2022-05-25: Joint Select Board Finance Committee Cic

Click timestamps in the text to watch that part of the meeting recording.

Joint Meeting Review: Select Board, Finance Committee, Capital Improvement Committee - May 25, 2022

Agenda

Based on the meeting flow, the likely agenda followed was:

  1. Call to Order & Opening Remarks [0:03 - 1:02]
    • Select Board Call to Order (Chair Duffy)
    • Finance Committee Call to Order (Chair Dorsey)
    • Capital Improvement Committee Call to Order (Chair Freeman)
    • Pledge of Allegiance 1:02
    • Acknowledgement of Uvalde, Texas Shooting (Chair Duffy) 1:25
  2. Public Comment 4:48 (No comments received)
  3. Joint Discussion: Proposed Land Acquisitions & Special Town Meeting Warrant Overview 5:38
    • Introduction to Acquisitions (Archer Street parcels, 149 Humphrey Street/Hawthorne) and related Special Town Meeting Articles (Acquisition, Capital, Zoning) 5:38
    • Presentation: Overview of Land Parcels (Peter Kane) 11:31
    • Presentation: Financial Overview & Rationale (Town Administrator Fitzgerald & Treasurer Luddy) 27:16
    • Joint Committee Q&A and Discussion (Financial Impact, Debt, Reserves, Capital Plan Implications, Future Use/Costs, Article 97) 40:11
  4. Finance Committee Adjournment 1:24:36
  5. Capital Improvement Committee Adjournment 1:25:45
  6. Select Board Business: Special Town Meeting Warrant (June 14, 2022) 1:26:45
    • Motion to Open Warrant 1:26:55
    • Discussion and Edits to Warrant Articles (Article 1: Land Acquisition; Article 2: Glover Zoning Overlay; Article 3: Capital Improvement Plan) 1:27:40
    • Motion to Close Warrant (as amended) 1:40:05
  7. Town Administrator Report (Sean Fitzgerald) 1:40:45
    • HR Director Introduction
    • King’s Beach Water Quality Update 1:41:45
    • Police/Fire Community Engagement Initiatives 1:45:00
    • Recreation Programs Overview 1:46:00
    • Memorial Day Events Reminder 1:50:10
  8. Votes of the Board: Consent Agenda 1:51:31
    • Discussion of VFW Liquor License Insurance (Member Fletcher) 1:53:20
    • Removal of Meeting Minutes (May 11, 16, 19) for discussion/amendment (Member Fletcher) 1:52:47
    • Vote to Approve Consent Agenda minus minutes 1:54:24
    • Discussion and Amendments to Minutes (Member Fletcher) 1:54:40
    • Vote to Approve Minutes as Amended 1:58:55
  9. Select Board Schedule Discussion 1:59:00
  10. Select Board Time 2:03:04
    • Member Eppley: Housing Authority Update (Funding, Discrimination Incident Report) 2:03:04
    • Member Fletcher: School Building Committee Communication, Police Appreciation, Timely Information Request, Rabies Clinic Announcement 2:10:19
  11. Adjournment 2:14:34

Speaking Attendees

  • Neal Duffy (Select Board Chair): [Speaker 3]
  • Tim Dorsey (Finance Committee Chair): [Speaker 8]
  • Rich Freeman (Capital Improvement Committee Chair): [Speaker 13]
  • Peter Kane (Director of Community Development): [Speaker 1], [Speaker 10]
  • Diane (Town Staff): [Speaker 15]
  • Unidentified Staff/Support: [Speaker 19]
  • Sean Fitzgerald (Town Administrator): [Speaker 2]
  • Patrick Luddy (Town Treasurer): [Speaker 5]
  • Katie Phelan (Select Board Member): [Speaker 11]
  • MaryEllen Fletcher (Select Board Member): [Speaker 4]
  • Eric Schneider (Finance Committee Member): [Speaker 9]
  • Cinda Danh (Finance Committee Member): [Speaker 7]
  • Ryan Tassan (Capital Improvement Committee Member): [Speaker 12]
  • David Grishman (Capital Improvement Committee Member): [Speaker 16]
  • Finance Committee Member (Name not stated): [Speaker 17]
  • David Eppley (Select Board Member): [Speaker 6]
  • Peter Spellios (Select Board Member): [Speaker 14]
  • Unidentified Speaker (likely staff or Board member): [Speaker 18]
  • Ethan (presumably Town Staff/Technical Support): [Speaker 12] (at start)

Meeting Minutes

1. Opening & Uvalde Acknowledgement Select Board Chair Neal Duffy called the Select Board meeting to order 0:03, followed by Finance Committee Chair Tim Dorsey 0:38 and Capital Improvement Committee Chair Rich Freeman 0:51 calling their respective committees to order for the joint session. Following the Pledge of Allegiance 1:02, Chair Duffy delivered poignant remarks acknowledging the recent mass shooting in Uvalde, Texas, reading a statement from the March for Our Lives organization and expressing frustration with inaction [1:25 - 4:45].

