REVISED
A Regular Meeting of the City Council was held in the Council Chamber on Thursday,
December 9, 2010 at 7:00 P.M., for the purpose of transacting any and all business. Notice of
this meeting was posted on December 2, 2010 at 7:01 P.M. This meeting is being taped and is
live on S.A.T.V.
Councillor Lovely was recorded as absent.
Council President McCarthy presided.
Councillor Pinto moved to dispense with the reading of the record of the previous meeting. It was so voted.
President McCarthy requested that everyone please rise to recite the Pledge of Allegiance.
Councillor Sosnowski requested a moment of silence for Sgt. James Ayube a Salem resident who was killed in Afghanistan.
Councillor O'Keefe requested a moment of personal privilege to present Council President McCarthy with a parting gift. There was no objection.
A Public Hearing of the City Council for the purpose of discussing the allocating of local property tax levy among the (4) property classes for the fiscal year 2011, and the residential, open space, and small commercial exemption options.
Council President Robert K. McCarthy presided.
In attendance was Members of the Board of Assessors Richard Jagolta, Don Bates and Damian Johnson, Finance Director Richard Viscay, and the Assessor Deborah Jackson and his staff Joe Murphy and Paul Tierney.
President McCarthy then turned the Public Hearing over to the Board of Assessors to make a presentation.
The hearing was then turned over to the Assessor Deborah Jackson.
Ms. Jackson introduced her staff and the Board of Assessors. She gave the definitions of terms with a power point presentation.
CIP - Commercial Industrial Factor
RF - Residential Factor
Levy - dollars to be reused through taxes
RES - Residential Property Classification
She stated that the Levy has gone up on an annual basis of 2 ½ percent. To calculate the FY2011 Levy Limit you take the FY2010 Levy Limit
$70,134,978
Add: 2.5% Increase 1,753,374
Add: FY2011 New Growth 1,104,777
FY2011 Levy Limit $72,993,129
Ms. Jackson continued that the assessors look at the Sales of 2009 which was 826 in 2009. The slide show showed 290 Condominiums, 220 single families, 214 multi-families, 41 commercial and industrial properties and 61 other sales of mixed use, land, etc. These sales of 2009 are used to determine the FY2011 values. The residential parcels are made up of 42% single family, 33% condos, 14% two families, 5% three families, 3% multi family and 3% residential land.
The average single family bill in Salem for FY2010 was $4,370. In comparison to neighboring communities Danvers was $4,576, Marblehead $6,561, Peabody $3,111, Gloucester $4,997, Lynn $3,480, Beverly $5,011 and Swampscott $7,843.
The recommended CIP Shift and tax rate is 1.65 which is 85.4083%.
Councillor Ronan questioned the adoption of an Appropriation to offset tax to be raised why is it $934,000? Our accounting so it would be that it off sets our tax rate.
Mr. Viscay explained in the summer when the budget is adopted the revenues are only an estimate, now we have the exact figure to move revenues towards the tax rate.
Council president McCarthy opened the public hearing to the audience.
Mayor Driscoll stated that this year under our levy limit and to balance the budget in the spring is commendable. We don't have to maximize taxes to the residents and have $600,000 in reserves while also maintaining services. We support 1.65 tax rate. Our businesses pay a little more that residential and they still help us with donations.
Councillor Pelletier asked about this years tax rate in regards to the power plant closing?
Mayor Driscoll stated currently we have 1.65, we have a study regarding the power plant.
Rinus Oosthoek Director of the Chamber of Commerce, stated we work closely with the Council but putting the numbers in prospective for businesses accordingly it's $29 per thousand in Salem, Gloucester is $11.00 per thousand and Beverly is $19.42 per thousand. Keep in mind when setting the rate the new growth is important to focus on with all the challenges ahead of us. We need to be smart about our growth.
Councillor McCarthy thanked the Assessor and the Board of Assessors for their presentation and moved that the public hearing is closed. It was so voted.
(#614) - APPOINTMENT OF KATHLEEN MCMAHON AS CITY TREASURER
Held from the last meeting the Mayor's appointment of Kathleen McMahon to serve as the City of Salem's Treasurer with a term to expire on January 31, 2013 was held until the next meeting of January 13, 2011 due to the absence of Ms. McMahon.
#652 - CONSTABLES
The Mayor's appointments of the following to serve as Constables with the following terms to expire, was received and placed on file.
Johanna Rodriguez, 4 Holly St. #2, Salem Term to Expire: November 23, 2011
Elvin Rodriguez, 4 Holly St. #2, Salem Term to Expire: November 23, 2011
Ernasto Ayala, 4 Holly St. #1, Salem Term to Expire: November 24, 2011
Victor Nolasco, 298 Washington St., Salem Term to Expire: November 24, 2011
#653 - APPR. FROM "FREE CASH" TO STABILIZATION FUND & CAPITAL IMPROVEMENT FUND
The following Order recommended by the Mayor, was referred to the Committee on Administration and Finance under the rules.
ORDERED: That the sum of Three Hundred Thousand, Two Hundred and Forty-Four Dollars ($300,244.00) is hereby appropriated from "General Fund Balance Reserved for Free Cash" to the following special revenue funds. The amount of free cash to be transferred is per the City's Financial Policies and in accordance with the recommendation of Her Honor the Mayor.
Stabilization Fund - 20% $150,122.00
Capital Improvement Fund 20% $150,122.00
#654 - APPR. FROM "FREE CASH" TO THE BLANEY STREET PROJECT GRANT
The following Order recommended by the Mayor, was referred to the Committee on Administration and Finance under the rules.
ORDERED: That the sum of One Hundred Fifty Thousand Dollars ($150,000.00) is hereby appropriated from the "Fund Balance Reserved for Appropriation - Free Cash" account to the "Blaney Street Project Grant" Account in accordance with the recommendation of Her Honor the Mayor.
#655 - APPR. FROM "FREE CASH" TO "VETERANS - BENEFITS"
The following Order recommended by the Mayor, was adopted under suspension of the rules.
ORDERED: That the sum of One Hundred Twenty-Five Thousand Dollars ($125,000.00) is hereby appropriated from the "Fund Balance Reserved for Appropriation - Free Cash" account to the "Veterans - Benefits" Account in accordance with the recommendation of Her Honor the Mayor.
#656 - APPR. TO BE EXPENDED FOR WHARF PROJECT AT BLANEY STREET
The following Order recommended by the Mayor, was referred to the Committee on Administration and Finance under the rules.
ORDERED: That the sum of Two Hundred Fifty Thousand Dollars ($250,000.00) is hereby appropriated within the "Capital Outlay Renovations and Repair" account to be expended for Wharf Project at Blaney Street by the Planning Department in accordance with the recommendation of Her Honor the Mayor.
#657 - TRANSFER TO PUBLIC SERVICES - WATER OVERTIME ACCOUNT
The following Order recommended by the Mayor, was referred to the Committee on Administration and Finance under the rules.
ORDERED: That the sum of Ten Thousand Dollars ($10,000.00) is hereby appropriated from the "Retained Earnings - Water Fund" account to the "Public Services - Water Overtime" account in accordance with the recommendation of Her Honor the Mayor.
#658 - ACCEPT M.G.L. CHAPTER 73 OF ACTS OF 1986 FOR FY2011 ADDITIONAL TAX EXEMPTIONS
The following Order recommended by the Mayor, was adopted by roll call vote of 10 yeas, 0 nays, 1 absent. Councillors Furey, O'Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely was recorded as absent.
Councillor O'Keefe moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied.
ORDERED: That the Mayor and City Council accept the provisions of Section 4, Chapter 73 of the Acts of 1986 for Fiscal Year 2011, and that such additional exemptions granted be 100% of the statutory exemption amounts, provided all other qualifications specified in said Section 4, Chapter 73 of Massachusetts General Laws are met.
#659 - ACCEPT DONATION FROM KERNWOOD COUNTRY CLUB
The following Order recommended by the Mayor, was adopted.
ORDERED: To accept the donation from Kernwood Country Club in the amount of Six Thousand Two Hundred Dollars ($6,200.00). These funds will be deposited into the Mayor's Donation Fund in accordance with the recommendation of Her Honor the Mayor.
