Mary Alley Building Contract: The board approved Contract 26-58 with Campbell Construction Group LLC for $5,430,435 for HVAC, windows, fire suppression, and related work at the Mary Alley building. The project is funded through Article 33 of the 2025 Annual Town Meeting, which appropriated $5,750,000, leaving approximately $319,000 remaining in the article.

Paving Change Order: The board approved Change Order #2 to Contract 2024-053 with Richard E. Timberlea Inc. for $150,000, attributed to rising asphalt prices (asphalt being oil-based). The change order covers the Diamond Lot grant road projects combined under one contract for the current year.

Municipal fiber network (change order #2, contract 2024-031): The project extends the ARPA-funded town fiber loop to the Neck. Total cost is approximately $94,000; a Community Compact IT program grant covers $89,792, with the remaining $4,725 drawn from ARPA residual balance from the original fiber project. The existing contractor was extended under the 20%-threshold procurement rule.

LiDAR road assessment contract (contract 26-56, CYBL): A three-year contract at $31,200 total ($13,200 year 1, $9,000 each in years 2 and 3). Vehicle-mounted LiDAR will create high-resolution 3D maps of road conditions and other assets (trees, signs, hydrants, manholes) annually. The first-year scan is split between water/sewer and DPW budgets. Data feeds into prioritization tools and can be merged with GIS. The board noted this supplements the prior consultant-driven assessment with more regular, lower-cost updates.

• Articles 24–28 (General Stabilization Fund, school capital, school technology, school capital needs, school supplemental appropriation): All indefinitely postponed.
• Article 30 – Bond rescission: Brown/Gerry School project was authorized at $54,844,767; final cost was $53,225,140, leaving $1,619,627 to be rescinded. Additionally, the MSBA grant reimbursement exceeded the project cost by $641,030, saving taxpayers approximately $42,735 per year through 2040.

Bond sale closing, motions, and SEC disclosure procedures.

Article 13: The committee approved $2.4 million from water retained earnings for water construction (meter upgrades, water main improvements, tank rehabilitation) and $2.1 million from sewer retained earnings for sewer construction (pump station replacement, lining for infiltration/inflow compliance under an administrative order). Both amounts represent approximately 85% of estimated retained earnings. A third component authorizes the Water and Sewer Commission and Select Board to jointly compromise claims.

Article 14 — MWRA Local Assistance: The committee recommended adoption of the article authorizing the Water and Sewer Commission to enter into an MWRA 0% interest, 10-year local assistance loan of approximately $3,578,400 (as of May 2026). Town meeting authorization is the first step; the Select Board must still vote to proceed. The funds are targeted for the town-wide meter replacement program.

Article 9 funds annual payments on existing lease-purchase agreements, including a trash compactor lease. The Finance Committee approved the total of $524,067, funded from two sources: $236,077 transferred from the waste revolving fund and $287,990 appropriated from free cash.

The board unanimously approved change order #08 for contract 2024-077 with Rockhill Construction in the amount of $5,000 to remove a large granite curb block at Ann Street Park that was found to create a tripping hazard after installation. The chair was authorized to sign the contract.

The director provided a transfer station construction update:

• Scale house: Substantially complete with only minor punch-list items remaining.
• Site work: Approximately two weeks of work remaining, including curbing, rough grading, drainage, and capping of water/sewer lines. Paving season does not officially open until mid-April.
• Change order 1: $22,284 for rehabilitation and reconstruction of two concrete posts at the compactor building — approved unanimously.
• Change order 2: $4,500 for additional civil engineering and one additional site visit — approved unanimously.
• Ledge removal: 51.55 cubic yards of ledge were encountered (estimated was 50 cubic yards); the associated cost is approximately $48,251, currently under review with the contractor. No vote taken.

Upcoming planned features include red paint on the scale, yellow alignment lines, and traffic signal lights to manage vehicle flow. A dumpster for C&D overflow will be placed adjacent to the scale.

The maturing bonds and interest line is proposed at approximately $11,098,398. The CFO noted:

• A bond sale is planned for May to borrow for road projects and several other capital items currently on ban (bond anticipation notes).
• Debt estimates are based on a model from the town’s financial advisors and could adjust slightly after the bond sale.
• The town’s overall debt level is described as low relative to capacity; the CFO monitors when existing debt falls off before adding new borrowing.
• The contributory retirement (pension) line increases 8.6% per year on an actuarial schedule through 2036 (possible extension to 2040 under discussion at the state level).
• The OPEB (other post-employment benefits) contribution of $250,000 was removed from this budget and identified as an override item for restoration.
• Health insurance line is set at approximately $13.3M for actives based on March GIC enrollment (1,308 enrollees), with a cushion of approximately 4.5% for new enrollees. The prior-year increase was 11.6%.

The town has completed 25% design on the Village Street Bridge (officially the Harold B. Breer Bridge) and advanced it to the TIP construction-funding application stage. The estimated construction cost is $5.25 million, to be funded through a mix of federal and state gas-tax-derived buckets administered by the MPO. Construction is not expected until approximately 2030–31. The project also includes ADA-compliant trail access improvements connecting to the rail trail network.

The board approved a $24,950 contract with Gambal Construction to replace 50 windows at 66 Cliff Ave (the Hobbs Building), funded through an operating line item. Members discussed the building’s recent improvements — new boiler, back porch, and now windows — and acknowledged that the town’s deferred maintenance list is growing faster than it is being addressed.

