NOTES OF SEPTEMBER 28, 2015 RYE BOARD OF SELECTMEN MEETING

Final Revision B – Provided by the Rye Civic League

 

            Present (clockwise around table):  Town Administrator Michael Magnant, Selectmen Musselman, Jenness and Mills, Town Finance Director Cyndi Gillespie.

            Also present and sitting in the audience:  Public Works Director Dennis McCarthy, Interim Fire Chief Tom Lambert, Police Chief Kevin Walsh, Town Clerk Beth Yeaton.

Persons present from the public included:  Victor Azzi, Stanley Chrest, Marty Chapman (Housing Partnership), Mel Low.

 

Editor’s note:  For ease in finding particular sections using the archived video and audio on the Town website, the elapsed time is indicated.  Use the slider and the elapsed time indicated at the bottom of the video window to fast forward to the desired section.  Videos on the Town website may currently be accessed at www.town.rye.nh.us by clicking on “Town Hall Streaming” at the bottom left of the screen.  Follow the link for “Town Hall Live Streaming,” then find the meeting by date under “Previous.”

The video starts at 7:18:25 p.m. (0:00 elapsed).

 

Summary

 

1.      Two new firefighter/paramedics were sworn in.

2.      The Housing Partnership asked the Town to give them the Parsonage Apartments, assessed at over $1 million, so that they can raise money to renovate them.  They would be unwilling to continue with the existing arrangement, which expires in 2019.

3.      Household Hazardous Waste Days may need to change in the future due to Hampton’s withdrawal from the Solid Waste District.

4.      As Police Chief Kevin Walsh somberly provided information relating to two drug overdose deaths over the weekend, two Selectmen made irrelevant quips.

 

Firefighter Appointments (1:28 elapsed)

 

            Following the call to order and the pledge of allegiance, Kevin Wunderly and Christopher Bohling were unanimously and by separate motions appointed as Firefighter/Paramedics.  Town Clerk Beth Yeaton then swore in both persons. 

 

Announcements (4:22 elapsed)

 

            None.

 

Appointment of John Loftus to Historic District Commission (4:38 elapsed)

 

            The motion to approve the appointment carried unanimously.  After inquiry from Selectman Musselman, Selectman Mills indicated that he had no objection to the appointment, despite Mr. Loftus not being present, as he had previously been appointed to the Town Hall Committee.

 

Minutes (5:25 elapsed)

 

            The minutes of the September 14, 2015 meeting were approved with changes relating to the Duck Pond at the Breakers Condominium.  Selectman Mills referred to correspondence from DES and asked whether those who had filed the original complaint were being “appraised” (sic) of events.  Town Administrator Magnant affirmed, indicating that they had been in to look at the file the prior week and had spoken with Building Inspector Peter Rowell.  There was further discussion about whether they had been notified of the letter.  Selectman Musselman suggested that this be addressed under Old Business.  There were further changes following which the minutes were approved.

            The minutes of the September 14, 2015 non-public session were unanimously approved without changes.  The minutes of the non-public session of September 16, 2015 were unanimously approved without changes. 

 

Update on Parsonage Apartments (8:35 elapsed)

 

            Marty Chapman, Executive Director of The Housing Partnership spoke.  He stated that the Partnership is a non-profit provider of work force housing in New Hampshire and the managing agent for the Parsonage Apartments in Rye.  He said that the current lease began in 1999 and will end in 2019.  Editor’s note:  Under the arrangement between the Town and the Housing Partnership, the Partnership leases the building from the Town.  The Partnership in turn leases the apartments to individual tenants and manages the property.  In March, 2015, the voters approved Warrant Article 15, 1058-375.  That article restricts the use of the lease payments that the Town receives to maintenance and repairs of the building.  In the Spring he had provided a list of issues to be addressed with the property, Mr. Chapman said. 

            Mr. Chapman related the history.  The Town had acquired the Parsonage from private owners in the 1990s.  They were approached to manage the property as the Town did not want to be in the business of managing apartments.  They had proposed deeding the apartments to the Partnership in order to maximize their leverage in terms of financing.  The voters determined that a lease would be better.  The Town was granted money under a program, and the money was sub-granted to the Partnership.  There was a loan that is still being paid back.  The amount was about $300,000 at that point.  That provided for a moderate to substantial, not a gut, rehab. 