#660 - FIVE YEAR LEASE AGREEMENT FOR MUNICIPAL OFFICES AT 120 WASHINGTON STREET
The following Order recommended by the Mayor, was referred to the Committee on Ordinances, Licenses and Legal Affairs.
ORDERED: That the Mayor is hereby authorized to enter into a five-year lease agreement, with five one-year extensions, with Peabody Block, LLC for the lease of approximately 20,000 square feet of office space for municipal departments at 120 Washington Street, Salem, MA. The terms of the lease are provided in the attached Lease Agreement and made part of this Order.
(Upon the execution of the Lease Agreement it will be on file in the City Clerks Office)
PEABODY BLOCK LLC
LEASE AGREEMENT
Data Page
LANDLORD: Peabody Block LLC (Owner) of 120 Washington Street (commonly referred to as the Peabody Block) in Salem, Massachusetts with corporate offices located at c/o RCG LLC, 17 Ivaloo Street, Suite 100, Somerville, MA 02143 and its Property Management Agent RCG LLC (hereafter referred to as "Landlord")
TENANT: City of Salem, Office of the Mayor, 93 Washington Street, Salem, MA 01970 (hereafter referred to as the "Tenant").
LEASE TERM: Five (5) years as further defined herein.
ANNUAL RENT: Three Hundred Forty Thousand Dollars ($340,000)
RENEWAL OPTION: Five, separate, one-year (1 year) extension options as further defined herein.
PREMISES: Office space consisting of approximately 20,000 +/- rentable square feet known as the City Hall Annex at 120 Washington Street, including accessible common areas, bathrooms, currently used basement storage space, 2nd floor North, the 3rd floor and the fourth floor (the "Premises") with options to expand its space as further described herein, being part of the building and land located at 120 Washington Street at the corner of Washington Street and Essex Street, Salem, MA (the "Building").
COMMENCEMENT DATE OF LEASE: February 1, 2011.
USE AND RESTRICTION: The leased Premises may be used for offices, public meetings and other business of the City of Salem.
DATE OF LEASE: December , 2010
AGREEMENT OF LEASE
1. Demised Premises. In consideration for the rents and covenants hereinafter set forth, Landlord hereby leases to Tenant the Premises described on the Data Page of this lease, which is the same Premises as Tenant has occupied since 2001.
2. Subordination of Lease. Tenant's rights under this Lease Agreement (hereinafter referred to as the "Lease Agreement" or the "Lease") are, however, and shall always be subordinate to the operation and effect of any mortgage, deed of trust or other security instrument now or hereafter placed by the Landlord upon the Premises or upon property of which the Premises constitute a part; provided, however, that in consideration of such agreement of subordination, Landlord agrees to obtain for Tenant, if required by tenant, a Subordination, Non-Disturbance and Attornment Agreement with respect to any mortgage or other security instrument to which this Lease is or may become subordinate. This clause shall be self-operative and no further
instrument of subordination shall be required. In confirmation thereof, Tenant shall execute such further reasonable assurance as may be requisite. Tenant is required, upon ten (10) days written notice from Landlord or Landlord's lender, to execute and deliver to Landlord or Landlord's lender, an estoppel certificate in form and substance acceptable to Landlord's lender. Tenant under no circumstances shall be permitted to record this Lease.
3. Term. Subject to Tenant's option to renew as set forth in Section 8 hereof, the term of this Lease ("Lease Term") shall commence on February 1, 2011. This will be known as the "Commencement Date." The Lease Term will expire on January 31, 2016 (the "Expiration Date"), unless the Tenant exercises the Tenant's option to renew as set forth in Section eight (8) hereof. The date on which the Lease Term expires is referred to herein as the "Expiration Date". Rent shall commence on February 1, 2011 as further described in Section 16 herein. This date will be referred to as the "Rent Commencement Date".
4. Use of Premises. The Premises shall be used by the Tenant solely for the purpose of conducting therein the business as described on the Lease Data Page.
5. Annual Rent. Tenant covenants to pay to Landlord as rent for the Premises the following Annual Rent ("Annual Rent") in equal monthly installments, in advance, on or before the first day of each month of the Lease Term:
Lease Year Monthly Installment Annual Rent
1 $28,333.33 $340,000.00
2 $28,333.33 $340,000.00
3 $28,333.33 $340,000.00
4 $28,333.33 $340,000.00
5 $28,333.33 $340,000.00
New rent, if any change, each year shall come into effect on the anniversary of the Commencement Date of the Lease in each year of the Lease Term or any renewal thereof. If the Commencement Date falls on a day of a month other than the first day of the month, the new rent shall come into effect on the first day of the first full month following the anniversary of the Commencement Date in each year of the Lease Term or any renewal thereof.
6. Rent Payments. Tenant shall promptly pay Annual Rent herein prescribed, and all other charges due and payable hereunder, including any Additional Rent, when and as the same shall become due and payable in accordance with Section 5 above. If Landlord shall pay any monies or incur any expense in correction of violation of covenants herein set forth, the amounts so paid or incurred shall, on notice to Tenant, be considered Additional Rent payable by Tenant, with the first installment of Annual Rent thereafter to become due and payable, and may be collected or enforced as by law provided in respect of rentals; provided however, that such Annual Rent is not, and shall not be deemed to be in lieu of such other remedies at law or in equity which Landlord has or may
have. All Annual Rent payable shall be paid and delivered to Landlord's Agent RCG LLC at 17 Ivaloo Street #100, Somerville, MA 02143 or at such other address as Landlord may designate from time to time in writing.
7. Security Deposit and Last Month's Rent. Tenant shall not be required to deposit a Security Deposit or Last Month Rent with Landlord.
8. Option to Extend. Tenant shall have the option to extend the Lease upon the same terms, other than the Rent, for five successive one-year terms (the so-called "Option Terms". Tenant must provide written notice to Landlord of its intent to extend the Lease at least six (6) months before the first day of the Option Term.
If Tenant does not provide written notice to Landlord of its intent to renew the Lease, Landlord in its sole discretion may place signage, banner or other advertisements on the Building, including at the level of the Premises, indicating the Premises is available for lease.
Annual Rent and Monthly Installments for each Option Term shall be subject to an increase equal to the percentage change in the "Consumer Price Index for Urban Earners and Clerical Workers, North of Boston, All Items (1982-84 =100) (hereinafter referred to as the "Price Index") published by the Bureau of Labor Statistics of the United States Department of Labor, or any comparable successor or substitute index designated by the Landlord year over year. Notwithstanding the foregoing, in no event shall the increase be less than 0% or greater than 3%. The Annual Rent for the First Option Year shall be set by increasing the current annual rent of $340,000 by the percentage change between the period of December 2015 and December 2010 and in this instance the change in rent shall not be greater than 15%, since the adjustment is
intended to adjust for changes in prices over a period of five years.
9. Real Estate Taxes, Assessments and Abatements. Tenant shall not be required to pay to Landlord any portion of Real Estate Taxes. Landlord warrants that it will timely pay real estate taxes due for the Property.
9a. Definition of Real Estate Taxes. "Real Estate Taxes" shall mean and include, without limitation, all real estate taxes, assessments, school taxes, and other governmental impositions and charges levied, assessed or imposed upon the Premises. Whether or not Landlord shall take the benefit of the provisions of any statute or ordinance permitting any assessment for public betterments or improvements to be paid over a period of time, Landlord shall, nevertheless, be deemed to have taken such benefit, so that the term "Real Estate Taxes" shall include only the current annual installment of any such assessment and the interest on unpaid installments calculated on the basis of the longest period of time over which such assessment is legally payable. A paid tax bill or copy thereof shall be submitted by Landlord to
Tenant and shall be conclusive evidence of the amount of a tax or installment thereof. Nothing herein contained shall be construed to include as Real Estate Taxes any sales tax, inheritance, estate, succession, transfer, gift, franchise, corporation, federral or local income or profit tax or capital levy that is or may be imposed upon Landlord.
9b. Abatements. Landlord shall have right to apply for abatements in Real Estate Taxes and any savings realized shall be for the benefit of Landlord exclusively.
9c. Certificate of Tax Compliance. As required from time to time at the request of Tenant, Landlord shall provide certification of tax compliance pursuant to Mass. G.L. Chapter 62C, Section 49 A).