Board members noted that the Hobbs Improvement Fund does not carry a dedicated endowment; costs come from operating funds or the annual buildings article. A town official noted that ARPA funding covered earlier improvements, and a capital request for siding work is planned for the next year.

Members called for a more systematic facility maintenance plan, noting that the town administrator and a buildings manager are working to centralize and professionalize the process. Discussion touched on whether to increase the annual buildings article to better reflect ongoing maintenance needs.

A school official presented results of the competitive bid process for the Marblehead High School roof and HVAC project at 2 Humphrey Street. Key points included:

• All general contractors and subcontractors were pre-qualified before bidding.
• Filed sub bids were obtained for roofing, HVAC, plumbing, electrical, and at least one additional trade.
• Homer Contracting submitted the lowest responsive and responsible bid.
• The construction bid came in approximately $2.1 million under the construction estimate, at $8,970,000.
• Total project costs (including OPM, designer, and related costs) are expected to come in around $12 million against an approved budget of $14 million.

Timeline highlights:

• No construction to begin before graduation; mobilization may begin after graduation with no heavy work before the last day of school.
• Heavy lifting and crane work expected to be completed before students return in the fall.
• Construction phase expected to wrap up in September or early October.
• Students will return to school while finish work continues, but heavy equipment will be cleared.

A community subcommittee chaired by a school committee member, with five community members having expertise in contracts, construction, roofing, and HVAC, reviewed all contracts and will continue to advise the OPM and designer through construction.

The contract was drafted in conjunction with Town Counsel Lisa Mead’s office, the OPM (Left Field), and the designer (Raymond Design Associates). The school committee had already approved it the prior week.

The board voted unanimously to approve the contract and authorize the chair to sign.

Director of Finance/Operations Mike presented the district’s FY27 capital request list to the committee for approval before submission to the town. He noted the list reflects needs even if not all items can be funded given the town’s financial situation.

Tier 1 (Priority 1) — ~$935,000 total:

• Bus camera system upgrade (hard drives failing)
• Glover playground safety (jagged rock removal from original construction)
• Fieldhouse painting (~$300K), padding (~$28K), and flooring (~$200K)
• Veterans Middle School clock/bell/PA system replacement
• Village School Hopkins Field fence repair

Tier 2 (Priority 2) — ~$629,000 total:

• Brown School playground shade structure
• Veterans Middle School expansion joint/flooring repairs
• Veterans gymnasium floor refinishing (large and small gym)
• Veterans and Village gymnasium LED lighting upgrades
• Veterans stairway extension toward Pleasant Street (~$75K; ADA implications under review)
• Performing Arts Center wall sconces and carpet replacement

Tier 3 (Priority 3) — ~$93,000 total:

• Seaside Park drainage (matching funds with Rec & Park)
• Snow removal equipment
• Butch Field structure/restroom refresh
• Wireless access point licensing replacement
• Rolling stock: two aging school buses (2013, 2015 models)

The superintendent flagged bus cameras, the Glover rocks, Veterans bell/clock, and technology as safety-related priorities. The committee was advised that the town may fund only one item; Mike indicated he would seek further guidance from the finance director. Motion to approve the priority list passed 4-0.

The MHS Roof/HVAC Subcommittee presented six general contractor bids. The low bidder, Homer Contracting Inc. of Arlington, MA, came in at $8,970,000, against a GC budget of $11,090,000 — approximately $2,120,000 (about 19%) under budget.

All GC bids used the same pre-qualified subcontractors: Cape Way Roofing (roofing), Robert Irving (plumbing), A. Monte (HVAC), and Systems (electrical), with those filed sub-bids fixed across all GC bids.

The subcommittee voted unanimously not to include the liquid-applied roofing alternative. Community roofing expert Mark Leadman and OPM Ralph Wallace both explained that liquid-applied roofing is cost-effective only when a roof is in generally good condition nearing end of useful life — the MHS roof has extensive existing damage that made the application more complicated. The roofing sub-bids for the alternate varied widely:

Ralph Wallace noted that even Cape Way’s base bid plus Gibson’s credit for liquid-applied would still have been approximately $3.3M.

About 70% of the contract value relates to HVAC equipment; roughly 30% is for the roofing. The committee discussed the disposition of the ~$2.1M savings relative to the debt exclusion authorization and agreed to follow up with town finance staff. The subcommittee will remain active through construction, with community experts Mark Leadman (roofing) and Brian Fin (HVAC) offering ongoing oversight. Motion to award passed 4-0.

The board approved the following contracts and change orders:

The Elm Street Park work uses granite recovered from an unknown cistern discovered on site to build stairs. The Rail Trail WYE junction engineering is required by federal regulations to have an independent cost review before federal earmark funds are spent.

The board approved a $1 million interest-free loan through the MWRA’s community loan program, authorized under Article 17 of the 2023 Annual Town Meeting (which authorized $1,022,400 for water purification system construction and reconstruction). The loan is repaid over 10 years at 0% interest and is already reflected in water and sewer rates. A Water and Sewer Commission representative explained the program allows major projects like Humphrey Street and ESCO Street work to proceed without multi-year construction timelines.

The board approved a memorandum of agreement between the town, the US Army Corps of Engineers, and the Massachusetts State Historic Preservation Office. The agreement was required after the Historical Commission identified potentially historic buildings at the Parker Boatyard area (part of the Bullard/Boatyard Resiliency Project). Under the MOA, the town must survey those buildings, enter them in a registry, and install interpretive signage after demolition. This was the final condition needed to obtain the Chapter 91 permit for the project.

