NOTES OF AUGUST 8, 2016 RYE BOARD OF SELECTMEN MEETING

Final Revision B – Provided by the Rye Civic League

Present (clockwise around table): Town Administrator Michael Magnant, Selectmen Musselman and Jenness. Town Finance Director Cyndi Gillespie. Not present: Selectman Mills.

Also present and sitting in the audience: Public Works Director Dennis McCarthy, Police Chief Kevin Walsh, Interim Fire Chief Tom Lambert, Assessor Scott Marsh.

Persons present from the public included: Peter Crawford, Frances Erlbacher, Paul Goldman, John Loftus, Joe Tucker.

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 6:37:07 p.m. (0:00 elapsed). The audio is off until 6:40:13 (3:06 elapsed).

Summary

1. Two members of last year’s Town Hall Committee pushed to have a committee of builders, engineers and architects present “valid” data to voters to avoid the circulation of “spurious” information “kicked around by non-professionals.”

2. Abatements for Sea Glass Ln. were tabled so details for each unit can be provided. Some properties were overassessed because a July inspection, rather than the required April 1, 2015 assessment date, was used.

3. Senator Ayotte may be campaigning at the Transfer Center in August.

4. Certain Public Works projects have been held, rather than placed in the CIP Plan, pending approval of Town Hall.

5. An attempt may be made to present the Town Hall as a “shovel ready” project for federal funding if Clinton is elected and her five-year infrastructure plan passes Congress.

Announcements and sealing of non-public minutes (3:39 elapsed)

Selectman Musselman stated that Selectman Mills was not in attendance as he was not feeling well. Two items on the agenda would therefore not be discussed until a subsequent meeting when Selectman Mills is in attendance: the Shoals View Drive Paving and the Second Ambulance.

Selectman Jenness moved to seal the minutes of the non-public session just concluded, which motion carried unanimously.

Public comment on Town Hall (5:55 elapsed)

John Loftus stated that he had written a letter to the Board. Selectman Musselman indicated that they did not have a copy. Mr. Loftus read the letter. Editor’s note: Although not identified as coming from Mr. Loftus, a copy of the letter is attached to the town minutes of the August 8, 2016 meeting. The letter states that, having read through the minutes of the July 11, 2016 meeting, he is of the opinion that some of the statements made were based on conjecture, specifically that residents want to spend between $2 million and $2.5 million. This was apparently based on responses to last year’s survey. Editor’s note: A copy of the survey results is available at: http://www.town.rye.nh.us/Pages/RyeNH_BComm/TownHallComm/Town of Rye Report DRAFT.pdf. The letter states that the question was flawed as the respondents had no idea what they would be getting for the money. It further states that the 2015 Town Hall Committee went over the previously-considered options of constructing over the Public Safety Building, utilizing the Old Police Station and building on a new site. None of these would have worked well, the letter asserts. The warrant article offering five “digressions” for residents to consider presented too many alternatives, the letter states. Editor’s note: 2016 Warrant Article 11 would have appropriated $60,000 to study the options of (1) renovating the existing Town Hall, preserving the existing historical features, constructing an addition as necessary; (2) renovating the existing Town Hall without preserving the existing historical features, constructing an addition as necessary; (3) tearing down the existing Town Hall and constructing a new Town Hall on the same site; (4) leaving the existing Town Hall for use by others and constructing a new Town Hall on the same site; and (5) leaving the existing Town Hall for use by others and constructing a new Town Hall on a new site. The fifth alternate was contingent on the passage of 2016 Warrant Article 4 that would have appropriated $460,000 to purchase the lot, with the house thereon, just northeast of the Public Safety Building. Article 11 failed to pass, 703-856, and Article 4 also failed, 320-1261.

