two Thousand Four Hundred Forty-four Dollars and eighty cents ($22,444.80) is hereby appropriated to the "Capital Outlay - Equipment" Account to be expended to make the necessary upgrades to the City's telephone system at 120 Washington Street in accordance with the recommendation of His Honor the Mayor.
#193 - BOND ORDER - APPR. $12,850,000.00 FOR ADDITIONAL COSTS OF HIGH SCHOOL RENOVATION PROJECT
The following Order was received after the deadline of Tuesday Noon. Councillor Driscoll requested and received unanimous consent to suspend the rules.
The following Order, recommended by the Mayor, was referred to the Committee on Administration and Finance under the rules.
ORDERED: That the sum of Twelve Million Eight Hundred Fifty Dollars ($12,850,000.00) be and hereby is appropriated for the purpose of paying additional costs of adding to, renovating, reconstructing, making extraordinary repairs to and equipping the Salem High School, including the payment of all costs incidental and related thereto, and that to raise this appropriation the City Treasurer, with the approval of the Mayor, is hereby authorized to borrow the sum of Twelve Million Eight Hundred Fifty Dollars ($12,850,000.00), under and pursuant to Chapter 44, Section 7, Clause 3 and Clause 3A and Chapter 70B of the Massachusetts General Laws, as amended and supplemented, or any other enabling authority, and to issue bonds or notes of the City therefor.
#194 - BOND ORDER - APPR. $4,000,000.00 FOR ADDITIONAL COSTS OF WITCHCRAFT HEIGHTS SCHOOL RENOVATION PROJECT
The following Order was received after the deadline of Tuesday Noon. Councillor Driscoll requested and received unanimous consent to suspend the rules.
The following Order, recommended by the Mayor, was referred to the Committee on Administration and Finance under the rules.
ORDERED: That the sum of Four Million Dollars ($4,000,000.00) be and hereby is appropriated for the purpose of paying additional costs of adding to, renovating, reconstructing, making extraordinary repairs to and equipping the Witchcraft Heights Elementary School, including the payment of all costs incidental and related thereto, and that to raise this appropriation the City Treasurer, with the approval of the Mayor, is hereby authorized to borrow the sum of Four Million Dollars ($4,000,000.00), under and pursuant to Chapter 44, Section 7, Clause 3 and Clause 3A and Chapter 70B of the Massachusetts General Laws, as amended and supplemented, or any other enabling authority, and to issue bonds or notes of the City therefor.
#195 - TAX INCREMENT FINANCE AGREEMENT WITH SALEM GLASS COMPANY
The following Order was received after the deadline of Tuesday Noon. Councillor Driscoll requested and received unanimous consent to suspend the rules.
The following Order, recommended by the Mayor, was referred to the Committee on Administration and Finance.
PROJECT SUMMARY AND REQUEST
FOR TAX INCREMENT FINANCING AGREEMENT
Salem Glass Company, a Salem based manufacturer of aluminum curtain walls, windows, storefronts and entrances, intends to purchase a 4.4 acre in the business park on Swampscott Road and to construct a new 48,000 s.f. manufacturing facility. The total budget for the project is approximately Four Million Dollars.
For Salem Glass Company, the purpose of this project is to improve its competitiveness in its marketplace and increase its manufacturing capacity and capability. After 71 years in Salem, and over 50 years at the same address, Salem Glass Company's current location and facility are making it increasingly expensive to serve its client's needs in a competitive market place. The Company is limited in the scope and size of work that it can perform and logistical barriers are unnecessarily adding variable costs.
For the City of Salem, the benefits of this project are: 1) to retain a 71 year old Salem based manufacturer with growth potential; 2) to save 80-1 00 jobs; 3) to establish the opportunity for job creation; 4) to retain a large purchaser of goods and services of the City's businesses; 5) to expand the City's tax base; and 6) to kick start the development of the dormant 5-year old industrial park on Swampscott Road.
Salem Glass currently operates a facility at 75 Canal Street in Salem. The new plant at Swampscott Road would increase the size of the facility by 7l% and the land area by 500%. When the facility is complete and operational, all of Salem Glass Company's 40 employees will be assigned to the new plant. We anticipate 10- 1 5 new employees will be hired and assigned to the new plant over time. Additional field personnel (possibly 15-30 depending on market conditions) will also be hired as a result of the expansion of the Company's Facilities. Salem Glass Company hopes that Salem residents will fill a high percentage of the full time manufacturing positions. We have applicants on file from Salem residents, mostly by foot traffic, but no place to put them.
The proposed project is located just 1.5 miles from Salem Glass Company's existing facility. Transition into the building will be smooth and should not affect our ability to meet the needs of our customers. The close proximity of the new plant will
allow us to retain all of our current employees, which was a very high priority in our development process.
After 50 years in the same facility, reworking layout and processes, adding people and equipment, adapting new technology and applying good old fashion work ethics, our work is bringing diminishing returns. The material that we handle is 24-30 feet long. Our current column spacing is 12-15 feet. Today's tractor-trailers are 13' high and 60' long and they cannot get into our building or even around the block. We are spending a greater and greater percentage of our labor on non-valued added operations like loading,
unloading, moving material, and shifting product. Our value added operations are improving, but our costs are not reflecting this because of the wasted non-value added variable costs.
