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HomeMy WebLinkAboutBOS MINUTES 03-30-2016Board of Selectmen Minutes March 30, 2016 Present: George Dentino, Chairman; Jess Aptowitz, Vice Chairman; Olivier Kozlowski, Clerk; Doue Annino. Frank DelVecchio and William Ross. Town Manager. Chairman Dentino called the meeting to order at 7:00p.m. The Chairman reminded everyone that the meeting is being broadcast live and taped for future broadcast on Mansfield Cable. Present before the Board are representatives from the School, Capital Improvement and Finance Committees. First up were Michael Trowbridge, Chairman, School Committee and Zeffro Gianetti, Superintendent of Schools. Mr. Trowbridge noted that over its past two meetings the School Committee has cut approximately $1.1 million to its budget. Mr. Trowbridge noted that in communications with the Budget Sub - Committee (which encompasses representatives from School, Finance, CIP, Board of Selectmen and John Stanbrook, Finance Director) slightly more cuts would be needed to balance the Budget. It was his hope that could be accomplished this evening. Mr. Ross then distributed a document to the Board and all Committee members: Town of Mansfield FYI Budget Deficit Potential Actions and Assumptions as of March 30th, which has been made a part of the record. The document was created by Mr. Stanbrook and is broken down into the following potential balancing recommendations: Working Group (made up of Town Manager, Finance Director, Superintendent and School Business Manager), Budget Sub - Committee (members of Budget Sub - Committee), FmCom(vote by members of Finance Committee) and FinCom Chairs (Steve Schoonveld and Walter Wilk had additional thoughts after Finance Committee vote). Mr. Ross highlighted the following: • Items K,M,N,Q,R,S are the different ideas from each group (except FinCom) and each balances the Budget where it is all a matter of which ones are acceptable overall • Pension Reserve Trust — Mr. Ross applied to PRAC, which is the State's pension group to allow the Town to take up to $200,000 from that bust, which has been approved. The Trust currently has over $700,000. • Increase in Local Receipts — this idea came from FinCom Chairs and is feasible based upon where the Town is this year and what its seeing but it was noted it is very tight and there is not a lot of room for flexibility in Local Receipts. • Working Group suggested funding OPEB through Free Cash rather than out of the Budget • Budget Sub - Committee and Finance Committee Chairs recommend the 'Town look at putting the PILOT, which comes from the Electric Department (payment in lieu of taxes), into an actual formula that calculates the PILOT based upon the value of the utility as Board Of Selectmen's Meeting March 30, 2016 Page 1 of 9 developed by the auditors times the commercial tax rate. This would result in an increase of the PILOT of about $168,600 • The Budget Sub - Committee included increase of use of Free Cash in the Budget of $250,000 which would leave that as the same as previous year (adequate Free Cash available) • The FinCom Chairs recommended reducing the amount of FinCom Reserve Fund by $120,000 which Mr. Ross stated is feasible but would violate the policy adopted by all three bodies Mr. Ross noted any mix of those items or the items above to the Budget to zero is certainly in play and up for discussion but based upon what each group came up (bulleted above) are the ones Mr. Stanbrook separated and should be discussed by everyone. Mr. Ross also referenced additional Municipal cuts in the Budget in the amount of $106,000 and the School is working to identify another $90,000. Mr. Ross has the checklist of changes to which Mr. DelVecchio requested a copy be sent to the Board. Mr. Trowbridge summarized there are three variations to balance the budget here and would like to hear the Finance Director's recommendation. Mr. Aptowitz furthered it appears the Budget is balanced; now it's just the manner of variations to be used. Finance Director John Stanbrook stated it is not his intention to violate any signed policies that have been agreed upon and within the Working Group that does not happen. His personal preference is the Working Group column. Mr. Stanbrook referenced letter N ($400,000 funding of OPEB). What the Town has been doing in the past is funding that from the tax rate with the idea that that is an ongoing expense and should be funded from ongoing revenues. His recommendation is the