Canton, Massachusetts · Saved source text
November 29, 2021, Finance Committee Meeting with Capital Planning Committee - Virtual Meeting. Minutes
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Canton Finance Committee Open Session Minutes Voted on: 1/26/22
801 Washington Street Vote: 7-0-1
Canton, MA 02021
Meeting Minutes – Open Session
November 29, 2021
Finance Committee Members Present: Dan Cole, Dave Clough, Karen Foley, Emilio Mauro, Tim McKenna, Reuki
Schutt and Cindy Thomas.
Finance Committee Members Absent: Tom Emery.
Guests Present:
Shaun Chu, Capital Planning Committee
Christopher Deck, Capital Planning Committee
Stephen Dockray, Capital Planning Committee
Dave Emhardt, Chair, Capital Planning Committee
Ellen Jones, Finance Committee Recording Secretary
Lisa Lopez, Vice Chair, Select Board
Stephen O‘Halloran, Capital Planning Committee
Barbara Saint Andre, Capital Planning Committee
Randy Scollins, Finance Director
Call Meeting to Order: Chair McKenna called the meeting to order at 7:01 p.m. and reminded all those present at
the virtual meeting that confidentiality of the matters discussed was of utmost importance.
Ms. Schutt explained that she had consulted with the State Board of Ethics and it was determined that because she
was an abutter of the St. Gerard’s property and a financial interest in the purchase that she would have to abstain
from any voting and would attend Special Town Meeting (STM) but at the time that Article 2 was discussed would
move from the Finance Committee area and would sit in the audience.
Article 2 – Special Town Meeting (STM) – Real Estate Acquisition – St. Gerard’s
A motion made by Ms. Saint Andre to enter into executive session to discuss strategy with respect to
consider the purchase, exchange, lease or value of real estate, (1860 Washington Street) if the Chair declares
that an open meeting may have a detrimental effect on the negotiating position of the public body was
seconded by Mr. Dockray.
Roll Call Vote for the Capital Planning Committee:
Mr. Deck Aye Mr. Dockray Aye
Mr. O’Halloran Aye Mr. Chu Aye
Ms. Saint Andre Aye Mr. Emhardt Aye
The motion to move into Executive Session passed 6-0-0.
A motion made by Ms. Thomas to enter into executive session to discuss strategy with respect to consider
the purchase, exchange, lease or value of real estate, (1860 Washington Street) if the Chair declares that an
open meeting may have a detrimental effect on the negotiating position of the public body was seconded by
Mr. Mauro.
Roll Call Vote of the Finance Committee:
Ms. Thomas Aye Mr. Mauro Aye
Mr. Clough Aye Mr. McKenna Aye
Mr. Cole Aye Ms. Schutt Abstain
Ms. Foley Aye
The motion to move into Executive Session passed 6-0-1.
Ms. Schutt left the virtual meeting at approximately 7:12 p.m.
FINCOM 20211129 Minutes – Open Session with DClough Edts.docx Page 1 of 3 1/17/22Source page 2
Each member of the Capital Planning Committee, Finance Committee, the Chair and Vice Chair of the Select Board, the Finance Director and the Recording Secretary gave a statement for the record that they acknowledged the confidentiality of the topic that would be discussed and were alone in attendance at the meeting. Mr. Clough mentioned he was in a closed room with no one else, but warned his two children could enter at any time. Mr. McKenna stated that the Finance Committee would not be returning to an Open Session Meeting. Open Session Minutes reviewed by: Dave Clough Respectfully submitted, Timothy McKenna Chair, Canton Finance Committee FINCOM 20211129 Minutes – Open Session with DClough Edts.docx Page 2 of 3 1/17/22
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Canton Finance Committee Meeting
Open Session – Meeting Documents
November 29, 2021
Please note: Some meeting documents may be found on the Town’s website under the Posted Minutes
section (Laser Fiche).
Agenda for November 20, 2021 (1 page).