Mr. Loftus’ letter states that what is needed is a “clear picture of what renovating the existing building will cost and what you get…” It refers to “an extraordinary amount of money rectifying over a hundred years of poor maintenance and hodge-podge additions.” The alternative of tearing down the existing building and constructing a new one would provide the most efficient use for town offices, the letter asserts. The letter emphasized the importance of efficient working space for town employees. It states that Mr. Loftus did some preliminary investigation last year, and arrived at a cost estimate of $2 million for 10,000 sq. ft. using a “panelized” building constructed off site. The letter states that what is needed is a committee of builders, professional engineers and architects, so that “a valid presentation can be made to the voters.” It asserts that “[h]aving the ball further kicked around by non-professionals, who haven’t the knowledge, and want to re-invent the wheel, is a waste of time… [and] will lead to further spurious information circulated around town…” The letter closed with the assertion that the voters should be provided with the facts so that they may decide on a course of action. The choice seems to be between a tear down and a new building, or the route of more costly renovations providing less efficient results, the letter says.

(11:59 elapsed)

Peter Crawford stated that he agreed that there were too many options and this was why the warrant article was voted down. He referred to a figure of approximately 22 percent as the percentage of survey respondents who would support tearing down the building. Editor’s note: The survey results indicate that 12 percent would strongly support tear down, and 16 percent would somewhat support. This compares to 49 percent who strongly oppose tear down and 15 percent who somewhat oppose. The remaining 8 percent are in the “DK/NA” category. Mr. Crawford continued, saying that getting that up to 60 percent would be very tough. He suggested that the focus be on what could be done in terms of renovation for $2 million to $2.5 million and not proceed to consider tear down.

(13:13 elapsed)

Paul Goldman, noting his involvement with the Town Hall Committee, stated that, although a warrant article has not been passed, a lot has been accomplished that does not need to be revisited. It is down to two options. It may be that it would cost significantly more to properly renovate the building and meet all of the codes than to tear down and rebuild. He supports the path that Mr. Loftus is recommending.

(14:47 elapsed)

Public Works Director Dennis McCarthy stated that prices had been provided by three reputable contractors. They have a lot of the answers and nobody has gone back to request information from them. All three crawled through the building. He suggested doing something that would bring them back into the process.

(16:23 elapsed)

Frances Erlebacher stated that Senator Ayotte had been invited to come to the dump as a lark, but they liked the idea. Now, they have been told that permission is needed. They would have a tight turnaround. Selectman Musselman stated that this would be added as an agenda item.

John Loftus, responding to Mr. McCarthy, stated that there was a $700,000 difference in the bids that would raise issues if that data were to be presented to voters. He stated that a lot of people in the town do not understand what is involved with the renovation. The drawings are complicated. He explained some of the work, referring to steel beams, support columns, the slab floor and the foundation condition which is unknown. Eighty or ninety percent of the siding must be removed and the roof structure must be rebuilt, he said.

Consent Agenda (19:18 elapsed)

Two Event Permits, the first being the Saunders 10K Road Race on August 18, 2016 and the second being an MS Bike Ride on August 27, 2016, were unanimously approved. Prior to approval, Selectman Jenness asked whether there was anything missing. Police Chief Kevin Walsh stated that there was nothing missing.

Minutes (20:21 elapsed)

The minutes of the July 1, 2016 meeting were unanimously approved with changes. The minutes of the July 25, 2016 meeting were unanimously approved without changes.

Abatements (22:41 elapsed)

Contracted Assessing Agent Scott Marsh, with Municipal Resources, came up to sit at the table.

With regard to the Gamache property, 8 Cable Rd. #2, map 53, lot 46-2, Mr. Marsh explained that this is a condominium unit. Some market data was provided by the owner. After inspection, he noted discrepancies and reviewed the market. After adjustments, the assessment was reduced from $579,100 to $445,200. This is a two unit building, he said. The abatement of $1491.65 plus interest was unanimously approved.

With regard to the Grondahl property, 1270 Ocean Blvd., map 17.3, lot 58, he stated that this is an oceanfront property with a contemporary style home and a colonial style home. The market data provided was given no weight as two of the three were not on the water. Mr. Marsh stated that he inspected the property and noted discrepancies. The secondary, contemporary style home has been demolished and is being rebuilt. As of April 1 of last year, it did not have much value. That is the primary difference in the assessments, he said. The abatement of $1603.76 plus interest was unanimously approved. Editor’s note: The agenda indicates a reduction in the assessment from $1,784,900 to $1,645,200.