            The Partnership has been operating the property under a lease for the past 15-16 years.  In the past three or four years it has become clear that a capital injection is needed for further rehabilitation to enable the operation of the property for another 20 years. 

            Mr. Chapman passed out a document to help explain how the property operates economically.  He referred to the balance sheet.  The retained earnings figure represents the grant money.  That started out at $175,000.  The losses over the years have reduced that to $117,000.  The losses, approximately $60,000 divided by 16 years, have averaged a few thousand dollars per year, although the amount has varied, he said.

            Mr. Chapman then referred to the capital needs assessment.  At the moment the property is stable.  All of the interiors are well-maintained.  He referred to “end of life” issues with the heating systems, appliances and bathroom fixtures.  The property is old and should be looked at as a complete development.  An analysis was done by Curtis Boivin, formerly of the Rye Planning Board.  Editor’s note:  Mr. Boivin left the Planning Board as he moved out of Rye.  See the notes of the June 24, 2013 meeting.  Mr. Boivin also served on the 2013 Space Needs Committee for Town Hall. 

            Mr. Chapman referred to items listed by Mr. Boivin, which include the bulkhead doors, the water heater, and the stairs.  Those have either already been done or are in process.  The walkway has not been done.  There is a need for GFI which is easily done.  Editor’s note:  GFI stands for ground fault interruption, which provides protection from electrical shock at various electrical outlets.  Mr. Chapman referred to exterior doors and exterior walls having been done.  Some of the doors were done, but others were missed.  There is insidious rot in a lot of the window trim and some of the siding.  This could indicate more serious problems.  The gutters and downspouts need to be addressed.  The first floor structure is a mishmash due to periodic additions.  The wood structure has decayed and some beams do not make sense structurally.  The property is structurally stable, however.  Three bids for the heating system have been obtained as this needs to be done soon.  A request to pay for this out of the capital reserve will be made.  The stairs and railing leading to one of the apartments is at end of life.  All of the window trim shows signs of rot.  The windows were replaced in 1999 with medium to low quality vinyl windows.  Most of the masonry around the property needs repointing.  One of the units should be made handicapped accessible.  The asphalt will be done according to the DPW Director. 

            Mr. Chapman stated that the Partnership can bring resources to bear to rehabilitate the property maintaining its integrity and historic character.  He proposed the option of rehabilitation, which would require temporary tenant relocation.  Because the number of units over which to amortize the architectural and other costs is small, he is proposing an increase in the number of units and is providing a site plan showing how that could be done.  That would involve demolishing the Carriage House to make room for a second building.  It would be a 12-14 unit development.  Some unit layouts could be changed.  New kitchens, baths, flooring and systems would be provided, including electrical. 

            The Partnership would be able to leverage the funds.  Getting the property listed on the National Register of Historic Places would make tax credits available although the chances of obtaining such funds are slim.  Twenty percent of the value would be available.  Low income housing tax credits would be the primary source, as was used for White Birch. Editor’s note:  White Birch is located off of Route 1 in Rye, near the Rye Airfield.  This is also managed by the Housing Partnership.   They would compete for the credit at the State level.  If granted a private investor silent partner would be obtained to provide financing.  That would pay for about 70 percent.  The balance could be provided by the Federal Home Loan Bank Affordable Housing Program or more Community Development Block Grants if the Town wanted to sponsor that.  The rents are capped, which limits the cash flow available to pay back the debt.

            Under any of the scenarios, the Housing Partnership would need to control the site.  While two options are presented, the preferred one is that the Town transfers the property to the Partnership in exchange for a deed that would keep the property affordable for 99 years.  Donation of the property by the Town would make it easier for the Partnership to compete for the grant.  There are 2.5 applications for every grant obtained. 

            The other option would be a long-term ground lease.  Currently the building is controlled by the Town.  They would want to lease only the land so that they could control the rehabilitation and obtain a tax credit against the value of the building.  If the property were owned the Partnership would pay property taxes, although on a lower value due to the suppression of rents obtainable due to the deed restrictions. 