10. Tenant's Maintenance of Premises. Landlord shall, at its own cost and expense, repair, replace, maintain in a good, safe, and functional condition, the Premises and Building. Notwithstanding the foregoing, Tenant shall pay Landlord a sum of $350 per month as a contribution for the maintenance. Additionally, Tenant shall be responsible, at its own cost and expense, for cleaning the Premises including any and all bathrooms used exclusively by Tenant and for the cleaning and maintenance of any and all floor surfaces in the Premises. Tenant shall keep the Premises free of any insects, rodents, vermin and other pests. Tenant shall be responsible for changing its own light bulbs. Tenant shall continue to maintain the small HVAC systems in the computer and
server rooms at its own expense. Tenant shall not permit accumulation of garbage, trash, rubbish and other refuse, and shall remove the same from the Premises at its expense. Tenant shall not use or permit the use of advertising medium such as flashing lights, loudspeakers, phonographs, public address system, sound amplifiers or reception of radio or television broadcast within the Premises that interfere with any other tenant's use of the Building, Tenant shall not cause or permit unpleasant odors (as reasonably determined by Landlord and Tenant or, if Landlord and Tenant disagree, by the local health inspector) to emanate from the Premises except for those lights, sounds, odors, vibrations or acts associated with the Permitted Use of the Premises by Tenant; Tenant shall not cause damage to any interior fixtures including all electrical, plumbing and other mechanical installations therein, such as heating, ventilation and air-conditioning equipment. Tenant shall promptly
notify Landlord if any system is not in good working order. Tenant shall surrender the Premises, in good repair, except for ordinary wear and tear and damage by casualty insured against. Tenant shall keep all thermostats set to no less than fifty (50) degrees Fahrenheit throughout the year.
10a. Tenant shall not overload the electrical wiring serving the Premises or within the Premises.
10b. Tenant shall not overburden the natural gas service to the Premises.
11. Compliance with Laws and Codes. Landlord acknowledges that at the commencement of this Lease that the Premises, to the best of Landlord's knowledge, shall be in compliance with the following: (a) all applicable federal, state and local building code requirements; (b) all federal, state, and local codes pertaining to life safety; (c) all harmful materials (including but not limited to asbestos and lead paint), if any, shall be removed from the Premises or maintained at lower than harmful levels, as required by law; (d) HVAC systems shall be fully automatic and capable of maintaining throughout the year minimum temperatures of 68 degrees Fahrenheit and maximum temperatures of 78 degrees Fahrenheit throughout the Premises; (e) restrooms are provided as per
all applicable federal, state and local codes; and (f) Premises meets the minimum requirements of the federal Americans with Disabilities Act. The Tenant acknowledges that no trade or occupation shall be conducted in the leased premises or use made thereof which will be unlawful, improper, noisy or offensive, or contrary to any law or any municipal by-law or ordinance in force now or hereafter enacted, promulgated or adopted in the City of Salem. Tenant shall conduct its business in the Premises in all respects in a dignified manner in accordance with high standards of operations.
12. Condition of Premises. Tenant agrees that Landlord shall deliver the Premises to Tenant in "as-is" condition, except as provided for here.
Landlord agrees to complete the following scope of work ("Landlord Scope") within the timeframes and in accordance with the terms articulated below.
" Landlord shall replace the existing cooling tower at its sole expense by no later than June 2011. After completion of replacement, Landlord will confirm cooling levels with Planning Department. Landlord shall also install programmable thermostats to control the third floor south HVAC system as is possible.
" Landlord shall replace the flooring in the following locations according to the procedures and timelines outlined below. Tenant, in each instance, shall be responsible for coordinating the temporary removal of any and all equipment, desks, and other furnishings required to be relocated to allow for the efficient installation of new flooring and Tenant shall be responsible, in each instance, to move any and all equipment, desks and other furnishings back after the installation has been completed.
Second Floor North: Landlord shall replace the carpet at the waiting area (an approximately 3' x 8' area) prior to February 28, 2011. The carpet will be of similar style and grade as currently exists in this location. No temporary relocation of equipment and furnishings is anticipated for this flooring replacement. All other carpets in this area shall be cleaned, with such timing of the cleaning to be coordinated with Tenant to be mutually convenient to both parties.
Third Floor South: Upon 60 days notice by Tenant at any point prior to February 1, 2013, Landlord shall replace the flooring as follows:
- Carpet in the main waiting area extending into the primary reception area for Inspectional services will be replaced with similar grade carpet to the current existing space, carpet tiles or VCT at an allowance of no more than $7 per square yard (materials and labor). Landlord and Tenant shall work in good faith to make the selection of a cost effective and durable material for this area. Should tenant wish to utilize carpet tiles exclusively, the cost is likely to exceed the allowance considerably.
- Carpet in the main open area of the Planning and Community Development Department shall be replaced with similar grade carpet, carpet tiles or VCT at an allowance of no more than $7 per square yard (materials and labor). Landlord and Tenant shall work in good faith to make the selection of a cost effective and durable material for this area. Should tenant wish to utilize carpet tiles exclusively, the cost is likely to exceed the allowance considerably.
- Carpet in the main area of the Purchasing Department shall be replaced with similar grade carpet, carpet tiles, VCT or carpet runner at an allowance of no more than $7 per square yard (materials and labor). Landlord and Tenant shall work in good faith to make the selection of a cost effective and durable material for this area. Should tenant wish to utilize carpet tiles exclusively, the cost is likely to exceed the allowance considerably.
- Carpet in the area of desks for most inspectors in the Inspectional Services Department shall be replaced with similar grade carpet, carpet tile, VCT or carpet runner at an allowance of no more than $7 per square yard (materials and labor). Landlord and Tenant shall work in good faith to make the selection of a cost effective and durable material for this area.
- At Tenant's option, Tenant may elect to have Landlord clean rather than replace any section of carpet (provided such section is easily separated from the balance of the area) in order to reduce interruption or for any other reason. If Tenant so elects to have the carpets cleaned, this will not result in a credit to Tenant.
Third Floor North: No flooring replacement is planned or included in this area. At any point within two years of the commencement date, Tenant may request that Landlord have these carpets cleaned and Landlord shall be obligated to provide one cleaning of these carpets at no additional cost to Tenant.
Fourth Floor South: Upon 60 days notice by Tenant at any point prior to February 1, 2013, Landlord shall replace the flooring as follows:
- Carpet in the main waiting area extending into the primary reception area for Engineering will be replaced with similar grade carpet, carpet tiles or VCT at an allowance of no more than $7 per square yard (materials and labor). Landlord and Tenant shall work in good faith to make the selection of a cost effective and durable material for this area
- VCT in the kitchen area shall be replaced with VCT
- Carpet in remaining open areas on the floor shall be replaced with similar grade grade carpet, carpet tiles or VCT at an allowance of no more than $7 per square yard (materials and labor). Landlord and Tenant shall work in good faith to make the selection of a cost effective and durable material for this area, or alternatively, Landlord will, at Tenant's request, provide a carpet runner for the main travel path.
- At Tenant's option, Tenant may elect to have Landlord clean rather than replace any section of carpet (provided such section is easily separated from the balance of the area) in order to reduce interruption or for any other reason. If Tenant so elects to have the carpets cleaned, this will not result in a credit to Tenant.
Elevator Landings on Second, Third and Fourth Floors: Landlord shall replace existing carpet with new carpet or carpet tiles at the elevator landing on each floor by no later than February 28, 2011.
" Landlord shall, at its own expense, paint the walls in the following locations, with all such work completed by no later than February 28, 2011:
Third Floor North: All pink walls in this area shall be painted an off-white color acceptable to Tenant.
Third Floor South: Walls in the main reception area for all departments shall be repainted in a color to match existing. Walls in the main area of the Purchasing Department will be repainted in a color to match existing.
Fourth Floor South: Walls in the main reception area for all departments shall be repainted in a color to match existing.
Touch-up for Other Areas in the Premises: Landlord shall provide 8 man-hours of touch-up work to be performed at locations to be selected by designated representative of Tenant, such area could include the windows in the Engineer's office on the fourth floor.
" Landlord shall remove at its own expense, within thirty days of request by Tenant, any oil paintings and/or other images currently placed on walls in the Premises. Landlord shall provide Tenant with new objects (potentially including historic images of the City of Salem, like those on the first floor of the Building or multi-media equipment, such as a projector screen) up to a maximum cost of $1,500. Such objects will be selected by Tenant in conjunction with Landlord and shall be purchased by Landlord.
