===PAGE 1=== Page 1 of 8 Select Board Meeting Minutes December 17, 2024 Town of Lunenburg Select Board Meeting Minutes Town Hall, 17 Main Street and via Zoom Tuesday December 17, 2024 Members Present: Caesar Nuzzolo, Michael-Ray Jeffreys, Amanda Moore, Tom Alonzo, Renee Emkey Also Present: Carter Terenzini, Interim Town Manager Public Comment Participants are listed in the minutes CALL TO ORDER AND PLEDGE OF ALLEGIANCE The meeting was called to order at 7:00 PM by Chair Nuzzolo . The Pledge of Allegiance was recited. Chair Nuzzolo noted that it was being recorded and broadcast live on Lunenburg Public Access Channel, Facebook Live, and would be uploaded to the Lunenburg Access YouTube channel. BOARD COMMENTS Vice Chair Jeffreys reminded the community that the Municipal Building Design Committee meets on the 1st and 3rd Monday of each month at 5:30 PM. He encouraged public participation, noting they are working with an architectural team on designing the new town hall and recently reviewed initial design concepts. SCHEDULED MEETINGS AND HEARINGS Introduction: Debra Goodsell, Council on Aging Director Deb Goodsell introduced herself to the Board alongside outgoing Director Sue Doherty and Council on Aging Chair Deb Lincoln. Ms. Goodsell has experience as the Director of Council on Aging for the Town of Clinton, and expressed excitement to join Lunenburg. Sue Doherty praised her qualifications and experience, saying she couldn’t think of a better person to take over her role. Ms. Lincoln expressed confidence in Debra Goodsell that she would be an amazing asset. Chair Nuzzolo welcomed Ms. Goodsell to Lunenburg on behalf of the Select Board. Chair Nuzzolo then read a proclamation recognizing Sue Doherty for her years of service as Council on Aging Director. The proclamation highlighted Sue Doherty's accomplishments, including expanding services and programs, overseeing facility improvements, and elevating the Adult Activity Center. It was declared December 30th to be Golden Age Day in Lunenburg. Presentation Re: Town Manager Screening Committee Status by Tim Murphy and John Petrin Tim Murphy, Chair of the Town Manager Screening Committee and John Petrin from Community Paradigm provided a formal update on the town manager search process: The Screening Committee, comprised of representatives including Tom Alonzo from the Select Board, conducted interviews with six candidates and has shortlisted three finalists for further interviews with the Select Board. These finalists emerged from a rigorous vetting and recruitment process facilitated by Community Paradigm, which entailed extensive consultations with department heads and board members to establish a candidate profile and recruitment strategy. The names of the finalists are yet to be publicized as the reference checks are ongoing. ===PAGE 2=== Page 2 of 8 Select Board Meeting Minutes December 17, 2024 Interviews with the Select Board are scheduled for January 14th. Initially, plans accounted for two nights of interviews to accommodate four candidates. However, with three candidates finalized, all interviews will take place on January 14th, commencing at 5:30 PM. Petrin recommended the Board be prepared to potentially make an appointment either on the same evening or the following night, January 15th, stressing the importance of expediency once candidates are revealed, to avert the risk of them being pursued by other opportunities. He expressed readiness to furnish suggested interview questions and engage in discussions with the Board regarding interview logistics. Mr. Petrin proposed sending a rubric along with a set of question guidelines from the initial screenings to facilitate the Board's preparations. A consensus emerged to permit Petrin to lead the primary questioning, with Board members integrating follow-up questions where needed. In-depth discussions took place on interview logistics, particularly concerning the incorporation of candidate presentations within the 75-minute interview timeframe. It is the intent that each candidate will be granted 10 to 15 minutes to present on a municipal-related topic of their choosing, allowing simultaneous questioning. This approach is designed to streamline the interviews while enabling the Board to appraise the candidates’ presentation capabilities. Finally, Petrin advised the Board to be poised for contract negotiations with the selected candidate promptly after the decision is made. The Board was advised to draft preliminary contract structures and designate bargaining team members to facilitate a seamless transition upon candidate selection. Petrin urged that legal counsel be consulted to finalize terms swiftly, thereby preventing potential hiring delays. Presentation Re: FY’ 24 Year End (Finance Director) Finance Director Ezequiel Ayala delivered the FY2024 unaudited year-end financial report with the following key highlights: • Total revenue collections stood at $48,390,000, surpassing budget projections by achieving 101.4%. • Investment income notably exceeded expectations, realizing $414,000, equivalent to 484% of the projection. • Local receipts exceeded estimates, bringing in $6,940,000. • State aid reached 96% of projected estimates, with complete funding for Chapter 70 and unrestricted local government aid. • Total expenditures amounted to $46,463,000, representing 96.7% of the budget, with actual