FINCOM 20211129 Minutes – Open Session with DClough Edts.docx Page 3 of 3 1/17/22Source page 4
Canton Finance Committee Executive Session Minutes Voted on: 1/26/22 i e 801 Washington Street Vote: 8-0-1 \ prs i Canton, MA 02021 Released on: 5/9/22 Ve ad Vote: 6-0-0 SAPO Aisa Meeting Minutes — Executive Session November 29, 2021 Finance Committee Members Present: Dan Cole, Dave Clough, Karen Foley, Emilio Mauro, Tim McKenna, Reuki Schutt and Cindy Thomas. Finance Committee Members Absent: Tom Emery. Guests Present: Shaun Chu, Capital Planning Committee Christopher Deck, Capital Planning Committee Stephen Dockray, Capital Planning Committee Dave Emhardt, Chair, Capital Planning Committee Ellen Jones, Finance Committee Recording Secretary Lisa Lopez, Vice Chair, Select Board Stephen O'Halloran, Capital Planning Committee Barbara Saint Andre, Capital Planning Committee Randy Scollins, Finance Director The Finance Committee resumed their November 29" meeting in Executive Session at 7:21 p.m. Article - Special Town Meeting (STM) — Real Estate Acquisition — St. Gerard’s Ms. Lopez provided the following highlights to the Finance Committee and Capital Planning Committee: e The Archdiocese owns the property at 1860 Washington Street, controls the process for the sale of the property and announced that they had received offers. e The Town Counsel has been in communication with the broker who expressed the Town’s interest in the purchase of the property. The broker provided information regarding prospective buyers, other developers and other churches that have expressed an interest in the property. e Private parties/buyers can pay anything they choose for the property. e Municipalities are obligated to pay the fair market value. e The Town has engaged an appraiser who will be conducting an appraisal based on historical sales and a compilation of comparable properties. e The fair market value may not be what the property is assessed at or the asking price of the Archdiocese. e As of the meeting the appraisal was never finalized and the document thus far remains a privileged document and will never be a public record. e Ananalysis of sales data was a moot point for the determination of fair market value. e The Archdiocese received a number of offers for the property. e Town Counsel has made available the appraisal for Committee members to review on a one-on-one basis prior to STM so members can be aware of the process to date. e The Archdiocese, after a number of offers, approached the Town to make an offer for the property. e The Select Board is making a recommendation to ask STM for $3.305 million (below the $4.4 million assessed value and below the asking price of $4 million). The $3.305 million is inclusive of fees and expenses (lawyers and consultant fees). The purchase price has been rather challenging to negotiate in real time and will be made public on Wednesday, December 1. e The Priest of St. Oscar Romero will be invited to give the open prayer at STM. e — If the Archdiocese chooses the Town as the buyer, a period of due diligence will occur as the purchase and sale is negotiated. There is no deal to date. The Town’s objective is to negotiate and reach an agreement. e The Select Board is comfortable asking the Finance Committee to come to STM with a motion of $3.035 million. FINCOM 20211129 Minutes — Executive Session with DClough edits.docx Page 1 of 5 1/17/22
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Mr. Scollins shared four slides with the Committees which included the following: The first slide was possible funding sources and competing uses. e Preferred Sources - Possible Funding Sources included free cash, ARPA Funds, included debt and excluded debt — these were preferred sources. The competing uses included but not limited to MSBA Feasibility study for the Galvin Middle School, the Special Education Stabilization Reserve and a new Capitalization Stabilization Fund. ¢ Not Preferred Sources ~ Possible Funding Sources included Select Board mitigation funds, cash capital and the Finance Committee Reserve Fund. Competing Uses included Revere Site expenses, Municipal requests, Municipal and School Capital Requests and FY Budget shortfalls such as snow and ice. The second slide was an amortization table for a $3.305 million property acquisition. « The Select Board decided on a debt exclusion. The $3.305 million bond would be at an assumed 3.5% interest rate for a total cost of $4.5 million over a 20-year term. The third slide was an excluded debt service schedule from FY 2020 through FY 2042. e A debt exclusion would be an increase to taxes and it is assumed that it would begin in FY23 and would initially add $281,000 to annual debt service. ¢ The net debt exclusion tax would only increase by approximately $40,000 in FY23 due to amortization of existing excluded debt. ¢ The Library debt payment would be ending in FY23. The High School renovations debt payment would be ending in FY24. When two debt exclusions expire in FY24 and FY25, total debt exclusion tax will be approximately $594,000 or 39% less in FY25 than in FY23. The fourth slide was the impact of the $3.305 million in debt exclusion tax cost for the average residential taxpayer. « The tax impact is based on the average home value of $592,017. « The total estimated average cost to the residential taxpayer starting in year one would