" Windows in the Planning Director's office shall be investigated and repaired at cost of Landlord.
" Landlord shall complete a full cleaning of the basement egress path and ensure all lights are operational in the basement prior to the Commencement Date.
" Landlord, at its own expense, shall install motion-sensor activated light switches in the six bathrooms in the Premises and in the third floor conference rooms by no later than February 28, 2011.
13. Landlord's Maintenance and Repair of Premises. The Landlord agrees to maintain the structure of the building of which the leased premises are a part in the same condition as it is at the commencement of the term or as it may be put in during the term of this lease, reasonable wear and tear, damage by fire and other casualty only excepted, unless such maintenance is required because of the Tenant or those for whose conduct the Tenant is legally responsible. The Landlord shall, at all times during the Term of this Lease, maintain, at its own cost and expense, in a good, safe, and functional condition, all facilities, utilities and fixtures on the demised Premises, including but without limitation HVAC (except for the small systems in the computer and server
rooms), electrical wiring, plumbing and any and all other integrated utility systems and all common use facilities, provided that any damage to the systems are not the fault of the action of Tenant, its employees, agents or guests. In the event that the Landlord is prevented or delayed from making any repairs or performing any other covenant hereunder by reason of any cause reasonably beyond the control of the Landlord, the Landlord shall not be liable to the Tenant therefore nor, except as expressly otherwise provided in case of casualty or taking, shall the Tenant be entitled to any abatement or reduction of rent by reason thereof, nor shall the same give rise to a claim by the Tenant that such failure constitutes actual or constructive eviction from the leased premises or any part thereof.
Landlord shall within reasonable amount of time from its knowledge of a necessary repair, shall repair any damage to the Premises not caused by an act of Tenant or its employees, agents or guests. Tenant shall repair promptly at its own expense any damage to the premises caused by any act or omission of the Tenant, its employees, agents, contractors, invitees, or licensees, or caused by bringing into the Premises any property for Tenant's use or by the installation or removal of such property, regardless of fault or by whom such damage shall be caused unless caused by Landlord, its agent, employee or contractors; and in default of such repairs by Tenant and upon notice to Tenant, Landlord may make the repairs and Tenant shall pay the commercially reasonable cost thereof to Landlord promptly upon Landlord's demand therefore.
13a. Ice and Snow. Landlord, at is sole cost and expense, shall keep pedestrian access to the Premises and Building free of ice and snow.
13b. Rights to Remedy. If Landlord shall fail to complete any maintenance or repair work contemplated by this Section within forty-five (45) days of receiving written Notice from the Tenant that such maintenance or repair is necessary and provided that such repair or maintenance could be completed within forty-five days, then the Tenant shall have available to it the following remedies:
i. Tenant shall have the right to terminate this Lease; or
ii. Tenant shall have the right to obtain the necessary repair work at its own expense and then charge the Landlord for such expense.
Notwithstanding the foregoing, if such maintenance or repair work is not capable of being completed within forty-five (45) days of receiving written Notice from the Tenant that such maintenance or repair is necessary, provided that Landlord has demonstrated good faith efforts in initiating the repair and or maintenance within forty-five (45) days, Tenant shall not have the Right to exercise any Remedy afforded in this Section.
14. Alteration of Premises. Tenant shall not alter the exterior of the Premises and shall not make any structural alteration to the Premises or any part thereof without first obtaining Landlord's written approval of such alterations; and any improvements shall immediately become the property of the Landlord and shall remain upon the Premises in the absence of agreement to the contrary. Tenant, however, shall have the right to make interior, non-structural alterations, additions and improvements to the Premises that it shall deem desirable for the operation of its business, without Landlord's consent, provided that any such alterations, additions or improvements shall not diminish the value of the Premises nor impair the structural integrity of the
Premises or the building of which the Premises is a part. Such alterations shall be in conformance to applicable governmental codes.
15. Tenant's Work. Should Tenant wish to make any non-structural improvements to the Premises ("Tenant's Work") during the Lease Term, Tenant shall apply for all local and state permits. Tenant shall be required to provide any necessary architectural or engineering plans and such work shall be subject to the approval of Landlord, such approval not to be unreasonably withheld. Tenant shall only employ licensed and insured contractors and all work shall be conducted in a workmanlike manner and be of good quality. A copy of all construction company liability insurance certificates in amounts as required by Landlord shall be provided to the Landlord prior to the commencement of construction activities in the Premises. The insurance
certificate shall name the Landlord as a certificate holder and additional insured.
16. Signage. Tenant intends to keep the same signage on the Building as it has now. Any new signage shall require approval of Landlord, such approval not to be unreasonably withheld and shall maintain such sign, decoration, lettering, advertising matter or other thing as may be approved in good condition and repair at all times. In addition to the Landlord's consent of all signs, Tenant shall apply to any local agency, which might require its consent for the design, size and location of signage including the Salem Redevelopment Authority. The cost of all signage as well as the design and approval process to install the signage will be the sole expense of the Tenant.
17. Utilities. Landlord has provided standard water, gas and electricity service to the Premises. Tenant shall pay all charges for water, gas, electricity, telephone, heat and all other types of utilities and services to be used by the Tenant on the Premises. If utilities shall not be separately metered then Tenant shall pay tenant's percentage (which shall be determined, if applicable, by Landlord on a fair and equitable basis at Landlord's sole discretion) of the same to Landlord on a monthly basis, as additional rent. Initially, Tenant and Landlord are aware of only two utility bills which must be apportioned (natural gas and water/sewer). Tenant and Landlord have agreed that Tenant will initially pay $150 per month for natural gas and $255 per month
for water/sewer. Such charges may be adjusted from time-to-time by Landlord in a reasonable and fair manner. Any additional utility requirements for operation of the Tenant's apparatus must be done with the approval of the Landlord and at Tenant's sole expense.
Landlord shall under no circumstances be liable to Tenant in damages or otherwise for any interruption in service of water, gas, electricity or other utilities and services caused by labor disputes, or by the making of any necessary repairs or Acts of God or anything which is beyond Landlord's control. Landlord shall not be liable for consequential damages in any event.
18. Insurance. Tenant shall keep in force at its own expense so long as this Lease remains in effect and during such other time as Tenant is in possession of the Premises or any part thereof, Public Liability and Workmen's Compensation insurance with respect to the Premises with a company or companies, and in form, acceptable to Landlord. Public Liability policy shall provide minimum combined single limits of $1,000,000.00 per occurrence and $1,000,000.00 aggregate on account of bodily injury and property damage. Tenant shall deposit the policy or policies of such insurance or certificate thereof with Landlord, and all policies shall name Landlord any person, firms or corporations designated by Landlord, and Tenant as insured parties and shall contain an express
waiver of any right of subrogation against Landlord. If the nature of Tenant's operation is such as to place any or all of its employees under the coverage of local Workmen's Compensation or similar statutes, Tenant shall also keep in force at its own expense, so long as this Lease remains in effect and during such other time as Tenant occupies the Premises or any part thereof Workmen's Compensation or similar insurance affording statutory coverage and containing statutory limits and provide Landlord with insurance certificate confirming same. Landlord shall for the term of this lease carry General Liability and Building Replacement insurance on the building in which the Premises is situated.
19. Indemnification. Tenant shall indemnify Landlord and save it harmless from and against any and all claims, actions, damages, liability and expense in connection with loss of life, personal injury or damage to property arising from or out of the occupancy or use by Tenant of the Premises or any part thereof (unless arising from any omission, fault, negligence or other misconduct of Landlord on or about the Premises) or occasioned wholly or in part by any act or omission of Tenant, its employees, agents, contractors, invitees or licensees.
20. Additional Insurance Premium. Tenant shall not do or suffer to be done or keep or suffer to be kept, anything in, upon or about the premises which will breach Landlord's policies insuring against loss or damage by fire or other hazards (including but not limited to public liability) or which will prevent Landlord from procuring such policies in companies acceptable to Landlord. If anything done, omitted to be done or suffered to be done by Tenant, or kept or suffered by Tenant to be kept in, upon or about the premises shall cause the rate of fire or other insurance on the premises or other property, of Landlord, in companies to Landlord to be increased beyond the minimum rate from time to time applicable to the Premises for use for the purposes permitted
under this agreement or to such other property or of the Landlord, Tenant shall pay promptly upon Landlord's demand.