one time change and funding it from Free Cash and only because the Town has had a good winter and haven't needed any Snow and Ice payments. Mr. Stanbrook stated there is no wrong answer as all recommendations are legitimate. The number up for discussion is $400,000. Mr. Trowbridge asked which variation puts the Town is the best position for borrowing to which Mr. Stanbrook explained bond rating agencies are interested in "are we doing something about OPEB funding ?" which he felt the Town has recognized the problem and put money towards it. Mr. DelVecchio commented that if the Town increases its estimate in Local Receipts or spends Free Cash or takes money from the FinCom Reserve the ultimate affect is reducing money the Town has available next year and that the only thing that will help on a balancing front that would not affect next year is cuts. Walter Wilk, Finance Committee, asked how the Town will address the $400,000 step off in Free Cash next year because it creates a hole to which Mr. Stanbrook disagreed. Mr. Wilk felt the FinCom Chairs recommendation has a way to balance the Budget without adding $400,000 in Free Cash. Mr. Aptowitz felt a discussion by the Light Commissioners was warranted with regards to the PILOT as the numbers work but in order for it to be a true number the Light Commissioners must approve it. Mr. Wilk wanted to be clear that if the PILOT and increase in Local Receipts are used there would be no step off for next year's Budget. Mr. Ross wanted to clarify that the Board of Selectmen can request the recommendation on the PILOT but ultimately it is the Light Commission that must include it within the Light Department Budget and accept it. Mr. Kozlowski asked why this recommendation for the PILOT was Board Of Selectmen's Meeting March 30, 2016 Page 2 of 9 considered in years past and have we been underestimating to which Mr. Ross noted the Town added a large sub - station to the value of the plant. Chairman Dentino felt that the Electric Department can make anything it wants at any time and is autonomous and did not think the value of $650,000 should be utilized because the Light Department last year netted $999,000 and the Town has residents having trouble paying their electric bills or depositing money for electric. The Chairman felt that money like that should go to the people in the community. Steve Schoonveld, Finance Committee Chair, noted that he and Mr. Wilk prepared two memos, which were distributed: 1) detailing the items the Finance Committee voted on which goes into a) detail on why the PILOT should indeed be something that it dynamic and not static and will change, evolve and move as the value of the properties do. Mr. Wilk noted the calculation for the PILOT is an accepted accounting calculation, allows for an equitable and fair manner to align residential and commercial /industrial tax and utility costs and is consistent with other towns. b) the use of Pension Reserve Fund and c) approach to fund Compensated Absences ( reserve for past accrued liabilities). 2) proposal to close the Budget gap of $436,000 a) reduce FinCom Reserve by $120,000 (violating policy does little damage), b) use updated accounting methodology for Pension Reserve Fund and tap for $125,000, c) reviewed actual to budget revenues from past years and should increase assumption in General Revenues and d) use $65,000 in turn -backs with Assessors. Mr. DelVecchio asked if the Town was to use $750,000 in Free Cash again next year would that negatively affect the Town's Bond Rating to which Mr. Schoonveld did not think so because the Town has been continually drawing down that number proof the Town is addressing it which is what they are looking at. Mr. Wilk recommended that whatever the Town decides to stick it in a plug so that it can be tracked. Mr. Aptowitz stated the bottom line is its sounds like the Superintendent and the Town Manager have "balanced the budget" and now it is moving around buckets. His suggestion is that the School, Town and Finance Director now sit down and put the four recommendations together. Mr. Ross worked out the following: • Agree on increasing Local Receipts by $190,000 • PILOT increase is $168,647, then • Trying to find $400,000 and these two would reduce the amount of Free Cash to balance the Budget to $41,353 and leaves Reserve Fund where it is, balances the Budget and realistically reducing the amount of Free Cash but not quite as much that was set for a goal • It was noted that there is