Following is a summary of the mutual benefits of the project to the City and Salem Glass Company:
Benefits to Salem Glass Company:
• The Company will receive approximately $394,375 in local property tax benefits over 10 years
• The Company will receive State investment tax credits as a result of investment in equipment
• The new facility that will enable Salem Glass Company to conservatively increase sales by IO% by 2002
Benefits to the City of Salem:
· The project retains 40 jobs in Salem and adds 10-15 more
· Taking into account a successful TIF agreement, the immediate incremental real estate tax revenue will increase by $7,111 over the amount the Company now pays.
The project will ultimately generate new tax revenue of $99,261
Salem Glass Company will maintain its current location on Canal Street during construction, continuing to generate revenue for the City.
The current industrial facility on Canal Street will be leased and/or developed in the future bringing new jobs and tax revenues to the Salem.
Salem will maintain a large purchaser of the City's goods and services in the City The City will have a strong anchor to encourage new activity in the dormant industrial park at Technology Way.
In order for the project to succeed and for the Company and the City to receive
the associated benefits, Salem Glass Company is proposing a tax increment financing plan as follows:
I . The term of exemption would be IO years.
2. Calculation of proposed exemption:
The base valuation of the 4.4 acre parcel of land is $930,000.00, based on the purchase price which results in a base tax bill of $27,556.00. The completed value of the project is anticipated to be $3,350,000.00, which would result in a tax bill of $99,261.00. The increment therefore is $71,705.00.
The proposed exemption is as follows:
YEAR SALEM GLASS COMPANY PAYS
1 Only the base tax bill of $27,566
2 Only the base tax bill of $27,566
3 12.5% of the increment, plus base tax bill
4 25.0% of the increment, plus base tax bill
5 37.5% of the increment, plus base tax bill
6 50.0% of the increment, plus base tax bill
7 62.5% of the increment, plus base tax bill
8 75.0% of the increment, plus base tax bill
9 87.5% of the increment, plus base tax bill
10 I 00% of the increment, plus base tax bill
The attached spread sheet shows the estimated tax benefits of the project to the
City and the Company.
(#204) - COMM. FROM MARTIN HAWRYLUK REGARDING PICKERING WHARF HOTEL CONSTRUCTION DELAY
Councillor Driscoll moved to take out of Order, under Petitions, the request of Martin Hawryluk to speak regarding the Pickering Wharf Hotel Project. It was so voted.
Councillor Driscoll requested and received unanimous consent to suspend the rules to allow Attorney Frattaroli to speak.
Attorney Frattaroli advised the Council of their plans and further stated that they are not requesting any City Council action.
Councillor Driscoll moved that the communication be received and filed. It was so voted.
Councillor Driscoll moved to return to the regular order of business. It was so voted.
#196 - GOVERNMENT SERVICES COMMITTEE MEET TO DISCUSS SNOW REMOVAL
Councillor Flynn, in conjunction with President Lovely, introduced the following Order, which was adopted.
Ordered: That the Director of D.P.W., Director of Parks and Recreation, Building Inspector and School Dept. Director of Buildings and Grounds be invited into the Committee on Government Services to discuss snow removal.
#197 - PUBLIC WORKS DIRECTOR AND FINANCE DIRECTOR FORWARD SNOW REMOVAL COSTS TO COUNCIL
Councillor Driscoll introduced the following Order which was adopted.
Ordered: That the Department of Public Works Director and the Finance Director forward an accounting of snow removal costs for this fiscal year to the City Council.
Councillor Flynn assumed the Chair for President Lovely.
#198 - DOGS AT BROAD STREET CEMETERY, LEASH LAW, ANIMAL WASTE ISSUES
Councillor Lovely introduced the following Order which was adopted.
ORDERED: That the Cemetery Commission, the Cemetery/Shade Tree Department, the Animal Control Officer, the Broad Street and High Street Neighborhood Associations, the Veterans Group and any and all interested parties be requested to appear before the Committee on Public Health to discuss the situation regarding the Broad Street Cemetery.
#199 - RESTORATION OF BROAD STREETAND CHARTER STREET CEMETERIES
Councillor Lovely introduced the following Order which was adopted.
ORDERED: That the Planning Department, Cemetery/Shade Tree Department, and the Cemetery Commission be requested to appear before the Committee on Community and Economic Development to discuss the Broad Street and Charter Street Cemeteries.
#200 - AUDIT AND FINANCIAL REPORT OF CITY AND SCHOOL DEPARTMENTS
Councillor Driscoll introduced the following Order which was adopted.
ORDERED: That the Financial report of February 28, 2001 for the City and the School Department be received and placed on file.
President Lovely resumed the Chair.
#201 - GRANTING LICENSES
Councillor Hayes offered the following report for the Committee on Ordinances, Licenses, and Legal Affairs. It was voted to accept the report and adopt the recommendation.
