Town Council - Ways & Means Committee

Braintree Town Council MEMBERS Joseph Reynolds, Chairman Committee of Ways & Means Julia Flaherty, Vice-Chairwoman One JFK Memorial Drive Elizabeth Maglio, Member Braintree, Massachusetts 02184 MINUTES Tuesday, September 27, 2022 A meeting of the Committee of Ways & Means was held Remote via Zoom, on Tuesday, September 27, 2022 at 7:00p.m. Councilor Reynolds was in the Chair. Clerk of the Council, Susan Cimino conducted the roll call. Present: Joseph Reynolds, Chairman Julia Flaherty, Vice-Chairwoman Elizabeth Maglio, Member Meredith Boericke, Council President (ex-officio) Also Present: Nicole Taub, Chief of Staff/Town Solicitor Ed Spellman, Finance Director James Arsenault, DPW Director Lou Dutton, Waterworks Superintendent Helen Gordon, Environmental Partners Sarah Price, Environmental Partners September 27, 2022 Ways & Means Committee 1 of 7 Approval of Minutes • April 19, 2022 MOTION: to approve the Minutes of April 19, 2022. Motion: by Councilor Flaherty to approve Minutes of April 19, 2022 Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) Old Business • None New Business • 22 050 Mayor: Motion to accept M.G.L. c. 64N s. 3 (Local Tax Option) or take up any action relative thereto (Public Hearing at full Council October 3, 2022) Nicole Taub explained as was discussed during the Town Council's review of the proposal to modify the Town's existing Zoning Ordinances to allow for certain non-retail marijuana uses, including cultivation and delivery, there are two options for the Town to collect revenue from a marijuana establishment: a host community agreement and tax revenue. In order to impose a local sales tax on the sale or transfer of marijuana products, the Town must first accept M.G.L. c. 64N s. 3, which states, (a) A city or town that accepts this section in the manner provided in section 4 of chapter 4 may impose a local sales tax upon sale or transfer of marijuana or marijuana products by a marijuana retailer operating within the city or town to anyone other than a marijuana establishment at a rate not greater than 3 per cent of the total sales price received by the marijuana retailer as a consideration for the sale of marijuana or marijuana products. The marijuana retailer shall pay the local sales tax imposed under this section to the commissioner at the same time and in the same manner as the sales tax due to the commonwealth. (b) All sums received by the commissioner under this section shall, at least quarterly, be distributed, credited and paid by the treasurer and receiver­ general upon certification of the commissioner to each city or town that has accepted this section in proportion to the amount of the sums received in that city or town. Any city or town seeking to dispute the commissioner's calculation of its distribution under this subsection shall notify the commissioner, in writing, not later than 1 year from the date the tax was distributed by the commissioner to the city or town. (c) This section shall take effect in a city or town on the first day of the calendar quarter following 30 days after its acceptance by the city or town or on the first day of a later calendar quarter that the city or town may designate. September 27, 2022 Ways & Means Committee 2 of 7 Once accepted, the Town becomes eligible to impose a local sales tax at a rate not greater than three percent (3%) of the total sales price received as consideration for the sale of marijuana or marijuana products. The taxes on delivery transactions will be returned to Braintree for those sales generated by a business operated to do business here, regardless of where the product is delivered. The tax will then become effective on the first day of the calendar quarter following 30 days after its acceptance. We are looking for a vote to accept the statute. Chairman Reynolds asked for a Motion to be read. Councilor Flaherty read the following Motion for favorable recommendation to the full Council Order 22 050: MOTION: That the Town accept Massachusetts General Laws Chapter 64N, Section 3, which provides for a local sales tax upon sale or transfer of marijuana or marijuana products by a marijuana retailer operating within the city or town to anyone other than a marijuana establishment at a rate not greater than 3 per cent of the total sales price received by the marijuana retailer as a consideration for the sale of marijuana or marijuana products. Motion: by Councilor Flaherty to approve Order 22 050 Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) • 22 056 Mayor: Request for Supplemental Appropriation - Tri Town Water Treatment Plant or take up any action relative thereto (Public Hearing at full Council October 3, 2022) Nicole Taub explained earlier this year, the Tri Town Water District (the "District") on behalf of Braintree, Randolph and Holbrook, applied for financial assistance through the Drinking Water State Revolving Fund Program for the Tri Town Regional Water Treatment Plant Project. Shortly thereafter, the District was able to initiate the public procurement process for the construction of the new facility. Filed sub bids were due on August 22, 2022, with bids from pre-qualified general bidders due