City Council

HEARING BEFORE THE CITY COUNCIL, NOVEMBER 22, 2010 Hearing opened at 6:45 P.M. with Councillor Rowlands, Chair of the Legal Affairs Committee, presiding. All members were present. Councillor Dombrowski arrived late. The following ORDINANCE was the subject of the hearing: Relative to amending Chapter 13, Section 13-34 of the Revised Ordinances entitled “No Parking on Certain Streets” by inserting “Mechanic Street (south side) outside the entrance to the business located at 91 Mechanic Street.” (Legal Affairs - Petition 16-11) No one in the audience spoke in favor or in opposition of this Ordinance. No Councillors spoke. HEARING ADJOURNED AT 6:46 P.M. _______________________________ Lynn A. Bouchard, City Clerk And Clerk of the City Council HEARING BEFORE THE CITY COUNCIL, NOVEMBER 22, 2010 Hearing opened at 6:46 P.M. with Councillor Salvatelli, Chairman of the Finance Committee, presiding. All members were present. Present at the hearing was the Chief Assessor Walter Poirier and Assessor Christopher Paquette. The following COMMUNICATION was the subject of the hearing: C-11 Relative to determining the factor to be used in setting the Fiscal Year 2011 tax rate. Councillor Salvatelli said pay close attention to the worth of the houses in the last couple of years and the significant drop in terms in post valuation. He said he noticed between 2008 and 2011 it’s about a $40,000.00 drop average in a home.  2 HEARING BEFORE THE CITY COUNCIL, NOVEMBER 22, 2010, continued Mr. Poirier said that is roughly true. He said three years ago and in 2007 the value of the average single family home was $276,000, in 2009 we were at $267,000 and now we are down to $225,000. That is close to a $50,000.00 drop or better. He said in the last three fiscal years the Assessors had to remove $650,000,000.00 in value out of the City. He reminded the Council that these 2011 values are based on calendar year 2009 sales. He said nothing is current and has always been behind. Mr. Poirier said the five classes are Residential, Open Space, Commercial, Industrial and Personal Property. These are the five classes utilized in determining value. He said this year was extraordinary. We were fortunate enough to achieve $837,488.00 in new growth this year. The new growth is due exclusively to personal property with the bulk due to utilities and telephone/ telecom companies. He said there is one brand new entity that is assessed this year that has changed its corporate structure which rendered itself taxable in full on all its personal property. It has changed from a manufacturing corporation to an LLC. He said this particular entity has $12,700,000.00 in value that is taxable after all their personal property is depreciated. He said this has never happened before. Mr. Poirier said single families roughly dropped 5.5% this year, which means we took $103,000,000.00 out of the single family class. Condominiums dropped about 3% which is amazing. He said two and three families dropped 18+%. Multi families consisting of 4-8 and 9 plus units dropped about 10%. He said land dropped about 9%. Overall the class dropped about 8-9%. He said back on 2004, 2005 and 2006 there was a lot of sub-prime lending and what has occurred in two, threes and multi- families in 2009 is the market dropped right out from underneath them. He said back in 2004 through 2006 the three family flat in French Hill was selling for $360,000.00 and you would be lucky to get $180,000.00 now. Mr. Poirier said Commercial dropped 9.2% and Industrial dropped 13% in value. He said we are taxing based upon what the leasing price would be and what the per square price would be. These rents are being renegotiated. He said the income streams coming into the owners have dropped. The ability to borrow money isn’t there so when they go to borrow the overall rate is higher. He said the vacancy is greater as seen in our mall. The largest Industrial property is Tucker Manufacturing and it is vacant. Councillor Salvatelli said he noticed that the single family growth in 2010-2011 was only 15 houses and 3 condo units. Mr. Poirier said that is correct. He said the new entity is Georgia Pacific on Hamilton Street and the #1 top taxpayer is Walton Whitney which is the Whitney Field Mall. Councillor Marchand said he has concerns regarding the drop in the housing values. Councillor Marchand asked Mr. Poirier to talk about abatements. Mr. Poirier said abatements were down this year. He said they had 320 requests this year compared to 400 plus requests the year before. We have limited cases in the Appellate Tax Board. He said for the last ten years we have had someone out in the field