surplus Free Cash from this year Mr. Schoonveld suggested reviewing the Interfund Transfer number to close the $41,353. Mr. Ross' issue with this is the policy has yet to be adopted and work still needs to be done to make the calculations. He felt it to be premature for this year. Mr. Ross' suggestion for now is to assume it's a balanced Budget using Free Cash and to work on adopting the policy (charging the various Enterprise Funds for services provided) and then the calculations. Mr. Ross noted the goal is to go to Town Meeting united on how to appropriate and raise the revenue to meet that appropriation. Michael Feck, Chairman of CIP is present before the Board. Mr. Feck highlighted the following: • Received $14.5 million in requests and approved $9.8 million ($400,000 from Operating Budget, $2 million in Free Cash, $24,000 from Revolving Account, $943,000 from Board Of Selectmen's Meeting March 30, 2016 Page 3 of 9 Enterprise and Retained Earnings, little over $2 million in Article turn - backs, $2 million in Long -term Debt and $2.3 million in MassWorks Grants) The Board agreed it would like to go through the Budget in detail. It was agreed the Board would begin to meet each week through Town Meeting. The majority of next week's meeting would be dedicated to reviewing what is in the Budget and Capital Plan. It was agreed that the PILOT would need to be discussed as Light Commissioners at a meeting to be scheduled next week. Mr. Schoonveld stated the Finance Committee is requesting a method going forward that is consistent. Motion: To recommend to the Light Commission to adopt the methodology discussed: net plant value by the commercial property tax rate for the PILOT (DelVecchio /Aptowitz) PASSES 4:1 Dentino NAY Mr. Trowbridge asked if the Finance Committee, since it is posted, could review what has been discussed this evening in order to have everyone on the same page. Mr. Ross mentioned that if the Legislature happens comes through with more Chapter 70 Aid the Town is recommending first to reduce the amount of Free Cash used then to reduce the estimate for Local Revenues which gives the Town leeway. Mr. Aptowitz noted that the House Ways and Means will release something in the middle of April. Motion: To approve the proposed date of May 3, 2016 for Town Meeting (DelVecchio /Aptowitz) PASSES 5:0 Motion: To approve the revised 2016 Town Meeting Warrant (DelVecchio /Aptowitz) Discussion: Mr. Aptowitz asked for changes to which Mr. Ross noted the only change was the removal of a Citizen's Petition which was Article 3. Motion: To approve the revised 2016 Town Meeting Warrant (DelVecchio /Aptowitz) PASSES 5:0 Jim Ragazzo, Chair, of the Audit Committee is present before the Board. He went through the meeting dates of the Audit Committee and reminded the Board that the Town is now working with a new Auditor: Powers and Sullivan. Mr. Ragazzo highlighted the following: • Page I 1 and 12 of the CAFR represents all of the financial statements have been entwined, along with management analysis • Town has received a favorable audit opinion from the external auditors for FYI but it was noted that FYI financial statements were re- stated (note 17 pages 70 -71 of CAFR) o accounts receivables were understated for FY14 by $510,936 o net position of Town needed to be restated due to adjusted (Municipal from $29.3 million down to $17.4 million and on Enterprise Business Activity adjusted was $5.5 million bringing net position to $96.6 million) Mr. Aptowitz noted this was implemented everywhere and wanted to clarify that there was nothing wrong on the Town part's explaining that GASB introduced a new requirement that required Board Of selectmen's Meeting March 30, 2016 Page 4 of 9 recording the liability on the books. Mr. Ragazzo agreed this was a countrywide accounting method that needed to be applied and no issue within the Town that caused this issue. Mr. Ross noted this did not involve any outflow of cash. Mr. Aptowitz also explained this information has always been there, just in footnote format but now is required to appear on the balance sheet. • Adjustment to the ending net position on the Enterprise side (footnote 15, page 70) where in essence the merging and transfer of certain assets comprised by the Wastewater Treatment Plant and newly formed MFN Water District creating a loss of $16.6 million Mr. Aptowitz again stepped in explaining this as a technicality as the District's books require being separate but if the two were merged into