on September 16, 2022. As you may recall, an Opinion of Probable Project Costs ("OPPC") was prepared by an independent construction estimator based on the most recent detailed design in November 2021 for inclusion in the 90% design submission. At the time, the total estimated cost for the design, construction and construction phase engineering services totaled $78,761,618 (excluding the subaqueous transmission mains construction that will be funded by Randolph and Holbrook), with a total cost of $39,380,809 to Braintree. That amount has been appropriated as follows: • 18-005 $1,700,000 • 18-033 $23,300,000 • 20-029 $8,700,000 • 21-062 $5,680,809 September 27, 2022 Ways & Means Committee 3 of 7 As noted above, general contractor bids were due on Friday, September 16, 2022. At a public bid opening, held at 12 pm at Town Hall on the same date, submissions from two (2) bidders were opened. The following is a summary of the proposals: Company Filed Sub Bid General Total WTP Bid General Total Bid Price Contractor Bid Price Contractor Price Price-WTP Bid Price- Subaqueous Transmission Mains CH $20,467,410 $84,786,825 $105,254,235 $4,231,000 $109,485,235 Nickerson WALSH $20,748,434 $78,570,000 $99,318,434 $4,259,500 $103,577,934 Construction As you can see, both bids received are higher than the estimated costs from the November 2021 OPPC. A comparison of the OPPC versus contract totals is attached for your review. As a result of the increase in project costs Braintree, along with Randolph and Holbrook, must now borrow additional funds in order to certify that all financial appropriations have been made for the entire project. In order to cover its share of the additional costs, with a 5% contingency of construction costs included, the Town must borrow an additional $19,345,041.35. The next deadline associated with the application to the Drinking Water State Revolving Fund Program for the Tri Town Regional Water Treatment Plant Project is September 30, 2022; however, due to the timing of the bid openings and need for additional appropriations the District has requested a brief extension of time to submit the certifications regarding financial appropriations. Councilor Flaherty asked about the borrowing. Ed Spellman stated we have to borrow for the full amount but then we will receive grants or other funds would reduce the ultimate borrowing for Braintree. Councilor Flaherty asked about ARPA funding. Have we made an application for help with constructing our water treatment plant. Nicole Taub stated we have not. The current requests submitted to the county have been for revenue replacement, educational disparities, mental health support and police services. This is for FY22. Councilor Flaherty asked if the design has been scaled back. Helen Gordon stated we were tasked as the owner project manager to review a previous design that was prepared in 2010. We looked at architectural concepts that is not required for a municipal infrastructure type facility. We did some significant re-arranging of the layout and reduced space for personnel and staff. It is very conservative. September 27, 2022 Ways & Means Committee 4 of 7 Councilor Maglio asked about the timeline. Helen Gordon said the next two weeks are critical in order for us to meet those submission deadlines. President Boericke asked if this Supplemental gets approved are we ready to hire a contractor. Do we foresee any more delays. Nicole Taub stated we have the two bid submissions. As long as we make the award within 30 days, so October 16th we don’t have any reason to anticipate further delay there. President Boericke asked why the delay in getting this done since 2010. Helen Gordon stated it began before 2010 but the discussions around the three towns and the capital costs. In the 1800s legislation was drawn up for the three communities to share Great Pond as their water supply. Costs were split 1/3rd each. Many years discussion about the equity of that as the three communities grew disparate in terms of their size. Between 2010 and 2018 when Environmental Partners was officially hired for the OPM position for this project was when those negotiations were happening around how much each community would be paying. It was 2018 when draft agreements and approach of distributing of any capital cost occurred. Chairman Reynolds asked for a Motion to be read. Councilor Flaherty read the following Motion for favorable recommendation to the full Council Order 22 056: TOWN OF BRAINTREE, MASSACHUSETTS, IN TOWN COUNCIL ORDERED: That the Town of Braintree appropriates Nineteen Million Three Hundred Forty Five Thousand Forty One Dollars and Thirty Five Cents ($19,345,041.35) to pay the Town's share of the costs of constructing, equipping and furnishing the Tri Town water treatment plant, which is to be undertaken with the Towns of Randolph and Holbrook, and for the payment of all costs incidental and related thereto, which amount shall be expended in addition to all other amounts previously appropriated by the Town for this project. To meet this appropriation, the Treasurer, with the approval of the Mayor, is authorized to borrow said amount under and pursuant to G. L. c. 44, §7(1), §8(4) or pursuant to any