expenditures being 1.78% lower than in FY2023. • Certified free cash was established at $2,270,000. • The tax rate was confirmed at $14.36. Ayala highlighted that the practice of conservative budgeting has consistently resulted in revenue surpluses. As such, he proposed adjusting future budgets to more accurately reflect actual expenditure. The Board engaged in discussions regarding the effects of conservative budgeting, focusing on the need for a judicious balance between maintaining reserves and addressing pressing community requirements. Additionally, conversations addressed staffing vacancies, which contributed to reduced expenditure levels. Joint Meeting with Budget Task Force: Summary and Recommendations At 7:55 PM, Anthony Sculimbrene, Chair of the Budget Task Force, issued a formal presentation highlighting the task force's critical findings and recommendations: ===PAGE 3=== Page 3 of 8 Select Board Meeting Minutes December 17, 2024 Identified Key Issues: 1. Revenue Constraints: Limitations enforced by Proposition 2½ have impacted potential revenue growth. 2. Vacancies in Key Roles: Uncompetitive compensation packages have resulted in staffing shortages. 3. Financial Systems: Current processes are outdated and complex, necessitating modernization. Major Recommendations: 1. Bank Account Consolidation: Streamline the town's bank accounts to enhance interest income. 2. Comprehensive Financial Audit: Engage in an exhaustive audit to ensure financial transparency and accountability. 3. Implementation of the Prudent Investor Rule: Leverage this rule to optimize the town’s investment strategies. 4. Community Preservation Act (CPA) Adoption: Implement the CPA to secure additional funding and preserve public resources. 5. Green Energy Grants: Actively seek grants to finance school HV AC projects, aligning with sustainability goals. Additional Recommendations: • Expanding solar energy initiatives. • Reevaluating and updating town fees and charges. • Enhancing the efficiency of financial workflows. The Board participated actively in thorough discussions focused particularly on the CPA adoption and its implications for town priorities vis-a-vis taxpayer burden. Board members expressed gratitude for the task force's comprehensive efforts and committed to an ongoing review of the recommendations to ascertain feasible implementation strategies. INTERIM TOWN MANAGER REPORT • Mr. Terenzini worked closely with the finance team on decisions related to tax foreclosures, revenue projections, and the foreclosure process for tax-delinquent properties. This involved extensive discussions and strategizing about the best approach for moving forward with foreclosures, while ensuring that all legal requirements were met, particularly in terms of notifying property owners within specific timelines after foreclosures are finalized. • Confirmed that the data files for tax bills have successfully been sent to the printer. Tax bills are anticipated to be distributed by the end of the week. • The Ritter Building roof project is advancing as planned. The contractor has confirmed their projected cost estimate, and the project is currently under budget. • Progress continues on the Department of Public Works (DPW) floor replacement project, while the roof project has commenced, beginning with stripping work. Some unforeseen issues with rotting have been discovered, though they are manageable with repairs costing under $1,000. • The school bids for the Turkey Hill fire alarm system have presented challenges. Bids came in significantly over budget, adding complexity to ARPA fund allocations. Bids ===PAGE 4=== Page 4 of 8 Select Board Meeting Minutes December 17, 2024 received were at $322,000 against a remaining budget of $260,000, which complicates the financial landscape and necessitates exploring alternative funding options, possibly bridging any gaps with additional funds or town meetings. • Recruitment is actively ongoing for several critical positions, including PAC videographers and the assistant to the sewer business manager. Police officer interviews have been conducted, and further steps such as background checks and psychological evaluations are underway. • Continued efforts are being made to efficiently manage ARPA projects and contracts. Procedures have been put in place to enhance tracking of project milestones, expenditures, and contract compliance, ensuring that resources are deployed effectively and in accordance with ARPA guidelines. Additionally, Mr. Terenzini highlighted a software initiative to update the town's financial software system, as the current Munis system is outdated and unsupported by manufacturer updates. This includes collaboration with IT and finance personnel to explore potential modernization strategies, such as cloud-based solutions, to improve operational efficiency and financial reporting accuracy. The Finance Director and team have also been involved in discussions on improving charts of accounts, standardizing financial reporting, and alleviating redundant processes. Action Re: License Renewals The following businesses have submitted applications to the Office of the Select Board for their annual renewal. All fees have been processed and applications have been reviewed. Common Victualler Lunenburg Diner (324 Electric Ave #3) Il Forno Restaurant & Catering (494 Electric Ave) Shady Point