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CC MTG MINUTES JUNE 18 2012 ' REGULAR MEETING OF THE AGA WAM CITY COUNCIL Minutes dated June 18, 2012 President Johnson —I call the meeting to order. Item 1. Roll Call President Johnson—I ask Barbara to call the roll please? ' ROLL CALL — 11 PRESENT, 0 ABSENT President Johnson —With eleven present, we have a quorum. Item 2. Moment of Silence and the Pledge ofAllegiance. ' President Johnson -- I'd ask everyone to rise for a moment of silence and Pledge of Allegiance please. ' Item 3. Citizen's Speak Time President Johnson — We have four citizens wishing to address the Council. The first is ' John Cappuccilli? John Cappuccilli — Hi. My name is John Cappuccilli. I live at 50 Red Fox Drive with ' my lovely wife Joanne. We've been here since 1976 and we've been very active in the community. As I look around me tonight I see many members of the community. We ' have Police, Fire, who've served our community well. We have a wonderful community. We have one of the lowest tax rates in the Commonwealth. We have one of the lowest water, sewer rates in the Commonwealth. I think we have a great community here. What I am here tonight to address you as a citizen of the Southwest section. I am on the Ad Hoc committee of the Sewer Committee along with Dennis Perry, Councilman Cichetti and of course Councilman Rossi who chairs it. We have a real problem out there in our Southwest section and thanks to Councilman Rossi, we have a very phased plan operation. We have completed the first phase. Why I'm here tonight is to say please pass TR-2012-27 for the land taking of the pumping stations. We desperately need this relief in the Southwest section. Again, thank you very much for your attention. President Johnson --Thank you. Next up is Teresa Kozloski? Teresa Kozloski — Teresa Kozloski, 102 Meadow Street. 1 do have a request to make since not all of us are six feet tall, maybe you could change this podium and have a table and chair and make it much more user friendly? So much for that. I want to discuss the need for a Charter Reform and there has been discussion here on a very positive step on increasing the terms of the Mayor and Council and School Committee from two to four ' years and I think that change would bring about a lot more stability and it would bring ' 1 about the encouragement of long-term planning which is something we desperately need here in Agawam. In addition to that, I would like to have you think about staggering the terms as well. Now the way it is now, the voter is faced with eleven names and so many School Committee members and it's very difficult to differentiate just what is the quality here of each individual and what is the character of each individual. The debates really aren't that great so I would think you would need much more competition and by staggering the terms, I think you would find that we'd have a better choice and between staggering the terms and a long range term from two to four years, I think you would encourage a lot more people to run. We would have a lot more new energy and I think we would have a lot more new ideas, Another reform that I would like to have you think about is to get rid of the Mayor on the School Committee. Now that change came about 1 through very unusual circumstances. It was a very emotional time and it was a change that came about with very little discussion and really very little investigation and it just flew through and we now have the Mayor on the School Committee. Now what happens when you have the School Committee budget? You find that the Superintendent sets up the budget after finding different ideas from the staff and then with this budget, consults with the Mayor one on one. You really don't have a good debate as far as the voters are concerned as to the line items on this budget and the vote that the School Committee takes on a budget is the most important vote that they will make during their term. So I would encourage you very much to look at that. There's no need to have the Mayor there controlling the School Committee budget and having a lot of say on a one to one relationship with the Superintendent. It would be much more of an open forum and we would see a lot more debate and I think it would result in a much better School ' Department. So with that I leave you with my thoughts. Thank you very much. ' President Johnson—Thank you. Next is Bill Sapelli? Bill Sapelli—Thank you. Bill Sapelli, 125 Edgewater Road, Agawam. I'm here to speak about the budget and the budget process. As you know I submitted a budget on behalf of the School Department. It was based on input from staff, directors, parents, Assistant Principals, Principals and also Central Office and submitted that with the School Committee, reviewed it with the School Committee — line item by line item —and met on a couple of occasions with the sub-committee of the City Council who was in charge of the School Budget. And I felt those meetings were very productive. I know that was chaired by Councilor Cavallo and we've had a couple of meetings. There was a lot of give and take. I thought some very appropriate questions were asked and I hope answered to the satisfaction of the Council sub-committee and I'm just here this evening to say that I thought it was a great process. I thought things went well and I'm just hoping that you will approve the budget as submitted this evening when it comes up on your Agenda. Thank you. President Johnson—The last speaker is Richard Theroux. Richard Theroux — Thank you Mr. President. My name is Richard M. Theroux. I reside at 30 Ley Street in Agawam. I am the Town Clerk. I am here to speak on behalf of TR-2012-34 which is the legislation before you to change the terms of office for the i2 Mayor, Council and School Committee. I first want to thank the Community Relations Committee chaired by their able Chairman, Mrs. Calabrese, and members Mr. Bitzas, Mr. Cavallo, Mr. Perry and Mr. Cichetti. They met some time ago. Their input was invaluable concerning this piece of legislation and a change in our Charter. Just briefly, and I'm sure Councilor Calabrese will review this when this comes up on your Agenda, this piece of legislation before you has been reviewed first by our own Law Department, second review was done by the Election Division of the Commonwealth, Secretary Galvin's office and also as a suggestion to the Law Department we had it reviewed by ' Mrs. Lauren Goldberg who works for Cuppelman and Paige in Boston and specializes in Charter change, Charter Reform in their government relations division. We also spoke with Representative Boldyga and Senators Knapik and Welch concerning this legislation. And just as another look see, if you will, for this piece, we had the House Counsel and Senate Counsel review it as to its content and any other changes we had. So as far as the content of this legislation, I have no doubt that when the hearings come in Boston, if the Council is so willing to pass this piece of legislation to go on to the ballot in 2013 for the voters to decide. I believe we are in good stead and this piece of legislation has been reviewed to the point where I feel we're not gonna have a problem with it when we go to Boston for the hearings. Now speaking on the legislation myself, I just want to say that again and a previous speaker mentioned it and I'm grateful for her remarks that I do think the time has come for a four year term for our Mayor not matter who the mayor is in 2013. I think the time has come to have candidates that run for office every two years to not have that political shadow over them every two years and every time they make a decision. I think in this situation, in the times we live in, four year term for all these offices is not unheard of and also I think just in the recent election in which I conducted it showed that for the first time ever we had six candidates for the School Committee and six winners. I think if we lengthen the term we will get candidates. We will save money — approximately $10,000 an election — but that's not really the issue. I think everyone sitting here that serves in public office knows the grind of serving and also campaigning ' constantly when the terms are so short. I think this legislation, it's time has come. I hope the Council will pass it and some other points were brought up by the previous speaker and I wish to just speak to them very quickly. Every amendment that this Charter has gone through in the forty years — I don't really want to say this but I've been a part of because I've been here forty years —and the change of the Council down from fifteen and precinct councilmen to eleven at-large has worked for our community in my opinion. The change and it was not done lightly to have whoever's the Chief Executive Officer of our community also be Chairman of the School Committee so they'd have a say at what you will look at tonight — 52% of the budget I believe it is — and those changes were not done lightly. They were done in the same manner. They were done through a change in the legislature. Some of you have helped me with those in the past in your capacities and I think this document works and I think that this change that's proposed this evening will ' also work for our community and I hope that you will review it with the committee and I hope that you will pass it. Thank you very much. President Johnson —Thank you Mr. Theroux. This finishes Citizen's Speak Time. ' 3 Item 4. Minutes 1. Regular Council Meeting—June 4,2012 President Johnson — Is there a Motion to Approve? Moved by Councilor Magovern, ' seconded by Councilor Rheault. Any discussion on the minutes? Seeing none, all those in favor say Ay? Any opposed? It's unanimous. Item S. Declaration from Council President President Johnson — Breaking from my short tradition, we have a special presentation ' this evening. I would invite and I'm gonna say it like her husband says it Janine lacolo to come up to the microphone along with the Mayor, part of the Relay for Life. Janine Iacolo — Good evening. My name is Janine Sadowski Iacolo and I am here this evening to give you an update on the Relay for Life of Agawam which was held at the Agawam High School field on May 19th and 20th of this year. Being the first year, the goal of the event was set at $30,000. Some people expressed concern for this and wondered whether our community would be able to reach this level however I'm truly pleased to report that not only did we meet that goal but we have surpassed all expectations! As of this morning, our total stood at just under $45,000. (APPLAUSE) More money is still coming in so we know that we'll reach close to $50,000 if not over. I want to thank the City Council, the School Committee and the community for helping to support Relay for Life and the American Cancer Society to make this Relay for Life of Agawam a huge success. I have a small token to offer. Mayor, on behalf of the Relay for Life of Agawam Committee for which I was Chair, I'd like to recognize the Town of Agawam as a supporter of the 2012 Relay for Life of Agawam — for you to hang proudly —and we truly appreciate everything that everyone did to support us and we look forward to a successful Relay next year. (APPLAUSE) Mayor Cohen — I Just want to say thank you to the Relay for Life and all the councilors that were there and myself but the real applause goes to Janine who really did a lot of hard work. It was a great event. The town should be proud and she's taking a little break and then we're gonna be calling on all of you to help us so that next year, we can double that and make*it $90,000 or $100,000 because it was a great event. Thank you, Janine, from the Town of Agawam to you for all you did and for the Relay for Life in the name of finding a cure for cancer. Thank you. rPresident Johnson—I echo those sentiments on behalf of the Council. Item 6. Presentation of Petitions, Memorials& Remonstrances 1. TR-2012-27 -A Resolution Authorizing the Adoption of Orders of Taking for the Phase II Southwest Area Sewer Extension Project under the Authority of Section 14 of Chapter 40,Chapter 79 and Chapter 84 of Massachusetts General Laws (Tabled 6/4/12) (Referred to Administrative Committee) (Mayor) 4 President Johnson —That item is on the table. ' Councilor Calabrese—Motion to remove from table. President Johnson — Prior to Motions being made, I believe a Motion to take the items out of order would be in order at this point since we have to approve TR-2012-33 prior to 2012-27. The appropriation has to happen before the taking happens so is there a Motion to take our Agenda out of order so we may undertake TR-2012-33? Moved by Councilor Calabrese, seconded by Councilor Rossi. All those in favor of taking the items out of order say Ay? Any opposed? (4.) TR-2012-33 -A Resolution Requesting the Expenditure of Funds for Land Taking and Easements for Phase II of the Southwest Sewer Extension Project(Councilor Rossi) President Johnson — Is there a Motion? Moved by Councilor Rossi, seconded by Councilor Mineo. Councilor Rossi as Chair of the Admin Committee? Councilor Rossi—Thank you Mr. President. The Admin Committee met concerning this matter and voted unanimously to send a positive