one the position would be exactly the same with no loss. Mr. Stanbrook noted that in FYI there will be a bigger hit on the Town's net position due to the OPEB Liability. Mr. Aptowitz asked if the Audit Committee was happy with the worked performed by the new auditors. Mr. Ragazzo felt it to be a very cooperative and professional relationship. Mr. Ross added that Powers and Sullivan came up with great ideas such as pre - planning meetings with Mr. Stanbrook and the Audit Committee leading into the audit in order to work on items in advance. Mr. Stanbrook commented this will be extremely helpful with regards to the CAFR as it will now have a hard deadline of December 31" (where first submission is given an extra month). Mr. Stanbrook felt the auditors did a great job. Mr. Stanbrook explained that GASB (Governmental Accounting Standards Board), who decide how financial statements are presented for governments, has a new statement with regards to Pension Reserves, which will affect the Town in FYI 8. Mr. Stanbrook noted at that time, when looking at the Town's statements it will appear technically bankrupt but the counter for that bond ratings agencies will know this and back that number out. Mr. DelVecchio added that nothing has changed, except for the reporting, referencing its similarity to a mortgage and if it would need to be paid in full. Mr. DelVecchio also stated that the Bristol County Pension will be funding on an actuarial basis that will make up for the shortfalls of the past more quickly. Mr. Aptowitz reminded that the $70 million has been reported as a footnote for years noting it was in the financials just not on the balance sheet. Mr. Ragazzo moved to the Report on Federal Awards Programs which is required as the Town receives grants. Mr. Stanbrook furthered this is required by the Federal Government if the Town receives more than $750,000 in a fiscal year from the government. Mr. Stanbrook noted this received a clean opinion. Finally, with regards to the Management Letter, Mr. Ragazzo reported the overall tone here was that in all instances management has agreed with the recommendation and the creation of an action plan. From here, the Audit Committee will monitor through follow up with Mr. Stanbrook and Mr. Ross. Mr. Ragazzo noted the Committee needs to be concerned with internal control, administrative and accounting as well as safe guarding assets and compliance with policies and procedures (an effective tool to prevent and detect defalcations). The following was highlighted from the letter: • Town continues to embrace contents of the report • Finance Director has created a task chart and timeline towards goals contained in report that the Audit Chair could review (Malloy Report) Board Of Selectmen's Meeting March 30, 2016 Page 5 of 9 • Each Department Head develop its own policy and procedure manual • Adopt Cash and Investment Policy to which Mr. Ross noted that is before the Board and has been approved by the Finance Committee and scheduled before the School Committee in April. Mr. Aptowitz felt this to be an important policy where the Town could perhaps do a better job. Mr. Stanbrook noted that Treasurer Jacqui Boudreau is working hard on this. • Issue with Abatement of Ambulance Receivables — it was noted that the Board charged the Chief with this as the majority of this are people with insurance where it is difficult to collect after the insurance company has paid. • Issue with Parking Tickets as $94,000 is greater than over five years past due. Mr. Ross stated most are turned over to the Registry where plate renewal will not be allowed until ticket is paid but they may have moved or sold the vehicle with that plate. It is Mr. Ragazzo's hope to have a sign off from the auditors in early to mid - December with the Audit Committee meeting prior to December 31" moving forward. Mr. DelVecchio felt the auditors to be very thorough and responsive and was happy with the Management Letter. Motion: To receive the Comprehensive Annual Financial Report and FYI Audit as reported by the Audit Committee (Kozlowski /Annino) PASSES 5:0 None. a. Approval Of Board Of Selectmen Minutes For: • March 16, 2016 b. Vote To Approve Warrants: • Town Vendor Warrant No. 160387f in the amount of $387,737.80 • Electric Department Vendor Warrant No. 16038E in the amount of $280,672.82 • Town Vendor Warrant No. 16039T in the amount of $1,972,557.51 • Electric Department Vendor Warrant No. 16039E in the amount of $22,137.73 • School Department