doing 1500 units a year measuring and listing. He said the entry rate is about 65% so that means there is 35% we are not getting into and at that point they have to estimate. Councillor Rowlands asked what is the shift in terms of the percentage of residential vs. business. Mr. Poirier said it is about 77.8% to 22.2%. He said it is pretty much what it has been. It was 78.2% last year. Councillor Rowlands said in terms of the Mall how much value has it lost? Mr. Poirier said it was at $68M originally for the multiple parcels which is the mall itself, several small vacant parcels and the parcel where Market Basket is. This year it is $52M, a drop of $9M this year and has dropped $16M since the original assessment. Councillor Rowlands said he always looks at Home Depot and they went from $7M to $6M which in terms of the other Commercial places was a little bit larger than Kohls and Target. Mr. Poirier said those are different type of stores. Kohl’s and Target are not considered “big box”. They are department stores. Councillor Rowlands said so it’s not the location of Home Depot that brought the Mall amount down. Mr. Poirier said no, the location does not have a part in this. Councillor Chalifoux Zephir said reading from the note on page 21 from the handout that was distributed prior to the meeting, it says for every $1.00 reduction in the residential rate $3.55 is added to the Commercial/Industrial personal rate. Why is that? Mr. Poirier said the base rate of 1.000% is $15.41. In order for you to remove a dollar and go from $15.41 to $14.41 the shift is $1.23 which is your dollar difference. Your rate would be $18.96 for the CIP with the shift which means you are moving a dollar off of the residential. So, $15.41 from $18.96 is your $3.55. Councillor Freda said the sad part is that it is not going to get any better for about 4-5 years. Mr. Poirier said this is the worse he has seen it. Councillor Nickel thanked Mr. Poirier for a well job done. Mr. Edward Gagne, 29 North Meadow Road, said he read an article that said in this country since 2000 the average ownership span for commercial property is only 4 ½ years. He said if you think about it, it is pretty short term. He said here in Leominster, you have never taken the short term outlook. It has always been the long term. He thanked the Council, Administration, Department Heads and Staff for a fine job done over the years.  3 HEARING BEFORE THE CITY COUNCIL, NOVEMBER 22, 2010, continued Mr. David McKeehan, President of the Chamber of Commerce, said he looks forward to this evening and this Council and administration has managed the City well. Councillor Rowlands read an email that he received regarding the picture updates for the Assessor’s database. Councillor Salvatelli said he has been getting a lot of calls from Ward 3 and Ward 4. He asked if those wards were being evaluated. Mr. Poirier said Ward 3 just finished and Ward 4 is being done. He said the person has all his credentials. HEARING ADJOURNED AT 7:36 P.M. _______________________________ Lynn A. Bouchard, City Clerk And Clerk of the City Council REGULAR MEETING OF THE CITY COUNCIL, NOVEMBER 22, 2010 Meeting was called to order at 7:30 P.M. Attendance was taken by a roll call vote; all members were present. The Committee on Records reported that the records through November 8, 2010 were examined and found to be in order. The records were accepted. A recess was called at 7:36 P.M. to hold a public forum. The meeting reconvened at 7:46 P.M. A motion was made to go into Executive Session under the provision of Chapter 39, Section 23B of the Massachusetts General Law. Council President Nickel said the purpose of the meeting is to review the litigation status report with Attorney John Giorgio. Vt. 9 “yeas”. Recessed at 7:48 P.M. The meeting reconvened at 8:47 P.M. The following COMMUNICATIONS were received, referred to the FINANCE COMMITTEE and given REGULAR COURSE. C-28 Relative to the appropriation of $54,000.00 to the Sanitation and Drainage Expense Account; same to be transferred from the Excess and Deficiency Account. C-29 Dean J. Mazzarella, Mayor: Request the Snow and Ice Expense Account be authorized to incur liability and make expenditures in FY 2011 in excess of available appropriations in the amount of $250,000.00 as authorized by Massachusetts General Law Chapter 44, Section 31D. The following PETITION was received, referred to the LEGAL AFFAIRS COMMITTEE and given REGULAR COURSE. 