other enabling authority, and to issue bonds or notes of the Town therefor. The amount authorized to be borrowed by this order shall be reduced to the extent of any grants received by the Town on account of this project. All or any portion of the amount authorized to be borrowed by this order may be obtained through the Massachusetts Clean Water Trust in accordance with Chapter 29C as amended, of the General Laws. Motion: by Councilor Flaherty to approve Order 22 056 Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) September 27, 2022 Ways & Means Committee 5 of 7 • 052 22 Council President: Town Auditor Contract Discussion or take up any action relative thereto Chairman Reynolds stated in 2023 the contract for CLA expires (April 23, 2023). As a committee we are to discuss what we would like to do. We have the option to go out for an RFP for a new Town Auditor or renew the current Town Auditor and ask for a new contract proposal from CLA. It is helpful to discuss the course of action we would like to recommend to the full Council. President Boericke stated the Town Auditor is the only main hiring decision we have. They report to the council and provide a level of oversight for us. We have a fiduciary responsibility to our constituents and the taxpayers in town to make sure that we are doing our due diligence with this appointment. Chairman Reynolds stated provided for you are some discussion points. One item is rates. We all want to make sure we are not spending beyond our means. The services we receive is an important standard to be met. Councilor Flaherty stated I am very comfortable with CLA. Our Town Auditor is thorough and tells you what he sees. He has given this Council valuable tools for use to evaluate our financial position. One thing I appreciate about CLA is our Town Auditor, Shawn McGoldrick is part of a team and the team works together to help provide services to Braintree. You can replace this but the expertise won’t be there as much at first. CLA was willing to engage in negotiations in good faith in 2020. I would hope they would be willing to engage in negotiations again in good faith. My inclination is to stay with Clifton Larson Allen. Councilor Maglio stated I find our current Town Auditors to be extremely helpful, extremely professional, detail-oriented, full of answers for my many questions. It is right to do your due diligence and be as thrifty as you can be with the money of the residents of the town. Given the period of years there was some turn-over and not that satisfied with other Town Auditor consultants. It is a relatively short amount of time before we thought of doing any kind of RFP and maybe even renewing again. Chairman Reynolds stated the level of information and the timeliness of information has had opportunities to significantly save money and to allow those decision makers to make key business decisions. There is always a dependency and that is costs. What are the rates going to be. Looking at the previous contract; this is a significant firm and the rates did seem a bit low for the going market. Did CLA come in at a lower rate to show give them the opportunity to show you the value that they have. I think it is a real likelihood the firm will be looking to up their rates. At this point I would be inclined to stay with CLA over the next three years. It was mentioned if a bid for RFP was to go out the Council would need to decide by December 2022 to give ample time before the contract of CLA expires. Chairman Reynolds stated I would like to continued to discuss at a future W&M meeting and make an announcement by December 2022 to the full Council on what we decide to do whether reappoint CLA or go out to bid a RFP. September 27, 2022 Ways & Means Committee 6 of 7 Councilor Flaherty stated she recollects the negotiations with CLA last time. There were 5 members on the Ways & Means committee. Four were brand new Council members. Councilor Ryan started discussions and asked CLA to lower the proposed price, they agreed to lower their price, we accepted it and that is how it went. It was very straightforward. It did not take a lot of time. I never regretted it. Chairman Reynolds stated let’s schedule another meeting to discuss this further. Chairman Reynolds asked for a Motion to Table this item to a future meeting of this committee. Councilor Flaherty stated a Motion to Table item 052 22 to an upcoming Ways & Means meeting Motion: by Councilor Flaherty to Table item 052 22 to an upcoming meeting Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) It was unanimously voted to adjourn the meeting at 8:22p.m. Respectfully submitted, Susan M. Cimino Clerk of the Council Documents provided for Meeting • Minutes of April 19, 2022 • 22 050 Mayor: Motion to accept M.G.L. c. 64N s. 3 (Local Tax Option) or take up any action relative thereto (Public Hearing at full Council October 3, 2022) • 22 056 Mayor: Request for Supplemental Appropriation - Tri Town Water Treatment Plant or take up any action relative thereto (Public Hearing at full Council October 3, 2022) • 052 22 Council President: Town Auditor Contract Discussion or take up any action relative thereto September 27, 2022 Ways & Means Committee 7 of 7