            Detailed cost numbers are not yet available, but as a rough estimate, $40,000 to $60,000 per unit is needed to bring the units up to current code.  There are currently eight units.  To obtain funding the quality standards are high.  While projects used to use low-quality materials, now the low-income housing constructed is designed to fit into neighborhoods.  It is expensive but it lasts. 

            It costs $175,000 per unit for new units, exclusive of amounts that might be paid to the town.  There is enough room on the site to support 6-8 units and their required parking under the ordinance.  Senior housing requires only half a spot per unit, but they have assumed a full spot.  The new building would be architecturally compatible with the Parsonage.  It would be two stories.  This would need to go to the Planning Board.  Selectman Musselman added that it would also need to go to the HDC.  A second building was proposed due to the difficulty of obtaining financing under federal historic programs for an addition to an historic building, Mr. Chapman said.  If the building proves not to be eligible for the Federal Register an addition could be considered. 

            The Parsonage has been a great resource for the Town of Rye and has been full almost since they started.  Residents have mostly been seniors. 

            The lease is up in three years and the Housing Partnership is not likely to be willing to go forward under the existing arrangement.  The property is not producing enough revenue to do what needs to be done although a lot of work has been done in the last couple of years, Mr. Chapman said. 

            In response to a question from Selectman Mills, Mr. Chapman denied that any “active bugs” had been found at the moment in the Parsonage.  There was some evidence of either carpenter ants or termites, he said.  In response to a follow up question from Mr. Mills, Mr. Chapman acknowledged that there had been an issue with bugs in the units. 

            Selectman Jenness noted that it was good that the proposal was being presented now as three years can go by quickly.  Mr. Chapman stated that the financing might take a couple of years to obtain.  Selectman Jenness noted that the Selectmen cannot sell anything.  The voters would need to approve.

            Mel Low asked about the cost to bring the units up to date.  Mr. Chapman referred back to his $40,000 to $60,000 per unit cost for rehabilitation and $150,000 to $175,000 for the new units.  Mr. Low, apparently referring back to his work a number of years earlier on the issue, stated that they had done a study which indicated that the Town should get rid of the building as it is in such bad shape.  He had been pushing that when he was running for Selectman, he said.  However, the first thing that the voters did was decide not to sell the Parsonage.  He would be concerned about that as the property is assessed for over $1 million.  He stated that he did not believe that the Town would give away the building. 

            Mr. Chapman stated that the affordability restrictions expire, along with the grant, in three years.  Another option for the Town would be to let those expire.  The tenants would need to be notified and the rents raised or another use of the property found. 

            Selectman Musselman asked how the 99 year ground lease related to the proposed 15 year management agreement.  Mr. Chapman referred to the long-term housing credit, which would be a 15 year commitment.  The ground lease or sale would be to a limited partnership, which would include The Housing Partnership as the general managing partnership.  At that point the limited partner would go away but the Housing Partnership would continue to manage the property.  For the most part the limited partners are banks, who get Community Reinvestment Tax Credits.  Typically the tax credits are purchased for 90 cents on the dollar.  They pay the money at the front end but get the credits over ten or fifteen years, which provides a four to five percent return. 

            Mel Low noted that the septic system is under the Library parking lot.  Mr. Chapman noted that that system is shared.  Selectman Musselman referred to the need for an expanded septic system and surmised that it would be under the new parking lot. 

            Mr. Chapman noted that the entire system might be rehabilitated for the benefit of the Library.  Selectman Mills stated that he thought that the system had been put in when the Library addition was done. 

            Victor Azzi noted that the system was designed and constructed in 1999.  Editor’s note:  Mr. Azzi is a Library Trustee and was involved in the Library addition.

            Selectman Musselman stated that the project had been near and dear to Mel Low’s heart.  He asked him whether either option was consistent with what the Town set out to do.  Mr. Low stated that he had not seen the documents, so does not know about the income or loss.  He explained that a lease had been set up.  The amount was equivalent to the tax on the property.  It can be adjusted every year. 