recommendation to the City Council for passage. President Johnson — Any further discussion? Stepping from the Chair. I've spoken at the Admin Committee two meetings ago. You all know my feelings regarding this. The cart is so far in front of the horse it's not even funny. At this point, Phase II is estimated t at a ball park number of$11 million. There's approximately one hundred homes that will be served by that $11 million. That's in excess of$100,000 per home that the sewer will go by. Last year in December the Council raised sewer rates by 30%. Phase II will result in approximately a 40% raise in sewer rates. Later, on this evening's Agenda, the Council will be, if the Admin Committee's recommendation is adopted, abating over $850,000 in sewer betterment assessments from Phase I which will cause another rate increase in the sewer rate. At this point, prior to us taking people's land to do a project that has yet to be approved, I believe that this should all be done when the project is placed before us, when we approved the funding for that project and when we can intelligently tell the rate payers in Agawam what their sewer rates are gonna go up as a result of the project but more importantly we can also tell the home owners that will be affected by Phase II what realistically the betterment assessments are —because it won't rbe $2,341 per house like it was in Phase I. Again, the true cost of this is in excess of $100,000 per home that will be served. That's a significant expenditure and at this point, this calls for the appropriation of$55,000 to take people's land. It doesn't make a lot of sense to take people's land unless you've approved the project to move forward so I would encourage the Council to do this responsibly and prior to taking the land and prior to moving forward on this, we should look at the entire project to see if it's something that we will ultimately fund down the road. It's $1 lmillion! It will require at a minimum and these figures, I talked this morning with the Mayor, would require a minimum of ' another 40% increase in sewer rates to accommodate this project. Rates that again were 5 just raised 30% last year. So again I'm not saying that I'm against the project but at this point, what I'm saying is it doesn't seem intelligent to spend $55,000 to take people's land for a project that we have yet to approve and I think that before we move forward, we should have all of the information. What the impact on rates is, what the potential sewer betterment assessment's gonna be on all those homeowners. Several councilors have talked about mandatory connection which Agawam abandoned some time in the last decade; most other communities that do sewer expansion require that homeowners who have the sewer pipe laid in front of their house connect. We spent $3.8million on Phase I and as of this morning, we have one home, ONE HOME, in process of connecting to that sewer. ONE! $3.8million — one.home! So let's get the horse back in front of the cart here and be responsible. Thank you. Councilor Rossi? ' Councilor Rossi — Thank you. The item that we have before us, Item 2012-33 is $55,000. The appropriations are to be taken from the money that's already been ' appropriated under Phase I so we're not appropriating any additional money. It is my understanding that we need to take these lands in order to have these pumping stations in place in order to get this Phase II underground. We cannot continue with Phase 11 until these pumping stations have been appropriated, the land taking has been taken and is in place. As far as the projections for the costs, I'm waiting for Tighe & Bond to come back with the Director of DPW to give us an analysis. I've been trying to get together with both of those people along with our Treasurer to get a more accurate figure and I'm in hopes that we won't have with this phase that we had in the first phase, miscalculations in our assessments which led us to some of the problems that we've had. Hopefully we can learn by those experiences and we can move forward into Phase Il. That being said, there might only be one person or one homeowner that has hooked up to this system. The real problem with this is and as I mentioned before the project ever got off the ground in Phase I, we've had the discussion over and over and over again, we needed to start where we did. There was no other way to start this project except at the beginning so it was decided that we would take these in bite-sized pieces in six phases, $3.7million per phase. The Phase II project that we have in front of us now is a combination of Phase Il and III because it was decided that we shouldn't build the pumping stations without at least ' bringing it to a full loop affecting some people in that area to get sewers which is Phase Il will go all the way back down Barry Street, Pine Street and back up and hook in to make the loop complete on South Westfield Street again. That is a vital piece to this entire project. This whole system, the sewer system in Feeding Hills and South West section, is vital to the Town of Agawam. This is gonna expand our tax base. This is gonna give us the economic stability that we're looking for in the future. This project has to go ' forward. Yes, we did appropriate $3.7million for this entire project but the construction cost came in at $1.6million. As you can see fifty percent under bid, that's quite an accomplishment. The balance of that money was used for design and engineering phases ' for Phase II and III, the pumping stations in this phase that we have going forward today. So we've got quite a bit of a jump into this phase when, in terms of dollars and cents. So the only thing we really have to come up with is construction cost for 21,000 feet of pipe ' and the building of two pumping stations. As I said earlier the design and engineering has already by phased, paid for out of the first phase - $3.7million — and of that $3.7million with that said about the design and engineering, we still have some $600,000 1 ' 6 ' left over that can be applied to the Phase II project. So as you can see that this project is well-managed. Yes, we have had some difficulties as I have said before but hopefully we're gonna profit by those mistakes as we move into Phase II. I encourage this Council that we've started a most valuable project in this community, a project that must be seen to its completion. It's vital for the community that this project be completed and those ' people who are affected, not only those people who need these sewers immediately, if history's taught us anything about septic systems, they will fail and when they do fail, those people out there in that area are gonna want us to bring sewers in and they're not gonna care how we get them to them but if we don't start now, when those septic systems fail, there's no way we're gonna get them there at the time of their need. So I encourage the City Council to appropriate the money, do the land takings on this and then we can sit down and make a projection and come up with some realistic figures on what it's gonna cost us and then we can inform the community as we did on the first phase what their rates will go up. The rates that went up, that President Johnson just alluded to; 24 cents of those increases were attributed to the Southwest Sewer project — 24 cents. That's it! So I urge you to give us the vote on this. Let us move forward. Let us come out with some sane and sound projections and then we can get back and get this project underway. Thank you. ' President Johnson—Councilor Calabrese? Councilor Calabrese—Thank you. Through the Chair, Councilor Rossi —do we have an estimation as to how many homeowners actually intend to hook-up to the sewer project once it's in place? ' Councilor Rossi-- I don't have those figures in front of me and that's not something that we thought very much about in the beginning because it was necessary, the way we started this project, it was necessary to start at Route 57 and work our way around. That was the only way that we could keep connecting the people to the system and have the system be active when they hooked up. A lot of people wanted us to start in different areas but there was no way we could get those to the system. So to answer your question probably the easiest way possible is no. We didn't really send out a survey as to how people who are interested in hooking up. I'm hoping that people will hook up. We talked about having people hook up within a certain period of time and I'm hoping that ' people will do that because once we bring the system out there, the sewer system out there, I think it's part of the responsibility of the homeowners in Agawam to do their share, to pay their fair share of the system. The Town of Agawam has gone through a ' great length to get this system out to them, by hooking in to the system everyone in Agawam will be a rate payer and that will defray the cost considerably—the more people we have on the system, the less it's gonna cost. But I'm hoping that when we put the projections together for the final cost of Phase 1I, we'll have that information for you. President Johnson—Councilor Letellier? ' Councilor Letellier — Yes, thank you. I think that we really need to consider the mandatory connection because if we're spending all this money and people are waiting 7 ■ for their Title 5's to fail, then you have the rest of the town paying for the luxury of the people in the Southwest corner waiting for their Title 5's to fail and I don't think that's fair to the rest of the town and I know that I'm on the Legislative Sub-Committee group and I think that that's something that we need to look at. I don't have a problem starting the land taking now because things are always contested and you're always gonna have people that don't think it's the right amount and you may have to go to court and so I'm not concerned with using the $55,000 to start the land taking process but before we make a final decision to vote on the project and to spend money, I think we need to have a really thorough discussion about mandatory connection because if we don't, I think we're doing the town as a whole a disservice. Thank you. President Johnson — Any other discussion? The item requires — I'm sorry, Councilor Perry? Councilor Perry—Yes, thank you Mr. President. You know I just want us to understand and I understand where Council President Johnson is coming from. I've been involved ' with this project for as long as it's been before the Council and it's a project that's been talked about for forty years — thirty years at least anyways. It's vital that we get those services up to that portion of Feeding Hills. I look at it as an investment that we're ' making in our community for the future. It's going to raise the property values up there. It's going to open up to new construction. In regards to Phase I that's completed, we do have the other issues in regards to the DePalma property but if that goes through and he builds up there on those two pieces of property, there's a lot of money that's going to be coming in from those condo units that he's going to be putting in there. We have to look long term some times and thirty years ago they looked at it and they said no. It would ' have cost probably five million dollars for the whole project back then. The longer we delay it, the more cost it's going to incur to the town and to the taxpayers in the long run and we've got it going. We knew where we had to start as Councilor Rossi said, Phase I and Phase II is not gonna get a lot of return on it's investment but as we continue to complete all phases of this project over the next ten, fifteen years, the town is going to reap the benefits down in the future — for new construction, property values and everything else — so I really feel we need to keep moving forward with this project. Thank you. President Johnson — Councilor - I don't know which one had their light on first -- Councilor Mineo then Magovern. Councilor Mineo — I was the Chairman of this committee from 2000 to 2008. I think I was the one who started this back in 2000 with a group of folks here and the citizens that live in the Southwest section. I'm still in favor of this project. I've always been in favor of this project. I think the project needs to move forward. We've made the investment so far. I think there's still a desperate need for the folks that are in that area to get some relief. I'm gonna support it tonight and I'll keep on supporting it. Again, I understand what Council President is saying, I think we'll address that when we get to that point but at this point, I think we need to move forward. 8 President Johnson —Thank you. Councilor Magovem? Councilor Magovern — I just like to reiterate a little bit about what's been said about the new tax dollars that will be generated. Right now the DePalrna condominium project is not finalized yet. If it does get finalized and I hope that he's encouraged to build those condominiums up there, just that one project alone could generate close to $600,000 a year in tax revenue and with that as one project and the other new construction projects that could follow along with that one up through that phase sewer area, I think that the town's gonna be in a win/win situation if we go forward with the sewers, not to mention the people that do have tremendous septic tank problems right now that have to be addressed. So I'm supporting the project. Thank you. President Johnson — Any other discussion? The item requires eight votes. I'd ask the Clerk to call the roll please. ROLL CALL —9 YES, 2 NO Councilors Calabrese and Johnson) ' President Johnson —With a vote of nine yes and two no, you've approved TR-2012-33. 