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MINUTES - Regular - 2/9/2006 332 CITY OF SALEM FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL A Regular Meeting of the City Council was held in the Council Chamber on Thursday, February 9, 2006 at 7.00 P.M., for the purpose of transacting any and all business. Notice of this meeting was posted on February 3, 2006 at 10.31 A.M. All Councillors were present. Council President Jean M. Pelletier presided. Councillor Sosnowski moved to dispense with the reading of the record of the previous meeting. It was so voted. President Pelletier requested that everyone please rise to recite the Pledge of Allegiance. Councillor Bencal took a moment of personal priviledge to read a note sent by the family of the recently deceased Robert Dionne. #114 —APPT. OF RICHARD J. VISCAY, JR. AS FINANCE DIRECTOR/AUDITOR The Mayor's appointment of Richard J. Viscay, Jr. to serve as Finance Director/Auditor for a term to expire January 31, 2009, was confirmed under suspension of the rules by a roll call vote of 10 yeas, 1 nays, 0 absent. Councillors Bencal, Corchado, Furey, Lovely, O'Keefe, Prevey, Sargent, Sosnowski, Veno and Pelletier were recorded as voting in the affirmative. Councillor O'Leary was recorded as voting in the negative. Councillor O'Leary requested and received unanimous consent to suspend the rules to allow Mr. Viscay to speak. #115 —APPR. GOLF COURSE — EQUIPMENT The following Order, recommended by the Mayor, was adopted under suspension of the rules by unanimous roll call vote of 11 yeas, 0 nays, 0 absent. ORDERED: That the sum of Twenty-One Thousand Three Hundred Dollars ($21,300.00) is hereby appropriated from the "Receipts Reserved — Golf Course" account to the "Golf Course — Equipment" account in accordance with the recommendation of Her Honor the Mayor. #116 — TRANSFER PUBLIC PROPERTY— OIL HEAT The following Order, recommended by the Mayor, was adopted under suspension of the rules by unanimous roll call vote of 11 yeas, 0 nays, 0 absent. CITY OF SALEM 333 FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL ORDERED: That the sum of Twenty Thousand Dollars ($20,000.00) is hereby appropriated from the "Public Property — Telephone" account to the "Public Property — Oil Heat" account in accordance with the recommendation of Her Honor the Mayor. #117 —APPR. CEMETERY— SEASONAL LABOR The following Order, recommended by the Mayor, was referred to the Committee on Administration and Finance. ORDERED: That the sum of One Hundred Six Dollars and Fifty Cents ($106.50) is hereby appropriated for the "Trust Fund — Perpetual Care Interest Income" Account to the "Cemetery — Seasonal Labor" Account in accordance with the recommendation of Her Honor the Mayor. #118 — ORDINANCE AMENDING CH. 34, SEC. 159 DEALERS IN SECOND HAND VALUABLES The following Ordinance, recommended by the Mayor, was adopted for first passage. In the year two thousand and six An Ordinance to amend an ordinance relative to Dealers in Gold, Silver and Other Valuable Secondhand Items. Be it ordained by the City Council of the City of Salem, as follows: Section 1. Chapter 34 Secondhand Goods is hereby amended by deleting in its entirety Article IV, Section 34-159, Keeping of article for two weeks before resale or removal from the city, and replacing it with the following new section: "Chapter 34. Article IV. DEALERS IN GOLD, SILVER AND OTHER SECONDHAND ITEMS. Section 34-159. Keeping of articles for thirty days before resale or removal from the city. No item purchased or received by any dealer or keeper of a shop pursuant to this article shall be removed from the city, sold, otherwise disposed of or its identity changed until at least thirty days has elapsed from its date of purchase, unless permission in writing has been obtained from the Chief of Police or his designee who may request to observe or photograph such item. Stamped and assayed gold and silver bullion and coins shall not be subject to the holding requirement imposed by this section." Section 2. This Ordinance shall take effect as provided by City Charter. 