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Terri Burchfield, Chairman
John Henshaw, Vice-Chairman
Hannah Anderson, Secretary
Jay Simeone
George Martin
Lunenburg Finance Committee
02-14-19
Marc Luescher
Michelle Walton
On
Location: Town Hall
Present: Terri Burchfield, John Henshaw, Michelle Walton, Marc Luescher, George Martin
Absent: Hannah Anderson, Jay Simeone
Guest: Heather Lemieux, TM. Jack Rodriquenz, DPW Director. Chief Sullivan, Fire Department.
Chief Marino, Police Department.
Lunenburg, MA 01462-0135
978.582.4139
FAX 978.582.4148
1. Open Meeting:
The Chair called the meeting to order at 7:00 pm. This meeting is being recorded and televised for re-
broadcast on the Lunenburg Public Access cable channel.
2. Communications:
Public Comment: none
New Communications: none
3. Town Manager presents 2020 Budget
Heather Lemieux, Town Manager, presents the Town of Lunenburg FY20 Budget Recommendation.
*attached at the bottom of these minutes*
When speaking on the FY2020 Expenditures- Less Discretionary & Discretionary, Terri asked, "To confirm,
we are not borrowing for engine 4?" which was answered by the town manager that we would not be for
Capital but for FY20 yes.
Questions from the committee:
George asked about the assistant town manager position, asking if the $60K would also include benefits and
health insurance or if the amount only included salary. Heather confirmed this only covered salary and
noted that if it is benefited with health care then it would be an additional $24k. Terri asked about the
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pick up those roles? Heather responded that dealing with HR issues take quite a large amount of time to
clear up which would give her more free time to take on more tasks and responsibilities. Michelle asked
what the requirements for this position would be to get the amount of salary amount offered? Heather
answerea, Municiple experience in HR would be preterrea. Michelle then askea, why the position is being
called An Assistant Town Manager if this sounds more like a HR position? Heather answered that she could
see this position also helping with assisting with procurement, packages that need to be put together,
templates for contracts, insurance requirements, but the bid specification piece is that there are always the
needs for assistance and that's time consuming, and other special projects that person can do outside of
HR. John had an observance he wanted to make, he said there are three full-time equivalents in this
budget, fulltime police officer, fulltime fire fighters, the town manager/HR position and the fourth would be
part-time as a recreational manager. He went on to pull away from the positions available.
John noticed the large increase in Free Cash from FY19 to FY20, he asked what that was attributed too and
if it was a one-time hit or is it a new level? Town manager answered that it was a one time, and she would
not expect it again next year. The estimated receipts came in lower than the actual and the unexpended
balance of all the department accounts helped as well as the auction and tax title sale that was held earlier
this year. John confirmed that would not reoccur next year. John clarified that he thought he heard Heather
say she would be spending more time on Tax Title, so to keep it a little more current than we had? Heather
responded, our level of funding for Tax Title, it takes a significant amount of money to pay the Tax Title
attorney to move properties to Tax Title in the foreclosure process so $8k is the fees with that. To address
and move more through so we can get the off our books and uncollected taxes back, I would recommend to
increase that amount if we had enough to do that. John then noted the part of the presentation that related
to the increased calls at the police and fire departments, which is related to the population increase. He
then asked if we should be looking at this with the school department as well. Heather said she cannot
answer for the school but believes there is a spike in the K and 1st grade classes but we would need to talk
to them about that. Terri then asked what we should do about the ten-year plan? Are we on track, or if we
are not on track? Heather said at the moment we are on track.
Questions from the Floor:
Dave Rogers, 82 Highland Street, first question, can you explain in more detail about the Over Time for the
Fire Department? I thought I heard you say we would not be getting a person but instead we would be
paying Over Time, is that correct? Chief Sullivan answered, basically our Over Time, up until two years ago,
we had three full-timers, when they were on their days off, there were no people to run it but the Pier Diem
shifts so the amount of OT in the budget was basically just for call back. A year ago, we added one position
so with the schedule everyone's works that allows one person on a day off any given day. The full-timers
have first refusal on a shift coverage so that increased slightly. Now that we have two people, we cover 6
days a week, 24/6, any given day there are more people off duty to take that OT. To cover those shifts
properly we were nowhere near well-funded for. Currently we cover about 60% of shifts coverage with full-
timers and the other 40% with Pier Diem. Like the Police, it goes to the career person first and if they don't
want it then it goes to the Pier Diem personnel so that's basically where the cost has come. When we
increase the staffing, that was one thing that wasn't cost, we budgeted for the two new people. We didn't
have to catch up for the existing four staff and that's where this is coming into play. Plus, there is additional
OT for shift coverage for the people in paramedic school while they attend class or their clinical time
because we need to cover their shifts as well. Mr. Rogers, Chief when will we get to a full-time fire person
and be able to cut back at the OT? At a two people shift, I don't see that anytime soon, we have to fill
person for person with only two on. We have one person for extra days, that's a pier diem to give us three
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Mr. Rogers, the other question 1 have, deal with the actuary that came in and said we owe mega millions to
OPE, how much do we owe? And How much are we going to contribute to that? Heather, the actual was
around but more than $40 million and we are going to contribute $150K to put towards OPEB. Last year the
town, between the finance committee and the Selectman, decided to take 10% of our previous years
certified Free Cash to put towards OPEB. Mr. Rogers, I have some real trepidations about that, and the
trepidations I have are founded on the facts that I don't see how we are going to come up with $40 Million
to take care of this. And having said that, we are allocating $150K that we could use in other places for that
expense. My suggestion is to look at this long and hard and remember the directive from the BOS or
FinCom, whomever, that would free up money that we would use. Forty million is a crazy figure, so my
recommendation is for us to look at that.