be $21.54 per year. « The average cost to the residential taxpayer would decrease to $17.33 in year 20. In response to Mr. O’Halloran’s question if the $3.305 million was inclusionary, would this include sewer system costs, the refacing of the parking lot or is it as is? Mr. Scollins responded with No, No, No and Yes. Everything would be added. Not all of the $3.305 million would go to the Archdiocese. Mr. O'Halloran asked if the Town should plan for a higher number ask. Ms. Lopez stated that the Select Board has taken a position because it needed to act quickly to protect the Town's interest. The acquisition would be as is. The Select Board would return in May with a use for the property. Mr. Mauro inquired if the $3.305 million was a number comfortable with as a ceiling number or would the Town be locking themselves in. Mr. Loughran stated that he felt confident as per a conversation with the Town Counsel. They do not anticipate exceeding the $3.305 million. Mr. Mauro asked what the affect would be on the commercial tax rate. Mr. Scollins would add a column to slide 4. Mr. Mauro also inquired if Article 2 is passed at STM and it goes to a ballot vote, does the Town Clerk have sufficient resources without allocating additional funds. The Town Clerk had already reached out to Mr. Scollins and Mr. Aspinwall and stated that she is already aware of three areas in her budget that would need additional funds. A Finance Committee Reserve Fund Transfer could appropriate $10,000 to cover a budget shortfall in the Town Clerk's budget. With regard to Ms. Thomas’ inquiry if there were any projections made for operating and maintenance costs in the interim phase to keep the property stable, Ms. Lopez stated that they do not have numbers for covering these costs but the Select Board does not anticipate the costs would be excessive because the building would not be in use. Heat would only be used to prevent the pipes from freezing. Ms. Thomas inquired how the Town would be transparent with the taxpayers. The reality is there would be additional capital expenditures presented at the Annual Town Meeting. The Galvin Middle School renovations is on the horizon as well. Ms. Lopez stated that they would be explicit that whatever is decided on for the use of the property there would be expenses. Costs will vary widely depending upon the use. Mr. Cole inquired if the Town had any indication of what the Church preferred for a buyer. Ms. Lopez emphasized that the Archdiocese prefers the buyer to be the Town assuming the Town will meet the price. Ms. Lopez said the pitch will be “we have an opportunity to invest in ourselves at very attractive rates. Mr. Emhardt spoke in support of the $3.305 million debt exclusion and that acquiring this property for this value would be an extremely good deal for the Town. FINCOM 20211129 Minutes — Executive Session with DClough edits.docx Page 2 of 5 4117/22
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Mr. Deck cautioned that the Town’s financial health is not indicative of the residential financial health. He further stated that this is a great opportunity but to keep sight of the average resident/person. Ms. Lopez stated that the Select Board is very sympathetic to this sentiment and attuned to the financial impact on residents. By 2030 approximately 80% of existing Town debt will be paid off. Ms. Foley sked if the debt exclusion was the route the Town would be going and would the Archdiocese be willing to wait for two weeks. Ms. Lopez responded that the process has been made very clear to the Archdiocese. Mr. Clough inquired if the Purchase and Sale would be through a broker or through the eminent domain process. Ms. Lopez stated that they are prepared and intending to negotiate the price and terms for mutually agreeable terms and a fully-negotiated agreement with the Archdiocese. The transaction will most likely be by eminent domain in order to obtain a clear title. The lawyers will consummate the transaction by eminent domain. Mr. Clough inquired if there has been an environmental report on the property and who would pay for the cost of this. The Town is having a Phase 1 environmental review conducted and that the cost would be less than $3,000. The Select Board would cover this expense. Ms. Lopez stated that a Phase 2 review would not be necessary. With regard to capital costs, Mr. Emhardt stated that capital costs would be determined once the Town has decided on the use for the property. Ms. Lopez stated that she was not competent nor was it her expertise to comment on the condition of the building. They have never been told that St. Gerard’s was structurally unsound. A Committee member inquired if there were any inverse condemnation, potential litigation or any problems from abutters such as tree cutting. Mr. Chu asked if the Archdiocese expressed any ideas of why they are inviting the Town as the buyer and is the Town at any risk of contingencies placed as part of the sale. Ms. Lopez is aware of other churches that have offered to purchase the property but the Archdiocese would prefer not to sell to a church and that it is clear that if the Town were to purchase the property that it would be used for the community. Mr. McKenna asked if the purchase was approved at STM what would be the next phase of the process to determine the use for the property. Ms. Lopez said