334 CITY OF SALEM FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL #119 —ACCEPT M.G.L. CHAP. 59, SEC. 59A, ASSESSMENT OF LOCAL TAXES, ABATEMENT The following Order, recommended by the Mayor, was adopted under suspension of the rules by unanimous roll call vote of 11 yeas, 0 nays, 0 absent. ORDERED: That the provisions of Massachusetts General Laws, Chapter 59, Section 59A, are hereby accepted. #120 — ORDINANCE AMENDING CH. 2, SEC. 466, COLLECTION OF OUTSTANDING PROPERTY TAXES The following Ordinance, recommended by the Mayor, was adopted for first passage by unanimous roll call vote of 11 yeas, 0 nays, 0 absent. In the year two thousand and six An Ordinance to amend an ordinance relative to Collection of Outstanding Property Taxes Be it ordained by the City Council of the City of Salem, as follows: Section 1. Chapter 2, Article I 11, Division 8, City Treasurer/ Collector is hereby amended by inserting the following new section, Section 2-466: Ch. 2-466, Collection of outstanding taxes on sites zoned for commercial and industrial use and at which there has been a release of oil or hazardous material. The Treasurer/Collector may, upon application of an owner of a site zoned for commercial or industrial use and at which there has been a release of oil or hazardous material, negotiate an agreement between the city and a commercial or industrial property owner who qualifies as an eligible person, as defined in Section 2 of Chapter 21 E of the Massachusetts General Law, regarding the abatement of outstanding interest, penalties, and payment of real estate tax obligations on said sites or portions of sites. Such agreement, for the purpose of continuing environmental cleanup and redevelopment of the site, shall include, but shall not be limited to, the amount outstanding, the percent of interest to accrue if determined applicable, the description of quantifiable monthly payments, the inception date of such payments, the date of the final, late penalties, immediate repayment upon sale or transfer of the entire site or upon the sale or transfer of a portion of the site repayment on a pro-rata basis, and any other contractual obligations arranged between the parties. Copies of each such agreement shall be signed by the Mayor and by the owner of the property in question, notarized, attested to be the City Clerk, and provided to the Massachusetts Department of CITY OF SALEM 335 FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL Environmental Protection, the federal Environmental Protection Agency, the Commissioner of the Department of Revenue, the City Council and the owners of the property in question. Section 2, This Ordinance shall take effect as provided by City Charter. #121 — ORDINANCE AMENDING ZONING 110 BOSTON ST. FROM R-2 & B-2 TO R-3 & B-2 The following Ordinance, recommended by the Mayor, was referred to the Committee on Community and Economic Development and referred to the Planning Board to schedule a joint public hearing with the City Council. In the year two thousand and six An Ordinance to amend an ordinance relative to zoning Be it ordained by the City Council of the City of Salem, as follows: Section 1. That the current zoning of the Endicott School property located at 110 Boston Street, as shown on the Assessors Map 16, Lot 0172, be amended from a combination of R-2 and B-2 to a combination of R-3 and B-2, in accordance with the current zoning boundary lines. Section 2, This Ordinance shall take effect as provided by City Charter. #122 — COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) & MANAGEMENT LETTER The following letter was received from the Mayor submitting the Comprehensive Annual Financial Report (CAFR) and Management Letter from the City's audit firm, Powers and Sullivan. Honorable Salem City Council 93 Washington Street Salem, MA 01970 Re: Comprehensive Annual Financial Report (CAFR) and Management Letter Ladies and Gentlemen of the Council: Attached please find a copy of the City's recently completed Comprehensive Annual Financial Report (CAFR). A CAFR is a rigorous review of the City's finances and provides a more thorough 336 CITY OF SALEM FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL analysis of municipal financial statements and fund balances. As you know, in prior years the City has undertaken a more traditional audit report. The CAFR provides all the information included in the traditional independent audit report, but supplements the balance sheet information with commentary and analysis on fund activities. In addition, this initial CAFR will serve as a good starting point in helping the City to set realistic fiscal planning goals for the future. Lastly, the CAFR has been submitted to the Government Finance Officers Association (GFOA) for their review and approval. In 1945, the GFOA established a certificate program for CAFR submissions, as a means to recognize and encourage excellence in financial reporting by state and local governments. I look forward to a response from the GFOA on the submission of our CAFR. In addition to the CAFR, I have also attached a copy of the Management Letter prepared by the City's audit firm, Powers and Sullivan. The Management Letter identifies