11. TR-2012-27 -A Resolution Authorizing the Adoption of Orders of Taking for the Phase II Southwest Area Sewer Extension Project under the Authority of Section 14 of Chapter 40, Chapter 79 and Chapter 84 of Massachusetts General Laws(Tabled 6/4/12) (Referred to Administrative ' Committee) (Mayor)) President Johnson —That item is currently on the table. Is there a Motion to remove the item from the table? Moved by Councilor Rheault, seconded by Councilor Rossi. All those in favor of taking the item off the table, say Ay? Opposed? The item is off the table. Is there a Motion to approve TR-2012-27? Moved by Councilor Rheault, ' seconded by Councilors Magovern and Rossi. I don't know— the last item encompassed this item so I don't know if there's a separate report from the Admin Committee? ' Councilor Rossi—No, the Admin Committee sends a recommendation for approval. President Johnson — Any discussion on TR-2012-27? This item requires six votes. I'd ask Barbara to call the roll please. ROLL CALL—9 YES,2 NO (Councilors Calabrese and Johnson) ' President Johnson—With a vote of nine p You,no,es two you've approved TR-2012-27. Y 2. TR-2012-31 -A Resolution Authorizing the Reservation and Appropriation of Funds from the Community Preservation Fund (CPA) ' President Johnson — Is there a Motion? Moved by Councilor Letellier, seconded by Councilor Perry. Questions or discussion? This is a housekeeping matter to allow us to 1 9 ' appropriate the current balances in the funds. Seeing none, I'd ask Barbara to call the roll please. ROLL CALL—11 YES, 0 NO President Johnson—With a vote of eleven yes, we've approved TR-2021-31. 3. TR-2012-32 - A Resolution Accepting a Gift from Mario Tedeschi and Sam Hajrizi pursuant to Massachusetts General Laws Chapter 44, Section 53A `/a for the Agawam Municipal Golf Course (Mayor) President Johnson — Is there a Motion? Moved by Councilor Magovern, seconded by Councilor Cichetti. Questions or discussion? For the public's information, these two gentlemen have agreed to donate approximately $3,500.00 in materials and labor to do some construction around the first tee at the gold course. Any questions? Discussion? Councilor Magovern? Councilor Magovern —I'd just like to thank them very much for their generosity. President Johnson— Seeing no further discussion, I'd ask Barbara to call the roll please. ROLL CALL— 10 YES, 0 NO, 1 ABSTENTION (President Johnson) ' President Johnson — With a vote of ten yes and one abstention, you've approved TR- 2012-32. 5. TR-2012-34 - A Resolution Requesting the Agawam City Council Petition for the Enactment of Special Municipal Legislation Changing the Term of Office of the Mayor,City Council and School Committee from Two Years to ' Four Years(Community Relations Committee) President Johnson — Is there a Motion? Moved by Councilor Calabrese, seconded by Councilor Cavallo. Is there a report from the Community Relations Committee? Councilor Calabrese — Yes, first of all, I just want to thank George Bitzas, James ' Cichetti, Paul Cavallo and Dennis Perry for joining me in sponsoring this Resolution and also Richard Theroux for his assistance in putting this into the proper form. This is a matter that has been talked about several times in the past about extending the term of ' office and our rationale basically is two-fold. There will be a minor cost savings to the town and I'm always in favor of trying to save the taxpayers some money to the tune of about $10,000.00 but also it will give the elected officials an opportunity to have some breathing room so that you're not always coming off an election or campaigning for re- election. I remember my first term on the City Council, even though you do your home work and you get ready so that you can hit the ground running come January, there really is a learning curve to serving in public office and then once you get your year under your belt then you have to turn around and run for re-election. This is gonna give everybody an opportunity to really do some long-term planning, some long-term projects that maybe 10 we talked about and just haven't had the opportunity or the cohesiveness of our legislative bodies to get them and the thing that's important to remember is ultimately it will be the voters of Agawam that are gonna have the final say on whether they want their elected officials to serve a two or four year term. So the process, if this is approved tonight, it goes to the general court for their approval and then it will appear on the ballot as a binding question in the next municipal election. I do want to just address something that had come up in our conversations and that was Teresa Kozloski had brought this up tonight and that is the idea of a staggered term. We had considered that, the actual implementation of a staggered term would be somewhat unwieldy and I think that this is a really good first step. So what I would encourage my fellow City Councilors to do is to vote yes on this this evening, let the voters have their say. If they feel that they want their local officials to serve a four year term, so be it and that's all that I have to say. Thank you. President Johnson—Councilor Letellier? Councilor Letellier — Yes, I just wanted Councilor Calabrese to clarify something. So it's gonna go on the Fall 2013 ballot and then if it passes, then whoever is elected in the Fall 2013 election would serve all four years, correct? Councilor Calabrese—That's correct. Councilor Letellier—I just want to make sure the public understands that. Okay. President Johnson —Other questions or discussion? Councilor Bitzas? Councilor Bitzas -- Yes, as a member of the committee, I co-sponsored the Resolution but for me, I have no strong feelings one way or the other but the people should give the right to say yes or no and I respect that and I'll support the Resolution. Thank you. President Johnson —Other questions or discussion? Councilor Magovern? Councilor Magovern —I feel the same way as Councilor Bitzas. One way or the other, I really don't care but by the same token I think that with the four year term, it does take the politics out of the Council somewhat because you're not always back biting, trying to look forward to that two-year election so it's up to the citizens of the town to go the way they want to go. if you feel that it's a good idea that the Council and the Mayor and School Board to serve four years, then go in and vote and support it but I really feel that it would eliminate some of the politics and it would be a lot smoother to have a four-year term rather than a two-year term so I will also be supporting it this evening. President Johnson —Councilor Rossi? ' Councilor Rossi — Thank you. I'm in favor of letting this go to the voters although I have some thoughts concerning the staggered terms. I thought that that probably would be a good idea. I think we would get more people interested and involved in the mayoral race for one but then I have a question. As I read this and I don't know if I read it 11 accurately or not or understood it accurately, once it goes through the voters, can we change that at some point down the road to staggered terms or maybe term limits or anything like that or do we have to accept it as it is? Councilor Calabrese — Once this question is passed on the ballot, it all becomes a four- year term. That doesn't tie our hands to do this process again if we do decide that we want to yes, take a look at staggered three-year term, whatever might be appropriate. We always have the power to go through this process again. 1 Councilor Rossi — Well, I understand that but there's really no point to do that. So the committee just didn't, that's something that we just didn't consider, right? Councilor Bitzas — Point of information. If we decide here that the one reason to support this is to save money to the town, $15,000, with the staggered term we have an election every year so it's defeat the purpose. Councilor Rossi — Well, my question, I thought that maybe the Mayor's race and the Council race could be separate. Now say for example a councilor wants to run for mayor, he loses he seats as he probably wouldn't if they were staggered and that was just a thought. I mean it doesn't matter but it was just a thought. President Johnson—Further discussion? Councilor Cavallo? Councilor Cavallo — Yes, as a member of the same committee, first of all I'd like to thank Richard Theroux if he's still here. He did a wonderful job assisting our committee and working with the state and other officials to draft a Resolution —that's the first point I wanted to make. The second point is that I'm the only on that's sitting up here that's served on both the School Committee and the Council and I can rest assured, I felt the same way in both cases that Councilor Calabrese alluded to. The first year on the School Committee and the first year on the Council, it's a learning process and by the time you get to that second year, you may be right in the middle of a lot of issues, you may be on important committees that are involved in those issues and yet you're taking a back step for a little bit because you are running for office. There's no question about it. I know right now the way that President Johnson has reorganized our committees, we handle many more subjects, areas of our j ob and we meet quite often to handle these and we've got a lot of things going at one time and they all can't be done -- like another project we have going with our committee with the Cecilia Calabrese — it will take us I'm sure another three or four months to resolve before we get a resolution going and if this were the second year of the term and we were acting on it in the second year and we're all up for re-election, think about where we'd be if some of us who are on this committee are not re-elected, it's almost starting the process all over again. Again, I also think it will encourage a lot of people to run for office too. There's no question about it. I think there'll be a lot of contenders. Like the School Committee had six people run and six people were elected. That's unheard of, never happened, if I'm correct Mr. Theroux, in the history of this town. I remember the first time I ran for School Committee —thirteen people ran, thirteen people ran in 2004 I believe I ran and since then it's just gone down. 12 1 I don't know if there's no interest or what the story is but again I support this. The committee has worked hard on it and Councilor Calabrese has done a good job along with Mr. Theroux's help in putting this thing together so again I applaud you both. Thank you. ' President Johnson —Any further discussion? Councilor Rheault? Councilor Rheault—Yea, I've been sitting up here longer than not all of you but close to it I guess and I have mixed emotions about going to four years on any part of it however I ■ would never deny the public the opportunity to express their opinion and I will support it for that particular reason. President Johnson — Further discussion? Stepping i from the Chair, I share Councilor Rheault's reservations. I'm the only person in Agawam's history that's served on all Lthree Paul—mayor, chair and City Council —and Councilor Cavallo — But I didn't say, I didn't mention that, I lost the other one! (LAUGHTER) President Johnson — I have concerns because when you go to a four-year term, our Charter has no provision for recall and I understand the politics of recall but we have no way to get an elected official out of office short of them committing a felony which under state law we could remove for. Short of that, there's no recall provision in our Charter and never has been. When there's a two-year term, you can live with it for two years; it's much more difficult with four. I also believe that staggered elections should be looked at 1 because it's not a question of saving the $10,000 every election cycle; it's the question of the daunting task of potentially facing 22 candidates for Council, 12 for School Committee and 2 for Mayor. When you walk into the voting booth, it's awful difficult when there's one forum in the election cycle for Council and School Committee, that's it, where each council candidate gets maybe a minute or two on four or five questions to get their positions across to the general public. If they were staggered and only half the Council were up every two years, you'd have more interest and more ability to ascertain but as with Councilor Rheault, I have my reservations about this but I will give the people the option to vote for it or not at the November 2013 ballot. Further discussion? ' Seeing none, it requires six votes. Barbara, call the roll please. ROLL CALL— 11 YES, O NO President Johnson—With a vote of eleven yes, you've approved TR-2012-34. ' 6. TR-2012-35 -A Resolution Authorizing the Mayor to Enter into a Lease Agreement for Use of the Tuckahoe Turf Farm Property Located in the Feeding Hills Section of Agawam,MA by Joseph Calabrese(Mayor) President Johnson — Is there a Motion? Moved by Councilor Letellier, seconded by Councilor Cavallo. Questions or discussion? For the public's information, the town since probably we acquired Tuckahoe Turf Farm has regularly leased it out to farmers. 