24-11 Susan Chalifoux Zephir: Amend Article 1, Section 16-2 of the Leominster Municipal Code to suspend any percentage increases in the City Council Salaries for calendar year 2012. The following PETITION was received, referred to the LEGAL AFFAIRS COMMITTEE, given REGULAR COURSE and referred to the Planning Board, the Conservation Commission, the Department of Public Works and the Director of Inspections and the Board of Health. A hearing was set for December 13, 2010 at 7:00 P.M. Vt. 9 “yeas” 25-11 Bruce Williams, President of Villa Del Rio Condominium Trust: Grant a Special Permit for work within a flood plain to replace an existing catch basin with an outlet to Rockwell Pond and install a sub-drain system to alleviate ongoing flooding issues of the existing site and building located at 144 West Street. . The following PETITION was received, referred to the WAYS & MEANS COMMITTEE and given REGULAR COURSE. 26-11 Dean J. Mazzarella, Mayor: Request Edward Cataldo be exempt from the provisions in M.G.L. Chapter 268A (20B) Conflict of Interest as he is currently employed by the City of Leominster and will be taking on a position at the Recreation Department as well.  4 REGULAR MEETING OF THE CITY COUNCIL, NOVEMBER 22, 2010, continued The following APPOINTMENTS were received, referred to the WAYS & MEANS COMMITTEE and given REGULAR COURSE. Office of Emergency Management – EMS Unit – Michael Rathier Rescue Unit – Charles Nelsen Upon recommendation of the FINANCE COMMITTEE, the following COMMUNICATION was GRANTED to adopt a Factor of 1. Vt. 9 “yeas” C-11 Relative to determining the factor to be used in setting the Fiscal Year 2011 tax rate. Upon recommendation of the FINANCE COMMITTEE, the following COMMUNICATION was GRANTED and ORDERED. Vt. 7 “yeas”. Councillors Cormier and Nickel abstained due to a possible conflict of interest. C-15 Relative to the appropriation of $100,000.00 to the Fire Department Overtime Account; same to be transferred from the Excess and Deficiency Account. ORDERED: that the sum of One Hundred Thousand Dollars ($100,000.00) be appropriated to the Fire Department Overtime Account; same to be transferred from the Excess and Deficiency Account. Upon recommendation of the FINANCE COMMITTEE, the following COMMUNICATIONS were GRANTED and ORDERED. Vt. 9 “yeas”. C-16 Relative to the appropriation of $3,200.00 to the Recreation Department Expense Account; same to be transferred from the Emergency Reserve Account. ORDERED: - that the sum of Three Thousand Two Hundred Dollars ($3,200.00) be appropriated to the Recreation Department Expense Account; same to be transferred from the Emergency Reserve Account. C-17 Relative to the appropriation of $105,400.00 to the Recreation Department Capital Outlay Expense Account; same to be raised by Fiscal Year 2011 Revenue. ORDERED:- that the sum of One Hundred Five Thousand Four Hundred Dollars ($105,400.00) be appropriated to the Recreation Department Capital Outlay Expense Account; same to be raised by Fiscal Year 2011 Revenue. RE: Amount of State Grant Award for Fournier Field playground restoration. C-18 Relative to the appropriation of $49,600.00 to the Recreation Department Capital Outlay Expense Account; same to be transferred from the Excess and Deficiency Account. ORDERED: - that the sum of Forty Nine Thousand Six Hundred Dollars ($49,600.00) be appropriated to the Recreation Department Capital Outlay Expense Account; same to be transferred from the Excess and Deficiency Account. RE: Local match to Fournier Field Playground Improvements State Grant Award. C-19 Relative to the appropriation of $33,355.00 to the Personnel Department Salary and Wages Account; same to be raised by FY 2011 Revenue. ORDERED: - that the sum of Thirty Three Thousand Three Hundred Fifty Five Dollars ($33,355.00) be appropriated to the Personnel Department Salary & Wages Account; same to be raised by FY 2011 Revenue. C-20 Relative to the appropriations of $57,872.00 to miscellaneous departments as listed; same to be appropriated from miscellaneous departments as listed. Appropriations to the following Salary & Wages Accounts: Appropriations from: Mayor’s Office $5,107.00 Insurance Expense Account $34,457.00 Comptroller’s Office $2,381.00 Assessor’s Office Salary & Wages $ 2,491.00 Budget Director’s Office $1,737.00 Elections & Registrations Expense $ 5,573.00 Assessor’s Office $2,491.00 Planning Dept. Salary & Wages $ 3,010.00 Collector’s Office $1,168.00 Police Dept. Salary & Wages $ 6,375.00 City Clerk’s Office $5,573.00 Highway Labor Salary & Wages $ 4,611.00 Planning & Dev. Office $3,010.00 Emergency Management Salary & Wages $ 1,355.00 Economic Dev. Office $1,704.00 Health Department $1,913.00 Fire Department $1,360.00 Police Department $6,375.00 Council on Aging $2,133.00 Veteran’s Office $2,398.00 Recreation Department $1,643.00 Library Department $8,906.00  