several areas of concern related to financial operations. I take the recommendations and concerns of our auditor very seriously and will be working with the new Finance Director and all of our Department Heads to address these matters. Many of the concerns identified stem from poor budgeting practices and will need to be addressed as part of the FY2007 budget submittal. Given the magnitude of the comments related to the City's financial condition, coupled with our meager fund balances, I am quite concerned about the possibility of a drop in the City's current bond rating. As you know, we are working on a plan to address the current FY2006 budget deficit, with an eye towards the anticipated challenges related to the FY2007 operating budget. However, this may not be enough to forestall a reduction of our current bond rating by the rating agencies. I am working with Peter Frazier, the City's Financial Advisor, and members of the Management Task Force to review and discuss strategies related to this concern. Given the amount of information included in the Management Letter, I would suggest that the City Council Committee of the Whole invite representatives from Powers and Sullivan to a meeting to further discuss their findings. Very truly yours, Kimberley Driscoll Mayor #123 — REVIEW CURRENT DOG ORDINANCES Councillor Lovely introduced the following Order, which was adopted. ORDERED: That the Committee on Ordinances, Licenses and Legal Affairs take up the current Dog Ordinances for further review of these ordinances relative to increasing fines and enforcement and the following to be invited: CITY OF SALEM 337 FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL Animal Control Officer— Don Famico, Holly Stump — Mass. Federation of Dog Clubs & Responsible Dog Owners, Nina Capozzi —American Dog Owners Association #124 — MAINTENANCE AND/OR REPAIR OF SEAWALLS Councillor Corchado introduced the following Order, which was adopted. ORDERED: That the Committee on Public Health, Safety and Environment meet with the City Engineer, Planning Department, and the Mayor's office to discuss the condition of the City's seawalls and the plan of action to have a maintenance and/or repair schedule for same as well as acquire any and all necessary funding/grants to offset the costs. #125 — DISCUSS ELIMINATING SEC. 7-14 FROM THE CITY OF SALEM ZONING ORDINANCES Councillor Sargent and O'Leary introduced the following Order, which was adopted. ORDERED: That the Committee on Ordinances, Licenses and Legal Affairs meet to discuss the City of Salem Zoning Ordinances, Article VII, Supplementary Regulations, Section 7- 14, Cluster Residential Development and consider whether or not Section 7-14 should be eliminated in it's entirety from the Salem Zoning Ordinances. And also that should the Committee on Ordinances, Licenses and Legal Affairs and the City Council decide against eliminating Section 7-14, that they review Section 7-14A, and decide whether or not to eliminate any one or all four of the following: R-1 — One Family Residential District R-C — Residential Conservation District R-2 — Two Family Residential District R-3 — Three Family Residential District #126 — (#97 -#107) - GRANTING LICENSES Councillor Lovely offered the following report for the Committee on Ordinances, Licenses and Legal Affairs. It was voted to accept the report and adopt the recommendation. The Committee on Ordinances, Licenses and Legal Affairs to whom was referred the matter of granting certain licenses has considered said matter and would recommend that the following be granted. FORTUNETELLING Diana McKanas, 86D Wharf St., Salem 338 CITY OF SALEM FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL PUBLIC GUIDE Lisa Baglini, 35 Hazel St., Salem Justine Curley-Stacy, 222 Bray St., Gloucester Barbara Dempsey-West, 181 North St. #107, Salem Alicia Diozzi, 40 English St., Salem Elizabeth Hickey, 20 Highland St., Swampscott Leah A. Schmidt, 640 Revere Beach Blvd., Revere Mandy Willis, 10 Summer St. #13, Salem SECOND HAND CLOTHING Compliments Resale Boutique, 132 Boston St., Salem TAG DAY S.H.S. Baseball Boosters, April 8, 2006 TAXI OPERATOR Douglas Stephens, 9 Park St. #30, Beverly Kendall P. Phipps, 34 Federal St., Beverly David Wendell, 10 Balcomb St., Salem Carlos J. Pacheco, 5112 Crane Brook, Peabody #127 — (#839 of 2005) -USE OF STREETS FOR A ROAD RACE Councillor Lovely offered the following report for the Committee on Ordinances, Licenses and Legal Affairs. It was voted to accept the report and adopt the recommendation. The Committee on Ordinances, Licenses and Legal Affairs to whom was referred use of City Streets for the