2. Joint Discussion: Land Acquisitions & Finances Chair Duffy outlined the joint meeting’s purpose: to discuss proposed acquisitions of two parcels on Archer Street (approx. 9.5 acres total) and the Hawthorne property (149 Humphrey St., approx. 1.47 acres), and the related Special Town Meeting warrant 5:38.

Peter Kane, Director of Community Development, presented an overview of the parcels 11:31. He detailed the Purchase & Sale agreement for one 5-acre Archer Street parcel ($400k purchase price, Sept 12 closing target) 14:00. He described the second 4.5-acre Archer Street parcel, currently subject to a 44-unit 40B proposal 15:05, noting negotiations are ongoing and the town’s interest predates the 40B filings 17:00. Mr. Kane then detailed the agreement for the Hawthorne property ($7M purchase price, Oct 31 closing target), emphasizing the partnership with the Athenas family 18:05. He showed a conceptual rendering for the Hawthorne site, stressing a robust community process would determine future use, similar to the Hadley School reuse discussions, and that state/federal funding partners were already being engaged 21:00. Mr. Kane also briefly reviewed the related Glover House zoning overlay proposal for the Special Town Meeting 22:21, outlining the proposed density increase (96 units) and affordability compromise (18%).

Town Administrator Sean Fitzgerald presented the rationale for pursuing open space, citing Swampscott’s density, environmental benefits, and the favorable (though changing) bonding market 27:16. Treasurer Patrick Luddy reviewed the town’s strong debt profile (AA+ rating, well below debt limit) 31:24, the total estimated project cost ($8.875M), potential 30-year bonding 33:39, and the FY23 Capital Plan ($3.2M borrowing) being moved to the Special Town Meeting 35:37. Mr. Luddy presented charts illustrating the projected debt service impact, showing the proposed acquisitions fitting within current projections but acknowledging the need for careful future planning 36:40. He outlined next steps including committee deliberations and the June 14 Town Meeting vote 39:40.