Town Administrator and Building Commissioner Steve Cummings presented a revised request for Hobbs House repairs. The original capital request had been for both a back-porch replacement (a safety and egress issue) and window replacement. After review, funds within the building department budget were identified to cover the porch work.

The remaining request is a $36,000 reserve fund transfer under MGL Chapter 40, Section 6, to replace all 72 windows in the building with standard vinyl windows. Staff noted the building is not historic and no decorative features are required. Board members raised the possibility of utility rebates through the gas company or other programs, which staff agreed to investigate.

Partners Tony Roselli and Paul Garo of Rose and Clarke presented Marblehead’s FY2024 audit findings.

Financial highlights:

• Reserve balance (free cash + stabilization + assigned fund balance) of approximately $19 million, representing roughly 20% of expenses — above the 15% S&P threshold for AAA rating.
• Town has maintained reserves consistently between $18–21 million over the past 10 years.
• Investment income reached approximately $3.2 million in FY2024, double the prior year, driven by locking funds in CDs at approximately 5%.
• Pension unfunded liability: approximately $54 million (~70% funded).
• OPEB unfunded liability: approximately $151 million (~3–4% funded); auditors recommended additional funding when resources allow.

Findings / material weaknesses:

1. Cash and bank reconciliation — material weakness; contributed to delayed financial statements and delayed free cash certification. Caused in part by staff turnover and antiquated multi-platform processes (QuickBooks, Excel, and accounting software used in parallel). Transition to MuniSoft (Munis) expected to resolve.
2. Receivable reconciliation — material weakness; two prior-year entries caused a materially incorrect beginning balance; approximately $160,000 in additional variances identified.
3. Federal grant vendor debarment checks (single audit) — material weakness; vendors paid over $25,000 from ARPA coronavirus recovery funds were not checked against the SAM.gov debarment list. A new Chief Procurement Officer is in place to address this.
4. ARPA obligation reporting — significant deficiency; town was reporting board-approved projects as obligated, but the federal definition requires an actual expenditure, order, or signed contract.

Management noted that a new CFO, Chief Procurement Officer, and Grant Coordinator have been hired, and that the Munis system consolidation is underway. Auditors recommended annual presentations to the board going forward.

Two contract actions, voted together.

Amendment

Contract 2024-041 (Marblehead Rail Trail Smith Street to Pleasant Street) with Raffaele Construction Corp of Swampscott extended to September 30, 2025. No change to the total contract amount.

Award

Professional Engineering Services contract awarded to Woodard & Curran, Inc. of 40 Shattuck Road, Andover, MA 01810, in an amount not to exceed $195,000.00.

Both authorized by the Chair on behalf of the Board.

Michael Ling and Janet Schaffner (School Committee) presented contract amendments for the Marblehead High School mechanical rooftop replacement project. The board and school committee are both required to approve the contracts; the school committee approved them the prior week.

Contract amendments approved:

The amendments cover remaining design work, pre-qualification of bidders, bid documents, contractor procurement, construction oversight, and closeout.

The school committee authorized staff to evaluate two roof systems:

1. Traditional recover – new rubber membrane over existing roof
2. Liquid/fluid applied membrane – a newer technology

Estimated construction cost savings from the liquid-applied option: approximately $1.6 million (described as conservative; actual savings could be higher). The cost to produce bid documents for both options is approximately $200,000–$220,000 above a single-option approach. A decision on whether to bid both or only the traditional recover must be made by end of July 2025; bidding is targeted for the street in early October.

The school committee’s facilities subcommittee will evaluate pros and cons, including durability, MSBA precedent, and input from a subject matter expert who is a roof and building envelope specialist familiar with MSBA criteria. Funding for the amendments comes within the existing debt exclusion authorizations plus contingency, with no budget overrun anticipated.

The town’s finance director and treasurer presented a Massachusetts Water Resources Authority (MWRA) zero-interest 10-year loan for $198,750, previously authorized at a 2021 town meeting. Annual principal payments of $19,875 are due May 15 each year from 2026 through 2035. The funds will be used for vacuum excavation inspection of water service lines and replacement of up to 10 lines as needed. The board was also informed that a 25% grant is available for replacement of lead piping found during inspections. Two motions were approved: one authorizing the bond sale and loan agreement, and one authorizing board members, the town clerk, finance director, and treasurer to execute related documents.

Sustainability Coordinator Logan Casey prepared a letter of support for the town’s Port Infrastructure Development Program (PIDP) application to fund the Municipal Shipyard Resiliency Project. Key details:

• Federal ask: $11,250,000
• State match: The town previously received a state grant acceptance to cover the required match, making it eligible for the federal competition.
• Project status: Approximately 75% of design work has been funded through grants.
• Federal funding uncertainty: The program had been pulled then reinstated for the next federal fiscal year; the town is proceeding while the grants remain active.

The board unanimously authorized the chair to sign the letter of support.

Article 6 (equipment purchases totaling approximately $1M from free cash plus $29,917 from the Waste Revolving Fund) passed 349–84 after a resident raised concerns about vehicle markings and the town’s green-vehicle policy; the town administrator confirmed the two pickups in question are electric at $70,000 each. Article 7 (lease purchases, two-thirds vote required) passed 367–62; a resident asked about police car color schemes. Article 8 (building improvements: Glover HVAC cafeteria $70K, Glover playground $60K, PAC reupholstering ~$107K, police station flooring $15K) passed 383–49.

