NOTES OF DECEMBER 26, 2017 RYE BOARD OF SELECTMEN MEETING
Final Revision B – Provided by the Rye Civic League
Present (clockwise around table): Town Administrator Michael Magnant, Selectmen Craig Musselman, Priscilla Jenness and Phil Winslow, Finance Director Cyndi Gillespie. Also present and sitting in the audience or the lobby outside: Police Chief Kevin Walsh, Fire Chief Mark Cotreau, Public Works Director Dennis McCarthy.
Persons present from the public included: Victor Azzi, Steven Borne, Becky Franz, Howard Kalet, Suzanne McFarland.
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 6:39:14 p.m. (0:00 elapsed).
Summary
2. The Selectmen voted to
authorize the prepayment of taxes.
7. A warrant article to
sell the Trolley Barn (Old Police Station) was approved.
Announcements: Settlement of South Road litigation (0:40
elapsed)
Selectman announced the
closing of the Town offices on January 1, 2018.
For the second
announcement, Selectman Jenness recused herself, got up and left the table.
Selectman Musselman
announced the settlement of the Stoneleigh Preserve litigation. Editor’s
note: This is also known as the Falzone
Development, or 421 South Rd. Selectman
Jenness is one of the property owners of a portion of the land that is to be
developed and is one of the co-plaintiffs referred to below. Summary of the Settlement:
o
$400,000 payment
to the developer
§
$100,000 from
Town funds
§
$300,000 from
Conservation funds
o
58 acres plus
one non-buildable lot to be placed in conservation.
§
No easements or
public use mentioned
§
The developer
had previously been willing to donate 40 of the 58 acres
o
Thirteen allowed
lots on two separate cul-de-sacs
o
Few
accommodations for abutters
o
No blasting
during construction
Selectman Musselman read a statement that
said that, on December 26, 2017, the Town of Rye, Harbor Street LLC and its
four co-plaintiffs filed a settlement stipulation in Rockingham County Superior
Court of the three lawsuits brought against the Town land use boards as a
result of the Planning Board’s August 2017 denial of Harbor Street’s proposed
subdivision. Editor’s note: Click here
to see the statement. A copy of the
settlement stipulation is on file with the Town Clerk as required by the
right-to-know statutes, he said as he read from the statement. The statement referred to mediation in
November. Three members of the Planning
Board, the Chairman of the Rye Conservation Commission, the Planning and Zoning
Administrator and Town Counsel participated in the mediation. Editor’s
note: According to paragraph 39 of the
Amended Complaint filed by the developer in case 218-2017-cv-871, a majority of
the Planning Board members live close to the proposed development, although
this fact was not disclosed, and two members live within 800 feet on the same
road.
Selectman Musselman
said that the Planning Board approved the agreement in principle in a
duly-called non-public meeting on November 27.
On January 9, 2018, the Planning Board will hear a revised proposal for
13 building lots located on two cul-de-sacs located off of South Rd. A fourteenth lot will be donated to the Rye
Conservation Commission. The Zoning
Board of Adjustment had denied a driveway wetlands buffer crossing for that lot
which has a large vernal pool.
The revised conveyance
includes an additional 18, plus or minus, acres of open space, 58, plus or
minus, acres total, to be conveyed to the Rye Conservation Commission. The additional acreage includes uplands that
would have been building lots. The
Conservation Commission will pay $300,000 for the conveyance of the 58, plus or
minus, acres of open space. Editor’s note: This amount will apparently come out of the
money voted by 2014 Article 7. That bond
issue for $3 million was narrowly approved by voters, 1001-656 after recount
(60 percent (995 yes votes) was required).
Approximately $1.7 million of that bond issue remains to be drawn
down. Most of the $1.3 million already
drawn down was used to acquire the back portion of the former Rand Lumber
parcel (i.e. Sea Glass Ln.) and the back portion of the Cedar Run development
off of South Rd. With this third major
expenditure from the $3 million bond issue, all but a small portion of the
money will have gone to pay developers to reduce the size of their
developments. No interest or principal
payments have yet been made on the undrawn portion. As additional land acquisitions such as this
are made, taxation will need to increase to service the associated debt. Pursuant to N.H. Rev. Stat. Ann. 36-A:5, a public hearing is required before the conservation
funds may be spent. Nevertheless, the
agreement settling the lawsuit states that the “Rye Conservation shall pay
$300,000 to Harbor Street…” for the 58 acres (of which 40 acres were previously
going to be donated to them, according to the above). Click here to see the filings associated
with the lawsuit.
Selectman Musselman
continued, saying that the Town will also pay Harbor Street $100,000 for
release by all plaintiffs of all of their damages claims. This amount will be paid from litigation
reserves. The Planning Board,
Conservation Commission and Board of Selectmen believe the settlement is
reasonable and prudent. The reduction in
the number of lots, the elimination of a substantial amount of street
construction, narrower streets, and the additional preserved open space provide
a greater protection of water resources, wetlands, vernal pools and the nearby
white cedar forest than the initial 17 lot proposal. If the lawsuits had proceeded to trial and
the Town lost the result would be a less environmentally-sensitive 17 lot
subdivision. While the Planning Board
believed its denial was reasonable, the legal issues before the court were
complex and there is no guarantee of a positive outcome. For similar reasons, the Board of Selectmen believe that the payment of $100,000 for release of the
damages and attorneys fees claims, which were substantial, is reasonable.