21. Landlord's Access to Premises. Tenant shall permit Landlord, its agents, employees and contractors to enter the premises and all parts thereof at reasonable times during business hours (except in the event of an emergency in which event Landlord may enter the Premises at any time) to inspect the same and to enforce or carry out any provisions of this Lease, provided that any such inspection shall be carried out in a commercially reasonable manner and in a manner reasonably calculated to minimize disruption of Tenant's business. The Landlord and its agents may show the leased premises to others within six (6) months before the expiration of the final year of this term or any extension thereof, and may affix to any suitable part of the leased premises
a notice for letting or selling the leased premises or property of which the leased premises are a part and keep the same so affixed without hindrance or molestation.
22. Assignment/Subletting. Tenant shall not assign this Lease in whole or in part, or sublet all or any part of the Premises, or license concessions or lease departments herein, without the written consent of the Landlord first obtained, such consent being at Landlord's sole discretion, Landlord will not unreasonably withhold its consent. Consent by Landlord to any assignment or subletting shall not constitute a waiver of the necessity for such consent to any subsequent assignment or subletting. Notwithstanding such consent, Tenant shall remain liable to Landlord for the payment of all rent and for the full performance of the covenants and conditions of this lease. At the sole discretion of the Landlord, this lease may be terminated should an
assignee be deemed untrustworthy or financially insolvent.
23. Bankruptcy. If any sale of Tenant's interest in the Premises shall be made under execution or similar legal process, or if Tenant shall be adjudicated as bankrupt or insolvent and such adjudication is not vacated within thirty (30) days, or if a receiver or trustee shall be appointed for its business or property, and such appointment shall not be vacated within thirty (30) days, or if a corporate reorganization of Tenant or any arrangement with its creditors shall be approved by a court under the Federal Bankruptcy Act, or if in any other manner Tenant's interest under this Lease shall pass to another by operation of law, then in any of said events Tenant shall be deemed to have breached a material covenant of this
Lease and Landlord may, at its option, re-enter the Premises and declare this Lease and the tenancy hereby created terminated; but notwithstanding such termination, Tenant shall remain liable for all rent and damages which may be due at the time of such termination and, further, shall be liable for the liquidated damages set forth in Section 27 of this Lease.
24. Tenant's Compliance. Tenant covenants and agrees that it will perform all agreements herein expressed on its part to be performed, and that it will promptly upon receipt of written notice specifying action desired by Landlord in connection with any such covenant (excluding the covenant to pay rent) commence to comply with such notice; and, further, that if Tenant shall not commence and proceed diligently to comply with such notice to the reasonable satisfaction of Landlord within forty-five (45) days after delivery thereof, then Landlord may at its option enter upon the Premises and do the things specified in said notice, and Landlord shall have no liability to Tenant for any loss or damages resulting in any way from such action by Landlord (except that Landlord
agrees to exercise reasonably due care), and Tenant agrees to pay promptly upon demand any reasonable expense incurred by Landlord in taking such action. Any forcible or other action to be taken by Landlord shall not be deemed to be, and Tenant hereby agrees that it does not constitute, trespass against the Tenant, Tenant waiving any rights it has or may have with regards to actions to be taken by Landlord pursuant to this Section 25.
25. Default. If the Annual Rent agreed to be paid, including all other sums of money which under the provisions hereof may be considered as Additional Rent, shall be in arrears in whole or in part for ten (10) or more business days after Tenant's receipt of notice of such failure, Landlord may distrain therefore. If Tenant shall violate either (a) the covenant to pay Annual Rent and shall fail to comply with said covenant within ten (10) business days after being sent written notice of such violation by Landlord, or (b) any other covenant made by it in the Lease, and shall fail to comply or commence compliance within twenty (20) days after being sent written notice of such violation by Landlord, the Landlord may, at its option, re-enter the
Premises and declare this Lease and the tenancy hereby created terminated, and Landlord shall be entitled to the benefits of all provisions of applicable laws respecting the speedy recovery of lands and tenements held over by tenants or proceedings in forcible entry and detainer.
26. Landlord's Re-Entry. Liquidated Damages upon Tenant's Default. Landlord and Tenant agree that they cannot foresee when in the lease term a breach for nonpayment of rent may occur, what the commercial rental market would be at the time of a breach, or what the cost of finding another tenant and the length of time the property might remain vacant might be. Therefore, Tenant further agrees that notwithstanding re-entry and termination pursuant to Section 26, Tenant shall be liable for liquidated damages in the amount of all rents and additional rents due for the years (including fractions of a year, if any) remaining in the Lease Term, as well as charges.
27. Landlord's Remedies. No mention in this Lease of any specific right or remedy shall preclude Landlord from exercising any other right or from having any other remedy or from maintaining any action to which it may otherwise be entitled either at law or in equity, and the failure of Landlord to insist in any one or more instances upon a strict performance of any covenant of this Lease or to exercise any option or right herein contained shall not be construed as a waiver or relinquished for the future of such covenant, right or option, but the same shall remain in full force and effect unless the contrary is expressed in writing by Landlord.
28. Binding Agreement. This Lease and the covenants and conditions herein contained shall enure to the benefit of and be binding upon Landlord, its successors and assigns, and shall enure to the benefit of Tenant and only such assigns of Tenant to whom the assignment by Tenant has been consented by Landlord.
29. Notices. Any notice from the Landlord to the Tenant relating to the leased Premises or to the occupancy thereof, shall be deemed duly served if mailed certified mail, return receipt requested, postage prepaid, addressed to the Tenant: Mayor Kimberly Driscoll, City of Salem, 93 Washington Street, Salem, MA 01970. Any notice from the Tenant to the Landlord relating to the leased premises or to the occupancy thereof, shall be deemed duly served, if mailed to the Landlord by certified mail, return receipt requested, postage prepaid, addressed to the Landlord at 17 Ivaloo Street, Suite 100, Somerville, MA 02143. All rent notices shall be paid and sent to the Landlord c/o RCG LLC, 17 Ivaloo St. Suite 100, Somerville, MA
02143. Either party may at any time, or from time to time, designate in writing a substitute address for that above set forth, and thereafter notices shall be directed to such substitute address.
30. Brokerage. Each of the parties represents and warrants that there are no claims for brokerage commissions or finders fee in connection with the execution of this Lease. Each of the parties agrees to indemnify the other against and hold it harmless from, all liabilities arising from any such claim (including without limitation the cost of counsel fees in connection therewith).
31. Submission of Lease. The submission of this Lease for examination does not constitute a reservation of or option for the Premises, and this Lease becomes effective only upon execution and delivery thereof by Landlord and Tenant.
32. Damage to Premises. If the Premises shall be damaged by fire, the elements, unavoidable accident or other casualty, but are not thereby rendered untenantable, in whole or in part, Landlord shall promptly at its own expense cause such damage to be repaired. If by reason of such occurrence the Premises shall be rendered untenantable only in part, Landlord shall promptly at its own expense cause the damage to be repaired and the Annual Rent and additional rent meanwhile shall be abated proportionately as to the portion of the Premises rendered wholly untenantable, Landlord shall promptly at its own expense cause such damage to be repaired, and the Annual Rent and additional rent meanwhile shall be abated in whole, unless within sixty
(60) days after said occurrence Landlord shall give Tenant written notice that it has elected not to reconstruct the premises, in which event this Lease and the tenancy hereby created shall cease as of the date of said occurrence, the rent to be adjusted as of such date. As used in this section, the term "the premises" shall be taken to exclude fixtures, floor coverings, furniture and equipment owned by Tenant. If twenty-five (25%) percent of floor space of the Premises is untenantable, then either one of the parties may cancel this Lease if the Landlord cannot restore the said Premises to the same or tenantable condition, as such premises reasonably were prior to casualty within ninety (90) days from the occurrence of the casualty.
33. Eminent Domain. If the whole or any part of the Premises shall be taken under the power of eminent domain, this Lease shall terminate, as to the part so taken, on the day when Tenant is required to yield possession thereof, and Landlord shall make such repairs and alterations as may be necessary in order to restore the part not taken to useful conditions; and the Rent shall be reduced proportionately as to the portion of the premises so taken. If the amount of the Premises so taken is such as to impair substantially the usefulness of the Premises for the purposes for which the same are hereby leased then either party shall have the option to terminate this Lease as of the date Tenant is required to yield possession. All
compensation awarded for such taking of the fee and the leasehold shall belong to and be the property of Landlord, except the Landlord shall not be entitled to any portion of the award made to Tenant for the cost of removal of stock and fixtures.