Vendor Warrant No. 160395 in the amount of $626,218.18 c. Licenses And Permits: • Consideration Of Hackney Carriage License For Mansfield Taxi And Livery Subject To Public Safety Inspection Of Vehicles By Public Safety Officer: • Vehicle 1: 2003 White Chrysler Town & Country • Vehicle 2: 2009 White Dodge Grand Caravan • Consideration Of Hackney Driver Licenses For: o Roger Avery — Already Taxi o Kevin Davis — Veterans Taxi o Wayne Demers — Veterans Taxi o John Geertgens — Already Taxi o Osama Ghaly — Veterans Taxi o Issa Jichi — Veterans Taxi o Evens Pierre — Mansfield Taxi And Livery • Consideration Of Drainlayer License For o Calbrooke Construction Inc. Bow Of Selectmen's Meeting March 30, 2016 Page 6 of 9 o P. Beatty Excavation Inc. • Consideration Of Water Installers License For Calbrooke Construction Inc. • Consideration Of Water Installers License For P. Beatty Excavation, Inc. d. Events And Signage • Consideration Of Banner Request For Monster Dash 5K • Consideration Of Event Application For 0 Annual Run With The Cops, June 12th Motion: To approve the Consent Agenda (DelVecchio /Annino) PASSES 5:0 • Town Payroll /Town Medicaid Payroll 1603 8P in the amount of $294,896.19 Motion: To approve Town Payroll /Town Medicaid Payroll 16038PT in the amount of $294,896.19 (Kozlowski /Annino) PASSES 4:1 Aptowitz NAY • Town Deductions — Vendor Payroll 16038TV in the amount of $94,624.51 Motion: To approve Town Deductions — Vendor Payroll 16038TV in the amount of $94,624.51 (Kozlowski /Annino) PASSES 5:0 • School Payroll /School Medicaid Payroll 16038PS in the amount of $1,564,671.13 Motion: To approve School Payroll /School Medicaid Payroll 16038PS in the amount of $1,564,671.13 (Kozlowski /Annino) PASSES 5:0 • School Deductions — Vendor Payroll 16038SV in the amount of $535,005.22 Motion: To approve School Deductions — Vendor Payroll 16038SV in the amount of $535,005.22 (Kozlowski /Annino) PASSES 5:0 • Town Payroll /Town Medicaid Payroll 16039PT in the amount of $297,374.09 Motion: To approve Town Payroll /Town Medicaid Payroll 16039PT in the amount of $297,374.09 (Kozlowski /Annino) PASSES 4:1 Aptowitz NAY • Town Deductions — Vendor Payroll 16039TV in the amount of $98,261.64 Motion: To approve Town Deductions — Vendor Payroll 16039TV in the amount of $98.261.64 (Kozlowski /Annino) PASSES 5:0 • Letter From Xfmity Regarding Programming Change • Letter From Ana And Patrick Villella Regarding Lack Of Sidewalk On East Street To School Mr. Kozlowski read the letter into the record. Mr. Ross will forward the letter to Lee Azinheira, DPW Director. Mr. DelVecchio is concerned with safety issues. • Letter From Lisa Dye And Lauren Olesch Requesting Consideration Of Increasing Scope Of School Street Re- Paving Project Mr. Kozlowski read the letter into the record. Chairman Dentino asked if a traffic study was conducted in the school areas to which Mr. Ross reported part of the Safe Routes to School project is widening of East Street and providing additional off street parking. Mr. Ross will forward the letter to Lee Azinheira, DPW Director. It was also noted that the posted speed limit all day is 20mph. • Update From Lee Azinheira, DPW Director, Updating Safe Routes To School Project Mr. Kozlowski asked if this information is available publicly to which Mr. Ross noted it appears on the website, Mr. Azinheira has met with School officials and signage is in place. • Letter From MassDOT Regarding Spring Street Sweeping Beginning March 281h • Thank You Note From William And Michelle Ross Mr. Kozlowski read the note into the record. Board Of Selectmen's Meeting March 30, 2016 Page 7 of 9 Mr. Ross updated the Board with regards to the status of the MedTronic (formerly Covidien) TIF Agreement where he has recently met with a representative. He reported that MedTronic is functioning above the appropriate TIE levels where essentially the company is consolidating from four buildings to two (employees sharing cubicles, working from home). The company will continue to report quarterly to assure of appropriate levels. Mr. Ross asked the Board how it would like to handle the three candidates for the Veterans Service Officer position. He reminded any interviews would need to be conducted in public. Mr. Ross suggested a recommendation from the Town Manager as he and Patti Firing, HR Director, have interviewed all three candidates. Mr. Aptowitz is comfortable with Mr. Ross and Ms. Firing recommending a candidate to which Mr. Annino agreed. Mr. Ross will put