13 This is just the latest round of lease renewals and extensions. Any discussion? Councilor Letellier? Councilor Letellier — Yes, thank you. At the Capital Improvement or as part of the Finance Committee's review of the Capital Improvement budget, I noticed that when we 1 got the Special Revenue fund print out for the year, that we had yet to get a lease payment for Tuckahoe Turf Farm and I've been told that it will be in this fiscal year and once we have that lease payment, we will have more than enough money in the Tuckahoe Special Revenue account to pay off the bond completely instead of continuing to include it in the Capital Improvement project and I brought this up to our Auditor's attention and I think the ultimate decision falls with the Mayor but I'd like to see us use the money in that Special Revenue account to just pay off that bond unless there's a pre-payment penalty and I asked that to Cheryl and she didn't know and then once the bond is paid off I think we really need to investigate if there are other legal things that we can use that ' money for because if you look at the beginning of your budget book, when you have the Special Revenue funds it says for `debt service'. Well once the debt service is gone, what else can we use that money for and I think that's worth investigating further. So whether it would be via a memo to Vince or if Vince is here, I did bring it up also at the budget committee one meeting because none of the, in our list of budgets there's no committee assigned for those Special Revenue funds and so I brought it up at the Budget#1 hearings as well cuz I think it's worth investigating what to do with this money now that we have a steady stream of revenue. It's not a lot of money but it adds up over time. Thank you. President Johnson — Other questions or discussion? I agree. I'll follow up with the Mayor. Seeing none, I'd ask Barbara to call the roll please on TR-2012-35. ' ROLL CALL -- 11 YES, 0 NO ' President Johnson—With a vote of eleven yes, we've approved TR-2012-35. Item 7. Report of Council Committees i None. ' Item 8. Elections None. 1 Item 9. Public Hearings ' 1. PH-2012-2 - (TR-2012-29) A Resolution Adopting the Fiscal Year 2013 Annual Operating Budget for the Town of Agawam (Mayor)l President Johnson—At this point, my plan as Chair is to have a Motion and a second on TR-2012-29, ask the Council to go into Committee as a Whole for the Mayor to make his budget presentation to the Council. At that point when the Mayor is done, we'll open it up to questions to the Mayor and his staff. After that we'll get the budget sub-committee 14 reports and then open the Public Hearing. Seeing nobody screaming at me saying no, the Chair will entertain a Motion to approve TR-2012-29. Moved by Councilor Magovern, seconded by Councilor Letellier. At this point, the Chair will entertain a Motion to go into Committee as a Whole for purposed of allowing the Mayor to make the budget presentation to the Council and those members of the public that are here. Moved by Councilor Calabrese, seconded by Councilor Rheault. All those in favor of going into Committee as a Whole say Ay? Any opposed? We are now in Committee as a Whole. Welcome Mr. Mayor. The stage is yours. Mayor Cohen — Thank you Mr. President. I appreciate it. Welcome to everybody. Thank you. You all should have received a booklet in front of your this evening to follow along but before I begin, I want to thank all of the Budget Sub-Committees for having their meetings and accepting or some use the term accepting, some use the term approving, the budgets before them. I also received letters from some of the sub- committees. You should have all your answers in front of you. I know Councilor Calabrese, thank you, you got your response. Mr. President I sent you your response on the storm. I thank you for that and Councilor Letellier we sent hopefully we have answered all of your questions and I can tell you when we get to Laurel we have investigated that for you and we have answers for you. So I want to thank all of you for accepting them but most importantly for helping in your due diligence with the process ' because it is teamwork that we all do together. As you can see, the FY2013 is complete. You received it early this year, prior to May 15`h and the restoration of local aid brings us now to FY2009 levels. In the past, we've been at 2003/2004 levels. The FY2013 net state receipts anticipated to increase by $1,196,600 over FY2012 and that's $308,000 greater than FY2009. The Senate budget for FY2013, the local aid has increased by $1,220,083 also almost a half a million greater than FY2009. State assessments increased $23,483 over FY2012 and our assessments are $129,000 greater than they were in the year 2009 but it is restored to those levels. The Fiscal 2013 Budget Revenues, we have 1 limited utilization of Unrestricted Available Funds otherwise known as Free Cash which helps to keep our bond ratings low, our borrowing limited and keeps our bond ratings high, I apologize, keeps our bond ratings high and our borrowing lower. New growth this year, we are very fortunate and it's estimated at $2,760,000. That's money that we can use from new growth for Capital projects because I don't want to use that for any kind of operational funds because then next year, we could be in a deficit so we didn't do that. Our real estate tax estimate increased only by 1 '/2 %. We did not raise 2 '/2 % which we could do by law. I only did 1 '/2 %. Agawam continues to be one of the only few communities to never seek an override or a Proposition 2 'f2 and we are probably the only ' community in the Commonwealth that has an excess level capacity of $6.6million. Staffing levels have been carefully reviewed. Personnel positions were carefully looked at. The Senior Clerk position was restored at the DPW. One person has been running that department alone for four years. She's done an exceptional job and they do need the help. Vacancies continue to be left open. The following positions were not budgeted — there's an Administrative Building half time Senior Clerk; the Clerk's Office — a half time Senior Clerk; Treasurer's Office — an Assistant Treasurer; Inspection Service — half time Code Enforcement Officer; and the Police Department —we continue to pay half of the Animal Control Officer and the other part is paid by the West Springfield Police 15 Department and that so far has been working. So we're always looking to save money and be creative. We still have some positions such as the mechanics and CDL drivers that have not been filled so some day we hope we're at the levels where we can continue to operate at one hundred percent but until we're at that point, we are doing more with less employees. If you look, it's the lowest level of Unrestricted Available Funds or Free Cash as they use the term that's been utilized in ten years. There's been anywhere from $2.5million, last year I used $1.5, this year I'm only utilizing $1.25million so it's less money we have to burden the taxpayers with. It's through fiscal budgeting that we end up with Free Cash and we're very happy that we're using less and less each year. All collective bargaining agreements are fully funded through June 3001 and we have notified all Department Heads to get ready to begin the process because we will be beginning that process very soon. The Fiscal 2013 budget highlights — the School Committee budget did increase by 5.9%. It's at $36,488,490. The Town Operating budgets increased by 5.41%. We've retained all critical town and school services. We have no fees. Benefits and insurance increased by 1.88% and we did reserve, the Reserve Fund we increased by $100,000. If you remember last year, we cut money from the city's side and gave it to the schools and we cut our Reserve Fund in half. The DOR doesn't really like that when we do that but they've been nice and understanding. We've been very careful. I've said no to a lot of things that could have been done. We only utilized $5,000 at this point but we are looking at storm-related costs and payments with some of that possibly. We also, before you on your Agenda under New Business, is OPEB. The Trust Fund established for future retirees' and medical insurance which needs to be done by law. Our Fiscal ' Year 2013 budget, I have to thank all the Department Heads, all the School Committee and the City Council as they had meetings. 52.24% of our budget is education of which approximately 70% is for teachers and salaries but without good teachers, we don't have schools and our schools and our ratings and our graduation rate is just, I think, we are really doing a spectacular job in educating our children and I have to commend our Superintendent, Mr. Sapelli, and all of his staff and administrators for a job well done. ' The chart breaks down which is self-explanatory —public safety is 11.3% but we want to make sure our Police and Fire and Emergency Management and that the people who live in town feel safe. What brings people to town? Great schools, good public safety, good ' library and low tax rate and so far we've been lucky to achieve that. Benefits and insurance are again 17.3%. I can tell you Health Insurance went up about 2%. Education, the appropriation you can see it's an increase of about two million dollars. The town continues to pay school portion of all the property and liability and the benefits and insurance line items include pension, health, dental and life insurance for all School Department retirees. Public Safety -- we still have the ambulance service continued in ' Feeding Hills. Four firefighters are paid out of the ambulance service. We did increase the Fire Department overtime to $375,000. Funding on one Police Office/School Resource Officer for the High School is funded through our Police Department and Science College, the Quinn Bill, is funded at $427,892 with no contribution from the State as they no longer contribute to it but these are people who have been getting it and I don't feel that we should be taking it away from them. In Public Works, one senior clerk position reinstated in the DPW Administration. Capital Improvement appropriations include a $50,000 increase in highway equipment, capital expenditures for Public Works Street Improvement Program $150,000.00; Highway Equipment $200,000.00; Sidewalk 16 Rehab is $5,000. We reduced it because there's still money in the carry-over. He should have about $45,000/$47,000 to do sidewalks. Mr. Golba now having been there has put together a plan so we hope to see more sidewalk improvements as we have been seeing along Main Street and some of the other areas; solid waste budgeted increase $173,000; weekly trash pick-up is continued at no fees and yard waste is also continued. Next is culture and recreation, an increase of 1.38%. Library budget increased by $7,240 that's a number we have to meet for the library state certification and to get aid from the state. State aid to library is expected to be about $36,474. Park and Rec services are maintained and the Council on Aging increased by about $3,800. Human Services — an increase of 2.39%. The Western Hampden District Veterans Services assessment increased about $2,700 to address the additional needs of Agawam's veterans. Our share did go down because Russell is now a part of our community. You have to have one city and so many towns and we are now servicing Russell so our share has decreased but the need for benefits has increased. Part-time nurses included, we have Health Department continues to fund all of the full-time nurses at all schools and the part-time nurses to include coverage at all school one hundred percent of the time. General ,government, you'll see is up 6.7%. Property and liability insurance increased S197,000; a vacant position of a half-time senior clerk unfilled in the Clerk's Office and staff reduction continued in the Treasurer/Collector's Office. Debt principal and interest, you'll see it only went up 1.46%, part of that is for the Building Maintenance Building extension, the town-wide telephone system and on the next page, you'll see the debt principal and interest, the projects — the largest that we still have is the school additions and 1 renovations I and II that go back to 1995 plus all the, we have the Middle School roof which we had to do as everybody remembers when that had a bad leak. The Agawam Public Library, aerial platform trucks, Phase 11 storm water, the DPW, fire pumpers, Senior Center, Perry Lane and you can see what it amounts to. Benefits and insurance increased 1.88%. Medical Claims Insurance includes dental, health and life insurance for both School and Town employees and retirees. Medical insurance increased $98,000 with coverage continued for retired and active