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Meeting Opening and Technical Setup (Link: 00:01:00 – 00:09:00)
A speaker made a brief comment at the beginning of the recording. Later, another speaker called the December 10th meeting to order and announced that the meeting was being recorded. The speaker indicated they were ready to open public comment but then paused.
Technical difficulties occurred with the remote participation setup. Committee members noted that Thatcher Keezer was attempting to speak remotely but could not be heard, despite the system indicating he was talking. After some troubleshooting, the audio system appeared to be working properly and the meeting continued with brief acknowledgments between speakers.
Municipal Light Department Grid Fortification Presentation (Link: 00:09:00 – 00:21:00)
After some initial technical setup with slide sharing, Michael Hall, Energy Programs Manager for the Marblehead Municipal Light Department, presented a grid fortification project to the committee. Hall provided background on MMLD, explaining that it was established in 1894 and began transmitting power to Marblehead in 1895. The publicly owned utility currently serves over 10,000 customers, maintains 4,000 poles, 90 miles of distribution lines, and four substations.
Hall explained that MMLD is a transmission dependent utility that relies on power coming into Marblehead from a National Grid substation across the Salem line via two sub-transmission lines connecting to the Village 13 substation. The utility has peak power demand exceeding 30 megawatts per year during peak events. Hall showed drone footage from November revealing bent poles with tensioners strained to maximum capacity along the Salem line and the public utility right of way, making them susceptible to extreme weather events and wildlife.
The fortification project consists of three phases, with phases one and two being most critical. Phase one involves converting wooden poles along the Salem line to galvanized steel to maintain the two sub-transmission lines. Phase two would underground 1,800 feet of sub-transmission lines along the utility right of way. Phase three would eventually underground the remaining 3,900 feet of lines connecting to the Village 13 substation.
Hall outlined the project budget and timeline. Phase one is estimated at $318,593 with MMLD contributing one-third and grant funding covering two-thirds. Phase two is estimated at $1.6 million with the same funding split. Phase one would begin this winter with 50% completion by August 2026 and final completion by October 2026. Phase two would be 50% complete between November 2026 and April 2027, with final completion by June 2027.
During the question and answer period, a committee member clarified that MMLD owns seven poles above ground leaving the Canal Street substation, which would be replaced with steel rather than going underground. Fox asked about the grants, which Hall confirmed were already secured, and about potential rail trail shutdowns during phase two construction. Hall indicated the work would be done in phases to minimize public impact. A committee member asked about rate impacts, and Hall indicated none were anticipated for the one-third municipal contribution.
A committee member expressed appreciation for the underground work, particularly on the Marblehead side, and clarified that the town uses the utility right of way as an easement for recreational purposes. The speaker suggested coordination with Brendan Callahan, Director of Community Planning and Development, and Amy McHugh from DPW regarding rail trail planning and maintenance. Hall acknowledged Beacon Climate for helping obtain the grant funding covering two-thirds of the project expenses.
Town Administrator Update (Link: 00:21:00 – 00:27:00)
Thatcher Keezer provided an update on several municipal building projects. The Mary Alley replacement project is 100% complete except for a doorway to the roof that is on order and will arrive in January. All roof leaking has been addressed and additional insulation was installed to help with utility costs. The next Mary Alley project involves going out to bid for HVAC system replacement, elevator work, renovating downstairs bathrooms to make them fully ADA compliant, and building out the lower level conference room for better public meeting use with easier access, self-locking doors, and improved technology.
Keezer reported that the Community Center roof project is 100% complete, featuring a protective roof coating system and new snow guards to prevent snow from falling on people entering and exiting the building. He acknowledged Steve Cummings, the building commissioner, and Allison Jenkins, the chief procurement officer, for their work managing these projects.
The Hobbs House, which is owned by the town and primarily used by the Marblehead Mental Health Clinic, had its back deck completely replaced. The deck had fallen off and served as the secondary egress for the building, making it a priority project. Bids for replacing all windows in the building came in recently, which will provide better energy efficiency and comfort for workers.
Keezer reported that the building commissioner and fire chief have been inspecting fire alarm systems throughout municipal buildings and bringing them up to code. The fire headquarters, community center, old townhouse, and DPW facility have all been inspected and are now fully compliant, tested, and in good working order. They will continue inspecting the remaining municipal buildings.
During questions, a committee member asked about funding for the Hobbs House improvements. Keezer explained that ARPA funds were used along with concerns about pricing, but bids came in favorably. Fox clarified that windows would be funded through Finance Committee facilities funding, while the deck was funded through Keezer’s budget. Previous work on the building including boilers had been done with ARPA funds.
A committee member acknowledged Steve Cummings’ work supervising contractors and projects, noting his multiple visits to both roofs to maintain excellent standards and fulfill fiduciary duties. The committee member also noted that Keezer would be updating the capital improvement plan over time, which would provide tremendous value for spring planning.
Disabilities Commission Appointments (Link: 00:27:00 – 00:33:00)
After some brief remarks about Steve Cummings, Fox moved to address three vacancies on the Disabilities Commission with two applicants. The first applicant, Julie Machika, introduced herself as the Assistant Coordinator of Student Success at North Shore Community College, currently in her second career after pursuing a master’s in education that included disability studies and a project on universal design. She explained her first career was as a lawyer for 30 years, working as a clerk, assistant clerk, and magistrate, giving her familiarity with legal requirements though she did not specialize in disability law.
