Members Present: Wendy Ballinger (Chair), David Friedman (Vice-Chair), Joe Armstrong, Al Bangert, Kathy Donahue, Dave Friedman, David Grace, Marla Minier, Scott Roberts, Anthony Vegnani

Others Present: Joseph Norton (Selectman/Advisory Committee Liaison), James Pollard (Selectman), Paul Reidy (Selectman), Richard Agnew (Town Administrator), Laura Harbottle (Town Planner), Ann Burbine (Chairman-Planning Board), Neil Duggan (Building Commissioner), Brendan Lynch (Treasurer-Collector), Susan A. Phippen (Scituate MBTA Representative), Frank Regan (Scituate Harbormaster), Jim Casey (Waterways Commissioner), and Vincent Kalishes (Conservation Agent)

MEETING CALLED TO ORDER
Ms. Ballinger called the meeting to order at 7:05 PM.

ACCEPTANCE OF AGENDA
Scott Roberts moved to accept the agenda. David Friedman seconded the motion and the Advisory Board unanimously agreed to accept the agenda.

Article #2: Proposed Fund Transfers-

Ric Agnew presented an article to transfer $56,000 from available funds held in the “Free Cash” account to the following accounts; a.) Medicare in the amount of $36,000; b.) Unemployment Insurance in the amount of $3,000; c.) Labor Counsel in the amount of $15,000; d.) Library Natural Gas in the amount of $2,5000

Scott Roberts inquired of Ric Agnew if the Town’s Medicare covered all Town staff and asked what the proposed $36,000 increase covered. Ric answered that the system covered all staff hired since 1986 and that the Town had added staff covered by the plan since the annual budget request was made.

David Grace asked if there were particular cases requiring the bulk of the requested increase of $15,000 for the costs of Labor Counsel. Ric Agnew answered yes, that the Carol Perry case would utilize much of the increased amount.

David Friedman inquired as to whether the needs identified could be better funded through use of a portion of the Town’s $90,000 Reserve Fund. Ric Agnew responded that the items presented would not normally warrant a release from the Reserve, but rather a request for Transfer of funds, as per customary practice from past years.

Scott Roberts moved to support Article 2 of the Special town meeting warrant. Joe Armstrong seconded the motion. The motion passed unanimously.

Article 7: Granting of Easements at 280 Driftway-

Ric Agnew presented the article, stating that “Verizon New England, Inc.”, (telephone service provider), and the “Massachusetts Electric Company”, (electric service company) require an easement to relocate certain cables to the cell phone tower at the transfer station required by ongoing MBTA station construction.

Marla Minier asked if the granting of the easement would require any blockage of traffic along the Driftway not already planned. Ric Agnew stated it would not.

Al Bangert inquired if the proposed easement change would affect any other private property including homes in the area. Ric Agnew stated this would not be the case.

Kathy Donahue asked what our cell Tower Rental rate was and how it was paid. Ric Agnew replied that the Town received $3,200 monthly for the Tower space rental, a rate set in accordance with an inter-cell tower company agreement which, in effect, constituted a government-authorized price cooperation.

Scott Roberts moved support for the article. David Friedman seconded the motion. Wendy Ballinger called the vote. The question passed unanimously.

Article 8: Easement at 61 New Driftway-

The article proposes the granting of an easement to “Massachusetts Electric Company” for the relocation of a utility pole approximately 5 feet from its current location, made necessary by current construction activities of the MBTA related to the construction of the Greenbush station.

Marla Minier asked if Massachusetts Electric or the MBTA requested the easement. Ric Agnew answered that the easement was being requested by Mass. Electric, but in cooperation with the MBTA.

Scott Roberts inquired if there are Town Easements in place for all utility poles as a standard practice. Ric Agnew answered in the affirmative.

Marla Minier moved support for the article. David Grace seconded the motion. The motion passed unanimously.

Article 1: A proposal to grant the Board of Selectmen the authorization to acquire for open space and recreational purposes a parcel of land located at 119 Edward Foster Road and known as “The Webb Boatyard” aka “Young’s Boatyard (The boatyard).