3. Joint Committee Q&A An extensive discussion followed involving members of all three committees 40:11.

  • Reserves: Chair Duffy and Treasurer Luddy confirmed General Stabilization (10.7%) and Capital Stabilization (2.54%) were currently above policy guidelines [41:45, 1:00:37]. The approximate $900k reserve commitment for the school project will be refined 42:53.
  • Tax Impact: Treasurer Luddy estimated the acquisitions’ preliminary tax impact at $80-$110 annually for the median home, before potential reserve offsets 44:36. Member Fletcher noted the prior school project estimate was ~$323/year 44:02.
  • Debt Ratios: FinCom Member Schneider inquired about debt service as a percentage of revenue (currently 9-10%) and related rating agency guidance 45:20.
  • Capital Planning: FinCom Member Danh requested modeling of future capital needs (including the potential middle school project) and their cumulative debt/tax impact over 5+ years to understand affordability 47:41. FinCom Chair Dorsey supported this, suggesting it could inform review of the current FY23 capital article requests 49:48. Member Danh emphasized the need to potentially “tighten our belt” on other capital items if taking on this new debt 50:31. Treasurer Luddy agreed to develop further modeling for committee review 51:17.
  • Future Costs (Hawthorne): Member Fletcher asked about costs beyond acquisition for developing the Hawthorne site 51:53. Mr. Kane stated Archer Street would remain natural forest (minimal cost), while Hawthorne development would involve significant community process and pursuit of state/federal funding; no immediate construction funds are sought 52:16.
  • Hadley/Hawthorne Timeline: Member Fletcher questioned the interplay between the Hawthorne project and Hadley School reuse 53:54. Mr. Kane envisioned parallel community processes for both, aiming for timely decisions without sacrificing quality 54:43.
  • Capital Plan Adjustments: FinCom Member (Name not stated) asked if the FY23 capital plan might be reduced 56:50. Mr. Kane and TA Fitzgerald stated the current recommendation is to proceed with the existing capital requests in addition to the land acquisition funding, emphasizing the need for continued disciplined investment after past underfunding [57:05, 57:33]. Mr. Kane pushed back on characterizing open space as merely “nice to do,” arguing it’s essential given Swampscott’s density 59:06. FinCom Chair Dorsey clarified his earlier point wasn’t about “hacking” the plan but prudently reviewing priorities given the new debt impact 59:48.
  • Funding “Bucket”: CIC Member Tassan asked if the acquisitions change the FY23 capital funding available or rely solely on new debt/reserves 1:00:56. Chair Duffy confirmed the FY23 capital funding target remains unchanged 1:04:11.
  • Hawthorne Revenue: CIC Member Tassan asked if revenue generation from Hawthorne should be assumed 1:01:50. Mr. Kane strongly advised assuming no significant revenue, prioritizing open/community space 1:04:25. Member Phelan echoed this 1:05:14. Member Eppley spoke of correcting past coastline development patterns that limited public access 1:05:38. FinCom Member Danh countered, requesting data on tax revenue generated by existing Humphrey Street condos 1:06:37. Member Fletcher expressed a desire for open community discussion on Hawthorne’s use, remaining open to some small-scale commercial elements like a restaurant 1:08:50.
  • Hawthorne Decision Basis: CIC Member Grishman asked how the initial determination for open space was made 1:10:15. Mr. Kane explained the prior Select Board unanimously prioritized open space, citing the site’s significance, avoiding protracted development battles, controlling the town’s destiny, and the belief that revenue wasn’t the primary driver 1:10:37. He reiterated Town Meeting and the Select Board are ultimate decision-makers after community input.
  • Article 97: CIC Chair Freeman asked about warrant language flexibility 1:13:26. Mr. Kane explained the proposed language allows general municipal purposes including open space, preserving flexibility before potentially dedicating the land under Article 97 (which would require legislative approval for future changes) 1:13:49. He clarified Article 97 mechanics in response to Member Danh 1:15:24.
  • Land Trust: Member Fletcher relayed resident interest in a land trust for potential donations towards acquisitions like Hawthorne 1:22:20. TA Fitzgerald confirmed the town can accept donations and could establish a special fund or explore trust mechanisms 1:22:56. Mr. Kane noted a resident is already donating land adjacent to an Archer Street parcel 1:23:40.

4. Committee Adjournments The Finance Committee 1:25:35 and Capital Improvement Committee 1:26:45 voted to adjourn their respective meetings, with plans to deliberate further on the proposals before Town Meeting.

5. Special Town Meeting Warrant The Select Board voted to open the warrant for the June 14 Special Town Meeting 1:26:55.

  • Article 1 (Land Acquisition): The Board discussed and agreed to remove a reference to 54 Foster Road 1:27:40 and change the committee comment to state FinCom and the Select Board “will report” at Town Meeting 1:29:05. Board members (Kane, Phelan, Eppley) reiterated the primary motivation for Hawthorne acquisition is open/community space, while acknowledging the need for community dialogue [1:29:45 - 1:33:10].
  • Article 2 (Glover Zoning): The Board confirmed the language reflects the Planning Board’s version and agreed FinCom “will report” due to potential financial implications 1:33:40.
  • Article 3 (Capital Plan): Two new items were noted: $25k for METCO program facility improvements and $25k for VFW facility improvements 1:36:00. TA Fitzgerald explained the rationale for each 1:36:00. Chair Duffy expressed philosophical hesitation about late additions but supported including them for committee review given their nature and amount 1:38:46. The Board agreed to change comments to state CIC and FinCom “will report.”
  • The Board voted to close the warrant with the agreed-upon changes, subject to final review by Chair Duffy and Mr. Kane 1:40:05.

6. Town Administrator Report TA Fitzgerald reported 1:40:45:

  • New HR Director/Assistant TA Pecan started.
  • King’s Beach water quality study continues; solutions are complex and costly ($20-50M for long-term fixes), and the beach will remain impaired this summer 1:41:45. Chlorination is currently not permitted by DEP/EPA 1:44:39.
  • Police and Fire are active in community engagement (Town Hall meetings, High Five Fridays, Drive for Kindness) 1:45:00.
  • Numerous free/low-cost Recreation programs are scheduled, including Pride Day (June 4) and Farmers Markets 1:46:00. Member Fletcher requested exploring extending summer programs; TA Fitzgerald and Member Phelan noted efforts and challenges (staffing) but support exploring options, including year-round after-school programs 1:47:15.
  • Memorial Day events include Field of Heroes (starting Friday) and the ceremony at Swampscott Cemetery (Monday 10 AM) 1:50:10. Member Phelan noted volunteer opportunities for Field of Heroes setup 1:51:11.