Selectman Musselman
said that the statement had been prepared by the Town Attorney for the Chairman
of the Planning Board, Bill Epperson, the Chairman of the Conservation
Commission, Sally King, and I, Chairman of the Board of Selectmen. The information is now public information in
the court and in the Town Clerk’s office.
We wanted a public statement prior to people finding that out on their
own and starting to talk about it around town.
Any further statements on this, as far as the Board of Selectmen are
concerned, would be coming from the Town Attorney.
Selectman Jenness then
again assumed her seat.
Public comment (5:41 elapsed)
Steven Borne asked
whether the settlement announcement would be posted.
Selectman Musselman
said that it would be posted with the meeting minutes. Mr. Magnant said that typically only the
court documents are posted.
Mr. Borne said that he
had wanted to stick around at the last Board of Selectmen’s meeting for the
Parsonage (sic) discussion. Editor’s note: He meant the Parson’s Creek Watershed
discussion. I had to watch it and go
through the documents. There were some
pretty significant things. DES called it
an impaired body of water. They said that above .26 septic systems
per acre you can begin to have problems.
We’re at .45. Of 843 lots, 383
were within 100 ft. of the septics (sic).
Editor’s note: He apparently meant wetlands. Three hundred and fifty-seven were within
75 ft. and 331 were within 50 ft. The
readings at the Parsons Creek outlet when there is rainfall are not
surprising. Instead of relying on
grants, we need to be aggressive and spend money. I’ve been to a lot of Planning Board and ZBA
meetings where waivers have been granted.
This problem could be rampant throughout Rye. We need to be much more professional and put
our own money down to fix this problem, more aggressively, he said.
More than half of
readings in the report were above 104.
One was at 17,000. It’s unfair to
people from out of town to play at that beach, which has no warning sign. With all of the high readings there needs to
be a permanent sign, he said.
With regard to the
Grove Road Landfill, we’re assuming that the contaminants were caught before a
problem occurred. It is just as likely
that the contaminants have been flowing into Rye water and have been spread all
over town for 10 or 15 years. There is
nothing to tell us otherwise, he said.
One reading is sufficient. It
should not be said that we need more data.
We need to take action, he said.
Police Chief Kevin
Walsh referred to Emergency Public Information calendars that had just come out
and a photograph by Planning and Zoning Administrator Kim Reed on the page
associated with August. There is also a
picture of a boat sailing off of Rye associated with the September page, he
said.
Consent Agenda (11:49 elapsed)
Selectman Musselman
enumerated the items as a letter from Barbara Dallmeyer relating to property
taxation, a letter from Peter Crawford seeking permission to collect signatures
for Petitioned Warrant Articles at the Recycling Center, a Heritage Commission
request to expend funds from donations in the amount of $2850 and a letter from
David Rimbach seeking a tax abatement. Selectman Musselman said that, if Mr.
Crawford’s request remains on the Consent Agenda, it would be granted without
even asking Mr. Crawford what he would be seeking signatures for. He also said that Mr. Rimbach’s request would
be referred to the Assessor.
All items on the
Consent Agenda were approved unanimously.
Minutes (13:01 elapsed)
The minutes of the
October 26, 2017 all-day budget meeting were unanimously approved with
changes.
The minutes of the
December 11, 2017 meeting were discussed and some changes made. After Mr. Magnant said that there was a
problem with the minutes of both the public and non-public sessions of that
day, a motion was made to table both of them, which carried unanimously.
Retaining wall in right-of-way at 804 Central Rd. (19:50 elapsed)
Becky Franz, the person
requesting permission for the wall addressed the Selectmen. She said that they were about four days into
construction of a short retaining wall when Public Works Director Dennis
McCarthy stopped by and informed them that they were not following the property
line. It angles slightly. We told him that an angled wall would look
strange and would interfere with the trees.
He said that I would need to talk with you, she said. She apologized for not coming to the
Selectmen first. We have stopped
construction pending your approval, she said.
Selectman Musselman
said that she was not the first person to have started building a wall and been
visited by Mr. McCarthy.
Mr. McCarthy said that
the communication lines with the precinct are not quite as good. We are trying to straighten that out, he
said. The precinct sets the grades of
the sidewalk. We just assist them with
the removal, he said.
Ms. Franz showed the
plan to the Selectmen and described where the wall would be.
The motion to approve
the wall subject to an appropriate agreement executed by the Town Administrator
and approved by the Public Works Director carried unanimously.
Motion to seal non-public minutes (25:49 elapsed)
The motion to seal the
non-public minutes of the meeting at 5:45 p.m. carried unanimously.
Prepayment of taxes (26:35 elapsed)
Town Clerk Donna
Decotis came up to sit at the table.
Selectman Musselman said that there had been lots of interest in Rye by
people wanting to prepay taxes. You can
only do so if the municipality has adopted a portion of the state statute that
authorizes that. It would need to be
done by the governing body, not the legislative body. It needs to be done by the end of the year if
it is to be of any use to people this year, he said.