employees but that's retired employees under the age of 65. Contributory retirement increased $281,000. Property & Liability went up a small amount. Property & Liability insurance includes all insurance for both Town and Schools, contribution to Worker's Compensation Trust Fund anticipated at the end of Fiscal Year 2013, School Department contributions eliminated from the School Budget in FY2011 and continue to be funded through the General Fund Budget. The Personnel Department continues to administer all Workers' Compensation claims and has done a fantastic job at doing so. The Reserve Fund as I said, we did increase it by $100,000. I feel a little more comfortable with that. That used to be funded at anywhere from $500,000 to $600,000 and by DOR standards should be set at a specific amount based upon our budget and town's size but we did increase it by $100,000, This is available for Council appropriation, for emergencies and unforeseen expenditures during ' the year. The Reserve Fund is $50,000 below FY2011. The OPEB Trust Fund that I mentioned earlier, the fund is established at $100,000. The Government Accounting Standards Board (GASB) Statement No. 45 and I'm sure Council President Johnson remembers this when he was mayor, it's an actuarial liability for the benefits other than pension for all anticipated retiree costs such as medical, life and dental insurance. The bond raters ask us every time when are we doing it. We've been telling them soon, soon, 17 1 soon well soon's come so we are establishing it. You have it on o Agenda d e g u your g an a Trust Fund is being established to begin funding the estimated future liability as required by GASB 45. Self-sustaining Departments, the Waste Water budget increased, increased debt service for Phase I of the Feeding Hills Sewer Extension, the water spending has increased, the cost of purchasing water has increased, the Golf Course budget decreased by 6.85%. I have to commend the new personnel and staff that we have there and the Golf Commissioners. I don't know if people have been there but all of the reports that I'm getting have been phenomenal. The courses are well-defined. The sand traps have sand, no weeds, and the place looks spectacular so my hats off to Mr. Anthony Roberto and Dan Shea for the exceptional job they are doing there. The Capital Improvement appropriations, we did put a lot of the increases in this area — Hampden County Land which is mandated by the land that we purchased on South West Street and also on School Street; street improvement program, public works equipment, sidewalk rehab, permit tracking software, Fire Department motor vehicle —he has a decaying car that the bumper is falling off and the chasis is breaking. The Deputy is driving it. It's not safe. He takes it home to Feeding Hills and I want to make sure that when he leaves Feeding Hills that he can make it to a fire. It's the cost of doing business. It's a 1994 Crown Vic with I don't know a couple hundred thousand miles on it. So for his safety, Fire Department Protective gear, Town Hall emergency generators R25%, FEMA — we put an application in for Emergency Management, Chet Nicora, Mike Nicora, and myself and they will pay for a generator at Town Hall 75% of it that if there is an emergency or another snow storm, it automatically flips on. The Town Hall will be up, our computers ' will work and I think it's a great idea and long overdue. Police Department HVAC system is needed, it's necessary and unfortunately we have to do that. The October 29th storm costs, you should have received the packet but just quickly, the storm costs have ' been submitted and are being reviewed by both FEMA and the FHWA (the Federal Highway) reimbursements will range from 75% for FEMA to 100% for FHWA (federal) roads. Town share of non-reimbursed costs will be determined by FEMA and Federal Highway in the fall of 2012. Non-reimbursed costs will be funded in the fall by either appropriation from Free Cash, Stabilization funds, other available funds, borrowing, property taxes or a combination thereof and this budget certainly was prepared with ' consideration of the potential for unreimbursed costs. Our cost is approximately, if we're reimbursed for everything that we submitted at the 100% and 75%, approximately one million dollars and that concludes my budget presentation and again I thank you all for indulging me in presenting this and also for your support in the budget sub-committee meetings. Thank you. ' President Johnson—At this point, the floor is open for questions from the Council to the Mayor and staff. Are there any questions? Councilor Letellier? Councilor Letellier — Yes, thank you. Thank you, Mayor. I went through this binder when we got it this evening and we didn't have it earlier so forgive me if my question is something that you went over. I'm looking at the Budget Summary and it says Local Aid estimated Cherry sheets $23,074,045 and then right here I believe it's the first page, you talk about increase in net state receipts. So what are we anticipating above the $23,074,045? 18 Mayor Cohen —That's an increase over last year's number that you see in the booklet. Councilor Letellier -- Right so that's why I'm wondering what it is gonna be above the $23,074,045 that's in the proposed budget? ' Mayor Cohen —The proposed budget is numbers that we have currently from the state. It's the Senate numbers, it's the House numbers — House 2 I believe — that's House 2 ' numbers and we won't know until the Governor signs the budget. Councilor Letellier—Right but in your, in the first page of your handout, you say Fiscal Year 2013 net state receipts anticipated to increase $1,196,600 so when you, how does that compare to the $23,074,045 in the budget? ' Treasurer Laurel Placzek—That's this year's local receipts less this year's assessments versus last year's local receipts less last year's assessments. The net of those is that increase. Councilor Letellier — I g trying g guess what I'm tr in to figure out is how much additional amount above what you have for estimated receipts in the budget are we expecting? Or is this figure inclusive of what you put in the handout? Treasurer Laurel Placzek—This is the figure we had when the budget was completed. Councilor Letellier— So that hasn't changed. Treasurer Laurel Placzek—No. I Councilor Letellier— Okay, but my understanding is that the state IS proposing to give additional funds since this budget's been printed. ' Treasurer Laurel Placzek—The Senate portion of the budget has another $250,000 in it but that has not gone to, the Governor has not signed that as of yet. Councilor Letellier—Okay, so that's where, okay, thank you. President Johnson—Other questions? Councilor Perry? Councilor Perry - Yes, thank you. Through the Chair to probably Laurel, you mentioned Reserve Fund in your presentation; do you have a balance of what actually is in the Reserve Fund? I'm sorry? Treasurer Laurel Placzek -- The Council has appropriated $5,000 from the Reserve Fund this year. Councilor Perry—No, I mean what is the Reserve Fund total balance? 19 Treasurer Laurel Placzek- $245,000.00. Councilor Perry - $245,000.00, okay. Now that carries over year to year? Treasurer Laurel Placzek-No, that closes. Councilor Perry -That closes and goes back into Free Cash, eventually. ' Treasurer Laurel Placzek- Fund balance. Councilor Perry—Fund balance, okay. If we look in, and I apologize because we really didn't touch on line items in our budget#3 review, if you could just go to Tab#31. Now the Department of Public Works for equipment, the recommendation's $200,000 —now ' that's a carry-over fund if that's not used? That can carry-over and remain in that fund? I know that was the explanation that you had in there. Is there a balance in that fund for 2012? Councilor Letellier—It's Tab 430 no 43 1. Councilor Perry—Capital Improvement, I'm sorry, yup, Capital Improvement. You appropriated or recommended $200,000 for DPW Equipment and in your explanation it says that funds could be, may be carried over from one fiscal year to the next in order to provide funding. Treasurer Laurel Placzek—There's, excuse me, there's $118.00 in there. Councilor Perry— 118? Okay. ' Mayor Cohen - It's for lease purchase of new equipment. Councilor Perry—Mhmm? Oh, I understand. I just didn't know if there was anything left from previous years because it can be carried over. Okay. In the Water Department, is there a balance for the total for that account? I know Chris had told us in our budget sub-committee, George, it was like $1 point something, that's okay, take your time. Mayor Cohen—inaudible (off microphone) Councilor Perry--Okay, I appreciate that. Treasurer Laurel Placzek- $0.00. Councilor Perry—For the Water Department? No the total Water Department— Enterprise Fund, yeah. 1 20 President Johnson —Are you asking for the balance of the Fiscal 12 budget or the Reserve? Councilor Perry—I'm sorry. I'm not making it—yeah, the balance of the Water Department itself—Enterprise Fund—total Reserve. (Off-microphone discussions) Councilor Perry—No basically what I'm looking at, Cheryl, is when you look at the Water Department as an Enterprising Fund,there's a balance and I'm asking what that balance is currently. Treasurer Laurel Placzek—The Retained Earnings at the beginning of the year was g g y $3.lmillion and our result as of today is, we didn't run it— Councilor Perry—Okay,that's fair enough— ' Auditor Cheryl St. John—Right now our revenue minus expenditures are $124,506.00 positive in Water. Councilor Perry—In water, okay. All right. Thank you. ' Auditor Cheryl St. John—As of today. Councilor Perry—I'm sorry,just one more quick question when it comes to the report that we received on the October storm. Total storm-related costs were almost six million dollars. Now, we've been paying that right along? That's been coming out of, not a bond like I wanted to do? Treasurer Laurel Placzek—It's been coming out of Cash. The appropriation is the vote that the former Council took last fall and everything's charged to that appropriation but it's coming out of Available Cash. Councilor Perry - Okay, thanks. Treasurer Laurel Placzek—Our Cash balances at the end of May are about $3 million lower than they were in May of 2011. Councilor Perry - Thank you. 1 President Johnson —Councilor Cavallo? Councilor Cavallo—Yea, I appreciate that report that was sent. I asked for the Chair ' last meeting about the October storm debris removal. I just have a couple questions. On the federal reimbursement, are those federal streets or are they state? I'm confused because I look at Suffield Street and Main Street, those are plowed by the state or they're I 21 state, or they're operated by the state when they make repairs so is there a distinction here? Treasurer Laurel Placzek—The FHWA are Federal Highway Administration Roads and they are making the reimbursement for those roads. Am I right? Those are the roads I'm talking about because— Treasurer Laurel Placzek--I don't know which ones they are. That's fine, okay, well it said federal so I wasn't quite sure because I thought it would be a state. Mayor Cohen—The state gets it from the Federal Highway. Councilor Cavallo—And there was one other question. The last question I have is probably one that nobody has the answer to right now, but maybe Mr. Golba. I know you did a lot of work applying for this, when do you anticipate maybe hearing from the authorities? Any— Mayor Cohen—Well, we hope sooner than later. They're telling us that by the end of June, they're accepting no more submittals and I know Congress, I've talked to Richie ' Neal's office, they are working hard to get the payments out. For the last, the two-day snow storm we had last January, it took about eight to ten months to get reimbursed. ' Councilor Cavallo —Okay. Mayor Cohen—So the extent of this is much greater. There is no time limit but ours are ' all in and we've broken down the different roads. All lot of communities didn't break the federal roads down versus the city roads and state roads. Mr. Golba did it correctly and ours were not sent back, thank God. Councilor Cavallo—The other question I have is when this money is reimbursed to us, where will it go? In what accounts does it go under? Free Cash? Because you're paying, you've paid the bill, so where's it gonna go —the four or five million dollars that we may get back? Treasurer Laurel Placzek—When we receive the money back, it will be put into Cash. Councilor Cavallo—Okay. Treasurer Laurel Placzek—Because we're gonna, we'll have a deficit appropriation balance at the end of the year and it will take care of the appropriation but physically that money will be deposited in regular Cash. Councilor Cavallo —Okay, thank you. 1 22 Treasurer Laurel Placzek—I'm gonna editorialize. If we don't receive that money ' before we set the tax rate, we will be looking to do a short-term borrowing because we have to fund the reimbursement amount before we set the tax rate. ' Councilor Cavallo—I think that's a good idea. President Johnson—Councilor Rossi? ' Councilor Rossi—Yes, just one follow u because I'm a little fuzz on this area. Have J p Y we been assured of reimbursement? We have not. So aII of this anticipated stuff is just kind of like our ball — Treasurer Laurel Placzek—The project has been approved and accepted by FEMA for 75% reimbursement. FEMA can go through the report that was submitted to them and disqualify certain expenditures. So we don't have a final number but the projects have been approved for reimbursement. The disaster was declared so that the 75% is available for reimbursement but they still are gonna look at each expenditure. Councilor Rossi- Okay, so we don't, there is, nothing is carved in stone here. Mayor Cohen -No we will get reimbursed. It's Just a question of what we've submitted and what they'll accept and what they won't. So they are reviewing all of our submittals now. If they accept everything which we're hoping they do as all communities are, then we'll get the, your budget sheets will be correct. We have no way of knowing but with ' the Declaration by the Governor, by the City, by the Governor and by the President of the United Stated, money has been allocated for 75% reimbursement. Now it's just a question of them reimbursing us and at how much. ' Councilor Rossi—Thanks. President Johnson— Stepping from the Chair, I had a couple of quick questions. Laurel, have the auditors or anyone done an analysis of what our OPEB liability is? Treasurer Laurel Placzek—I hesitate to give a response because we had an actuarial study done before we adopted Section 18 so that number is going to be reduced. We are having another actuarial study done as of January of this year. The other amount was staggering- $100 million but— President Johnson—I've dealt with it within my capacity on state committees so it's a staggering amount. OPEB is Other Post Employment Benefits; it's the cost of providing insurance and other benefits to retirees which is staggering when you project it forward. ' Treasurer Laurel Placzek—Well, the Post Office is fully-funded. That's part of their problem. 