            Selectman Musselman noted that the money was now being set aside to help fix things.  Mr. Chapman stated that the lease amount was a fixed number which is then adjusted by the CPI.  Editor’s note:  CPI stands for Consumer Price Index, an index of inflation.  Mr. Low states that Senior Serve always stops there to pick up residents. 

            Selectman Musselman asked whose court the ball was in.  Mr. Chapman asked for guidance and indicated that he did not plan to do much more.  Selectman Musselman looked at the other two Selectmen and indicated that they needed to decide whether the Town would continue with low income affordable housing in the middle of Rye.  If so, the various legal mechanisms need to be looked at in order to get it financed without the taxpayers of Rye providing funding.  He stated that there is not a major difference between a 99 year lease and sale. 

            Selectman Mills referred to the Rye Historical Society renting the land that their building is on for $1 per year.  Editor’s note:  This museum building is adjacent to the Parsonage and the Library. 

            Selectman Mills apologized to Mr. Chapman for having to go through an episode.  Mr. Chapman referred to one at White Birch and one at the Parsonage and wondering whether there was something in the water in Rye.  Mel Low said “thank God you have them between you and those people.”  Selectman Musselman said “amen.”

 

Garceau unmerger request and request for fee waiver (49:53 elapsed)

 

            Mr. Garceau spoke, referring to the statute.  Selectman Jenness appeared to read from Mr. Garceau’s letter, which referred to a lot having been sold in 1981 and merged at some point, by municipal action.  This had occurred prior to 2010 without Mr. Garceau’s consent and involved a building lot at 321 Pioneer.  It requested restoration to pre-merger status pursuant to N.H. RSA 674:39-aa.  The letter requested waiver of the fee. 

            Selectman Jenness stated that the lot was entirely wetland.  Mr. Garceau acknowledged.  He stated that he had installed a dock after the marsh land was acquired.  Selectman Musselman asked whether he had kept a boat there.  Mr. Garceau acknowledged that he kept a dinghy there.  Mr. Garceau stated that DES and the Corps of Engineers had approved.  He stated that the location dries out at low tide. 

            Selectman Musselman suggested that the circumstances be reviewed with Town Counsel, and a site walk taken.  He suggested that the matter be tabled.  Selectman Jenness stated that there would be a site walk to La Mer Dr. prior to the next meeting.  Selectman Mills stated that that was likely to be contentious so this should be separate. 

            Selectman Musselman stated that the dock and dinghy use are issues that need to be reviewed with Town Counsel.  Mr. Garceau confirmed that he lives in the residence. 

            Selectman Mills stated that Howie had been the assessor at the time and that Mr. Garceau had found out that the land could be put in conservation.  Mr. Garceau stated that the land was in current use.  Editor’s note:  “Howie” is an apparent reference to Howard Promer, the Town Assessor through 2010 or 2011.  When land is in current use, the assessment is lowered to reflect the use to which the land is currently put, rather than that which it might be put.  A tax must be paid to remove land from current use.  Current use taxation is different from placing the land in conservation, which typically involves the granting of a permanent conservation easement prohibiting certain uses in perpetuity.  

            Mr. Garceau stated that the lot was acquired afterward and the description has always been that it is marsh land. 

            Town Administrator Magnant stated that, under the policy, notices are sent to abutters.  He suggested that the Selectmen ask whether any abutters would like to speak.  Selectman Mills stated that a person living across the street was present.  Stanley Chrest spoke up.  Selectman Mills acknowledged that he had delivered mail there “way back.”  Mr. Chrest said that he did not have any comment or question.  Steve Lee spoke up in support of Mr. Garceau, stating that, even if there is a dock on one lot it may still be a separate lot. 