Joe Norton provided background as to the formation of the proposal and the Selectman’s request made to “The Trust for Public Land” (the Trust) to assist the Town in initial deal structuring and negotiation. The Trust is a nonprofit institution dedicated to facilitating the preservation of open space and recreational land for public use. Mr. Norton expressed appreciation for the Trust’s assistance to date and for the leadership provided by Valerie Talmage, the Trust’s Project Executive for this effort.

Valerie Talmage presented the proposal and fully described the history of the proposed transaction and the process by which the proposed deal was finally structured for the Town’s consideration. Financial projections were provided and conceptual sketches of the proposed improved boatyard area were displayed. In addition a breakdown of the funding was provided, indicating that $1.2 million dollars would be provided as a grant from the Community Preservation Committee (CPC) fund, with the remaining $3 million dollars to be provided from the proceeds of a special purpose bond issuance to be floated by the Waterways Commission. The bonds would then be repaid on a payment schedule from projected Net Operating Income to be realized from the continued operation of the property by the Waterways Commission as an active marina, providing much the same services as the current boatyard in the way of boat slip and boat storage rentals. It was also pointed out by the proponent that most of the requested CPC funds were being indirectly provided through an exchange of MBTA remediation funds and CPC funds.

Ms. Talmage stressed the timing involved and that the currently executed sales agreement between the seller and the Trust was due to expire in November of 2004. In addition, it was pointed out that the appraisal assumed current use and not conversion to any other type of property (condos, for instanced were mentioned), but that an assumption was made that the number of moorings could be increased from the current 44 to a total of 66 slips. Furthermore, Ms. Talmage explained that the Waterways Commission upon acquisition would assume the current boat storage lease.

Questions-

At the conclusion of the presentation provided by Valerie Talmage, Wendy Ballinger explained to all attendees that questions would first be asked by members of the Advisory Committee, followed by the Public and asked everyone’s patience, reminding the room that the vote was not to be taken on this article until the June 10, 2004 meeting.

Kathy Donahue inquired if there were any Chapter 91 Environmental Consent Orders outstanding in regard to environmental compliance for the property. Vincent Kalishes responded that there was an outstanding Consent Order with the DEP involving the proposed redeployment/redesign of the slip floats but that all parties were cooperating. Kathy Donahue further asked if the costs of this and possible future Chapter 91 compliance had been recognized within the projections provided for our review. In addition, Kathy Donahue inquired if the property was able to install new septic capacity at the site. Valerie Talmage responded that the property was restricted to tight tank use.

Joe Norton then pointed out that despite the current zoning and location of the property within the “Flood Plain and Watershed Protection District” overlay district, experience had shown that this was not a guarantee that legal actions by the developer would not succeed in gaining development approval in the future and that this effort would protect against such an eventuality and add to the open space of the Town in a prime Harbor location.

Valerie Talmage added to Mr. Norton’s comments by restating the fact that the outstanding expiration date for the sales contract between the Trust and the property owner would expire on November 1, 2004, requiring quick action. In addition, Valerie stated that the property owner had announced that he had other offers should this transaction fall through.

Scott Roberts asked about the timing of the proposed bond and when the first payment would be due.

Ric Agnew answered that interest only payments would be made for the first year of the bond with the first principal payment due in February or March should we successfully close the transaction at the end of 2004 or early 2005.

Scott Roberts asked for further description of the proposed recreational use of the land. Valerie Talmage responded by stating the Town recreational boating program could be moved to the site, with small boat storage provided. In addition, a path would be constructed at the waterfront to be designed in the future.

Jim Casey further responded that the Waterways Commission had already set up a subcommittee to help identify and develop more specific ideas regarding the future recreational use of the property.

Ann Burbine stated that the expansion of recreational opportunities and acquisition of open space near the waterfront and harbor was a standing part of the Town’s Master Plan and that the availability of the property represented an opportunity that may not come again if we wait. In addition, Ms. Burbine agreed with Mr. Norton’s assessment that legal action by the property owner, if pursued to its end, could result in some unanticipated development use of the property in the future.

Frank Regan was asked to further describe the possible expansion of the mariner in the number and size of boat slips for rent. Mr. Regan stated that the creation of some 26-foot slips had been proposed in addition to the full size and dingy slips.

Kathy Donahue asked if the Town had considered any other form of ownership, including purchase of development or easement rights for portions of the property, rather than buying the entire parcel. Mr. Regan did not have any background on this issue.