Town Administrator
Magnant said that this had come about because of the President’s and Congress’
massive tax reform. It is going to have
a negative impact on people’s ability to deduct their property taxes so the
phones have been ringing off of the hook in Donna’s office. He said that the Town Clerk had done research
as well. If passed we are ready to have
it up and running tomorrow, he said.
Selectman Jenness said
that nobody knows what their taxes will be.
She asked whether even dollar amounts would be accepted.
Mr. Magnant said that
the prepayment could be any amount up to two years worth. It would be up to the homeowner to decide how
much to prepay, he said.
Ms. Decotis said that
there is no problem with the tax system.
That was verified with Town Finance Director Cyndi Gillespie, who uses
the same system. I also spoke to the
auditors who indicate that there are other towns that do this, she said. We would have to put in the credits, she
said. She suggested that whatever was
paid in 2017 would be the limits for 2018 and 2019.
Past practice has been
to refund any credit balances by year end, Ms. Decotis said.
Selectman Musselman
asked whether any additional bonding would be required.
Mr. Magnant said no.
Selectman Musselman
asked how they knew whether the new tax bill would allow people to make any use
of this benefit. He also asked whether
the Town was assuming any liability by permitting this at such a late date.
Selectman Winslow said
that there is no assurance that the tax bill will allow this to happen. I have an opinion from my CPA which advises
people to prepay their property taxes but not their state taxes. If they are subject to AMT they may not be
able to get the benefit however, he said.
Editor’s note: AMT stands for Alternative Minimum Tax. Selectman
Winslow suggested that two statements should be made if this is approved, first
that allowing advance payment of property taxes in no way assures that these
payments will qualify for 2017 tax deductions and second that participants are
advised to obtain their own advice.
Ms. Gillespie said that
if, after two years, more than $600 is retained, it will probably need to be
sent back to the taxpayer with a 1099.
That is currently true of any abatements over
$600. Editor’s note: A form 1099 is
the tax form used to report income to the IRS.
Selectman Musselman
asked what happens if the tax bill is very different next year, for example if
the property burns and is not rebuilt, or if there is a dispute. He said that he thinks that the Town Attorney
should draft a disclaimer.
Mr. Magnant said that
he was not sure that he would be able to get that done in a timely manner.
Selectman Winslow said
that they are not plowing new ground as other towns allow prepayment.
Selectman Musselman
disagreed, saying that the fact that the taxes may be deductible if paid this
year, but not next year, is plowing new ground.
Ms. Decotis said that,
just today, 30 voice mail messages had been received on this issue. We’ve also been flooded with emails, she
said.
Steven Borne said that
he agreed with Mr. Magnant and did not think that complicating the issue with
disclosure was appropriate. He said that
they would need to get the word out. He
also asked what would be done with the extra money collected.
Selectman Musselman
said that it would go into the General Fund, earning a small amount of interest
on it, with no interest paid to the property owner, and would not be
spent.
Mr. Magnant agreed that
they would need to get the word out.
Selectman Musselman
made a motion to authorize prepayment of taxes in accordance with RSA 80:52-a,
with an appropriate disclaimer drafted by the Town Administrator, to be
incorporated with receipts. All were in
favor.
Six month report on utilization and costs of the second ambulance (45:24
elapsed)
Fire Chief Mark Cotreau
came up to the table to present. He said
that prior to his employment with the Town a new ambulance had been obtained
and there was a six month trial to see how it worked out financially to retain
the other one (referred to as A1).
We had some expenses,
he said. In readying the ambulance, we
bought seven new tires for $2600, a new fuel tank for $3471 and had a DOT
inspection in November and some minor repairs.
Total expenses were $6617, not counting fuel and insurance. From May 5 to December 22 there were 16
responses as the backup ambulance. There
were only 9 transports. The net revenue
per transport this year is $452, for a total of $4068. It is not all billable or allowable, he
said.
Net of expenses, the
revenues were a negative $2549. I don’t
see a need to expend a similar amount of funds to ready the ambulance in the
future. I would be remiss if I did not
say that the Rye Firemen’s Association invested in readying the vehicle by
contributing $3000 to the purchase of a new stair chair, he said. If we can agree that new tires are a cost of
readying the ambulance and that fuel tank replacements are rare retention of
the ambulance made money. Anything can
happen, but A1 is not nickel and diming us.
Without the tires the revenues are positive. Staffing costs are not affected. We call back every time we have an emergency
run anyway. If there is no ambulance
present, the call would be covered with the fire truck and a mutual aid
ambulance would come from out of town.
There is a value operationally if there is a serious medical emergency,
he said.
A survey of 13-15
communities under 10,000 population indicates an
average of 2.11 ambulances. We would not
be an outlier, he said.
The value is not in the
transports but the amount of time the ambulance is available.
Selectman Winslow noted
that Rye’s fees are at the low end compared to other communities.
Selectman Musselman
said that it was the most cogent analysis seen from the Fire Department in a
very long time. I understood it, it made
sense and there wasn’t anything else to ask, he said.
Energy Committee request to endorse the
formation of a multi-state task force to explore the potential for offshore
wind development (53:49 elapsed)
Howard Kalet and
another Energy Committee member addressed.
A number of other communities had asked the Governor to join in the
effort. It was indicated that they had
suggested the form of a letter to be sent.
