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MINUTES - Executive - 7/16/2015 CITY OF SALEM JULY 16, 2015 EXECUTIVE SESSION A Regular meeting of the City Council was held in the Council Chamber on Thursday, July 16, 2015 at 7:00 P.M. for the purpose of transacting any and all business, at which time the City Council, by roll call vote, went into Executive Session with Mayor Kimberley Driscoll and Solicitor Elizabeth Rennard to discuss the operation and sale of the Salem Transfer Station to Northside Carting. The purpose of this discussion will be to review litigation. Notice of this meeting was posted on July 9, 2015 at 5:13 P.M. Councillor Turiel was recorded as absent. Council President Sargent presided. Also present was Dominick Pangallo, the Mayor’s Chief of Staff. President Sargent turned the Executive Session over to Mayor Driscoll and Attorney Rennard to address the Council regarding this matter. Councillor Furey asked for any who received contributions from Northside should not take part. Councillor Eppley stated or from Mark George or George Family should disclose. Mayor stated this is an update of action. The Solicitor distributed disclosure forms Councillor O’Keefe stated he received a poinsettia for Christmas. Councillor Sargent said that is not a conflict of interest. Councillor Gerard stated she received $25.00 or $50.00. Mayor said we may have pending action down the road over the course of the last few weeks we have been approached by Northside’s new lawyer. The expect deed to transfer property to them. They said there is no need for Council approval. We told them it does need Council approval. They believe they should be the ones to own the property and re forging ahead. There is no basis for it. We will be getting sued. I want the assessment of the Council. They buy the land for $1.00 and they clean the land and pay city a TIF. Mayor asks if we should move on this and do you support it? The operation has been stockpiled with debris. I want to get a sense of where the Council is on this. Purchase the property or continue lease? Councillor Legault stated they will pack up and leave Mayor responded they sense trouble. Solicitor Rennard said the way they are operating they can’t continue. Their lawyer called and will work with us. Councillor Sargent said we will need to change Ordinance. The Solicitor stated they have a Board of Health permit. Councillor Sargent stated our ordinance does not allow municipal waste it’s for commercial and demolition. Call their bluff and do eviction proceedings. Councillor Eppley said there are 2 issues – Lease – proposal for transfer station. It’s cleaner to get rid of doubt up or down on purchase. Mayor said our legal team wants a vote in Executive Session. We may have to have a public vote. Councillor Eppley speaking for himself - I want to vote it down have no confidence. Mayor – at next meeting may have to vote Councillor O’Keefe asked where does this leave us? Mayor responded – Court Case. Solicitor stated she notified them we were meeting with Council Mayor said we need to address it – we have to clean it up. Councillor McCarthy – Transfer station is worse. You wait in line. We don’t have to rush is their response to him. They have a 40ft high pile they just push it back. What can we do to make them clean it? It will cost us to clean it if they walk. It’s a mess. I believe they are trying to anger the contractors so they will call us. Mayor said the plan was to cap it. Councillor Gerard – Hate this company - the question is if they think they can mess the site and leave. What is the option – we’re stuck. Mayor – there are options. John Tomasz ran transfer stations. We can bring someone else in to run it. The building Inspector sited them. Their getting pressure to clean up. Councillor Gerard – to undue this can be easy and painless? If it goes to trial can we lose. The Solicitor stated anything is possible. Their attorney hasn’t researched this enough. We are confident. Mayor said the disposition of city owned land is not perfect. Their lawyer said after investing a million dollars we don’t need to go to city Council. That’s not correct. Councillor Famico – Supports of second divorce from Northside. Councillor Siegel asked who is their attorney? Solicitor responded Aimee Burbold. She is from Manchester by the Sea. Councillor Siegel – Mr. Goodman would work on behalf of the city. They are still tied to 2001 contract. They are in major violation see 316. Hold them to contract. Also I know construction people drop off boats. They are taking anything. Councillor O’Keefe asked has the Fire Chief been there? If mulch catches fire it will take months to put out. Mayor responded that the Building Inspector brought the Fire Chief Councillor O’Keefe stated this is a bad situation. Councillor Milo agrees with colleagues. She doesn’t usually get calls but recently have received complaints. Councillor Furey said we have an eye sore. Cap it. Mayor – They want us to sell them the property then they will cap it. Do we trust them to do this? Do we want to accept their proposal? We are anticipating litigation. I feel good about our position. They did not have a purchase and sale agreement. Councillor Eppley – regarding Councillor Gerard’s comments – I am all for suing on this. We have a solid position. Mayor stated she would like a vote in Executive Session. Councillor Legault stated we should call their bluff. Mayor – can vote in executive Session. Councillor Legault Mad a motion for a Roll Call Vote to end relationship. Councillor Sargent 2nded motion for RCV. One to evict and one to sell land Councillor Sargent we can clean it and manage it. Mayor don’t want this discussion Councillor Milo – conflict of interest Councillor Sargent stated to file form with City Clerk. Motion – shall we proceed forward with the disposition of land as they propose. Sell the land. By RCV 1 yea, 9 nays, 1 absent. Councillor Furey voting in the affirmative, Councillor Siegel, O’Keefe, Milo, McCarthy, Legault, Gerard, Famico, Eppley and Sargent voting in the negative and Councillor Turiel absent. Councillor Legault made motion to remove Northside Carting from Transfer Station as soon as possible by RCV. Seconded by Councillor Eppley. RCV 9 yeas, 1 nay, 1 absent. Councillor Siegel, O’Keefe, Milo, McCarthy, Legault, Gerard, Famico, Eppley and Sargent voted in the affirmative, Councillor Furey voted in the negative and Councillor Turiel was absent. Mayor no discussion on the floor. Need 24 hours to notify Northside. Councillor Legault moved that the Executive Session be adjourned and the regular meeting continue by a roll call vote of 10 yeas, 0 nays, 1 absent. Councillor Siegel, O’Keefe, Milo, McCarthy, Legault, Gerard, Furey, Famico, Eppley and Sargent were recorded as voting in the affirmative. Councillor Turiel was recorded as absent. ATTEST: CHERYL A. LAPOINTE CITY CLERK