Mr. Marsh then addressed the Sea Glass Lane properties. He explained that this is a new condominium development. There are a number of individual units. The prior assessor had assessed them as though they were individual lots when there is only a limited common interest in using certain areas. An analysis based on actual sales prices indicates that the land value used was overstated in most cases. As of April 1, the stage of completion listed was inaccurate. Someone had gone out in July and listed what was there at that time. Because all of the units have now been sold, the developer paid only a portion of the taxes. The DRA recommends that abatements be pro rated based on the percentage of taxes paid. It would then be up to the Board as to whether to grant abatements to the current owners. They did not technically file abatements, however the Board has the authority to grant abatements to them.

In response to a question from Selectman Musselman, Mr. Marsh stated that, when a discrepancy is found justifying an abatement for one property, some towns grant abatements on similarly situated properties, while others adjust their values but do not grant an abatement for the current year as no application was made. He stated that some property owners had come in to inquire as to whether they needed to file, but were told that this was unnecessary as the developer was filing for the abatement.

Mr. Marsh stated that the abatement would be $8636.06, or $17,054.69 if abatements are also granted to the current owners.

Selectman Musselman suggested that the matter be tabled to a subsequent meeting. Selectman Jenness agreed, suggesting that data be provided for each individual property.

Selectman Musselman stated that, in the past, inequities discovered have been adjusted in the next assessment. The question is what should be done with this situation. Mr. Marsh confirmed that the new owners had been paying taxes based on the April 1 values. Both Selectmen agreed that Selectmen Mills should weigh in on this as well.

Mr. Marsh confirmed that the percentage of the taxes paid by each owner varied based on the date that they purchased the property. All of the properties were sold prior to April 1, 2016, so they should all be fully valued for this year’s taxes, he said.

Selectman Jenness’ motion to table carried unanimously.

(35:03 elapsed)

Mr. Marsh stated that he is recommending denial of the next four abatement requests. Editor’s note: These are all properties owned by the Marc Grondahl Revocable Trust according to the agenda. The property on Brackett Rd. is a 2.9 acre parcel. No evidence of value was provided. Adjustments for topography had already been applied. Selectman Musselman asked about the $7.4 million assessment for 65 Wallis Rd. Mr. Marsh stated that that is a large custom built home on a 58 acre parcel. The assessment doubled last year. The house was built in 2014 and information was requested but none was provided.

Selectman Jenness’ motion to approve the denial of the abatements on all of the Grondahl properties carried unanimously.

Selectman Musselman asked about Northern New England Telephone. Mr. Marsh explained that this is formerly Fairpoint and that they have filed again this year, alleging illegality and unconstitutionality. Litigation is pending and the Town Attorney is involved, so he recommends denial. There has been legislation and DRA is going to be providing information on how to value poles and conduit, starting in 2017. A substantial part of the value is for the use of the right of way. Selectman Musselman noted that this is for 2015, prior to the change in the language for pole licenses, which makes taxation of the right of way legitimate for 2016. The motion of Selectman Jenness to deny the abatement carried unanimously.

Bid results for mowing and catch basin cleaning (39:13 elapsed)

Public Works Director Dennis McCarthy stated that the bids had been opened July 28. There was only one bid from Sewall Enterprises for the mowing, which was from the incumbent, and was for $85 per hour. The prior work has never been a problem. They will be in right after Labor Day to mow the sides of the roads.

The low bidder for catch basin cleaning was from Hartigan Wastewater Services for $31.25 per catch basin, which is the rate applicable to the majority of the work. They have done the work for the past three years. About 200 basins, or 25 percent, are cleaned each year. The work is scheduled to begin on October 3.

Mr. McCarthy, in response to a question from Selectman Musselman, stated that there would only be a couple of hundred dollars billed at the hourly rate, compared to about $6000 for the catch basin cleaning.