 

Household Hazardous Waste Day letter (60:23 elapsed)

 

            Selectman Mills asked how many people from Rye participate in the Household Hazardous Waste Day.  Town Finance Director Cyndi Gillespie stated that three from Rye had gone to Brentwood.  Public Works Director Dennis McCarthy asked whether it wasn’t sixteen.  Ms. Gillespie stated that she did not believe that to be the case.  Selectman Mills stated that, when he had been involved, the numbers kept dropping as the “stuff” in the houses was getting depleted.  Mr. McCarthy stated that Rye takes oil and electronics which make up a big amount of what the other towns’ residents bring in.  People from Rye bring in paints and such, he said, and latex doesn’t need to be brought to hazardous waste day, he said.  He added that Public Works employees do a good job of informing people that latex paint may be disposed of as non-hazardous waste.  The intent of Household Hazardous Waste Day is to take hazardous waste like herbicides and pesticides.

            Selectman Musselman stated that this used to make a lot of sense with the Southeast District when there were two per year, one in Hampton and one in the western part of the District.  Now, Hampton is out of the District. 

            Editor’s note:  In 2014 and 2015, new waste disposal contracts were negotiated by Southeast Regional Refuse Disposal District 53B.  Selectman Musselman’s firm, CMA Engineers was retained to help negotiate these contracts.  Communities had the option of two waste disposal companies, and were not required to remain in the District to take advantage of the contracts.  A number of communities decided to withdraw from the District, however Rye has not chosen to take this step.  As waste disposal contracts are now effectively between the individual communities and the waste disposal companies, the sole significant function of the District is providing Household Hazardous Waste Days.  Historically there have been two such days annually, one in Hampton and one in Brentwood.  The District is funded by the towns which are members.

             Selectman Musselman asserted that Rye should combine with Portsmouth or Hampton.  If residents are to have access, it needs to be closer than Brentwood. 

            Ms. Gillespie, apparently having retrieved a document from her office, confirmed that Mr. McCarthy’s figure of sixteen was in fact correct.  These represented 20 houses.  At Hampton, there were 48 cars representing 56 houses.

            Selectman Jenness wondered whether people were being adequately informed.  Mr. McCarthy stated that surveys had indicated that most residents were finding out about the Hazardous Waste Day from banners at the transfer centers and the town websites. 

            Selectman Musselman said that the Hazardous Waste Day is in the Solid Waste District budget so Rye residents are paying for it.  That doesn’t make sense if the Hazardous Waste Day is to be in Brentwood.  Mr. McCarthy stated that he had talked to a number of Rye residents at the Hazardous Waste Day in Brentwood.  These people noted that, while Hampton is closer, there is more traffic there.  Mr. Magnant stated that he had been to Hazardous Waste Day in Portsmouth a long time ago, and there had been long lines. 

            Mr. McCarthy stated that there is a proposed “paint care” law which makes retailers take back paint.  The other New England states already have this.  That would take care of the major portion of what is taken in, which is latex paint, motor oil and electronics, things already dealt with at the Rye facility.

            There was discussion about whether there should be one or two hazardous waste days.  Selectman Musselman asked Mr. Magnant to make an inquiry as to whether Rye could pay to participate in Portsmouth’s Household Hazardous Waste Day. 

            Ms. Gillespie noted that 147 people went to Hazardous Waste Day in Hampton that had never gone before.  In Brentwood, there were 43.  Selectman Musselman stated that less than one percent of the population was going each year, indicating that it would take 100 years for everyone’s basements to be cleared of hazardous waste.

 

Old Business:  Timber guard rail discussion (70:35 elapsed)

 

            Public Works Director Dennis McCarthy pointed out the differences between the National Parks rails and the photo that he passed out.  Mr. McCarthy stated that replacements are being considered in “the Precinct,” including Red Mill, Central, and Causeway.  Editor’s note:  Mr. McCarthy typically refers to the Rye Beach Village District as “the Precinct.”  The question is what to do with the old white guard rails.  The wood guard rails are twice the cost of the steel ones.  The questions are aesthetics and cost, Mr. McCarthy said. 

            The consensus seemed to be that wood looked better.  Selectman Mills suggested that the Rye Beach Village District Commissioners go down to stain the wood. 

            Mr. McCarthy stated that, since what is proposed is not an “official” guard rail, he needs a motion to use the proposed structure on Causeway.  The motion was made and carried unanimously. 