7. Consent Agenda The Board discussed the consent agenda 1:51:31. Member Fletcher questioned the VFW liquor license liability insurance status; staff confirmed it’s pending but required before issuance 1:53:20. Member Fletcher requested removing the May 11, 16, and 19 minutes. The Board voted to approve the consent agenda excluding the minutes 1:54:24. Member Fletcher then proposed specific amendments to the May 11 and May 19 minutes for clarity regarding ZBA meeting comments, pre-blast survey radius details, construction impact comments, and noting that Board discussions on land acquisitions occurred in executive session 1:54:40. The Board voted to approve the minutes as amended 1:58:55.

8. Select Board Schedule The Board discussed upcoming meetings 1:59:00. They tentatively cancelled the June 1 meeting but penciled in June 8, a brief meeting before the June 14 Town Meeting, and potentially June 15 depending on Town Meeting outcomes. TA Fitzgerald noted he might need a brief Zoom meeting for a department head offer confirmation.

9. Select Board Time

  • Member Eppley reported on recent Housing Authority news: $172k state funding for porch replacements at Duncan Terrace and funds for ADA compliance upgrades 2:03:04. He then read a statement from Housing Authority Executive Director Irma Chez detailing an incident of racial/national origin discrimination she and a staff member experienced from someone involved with the Housing Authority, expressing the hurt caused and condemning such behavior 2:04:58. TA Fitzgerald expressed support for Ms. Chez and offered town resources (including DEI consultant) to address the situation 2:07:57. Member Eppley stressed the importance of acknowledging that such discrimination occurs in Swampscott 2:09:16.
  • Member Fletcher discussed communication regarding the school building project, suggesting better website integration and brief Select Board updates 2:10:19. She thanked the Police Department for a recent response 2:12:20, requested more timely delivery of meeting materials to Board members 2:12:40, and announced the annual Rabies Clinic on June 22nd 2:13:05.

10. Adjournment The meeting was adjourned by motion 2:14:34.

Executive Summary

This joint meeting of the Swampscott Select Board, Finance Committee (FinCom), and Capital Improvement Committee (CIC) focused primarily on ambitious proposed land acquisitions and their financial implications, setting the stage for a Special Town Meeting on June 14th. Key outcomes and discussions included:

  • Major Land Acquisitions Proposed: The Select Board presented plans negotiated over the past year (largely in executive session 1:57:40) to acquire three parcels: ~5 acres on Archer Street ($400k), ~4.5 adjacent acres on Archer Street (price TBD, negotiations ongoing amidst a 40B housing proposal 15:05), and the ~1.5-acre Hawthorne-by-the-Sea property on Humphrey Street ($7M) 11:31.
    • Why it Matters: These acquisitions represent potentially 50% of Swampscott’s remaining ~19 acres of developable land 12:30. Proponents framed it as a crucial, perhaps overdue 59:06, opportunity to preserve open space in the densely populated town, enhance public access (especially waterfront), and control the destiny of key parcels 1:10:37.
  • Financial Plan & Impact: The total estimated cost is $8.875M, proposed to be funded via 30-year general obligation bonds 33:39. Town financial staff presented data showing the town’s strong financial position (AA+ rating, healthy reserves 31:24) makes the acquisitions feasible. Preliminary estimates suggest an $80-$110 annual tax impact for the median home, potentially offset by reserve funds 44:36. FinCom members requested more detailed long-term capital modeling to understand the cumulative impact alongside other needs like a potential middle school project [47:41, 49:48].
  • Hawthorne Future Use Debated: While the presenting staff (Mr. Kane) and several Select Board members (Kane, Phelan, Eppley) strongly advocated for the Hawthorne property becoming primarily public open/community space with no expectation of revenue generation [1:04:25, 1:05:14, 1:05:38], Member Fletcher urged a full community discussion and remained open to including small commercial elements like a restaurant 1:08:50. A robust public process to determine the final use was promised [21:00, 54:43].
    • Why it Matters: The future of the iconic Hawthorne site is a major decision. The debate highlights differing visions – prioritizing passive/active recreation and access versus potentially incorporating some revenue-generating or service-oriented uses. The warrant article language allows flexibility 1:13:49.
  • Special Town Meeting Warrant Finalized: The Select Board opened and closed the warrant for the June 14 Special Town Meeting [1:26:55, 1:40:05]. Key articles include the land acquisition funding (Article 1), a zoning overlay for the Glover restaurant site redevelopment (Article 2) 22:21, and the FY23 Capital Improvement Plan (Article 3), which now includes small additional funds for METCO and VFW facility improvements 1:36:00. Committees will deliberate and report recommendations at Town Meeting.
  • Housing Authority Discrimination Incident: Member Eppley reported significant state funding secured by the Housing Authority 2:03:04 but also read a statement from the Executive Director detailing recent discriminatory remarks experienced by her and staff 2:04:58. This brought a serious issue of local discrimination directly into the public meeting forum.
  • Ongoing Town Business: The Town Administrator reported on King’s Beach remediation challenges (cost, permitting hurdles 1:41:45), police/fire community engagement 1:45:00, robust summer recreation offerings 1:46:00, and upcoming Memorial Day events 1:50:10. Member Fletcher advocated for improved communication regarding the school project and timely information flow to the Board [2:10:19, 2:12:40].