Machika shared that she is a two-time cancer survivor who was diagnosed with PTSD and anxiety as a result, giving her documented disability experience. She expressed interest in focusing on recognizing mental health as a disability more widely. As an almost lifetime citizen of Marblehead, she wants to ensure everyone in town can benefit from all services and places the town offers, acknowledging the challenges posed by the historic but old nature of the town. She noted reviewing old commission agendas and seeing work on modernizing and addressing pitfalls that can affect people with disabilities.
A committee member noted Machika’s time in Hanover, New Hampshire, connecting it to Amy McHugh, the DPW director who is a Thayer School graduate and experienced with cold weather plowing. Committee members expressed appreciation for her stepping up to serve.
The second applicant, Amy Maloff, introduced herself as a transplant from Ohio who works in the creative space doing design and marketing, often with performers. She explained her contribution to the disability community in town was designing the sign at the harbor that tells people how to access the Hoyer lift, which she donated her time to create. Maloff shared that she has invisible disabilities and has an ongoing interest in advocacy, making it something she thinks about and wants to be part of.
Fox explained there were two seats available, one expiring in 2027 and one in 2028. He suggested appointing them in the order they were called up, with no objections from other committee members. A motion was made and seconded to appoint Julie Machika to the Disabilities Commission with a term expiring in June 2028, which passed unanimously. A second motion was made and seconded to appoint Amy Maloff to the Disabilities Commission with a term expiring in 2027, which also passed unanimously.
Fox informed both appointees they would need to be sworn in with the clerk during regular hours before their first meeting and could reach out to Kyle for assistance. The meeting then moved to the next agenda item regarding a three-year revenue versus expense forecast, with Aleesha Benjamin from the finance department and Alec Goolsby from the finance committee present, along with someone named Molly.
Three Year Revenue and Expense Forecast (Link: 00:33:00 – 01:22:00)
After some brief setup with seating arrangements, Alec Goolsby presented a three-year revenue and expense forecast to the committee. Goolsby explained this was phase two of budget planning, following the revenue forecast presented last month. He distributed printed materials showing a collapsed version of the Excel spreadsheet being displayed, with revenue items above a black line and expenses below.
Goolsby reported that fiscal year 2027 revenue of $109,057,653 was close to the previous exercise, with Aleesha Benjamin making slight adjustments to local receipts after finishing the tax rate recap. The current estimate shows about $700,000 less revenue than last year, compared to $500,000 less in the previous exercise. He presented budget-to-actual figures showing revenue came in approximately $3.3 million over budget last year, which would contribute to free cash when certified by the state.
Benjamin clarified that revenue came in more than estimated rather than being under-budgeted. A committee member asked about the revenue decline drivers. Goolsby explained that property tax levy is increasing by $2.2 million at just under 3 percent, with new growth less than half a percent. This increase is offset by a $2 million decline in free cash and about $1 million less in local receipts, primarily driven by lower earnings on investments due to reduced ARPA funds available for investment and declining interest rates.
Regarding free cash, Goolsby explained that expenses were over budget by only $2.1 million, which represents about 2 percent of the $100 million budget. The estimated movement in free cash is about $5.5 million, though this is not yet certified. Last year, free cash was certified at $9.5 million, with $1 million used for capital, $7 million to balance the budget, $1 million to stabilization, and about $500,000 remaining for contracts signed before town meeting, leaving only about $200,000 unallocated.
Benjamin noted that the state also examines grant deficits when certifying free cash, which could reduce the amount further. Fox confirmed this represents roughly $4 million less free cash than last year’s certified amount. Goolsby emphasized he prefers not to estimate free cash this early but included it for planning purposes, noting that if free cash comes in at only $5.7 million, little would be available for capital, stabilization, or other uses.
The revenue forecast extends two years out, showing a declining reliance on free cash per select board policy. Free cash usage is projected to decline by $1 million per year rather than $2 million. Property taxes are bringing in $2.2-2.3 million over the next two years, showing revenue increasing over three years but still less than 2 percent annually. Goolsby noted that last year’s projection of a $2 million deficit for fiscal year 2026 was accurate when assuming $5 million free cash usage, though they ended up using $7 million.
On the expense side, Goolsby explained he requested data on all funded positions from every department, whether filled or not, to calculate costs for fiscal years 2027-2029 based on existing contracts. Three unions have contracts through 2028, one remains open for 2027, and 2029 requires estimates. This approach shows costs if operations continue exactly as they are without efficiencies, cuts, or position eliminations. Salaries show a 6 percent increase, which Goolsby considers potentially overstated but likely not significantly so.
Benjamin explained that town departments submitted current information from the municipal software system including contractual wage changes, steps, and lanes. The schools provided similar data through Mike. Goolsby noted the large jump in salary costs, explaining that fiscal year 2025 actuals showed room between budget and actual spending, particularly in schools where many funded positions appeared to have people in seats. He acknowledged that with a $40 million salary budget, being off by $1 million is reasonable given monthly hiring and departures.