Kathy Donahue also expressed concern that capital improvements needs had been slighted at an estimated $35,000 and had not been considered adequately in the projections presented. Furthermore, Ms. Donahue asked why the CPC fund should be used at all if the Waterways Commission was predicting a profit on the operation in five to six years after purchase.

Ric Agnew responded that without the $1.2 million initial capital contribution by the CPC, the debt service projections would go up dramatically.

Kathy Donahue then asked again why we were buying the land rather than just easement rights.

Scott Roberts asked if we should borrow $3 million of the total purchase price and if there was any concern over the use of CPC funds. Mr. Roberts agreed that we should reconsider the projected and quite low cost of needed capital improvements, noting that the existing buildings were in poor condition.

Mr. Grace asked why the Town had not purchased the property for $1.65 million dollars when it was being actively marketed several years ago. In addition, Mr. Grace asked to see the projected expenses within the appraisal, which had not yet been made available to the Advisory Committee for review, and noted that there did not appear to be any expenses considered within the proposed amortization schedule presented, calling into question any projection that the Waterways Commission would meet the projected carrying cost of the boatyard within six years after acquisition.

Al Bangert briefly added his agreement with Mr. Grace’s position, stating that the numbers did not seem to connect between the amortization schedule and operating projections provided to the Committee for review.

Joe Norton agreed to refine the numbers in cooperation with representatives from the Trust prior to next week’s meeting and invited the participation of Advisory Committee representatives.

David Friedman noted that the use of the special town meeting process to purchase the property was of concern given the size of the purchase and that the question would have been more appropriate for inclusion with the annual Town Meeting or Fall Special Town Meeting warrant, especially in light of the November 1, 2004 Sales Contract expiration date. Mr. Friedman noted that the Committee had not yet seen an appraisal and that there were only two weeks of review prior to a vote at the June 21 Special Town Meeting. Mr. Friedman also asked if we could charge higher fees for the slips than those projected and if it was possible to have the Town itself own and operate the property, and thereby receive the revenues for the operating budget rather than for Waterways.

Mr. Agnew responded that court precedent limits the charging on any fees higher than those for similar slips rented by the Commission and that the purchase of the property by the Commission offered legal and structural advantages relating to the proposed bond issuance.

Tony Vegnani stated his doubt regarding the alternative offer on the property of $5.2 million and asked why the seller would opt to sell to the Trust for only $4.2 million.

Valerie Talmage answered that the sales contract with the Trust had already been executed prior to the seller’s receipt of alternative offers which he considered “back-up offers” only.

Fred Dauphinee, a fisherman, noted that certain Federal Funds may be available to assist in the purchase but was not sure of further details.

Joe Armstrong stated his concern that the price was far too high, and that there was insufficient time granted to the Committee for review of the transaction given its complexity, agreeing with Mr. Friedman that the question would have been more appropriately included within the list of Fall Town Meeting Warrants. In addition, Mr. Armstrong stated his objection to the proposed use of CPC funds for the proposal in light of the $2.5 million speculative capital gain that would accrue to the seller if the transaction were closed.

Al Bangert stated his support for the proposal and his belief in the benefits to the Town should the property come into the public domain. Mr. Bangert then offered to assist the Trust in combining some of the financial projections presented into a more comprehensive and unified picture of the transaction to include expenses, debt service and capital needs.

Mr. Norton and Valerie Talmage accepted Mr. Bangert’s offer of assistance.

Marla Minier asked if there were any oil or other fuel tanks still buried at the property.

Mr. Agnew stated that two tanks had been previously removed from the property.

Ms. Minier then asked if it would be possible for the Waterways Commission to accept the $1.2 million from the CPC fund as a loan, rather than grant, to be repaid to the CPC from positive cash flow in future years flow from the Marina operation.

Mr. Agnew stated his belief that a loan could be granted to the Commission and repaid to the CPC if the Town decided to do so.

Anthony Vegnani stated that he found insufficient detail in the cost projections and that he looked forward to the updates to be provided at next meeting.

Wendy Ballinger noted that hers would be the last of the first round questions from Advisory Committee and that she would then open the floor to comment. Ms. Ballinger stated her support for the goal of Town ownership of the property but that she shared her Committee member’s concern about the timing of the request, noting that we had not yet received the appraisal upon which the purchase price was supported. Ms. Ballinger then asked why the proposal had not come before the Capital Planning Committee considering the size of the transaction being proposed and asked why the proposal could not have come up for a Fall Special meeting rather than June 21, 2004.