Beach & Campground (701 Reservoir Rd) Dunkin Donuts (451 Massachusetts Ave) Dunkin Donuts (400 Electric Ave) Lunenburg Gas and Market (400 Electric Ave) Dunkin Donuts (134 Leominster-Shirley Road) Whalom Gas Service (1 Whalom Road) Member Alonzo made Motion to renew all the Common Victualler Licenses as read. Seconded by Member Moore. All, aye. Passed unanimously (5-0-0). Miscellaneous (Weekday Entertainment) Smokestack Roasters (39 Massachusetts Ave) Bedrock Bar and Grill (324 Electric Ave, #4) Bad Larry’s (1 Main St, Suite 4) Il Forno Restaurant & Catering (494 Electric Ave) Miscellaneous (Automatic Amusement) Bedrock Bar and Grill (324 Electric Ave, #4) Whalom Gas Service (1 Whalom Rd) Baker’s Whalom Variety (423 Electric Ave) ===PAGE 5=== Page 5 of 8 Select Board Meeting Minutes December 17, 2024 Lakeview Club (449 Whalom Rd) Miscellaneous (Jukebox) Bedrock Bar and Grill (324 Electric Ave, #4) American Graffiti (113 Summer St) Bad Larry’s (1 Main St, Suite 4) Lakeview Club (449 Whalom Rd) Miscellaneous (Base) Lakeview Driving Range (15 Carr Ave) Member Alonzo made Motion to renew all the miscellaneous licenses as read by the Chair. Seconded by Vice Chair Jeffreys. All, aye. Passed unanimously (5-0-0). Action Re: Status and Potential Contingency Vote on ARPA Interim Town Manager Carter Terenzini provided an official report on the management of the remaining ARPA (American Rescue Plan Act) funding, including approximately $83,000 yet to be allocated. He underscored the importance of maintaining flexibility to manage these residual funds in light of potential budget overruns on current school projects or other emerging requirements. Mr. Terenzini pinpointed areas for possible financial adjustment. One significant area involves augmenting funds devoted to addressing staff payroll and IT challenges by approximately $12,000, driven by ongoing reliance on external IT support services from Suzor due to the vacancy of the network administrator role. Utilizing external service providers incurs higher hourly costs than retaining a full-time network administrator. Additionally, he recommended increasing the Department of Public Works (DPW) fund allocation by $23,000 to address unforeseen expenses related to tree removal and other operational contingencies, emphasizing careful adherence to specific contract limitations for financial efficiency. An allocation of $32,500 to cover anticipated town hall capital cost overruns was confirmed, sustaining a $10,000 budgetary contingency for pressing needs. The Turkey Hill fire alarm project needs budget supplementation with bids exceeding expectations by approximately $62,000, compounded by required engineering oversight expenditures. Therefore, there is a proposition to utilize remaining ARPA funds to close this financial breach, contingent upon finalized bid evaluations and financial assessments. Mr. Terenzini sought endorsement from the Board to keep ARPA funds available for these prospective allocations. He recommended deferring final funding allocation decisions pending receipt of upcoming bid results. The Board consented unanimously, thereby delegating Mr. Terenzini with the authority to make conclusive funding decisions. Member Alonzo moved to entrust the last $83,000 plus dollars that remain in ARPA to be committed to the interim town manager pending opening of bids this Friday for the school and possible allocation to the school and to commit anything else as he sees fit as we have discussed at this board, and to report back. Vice Chair Jeffreys seconded. The motion passed unanimously (5-0-0). ===PAGE 6=== Page 6 of 8 Select Board Meeting Minutes December 17, 2024 Action Re: Sell or Hold 531 Reservoir Rd & 56 Carr Ave Interim Town Manager Carter Terenzini provided clarity on the complexities associated with the foreclosure process, emphasizing the need for prompt decision-making, given the requirement to notify the property owner within 14 days, should the town decide to retain a property. Mr. Terenzini also highlighted the necessity of a formal appraisal, which would entail expenses, to assess the current market value of any retained property. If the town chooses this route, they are obligated to pay the difference between the appraisal value and the accumulated taxes, penalties, and interest to the property owner. In evaluating the two properties, the Board agreed that further information is vital before proceeding with any decisions on 56 Carr Avenue, particularly whether there are any approved development plans by the planning board or ZBA for that property. This decision was influenced by discussions questioning the validity of any development plans, as they might have expired. Meanwhile, the Board was ready to take decisive action on 531 Reservoir Road. After deliberations, it was deemed appropriate to foreclose on the property and subsequently sell it. Mr. Terenzini confirmed that the town could proceed with foreclosure on this property without any immediate constraints. Vice Chair Jeffreys moved for the Select Board to authorize the tax title foreclosure of 531 Reservoir Road and the eventual sale of said property. Member Alonzo seconded. All, aye. Motion passed unanimously (5-0-0). Action Re: Q1 FY ’25 Ambulance Write-Offs Ezequiel Ayala presented the ambulance write-offs for the first quarter of FY2025. The total amount of $26,318.68 in uncollectible