When schools underspend wages, particularly in support functions, they often pay consultants to fill gaps, which appears in miscellaneous other expenses. Benjamin added that underspending was applied to prepaid special education, with out-of-district tuitions showing $900,000 more spent than budgeted. Goolsby noted they are working with schools to better align line item buckets with actuals, acknowledging the current superintendent did not build the fiscal year 2025 budget.
Benjamin explained that cost of living adjustments are about 3 percent, but employees stepping up can see 5-7 percent increases depending on their position in the salary scale, while those at the top step only receive the 3 percent increase. Keezer added another factor affecting salary projections: while people typically move up steps increasing costs, retirees at top steps are usually replaced by people at lower steps providing savings. However, the current employment market requires hiring people at higher steps based on experience, eliminating those savings. He noted consultants are reviewing salary schedules and market comparisons.
A committee member acknowledged the data’s utility and defended paying for talent with good comparisons, but noted the perpetual budget ratchet and questioned whether the town is right-sized for service delivery. Insurance and benefits represent another major cost driver, with fiscal year 2025 showing $1.4 million over budget despite having $1.4 million in reserve. Benjamin moved some reserve to Finance Committee reserve for transparency, keeping $200,000 in the line item for mid-year enrollment changes.
Benjamin expressed concern about the insurance line item, hearing potential increases over 15 percent while Goolsby applied a 10 percent increase. Benjamin explained last year saw 20 percent increases with 12 percent in the Group Insurance Commission (GIC), and municipalities are returning to GIC. She attended conferences where insurance companies reported 23-26 percent increases in private commercial markets, with municipalities in GIC expecting double-digit increases for the next two to three years. The GIC does not announce rates until spring voting, making planning difficult. Benjamin suggested 17 percent as a conservative estimate based on conference information.
Goolsby requested detailed summaries of increase calculations from actuals to current year-to-date performance and suggested having GIC representatives confirm projections. A committee member noted similar information from the Association of Town Finance Committees annual meeting, where presentations addressed this statewide risk area with projected 10-14 percent increases. The committee discussed GIC’s traditional role in reducing volatility and requested deeper understanding of increase drivers.
Benjamin explained that GIC had multimillion-dollar deficits in consecutive years, which they cover differently than municipalities that would need reserves. The state operates without reserves, closing deficits back into general fund free cash, then adjusting rates accordingly. Regarding potential cost control levers, Benjamin noted health insurance is negotiated with the Public Employee Committee including all unions and retirees. The town has limited flexibility because it participates in GIC rather than being self-insured, making it subject to state laws and regulations rather than having private insurer control.
Keezer confirmed municipal representation exists on the GIC board but as only one of several voices. A committee member noted that being in GIC is one of the few available levers to keep costs low, and they want to remain there. Pension increases are based on schedule, representing half a million dollars, meaning a quarter of the $2 million property tax increase goes directly to pension. There is some ability to push pension payments out, but they have already pushed close to the limit.
Utilities were summarized for town and schools, with fiscal year 2025 spending slightly over budget. Fiscal year 2026 was adjusted based on actuals with 3 percent increases applied. Molly had conducted historical analysis over several years, and while no one can predict utility markets, 3 percent represents a reasonable estimate for the significant line item. Out-of-district tuition involved a detailed template encouraging town-wide behavior of identifying total expenses and funding sources rather than just applying factors to general fund amounts.
The analysis examines total tuition and transportation expenses and various funding methods including prepayments, circuit breaker, general fund, and IDEA grants. However, tighter school budget constraints would reduce prepayment ability, showing slight benefit from fiscal year 2026 to 2027 but large spikes afterward since prepayments cannot be assumed during cost-cutting periods. Goolsby noted better understanding of this item from Finance Committee perspective despite its complexity.
Trash collection represents a significant upcoming cost increase as the town reaches the end of its 10-year contract. The RFP is currently on the street for curbside collection of trash and recycling for all residents, trash disposal, and recycling processing. Currently the town pays nothing for recycling, but this will cost an estimated $300,000. The five-year contract will show large increases, with another jump around 2030 when Massachusetts landfills close. Estimates use 4 percent annual increases compared to the current 3.5 percent, with actual numbers expected in mid-January.
A committee member sought clarification on the 50 percent increase in year one, which Fox confirmed represents the jump from fiscal year 2026 to 2027 due to contract renegotiation, followed by continuous 3-4 percent growth rates. Tax levy funded warrant articles include small growth factors, including Essex Agricultural and Technical High School assessments. Debt service is calculated as in-and-out based on debt schedules, assuming no new debt issuance over three years. State assessments represent the portion that comes out of the budget, while miscellaneous other expenses include items like Finance Committee reserve with 2 percent inflationary factors applied.
Goolsby presented phase two results showing large budget gaps: approximately $7 million for fiscal year 2027, growing to $11 million and accumulating to $15 million by 2029, assuming continued declining free cash usage. Despite his long Finance Committee experience, he feels confident in the analysis and noted consistency with Benjamin’s assessments. Benjamin observed that using free cash annually is frowned upon by the state because it is one-time funding, and its declining nature creates the current position many municipalities face when requesting overrides for continuous funding.
Goolsby emphasized that this exercise should not immediately suggest override requests until the next step determines how to address gaps before asking for overrides. A committee member praised the three-year projection quality and stressed the importance of controlling escalation, particularly with benefits driving much of the increase. The member noted the difficulty of stabilizing growth and the need for strong rationales for increases, warning that people might see endless overrides without rigorous structural enterprise examination.