23 President Johnson—Our new growth went up $2.7million. Our Capital Improvement budget- $600,000 so the rest was poured into expenses? Treasurer Laurel Placzek—It's helped to reduce the tax increase,the levy increase and to set up Capital projects. ' President Johnson—A lot of this was one time revenue coming in from the WMECO expansion? Treasurer Laurel Placzek—Well it was one time new growth but it will be continued new revenue. President Johnson —I understand it's continued revenue butyou're not gonna get anther$2.7million more next year, you know? Mayor Cohen—Ah probably not. Y � P Y Treasurer Laurel Placzek—Probably not. Mayor Cohen —Probably not, we can hope. President Johnson - A couple of more specific questions cuz in the Assessor's budget, the Professional Services almost doubled as you're going through a every three year parcel re-eval. ' Mayor Cohen - We are doing a re-eval but we hired someone, we have to do a re-eval of Berkshire Power and we have hired outside consultant to do the Berkshire Power re- eval and we're also doing more re-eval around the community too. ' President Johnson —In the Fire Department in their Protective and Safety Gear line item in their budget, it goes up 25 and then in the line item budget there's another $40,000 in for protective gear there. Just curious as to why it wasn't all put in one place and why it's split between the Capital Improvement Budget and their normal Operating Budget. ' Treasurer Laurel Placzek -- I'm gonna let Chief Sirois answer that. He did submit a five year Capital plan. Mayor Cohen--Some is ongoing, some is one-time expense. Fire Chief Sirois —We are significantly behind in replacement of some of our protective ' safety equipment for firefighters and by definition the protective firefighting equipment is not really a Capital Improvement item though it has been budgeted that way in the past. What we've done is re-design and re-establish our five year Capital Improvement Plan and taken those protective equipment items out of the Capital Improvement Plan and placed them into a line item in the budget. So the $40,000 that's appropriated in Capital Improvements for this year, for Fiscal Year 2013 will help get us caught up to where we 24 should be in terms of replacement some equipment and down the road the line item increase will allow us to replace it on a rotating basis rather than in making large Capital ' Improvement requests every five to ten years. It also allows us to extend the life of the equipment by making regular repairs and regular cleaning and improve the safety of firefighters so we don't have out-of-date and unsafe equipment. President Johnson—Thanks Chief. I Mayor Cohen — I can tell you the Chief has done an extensive five-year plan and I commend him on it. He did an excellent job on it and this is a way of making sure that the safety equipment is all up-to-date. IPresident Johnson — On our Health Insurance — is our cost above or below the State's plan? Are we above or below the GIC? Treasurer Laurel Placzek—It's about two percent higher than the GIC. President Johnson— So we're about 2%higher. Treasurer Laurel Placzek—This year the IAC and the town were tweaking some of the ' deductibles and reimbursements so that it would reduce the increase, reduce the premiums. Mayor Cohen — We're about 2%, 1.98% higher than the GIC but our coverage is more than two percent better. President Johnson — Okay. The concern, Mayor, is that eventually the state will cut whatever we're spending above the GIC. Mayor Cohen — Absolutely and we're aware of that and that's why we're going to be negotiating and looking at that with the IAC. IAC has been excellent to work with and they're aware of it as we are so you're absolutely correct, sir. President Johnson — No, I agree with staying with our own plan if we can but we have to come in line with the GIC otherwise the state's gonna cut whatever we're above the GIC off our local aid. It's only a matter of time. That's all the questions I had. Any other questions from the Council? Councilor Rheault? ICouncilor Rheault — Yea, if we adopt this proposed budget as presented, do you have any idea what the tax rate or tax increase will be? Whether you're concerned of the elderly or all those on fixed income and everyone else? Mayor Cohen — I do have that. It's, again, I hate to throw numbers out because, I was ' waiting for Councilor Perry to ask me that question— Councilor Rheault—Fooled ya! I25 Mayor Cohen — I lost the bet. Thanks, Councilor! The average, if, it depends what ' option you select, if you select where we're at at 1.6 which is what at this point I would recommend, shift, the average tax bill for the homeowner, typical residential property, would go up approximately $35 for the year. Councilor Rheault—For the entire year? Mayor Cohen —Yes. Councilor Rheault—Not per billing cycle? Mayor Cohen —No, for the year at a 1.6 and commercial would go up about $72.00. Treasurer Laurel Placzek—Can I just add because I know the Assessor's sitting behind me saying well my values haven't been certified, there's a lot of paperwork that's to be done and this is our estimate at this time in preparing the budget. ' Councilor Rheault—Thank you. 1 President Johnson —Councilor Mineo? Councilor Mineo —Actually that was one of my two questions but my other question is, ' what is the average home assessed at this year? Because I think that'll make it more clearer to folks. Treasurer Laurel Placzek- $218,700.00. Councilor Mineo —That's the average assessed home? Treasurer Laurel Placzek- That's the average. Councilor Mineo —So that continues to go up every year? What was it assessed at last year? ' Mayor Cohen —Last year I don't know if I have that with me. Kevin probably knows. ' Assessor Kevin Baldini -- I don't have those numbers with me but those numbers are about the same. I used the same numbers as last year. Again, everything is a projection. I haven't got the final numbers yet. I'm not even close to the final numbers yet on our ' values so I figured it was the safest thing was to use last year's. Councilor Mineo—So assessment values haven't gone down, they're still increasing? Assessor Kevin Baldini—I think they are going to go down a little bit. ' 26 President Johnson —I would say market trends are down. ' Councilor Mineo—Yea, market trends are down. I don't think assessment values are. Assessor Kevin Baldini— We're also hitting historical values— ' President Johnson -- Remember the assessed values for Fiscal 2013 are based upon calendar year 2011. ' Councilor Mineo — Yea, I understand that. What I'm trying to say is at this point, they're not going down. President Johnson — I think Kevin just said that he expects that probably overall property values have gone down. ' Assessor Kevin Baldini — ....assessment based on sales. I don't have those final numbers yet thought. This is just a projection based on what I know. President Johnson— Councilor Cavallo? Councilor Cavallo — Kevin? Can I ask you one more question? It's basically the same issue that I had in my case, correct? You have to look at 2011 — 2012 or I I now — to determine the assessment? ' Assessor Kevin Baldini — 2011. We're looking at 2011 sales for an assessment date of January 1, 2012. That's the assessment date for fiscal 2013. ' Councilor Cavallo— .Okay, clear, okay. y ' President Johnson- Any other questions? Councilor Rossi? Councilor Rossi— Yes, thank you. That $35 increase you are talking about, is that based upon that $218,000? So if you have a $218,000 home, you're gonna go up $35.00 and of course it will go up proportionately as your home goes up, right. My other question is ' this increase, you're talking about this small increase that we're taking place now, that's because of all of this new growth income that we got this year? Wasn't that used to offset some of this tax increase that you're talking about? ' Treasurer Laurel Placzek—The new growth is over— ' Councilor Rossi—That two and a half million dollars wasn't that used to defray some of the cost of this budget? To keep the numbers low? ' Treasurer Laurel Placzek — It was, if you look at Page 7 of the Budget Summary materials, you'll see that the 1 ''/z% increase in the levy is about $700,000 that we would be raising from last year's levy and then the levy's gone up the additional 2.7. ' 27 Councilor Rossi — Okay, my question I guess is gonna be a follow-up for what are we ' doing for next year when that money's not gonna be here anymore? We're increasing our fixed costs but yet that money's gonna be disappearing this year, correct? ' Treasurer Laurel Placzek Well, our base levy next year will be this year's levy so we'll be limited, well we could be limited to 2 '/2% Councilor Rossi— So it could increase substantially is what you're saying, correct? Treasurer Laurel Placzek—Well it's all it ever— ' Councilor Rossi --I know, but rather than 1 '/2% we could go to 2 '/z%. ' Mayor Cohen—Yes, I hope not. Councilor Rossi — Well, that's why I was hoping we would try to keep our costs, our fixed costs down a little bit more but— President Johnson — Just a quick question of the $2.7million new growth, what amount ' of that is the utility growth? Ball park, Kevin? 2 ''/z? So only $200,000.00 of it is actual new growth and other construction. Councilor Cavallo? ' Councilor Cavalio — Yea, my question of course to both, to all of you, is once we get through Fiscal 2013, we're looking at quite a big problem for 2014 because as you mentioned in your report, all of the contracts that are in effect right now through 2013 will be coming up for negotiations. Correct, Mr. Mayor? So that is something I'm sure you group has to study very carefully because as you know in the School Department and ' your department as well, that's where substantial increases occur and all budgets, the salary really affects that cost of your overall budget. So I hope that everybody is going to be looking at that come 2014 and especially I mentioned to Mr. Sapelli, that was one of the issues that we talked about in the School Budget sub-committee, that these are like fixed costs right now that we can do nothing about because they're negotiated but I think somewhere along the line, there may be a bullet that has to be bitten. That's all I'm ' saying. I'm not saying no one should get a dime or a quarter or a dollar, but I know it's been that way with me with my part-time job so I Dope that we aren't going to surprise the public with something that's gonna be quite disastrous for them. Thank you. ' President Johnson — Just remind the Council this is an opportunity for questions. Councilor Letellier then Councilor Magovern? Councilor Letellier— Yes, thank you. Kevin, I'm sorry to keep making you pop up. So we only had, so based on your figures, if we have 52.75million in new growth and $2.5 ' of it is WMECO, that only leaves a quarter of a million dollars — that's less than one house! ' 28 ' Assessor Kevin Baldini -- It's impossible to predict new growth without having your values set, without the new construction. I tried to use the conservative number. Last ' year, I think we had $700,000. fart of that was also WMECO, they had just started the project and again, I'm meeting with the Department of Revenue in July. We won't get our new growth certified probably until some time in October. New