Selectman Jenness said
that she is in favor of exploring new sources of energy and that the letter
does not require the expenditure of town funds.
Selectman Musselman
said that he thinks that wind energy is an untapped energy source that needs to
be tapped. All of the communities
joining in are ones that will not have to look at it, he said. There will be a lot of people in Rye who will
not want to look out at windmills, even if they are 10 or 20 miles
offshore. It has proceeded at Block
Island with varying reactions. This is
the New Hampshire and Maine coastline.
It does not refer to Rye. I will
vote to send the letter, he said. It
should be environmentally evaluated if there is a visual impact.
Selectman Winslow said
that Rye has the longest coastline of the 18 miles of New Hampshire
coastline. A lot of our tax base is
along the seacoast. I talked to a friend
who has a house on Block Island. He said
that the visual impact is significant.
They can be as high as 900 feet.
You are looking at them even 10 miles out. He spoke about the impact on fishermen and
lobstermen and the impact on their radar systems when they are traveling in
fog. We need some understanding of where
they would be and some ability to have a say on the task force as we will be
the most impacted of any other community in New Hampshire, he said.
Suzanne McFarland, Rye
Conservation Commission, said that they had talked about this at length. I live on the beach, she said. We want to ask the Governor for a task force
as we want a seat at the table. Maine
has a task force. All of the states on
the Eastern Seaboard have task forces, except for us, she said. In federal waters, they can decide. We don’t get to pick the developer. If we don’t have a task force we don’t have a
seat. They are talking about 30-50 miles
offshore. Governor Sununu is dealing
with five year old data. Ms. McFarland
said that there are fourteen towns looking into this. She listed some of the towns. The Conservation Commission and Energy
Committee would do a warrant article on this subject if needed, she said.
Selectman Musselman
said that he had read in the Boston Globe earlier that day that Donald Trump
had tweeted in 2012 that wind energy was an environmental and visual
disaster. There are some politicians
that are against it, but I am not sure of the depth of analysis that he did
before sending his tweet, he said.
Ms. McFarland
reiterated that New Hampshire should have a seat at the table.
Selectman Musselman
asked whether there was a motion.
Selectman Winslow
suggested that the letter request that someone from Rye be on the task force as
the most impacted community.
Selectman Jenness said
that she agreed with Ms. McFarland that without a seat the town would have no
voice at all.
Selectman Musselman
referred to the Isles of Shoals and said that you wouldn’t think that they
would pick a spot that was populated well out to sea.
Ms. McFarland said that
they are looking at the Portsmouth Naval Shipyard to do assembly, which would
be the state. Editor’s note: The shipyard is
actually in Maine. Mr. Kalet said
that the greatest activity is in the
North Sea using floating offshore oil platform technology. There is discussion of a cable going from
Maine to New Jersey with local taps.
Selectman Winslow said
that he had seen wind turbines within 2-3 miles of shore in Europe. He said that the oil platforms have also been
produced in Portland, Maine, so Portsmouth may have competition.
Selectman Musselman
moved that the Chairman be authorized to send a letter similar to that
suggested, but with a clause suggesting that, since Seacoast residents would
bear the burden, that Rye have a seat on the task force. Selectman Jenness seconded. All were in favor.
Selectman Musselman
said that no citizen petitioned warrant article was needed.
TD Bank Building Purchase (55:16 elapsed)
Town Administrator
Magnant said that he had been asked to negotiate with the Bank with the help
and assistance of the Town Attorney. You
have the proposed purchase and sale agreement for $540,000 in your packets, he
said. It has been vetted by the Town
Attorney. Time lines have been adjusted
to match up with Town Meeting. The bank
initially wanted a deposit but they have graciously agreed to remove that
clause. It is obviously conditioned on
the passage of the warrant article. The
closing date is no later than April 10, 2018, he said.
Selectman Winslow asked
about easements, encumbrances or hazardous waste issues.
Mr. Magnant said that
there were none that he knew of. He
added that the bank wants the Town to have title insurance. There will be a host of additional fees
included in the warrant article, he said.
Selectman Musselman
asked about the duration of the option and referred to the mention of a date
within fifteen days of approval.
Mr. Magnant said that
that was Town Meeting approval.
Selectman Musselman
referred to a March 10 Town Meeting date and asked whether closing could occur
by March 25. Editor’s note: The annual Town
Election (i.e. second session of the Town Meeting) is always scheduled for the
second Tuesday in March, which is March 13, 2018. He asked what there rush was if it all
happened by April 10.
Mr. Magnant said that
the Bank is very anxious to get this done.
Selectman Musselman
asked whether there was a financial issue, and noted that they had not yet
decided whether this would be a bond.
Town Finance Director
Cyndi Gillespie said that bond bank applications are due April 13 and the money
is not released until July 13, so that would be a problem, she said.
Selectman Musselman
asked whether they could pay cash and recoup the funds once the bond went
through. Ms. Gillespie indicated that
that could be done. Selectman Musselman
asked whether, if cash was paid, the transaction could occur 15 days after Town
Meeting. Ms. Gillespie confirmed.
Selectman Musselman
referred to an extra $100,000 in interest if it is bonded over 10 years.
Selectman Musselman
said that we had not had an opportunity to do due diligence yet.