Benjamin confirmed plans to work closely with unions on cost control measures. A committee member asked about free cash assumptions in deficit forecasts, with Goolsby confirming usage of $5 million, $4 million, and $3 million over three years. Even applying $5 million in fiscal year 2027 free cash results in a $7 million shortfall, and preliminary estimates suggest only $5.7 million might be available for all purposes, potentially preventing even $5 million usage.
Fox noted the challenge that approximately 80 percent of expenses are salaries and benefits, all personnel-related whether for retirees or current workers, growing at minimum rates with 10-17 percent healthcare increases. Benjamin confirmed healthcare as the primary cost driver burning cities and towns currently. Benjamin outlined next steps involving meetings with all departments to make fiscally prudent decisions, noting the mandate for balanced budgets requiring significant reductions to achieve balance.
A committee member clarified that departments were asked for level funding but could not achieve it due to contractual increases they must pay. Keezer explained the process involves building a balanced budget with no override presented at town meeting, showing all ramifications, then developing override proposals to restore important items that cannot fit in the balanced budget. A committee member requested articulation of service delivery impacts when departments receive state-required budgets, wanting to see actual resident service delivery effects rather than just dollar values.
Keezer confirmed previous practice of producing department-by-department deltas showing requested amounts versus balanced budget allocations, and agreed to translate dollar impacts into service delivery effects. A committee member noted the impossibility of achieving $7 million in efficiencies given past department requests, calling the situation alarming though acknowledging it mirrors other municipalities. The member cited recent override examples: Melrose approved $13.5 million, Brookline $12 million, Acton $6.6 million, Arlington $7 million, Belmont $8.4 million, Hingham almost $8 million, and Linfield similar amounts.
The committee member attributed the situation to systemic issues with Proposition 2½ state law, which was designed as a check on tax increases rather than preventing overrides forever, suggesting the need for large cash infusions to maintain current town services. They requested information about preparing contingent budgets as voter options and timeline flexibility needed. Benjamin confirmed plans to work on contingent options, noting that 2½ percent caps cannot accommodate 17 percent increases or 9 percent growth, with schools averaging 4-5 percent growth making Proposition 2½ unsustainable.
A committee member defended Proposition 2½ as essential accountability mechanism requiring the balancing process
Budget Discussion and Financial Planning (Link: 01:22:00 – 01:38:00)
A committee member expressed concern about the projected $15 million deficit over three years, representing a significant portion of the $100 million budget, and stated this would not be acceptable to most residents. The member requested thoughts on how the committee could be helpful in navigating the situation. Benjamin responded that she would work closely with Keezer to develop different scenarios, noting they must produce a balanced budget that will show impacts. She characterized the situation as hitting a fiscal cliff due to double-digit increases and inflation, making it nearly impossible to continue without select board support for an override.
Fox asked about timing for budget refinement, with Benjamin indicating another few weeks of departmental work would be needed. Free cash certification is expected between January and early March, with Benjamin preferring January or February completion. The state audit process must cover through June, requiring completion of the full fiscal year review. Goolsby clarified he was not discussing override promotion strategies but noted questions about multi-year funding approaches, such as whether to request amounts that escalate with Proposition 2½ limits versus addressing immediate shortfalls.
Fox indicated these strategic discussions would occur once final numbers are available, allowing consideration of different options to avoid annual override requests. Grader proposed a deductive exercise working within Proposition 2½ constraints as a forcing function to reveal immutable cost drivers and determine what adjustments are possible. He noted the complexity of having two decision-makers with the school committee and select board controlling different budget components, limiting the committee’s discretion over approximately 60 percent of the budget while acknowledging benefits from technology improvements that extracted cushion from previous budgets.
Keezer explained the straightforward first layer involves calculating bottom-line revenues and total new revenue available, then splitting between town and school based on the current 50-50 agreement. While total school costs exceed 50 percent, school-related costs on the town side balance this to approximately 50-50. The more discretionary decisions involve determining what to build back in override scenarios, distinguishing between absolute necessities, desirable items, and future preparation investments.
A committee member calculated that approximately $3.6 million would represent the town’s share of the $7.2 million deficit for fiscal year 2027. The member asked about last year’s cost reduction, with Fox clarifying they used an extra $2 million in free cash instead of making cuts, an option not available this year. Discussion turned to prioritizing non-essential services first when making departmental decisions.
Keezer explained the challenge that costs include both desired community services and mandatory expenses like employee health insurance coverage. This creates situations where highly desirable popular programs cannot fit within budget constraints due to mandatory cost requirements, making the decision process more complex than simply eliminating less important items. A committee member noted that recent override experiences in other towns often target libraries, senior services, and recreational programs when cuts are necessary.
Keezer suggested establishing criteria for override scenarios to avoid having every department add desired items without restrictions. He referenced Salisbury’s early 1990s approach of limiting total overrides to one dollar per thousand on the tax rate, suggesting similar limitations should be considered for current circumstances, though acknowledging the dollar amount would need adjustment for current times. Benjamin agreed this approach makes sense, particularly when discussing level services versus enhancement options.