together a recommendation packet for the Board. Mr. Ross would like the Board to again look at the LED lights out front of Town Hall. Since his last report Joe Sollecito has found a way to retain the Town's current fixtures and just replace the light. It is the hope to replace the Downtown area with these and then move to neighborhoods. Mr. Ross noted the work on Main Street will begin next week and as soon as weather allows there will be paving. Much of the work will be conducted nights and weekends but there will be some disruption but shouldn't be longer than two and half weeks. Mr. Ross noted it has been three years since the Finance Director position was initiated. Mr. Ross noted State Law calls for a three year term and he has approached Mr. Stanbrook who would like to be reappointed. Mr. Ross commended Mr. Stanbrook's work ethic noting he is a pleasure to work with. Mr. DelVecchio echoed Mr. Ross' comments with regards to Mr. of people relying on his time. Mr. Annino noted the Budget discussion for the Municipal Complex working towards the final number of $34.9 million. Mr. Annino felt comfortable there could be a presentation to the Board soon. Chairman Dentino asked for the status of the Bond to which Mr. Ross reiterated the Town has not borrowed any money as of yet and will have a Note sale sometime in April that will include notes towards the cost of the Municipal Complex with a Bond sale sometime in October. Mr. Ross explained that anything that has been paid for has come out of the Town with Mr. Stanbrook establishing a separate Construction Account. Chairman Dentino felt this to be different from what was discussed for budgeting this project. Mr. Aptowitz asked about the Airport discussion regarding the naming of the new administration building. The Commission has told Mr. Ross this was discussed and announced at the groundbreaking ceremony. At issue is Mr. Aptowitz feels since this is a Town owned building, the naming should have been discussed with the Board. Mr. Ross has informed the Commission it Board Of Selectmen's Meeting March 30, 2016 Page 8 01`9 would be common courtesy to discuss this with the Selectmen to which the majority of Commission has stated they will not come. Mr. Aptowitz noted there was a recent article in the Boston Globe about Town Budgets he thought may be interesting to the Board. Mr. Kozlowski reported on the Xfinity License Sub - Committee meeting from this morning feeling it was productive, working on the document itself. There are still issues relating to insurance as well as approaches to delivering emergency medical services. A new traffic plan was distributed with MassDOT's approval. Xfinity will be working with neighbors in the area regarding traffic control, particularly on the egress as well and working with Public Safety on better communication of information and analysis of the shows. Mr. Annino is concerned about the lack of receptiveness on Xfinity's part with regards to the Town's Public Safety comments. Mr. Aptowitz is not hearing any feedback with regards to his concerns in terms of alcohol in the parking lots and the handling of that. He stated that regardless of age it is not acceptable to have people walking around with alcohol in their hands. He would like to know Xfinity's plan to address this and he is not letting this issue go. Mr. Annino suggested having the Chiefs in to discuss this issue. Chairman Dentino felt it is solely the responsibility and call of the Chiefs with regards to staffing levels and felt the key issue is signage of no drinking in the lots and the enforcement of the agreement with LiveNation. Mr. Kozlowski added there was a discussion with regards to having a number of ambulances in the area to quell ambulances returning with lights and sirens on as both Attleboro and Norton are on record complaining about this and it is a perception issue. Mr. Ross noted in the meeting this morning and to the Board of the culture of alcohol consumption in this region and its excessiveness. Mr. Kozlowski will be participating in a Ruck Marathon on April 16 °i where he will be honoring the memories of Corey Shea and Walter Langley. Chairman Dentino honored School employee Mary Beth Jackson who recently passed. The Chairman noted how cooperative and kind she was and asked for a moment of silence. None. Motion: To adjourn the Board of Selectmen Meeting at 10:13pm (Annino /Aptowitz) PASSES 5:0 y 6 Signature Board Of Selectmen's Meeting March 30, 2016 Page 9 of 9 A�- 6 Date