Salem State College Wellness Fair and Road Race on April 2, 2006 has considered said matter and would recommend approval. #128 — (#83) - ORDINANCE —AMENDING DOOR TO DOOR CANVASSING AND SOLICITING Councillor Lovely offered the following report for the Committee on Ordinances, Licenses and Legal Affairs. It was voted to accept the report and adopt the recommendation. The Committee on Ordinances, Licenses and Legal Affairs to whom was referred the matter of an Ordinance amending Door to Door Canvassing and Soliciting has considered said matter and would recommend second and final passage. CITY OF SALEM 339 FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL #129 - (#81A) — ORDINANCE —AMENDING MOORING AND SLIP FEES Councillor O'Leary offered the following report for the Committee on Administration and Finance. It was voted to accept the report and adopt the recommendation. The Committee on Administration and Finance to whom was referred the matter of an Ordinance amending Mooring and Slip Fees has considered said matter and would recommend first passage. #130 — (#79) — DECLARE ENDICOTT SCHOOL SURPLUS PROPERTY Councillor O'Leary offered the following report for the Committee on Administration and Finance. It was voted to accept the report and adopt the recommendation. The Committee on Administration and Finance to whom was referred the matter of declaring the Endicott School property as surplus has considered said matter and would recommend approval. The following Order, recommended by the Mayor was adopted by unanimous roll call vote of 11 yeas, 0 nays, 0 absent. ORDERED: That the City Council hereby declares the Endicott School property located at 110 Boston Street, as shown on the Assessors Map 16, Lot 0172, as surplus property. Be It Hereby further Ordered, as follows: That the provisions of Section 2-1635, regarding the disposition of city-owned land, are hereby waived in favor of compliance with M.G.L. c. 30B. #131 — (#11) — INCOME AND EXPENSES FOR HAUNTED HAPPENINGS 2005 Councillor O'Leary offered the following report for the Committee on Administration and Finance. It was voted to accept the report and adopt the recommendation. The Committee on Administration and Finance to whom was referred the matter of the expenses incurred and income received for the 2005 Haunted Happenings festivities, has considered said matter and would recommend that the matter be referred to the Committee on Ordinances, Licenses and Legal Affairs. 340 CITY OF SALEM FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL #132 — (#77) —ACCEPT M.G.L. CHAP. 32B, SEC. 18, MEDICARE EXTENSION PLANS FOR RETIREES Councillor O'Leary offered the following report for the Committee on Administration and Finance. It was voted to accept the report and adopt the recommendation. The Committee on Administration and Finance to whom was referred the matter of Acceptance of Mass. General Law Chapter 32B, Section 18, Medicare extension plans mandatory transfer of retirees, has considered said matter and would recommend approval. Adopted by unanimous roll call vote of 10 yeas, 0 nays, 1 absent. Councillor Furey was recorded as absent. He recused himself from the vote. #133 — LIST OF ORDERS DISCHARGED FROM COMMITTEE Councillor Corchado offered the following report for the Committee on Public Health, Safety and Environment. It was voted to accept the report and adopt the recommendation. The Committee on Administration and Finance to whom was referred the following matters has considered said matters and would recommend they be discharged from Committee with no recommendation: #751 of 2004 — Pedestrian lights at the intersection of Bridge, Northey and Winter Streets #112 of 2005 — Intersection of Derby St., Congress St. and Hawthorne Boulevard #115 of 2005 — Meet with Duke Energy & Excelerate Energy regarding pipeline #498 of 2005 — North Shore YMCA on Leggs Hill regarding petition #687 of 2005 — Installation of traffic lights at intersection of Derby St., Congress St., & Hawthorne Boulevard #134 - LIST OF ORDERS DISCHARGED FROM COMMITTEE Councillor Sargent offered the following report for the Committee on Government Services. It was voted to accept the report and adopt the recommendation. CITY OF SALEM 341 FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL The Committee on Government Services to whom was referred the following matters has considered said matters and would recommend they be discharged from Committee with no recommendation: #175 of 2004 — Contract for SATV #177 of 2004 — Progress of Community Block Grant Program #320 of 2004 — Plaque for Representative Ruane at the Willows & accounting of grant money #375 of 2004 — No Right on red sign on Cherry Hill Avenue #376 of 2004 — Stop Sign on Margin Street #423 of 2004 — Meet with outreach person for Crombie Street Shelter #534 of 2004 —Address concerns regarding St. Mary's Church #605 of 2004 — Letter from Margaret Crowdis re: Salem Bus Service #204 of 2005 — City's plan for pothole, sidewalk and street repair for 2005 #521 of 2005 — Meet with Neighborhood Groups to discuss issues #135 - LIST OF ORDERS DISCHARGED FROM COMMITTEE Councillor O'Leary offered the following report for the Committee of the Whole. It was voted to accept the report and adopt the recommendation. The Committee of the Whole to whom was referred the following matters has considered said matters and would recommend they be discharged from Committee with no recommendation: #374 of 2004 — Letter regarding USGen New England owner of Salem Harbor Station #425 of 2004 — Plans of the Salem Mission to purchase St. Mary's Church #454 of 2004 — Meet re: climate at the Salem High School and include other schools #589 of 2004 — Process and procedure for Zoning in Salem #639 of 2004 — Board of Appeals granting variances #63 of 2004 — Develop a plan for PG&E should it close #422 of 2004- Dismissal of lawsuit entitled Nondas Lagonakis #673 of 2004 — Meet with Assessor & Finance Director re: changes to senior tax exemption #110 of 2005 — Meet with Rep. Ruane to discuss funding for Salem Projects 342 CITY OF SALEM FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL #203 of 2005 — Status and future plans for the North Shore Medical Center #272 of 2005 — Discuss City Finances for FY05 & FY06 #274 of 2005 — Long range plans for staffing levels #313 of 2005 — Mass. Highway cease & desist work on Marlborough Rd. #362 of 2005 — SBAB Audit #372 of 2005 — Letter from Mass. Highway #399 of 2005 — Discuss the Creative Economy Study Group document #520 of 2005 — Meet with Supt. Of Schools & School Bldg. Commission regarding High School Renovation update #668 of 2005 — Rainbow Terrace issues #674 of 2005 — Hold a Public Hearing regarding Marlborough Road #682 of 2005 — Beverly/Salem Water Board regarding Vehicle purchase #683 of 2005 — Meet with Fire Chief& DPW Director regarding Fire Hydrants #712 of 2005 - Reduction of FY06 Budget #713 of 2005 —Appropriation for Fire fighters salary #735 of 2005 — Declare parking lot at 1 Salem Green as surplus property #736 of 2005 — Declare Endicott School property as surplus #777 of 2005 —AFSCME to meet with Council regarding labor relations #793 of 2005 — Mayor resubmitting corrected information for Church Street lot #136 — (#10) - LIMITATIONS, RESTRICTIONS OR ILLEGALIZATION OF PITBULLS Councillor O'Leary offered the following report for the Committee of the Whole. It was voted to accept the report and adopt the recommendation. CITY OF SALEM 343 FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL The Committee of the Whole to whom was referred the matter of limitations, restrictions or illegalization of pitbulls in Salem has considered said matters and would recommend that it be reported out of Committee with a negative recommendation. Councillor Furey was recorded as opposed. #137 -#141 — LICENSE APPLICATIONS The following license applications were referred to the Committee on Ordinances, Licenses and Legal Affairs. PUBLIC GUIDE Mollie Stewart, 190 Essex St., Salem TAG DAY S.H.S. Girls Winter Track, February 25 & 26, 2006 S.H.S. Girls Soccer, September 16, 2006 S.H.S. Girls Soccer, October 14, 2006 TAXI OPERATOR Gerald Feldman, 116 Lafayette St., Salem David Doherty, 116 Lafayette St., Salem Jamie Lopez, 25 Baker St., Lynn Albert Avallon, 98 Newbury St., Danvers Hugo Vega, 13 Osgood St., Salem #142 — DRAINLAYER/CONTRACT OPERATOR The following Drainlayer/ Contract operator license application was referred to the Committee on Ordinances, Licenses and Legal Affairs J. Whyman Construction, 451 Broadway, Lynnfield #143 — 145 - CLAIMS The following Claims were referred to the Committee on Ordinances, Licenses and Legal Affai rs. Paula Fallon, 116 Boston St. #2R, Salem Anna Haggerty, 1 Capstan Way, Swampscott Charlene Peters, 2 Endicott St., Marblehead 344 CITY OF SALEM FEBRUARY 9, 2006 REGULAR MEETING OF THE CITY COUNCIL (#494) — ORDINANCE AMENDING SALARY CLASSIFICATION OF COLLECTOR / TREASURER The matter of second and final passage of an Ordinance amending the Salary and Classification of Certain Employees, Collector/ Treasurer, was then taken up. Councillor Bencal moved to refer the matter back to the Committee on Administration and Finance for further review. It was so voted. On the motion of Councillor O'Keefe the meeting adjourned at 8.22 P.M.