Overall Significance: This meeting marked a potential turning point for Swampscott’s approach to open space, leveraging improved finances for significant preservation efforts. The upcoming Town Meeting will be critical in determining whether the community supports this vision and the associated financial commitment. The discussions highlighted both consensus on the town’s strong financial management and differing perspectives on future priorities and the specific use of the Hawthorne property.

Analysis

This joint meeting showcased a Select Board and administration confidently advancing a major strategic initiative – the acquisition of significant open space – grounded in years of improved financial positioning. The presentations by Director Kane and Town Administrator Fitzgerald, supported by Treasurer Luddy, were designed to convey both the opportunity and the town’s readiness [11:31, 27:16, 31:24]. The framing emphasized proactive planning, environmental benefit in a dense town, and seizing a unique moment, particularly regarding the Hawthorne property [28:00, 1:10:37]. Mr. Kane’s repeated emphasis on partnerships with selling families aimed to build goodwill 18:45.

The Finance Committee members, particularly Chair Dorsey and Member Danh, played their expected role effectively, probing the financial underpinnings and long-term implications [41:45, 47:41, 49:48]. Their requests for more comprehensive multi-year capital modeling were reasonable and necessary fiduciary diligence, pushing back against an implicit “we can afford this now” narrative by asking “what about future needs?” [48:14, 50:31]. This interaction revealed a potential tension: the administration/Select Board’s focus on seizing the current opportunity versus FinCom’s caution about cumulative long-term debt burdens.

The debate around the Hawthorne property’s future use exposed differing philosophies on the Select Board itself, despite Mr. Kane’s assertion of prior unanimity 1:10:37. While the prevailing sentiment among speakers leaned heavily toward non-commercial open space (Kane, Phelan, Eppley [1:04:25, 1:05:14, 1:05:38]), Member Fletcher’s call for broader discussion including potential small commercial uses represented an important alternative viewpoint 1:08:50. Member Danh’s interjection about condo tax revenue subtly challenged the narrative that past waterfront development was solely negative 1:06:37, adding complexity to the historical context invoked by Member Eppley. The effectiveness of the open space argument will depend on whether Town Meeting members prioritize the non-revenue benefits (access, preservation, community space) over potential alternative uses or purely fiscal concerns.

The discussion about adding METCO and VFW funding to the capital plan late in the process 1:36:00 highlighted TA Fitzgerald’s ability to insert priorities, albeit small ones, even outside the standard budget cycle. While Chair Duffy expressed procedural discomfort, the items were ultimately included, likely due to their sympathetic nature and small dollar amount 1:38:46. This demonstrated a degree of flexibility (or perhaps deviation from process) that could draw scrutiny.

Member Eppley’s reading of the Housing Authority Director’s statement on discrimination was a powerful moment 2:04:58. Bringing this issue, stemming from a related but separate public body, into the Select Board meeting served to publicly condemn the alleged behavior and underscore ongoing challenges with discrimination in town, aligning with the Select Board’s stated DEI commitments. Its effectiveness lies in making the issue visible and eliciting a supportive response from the Town Administrator 2:07:57.

Member Fletcher’s consistent probing on details – tax impact 44:02, future costs 51:53, minutes accuracy 1:54:40, communication processes 2:10:19 – positioned her as a detail-oriented watchdog for transparency and resident impact. Her request for more timely information for the Board itself 2:12:40 suggested potential internal process frustrations.

Overall, the meeting demonstrated a Select Board largely unified on the direction of the land acquisitions but still needing to navigate internal differences on specifics (Hawthorne use) and external fiscal scrutiny from FinCom. The administration appeared well-prepared to advocate for the proposals, while committee members fulfilled their oversight function. The success of the initiative now rests on convincing Town Meeting voters of its value and affordability within the larger context of town finances and future needs.