Building Commissioner Steve Cummings presented Article 33. The total project cost is $6,230,000. A previously authorized and un-issued $480,000 borrowing for the Mary Alley roof reduces the new authorization request to $5,750,000. The sustainability coordinator is applying for a $250,088 grant to fund an elevator and ADA-compliant bathrooms.

The selected mechanical system is a variable air refrigerant (VAR) system with heat recovery. The existing elevator is out of service and the building lacks a sprinkler system. Design is planned for summer 2025; bidding and contract award in 2026; phased construction to allow staff to remain in the building.

As noted in the Article 34 tax table, the Mary Alley debt adds $62 (average) or $49 (median) annually per single-family household, but is more than offset by the high school debt roll-off.

The Capital Planning Committee voted 8–0 in favor of both this article and Article 34.

A resident (Larry Ard, 90 August Avenue) urged the town to apply for the state’s Green Communities program to offset costs; Finance Director Benjamin confirmed the town is targeting a Green Communities application by June 30, 2025.

Article 33 passed 671 to 103.

Background

Michael Ping, Assistant Superintendent for Finance and Operations, presented. The high school was built in 2001–2002 and occupied in 2003. No major roof work has been done since original construction. A $5.36 million debt exclusion for a new roof was approved at the May 2022 town meeting; the MSBA denied a funding application because the roof was under 25 years old at the time. The existing roof debt exclusion is rolling off in 2026, producing approximately $253 savings per average household annually.

In 2024, the district hired OPM Left Field and schematic designer RDA (Raymond Design Associates), both of whom also worked on the Brown Elementary School project. RDA’s comprehensive study found wet insulation under the roof membrane (confirmed by infrared scan) and determined that all HVAC units would have to be crane-lifted off the roof regardless of the roof approach. The units use a discontinued refrigerant and were assessed as unlikely to survive re-installation; if replaced later, lifting them would void the new roof warranty. Doing both phases separately would add several million dollars to the total cost.

Costs and Tax Impact

The additional HVAC authorization requested is $8.6 million, bringing the total project cost to just under $14 million.

Finance Director Alicia Benjamin presented the net tax impact:

Roof Options Under Consideration

Three options are being evaluated: (1) full tear-off and replacement; (2) recover (new membrane over existing); (3) restore (liquid-applied coating). All three come with a 20-year warranty. No final decision on method has been made; bids will be solicited as alternatives after schematic design.

Debate

Several residents with commercial real estate and construction backgrounds (Sam Altru, 422 Ocean Avenue; Bob Roberta, 36 Chestnut Street; Jim Regis, 1 Lee Street; Seamus Han) questioned whether the HVAC replacement was truly linked to the roof project, whether HVAC units needed full replacement vs. refrigerant recharge, and whether the scope was sufficiently defined to authorize $8.6 million. Ping acknowledged the decision on roof method is not yet made and that the $8.6M is a borrowing authorization — the town would not necessarily borrow the full amount.

High school students Clive Colony, Leonardo Rosado, and Dante Genevese testified about active roof leaks, ceiling tile replacements after every rainstorm, a destroyed smart board, mold, and sewage-smelling water in the auditorium. Science teacher Joe King (10 Carroll Road) described teaching around a barrel catching water and a damaged smart board.

A resident raised the question of solar panel readiness; Ping confirmed both the high school and Brown School are PV-ready and the town would work with Marblehead Light Department on timing.

Vote

Article 34 passed 804 to 283 (required two-thirds majority met).

Assistant Superintendent Mike Pip reported the district has expended $31.8M with $12.5M encumbered, leaving a current balance of approximately $2.46M—about $253,000 less than the prior month. Salary encumbrances remain on track.

A significant development: late Monday, the district learned that free-cash projections were reduced by approximately $2.5M. The town’s approach was described as: roughly $1.5M absorbed through town-side mechanisms not directly affecting the school budget, and approximately $1M to be reduced from capital asks across departments including schools. Details were still being worked out ahead of town meeting.

Capital items potentially affected include: Glover playground structures, HVAC work at Glover, PACK painting/reseating, and a special education van. The committee discussed using anticipated FY25 surplus to prepay special education tuitions and offset any capital reductions, rather than reducing actual project delivery. The committee noted it may need to formally vote to amend its original capital motion at town meeting (tentatively scheduled for a 6:45 PM pre-meeting on May 5th).

The Finance Director disclosed that free cash certification, still pending, is now expected to come in near approximately $9.5M rather than the ~$12M used in budget planning. The gap was identified collaboratively during the audit process with the town’s new audit firm and was self-reported to the Department of Revenue.

Proposed revised allocation (if certified at ~$9.5M):

Committee members expressed concern about the lateness of certification, noting free cash ideally should be certified by December or at least by fall. The Finance Director cited legacy software systems (multiple reconciliation platforms including QuickBooks, Excel, CollectPro, and AssessPro) as a contributing factor and noted that implementation of the Munis ERP system (revenue module scheduled for July 1, 2026) is expected to significantly improve the process.

A community member urged the committee to ensure the process is tightened given its responsibility to make reliable budget recommendations at town meeting. The committee plans to hold summer check-in meetings to monitor progress. The committee will vote on the revised Article 8 capital appropriation at its pre-town meeting session on April 30 at 6:00 PM.

Logan Casey (Town Sustainability Coordinator) and Dan Wall (mechanical engineer, NB5 Engineers) presented findings from a roughly three-month study of the Mary Alley building. The building, a former hospital estimated to date from the late 1940s or early 1950s, currently has failing steam heat, non-functional air conditioning units, and no sprinkler system.

