CC MTG MINUTES FEBRUARY 16 2017 MINUTES OF THE FINANCE COMMITTEE MEETING
February 16, 2017
Members Present: Christopher Johnson—Chair
Cecilia Calabrese
Richard Theroux
Paul Cavallo
Members Absent: Gina Letellier
Also Present: Robert Rossi, Councilor
Chris Golba, Supt of Public Works
Doug White, Building Maintenance Director
Cheryl St. John,Auditor
Called to Order: Meeting was called to order by Chairman Johnson at 7:00 P.M. in the
Conference Room of the Agawam Senior Center, 954 Main Street,
' Agawam, MA.
AGENDA
1. Approval of minutes dated January 17,2017.
A motion to approve the minutes was made by Councilor Theroux and seconded by Councilor
Calabrese—the motion was approved by a 4 yes 0 no and 1 absent vote.
2. TO-2017-5 - Budgetary Transfer of$10,000.00 from Building Maintenance Regular
Permanent Salary (Account #11921-51010 to Building Maintenance Overtime (Account
#11921-51030)(Mayor)
After a brief discussion with Director White regarding the need for the transfer which is based
on unexpected losses of personnel due to work related injuries and the death of an employee,
there was a motion made to send a positive recommendation to the Council made by Councilor
Cavallo and seconded by Councilor Theroux—the motion was approved by a 4 yes 0 no and 1
absent vote.
3. TO-2017-6 - Budgetary Transfer of $2,000.00 from Building Maintenance Regular
Permanent Salary (Account #11921-51010) to Building Maintenance Regular Temporary
L (Account#11921-51020)(Mayor)
After a brief discussion with Director White regarding the need for the transfer which is based
' on unexpected losses of personnel due to work related injuries and the death of an employee,
there was a motion made to send a positive recommendation to the Council made by Councilor
Calabrese and seconded by Councilor Cavallo—the motion was approved by a 4 yes 0 no and
1 absent vote.
3. TR 2017-4 - A Resolution approving sewer use rates fixed by the Department of Public
Works(Mayor)
•
After a lengthy discussion with Superintendent Golba regarding the need for an increase in
sewer rates based on the following: the department is currently relying on retained earnings to
' balance its budget and the department anticipates several capital projects in the next three
years, the largest of which will be the mandated elimination of potential sewer infiltration.
Through the utilization of Tighe & Bond, the department studied 2 rate increase alternatives
and recommends the alternative which calls for an immediate 20 percent increase in rates
followed by an additional 10 percent increase in 2 years. The current rate increase will raise
the average residential sewer bill by $47 per year and the second rate increase will raise it an
additional $28 per year. The rate increases are proposed and recommended by the Mayor.
There was a motion made to send a positive recommendation to the Council made by
• Councilor Theroux and seconded by Councilor Cavallo—the motion was approved by a 4 yes
0 no and 1 absent vote.
4. TR 2017-7 -A Resolution adopting and endorsing a Tax Increment Financing Agreement
between the Town of Agawam and Sound Seal, Inc. (Mayor)
After a brief discussion regarding the fact that Sound Seal, Inc. proposes to make an addition
onto its present facility in the Agawam Regional Industrial Park and is seeking tax incentives
from the town which will result in the gradual taxation of the increase in assessed valuation
resulting from the addition. The agreement will require Sound Seal to hire 15 new full time
employees in exchange for the tax incentive. Councilor Johnson shared information from his
tour of the facility with Council President and indicated that the company has facilities in
Agawam and in the Chicago area and would prefer to expand here, but needs the tax incentive
to move forward. According to the information provided, the tax incentive will total around
$33,000 and result in the creation of 15 new jobs. There was a motion made to send a positive
recommendation to the Council made by Councilor Theroux and seconded by Councilor
Cavallo—the motion was approved by a 4 yes 0 no and 1 absent vote.
Adjournment: Motion to adjourn was made and seconded and approved unanimously at 7:40 P.M.
' Respectfully submitted,
•
Christopher Johnson, Chair
Finance Committee
•