Mr. Magnant confirmed
that they would not be allowed in the property without a signed purchase and
sale agreement.
Selectman Musselman
asked whether the staff had been through the property prior to its closing.
Mr. Magnant
confirmed.
Selectman Musselman
asked what was left to be done.
Mr.
Magnant referred to inspection, a radon test, and testing of the leach field by
the Building Inspector. That would
occur in January or February, he said.
Selectman Winslow asked
whether the drive up window was operational and how many safes there were at
the bank.
Mr. Magnant responded
that it was operational and that there are three safes. Town Clerk Donna Decotis confirmed that they
are usable, he said, one is for cash and the other two for safety deposit
boxes, he said.
Selectman Musselman
asked whether there was sufficient space to house two departments, such as Town
Clerk and Assessing or Town Clerk and something else.
Mr. Magnant confirmed
that it was possible depending on the departments. Some modifications may be needed. Bringing the files over may be problematic. A lot of the area is taken up with the lobby
and there are small offices and a conference room. Temporary cubicles might be possible, he
said.
Selectman Musselman
asked whether removal of certain departments would solve some of the problems
with Town Hall.
Mr. Magnant said that
Planning and Zoning Administrator could be moved into the Town Clerk’s area and
Building Inspector Peter Rowell could be moved downstairs from the old
Recreation area.
Mr. Magnant said that
moving people around would permit certain departments that deal frequently with
the public, such as Assessing, to be located on the first floor. The TD Bank building is accessible, he
said. They claim the countertops are ADA
compliant, he said.
Ms. Gillespie suggested
removing the safe deposit boxes so that the safe could be used for historical
records.
The motion of Selectman
Winslow to authorize the Town Administrator to assign the purchase and sale
agreement, seconded by Selectman Jenness, carried unanimously.
Editor’s
note: There was more discussion on the
TD bank building acquisition and costs beyond the $540,000 acquisition price
later in the meeting. Click here.
Bond public hearing date (65:41 elapsed)
Selectman Musselman
asked which bonds this was for.
Ms. Gillespie said that
it was for any bonds and that there were several.
Ms. Gillespie said that
the last day for petitioned bond warrant articles was January 5. The last day to post any bond hearings is
January 9. The last day that they can be
held is January 16.
It was agreed that the
bond hearing would be January 16 at 6:30 p.m.
Mark Josephs, 540
Washington Rd., asked whether the intent was that the building would have the
same footprint as the TD Bank building.
Selectman Musselman
said that they would be changing only the sign.
Mr. Josephs asked about
the plans for the back two acres.
Selectman Musselman
said that a future town meeting could decide otherwise, but there are no
current plans to do any construction other than inside the existing
building. He added that he thinks that
it is attractive to have drive through service, similar to that in Hampton and
Somersworth.
Mr. Josephs expressed
concern about future expansions and possibly carving into the Town Forest.
Police Chief Kevin
Walsh said that the parking lot is used for school events in the evening. He said that there is not room for any
additions.
Selectman Musselman
said that there will not be anything, ever, moving into the Town Forest, which
is controlled by the Conservation Commission, or into Parsons Field which is
sacrosanct, and, he believes, also controlled by the Conservation
Commission. In the near term it can be
non-descript, and that is the hope, he said.
Letter regarding Keno in Rye (83:16 elapsed)
Selectman Musselman
summarized the issue, which relates to a new state statute that allows Keno in
restaurants and bars that pour alcohol.
The funds would be used for full-day, rather than half-day,
Kindergarten. The letter is from the
Executive Director of the New Hampshire Lottery and, according to the agenda,
asks for a warrant article to allow this in Rye.
Police Chief Kevin
Walsh estimated that there are seven or eight restaurants in Rye.
Selectman Musselman
asked whether anything had been heard from restaurants in favor.
Mr. Magnant said that
nothing had been heard.
Selectman Musselman
said that they probably had not been informed.
Suzanne McFarland said
that Portsmouth had a hearing on the issue and none of the restaurants wanted
it.
Selectman Jenness said
that it was the wrong way to go about funding.
She asked whether restaurants would be required to accept Keno if a
warrant article passed.
Mr. Magnant said that
he did not know, but he did not believe so.
Chief Walsh referred to
residents near the Rye General Store as being possible opponents of Keno in that
facility.
Selectman Winslow said
that input was needed before they go forward with the warrant article.
Selectman Musselman
said that his own opinion is that it is the most regressive way to tax
people.
Selectman Winslow said
that New Hampshire has a long history of that, and was the first state to
institute a lottery.
Ms. Gillespie said that
the governing body is not required to place the warrant article, although a
citizen petition could do so.
The motion to place the
letter on file carried unanimously.
Letter from John Loftus requesting breakdown of Town Hall soft costs
(87:41 elapsed)
Mr. Magnant distributed
a copy of a letter that he had received earlier that day from John Loftus. He said that Mr. Loftus was requesting a
breakdown of the soft costs used by Hutter for the 2017 Town Warrant. I have given him everything that I can put my
hands on in terms of soft costs that we used, Mr. Magnant said. We didn’t know what the soft costs were that
Hutter used, he said.
Selectman Jenness said
that they should not ask Hutter questions that the Town would be charged
for.
Selectman Musselman
said that he did not have additional information. Mr. Loftus should be told that he has all of
the information that is in our possession.