It was noted that no motion was needed.

Ayotte visit to Transfer Center (41:01 elapsed)

Frances Erlebacher provided additional details beyond the earlier discussion of this issue. She asked for a person who could be contacted on quick notice to obtain permission.

In response to a question from Selectman Musselman, Public Works Director Dennis McCarthy stated that there had not been Senate or House candidates campaigning at the Transfer Center in the past, however it is not unusual to get requests from politicians. All are asked to stand in the free speech zone away from the queue.

Selectman Musselman asked how they would deal with a lot of people who might come wanting to meet Senator Ayotte.

Mr. McCarthy stated that the staff would push the people wanting to meet her out of the Transfer area into the Public Works area. They could make that work safely, he said. Right now, the area is available on all days.

Ms. Erlebacher stated that this would probably occur in late August.

Selectman Musselman said that there would be an issue if Senator Ayotte’s visit were advertised. Ms. Erlebacher stated that the intent was primarily to meet local residents.

Mr. McCarthy stated that two days notice would be fine unless the slot has already been filled.

Selectman Musselman moved that Senator Ayotte be permitted to “meet and greet” at the Transfer Station on a weekday with two days notice to the Public Works Director with caveats that: (1) there be no prior advertisement and (2) that the date not be otherwise specifically committed to another “meeter or greeter.” The motion applies to August.

Selectman Musselman asked whether this was to be solely Senator Ayotte, or whether she might be bringing presidential candidates with her. Mr. McCarthy quipped that “they are talking now.” There was laughter. Mr. Magnant suggested that there be no stump grinding on the day of the visit, which Mr. McCarthy agreed to.

All were in favor of the motion.

Capital Improvement Program Plan placeholders for Town Hall and Public Works (49:13 elapsed)

Town Administrator Magnant stated that the CIP Committee was asking for information on Town Hall plans. In the past, a placeholder has been submitted as there was some semblance of a plan.

Selectman Musselman suggested that the amount not be changed. They should explain that it has been voted down and that the number will change when it changes. The number to which it should be changed is currently unknown, he said.

Selectman Jenness asked about Public Works.

Public Works Director Dennis McCarthy stated that they had some projects, but these had been held in the hopes of some movement on Town Hall. However, the CIP Committee had asked them to move forward with a couple of their projects, most notably the Salt Shed.

Selectman Musselman stated that he would like to see a report before the information is provided to the CIP Committee so that they can see the components.

Preparation for possible “shovel ready” projects (51:30 elapsed)

Selectman Musselman stated that he is hearing “political rumblings” that there may be an infrastructure initiative in the Spring. He stated that one of the two presidential candidates had stated that there would be such a program in the first hundred days, starting in January. Editor’s note: This is an apparent reference to a proposal by Democratic Party Presidential Candidate Hillary Clinton that $275 billion be spent on a five-year plan to rebuild U.S. infrastructure, to be passed in the first 100 days of her term. See https://www.hillaryclinton.com/issues/fixing-americas-infrastructure/ Whether that, or anything, would get through Congress is a good question, Selectman Musselman said. The last time that this was talked about was 2008. In a very short period of time there was a massive amount of money that was put out, and in New Hampshire there were competitions for projects that were “shovel ready.”

Public Works Director Dennis McCarthy stated that both Red Mill Ln. culverts will be ready for bid in October if all goes according to plan.

Selectman Musselman noted that there are different requirements for federal programs, including different wage rates. He suggested bidding in March.

Selectman Musselman also noted that Town Hall is shovel ready. People may hate it, but they should be ready. Editor’s note: A detailed design was completed in 2014, but the $4.1 million warrant article to fund construction was voted down in 2015.

There was also a reference to the Harbor Rd. Bridge.

Floors at Public Safety Building (57:35 elapsed)

Town Administrator Magnant noted that the floors at the Public Safety Building have been done. Interim Fire Chief Tom Lambert stated that they will be ready to move back in by the end of the week.

Adjournment

Whereupon the meeting adjourned at approximately 7:36 p.m.