5 REGULAR MEETING OF THE CITY COUNCIL, NOVEMBER 22, 2010, continued Dept. of Public Works $1,076.00 Forestry Department $2,491.00 Building Department $2,308.00 Emergency Management $1,355.00 Cemetery Department $1,044.00 Conservation Comm. $1,699.00 ORDERED: - that the sum of Fifty Seven Thousand Eight Hundred Seventy Two Dollars ($57,872.00) be appropriated to the miscellaneous departments as listed; same to be appropriated from miscellaneous departments as listed: Appropriations to the following Salary & Wages Accounts: Appropriations from: Mayor’s Office $5,107.00 Insurance Expense Account $34,457.00 Comptroller’s Office $2,381.00 Assessor’s Office Salary & Wages $ 2,491.00 Budget Director’s Office $1,737.00 Elections & Registrations Expense $ 5,573.00 Assessor’s Office $2,491.00 Planning Dept. Salary & Wages $ 3,010.00 Collector’s Office $1,168.00 Police Dept. Salary & Wages $ 6,375.00 City Clerk’s Office $5,573.00 Highway Labor Salary & Wages $ 4,611.00 Planning & Dev. Office $3,010.00 Emergency Management Salary & Wages $ 1,355.00 Economic Dev. Office $1,704.00 Health Department $1,913.00 Fire Department $1,360.00 Police Department $6,375.00 Council on Aging $2,133.00 Veteran’s Office $2,398.00 Recreation Department $1,643.00 Library Department $8,906.00 Dept. of Public Works $1,076.00 Forestry Department $2,491.00 Building Department $2,308.00 Emergency Management $1,355.00 Cemetery Department $1,044.00 Conservation Comm. $1,699.00 A recess was called at 10:37 P.M. The meeting reconvened at 10:44 P.M. Upon request of the FINANCE COMMITTEE the following COMMUNICATION was given FURTHER TIME. Vt. 9 “yeas” C-21 Relative to the appropriation of $142,000.00 to the Municipal Property Maintenance Capital Outlay Expense Account; same to be transferred from the Excess and Deficiency Account. Upon recommendation of the FINANCE COMMITTEE, the following COMMUNICATIONS were GRANTED and ORDERED. Vt. 9 “yeas”. C-22 Relative to the appropriation of $180,000.00 to the Fiscal Year 2011 Revenue; same to be transferred from the Excess and Deficiency Account. ORDERED: - that the sum of One Hundred Eighty Thousand Dollars ($180,000.00) be appropriated to Fiscal Year 2011 Revenue; same to be transferred from the Excess and Deficiency Account. RE: Library Debt Service $130,000.00 I.T.T.F. Expenses $ 50,000.00 C-23 Relative to the appropriation of $183,871.00 to the School Department School Choice Account; same to be raised from Fiscal Year 2011 Revenue. ORDERED: - that the sum of One Hundred Eighty Three Thousand Eight Hundred Seventy One Dollars ($183,871.00) be appropriated to the School Department School Choice Account; same to be raised from Fiscal Year 2011 Revenue. C-24 Relative to the appropriation of $148,340.00 to the School Department School Choice Expense Account; same to be transferred from the Excess and Deficiency Account. ORDERED: - that the sum of One Hundred Forty Eight Thousand Three Hundred Forty Dollars ($148,340.00) be appropriated to the School Department School Choice Expense Account; same to be transferred from the Excess and Deficiency Account. C-25 Relative to the appropriation of $622,792.00 to the School Department Transportation Expense Account; same to be transferred from the Excess and Deficiency Account. ORDERED: - that the sum of Six Hundred Twenty Two Thousand Seven Hundred Ninety Two Dollars ($622,792.00) be appropriated to the School Department Transportation Expense Account; same to be transferred from the Excess and Deficiency Account.  6 REGULAR MEETING OF THE CITY COUNCIL, NOVEMBER 22, 2010, continued C-26 Relative to the appropriation of $2,225,000.00 to the School Debt Service Expense Account; same to be raised by Fiscal Year 2011 Revenue. ORDERED: - that the sum of Two Million Two Hundred Twenty Five Thousand Dollars ($2,225,000.00) be appropriated to the School Debt Serve Expense Account; same to be raised by Fiscal Year 2011 Revenue. C-27 Relative to the appropriation of $107,000.00 to the Stabilization Fund; same to be transferred from the Excess and Deficiency Account. ORDERED: - that the sum of One Hundred Seven Thousand Dollars ($107,000.00) be appropriated to the Stabilization Fund; same to be transferred from the Excess and Deficiency Account. Upon request of the LEGAL AFFAIRS COMMITTEE the following PETITION was given FURTHER TIME. Vt. Vt. 8/0. Councillor Dombrowski abstained due to a possible conflict of interest. 