construction is as of July I" so it's almost impossible to predict. I tried to use a conservative number. Councilor Letellier — That's gotta be very conservative because a house in Agawam these days, you're not gonna get a house for$260,000—a new house —so if you do the, if I'm doing the math right— ' President Johnson—By way of information, it's $260,000 in taxes not in value— Councilor Letellier—And so how much does that equate to in— Assessor Kevin Baldini -- WMECO had $88milliion in value which gave us the $2 %Z million in growth. That $250,000 is broken up between commercial and industrial and ' residential real estate. We haven't had a big growth year in homes. So $100million in homes to answer your question-- ' Councilor Letellier—Is what we get so you get the $250,000 in tax revenue? Assessor Kevin Baldini—Two million dollars in homes could be S144,000 in growth, so there hasn't been a lot of new homes. Councilor Letellier — Okay, I,didn't mean to ask a dumb question, I knew it was more than one house. I just couldn't figure out the math. Okay, all right, thank you. ' Assessor Kevin Baldini—It's not just one home. Councilor Letellier — Yea, I know. I'm sorry. It's late. I asked it incorrectly. I apologize. Thank you for catching that. President Johnson —Councilor Magovern? Councilor Magovern - Again, I can see all the hard work that's gone into putting this budget together but in reviewing my budgets with my sub-committee, the question that ' we kept on coming up with was again, the labor increase, the labor increase and last year we had two percent increase in all salaries plus we had the step increases. Given the step increases and the two percent increases, you know that really is a big portion of where ' 5%, 6% growth is in our budget which is higher than I think anyone of us have received in our income and the same thing with the senior citizens so back to what some of the previous councilors have said and that's next year I don't know who your negotiator is ' with the unions but I think that this coming union contract that comes up, you're gonna have to either change your negotiator or get some pretty strong negotiators in there to make sure that everybody comes out with a fair deal. Our unions have to be treated fairly 29 ' but also I think that the taxpayers of Agawam have to be treated fairly and try to keep the growth down between step increases and percentage increases, it's costing the town quite ' a bit but the question I've got, again, back to the new growth, I'd like to see something done a little bit stronger as far as trying to bring more business into the town because the only way we're going to be able to keep the taxes down for the homeowner is if we can increase business and I think that we've got to work with the Chamber of Commerce or I know Debbie is out there trying to bring new growth in down with on the old Games and Lanes building and everything else but I think that we've really gotta stress this and I'm asking the question of what is being done to try to bring in new growth above and beyond just trying to get the businesses that come to us. I mean we've gotta go out to businesses and try to generate more tax revenue. Mayor Cohen — We do that on a daily basis. We've been hit with economic development as far as not only in Agawam but across the country. Look at the, the biggest gain in Dollar Tree, Sears is having trouble. Right now developers are not looking at building big shopping centers or moving or expanding, Target's having trouble. We're on the phone every single day, myself, Debbie, we work with the Chamber. We have a great working relationship with the Chamber, with the banks, and I agree with you, we have to and we are but we cannot go out there and we're not an entitlement community. We don't have, we're not eligible for an economic target area. ' We tried to join with West Springfield. If we did, they would lose their economic target status because of the type of economic community we are so we can't give big breaks but we are working very hard to bring in new business. We understand that, believe me, ' nobody wants to see that more than me as much as you do and we're gonna continue to do everything we can to see Tennis Road developed. We looked at a business park, we've looked at commercial but we have to have the developer come and do that. So ' we're trying. We're working on it. I don't disagree with you but I wish it was as easy as you say and think it is because it's not. We can ask and ask and ask and ask but if they say no, we have to then keep asking and asking and asking and go down another road. It's taken me all this time to get Starbuck's to even talk to us. They're finally beginning to talk to us so we're hoping we get a Starbuck's. When I called them ten years ago, they said we'll come check your community out and we'll get back to you. I didn't hear from them. I called them back and they said if we were interested, we would have called you. Now they're at least calling us back and they're looking at some sites. We do have the Wendy's coming in, that was a hold-up but we are always looking and I agree with you. I don't disagree with you but believe me we are doing our due diligence and working very hard. ' Councilor Magovern—Thank you. ' President Johnson—Councilor Calabrese, I think you had a question? Councilor Calabrese — Thank you, yes. Have you worked out a worse case scenario ' with regard to the FEMA reimbursement, kinda done a what if scenario? What if and if you have, I'm just curious, if you could share that with us? 30 Treasurer Laurel Placzek — Well Bill Erico from the Department of Revenue, he's in the Debt section, is concerned about the timing as I mentioned earlier. If we're not going to receive it by the time we set the tax rate,we have the option of going to the Director of Accounts and asking for an emergency borrowing. I told him that we probably would not want to do that that we'd come back to the Council and ask for a raise in appropriate on a ' short term note to pay until the FEMA money came in. The town will have to look at the un-reimbursed portion in the end to determine how we want to address it with all the different options that were in your packet. President Johnson — Any other questions? Seeing none, the Chair will, first I'd like to thank you for the presentation, the Chair will entertain a Motion to come out of Committee as a Whole. Moved by Councilor Magovern, seconded by Councilor Perry. All those in favor of coming out of Committee as a Whole say Ay? Any opposed? We are now out of Committee as a Whole. At this point, I'd ask the Budget sub-committee ' Chairs and I'll call them one by one to give brief reports. First is the School Budget Committee, Councilor Cavallo? ' Councilor Cavallo —Yes, we met on two occasions as Superintendent Sapelli alluded to, first was a general meeting that we had with the School Committee and it was an excellent presentation by Mr. Sapelli. There were some questions that we had. Primarily a lot of our questions dealt with the increase in salary out of the Salary Account knowing full well that there was nothing that could be done, that was a fixed item. There wasn't much that we saw that we could do any cutting with. The other 1 S%-20% of the budget we felt was necessary. A couple things, I think the new computer project was a concern of a couple of School Committee council members but essentially we left with a pretty good feeling that the budget was okay and then we met again and Mr. Sapelli was present here, we had another meeting at which we did not take a vote. We felt that we wanted to see what the final figures were gonna be from the state and what the town side was gonna 1 be like before we took a vote. We more or less accepted the budget but did not go thumbs up or thumbs down with it. I myself, I don't know how the others feel at this particular point that I would be in favor of the budget this evening which would include of course the School Committee budget as well. I think they did a good job and I like Mr. Sapelli's approach. He was very open. The committee was excellent too. We were all seated up here at the dais and they answered our questions to the best of their ability so that's basically where we were President Johnson. That's how we ended it. President Johnson — Thank you Councilor Cavallo. Next is Budget #l, Councilor ' Letellier? Councilor Letellier — Yes, thank you. Budget Committee #1 met on May 23rd at 7:00pm. I did do a typed report which I believe was in everyone's packet a couple of weeks ago. The committee is comprised of myself as Chair, Councilor Calabrese and Councilor Rossi who were all present. Also present were Councilor Mineo, Councilor Bitzas and Alan Cohen. All Department Heads were present for the assigned departments. We were assigned budgets for the Council, the Mayor, Administrative Building, Law Department, Auditor, Clerk/Elections, Assessor, Data Processing, 31 Treasurer, Council on Aging and Line Items. We also took it upon ourselves to review the Special Revenue Funds which are not assigned to any committee but as you can see in ' the Budget books, some of them have decent balances. Some of the have very big balances! We discussed each budget and each budget was individually passed with a vote of 3-0. There were numerous questions asked. I don't know if you want me to go into them. You got the reports. Some of them were questions that Council President asked tonight about the Professional Services in the Assessor's budget. Again he said it's doubled because it's a fiscal year update and to also have outside assessors for the ' Berkshire Power account. There were questions asked about Medicaid reimbursements, unemployment claims, reserve funds, outside police detail, School Department questions. We were told that those had to be — in the Special Revenue funds there's quite a bit of ' money in the School Department. I don't see that it was necessarily addressed in your budget but a lot of these accounts were hamstrung by, for very specific items and so you have a budget, we have like $500,000 in an account that we've gotta figure out how we can use that money instead of just sitting there but I know we have a new superintendent so I'll deal with, talk to him about it on another night when he's not, I don't want to spring it on him — Councilor Cavallo—Point of Order? I think we gave you a copy of that after. Councilor Letellier—Yeah, we did, you did. Councilor Cavallo - And all the Council members got it, yeah. ' Councilor Letellier —Right but it shows that there's $500,000 in a program fund and so my question is are we charging too much for that program fund or are we just not finding creative ways to use the money? But that technically was not assigned to us but we did ask some of those questions because no one has been, there's no assignment of Special Revenue funds on the budget list so I think maybe next year we should figure out which ' budget should get that. It makes sense to put it with Line Items and to put it in Budget #1 but I think it's something that needs to be looked at carefully every year. So we thank all the Department Heads for coming and we did get a follow-up memo from the Mayor from Cheryl, etc., on May 30`" in which most of our questions were asked so thank you. President Johnson —Thank you. Next is Budget Committee#2. Councilor Magovem? Councilor Magovern — Thank you very much. My budget committee is comprised of ' Councilor Mineo and Councilor Rheault. We, I did file a committee report which you all received in your packets but just to go over the general discussion very briefly, Councilor Rheault and myself met initially with the Fire Chief as he was on his way to Scotland when we were gonna have our general meeting and I hope you had a great time in Scotland and he answered all of our questions. We had quite a hit of discussion about many items within the Fire Department and I want to congratulate again the Fire Department on their wonderful health services. The ambulance service I think is one of the finest and one interesting statistic that I think the general public might be interested in is that they were called out over 3,000 time last year and that's just an unbelievable 32 ' amount of calls that our ambulance service responds to between Feeding Hills and Agawam. The only major concern I've got with that is that as many of you see when you ' see the ambulance going up the street, you see the pumper truck following immediately behind and I had a question about the pumper truck going out on the ambulance calls because this kicks up the overtime because you've got excess personnel going out and he assured me that this is necessary and I just want to reiterate what I said in that meeting is that if you can look at that a little bit more closely, try to keep the overtime down and not in all cases, I don't think you need the pumper truck there and again last night I had a personal experience where my sister-in-law who lives next door to me was taken to the hospital and the ambulance was there and again handled very, very professionally and I want to thank you for that. There was again a discussion went out on the overtime that ' all the Councilors