Three HVAC options evaluated:

Project scope beyond HVAC:

• Full roof replacement (tar and gravel roof at end of life; solar-ready)
• Asbestos abatement (tiles, pipe insulation, crawl space)
• New sprinkler system (fire chief confirmed necessity)
• Electrical upgrade from 208V to 480V
• Fire alarm, exit signs
• ADA upgrades: elevator modernization, accessible restrooms, door hardware, drinking fountains, entrance ramp
• Ceiling replacement; new LED lighting
• Removal of existing steam system (phased; retained until new system complete)

Phasing: Four phases over an estimated 56 weeks of construction, moving through the boomerang-shaped building floor by floor.

Financials:

• Total project estimate: $6,230,000
• Less prior 2022 borrowing already authorized: $480,000
• Net new debt exclusion request: $5,750,000
• Potential future ADA grant (elevator + 2 ADA bathrooms): ~$250,000

Tax impact (per Finance Director):

• Average single-family home (assessed ~$1,218,000): net decrease of ~$6/year even after adding all pending debt, due to high school debt rolling off
• Median single-family home (~$956,000): net savings of ~$23/year
• Debt service would represent ~9.94% of general fund revenue, within the Select Board’s <15% policy

The Select Board approved the project at its prior meeting. However, the Finance Committee declined to vote immediately, citing the desire to hear from the newly formed Capital Planning Committee, which is scheduled to meet on Wednesday. The committee indicated it will vote at its pre-town meeting session (6:30 PM before the April 30 town meeting).

Town Administrator Brett Kear introduced the Mary Alley presentation, noting the 1950s-era former municipal hospital building has a failing steam heat system, window air conditioners that drive up costs, space heaters that pose fire risk, a non-functioning elevator, and significant ADA deficiencies. Engineers Dan Wal and Sean (NV5) walked through a feasibility study examining three HVAC options:

Option 3 is recommended because it: supports phased construction (four phases, ~14 months total); achieves full electrification/zero fossil fuel; suits retrofit of the existing boomerang-shaped floor plan; and avoids full building shutdown.

The $5.75M ask to town meeting (net of $480,000 already appropriated from a prior article) covers the HVAC system, roof replacement with 5 inches of rigid insulation, elevator modernization, ADA upgrades (counters, hardware, drinking fountains, accessible doors), fire sprinkler installation, 1980s fire alarm replacement, and asbestos remediation. Electrical service upgrades are included. Windows were noted as a separate capital plan item, with approximately half already replaced.

Soft cost and contingency estimates were discussed: the engineers noted 15% design/OPM fees and a 10% construction contingency are more typical than the 30% and 15% initially shown. A $90,000 ADA grant (Deborah Beach program) and potential Mass Preservation Project Fund grants were cited as possible offsets.

Capital Planning Committee review is scheduled for the following week before town meeting. Disabilities Commission chair has been in communication about the ADA scope.

Town Treasurer Tammy Ello presented the results of a competitive BAN sale. Four bids were received; the successful bid came from Fidelity Capital Markets at 4% interest. The total note amount was $4,922,598, comprising:

New money items include roadway and sidewalk repair, the Mary Alley roof replacement, and the Franklin Street fire station roof and gutter replacement. Notes are dated May 15, 2025 and payable May 15, 2026. A premium of $25,892.86 was received, to be applied against issuance costs.

The treasurer explained that long-term bonding is deferred until enough project funds will be drawn down to justify it, using annual cash flow projections with department heads. The board approved all five required votes — note sale, ratification of official statements, SEC Rule 15c2-12 undertaking, post-issuance compliance procedures, and authorization of signatories — unanimously.

Of the approximately $8.97M authorized in May 2022 for roof replacements and repairs, the $130,000 line for the Franklin Street Fire Station was restricted to roof and gutter replacement. The fire chief needs to address windows and other building improvements. Article 35 expands the language to give flexibility for the full scope of necessary repairs at that station. The change does not involve any new money. Approved unanimously.

Superintendent Mike Erling presented the case for expanding the previously authorized roof project (Article 11, May 2022, $5.4M for roof only) to include simultaneous replacement of rooftop HVAC units.

Project background:

• When OPM (Leftfield) and schematic designer (Raymond Design Associates/RDA) accessed the roof after being hired in summer 2024, they found the HVAC units beyond useful life — attributed to salt-air corrosion at the elevated building location
• Original $5.4M estimate was based on square footage, not an on-site assessment, and did not contemplate HVAC
• Cutting into a new roof membrane within 5 years to replace HVAC would void the roof warranty
• Replacing HVAC in a separate future project would add approximately $2M in re-staging, rebidding, and remobilization costs
• MSBA rejected two appeals; the 30-year age threshold is a hard rule regardless of known material failure
• Total project cost: ~$14M ($5.4M previously borrowed + $8.61M new debt exclusion)
• Minimum roof warranty: 20 years; 30-year warranty under discussion
• Debt term: 15 years

Tax impact (from finance director’s analysis):

• Debt rolling off (prior high school bond): reduces average single-family tax bill by ~$253
• Previously authorized but unissued debt: adds ~$112
• This new debt exclusion: adds ~$107 (average home); ~$49 (median home)
• Net estimated year-over-year tax impact: -$34 (a slight decrease)
• Debt service as % of general fund revenue: estimated at ~9.4–9.5%, well below the town’s 15% policy ceiling

Oversight: OPM (Leftfield), architect/designer (RDA), and school administration. The superintendent indicated interest in recruiting a town resident with building envelope/MSBA expertise to the school facilities subcommittee.