20-11 James Xarras: Request the City of Leominster file a Home Rule Petition providing for “An act authorizing the City of Leominster to grant an additional license for the sale of all alcoholic beverages.” Be it enacted by the Senate and House of Representatives in General Court assemble and by the authority of the same as follows: Notwithstanding Section 17 or Chapter 138 of the General Laws or any other general or special law of the contrary. The licensing authority of the City of Leominster may grant an additional license for the sale of all alcoholic beverages under Section 15 of said Chapter 138. The proposed location for this business is 497 Lancaster Street. Upon recommendation of the CITY PROPERTY COMMITTEE the following PETITION was GRANTED. Vt. 9/0 22-11 Kelly Woodland, Mayoral Aide: Accept a donation of eight 3 ft. x 5 ft. PolyMag United States Flags from Central Flag & Gift. Upon recommendation of the WAYS & MEANS COMMITTEE the following COMMUNICATION was GRANTED and ORDERED. Vt. 9 “yeas” C-14 Relative to the appropriation of $6,775.00 to the Housing Rehabilitation Construction Expense Account; same to be transferred from the Code Enforcement Expense Account. ORDERED: - that the sum of Six Thousand Seven Hundred Seventy Five Dollars ($6,775.00) be appropriated to the Housing Rehabilitation Construction Expense Account; same to be transferred from the Code Enforcement Expense Account. Upon recommendation of the WAYS & MEANS COMMITTEE the following PETITION was GRANTED. Vt. 7/2, Councillors Marchand and Rowlands opposed. 23-11 Dwayne A. Davis: Grant a Hawker’s and Peddler’s License to sell children’s toys and novelty items during the Holiday Stroll and Tree Lighting Ceremony. Upon recommendation of the WAYS & MEANS COMMITTEE the following APPOINTMENT was CONFIRMED. Vt. 9 “yeas” Emergency Management Logistics Unit: Luis Ramos Under Old Business, Councillor Dombrowski, Chairman of the President’s Drinking Water Oversight Committee, said they received the October 2010 report from the Leominster Water Division. He said he has not had the opportunity to read it. He will report at the next meeting. Councillor Rowlands said in the September 2010 report there were high TTHM’s. He said they were 2008 numbers. He said he was hoping it was just a submittal error and didn’t go to the state. He said he would like confirmation on that. He said in the October 2010 report regarding the conductivity test that took place at Shay Brook, it showed a significantly higher value. He said they put electricity in the water, the more it conducts the more particles there is in the water. He said there is also a report of dumping. He said we should get an answer on that. Upon recommendation of the CITY PROPERTY COMMITTEE the following RESOLUTION was ADOPTED. Vt.8 “yeas” and 1 “nay”, Councillor Marchand opposed. RESOLUTION TO AUTHORIZE GRANT AND ACCEPTANCE OF ACCESS AND PARKING EASEMENTS BE IT RESOLVED: that the City Council of the City of Leominster authorizes the Mayor to grant to HRRLP Leominster, LLC, a parking easement in the portion of land shown as ”Shared Parking” and an access easement in the portion of land shown as “Parking Access Easement,” which portions are shown on a plan entitled “Plan of Easement in Leominster, Massachusetts,” dated March 10, 2009, prepared by Control Point Associates, Inc., a copy of which is on file with the City Clerk, and a part  7 REGULAR MEETING OF THE CITY COUNCIL, NOVEMBER 22, 2010, continued of the premises acquired by the City by Order of Taking recorded with the Worcester North District Registry of Deeds in Book 748, Page 229, on such terms and conditions, and for such consideration, which may be nominal consideration, as the Mayor deems appropriate, and, as consideration therefore, authorizes the Mayor to accept from HRRLP Leominster, LLD, parking and access easements on property abutting the City’s property, all as shown on the foregoing plan; and take all actions necessary or convenient to accomplish the foregoing. The following ORDINANCE was read a second time, ADOPTED as presented and passed to be ordained. Vt. 9 “yeas” City of Leominster In the year two thousand and ten AN ORDINANCE Amending Chapter 13 of the Revised Ordinances entitled “Motor Vehicles and Traffic” Be it ordained by the City Council of the City of Leominster, as follows: Chapter 13, Section 13-34 of the Revised Ordinances entitled “No Parking on Certain Streets” is hereby amended by inserting the following phrase: “Mechanic Street (south side), outside the entrance to the business located at 91 Mechanic Street. ________________________________ Councillor Cormier reminded the Council of the joint meeting with the School Committee on December 16, 2010 at 7:00 P.M. Agenda items for this meeting are due by November 24, 2010. MEETING ADJOURNED AT 11:18 P.M. _____________________________ Lynn A. Bouchard, City Clerk and Clerk of the City Council