 

Joke of the week (77:14 elapsed)

 

            Selectman Musselman announced his joke of the week, which was that, when the Pope met with Congress, he was ministering to the sick.  Mr. McCarthy commented that the Speaker of the House had resigned the next day.

 

Update on the Breakers Duck Pond (77:50 elapsed)

 

            Mr. Magnant stated that tests under wet conditions had come back with high e-coli.  It is unknown whether it is animal or human or caused by runoff from the soil or a defective septic system.  They have been in contact with DES, which has requested that they be contacted again once dye testing has been done.  He understands from talking with Building Inspector Peter Rowell, that dye testing may not tell them a lot. 

            Selectman Mills indicated that he thought that the State could be more helpful.  Selectman Musselman indicated that they could not as there is no law against these ponds.  The e-mails that he has seen indicate that the source is probably nitrates in the waste water and fertilizer and it gets into the shallow pond causing algae growth. 

            Selectman Jenness raised the issue of instituting a pumping ordinance.  Selectman Musselman stated that that was a fine idea and that they should start in connection with the Parsons Creek watershed.  Selectman Musselman stated that it would need to be a warrant article.  He stated that, in 1979, he and Selectman Jenness had deliberated doing this and decided not to. 

            There was discussion about why the pond had not dried up.  Selectman Musselman stated that the ground water level must be high.

            Mr. Magnant stated that correspondence had been received from the property manager indicating that they were aware of the problem and were working on finding a solution to it.  Selectman Mills stated that they could provide lip service for the next ten years.  

            Selectman Musselman suggested that the data that had been obtained should be sent to the condo association.

 

Drug overdose deaths (84:53 elapsed)

 

            Selectman Mills asked Police Chief Kevin Walsh to provide an update to the extent that the information could be divulged. 

            Chief Walsh stated that information had been received from the scene and families that had been forwarded to State and Federal authorities for further follow up.  Over the past nine months since January, Rye has had seven incidents involving heroin, with three arrests and two deaths.  Two were saved with Narcan.

            One death was unfortunate as the individual had been out of jail only two days.  It is not unusual for that to happen.  Other Chiefs in the State are facing the same problem, which is statewide.  The drug court process is not on track.  Check ins are needed with the people.  Talking with the families of the deceased, the history of substance abuse has been long.  “I felt their pain and it was a long weekend for everybody with the conversations,” he said.

            Selectman Musselman asked how people could be informed and their behaviors changed.  Mr. Magnant suggested that Chief Walsh devote part of his section in the Selectmen’s newsletter to the issue and refer to resources that are available for families.

            Selectman Jenness asked whether the seven incidents were all local.  Chief Walsh stated that not all were.  Some occurred in rental properties. 

            Selectman Musselman asked what was fueling the issue.  Chief Walsh stated that it was the price and the fact that it was being mixed with Fentanyl.

            Selectman Jenness said that people have an operation and leave the unused portion of a bottle of pain killers in the medicine cabinet.

            Selectman Musselman quipped that he had had a root canal the prior week and used Scotch.  Selectmen Musselman and Mills laughed out loud.  Selectman Jenness said that, “unfortunately, this is really a bad scene.”

            Chief Walsh reported that Scott Blaisdell has been running the program with the schools.  In some cases, the children have been providing him with information. 

            Selectman Jenness stated that she wished there was some cure.  Chief Walsh stated that they would keep at it. 

            Selectman Mills asked whether Interim Fire Chief Tom Lambert had bought Chief Walsh a coffee in recognition of the mention in the article in the Portsmouth Herald that his men had worked hard.  Chief Walsh responded “not yet.”

            Editor’s note:  An article posted on September 24, 2015 in seacoastonline.com, the online version of the Portsmouth Herald, and presumably appearing in the Portsmouth Herald around that time, indicated that a 46 year old man had died at Adams Trailer Park and a 23 year old man had died after being transported from a house on Grove Rd.  The article states that Chief Walsh had said that police and firefighters had “worked ‘really hard’ to save the man’s life, but were unsuccessful.”

 

Adjournment (93:30 elapsed)

 

            Whereupon the meeting adjourned at 8:51 p.m.