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HomeMy WebLinkAboutBoard of Selectmen Minutes March 4, 2010 Executive Session_201402061620227805BOARD OF SELECTMEN EXECUTIVE SESSION - Minutes of the Meeting of 4 March 2010. The meeting took place in the Conference Room, 16 Broad Street, Nantucket, MA 02554. Members of the Board present were Rick Atherton, Brian Chadwick, Michael Kopko, Allen Reinhard, and Patricia Roggeveen. Also present were Town Manager C. Elizabeth Gibson and Executive Assistant to the Town Manager Erika Mooney. Chairman Kopko called the meeting to order at 9:05 AM following a meeting in open session. Ms. Gibson said a Land Court petition has been filed and the petitioner is seeking assent from the Board to eliminate a paper road that runs through the middle of the Whelden property on Mill Hill Lane. Ms. Gibson reviewed written comments made by Town Counsel on the matter. A discussion among Board members followed. At 9:13 AM Town Counsel Paul DeRensis joined the meeting. Mr. Reinhard moved to have Town Counsel contact the property owner to request granting the Town a voluntary easement on a private way to the south of their property in return for the Board assenting to the Land Court Petition; if the property owners do not agree the Board will take no action on the petition; Ms. Roggeveen seconded. So voted, all in favor by roll call vote. Ms. Gibson suggested obtaining a cost estimate for the legal services involved. MINUTES The Board discussed comments from Town Counsel and Special Counsel Michael Leon regarding attorney- client privilege. It was agreed that executive session minutes regarding Waste Options Nantucket (WON) will not be released as requested as noted by Town Counsel per the attorney client privilege. Ms. Mooney will prepare a list of dates of executive session minutes for release regarding WON, and executive session minutes from 2005 and 2006. The Board agreed to vote to release the minutes at its April executive session meeting. REAL ESTATE The Board reviewed an offer to purchase 58A Orange Street. Mr. Atherton moved not to accept the offer and to indicate that the property is not for sale; Mr. Reinhard seconded. So voted, all in favor by roll call vote. A discussion followed on the Town-owned parcel on West Dover Street. It was agreed to discuss the matter at the Board’s 10 March 2010 meeting under the 2010 Annual Town Meeting Warrant article agenda item. At 9:36 AM Housing Specialist Susan Bennett Witte joined the meeting. Ms. Witte reviewed the Miller Lane request for proposal (RFP), noting that no respondents of the RFP qualified, adding that the Procurement Officer informed her that a new RFP needs to be issued. A discussion followed regarding language changes to the RFP, as well as the Housing Nantucket board membership and size. Chairman Kopko suggested waiting to issue the revised RFP for one month to allow Housing Nantucket to “beef up” its Board. The Board agreed. At 9:53 AM Ms. Witte left the meeting. Ms. Gibson reviewed the legal cost obligations with the Reis land “swap”, noting it was her understanding that the Nantucket Land Bank was covering all the legal costs involved, but she has since learned that is not the case; she said all parties need to be clear on who is paying for what. Chairman Kopko noted he was surprised by an email from the Land Bank assigning costs to the Town. Mr. Atherton questioned whether 1 2 Mr. Reinhard should be present for the discussion as he is a member of the Land Bank Commission. Mr. Reinhard said there is no conflict and he is willing to argue that the Land Bank should pick up some of the expenses, noting he is looking more toward the end result. A discussion followed among Board members regarding Mr. Reinhard’s involvement as he sits on both the Board of Selectmen and the Land Bank Commission and who should be discussing these matters on behalf of the Town and the Land Bank. Chairman Kopko said the Board consensus is that the Land Bank is responsible for the majority of the legal expenses except isolated items specific to the Town. Ms. Gibson said she will schedule a meeting for her and Chairman Kopko to meet Land Bank executive director Eric Savetsky and Land Bank vice chair Leslie Johnson to discuss ownership of legal costs. A discussion followed regarding the Nantucket Hunting Association. Mr. DeRensis said the Town needs to have the Hunting Association execute an amendment to the lease as soon as possible in order to move forward with the Reis deal. Mr. Reinhard and Mr. Chadwick agreed to meet with the Hunting Association to convey the matter to them. At 10:20 AM Special Counsel Michael Leon, Solid Waste consultant George Aronson, and Department of Public Works Director Jeff Willet joined the meeting. Ms. Gibson explained that WON verbally offered to sell its landfill assets to the Town for $12 million, and the Board had Mr. Leon and Mr. Aronson prepare an analysis on the offer which outlined that the offer is more like a $33.2 million buyout. Mr. Leon and Mr. Aronson reviewed a meeting they had with WON yesterday in Providence and said they suggested to WON owner Charlie Gifford that he should try to reduce his debt service. Ms. Roggeveen said she feels a buyout of the landfill is not on the Town’s priority list and the Town is not in the position to run a landfill. Mr. Aronson said that there are many risks and a lot of debt with running the landfill. He did suggest that it could be possible for the Town to “reverse” amendment # 2 and have the Town buyout a portion of the landfill, for example the mixed solid waste (MSW) and materials recycling facility (MRF). Mr. Aronson said that right now WON can pay its debt service and not much else; that there is no money going to its investors, adding there is a question of whether WON will layoff employees to get some money to its investors. Chairman Kopko suggested that the Town negotiate with Mr. Gifford on possibly taking over the MSW and MRF as he feels these are essential Town services. A discussion followed regarding construction and demolition (C&D) enforcement and flow control. Mr. Aronson noted that the MRF is loosing approximately $200,000 per year. Mr. Leon noted that Mr. Gifford has no personal or corporate guarantees on WON’s debt and he would walk away from it, which provides an opportunity with the lender. He added that under the terms of WON’s deal the bank can step in if WON walks out or it can hire someone to run the landfill, noting the Town could get a “bargain” deal with the bank. A discussion followed. Mr. Aronson and Mr. Leon agreed that if the Town could take over WON’s debt and reduce the interest to a municipal rate, then it might not be a bad deal for the Town. Ms. Gibson said she can convey to Mr. Gifford that the Town is not in the position right now to take on additional debt and pay the price being “offered” but it doesn’t want to shut the door, adding that the Town is open to other potential restructuring options and other offers. The meeting was unanimously adjourned by roll call vote at 11:22 AM. Approved the 2nd day of December, 2010. Partially released the 17th day of August, 2011.