Approved unanimously.

Article 6 – Equipment Purchases ($301,741 from free cash): Includes a Ford F-150 for Waste, electric mower for Rec & Park, police portable radios and radar replacements, Ford F-150 for Public Buildings, and an F-350 with plow for DPW.

Article 7 – Lease Purchases ($491,218; $29,917 from Waste Revolving, $461,301 from free cash): Covers ongoing lease payments for vehicles and equipment across waste, fire, Rec & Park, police, DPW, and schools. The 7D school transportation van is the only new first-year lease.

Article 8 – Capital Improvements for Public Buildings ($1,236,958 from free cash): Key items include:

• Abbott Library partial roof replacement: $373,648
• Fire Headquarters bathroom remodel: $168,310
• Glover School cafeteria HVAC (mini-split system): included
• Glover School playground, Performing Arts Center paint and reupholstering
• Mary Alley lower-level renovation for public meeting space and ADA compliance: $150,000
• Police station flooring: $15,000

The town administrator described the Mary Alley project as expanding the lower conference room, adding a multi-use ADA-compliant restroom, and enabling self-sufficient after-hours public meeting access to fulfill the spirit of a prior Article 44 town meeting vote on video and accessibility.

The board approved three contract actions: (1) Change Order No. 1 on the Cliff Street boatyard underground storage tank project with Collins Engineers for $16,650, funded by the Harbors and Waters Board after ARPA funds from the state’s $200,000 allocation were exhausted; (2) Change Order No. 1 extending the Gary Street Playground contract with Crowley Cotrell to December 31, 2025 at no cost; and (3) Award of contract for Gary Playground phase two with Crowley Cotrell for $30,000.

Finance Committee members Tim and the meeting chair presented the water and sewer enterprise budgets following a March 4 liaison meeting with the Water and Sewer Commissioners and Director Amy (Bethany).

Water Department — $6,457,789

• Largest cost driver remains MWRA assessment and debt service on 0% interest MWRA loans
• MWRA final assessment not yet received; numbers subject to revision before town meeting
• MWRA expanded its loan program to include a 25% grant for full service-line replacement (curb to house) when galvanized iron lines are replaced — Marblehead has no lead lines but does have galvanized iron
• Budget carries an anticipated additional ~$1M MWRA 0% loan borrowing pending commission approval and town meeting appropriation
• Health insurance line budgeted at 10% increase; final number from Alicia pending

Sewer Department — $5,619,529

• FY26 is the final year of the 10-year 0% loan for the Salem Harbor pipeline replacement (approximately $1M payment), saving roughly $1M in interest versus a 20-year term
• SESD final assessment received; reflects an unplanned capital project: replacement of the bar rack and another system at Beach Street Pump Station — an SESD asset used solely by Marblehead, causing the sewer budget to rise above the expected ~4% baseline
• EPA administrative order will require approximately $1M/year in in-house pipe lining
• 28 pump stations need replacement at $800K–$2M each; 8 have been replaced
• Force main under the harbor (which previously broke) is under design for full replacement — estimated $15–$30 million project

Budget presentation format Amy reorganized the budget presentation by functional grouping (admin salaries, field salaries, O&M) rather than strict state account-code order, at the commissioners’ request, to make comparisons easier.

Both budgets were approved with the explicit caveat that final MWRA numbers and health insurance figures remain pending and the commissioners have not yet formally re-voted the revised figures.

Kezer presented a multi-year debt exclusion chart showing obligations through 2044. Key takeaways:

• FY26 net decrease: approximately $1.875M in annual debt service falls off due to maturing bonds, providing direct tax relief.
• Debt authorized but not yet borrowed (including road repairs on bond anticipation notes and school facility work) was acknowledged; the CFO confirmed she uses cash-flow conversations with departments before issuing long-term debt.
• A self-imposed rule limits debt exclusion service to approximately 15% of the levy as a debt capacity ceiling.
• The CIP (Capital Improvement Plan) committee, recently reconstituted by the Select Board, is intended to provide holistic review of capital project requests going forward.
• The town is funding a feasibility/engineering review of Mary Alley’s HVAC and roof; once the report is received, a borrowing request may come to town meeting.

The board interviewed four candidates for three seats on the reconstituted Capital Planning Committee (terms to June 2026):

William Anderson arrived late and was interviewed last. The deciding vote for seat 3 went 3-to-1 for Anderson; one board member voted for Manchi, citing the committee’s composition and desire to round out the board’s skills. The chair noted Manchi’s name would be kept on file for future vacancies.

All three appointees must be sworn in at the town clerk’s office during regular business hours.

The facilities subcommittee noted that Policy FCB requires a comprehensive closing study before a building is formally retired from service. Because Coffin School no longer houses students (they were moved to Brown School), many checklist items will be marked not applicable, but the document still needs to be created.

The chair stated she would have the closing study ready in time for a January vote, prior to the warrant closing. A vote was not taken at this meeting. The committee anticipates recommending that the town place a warrant article declaring Coffin School surplus, which would begin the process of transferring the property. Members noted they have used warrant placeholder articles in prior years and may do so again for this item.

Finance Director Benjamin presented a debt service schedule through 2044 (extended to 2056 with new authorizations). Outstanding authorized-but-unissued borrowings include approximately $9.98M for roads and sidewalks, $1.62M for Brown School MSBA closeout (worst case), $7.4M for school roof/HVAC, $480K for Mary Alley roof, $131K for Franklin Street Fire Station, and smaller items. She noted a short-term bond anticipation note was issued in May at $2.3M and plans to issue another short-term BAN to capture anticipated further rate cuts before locking in long-term rates. If all authorized amounts are issued, estimated debt service would peak around $10.3–10.4M, still below the current level of approximately $11M.