34. Quiet Enjoyment. Landlord agrees that upon Tenant's paying the Annual Rent and performing and observing the agreements, conditions and other provisions on its part to be performed and observed, Tenant shall and may peaceable and quietly have, hold and enjoy the premises during the Lease Term without any manner of hindrance or molestation from Landlord or anyone claiming under Landlord, subject, however, to the terms of this Lease. Tenant agrees not to allow noise or sound from its operation to impact other occupants of the Building.
35. Surrendering Possession. Removal of Property upon Termination of Lease. At the termination of this Lease or Tenant's right to possession by lapse of time or otherwise, Tenant shall yield up immediate possession of the leased Premises to Landlord with all keys and locks thereto and all improvements, alterations and fixtures now or hereafter made or installed therein, all in broom clean and sightly condition and in good repair, except for wear and tear and damage by fire or other casualty and except to the extent that Landlord is required by this Lease to maintain and/or repair such improvements, alterations and fixtures. At the termination of this Lease or Tenant's right to possession, Tenant shall remove all its trade fixtures,
electronic equipment, security equipment, data transmission device(s), removable metal partitions and any other like property installed by Tenant at its expense; and Tenant shall repair any damage to walls, floors or ceilings resulting from the removal of such items. In the event of the Tenant's failure to remove any of Tenant's property from the premises, Landlord is hereby authorized, without liability to Tenant for loss or damage thereto, and at the sole risk of Tenant, to remove and store any of the property at Tenant's expense, or to retain same under Landlord's control or to sell at public or private sale, without notice any or all of the property not so removed and to apply the net proceeds of such sale to the payment of any sum due hereunder, or to destroy such property.
36. Holdover. In the event Tenant remains in possession of the Premises after the expiration of the Term or Option Term, as the case may be, without the execution of a new Lease or renewal of this Lease Tenant shall be deemed to be occupying the Premises as a tenant from month to month and shall pay monthly rent at One Hundred Twenty-Five (125%) percent of the Rent then in place, and shall additionally be subject to all the other conditions, provisions, and obligations of this Lease insofar as the same are applicable to a month to month tenancy.
37. Environmental Matters. To the best of Landlord's knowledge, Landlord represents that no environmental restrictions exist resulting from contaminants in, on or under the Premises that would prohibit the Tenant's Use as previously defined. Landlord agrees to indemnify and hold Tenant harmless from and against any and all liability, damages, losses, expenses, fines and costs, including without limitation costs of investigation, defense and cleanup or other amelioration, arising out of the presence of any contaminants, hazardous substances, pollutants, waste and/or mixtures on, in or under the Premises and/or the release of such materials on, in, under or from such Premises, unless placed there by Tenant. Tenant agrees that Tenant
shall not use any hazardous materials in or around the Premises except for ordinary household cleaners and gas and oil as is used in Tenant's ordinary course of business and for materials normally used in the course of and in connection with Tenant's use as described in this Lease. Tenant shall indemnify and hold Landlord harmless for any hazardous material introduced in, on or around the Premises by Tenant.
38. Liability of Owner. No owner of the property of which the leased premises are a part shall be liable hereunder except for breaches of the Landlord's obligations occurring during the period of such ownership. The obligations of the Landlord shall be binding upon the Landlord's interest in said property, but not upon other assets of the Landlord, and no individual partner, agent, trustee, stockholder, officer, director, employee or beneficiary of the Landlord shall be personally liable for performance of the Landlord's obligations hereunder.
39. Independent Covenants. Other than the rights of Tenant explicitly stated in Section 13, Tenant covenants to pay when due (without any offset, deduction, or abatement whatsoever) the Rent. All Rent payments are due to Landlord on the first day of each calendar month unless otherwise specifically provided. Rent shall be paid by recent (not more than 30 days old) check drawn on a Massachusetts bank payable to Landlord and shall be sent to the address noted in paragraph 6 above, or at such other address as Landlord may, from time to time by written notice direct. The foregoing covenant of Tenant to pay Rent is an independent covenant.
40. Condominium. In the case Landlord elects to convert the Building into a condominium and the Premises into a unit (or a subdivision or combination of units) thereof or the Premises otherwise becomes a unit in a condominium during the Lease Term or any renewal thereof, Tenant agrees to comply with all condominium bylaws, rules, and regulations provided that said bylaws, rules and regulations dot not interfere with the day to day business practices of Tenant within the premises. Landlord agrees and warrants that the condominium bylaws, rules, or regulations, if any, shall permit the Use contemplated in this Lease.
41. Tenant Access to Premises. During the period between execution of this Lease and Commencement Date, Tenant shall be allowed access to the Premises with verbal notice to Landlord or Landlord's agents, so long as Tenant follows rules and regulations applicable within the Premises, and Tenant shall do so at its own risk and without right of recourse to Landlord or its agents of affiliates.
42. Entire Agreement. This Lease and the Exhibits attached hereto set forth all the promises, agreements, conditions and understandings between Landlord and Tenant with respect to the Premises, and there are no promises, agreements, conditions or understandings, either oral or written, between them other than are herein set forth. No subsequent alteration, amendment, change or addition to this Lease shall be binding upon Landlord or Tenant unless reduced to writing and signed and delivered by each of parties thereto.
43. Massachusetts Lease. This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. Tenant agrees that any actions or proceedings to which Landlord is a party arising directly or indirectly from this Lease shall be litigated in any state or federal court having situs within the Commonwealth of Massachusetts and that that Court shall have jurisdiction thereof.
44. Conflict of Interest. The Lease is intended to be in accordance with all provisions of the Massachusetts Conflict of Interest Law (M.G.L. Chapter 268A).
45. First Right to Lease Office Space in Building. Tenant shall have first right to lease any office space that is coming available within the Building. Landlord shall provide Tenant notice that a particular space used as offices within the Building is becoming available and at what price the space could be leased. Such notice shall provide Tenant with at least thirty (30) days to decide whether it wishes to lease the space becoming available under the offered terms. If Tenant does not respond within thirty (30) days notice, Landlord shall be free to lease the space to any prospective other tenant. This provision shall not apply to any space where an existing Tenant has an option to extend its lease.
a. Tenant shall have an explicit right to lease Suite 202A at an additional rate of $13,600 per year, with additional monthly installments of $1,133.33 for the entire Term of the Lease by providing Landlord with notice of desire to add Suite 202A to the Premises by no later than December 10, 2010. If Tenant exercises this option, Landlord will work in good faith to determine the location of an additional demised office at within Suite 202A and Landlord will construct such office prior to February 1, 2011. Tenant shall also be responsible for directly metered utilities and/or a proportional share of utilities for this space. Tenant shall have the same option to extend the Lease for Suite 202A as it has for the balance of the Premises under Section 8 above. The rent for any Option years for this space shall
be adjusted in the same manner as for the balance of the Premises under Section 8 above.
46. Dumpster and Recycling. Landlord has provided trash and recycling removal services at the building. If Tenant desires, Tenant shall be allowed to utilize the Building's trash removal services for an initial cost to be determined by negotiation between Landlord and Tenant. This cost may change from time to time.
47. Use of Basement for Storage. Tenant shall have the right to utilize the space in the basement of the Building that is currently used by Tenant for the purpose of storage, subject to approval of any applicable regulatory agencies. Notwithstanding this right, Landlord reserves the right to conduct construction, maintenance or repairs needed for the premises or for any other portion of the building. Tenant agrees that to the extent Tenant stores any items in the basement that Tenant does so at its own risk and shall hold Landlord harmless from any damage or loss that might befall such items. Tenant acknowledges that basement spaces are by nature inherently damp and more prone to water infiltration and Tenant agrees that Landlord is not
liable for water infiltration or any damage caused due to water infiltration. Tenant acknowledges that its basement space as noted in this section contains utilities servicing the building as well as other tenants within the building and agrees to act reasonably in allowing access for service or repair of said utilities.