Mr. Rogers, last question has to do with Capital Plan, as it pertains to the $220K and I would like someone
to explain that in detail please. Terri, before we continue onto the Capital Plan, I do want to address the
OPE discussion. And for anyone that is not clear on what OPEB is, it is the other post-employment benefits
aside from retirement costs so that would typically be Health Insurance. As the actuary sat here and
presented, and to add it use to be $60 million but due to plan changes or something, it has come down, it's
a ridiculous number, but it is also something that would not come due on a particular Thursday or year
down the road. It's basically going to be over a period of time that the liability is going to exist. I think that
with the bonding question that comes up, I think with planning Turkey Hill coming up with an issue, the
notion that as the bonding question goes, my own take on it is that we have a liability and we are either
taking it seriously or not and a bonding agent is going to look to see if we are going to take the liability
seriously. This year, was a particular anomaly, that we have $150K to put there in the first place. Another
piece of me would like to revisit the policy as to see when we can take the money out. At what point is it a
critical enough issue. If you look at the current retiree health costs, and what we are paying this year, it's
over $1.5 million for people that no longer even work in the town. I think trying to address the liability as to
one day maybe we won't have a lot of Free Cash to play with one day and we will be pulling some out. It
doesn't have to sit there until we get to $40 million. But it is a liability and something that the employees of
the town are relying on and we are in a position that we need to follow through on. Heather, and as going
through a bond rating process before, it was one of the things brought up as well as a number of other
things. Are you planning for the town? Terri, and just say, maybe one day we can revisit this again as the
debt starts to come down, and bring it even lower because I think that's one of the other issues we have.
So, if we were using Free Cash to put into OPEB I would be looking at it to relieve some of the debt. John,
for those here and for those in the TV audience, one of the issues we struggled with when putting it
together is how long do we set it to be sufficiently prudent and how at the same time avoid tying the hands
of Heather and others in the town that may end up turning their backs on a good deal in debt because of
the policy. Having their hands forced as it wore, so that was the struggle. Our debt limits is similar to other
Mr. Jack Rodriquenz, DPW Director, I am here to present some soid and detailed numbers for the $220K in
the Capital Plan for the two new Fuel tanks. We have an inground 10k gallon gasoline tank, and an
inground 5k gallon diesel tank. They are monitored and no leaks but there are insurance issues at this time
so it's time to get them out of the ground and replaced before there is an emergency. In fact, Terri, I
misspoke at the last meeting. I said they are fiberglass but these are steel wall tanks that are above the
ground. What we are looking to do the first year, was to take on the whole job ourselves, handle it, manage
the job, looking for the best deal on excavating the tanks, get the best deal on purchasing the tanks, doing
most or all the work we could do and that came to $110-$120K. After speaking with the town manager, we
decided to get it engineered due to liability, and flammability involved, and thought it would be a time draw
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done in house, we have a Mass DEP Storm Water report that needs to be done by the engineer, a site
Storm Water Management Plan, a Geotechnical Investigation, specifications about what the tanks are, what
shape are they in, what's in them, what's residual before they get shipped out and of course the actual
shipping. That's roughly about an estimated $20k - $25k. So that and to take them out of the ground it
would be roughly estimated at $50K. I'm going to propose is two, 2k gallon tanks. Going higher in size
means we have a limited footprint so going with the smaller ones we can use them in the same place, in the
same foot print, and look to be frugal and keep them at 2000 gallons a piece and get deliveries as needed.
There are many other items that need to be taken care of like, electricity, venting, monitoring, etc. Final
You need to have a contingency in this kind of plan.