The committee approved a design services contract with Raymond Design Associates (RDA) for the Marblehead High School roof replacement project, covering basic services of $400,000 plus reimbursable allowances of $10,000 (moisture scan) and $15,000 (HVAC review of existing rooftop units). RDA and the project’s owner’s project manager Left Field had previously worked together on the Brown School project. The select board had also reviewed and approved the contract. The vote was 5–0.

The facilities subcommittee noted that rooftop HVAC units are at end of life and could require replacement within six months to three years; replacing them separately after a new roof membrane is installed would void the roof warranty. The question of whether to include HVAC replacement in the project scope — and how to fund it — was identified as a pending decision requiring further analysis and possible debt exclusion or override funding.

School Department Finance Director Mike Ping explained that a prior town meeting warrant article (Article 11, FY23) authorized bonding for the Marblehead High School roof and two rooftop HVAC units on the field house. An OPM (Left Field) was already engaged; an RFP then selected Raymond Design Associates (RDA) to provide designer services.

The contract, reviewed by town counsel, is not to exceed $425,000 and is funded from the previously authorized bond.

Key points:

• The designer will conduct thermal imaging, cost estimating, and develop design scenarios including: roof only; roof with existing two HVAC units; roof with all rooftop HVAC units; and roof with added insulation.
• The roof is currently being patched but continues to develop new leaks, impacting classrooms.
• Due to administrative turnover and procurement timelines, staff do not expect construction to begin in summer 2025; the target is summer 2026, potentially with preparatory work during April 2026 vacation.
• The contractor noted salt air exposure on three sides accelerates equipment degradation.

The board approved the contract and authorized the chair to sign.

The Select Board formally solicited letters of interest for three at-large resident volunteer positions on the Capital Planning Committee, which was reorganized at the prior year’s Town Meeting. The submission deadline was set for December 5, 2024, with interviews tentatively planned for the December 11 Select Board meeting. Interested residents may submit letters and resumes to the Select Board at Abbott Hall or email wiley.k@marblehead.org. The board also adjusted its fall meeting schedule, canceling the November 27 meeting and holding December meetings on the 4th and 18th.

The transfer station project is being re-bid. Winter Street Architects submitted a change order for consulting fees associated with redrafting documents and preparing a new bid package. The director presented the amount as not-to-exceed $41,575, noting the consultants and director would review line items to reduce costs where possible. The prior design contract totaled slightly over $200,000; the bidding portion had not been separately itemized in that agreement.

Motion: Approve architect consulting fees up to $41,575 (not to exceed) for transfer station re-bid documents. Vote: Unanimous in favor.

Chris Musette and Antonio Martini of Hinkley Allen presented a client engagement letter for bond counsel services. The firm’s fixed-fee structure provides cost predictability, with fees payable from bond or note proceeds. Staff analysis showed Hinkley Allen’s fees would have been approximately $38,000 less than the town’s actual payments over five prior issuances — an average savings of about 20%. On the most recent May note issuance, their fee would have been approximately 60% lower.

The town’s existing financial advisor, Hilltop Securities, would remain in place. The engagement is terminable at will. The board unanimously approved authorizing the chair to sign the engagement letter.

The board approved several contracts:

Fiber Optic Municipal Network — $420,662.90 (Boxware Mass) A fiber optic loop will connect all municipal buildings and major intersections throughout town. The loop design provides redundancy — if any one segment is cut, internet connectivity continues via alternate paths. The project is funded by ARPA (board previously authorized up to $500,000). Installation is on existing poles; no trenching required. This is not considered prevailing wage work.

Tyler/Munis Contract Amendment No. 2 — not to exceed $65,241 After a prior decision to use Harper’s payroll software instead of Munis, a coordination meeting with school administrators led to a reversal. Munis payroll will be used by both the town and schools (schools using the HR module). The annual cost difference is approximately a wash (~$20,000–$21,000/year). Former school finance director Mary Deli was retained specifically to assist with migration.

Fire Dept Ford F-150 Lease — $64,269.40 (Republic First National) Lease-to-own truck for fire department training, funded through Town Meeting Article 7.

CZM Harbor Resiliency Grant — $673,428 total (retroactive authorization) The state awarded an additional $150,000+ to cover a project deficit on the Commercial Street harbor resiliency project (seawall raising, accessible waterfront path). The town administrator signed the grant contract before fiscal year-end to preserve funding; the board ratified the action.

Woodward & Curran MS4 Engineering — $180,000 Professional engineering services for MS4 permit years 5–7, including illicit discharge detection and community outreach. Funded through drain construction articles.

Catch Basin Cleaning Change Order — +$9,000 (Roadway Maintenance Services) Rate increase of $4/ton for catch basin material hauling and waste removal.

Mass Trails Program Grant — $60,000 grant / $15,000 town match Improvements to the 650-foot rail trail segment between Smith Street and Pleasant Street crossings.

A change order was approved to the existing Rafael Construction contract for the Abbott Hall brick rentals project, increasing the contract by $20,300 and extending the timeline by seven days. The additional scope covers repointing and securing the building’s stairways and railings, identified as necessary during ongoing drainage and walkway work.