48. Parking. Tenant shall have the right to continue to use 8 parking spaces in the parking area. Landlord shall make available an additional 2 parking spaces to Tenant when any current agreement with those using the spaces can be terminated but in any event prior to September 1, 2011.
IN WITNESS WHEREOF, the LANDLORD and TENANT have hereunto set their hands and common seals this _____ day of , 2010.
PEABODY BLOCK LLC, LANDLORD
By: Alex M. Steinbergh, Manager, its duly authorized officer
17 Ivaloo Street Suite 100
Somerville, MA 02143
617-625-8315
120 Washington Street, Suite 202A
Salem, MA 01970
978-740-0006
CITY OF SALEM, TENANT
By: Mayor Kimberly Driscoll, its duly authorized officer
93 Washington Street
Salem, MA 01970
TENANT CONTRACT FOR FINANCIAL INQUIRIES:
TENANT PHONE NUMBER FOR BUILDING MATTERS:
#661 - COMMUNICATION FROM THE MAYOR REGARDING TAX CLASSIFICATION HEARING
The following communication from the Mayor regarding Tax Classification Hearing and acceptance of 1.65 as a tax rate for Fiscal Year 2011, was received and filed.
December 7, 2010
Honorable Salem City Council
93 Washington Street
Salem, Massachusetts 01970
Re: Tax Certification Transmittal Letter
Ladies and Gentlemen of the Council:
As you know, each year following a tax classification hearing the City Council must vote to set the residential tax factor, which establishes the tax rate for the fiscal year. Every city and town in Massachusetts is limited in how much they can raise property taxes by Proposition 21/2, which caps new property taxes at no more than 21/2% of the prior year's levy. This year, the tax rate being recommended will be approximately $450,000 under the City's allowable levy capacity and will in turn result in an average single family home bill increase of approximately $97.00, one of the lowest increases in the North Shore. While lower than many surrounding cities and towns, it is still never easy or pleasant to increase taxes, especially in a down economy, but we have taken measures to reduce the overall impact to Salem homeowners.
As you may recall, real estate taxes account for a majority of the City's revenues and help cover expenses associated with all local government activities, including public schools, police, fire and public works services. With other funding sources, such as state aid, declining there is increased pressure on property taxes to meet the cost of delivering quality municipal services that residents have come to want and expect. This year as in prior years, the Administration and the Council partnered to adopt a sensible, but austere city budget. In particular, this year we were able to balance savings from employee health insurance reforms with new revenues from a meals excise to limit property tax increases to homeowners. As a result, we adopted a lean budget that maintained existing city services, set aside $600,000 in
the city's rainy day account, and limited impacts to property owners with a reduced tax levy that is $450,000 under our allowable limit. In fact, we have operated under our levy limit for two of the last three years, something only a small percentage of communities have been able to accomplish.
Lastly, in looking at community comparisons, you will note that the average Salem single family tax bill is among the lowest out of eight nearby and/or similar sized cities and towns. From just about every local economic indicator, our diligence and hard work over the last five years has paid off as we are in a much stronger financial position than we were four years ago, a trait that will serve us well as we continue to weather the economic downturn and the likely challenges that lie ahead in both local aid funding and power plant revenues.
As we set the tax rate for the current fiscal year, the recommendation is to maintain the current 1.65 CIP split tax rate. Any reduction in the CIP would further burden residential property owners, while any increase would further burden commercial property owners, who already pay more than one and one half times the rate that residential homeowners pay. Further, many of our commercial tax payers are small, independently owned businesses which have a much harder time absorbing a large annual tax increase. I believe this strikes a good balance between trying to provide relief to homeowners, while also trying to grow our commercial base.
Finally, as we have previously discussed, one of the best ways for us to lower impacts to residential property owners is to encourage and promote new growth, particularly new commercial growth. I believe that new revenues are an important ingredient in meeting our collective desire to keep Salem a thriving community that delivers quality education, public safety and public works services in an affordable and efficient manner.
I am planning on attending the Council Tax Classification hearing this Thursday at which the City Assessor will be making a more detailed presentation regarding the FY2011 tax certification. In the meantime, please feel free to reach out to me with any questions or concerns.
Very truly yours,
Kimberley Driscoll
Mayor
#662 - RESIDENTIAL FACTOR FOR THE FOUR CLASSES OF PROPERTY
Councillor Prevey introduced the following Order, which was adopted by a roll call vote of 10 yeas, 0 nays, 1 absent. Councillors Furey, O'Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Ryan, Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely was recorded as absent.
ORDERED: That the City of Salem adopt a Residential Factor of 85.4073% (1.65) for Fiscal Year 2011.
Councillor Prevey moved immediate reconsideration in the hopes it would not prevail. Reconsideration was denied.
#663 - OPEN SPACE EXEMPTION
Councillor Prevey introduced the following Order which was adopted by a roll call vote of 9 yeas, 1nays, 1 absent. Councillors Furey, O'Keefe, Pelletier, Pinto, Prevey, Ryan, Ryan, Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Ronan was recorded as voting in the negative. Councillor Lovely was recorded as absent.
ORDERED: That the City of Salem NOT adopt an Open Space Exemption for fiscal year 2011.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied.
#664 - RESIDENTIAL EXEMPTION
Councillor Prevey introduced the following Order which was adopted by roll call vote of 8 yeas, 1 nay, 1 absent, 1 present. Councillors Furey, O'Keefe, Pelletier, Pinto, Prevey, Ryan, Ryan, Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Ronan was recorded as voting in the negative. Councillor Pelletier was recorded as voting present. Councillor Lovely was recorded as absent.
ORDERED: That the City of Salem NOT adopt a Residential Exemption for fiscal year 2011.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied.
#665 - SMALL COMMERCIAL EXEMPTION
Councillor Prevey introduced the following Order which was adopted by roll call vote of 8 yeas, 1 nay, 1 absent, 1 present. Councillors Furey, O'Keefe, Pelletier, Pinto, Prevey, Ryan, Ryan, Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Ronan was recorded as voting in the negative. Councillor Pelletier was recorded as voting present. Councillor Lovely was recorded as absent.
ORDERED: That the City of Salem NOT adopt a Small Commercial Exemption for fiscal year 2011.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied.
#666 - ORDINANCE TRAFFIC, PARKING PROHIBITED CERTAIN STREETS, WEST CIRCLE
Councillor O'Keefe introduced the following Ordinance which was adopted for first passage.
In the year two thousand and ten
An Ordinance to amend an Ordinance relative to Traffic Chapter 42, Section 51, "Parking Prohibited Certain Streets"
Be it ordained by the City Council of the City of Salem, as follows:
Section 1. West Circle in front of #11, 12 and 13, No Parking in the traffic rotary circle.
"No Parking all sides".
Section 2. This Ordinance shall take effect as provided by City Charter.
#667 - ORDINANCE TRAFFIC, PARKING TIME LIMITED, UNMETERED ZONES, BOSTON STREET
Councillor Sosnowski introduced the following Ordinance which was adopted for first passage.
In the year two thousand and ten
An Ordinance to amend an Ordinance relative to Traffic, Chapter 42, Section 57A "Parking Time Limited, Unmetered Zones"
Be it ordained by the City Council of the City of Salem, as follows:
Section 1. In front of #7 Boston Street Mon. thru Sat. 9AM to 5PM, "Parking Time Limited, Unmetered Zones"
Section 2. This Ordinance shall take effect as provided by City Charter.
#668 - SUSPEND RULE 31B COMMITTEE ON PUBLIC HEALTH, SAFETY & ENVIRONMENT
Councillor Pinto introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the Committee on Public Health, Safety and Environment of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
#669 - SUSPEND RULE 31B COMMITTEE ON COMMUNITY & ECONOMIC DEVELOPMENT
Councillor Sargent introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the Committee on Community and Economic Development of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
#670 - SUSPEND RULE 31B COMMITTEE ON GOVERNMENT SERVICES
Councillor Pelletier introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the Committee on Government Services of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
#671 - SUSPEND RULE 31B COMMITTEE ON ADMINISTRATION & FINANCE
Councillor Prevey introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the Committee on Administration and Finance of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
#672 - SUSPEND RULE 31B COMMITTEE ON ORDINANCES, LICENSES & LEGAL AFFAIRS
Councillor O'Keefe introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the Committee on Ordinances, Licenses and Legal Affairs of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
Councillor O'Keefe assumed the Chair.