The Committee on Ordinances, Licenses & Legal Affairs to whom was referred
the matter of granting certain licenses has considered said matter and would recommend that the following be granted
USE OF COMMON Andrew Van den Houten, (Movie) 2211 Broadway, New York City, N.Y., April 27th, 30th & May 1, 2001
Kyle Reid, (wedding) 316 Bell Ave., Ashley OH, Sept. 15, 2001
#202 - (#118) - VENDORS LICENSES FOR THE MONTH OF OCTOBER
Councillor Hayes offered the following report for the Committee on Ordinances, Licenses, and Legal Affairs. It was voted to accept the report and adopt the recommendation.
The Committee on Ordinances, Licenses & Legal Affairs to whom was referred the matter of vendor licenses for the month of October has considered said matter and would recommend that the City Solicitor and the Licensing Board discuss the matter and draw up an amended Ordinance to be adopted by the City Council
# 203 - (#116) - APPR. POLICE SALARIES
Councillor Driscoll offered the following report for the Committee on Administration and Finance. It was voted to accept the report and adopt the recommendation.
The Committee on Administration and Finance to whom was referred the matter of a transfer of $19,882.00 for Police Department Salaries Account has considered said matter and would recommend that it be granted.
#205 - USE OF SALEM COMMON FOR WEDDING, CHERIE KOSTEL
The request of Cherie Kostel to use the Salem Common for a wedding on July 6, 2001, was referred to the Committee on Ordinances, Licenses, and Legal Affairs.
#206 - TAXI OPERATOR APPLICATIONS
The following Taxi Operator Applications were referred to the committee on Ordinances, Licenses, and Legal Affairs.
Carlos A. Costa, 105 Wordsworth St., Boston
Francisco Marte, 27 Union Court, Lynn
Oscar R. Severino, 413 Boston St., Lynn
Gustavo Valencia, 832 Summer Street, Lynn
#207 - #208 - DRAINLAYER/CONTRACT OPERATOR LICENSES
The following Drainlayer/Contract Operator Licenses were granted.
William Faia & Sons, 35 Buena Vista Street, Swampscott
#209 - CLAIM
The following Claim was referred to the Committee on Ordinances, Licenses, and Legal Affairs.
John P. Haley, 1 Victoria Lane, Marblehead
#210 - #212 - BONDS
The following Bonds were referred to the Committee on Ordinances, Licenses, and Legal Affairs and returned approved.
DRAINLAYER William Faia & Sons, 35 Buena Vista Street, Swampscott
SIGN Hayden Safe & Lock Inc., 119 Webb Street
CONSTABLE Mark Finer, 31 Pinecrest Road, Peabody
(#158) - SECOND PASSAGE - ORDINANCE - TRAFFIC, TOW ZONE, LEAVITT STREET
The matter of second and final passage of an Ordinance amending Traffic, Section 74, Tow Zone, Leavitt Street, was then taken up. The Ordinance was adopted for second and final passage.
(#160) - SECOND PASSAGE - ORDINANCE - TRAFFIC, HANDICAP PARKING, #9 SALEM STREET
The matter of second and final passage of an Ordinance amending Traffic, Section 50B, Handicap Parking, #9 Salem Street, was then taken up. The Ordinance was adopted for second and final passage.
#161 - SECOND PASSAGE - ORDINANCE - TRAFFIC, RESIDENT PARKING, FEDERAL STREET
The matter of second and final passage of an Ordinance amending Traffic, Section 75, Resident Sticker Parking, Federal Street, was then taken up.
Councillor Flynn amended to delete the existing wording and insert in place thereof, the following:
"Federal Street, from Flint Street to Boston Street, both sides, in a southerly direction, Resident Sticker Parking, Tow Zone"
The amendment was adopted.
The Ordinance was adopted for second and final passage as amended, so that it shall now read as follows:
In the year two thousand and one
An Ordinance to amend an Ordinance relative to Traffic, Resident Sticker Parking
Be it ordained by the City Council of the City of Salem, as follows:
Section 1. Chapter 42, Section 75, Resident Sticker Parking, is hereby amended by adding the following:
"Federal Street, from Flint Street to Boston Street, both sides, in a southerly direction, Resident Sticker Parking, Tow Zone"
Section 2. This Ordinance shall take effect as provided by City Charter.
#168 - SECOND PASSAGE - ORDINANCE AMENDING TRAFFIC, SERVICE ZONE, WASHINGTON STREET
The matter of second and final passage of an Ordinance amending Traffic, Section 13, Service Zone, Washington Street, was then taken up. The Ordinance was adopted for second and final passage.
#169 - SECOND PASSAGE - ORDINANCE AMENDING TRAFFIC, STOP SIGN, SALEM STREET
The matter of second and final passage of an Ordinance amending Traffic, Section 49, Stop Sign, Salem Street, was then taken up. The Ordinance was adopted for second and final passage.
On the motion of Councillor Hayes, the meeting adjourned at 8:30 P.M.
ATTEST: DEBORAH E. BURKINSHAW
CITY CLERK
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