received as to how the ambulance fund is gonna be handling that. Again, we didn't take a vote on it that, at that time. We had a general Budget #2 committee meeting with all the Department Heads where we went over everything. The ' major discussion there again was with Police Chief Campbell who sat down with us and went over the entire funding for the Police Department. There was discussion about the vehicles and I think he squeaks about every ounce of life that he can get out of some of ' these cruisers, the same as our Depute Fire Chief. They were talking about earlier having a vehicle that they worry about when he's traveling. Some of the police vehicles, not the cruisers, but some of the others are rather old and there is some replacement that has to be ' done with those. All the questions were answered. Again, we discussed the union contracts and the increases but generally things were answered pretty effectively. We had the Health Services, the Planning & Development, the Golf Course and again to reiterate what the Mayor said, the golf course this year looks very, very good. We have a new manager up there who is trying some new things and I think that we're gonna have a much better facility. Again, we met, we didn't have a vote that evening but most of us ' were in favor of it but this evening though our committee did meet and we discussed oh and at the meeting, the general, we had Councilor Mineo was there, Councilor Rheault and Councilor Rossi came in with some good questions on top of everything else but we ' didn't take a vote on it at that time because we wanted to look at a few things. We did analyze a few more facts and figures this evening. Councilor Rheault, Councilor Mineo and myself got together before the meeting tonight and we did take a vote and the committee approved the budgets as they were presented to us and again thank you for all your hard work to both the Police and the Fire. Thank you. tPresident Johnson—Last but not least, Councilor Bitzas with Sub-Committee #3? Councilor Bitzas —Thank you Mr. President. My committee members Vice-Chair Perry and Councilor Cichetti and myself, we met at the library and we discussed the budget along with the Department Heads for the Park & Recreations, DPW Administration, Highway & Grounds, Motor Vehicle Maintenance, Engineering, Water Department, Waste Water Department, Building Maintenance and the Library. A few questions were asked and the answers were satisfactory to all of us and we vote in favor 3-0 for every budget for all these individuals, department. Thank you Mr. President. ' 33 President Johnson —That concludes the sub-committee reports. Next we'll move on to the public hearing. At the public hearing, first people will be asked who want to speak in ' favor of the budget and then we'll ask if anyone wants to be recorded in name only. When you approach the microphone, I would ask that you state your name and address. AIso in the back there's a table that has a piece of paper on it. I would ask that if you ' speak at the public hearing if you would do us the courtesy of just writing your name because otherwise Barbara is left with watching the tape and while she knows most that might speak, she doesn't know all so a lot of times the names get garbled. So we'd ask ' that after you speak if you would just indicate, write your name on that sheet so we'd get an accurate rendition in our minutes. So at this point, I'll open the public hearing and ask anyone who wants to speak in favor of the proposed Fiscal Year 2013 Annual Operating ' budget to approach the microphone. Seeing no stampede, I'd ask everyone who wants to be recorded in name only in favor of the proposed Fiscal Year 2013 Annual Operating budget to approach the microphone. ' Bernard Calvi—Bernard Calvi, owner 46 Moore Street. ' President Johnson —Thank you, sir. President Johnson —Just turn the microphone on please? Thank you. ' Dave Stratton —Dave Stratton 64 Wright Street Agawam. awam.g ' Wendy Rua --Wendy Rua, 173 North Westfield Street. ' Shelley Borgatti-Reed — 10 Shelley Lane. President Johnson --Any other individuals wanting to be recorded in name only in favor of the proposed Annual Operating budget? Seeing none, anyone want to speak in opposition to the proposed Fiscal Year 2013 Annual Operating budget? Seeing none, anyone wanting to be recorded in name only to opposition to the proposed Fiscal Year ' 2013 Annual Operating budget? Seeing none, at this point, the Chair will close the public hearing. We have before us TR-2012-29, a Resolution Adopting the Fiscal Year 2013 Annual Operating Budget for the Town of Agawam. The floor is open to discussion? Seeing none, I'd ask Barbara to call the roll. This requires six votes. ROLL CALL—11 YES,0 NO ' President Johnson — With a vote of eleven yes, you've approved the Fiscal Year 2013 Annual Operating budget for the town. Again, thanks go out to the Mayor and his staff ' for the presentation this evening and for their diligence in getting us all the information that was requested. ' Item 10. Old Business 1. TO-2012-12 -An Order Granting an Application for Abatement, ' Redetermination,Extension or Deferral of Sewer Betterment Assessment 34 ' Requested by Ralph DePalma for the Property Located at Rear 683 South Westfield Street,Feeding Hills,MA. (Tabled 6/4/12) (Referred to tAdministrative Committee) President Johnson — The Chair will entertain a Motion to take the item off the table. Moved by Councilor Rossi, seconded by Councilor Magovern. All those in favor of r taking the item off the table say Ay? Opposed? The item is off the table. The Chair will now entertain a Motion regarding TO-2012-12, is there a Motion? Moved by Councilor Rossi, seconded by Councilor Perry. Councilor Rossi, a report from the Admin Committee? Councilor Rossi — Yes, as you know, Mr. President, this committee's been active over several months over these abatements and what the committee findings we believe to be fair and it is the committee's finding that parcel E4-2-10 does not have the minimum requirements of 150 foot frontage that abuts or is adjacent to the sewer line that's required in the current zoning of A-3. Accordingly, it is the recommendation of this committee that an application for abatement shall be granted on parcel E4-2-10. President Johnson — Is there, that's the report of the sub-committee. Just for clarification for the Council's purpose that property was originally assessed for 181 ' potential units and the recommendation of the sub-committee is to reduce that to 0. if you're in favor of the sub-committee's recommendation, vote yes, if you're opposed, vote no. Are there any questions or discussion on the item prior to having Barbara call the roll? Seeing none, I'd ask Barbara to call the roll. If you're in favor of the sub- committee's recommendation, vote yes. If you're opposed, vote no. ROLL CALL— 10 YES, 0 NO, 1 ABSTENTION (Councilor Bitzas) President Johnson — With a vote of ten yes, zero no and one abstention, you've ' approved the abatement application for Rear 683 South Westfield Street. 2. TO-2012-13 -An Order Granting an Application for Abatement, Redetermination,Extension or Deferral of Sewer Betterment Assessment Requested by Giuseppe Tirone and Ralph DePalma for the Property Located at 497 South Westfield Street,Feeding Hills,MA. (Tabled 6/4112) (Referred to Administrative Committee) President Johnson — Is there a Motion to remove the item from the table? Moved by ' Councilor Magovern, seconded by Councilor Rossi. All those in favor of taking the item off the table say Ay? Any opposed? The item is off the table. The Chair will now entertain a Motion to approve TO-2012-13. Moved by Councilor Rossi, seconded by Councilor Calabrese. Councilor Rossi, a report from the committee please? Councilor Rossi — Yes, thank you Council President. It is the committee's finding the Parcel E6-2-8 does have a minimum of 150 foot frontage that does abut or is adjacent to the sewer line as required under the current zoning A-3. Further it has been determined under current zoning A-3 the maximum potential unit that is adjacent or that does abut ' 35 ' the sewer line is 24. Accordingly, it is the recommendation of this committee that at application for abatement shall be granted and adjusted to 24 units with a value of $2,341.00 per unit on Parcel E6-2-8. Thank you. President Johnson — Just because that's different than what's requested in the ' application, I would take that as a Motion from you as Chair of that sub-committee to Amend TO-2012-13. The property was originally assessed at 212 potential units. The committee's recommendation is to reduce that to 24. Councilor Rossi—Correct. ' President Johnson — So the abatement would be for the difference between 212 and 24 or by my math, 188. So there would be an abatement of 188 potential units. ' Councilor Rossi—If that's the math, I'll take your word for it. President Johnson — I'm looking at Mr. Sapelli hoping that the new math clicks in and ' he nods and says 212-24=188. Yes, so it would be an abatement 188 potential units. Councilor Rossi—Correct. ' President Johnson — So we have a Motion to Amend TO-2012-13 to encompass a reduction in the abatement of the sewer betterment from 212 potential units to 24 ' potential units. Is there a second? It was made by Councilor Rossi, seconded by Councilors Magovern and Rheault. Questions or discussion? Seeing none, if you're in favor of the sub-committee recommendation which is to reduce the total potential units from 212 to 24, vote yes. If you're opposed, vote no. Barbara? ' ROLL CALL — 9 YES, I NO (President Johnson), 1 ABSTENTION (Councilor Bitzas) ' President Johnson — With a vote of nine yes, one no and one abstention, you've approved the abatement application reducing the potential units from 212 to 24. ' Item ll. New Business 1. TR-2012-36 -A Resolution Confirming the Appointment of Elizabeth A. Polumbo,62 Meadowbrook Manor,Agawam,MA,to the Agawam Housing Authority for an Unexpired Term Expiring the Second Monday in January, 2015 (Mayor) ' President Johnson --That will go on to our next Agenda. ' 2. TR-2012-37 -A Resolution Authorizing the Posting of the Warrant for the State Primary Election on September 6,2012 and the Presidential Election on November 6,2012 (Mayor) ' 36 ' President Johnson—That will also go on to our next Agenda. ' 3. TOR-2012-2 -An Ordinance Adopting Massachusetts General Laws, Chapter 325,Section 20 (Mayor) ' President Johnson —Asking the Legislative Sub-Committee if they want a crack at this or do you want it just to go on to our next Agenda? Jim, you're the Chair — so I'll refer the item to the Legislative Sub-Committee. -item 12. Any other matter that may legally come before the City Council. President Johnson—Do we want to do that? It's been a long evening or do we just want to adjourn? Councilor Cavallo—Let's adjourn, it's hot in here! Councilor Rossi—I just have one comment, that's all. President Johnson -- We'll give special dispensation to Councilor Rossi for his quick comment. Councilor Rossi — Thank you. Just quickly, I want to submit to the Legislative branch, the Legislative Committee some notes on ordinances and adjustments to our sewer ordinances and one is our sewer privilege fee, what I call the sewer privilege fee or connection fee. I can't find it in our by-laws. I understand it's $800. That needs to be amended considerably to make it more appropriate, to bring us current to try to get back some of our capital costs. I've already discussed this with the developers and once we put it into our by-laws, every unit that's built on any undeveloped land that has not been previously assessed will be assessed $2,341.00 but that number is to be established by the ' committee in their review. I also would like to submit that in looking at the sewers, mandatory hook-ups within a certain time period. I believe it should be six months but again that's up to the Legislative Committee to make their recommendations and the City ' Council again to amend it and the way the calculations for assessment are being made to keep in mind the fairness and the cash flow of it so we get a more accurate assessment of what we're actually expecting our property owners to pay up there so I have the notes here. I'd like to submit it to the Legislative Committee for action on those things,just to make you aware of the fact that they're coming and maybe if the Chair would set that up ' I'd appreciate it. President Johnson — They've just got something referred to them so they'll have two ' items for that Agenda. Just quickly, congratulations to the Rocky's. I came here this evening, my son who plays on the Rocky's, they were playing in the championship game. I mentioned to Councilor Rheault he must have done this one hundred times over the ' course of years with his sons and his grandsons and granddaughter having to leave the field. It was one of the toughest things I ever had to do to leave in the middle of the game. So my hat goes off to you Don for all the times you had to do it because it was 37 itough to be here. The Chair will entertain a Motion to adjourn. Moved and seconded all around the house. All those in favor say Ay? We are adjourned. Good evening. Adjournment(at 9:03pm) 1 ' 38