We don’t know what his proposal is, he said. Editor’s
note: Mr. Loftus was the proponent of
2017 Petitioned Warrant Article 34, which passed 873-700, which, at no cost to
taxpayers, asked him to do a conceptual design of a new Town Hall with the
assistance of an architectural firm.
Although the discussion relating to the warrant article was that the
plan was to tear down the existing Town Hall, that was
not mentioned in the warrant article.
Town Administrator
Magnant said that he planned to demolish this building.
Selectman Musselman
asked where the employees would be moved.
Mr. Magnant said that
it would probably be into trailers.
Mr. Magnant said that
he had a spreadsheet that provided for $296,000 in soft costs. The warrant article was $300,000 more than
Hutter had proposed. That was the soft
cost and contingency that we rolled into the warrant article, he said.
Capital outlay: Town Hall (90:51 elapsed)
Town Finance Director
said that the Department Request had been changed to $17,500, which is general
maintenance. Originally, $25,000 had
been put in. The reason money was taken
out was that it had been overbudgeted by $10,000. The Capital Outlay had been for $39,000, of
which $20,000 was for the stone wall and $19,000 was the Historical Structures
Report. The Selectmen took that out,
believing that it was part of the painting.
Selectman Musselman nodded his head no.
Ms. Gillespie said that
the warrant article cannot be split between the painting and operating
costs. It needs to say that the painting
is $95,000, of which $80,000 is from the Municipal Buildings Expendable Trust
and $15,000 is to be raised by taxation.
That takes care of that. I took
$10,000 out of what we had budgeted, she said.
Selectman Musselman
said that he thought that they had talked about the fact that, if the Loftus
proposal gets voted up, no painting of the Town Hall is necessary and there is
a capital reserve for Town Hall maintenance that in future years would need to
be rebudgeted elsewhere. If the Loftus
article is voted down we need to paint the Town Hall as a matter of normal
prudence. We thought that we were going
to have the $95,000 at the end of the budget process this year so there would
not be a warrant article on painting Town Hall.
He said that the two Hutter proposals had been voted down in 2017, as
well as a $500,000 warrant article that included the painting of Town
Hall. The question is, if there are
sufficient funds in the reserve and the warrant articles are voted down, can
the $95,000 be taken out and the Town Hall painted, he said.
Ms. Gillespie said that
there would only be $83,000.
Selectman Musselman
asked why more couldn’t be put in.
Ms. Gillespie said that
money cannot be put in and taken out in the same year.
Selectman Musselman said
that he now understood.
We may wind up with
only this building at the end of the process, he said. If that happens we need to paint it. But, if we put another warrant article in
people who vote for the Loftus thing are going to vote not to paint it because
that’s stupid, he said.
Mr. Magnant said that
that had come up at the Budget Committee meeting.
Ms. Gillespie said that
the warrant article needs to indicate the total being spent.
Selectman Musselman
warned that all of warrant articles may be voted down and we will go through
another year with more peeling paint.
Ms. Gillespie said that
if $15,000 is put in the operating budget it would raise the question of, if
the $80,000 gets voted down, there is another $15,000 elsewhere.
Selectman Musselman
asked whether the $80,000 could not be spent on painting if there is another
$15,000 elsewhere.
Ms. Gillespie confirmed
and said that the money could not be taken out without a warrant article.
Selectman Musselman
said that it was then not an emergency fund.
It wouldn’t make sense to require a warrant article if a boiler blows
up, he said.
Ms. Gillespie said
that, no, this is an expendable trust and the Selectmen are the agents to
expend.
Selectman Musselman
asked why the $80,000 couldn’t then be taken from the reserve and another
$15,000 from another line item.
Ms. Gillespie said that
that could be done.
Mr. Magnant warned that
the fund would be depleted.
Ms. Gillespie said that
there would be $3,000 left, with an additional $25,000 put in, so that it would
be at $28,000.
Selectman Musselman
said that two sides could be painted one year and the other two the next year.
Ms. Gillespie suggested
that the front be done first.
Ms. Gillespie said that
$15,000 would be added to maintenance and the warrant article eliminated.
Steven Borne asked
whether the money for the painting couldn’t be put in the operating budget.
Selectman Musselman
said that that is what they are going to do, as they are pretty confident that
one of the outcomes will be that they wind up with nothing.
Ms. Gillespie asked
whether $19,000 couldn’t be put back into the capital outlay for the Historical
Structures Report.
Ms. Gillespie said that
she would need to return to the Budget Committee with some items and that they
are aware of that.
Selectman Musselman
asked whether it was their sense that the $12,000 from L-Chip would be
accepted. Editor’s note: The $12,000 is
for a Historic Structures Report for Town Hall, for which a quote for $31,000
was obtained.
Town Administrator
Magnant said that he didn’t know. We
were told that that there were no strings attached. Many of the strings in an earlier document
remain, but I am not sure we got the correct document as we are dealing with a
new individual at L-Chip. It depends on
how you feel about the restrictions. I
was told by the Director that there were no strings, he said.
Selectman Musselman
said that originally the strings related to a $60,000 grant for painting.
Selectman Musselman
asked what the other Selectmen thought regarding whether the Historic
Structures Report would still be done if the grant was not accepted.