bills was submitted for consideration to be written off the books. Ayala explained that while these debts are being written off the financial records, the town will still pursue collections through a separate collection company. Although these balances will no longer be reflected in the town's receivables, any revenue collected will still be received as income by the town. An inquiry was raised regarding the possibility of placing liens on properties owned by individuals with outstanding debts, to which Mr. Ayala clarified there was no existing precedent for this being done, and no clear legal basis had been identified. As part of regular financial maintenance, Mr. Ayala emphasized the importance of addressing such write-offs on a quarterly basis to stay current, noting the previous write-off exercise had been conducted after a significant interval had elapsed, resulting in a much larger amount at that time. Vice Chair Jeffreys Moved to write off the Q1 FY’25 ambulance uncollectible bills as presented in the amount of $26,318.68. Member Alonzo seconded. All, aye. Motion passed unanimously (5-0-0). Action Re: Comparison Communities for Wage and Other Studies Mr. Terenzini presented a proposed list of comparison communities to use for wage and benefits studies, based on a 45-minute drive time radius. The Board discussed the methodology and suggested including additional economic factors like average tax bills and affordability ratios. They agreed to have Mr. Terenzini refine the analysis and bring it back for further review. ===PAGE 7=== Page 7 of 8 Select Board Meeting Minutes December 17, 2024 Member Moore requested that the Interim Town Manager track and report on the volume of public records requests being received. Committee Reports • School Committee: Member Emkey noted the School Committee is scheduled to meet the day following this meeting, December 18th, 2024. • Town Manager Screening Committee: Member Alonzo reported that the screening committee has completed its work, resulting in the identification of three finalists. He acknowledged John Petrin and the committee chair for their excellent leadership throughout the process, highlighting the committee's ability to adhere to its schedule and effectively evaluate candidates. • Capital Planning Committee: Member Alonzo informed the Board that the Capital Planning Committee met the previous day and successfully finalized its list of projects. This list has been submitted to the Interim Town Manager, detailing ranked capital projects for upcoming budget considerations. • Municipal Building Design Committee: Vice Chair Jeffreys shared insights from the Municipal Building Design Committee's recent meeting, during which they reviewed initial layout concepts presented by the architectural team. The presentation encouraged discussions on site operations and the building's future functionality. Mr. Jeffreys highlighted a conversation concerning whether to accommodate Public Access Cable (PAC) studio requirements in the new municipal building. He mentioned the committee's split views on the necessity of providing additional studio space for PAC, citing cost and size as the main concerns. Mr. Jeffreys pointed out the committee's overall perception that public sentiment is not in favor of dedicating high-value studio space to PAC within the new facility. Given the concerns discussed, the Board agreed it would be prudent to invite PAC representatives to attend an upcoming meeting to discuss potential solutions. Upcoming Meeting/Events Schedule The next regular Select Board meeting will be January 7, 2025. Town Manager candidate interviews are scheduled for January 14-15, 2025. PUBLIC COMMENT John Bowen (via Zoom), 162 Highland Street, thanked Finance Director Ezequiel Ayala for his exceptional work. Mr. Bowen emphasized Mr. Ayala's skillful contribution to the town's finances. Mr. Bowen noted that he has gone above and beyond, considering the pay level of his position, and stated that he consistently returns phone calls and maintains excellent availability. In addition, Mr. Bowen voiced his disagreement with some of the Budget Task Force's recommendations, particularly around the subject of tax overrides. He contended that the town could manage larger tax increases to address various needs and expenses, suggesting a 5.5% annual tax increase as a possible strategy. Mr. Bowen argued that the current mindset of adhering to the constraints of Proposition 2½ might not adequately fulfill the town's financial requirements and emphasized protection for fixed-income residents through potential exemptions. He urged the Board to consider an approach similar to that of towns like Weston and Dover, asserting these communities keep state intervention limited by self-financing effectively through overrides and autonomous fiscal management. ===PAGE 8=== Page 8 of 8 Select Board Meeting Minutes December 17, 2024 Adjourn Member Alonzo moved to adjourn the meeting. Member Moore seconded the motion. The motion passed unanimously (5-0-0). The meeting adjourned at 10:35 PM. Respectfully Submitted, Annie Aubrey Executive Assistant to the Town Manager These Minutes were reviewed and approved by the Select Board on: Tuesday January 21, 2025 Member Tom Alonzo made Motion to Approve minutes from December 17, 2024. Seconded by Member Renee Emkey. All, aye. Passed unanimously (5-0-0).