#673 - SUSPEND RULE 31B COMMITTEE OF THE WHOLE
Councillor McCarthy introduced the following Order, which was adopted.
ORDERED: That rule 31B be suspended and the attached matters, currently before the Committee of the Whole of the City Council, be carried into 2011.
(list on file in the City Clerks Office)
#674 - MONTHLY FINANCIAL REPORT
Councillor Prevey introduced the following Order, which was adopted and rule 31B be suspended to carry the matter into the New Year.
ORDERED: That the Monthly Financial Report dated October 31, 2010, referred to the Committee on Administration and Finance.
#675 - (#640 - #643) GRANTING LICENSES
Councillor O'Keefe 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 and Legal Affairs to whom was referred the matter of granting certain licenses has considered said matter and would recommend approval.
JUNK DEALER I. Talkowsky and Son, 18 Phillips St., Salem
PUBLIC GUIDE Paul Gordon, 56 Margin St., Salem
TAG DAYS SHS Girls & Boys Basketball, Jan. 15, 2011 & Jan. 22, 2011
SHS Gymnastics, Jan. 1, 2011 & Jan. 30, 2011
#676 - (#619) ACCEPT M.G.L. CH. 31 SEC. 108P COMPENSATION TO COLLECTOR & TREASURER
Councillor Prevey 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 acceptance of Massachusetts General Law Chapter 31 section 108P for compensation to Collector and Treasurer for additional training, has considered said matter and would recommend approval.
#677 - (#588) ACCEPT M.G.L. TO ACCEPT EARLY RETIREMENT INCENTIVE PROGRAM
Councillor Prevey 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 acceptance of Massachusetts General Law Chapter 188 section 66, Acts of 2010 for an Early Retirement Incentive Program, has considered said matter and would recommend that the matter remain in Committee.
#678 - (#616) APPROPRIATION TO REDUCE TAX RATE
Councillor Prevey 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 acceptance of an Appropriation of $934,070.00 to reduce the tax rate, has considered said matter and would recommend approval.
#679 - (#621) BOND ORDER IN THE AMOUNT OF $312,000.00
Councillor Prevey offered the following report for the Committee on Administration and Finance. It was voted to accept the report and adopt the recommendation by roll call vote of 10 yeas, 0 nays, 1 absent. Councillors Furey, O'Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Ryan, Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely was recorded as absent.
The Committee on Administration and Finance to whom was referred the matter of acceptance of a Bond Order in the amount of $312,000.00, has considered said matter and would recommend approval.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied.
#680 - (#620) BOND ORDER IN THE AMOUNT OF $687,062.00
Councillor Prevey offered the following report for the Committee on Administration and Finance. It was voted to accept the report and adopt the recommendation by roll call vote of 10 yeas, 0 nays, 1 absent. Councillors Furey, O'Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Ryan, Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely was recorded as absent.
The Committee on Administration and Finance to whom was referred the matter of acceptance of a Bond Order in the amount of $687,062.00, has considered said matter and would recommend approval.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied.
#681 - RIGHT OF ENTRY AGREEMENT WITH SWH REALTY TRUST, 15 PARKING SPACES ON COMMERCIAL STREET
City Solicitor Elizabeth Rennard submitted the following Order to authorize the Mayor to enter into a Right of Entry Agreement with SWH Realty Trust, to construct 15 additional public parking spaces on Commercial Street, which was adopted by roll call vote of 10 yeas, 0 nays, 1 absent. Councillors Furey, O'Keefe, Pelletier, Pinto, Prevey, Ronan, Ryan, Ryan, Sargent, Sosnowski and McCarthy were recorded as voting in the affirmative. Councillor Lovely was recorded as absent.
ORDERED: The Mayor is hereby authorized to enter into a Right of Entry Agreement with SWH Realty Trust, Stephen W. Haley, trustee so that SWH Realty Trust may construct 15 additional public parking spaces on Commercial Street. The additional parking spaces shall be constructed in accordance with a plan approved by the City Engineer and Director of Public Services and SWH Realty Trust shall be subject to any conditions required of the City Solicitor which shall include signage designating all spaces open to the public, additional lighting and maintenance.
Councillor Prevey moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied.
#682 - #687 LICENSE APPLICATIONS
The following license applications were referred to the Committee on Ordinances, Licenses and Legal Affairs.
PUBLIC GUIDES Richard Metzger, 25 Shepard St., Marblehead
Michael Metzger, 25 Shepard St., Marblehead
Susan Metzger, 25 Shepard St., Marblehead
Herb Van Dam, 361 Lafayette St., Salem
Allen Winecour, 161 Garland St., Everett
Gordon Lothrop, 12 Fairfield St., Salem
Robert Woodward, 56 Hatherly Rd., Rockland
Jeffrey Langone, 25 Brookside Ln., Burlington
Brad Biscosnet, 24 Pawtucket Blvd., Tyngsboro
Steven Kee, 185 Lafayette St., Salem
Christiann Van Damme, 185 Lafayette St., Salem
Michelle Gilliss, 3 Auburn St., Danvers
Mollie Stewart, 24 Essex St. #1, Salem
Jeffrey Horton, 27 Bar Link Way #81, Swampscott
Fran Marrow, 12 Strawberry Hill Ln., Danvers
SEAWORMS Antonios Konstantilakis, 4 Bow St., Salem
Jose Machado, 3 Emmett St., Peabody
Joe Mendonca, 22 Spring St., Peabody
Analiano Silva, 25 Driscoll St., Peabody
Manuel Silva, 80 Northend St., Peabody
SECON HAND Boston St. Resale, 134 ½ Boston St., Salem
CLOTHING Two Girls Shop, 320 Derby St., Salem
SECOND HAND Treasurers Over Time, 139 Washington St, Salem
VALUABLES Bernard's Jewelers, 179 Essex St., Salem
Europa Ltd., 3 Hawthorne Blvd., Salem
The Record Exchange, 256 Washington St., Salem
Tobies Jewelry, 142 Washington St.,Salem
Salem Used Furniture & Antiques, 107 ½ Bridge St., Salem
Two Girls Shop, 320 Derby St., Salem
Glass And Etc., Museum Place Mall, Suite 129, Salem
Filigree & Fancy, Pickering Wharf, Salem
TAG DAYS S.H.S. Swimming & Diving, January 23, 2011 & January 29, 2011
S.H.S. Field Hockey, September 17, 2011 & October 1, 2011
#688 - #689 CLAIMS
The following Claims were referred to the Committee on Ordinances, Licenses and Legal Affairs.
Michael Brunswick, 14 Williams St., Unit 1A, Salem
Kevin O'Brien, 16 Williams St. Salem
#691 - #693 BONDS
The following Bonds were referred to the Committee on Ordinances, Licenses and Legal Affairs and returned approved.
CONSTABLE: Johanna Rodriguez, 4 Holly St. #2, Salem
Elvin Rodriguez, 4 Holly St. #2, Salem
Ernasto Ayala, 4 Holly St. #1, Salem
Victor Nolasco, 298 Washington St., Salem
(#217A) - SECOND PASSAGE - ORDINANCE AMENDING PUBLIC NOITCE AND AVAILABILITY OF INFORMATION
The matter of second and final passage of an Ordinance amending , Public Notice and Availability of Information, was then taken up. The Ordinance was adopted for second and final passage.
(#624) - ORDINANCE AMENDING TRAFFIC, HANDICAP PARKING, LAFAYETTE STREET
The matter of second and final passage of an Ordinance amending Traffic, Handicap Parking, Lafayette Street was then taken up. The Ordinance was adopted for second and final passage.
(#625) - ORDINANCE AMENDING TRAFFIC, HANDICAP PARKING, HOWARD STREET
The matter of second and final passage of an Ordinance amending Traffic, Handicap Parking, Howard Street was then taken up. The Ordinance was adopted for second and final passage
(#626) - ORDINANCE AMENDING TRAFFIC, HANDICAP PARKING, ESSEX STREET
The matter of second and final passage of an Ordinance amending Traffic, Handicap Parking, Essex Street was then taken up. The Ordinance was adopted for second and final passage
On the motion of Councillor O'Keefe the meeting adjourned at 8:52 P.M.
ATTEST: CHERYL A. LAPOINTE
CITY CLERK
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