A committee member asked about timing for understanding the balanced budget and service impacts. Benjamin indicated this information would be available during Keezer’s State of the Town address on January 28th, showing what each department would look like under budget constraints. Keezer noted there would likely be ongoing adjustments and surprises during budget development, but they should have a 90-95 percent understanding of where numbers are landing. The committee member confirmed that all departments including schools would understand their constraints, including potential job losses and service reductions.
A committee member asked about considering alternative fee structures, such as different trash collection models, given the staff-heavy budget and essential non-negotiable funding requirements. Benjamin indicated these decisions would be made by the select board when presented with options. Goolsby outlined his perception of next steps, using schools as an example where current projections are based on budgeted positions and their costs for the following year.
Goolsby explained that between now and the State of the Town address, work with schools could examine staffing levels more closely, particularly regarding declining enrollment concerns raised by many people. He noted that the $61.2 million fiscal year 2027 figure could change before requesting an override, potentially reducing the deficit. Other estimates would be finalized in the coming months, either improving or worsening the projection.
Goolsby described this as phase two of the process, with phase three being the State of the Town and the final phase determining actual actions. He emphasized the need to examine current budget assumptions and identify potential efficiencies before finalizing override requests, noting they could not continue increasing costs without creating efficiencies. A committee member noted the school analysis would take longer than town-side work, with Goolsby acknowledging ongoing discussions about enrollment decline impacts.
Fox observed that even with significant estimation errors, reducing the deficit from $7 million to $3.5 million would still leave substantial shortfalls requiring cuts and adjustments. He noted the challenge that approximately 80 percent of expenses are salaries and benefits, with the remainder including items like pension increases and healthcare cost growth. Goolsby agreed but suggested that once balanced, the budget should be forecast in the same format to assess future year sustainability.
Benjamin highlighted that of the $7 million deficit, $2 million represents health insurance, $500,000 pension costs, and $1 million trash collection increases, totaling $3.5 million or 50 percent of the deficit in benefit-related costs. Grader noted that addressing the remaining costs would require headcount reductions, with Goolsby adding that insurance costs would decrease with salary and headcount reductions, though acknowledging the complexity of these interconnected factors.
Fox thanked the presenters for their hard work, noting that despite the challenging projections, the information is helpful and necessary for continued planning. Benjamin acknowledged the significant hours invested by her team throughout the year in developing the analysis.
Budget Discussion Continued and Service Impact Analysis (Link: 01:38:00 – 01:39:00)
Grader praised the budget presentation as outstanding work. After brief acknowledgments from Fox and other committee members, there was some informal discussion about chair arrangements as people prepared to leave. Fox then moved to continue with the next agenda item, noting they would discuss One Atlantic Avenue.
Business License Revocation Hearing Continuation (Link: 01:39:00 – 01:53:00)
Fox called for quiet and opened the continuation of a public hearing from November 13, 2024, regarding the revocation of wine and malt beverage license number 00042 for Chin Dynasty at 1 Atlantic Avenue. Mr. Lewis returned to provide an update on progress toward the previously discussed deadline. Lewis reported they did their best to meet the deadline but faced challenges with holiday availability and contractor scheduling. He noted a furnace issue that needed repair or replacement during the week.
Lewis stated his contractor believed they could complete and finalize everything before Christmas, describing the timeline as tight but achievable. He explained that floors needed installation, some appliances required placement, and everything needed to be operational for health department inspection, which was the only remaining inspection needed. Lewis confirmed that all other inspections including electric, plumbing, and fire suppression had been signed off.
A committee member questioned whether final inspections had actually been completed, noting they had asked the fire chief and building commissioner to speak to the permits. The fire chief clarified that Lewis’s contractor had met with the fire department the previous day for a walkthrough to assess project completion timing. The fire chief estimated conservatively that opening would take about a month, with the remainder of work likely completed in two weeks.
Fox noted discrepancies in the information being provided and sought clarification. A committee member expressed concern about the unusual nature of the situation, acknowledging empathy for Lewis’s position while considering the town’s best interests. The committee member noted the many exceptions and extensions already granted and questioned whether fire suppression work and inspection had actually been completed, which the fire chief confirmed had not been finished.
The building commissioner clarified the inspection process, explaining that rough sign-offs allow wall closure, but final inspections cannot occur until fixtures are installed and systems are complete. Lewis had been receiving information about rough inspections being complete, but final inspections remained pending. The building commissioner confirmed Lewis had rough sign-offs but emphasized that finals require completion of all work including plumbing fixtures, electrical connections, and gas systems.
Keezer provided additional context from the walkthrough he conducted with the fire chief, speaking directly with the contractor performing the work. He noted tremendous progress in recent months with considerable financial investment, indicating genuine effort and expenditure. Keezer assessed that while the contractor suggested four weeks, the realistic timeframe considering the holiday season would be six to eight weeks.
Grader proposed establishing a firm deadline before revocation, suggesting the need for hard incentives to ensure completion. He suggested making it clear in any motion that the license would be revoked if work was not completed by a specific date, acknowledging Lewis’s efforts and financial investment while recognizing the need for definitive action.
Fox discussed the procedural aspects of continuing the hearing versus setting a revocation deadline. He explained that they needed to close the hearing and suggested continuing to the February meeting with clear expectations. Fox noted that revoking the license would require someone to start from scratch, which would not benefit the town given the substantial progress and investment already made.