It was agreed that
Capital Outlay for Town Hall would be $39,000.
Editor’s note: Apparently that is $20,000 for the wall and
$19,000 for the historic structures report.
The motion to approve $39,000 carried
unanimously.
TD Bank acquisition additional costs (105:46
elapsed)
Selectman Musselman
said that there was $96,760 in additional costs associated with the TD Bank
building. Copies were distributed.
Town Administrator
Magnant said that the security system would not remain. There are cleaning costs. There is some concern that the leach field
may be failing. That will not be known
until the purchase and sale agreement has been signed and an inspection can be
done. A cost of $25,000 was
estimated. Utilities are included. There are closing costs listed. The bank is spending about $5000 a year on
maintenance and repair. The figure for
HVAC servicing at the Public Safety Building was used.
There was discussion
about landscaping. Mr. Magnant said that
that is not currently done around any of the town buildings.
Selectman Jenness said
that they have some shrubs around the building now.
Selectman Musselman said
he just crossed it out.
A property survey was
done in 1994 Mr. Magnant said. I’m not
sure another is needed, he said.
Selectman Musselman
said that if it was a field survey with bearings and distances it should be
fine.
Mr. Magnant said that the
Building Inspector thought that we might want to spend some money to go out and
find the monuments.
Selectman Musselman
said that, as long as a land surveyor has found all of the corners and shown it
on a map and there is a stamped plat we don’t need to go out and find property
corners. We can go out on foot, he
said. He asked Public Works Director
Dennis McCarthy whether he agreed.
Mr. McCarthy said that,
if it is to be bonded, it would depend on what the bond bank wants. They may feel that the survey is too old, he
said.
Selectman Musselman
said that they had been encouraging the Conservation Commission to find all of
their bounds. But, their properties are
in the middle of nowhere and it is hard to know where the bounds are, he said.
Mr. McCarthy referred
to what had happened when they surveyed the Public Works site. Selectman Musselman said, “let’s not.” Editor’s
note: In 2016 it was discovered that a
corner of that site that had been used as a gravel pit had a cloud on the title
as there was a provision in the deed that the land would revert to the prior
owner once all of the gravel was exhausted.
It cost the town $75,000 to remove the cloud from the title.
Mr. Magnant referred to telephone and IT
costs and the need to run a data line from the main terminal at the Public
Safety Building. We need a copier over
there. Snow removal will be taken care
of by Public Works at no cost. New signs
were estimated at $2500. Insurance would
increase slightly. There may be design
costs. A nominal amount was put in there
for that. Remodeling costs were
estimated at $5500, including cubicles, a small amount for new furniture and a
nominal amount for carpeting. There is
no figure for contingency, he said.
Mr. Magnant said that
the roof was replaced in 2014. There are
also two new HVAC units. They have
maintained the building well. The leach
field is the only major unknown, he said.
Selectman Musselman
suggested that $20,000 be budgeted for the leach field, that the landscaping
and survey costs be removed, and the figure reduced to $84,760, or
$84,800. If that is not enough
additional money can be budgeted the following year, he said.
(114:31 elapsed)
The discussion then
turned to bonding. Selectman Musselman
asked whether the $84,800 was under the bonding appropriation or was in
addition.
Mr. Magnant said that
the latter was the case.
There was discussion
about whether it could be done as a single warrant article. Mr. Magnant and Ms. Gillespie said that, as
far as they knew that was permissible.
Selectman Musselman
asked about the impact on the tax rate under the bonding and cash
scenarios. He said that the total cost
over ten years would be about $100,000 more in interest.
Selectman Jenness said
that the decision could change all of the other decisions that people are going
to make. We’ve got a lot on our plate,
she said.
Selectman Musselman
said that the other articles need to come in by January 5, and asked whether
this should be revisited on January 8. Editor’s note: January 5 is the last day for petitioned bond
articles only. He said that all of
the citizens petitioned warrant articles will be in. Editor’s
note: Petitioned articles that do not
involve a bond are not due until January 9.
Selectman Winslow said that the $100,000 for
interest does not sound like money well spent.
Ms. Gillespie said that
the sale of the Trolley Barn has not yet been discussed. That would be included when the revenue is
estimated on the MS-7 form, she said. The number on the tax effect is a raw
number, she said. I gave you a 25 cent
per $1000 number for the outright purchase and a 3 cent number for bonding in
the second year, she said. That is high
as it does not include the revenue.
Selectman Musselman
said that the issue would be taken up on January 8.
Red Mill Lane culvert (119:51 elapsed)
Selectman Musselman
referred to $250,000 for Red Mill Ln. We
have never bonded anything that small, he said.
There was discussion about all of the expenditures to be bonded having
once been combined in a single warrant article.
Mr. Magnant asked Ms. Gillespie whether she had confirmed that, even
though voted separately, they could be bonded together. Ms. Gillespie confirmed and provided an
example.
Selectman Musselman
pointed out that the Recreation garage is not bonded.
He said that they had
already voted for the $200,000 for Shoals View Drive to be bonded and the
Budget Committee agreed. So we should
probably bond the others, he said, but then asked how a cash purchase for TD Bank
could then be rationalized.