Questions:
John, does this price include a back-up generator? Mr. Rodriquenz, we have a generator. Just needs some
wiring, John, why two tanks? Why not one? Is it a safety issue or a back-up issue? Mr. Rodriquenz, I saw
two tanks but it's actually one large tank with a double wall steel petition in the middle. they call it two 4K
gallon tanks but technically its one 8K gallon tank. Marc, how much diesel do we need per week? I'm a bit
worried on how long 2k gallons will last. Mr. Rodriquenz, it's actually not how much diesel per week to your
concern, it's how much gas per week. I don't have an exact number but the police use approximately 500
gallons a week so we will need a monthly fill on gas. As far as diesel goes, that's why there is a 10k gasoline
tank and 5k diesel tank, we don't use the diesel that much until this time of year. But I can get you those
numbers. George, what's the life expectancy of the solution? And is there any price advantages to getting
buik delivery rather than pump fuel? Mr. Rodriquenz, Im not clear, this is in bulk. George, right but is there
a price savings that you can get? Mr. Rodriquenz, of course we don't buy it every day but there's a market
price and we get a percentage below the daily price, we don't pay tax, for convenience we work with the
people and typically order 500 or 3000 gallons because we guarantee "X" amount each year and our bid
would go by that. George, so over time that's sort of how you pay for it? Mr. Rodriquenz, well we don't
know any other way but there is a WEX program that is a card program, and every person in the staff has a
card, so I would take it to a designated station, it's easier to get gas than it is diesel fuel, and I would just
use the card like you would a credit card at Cumberland Farms. I would have to pay the tax then I would
have to apply for reimbursement. I just got into it this week so I am still reading on it. George, what's the
life expectancy of this? Mr. Rodriquenz, I'm guess, the ones I looked into it today, I want to say 50 years.
Chief Sullivan, backs what Mr. Rodriquenz says about the reliability of having the fuel tanks. Out of the
sending one of his trucks 10-11 minutes away or worse, out of town. Going to use a regular station with the
WEX program means having to go to a station that may be out of fuel because everyone is going to those
stations as well in cases of emergencies like the ice storm of 2008. This isn't just for the Fire Department
but for the Police and DPW so it makes more sense to have one.
Chief Marino, his situation is a little more challenging because his guys are patrolling 24/7. State troopers
use cards because they are all over the state, a lot of them are not close to home. Their duty stations or
barracks might be far from where they are. In the 2008 storm, the gas station on 13 and 2A couldn't get
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asked now they like i. Everyone sala they like it. me ten went to te auditing department r the city or
Fitchburg, and they all said they liked it as well. Mr. Rogers, wants to know why we would replicate what we
have and increase our environmental exposure when we could save $60-$280K. Terri, I think any cross-
benefit analysis is going to concern the fire or police and the concerns of the town. Also using this service,
what's the added benefit to having something in here rather than the alternative? Marc, from a risk
management point of view what is holding Lunenburg from having both? The WEX cards for regular fill ups
and the tanks for back-ups? There is a fee but it's a minimal fee. Terri, I don't think the question is if it costs
anything but rather the potential costs of what's the contract for the gas versus the cost per gallon through
the WEX program. Because if we are buying under market for the tanks and market for the WEX plus tax
then it would be interesting to see. Mr. Rogers, Cumberland Farms also has a club, if you are a member
then you can save .10 cents per gallon. I think this is something to really think about as well when it comes
to the environment. George, did this go through Capital Planning? John, it did a few weeks ago but before
Mr. Rogers presented any of this information. We already know we have to remove the two fuel tanks
because they are 30 years old and near the end of their life. It's going to cost about $50K to remove the
tanks and replace the hole then the engineering, the total project would be roughly $220K. $170K sounds
like a lot of money, but say it lasts 50 years, you divide $170k by 50 and roughly get $3400 per year, so it's
like over the life of the asset, it's just not that much money for the safety benefit. Mr. Rodgers, for the
record this is when I exit, I brought you my information and now it is up to you all to figure out what you
want to do with it.
4. Committee/Department updates
Public Access Cable-Marc
- Martee
Capital Planning-John H.
Dept. of Public Works - John H
Department updates
COA - John H
Library- Michelle W.
Police Dept - Marc
Fire Dept - George
Schools - Hannah
Monty Tech - Hannah
Green Comm Task Force-Jay
Sewer Commission -Jay
Charter Review Comm - Terri
Emailed the committee the vehicle maintenance report.
5. Minutes
Marc makes a motion to accept the minutes from January 9th. John Second. Vote 5-0
6. Town Manager/Financial Officer Reports
None
7. Public Comment
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9. Adjournment
John motion to adjourn. Marc second. Vote 5-0
Submitted by: Hannah Anderson
Attachments:
• FY20 Budget Message & Proposal
• FY20 Preliminary Omnibus Budget
: FV20 Line item Budget
FY20 Preliminary Budget Revenue Expense Sheet