A committee member asked about state-imposed deadlines, recalling previous discussions about November 30th requirements. Keezer explained that there was an inspection deadline to obtain certificates for January 1st operations, with the current certificate valid through December 31st. He clarified that licensing requirements were separate from inspection deadlines and had different limitations on what the committee could do.
Fox explained that continuing the hearing would allow license renewal for the following year subject to the ongoing hearing, as they cannot deny renewal without six months notice. He noted that since the revocation process began two years ago, they could still revoke on February 11th, but Lewis would be part of the renewal process for multiple licenses. Fox confirmed with legal counsel that not renewing the license immediately would not accomplish anything additional.
Keezer clarified that license renewal is technically a continuation of the existing license, so the revocation hearing applies to the same license regardless of the year. A committee member asked about commercial appliance delivery status, with Lewis confirming all appliances were delivered, installed, and tested.
A committee member asked the fire chief about any challenges observed during the walkthrough that might not align with normal business opening processes. The fire chief explained that all major equipment was in place, requiring connection of hoses and lines followed by inspection and sign-off. He noted specific items including a rear door requiring handicapped accessibility with a push-button opener, bathroom fixtures ready for installation, and front building work needing paint and flooring.
The fire chief assessed that all major kitchen components were present, with some already connected and others requiring simple connections. He noted that substantial work and financial investment had been completed, with the finish line in sight. His recommendation for further extension was based on the genuine progress and substantial money expended, emphasizing the goal of helping the business succeed.
Fox summarized the committee’s position, proposing to continue the hearing until February 11th with a firm deadline requiring all sign-offs from building, fire, and health departments, along with certificate of occupancy if required. The committee voted to continue the revocation hearing for Chin Dynasty at 1 Atlantic Avenue until the February 11th meeting. Fox wished Lewis good luck and expressed hope he would return with completed work and all necessary approvals.
Senior Tax Work Off Program Guidelines (Link: 01:53:00 – 01:55:00)
Fox noted the agenda item appeared straightforward, referencing a memo from Lisa Hooper, Director of the Council on Aging, requesting income guideline adjustments. Keezer explained this was an annual increase to eligible income levels for qualifying for the tax work-off program. He noted that federal guidelines create nationwide charts showing income relative to poverty levels, and this adjustment allows program eligibility to be updated accordingly.
Fox indicated the request seemed reasonable, noting that the work-off amount available is not substantial. He made a motion to approve the request from Lisa Hooper to adopt the income guideline increase for the 2026 Senior Tax Work Off Program. The motion was seconded and passed unanimously. Fox then moved to the next agenda item regarding letters of support, asking Brendan Callahan to discuss two different letters of support being requested.
Letters of Support for Grant Applications (Link: 01:55:00 – 02:08:00)
Brendan Callahan explained two letters of support being requested. The first was for the Massachusetts Housing Partnership community assistance program to provide technical assistance for the Coffin School project. The scope would include community engagement, developing conceptual site plans for potential development scenarios, and assistance with drafting an RFP. Fox asked if the grant was subject to MBTA Communities Act compliance, which Callahan confirmed it was not. When asked about the expected amount, Callahan explained they provide services rather than monetary grants, and the assistance could start after the new year.
A committee member asked whether the Massachusetts Housing Partnership would only support housing options or consider all possibilities for the Coffin School property. Callahan clarified that despite the organization’s name, they would help determine what to do with the property regardless of the ultimate use. He explained that one program required the town to commit to an affordable housing project, which they were not ready to do, so they applied for technical assistance instead. Fox confirmed this would include community engagement similar to what was requested at the previous meeting, with the organization being better at organizing such efforts.
The second letter of support was for the Village Street Bridge project to get on the Massachusetts Department of Transportation Improvement Program. Callahan explained they did not get approved last year but were encouraged to reapply. The town completed the 25 percent design phase and was awaiting comments from MassDOT that were due that day. They were reapplying to get on the program for full construction funding.
Keezer explained the funding structure, noting that this phase is paid 80 percent by federal money and 20 percent by the state. The town had to pay for the design work as the municipal piece, but getting on the Transportation Improvement Program means federal and state funding would cover the project costs. A committee member asked about MPO grants, with Keezer clarifying that the Transportation Improvement Program is managed by the Metropolitan Planning Organization, which makes decisions on where state and federal funds go for projects.
Keezer described the process as discretionary, with the MPO board meeting in Boston to vote on projects. Getting approved does not mean immediate project start, as it operates on a long timeline. Callahan noted they would be programming for fiscal year 2031, as the process typically works five years out. Amy McHugh added that the MPO uses a points-based grading system, with five points awarded for MBTA Communities Act compliance, which would help their project ranking. She noted they were second to last in the previous round submitted about a year earlier.
Fox confirmed that while MBTA Communities Act compliance is not an automatic disqualifier, it affects scoring through the five-point system they would not receive. McHugh explained the various funding buckets through the MPO focus on multimodal transportation, complete streets projects, and shared use paths, which strengthen applications. The Village Street Bridge is an infrastructure project that is two and a half feet longer than the small bridge grant eligibility, with no way to qualify for that program due to the utility corridor underneath.