Susan Phippen noted that she had the appraisal and would be happy to loan her copy to the Committee. Mr. Agnew and Mr. Norton both stated their belief that a Waterways Commission land acquisition does not come under the jurisdiction of the Capital Planning Committee.

David Friedman inquired why this was the case when even purchases as small as vehicles are subject to review by the Capital Planning Committee.
Scott Roberts asked why the same Waterways Commission had agreed in front of the Spring 2004 Advisory Board review of their annual budget to bring future proposed capital projects before the Capital Planning committee was now presenting what appeared to be a large capital purchase and improvement.

In response to Mr. Friedman and Mr. Roberts, Ric Agnew and Joe Norton both agreed that it is a jurisdiction issue and that there was no technical reason why the proposal needed to face review by the Capital Planning Committee.

David Friedman stated that the Capital Planning Committee is the last opportunity before presentation to the Advisory Board to provide an early notification to the citizens and that we could have used such advance notice in this instance considering the size of the transaction.

Kathy Donahue asked if there was any ongoing effort by the Planning Board to identify in advance potential lots for purchase along the harbor front so we can buy them before such a significant retail markup and if it was possible to gain permits for anything other than tight tank septic.

Neil Duggan responded that only tight tanks could be used at the site.

Anne Burbine restated her position that even though the site was currently restricted, well funded attorneys working for developers could force through unanticipated construction at the site at some future time.

Paul Reidy noted the importance of the parcel to the Harbor waterfront and that we were now entertaining early discussions for the potential purchase of an adjoining Harbor front parcel and agreed with Ms. Donahue that early identification of parcels of interest makes sense for the Town.

Scott Roberts asked what the sources were for the proposed $1.2 million contribution from the CPC.

Ric Agnew responded that of the $1.2 million, $760,000 was coming from MBTA remediation funds by swapping the funds to purchase the Moncy property from CPC to MBTA open space money; about $200,000 from funds currently available to the CPC, and the remainder from state matching CPC funds.

Scott Roberts asked if such a swap would require voter approval.

Ric Agnew stated that the funding mechanism needed would be presented as an item on the warrant in the Special Town Meeting in the Fall.

David Friedman inquired if the bonds were General Obligation bonds that would have to be paid from the general levy should income projections for the marina not be met.

Mr. Agnew responded that General Obligation bonds would present that possibility, however, that they still made sense due to the interest rate advantage of General Obligation Bonds over Private Activity bonds.

Brenda Lynch stated the interest rate difference between these two types of bonds could be as high as 2 percent.

Joe Armstrong asked why the current owner had not yet paid year 2003 and 2004 Real Estate taxes on the property.

Ric Agnew stated that any such outstanding taxes would have to be paid in full with any late fees prior to any close of sale for the property.

Joe Armstrong asked why there had been no formal action by the Treasurer/Collector to collect the delinquent amount and when any such action would be scheduled in accordance with general procedure.

Brendan Lynch stated that formal proceedings for collection of late taxes for 2003 would not normally be scheduled until September 30, 2004.

Anthony Vegnani inquired if the property could be sold for a price over that supported by an appraisal.

Mr. Norton responded that the $4.2 million dollar price had been negotiated prior to completion of the appraisal.

Wendy Ballinger stated her continued concern for the low figure provided for proposed capital improvements and asked that the Trust work on that figure prior to next week’s Advisory Committee meeting. Ms. Ballinger noted the poor condition of the existing Red Barn building as one factor requiring another look at needed capital improvements.

Neil Duggan commented that if the Red Barn were to be improved for use as an area of public assembly, dramatic improvements would have to be made in order to meet current code. If, however, the building were to continue in its current use as a marina support building, this would not be the case.

Paul Reidy noted that the Red Barn does not even have a working bathroom facility; something that should be considered should the property come into public use.

Wendy Ballinger stated that such capital improvements, as well as more detailed expense and debt service projections needed to be included within a more comprehensive set of projections for the property and that she and Al Bangert looked forward to assisting in this regard.

Scott Roberts moved to adjourn the Meeting

Al Bangert seconded and it was voted unanimously.