there would be a very formal process, a committee would be formed to deliberate a plan to survey all of the community in a representative way. Mr. Scollins confirmed for Mr. Mauro that there would be enough debt capacity for the Galvin Middle School project. The School Department anticipates a decision in December or January regarding a feasibility study for a cost of approximately $1 million. A decision by MSBA wouid be needed and Town Meeting would have to approve the debt service. The debt service would not hit in one lump sum but would be spread out over a 25-30 year bond. The impact to the total debt available of $6.1 billion would only be a small fraction of that. The Town would still be well below half of the available debt capacity for the Town. Ms. Saint Andre asked, where do we go from here? Vote? Meet on November 30'"? Mr. McKenna suggested that the CPC have their own discussion and vote and the Finance Committee take their vote as well. The motion for Article 2 would be made public at the STM. A motion made by Ms. Saint Andre that the Capital Planning Committee recommend support of Article 2 as printed in the motion under Items a, b, c and d in the amount of $3.305 million to be funded through borrowing pursuant to a debt exclusion question at the ballot was seconded by Mr. O'Halloran. Roll Call Vote of the Capital Planning Committee: Mr. Deck Aye Mr. Dockray Aye Mr. O’Halloran Aye Mr. Chu Aye Ms. Saint Andre Aye Mr. Emhardt Aye The motion passed 6-0-0. A motion made by Ms. Thomas that the Finance Committee recommend support of Article 2 as printed in the motion under Items a, b, ¢ and d in the amount of $3.305 million to be funded through borrowing pursuant to a debt exclusion question at the ballot was seconded by Mr. Mauro. Roll Call Vote of the Finance Committee: Mr. Mauro Aye Mr. Clough Aye Ms. Foley Aye Ms. Thomas Aye Mr. Cole Aye Mr.McKenna Aye The motion passed 6-0-0. Next Meeting Date: Mr. McKenna stated that there was no need for the Finance Committee to meet the following night on November 30". If the Committee meets on Wednesday, December 1, prior to the STM the meeting it would take place at 5:30 p.m. in the Library of the Canton High Schooi. Mr. Scollins would communicate to the Committee members by noon on Wednesday if they would have to meet prior to the STM. The Select Board would be meeting at 6:00 p.m. prior to STM. FINCOM 20211129 Minutes ~ Executive Session with DClough edits.docx Page 3 of 5 1/17/22
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A motion made by Ms. Saint Andre to adjourn the Executive Session meeting at 9:02 p.m. was seconded by Mr. O'Halloran. Mr. Deck Aye Mr. Dockray Aye Mr. O’Halloran Aye Mr. Chu Aye Ms. Saint Andre Aye Mr. Emhardt Aye The motion to adjourn passed 6-0-0. Announcement: An announcement was made that on December 9"" the Master Plan Implementation Committee approved by the Planning Board would be meeting with various committees on a virtual Zoom meeting at 7:00 p.m. The Finance Committee was welcome to attend. Town Planner Laura Smead would be sending information to the Recording Secretary to forward to the Finance Committee so a joint meeting could be posted. A motion made by Ms. Thomas to adjourn the Executive Session meeting at 9:05 p.m. was seconded by Mr. Mauro. Roll Call Vote of the Finance Committee: Mr. Mauro Aye Ms. Thomas Aye Ms. Foley Aye Mr.McKenna Aye Mr. Cole Aye The motion passed 5-0-0. Mr. Clough had left the virtual meeting just before the Finance Committee's vote was taken. Executive Session Minutes reviewed by: Dave Clough Respectfully submitted, A tA___ Timothy McKenna Chair, Canton Finance Committee FINCOM 20211129 Minutes — Executive Session with DClough edits.docx Page 4 of 5 1/17/22
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Canton Finance Committee Meeting Executive Session —- Meeting Documents November 29, 2021 Please note: Some meeting documents may be found on the Town’s website under the Posted Minutes section (Laser Fiche). Agenda for November 20, 2021 (1 page). FINCOM 20211129 Minutes — Executive Session with DClough edits.docx Page 5 of 5 1/17/22
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Town of Canton Finance Committee Meeting Notice
Finance Committee Meeting Date: Monday, November 29, 2021
Tim McKenna, Chair Meeting Time: 7:00 PM
Cindy Thomas, Vice Chair Meeting Location: Virtual Meeting via Zoom
Dave Clough
Dan Cole
Thomas Emery
Karen Foley
Emilio Mauro
Reuki Schutt
Vacancy
Finance Committee and Capital Planning Committee
will be meeting jointly via Zoom on this date and time
Finance Committee Agenda– Virtual Meeting (see details below)
.
Minutes Primary/Alternate: Reuki Schutt / Dave Clough
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Call Meeting to Order
Next Finance Committee Meeting Date: Tuesday, November 30, 2021
7:05 p.m. Executive Session
Executive Session to discuss strategy with respect to consider the purchase, exchange, lease or value of real estate,
(1860 Washington Street) if the Chair declares that an open meeting may have a detrimental effect on the negotiating
position of the public body.
If a topic becomes known prior to 48 hours before the scheduled meeting, the Committee will update this posting. The Committee
may also discuss a topic or topics not reasonably anticipated by the Chair 48 hours before the meeting.
FINCOM 20211129 Agenda.doc