McHugh discussed potential future opportunities to combine the project with others, noting the current setup predated many current staff roles. At 25 percent design with comments due from MassDOT, they were waiting to proceed. She mentioned the total construction cost is $4.7 million and noted changes in MPO processes requiring projects to advance design phases to maintain funding eligibility. Projects must reach 25 percent design to be booked in the five-year schedule, which they have achieved, unlike the previous year.
Callahan added that MPO guidelines recently changed to remove projects that have been approved but have not progressed in design, as some would sit for years without advancement. Keezer shared his experience from Amesbury, where he ensured projects were shovel-ready to fill slots when other projects failed, as each MPO receives allocated funding that could be shifted to other regions if not spent. The strategy involves advancing their project as far as possible to be ready when funding slots become available.
Fox asked about the bridge’s current condition and five-year survival prospects. McHugh explained that MassDOT conducts regular inspections, with the most recent completed in July 2024. Critical repairs are communicated to the town engineer, and while some major repairs were completed in recent years under the previous engineer, no current critical issues have been identified. The town continues following state protocol for bridge inspection programs.
Amy McHugh noted that over $340,000 in Chapter 90 money had been committed to design work to meet Transportation Improvement Program requirements. She emphasized this was money well spent, as they would have a usable design for bridge construction whether through the TIP or other funding sources. Fox asked about future design phase costs, with Keezer clarifying that once they reach 25 percent design, that represents the town’s financial obligation, with subsequent phases not coming from municipal funds.
Callahan indicated the total cost to reach 100 percent design would be $775,000, meaning they had spent approximately half at $360,000. A committee member asked for clarification about the bridge versus culvert design, with McHugh confirming they were designing a culvert replacement rather than a traditional bridge, though it would still appear as a bridge to the public. She explained that MassDOT’s process required evaluation of both options, with the culvert selected and approved, involving removing the top and installing a new culvert lane by lane while keeping one traffic lane open.
Fox thanked the presenters for their work and updates. He then called for a motion to send a letter of support for technical assistance with Coffin School property disposition to the Massachusetts Housing Partnership community assistance program, authorizing the chair to sign on behalf of the board. The motion was made, seconded, and passed unanimously. Fox also called for a motion to send a letter of support for funding the Village Street Bridge replacement project number 612947 to the Boston Regional Metropolitan Planning Organization, authorizing the chair to sign on behalf of the board. This motion was also made and seconded.
License Renewals and New Year’s Eve Extended Hours (Link: 02:08:00 – 02:10:00)
Fox explained the next agenda item involved renewing various business licenses for 2026, including lodging, automatic amusement devices, wine and malt beverages, and movie licenses. He noted that James Zisson needed to recuse himself from voting on the Gary Number 5 license renewal, so they would handle the approvals in two stages – first approving all licenses except Gary Number 5, then separately addressing that license.
Fox called for a motion to renew all 2026 licenses for businesses in Marblehead as posted in the select board meeting packet, except for the Gary Number 5 Veteran Fireman Association Inc. The renewals were subject to several conditions: all taxes and fees to the town being paid, receipt of applicable departmental approvals, approval from the Commonwealth Department of Public Safety for Sunday entertainment, valid certificate of inspection for 2025-26, certificate of occupancy as appropriate, and compliance with Chapter 304 of the Acts of 2024. The motion was made and seconded.
Keezer conducted a roll call vote with Alexa Singer, Moses Grader, Erin Noonan, and Dan Fox all voting in favor. After some confusion about the voting order, Fox then called for a separate motion to renew the 2026 license for Gary Number 5 Veteran Fireman Association Inc., subject to the same conditions as the other licenses. This motion was also made and seconded.
Keezer conducted another roll call vote for the Gary Number 5 license renewal, with Grader, Noonan, Singer, and Fox all voting in favor. Zisson remained recused from this vote. Finally, Fox called for a motion to allow restaurants in Marblehead to remain open for business until 1:00 AM at their discretion on Thursday, January 1, 2026, for New Year’s Eve extended hours. The motion was made, seconded, and passed unanimously, with someone wishing “Happy New Year.”
Consent Agenda and Contract Approvals (Link: 02:11:00 – 02:18:00)
Fox called for a motion to accept the consent agenda items except those put on hold, including minutes from November 19, November 25, and December 2, 2025. The consent agenda also included approval for Abbott Hall Festival of Arts puzzle fundraiser on January 10, 2026, and Abbott Hall Matthew Arnold and New England Yankees Valentine’s Day dance on February 14, 2026, both subject to usual rules, regulations, fees, and receipt of required certificates of insurance. The motion was made, seconded, and passed unanimously.
The committee moved to contract approvals, starting with contract 2628 for on-call fencing repairs and installation, similar to the HVAC contract approved the previous month. Amy McHugh noted this contract would address the fence at Haley Road in the back tower area. Fox made a motion to approve contract 2628 for on-call fence installations and repairs between the town and Premier Fence LLC in the amount of $42,485, authorizing the chair to sign on behalf of the board. The motion was made, seconded, and passed unanimously.
The next contract involved continuation of fire station work on Franklin Street, funded through Article 11 from the 2022 town meeting. Fox called for a motion to approve contract 2630 to replace siding on the right side of the fire station between the town and Unicorn Anchor in the amount of $35,300, authorizing the chair to sign the contract on behalf of the board. The motion was made, seconded, and passed unanimously.