Ms. Gillespie said that
she had received an interest rate quotation from the bond bank in the mid twos
to three percent a few months earlier.
The bank rates are now about the same, she said.
Selectman Jenness moved
that the article be recommended for $250,000.
Selectman Musselman seconded. All
were in favor.
Recreation maintenance garage (122:29 elapsed)
Selectman Musselman
said that the Budget Committee had already voted it up. He said that things are out of order this
year.
Mr. Magnant said that
the Board of Selectmen had voted for it, but did not have the wording on the
warrant article. It was revealed that
the wording had changed from a 3/5 vote required to a majority vote required.
The motion to approve
the warrant article carried unanimously.
Editor’s note: The warrant article is for $150,000.
Fire truck capital reserve fund (123:11
elapsed)
Selectman Musselman
said that this changes the one fund to allow it to cover both fire and
ambulance and it puts another $100,000 into it.
Mr. Magnant explained
the warrant articles that were previously presented. I went around and around with the Town
Attorney and we determined that the purpose of the two funds could be changed
this year, and in 2019 the small fund with $11,000 could be discontinued. One warrant article would change the cell
tower fund so that it would be able to be used for ambulances, fire trucks and
related equipment. The fire truck fund
would be changed so it could be used for fire trucks, ambulances and related
equipment.
Selectman Musselman
said that this was far better, but it was still going to be confusing.
There was discussion
about the warrant article to repurpose the cell tower revenue fund to both fire
and ambulance having already been approved.
Selectman Musselman
said that the next article provides for the case where people don’t want to
combine the fire and ambulance funds, so $100,000 can still be put in that fire
equipment fund.
The motion for the
warrant article to put $100,000 in and change the names carried
unanimously.
The motion for the
warrant article to put $100,000 in for fire only carried unanimously.
Selectman Musselman
said that the next warrant article comes out.
Harbor Road Bridge (127:23 elapsed)
Selectman Musselman
asked why this expenditure of $75,000 was being bonded.
Ms. Gillespie said that
it was originally in capital outlay.
Selectman Musselman
said that it would be senseless to bond this amount. It says for remedial repair. It says majority vote and we’ll vote on that
on January 8, he said.
Storm water asset management $30,000 (128:51 elapsed)
It was agreed that this
would be taken up on January 8.
Selectman Musselman referred to this as Dennis’ “goes into,” “goes out
of.”
Library (130:46 elapsed)
Mr. Magnant said that
the Library would be back on January 8. Editor’s note: The Budget Committee approved their budget as
requested on December 21, 2017. Selectman
Musselman said that the Library had not wanted to come that evening. Editor’s
note: See the notes of the December 11,
2017 meeting. A lot of the Library
Trustees were not available for this meeting.
Sale of Trolley Barn (Old Police Station)
Mr. Magnant said that a
decision had not yet been made on the Trolley Barn. Editor’s
note: At the December 11, 2017, at
Selectman Winslow’s urging, the Selectmen had agreed to look into selling that
building, also known as the Old Police Station, to help defray the cost of the
TD Bank building.
The motion to place that as a warrant
article carried unanimously. It was
agreed that it would read “Trolley Barn/Old Police Station.”
2017 encumbrances (132:41 elapsed)
Selectman Musselman
said that they had a long list, which seems longer than normal. He asked Town Finance Director Cyndi
Gillespie whether she had reviewed each item and confirmed that there was a
valid “extender agreement” for each. Editor’s note: Normally, money appropriated in one calendar
year cannot be carried over to the next year if not spent by the end of the
year, although there are exceptions. One
such exception is that, if the Town has entered into a contract requiring that
it spend the money, it may “encumber” the funds, permitting the appropriation
effectively to be carried over.
Appropriations that expire at year end add to the Unassigned Fund
Balance that may to be used to reduce taxation the following year. Also, to the extent that revenues come in
higher than the final estimate made prior to the setting of the tax rate, the
excess will also add to the Unassigned Fund Balance. The fact that over $238,000 is being
encumbered this year does not mean that there will be no 2017 surplus to
augment the Unassigned Fund Balance, only that it will not be as large as it
otherwise would have been. Although
there have been exceptions, the Selectmen have, in recent years, including in
2017, generally voted to apply all of the excess Unassigned Fund Balance
towards tax reduction.
Ms. Gillespie
confirmed. She said that the two largest
ones relate to the Fire Department and Public Works. She said that there are three
categories: Sewer, Recreation and the
General Fund.
Selectman Musselman
noted that there was nothing for the Police Department.
The motion to approve
$195,595.55 in General Fund encumbrances carried unanimously.
The motion to approve
$32,082 in Sewer encumbrances carried unanimously.
The motion to approve a
$10,395 encumbrance to the Recreation Revolving Fund for a fence and guard rail
project carried unanimously.
Highway Department praise for dealing with
ice (136:26 elapsed)
Public Works Director
Dennis McCarthy said that the department employees had been called out eight
times in the past week, not counting Christmas.
They did a good job. We came out
of it without too much damage. I don’t
know how the mailboxes did. We don’t
count those. It was one of the worst
weeks that we’ve ever had to deal with, with the ice. It’s easier when we get a lot of snow, he
said.
Adjournment (137:38 elapsed)
Whereupon
the meeting adjourned at approximately 8:57 p.m.