Fox presented a towing contract, comparing it to ambulance services as a zero-bid arrangement to have towing services on call, specifically for snow emergencies. He called for a motion to approve contract 2636 for towing services between the town and Tedesco Services LLC, authorizing the chair to sign the contract on behalf of the board. The motion was made, seconded, and passed unanimously.
The final contract involved phase one stormwater utility fees, funded from Article 10 of the 2025 town meeting. McHugh explained that last year they voted to begin examining a stormwater utility, and this contract would have a consultant develop a rate structure, provide public education about impacts on Marblehead, and create a bylaw for incorporation. She noted the consultant recommended extensive public education before implementation, suggesting the town meeting presentation would likely be educational rather than seeking immediate approval.
McHugh emphasized the increasing importance of Marblehead’s stormwater system due to climate change and sea level rise, noting flooding issues on major streets and the need for outfall repairs. She estimated approximately $10 million worth of work in the capital improvement plan and noted the historical pattern of small annual maintenance amounts followed by override requests every three to four years for major problems. The stormwater utility fee would aim to collect funding more consistently to address these needs.
A committee member asked about fee assessment methods, with McHugh explaining the consultant would examine various options including unit numbers, flat fees, or impervious surface area calculations. She noted the consultant had extensive experience with 36 existing municipal stormwater utilities, with more communities developing them. Keezer added that this was a relatively new process driven by MS4 requirements pushing stormwater management.
Regarding funding levels, McHugh estimated the annual need at approximately $800,000 to $1 million based on her capital planning, noting current funding levels of $400,000 to $600,000 were insufficient. She explained that Marblehead’s stormwater system operates entirely on gravity without pump stations or mechanical components, making it less expensive than sewer or water systems and not requiring significant additional staffing or equipment. The goal was to enable completion of necessary projects and proper system maintenance rather than developing a large new department.
Coffin School Surplus Declaration (Link: 02:18:00 – 02:19:00)
Fox called for a motion to approve Contract 2639 for phase one of the stormwater utility fee between the town and Woodward and Curran in the amount of $135,000, authorizing the chair to sign on behalf of the board. The motion was made and passed unanimously.
Fox moved to the next agenda item regarding surplus declaration for Coffin School contents and vehicles. He explained this involved surplusing all contents as well as three vehicles located in the parking lot. Fox acknowledged that Albert had been requesting this action for some time and they were responding to his requests, with a committee member noting this could be called “the Jordan Amendment.”
Fox explained that prior to repurposing or selling the building, they needed to surplus all contents to clear the building. The surplus contents would be offered for sale via online auction from January 26 through govdeals.com by the Procurement office. After asking for questions and receiving none, Fox called for a motion to declare the contents of Coffin School as surplus and no longer needed for municipal purposes so they could be disposed of in accordance with the town’s policy on surplus equipment. The motion was made and seconded.
Administrative Announcements and Adjournment (Link: 02:19:00 – 02:25:00)
Fox called for a vote on the Coffin School surplus declaration, which passed unanimously. He then announced the annual tree burning and pickup schedule, reading information from Amy McHugh. The annual tree burning will take place at Riverhead Beach on January 6th at 6:00 PM, with residents invited to attend this community event. Christmas trees will be picked up curbside from December 26th through January 6th and placed at Riverhead Beach for the community burning.
Tree pickup will continue after January 6th until January 16th. After January 16th, residents must bring trees to the town’s transfer station for proper disposal. All trees left curbside for pickup from December 26th until January 16th must have all lights, ornaments, and stands removed and cannot be in plastic bags. Trees not meeting these requirements will not be picked up. Holiday wreaths, roping, and garland will not be collected – only trees.
Fox addressed setting a deadline for council applications, initially suggesting the end of January with interviews on February 1st or February 11th. Noonan noted there are many open positions available and suggested they could regularly onboard applicants at their next meeting. Fox corrected himself after initially skipping to February, confirming the January 9th deadline with appointments at their January 14th meeting.
Noonan made an announcement recognizing Sean Casey from the charter committee, who passed away the previous week. She described him as “the Thomas Jefferson of the charter committee” who thoroughly researched issues and was a valuable contributor. Noonan shared that she had become friendly with Casey and they enjoyed discussing town matters, including Seamus Horahan’s columns. She noted that Casey’s last communication was an emoji response to a text about Horahan’s column, sent shortly before his passing.
Noonan shared a personal story about her accident that occurred in front of Casey’s house six months earlier while putting up an election sign. She had called Casey from the ambulance, and he sounded groggy, which she later realized was due to his medical treatment. She emphasized Casey’s positive influence on many people, particularly as a park instructor with Linda Rice Collins, and his impact on younger generations. Noonan noted that Linda Rice Collins had praised Casey when his charter committee appointment was announced, which was significant given Collins’ typically reserved nature.
Fox called for a motion for the select board to send a letter of condolences and appreciation for Casey’s contribution to the charter and the town in general. The motion was made, seconded, and passed unanimously. After asking for additional announcements and receiving none, Fox called for a motion to adjourn. The motion was made, seconded, and passed unanimously, officially ending the meeting.
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