The board awarded a $77,700 contract to George Carnes and Sons of Windham, NH for shipyard public access improvements at Hammond Park and the Commercial Street dock area. The work, funded by a Coastal Zone Management (CZM) grant, must be completed by June 30th. It includes stone chipping to improve waterfront access and will connect to the pocket park and Hammond Park. Residents near the site were cautioned about noise during the work period.

The board awarded a $133,000 contract to Homer Contracting Inc. of Arlington, MA for rehabilitation of the Franklin Street Fire Station’s historic windows. The original windows will be removed, sent to a specialized Boston-area restoration shop for six to eight weeks, and reinstalled with storm windows. The project maintains the building’s historic character; replacing with modern windows would jeopardize historic status. North and south elevations are addressed first, with east and west to follow. Funding is from capital appropriations.

The board approved three capital project contracts:

The Red’s Pond contract covers design, bid documents, and estimated construction costs for rehabilitation of the pond wall, walkway, and water quality improvements. The rail trail contracts cover final design/engineering and preliminary design/permitting respectively.

The Town Administrator presented a request to use ARPA funds to hire a consultant to develop a town-wide pedestrian and bike plan. The plan is intended to guide capital investment, identify safe on-street and off-street cycling routes, and connect to other transportation modes, consistent with the town’s Complete Streets program. The project was estimated at $150,000 but came in at $79,763. The board voted unanimously to authorize the expenditure.

The committee voted 5–0 to accept a donation of $680,698 from the Marblehead All Sports Boosters for the Piper Field turf replacement and site improvements. Superintendent McGinnis noted the broader Fund the Field campaign raised more than $800,000 from hundreds of community donors. The chair credited campaign leaders Muffy Pickett and Victoria Dosh.

The board approved a letter of support for the town’s FY25 congressionally designated spending application for reconstruction of Parker’s Boatyard, part of a broader harbor resiliency project. The request is for $2 million and will be submitted to both US senators and the congressman. Sustainability coordinator Logan Casey was noted as having done significant preparatory work on the application.

Articles 27 and 28 (supplemental appropriations for town and schools) were not brought forward and were recommended for indefinite postponement unanimously.

Article 29 (debt exclusion premium): A new article formalizing the practice of applying debt exclusion premiums and excess MSBA reimbursements to reduce the debt exclusion levy. Once adopted, this will not need to return to Town Meeting annually.

Article 30 (capital transfers, $353,876.54): A new practice of sweeping unspent balances from completed capital projects going back three years and reallocating them to current-year needs. Projects funded include:

• Community center boiler: $42,000
• Fire headquarters painting/repairs: $12,750
• DPW electric panel upgrade: $80,000
• Cemetery improvements: $25,000 (returned to cemetery trust fund)
• Mary Alley building fire alarm: $26,000
• Police station stairwell treads/flooring: ~$5,557
• DPW road/sidewalk/garage improvements: ~$142,569
• Police department crosswalk beacons: $20,000

The CFO noted this is the first time this process has been done, capturing several years of residual balances; going forward it will be a rolling annual review.

Article 11A (water department construction, $2.6 million from water retained earnings): The larger amount compared to prior year reflects catching up after prior years when audited figures were unavailable at town meeting time. Projects include cleaning and lining of water pipes across approximately 100 miles of water infrastructure.

Article 11B (sewer department construction, $2.85 million from sewer retained earnings): Similar dynamic applies. Funds must cover EPA administrative order requirements for infiltration/inflow work (at least $1 million annually), plus pump station upgrades. The town has 28 pump stations, many with 1960s-era electrical systems.

Article 11C (water/sewer claims): No dollar amount; gives the Select Board authority to resolve legal claims related to water and sewer. Recommended unanimously.

Article 5 authorized revolving fund spending up to $3,983,301 for FY25, up slightly from $3,949,344 the prior year.

Articles 6, 7, and 8 together totaled approximately $1 million in capital spending, all funded from certified free cash:

Building improvements (Article 8) included Village School fire panel upgrade, Glover HVAC replacement, Veterans building structural support beam, and various town building entry/exit security improvements. The CFO noted this year’s capital list is significantly shorter than prior years due to budget constraints but reflects highest-priority needs. Article 7 lease purchases included $26,079 from the Waste Revolving Fund for a John Deere wheel loader lease.

The FY25 debt service budget of $11,058,075 was approved. Existing voter-approved debt exclusions are matched on the revenue side so expenses and revenues wash. The CFO noted that a $1 million bond anticipation note for the library will be issued in May, adding approximately $65,000 in interest charges to the budget. School-related bond interest is declining as older debt matures.

Fox and Taylor, co-chairs of the facilities subcommittee, described a facility strategic plan developed three years ago with an outside firm recommending $1–$2 million in annual capital improvements. In practice, the district receives approximately $200,000–$300,000 per year from town capital articles—roughly 10% of need.

Regarding reported mold at the high school, Fox said industrial hygienists are being brought in for additional testing. A complete roof replacement has been approved at town meeting and is currently in the public bid process; the process is lengthy because the project exceeds $1 million and requires an Owner’s Project Manager (OPM).

The subcommittee includes the superintendent, assistant superintendent for finance and operations, the director of facilities, a community representative, and periodic subject-matter guests such as members of Sustainable Marblehead. Community members with relevant expertise were invited to contact the committee.

The Sewer Department enterprise budget of $5,394,543 was approved unanimously. Key discussion points:

Staffing: An unfilled pipe-fitter/diesel mechanic position (vacant due to non-competitive pay) will be addressed by retraining an existing heavy equipment operator through a diesel mechanics certificate program. Two internal candidates were identified; the position is budgeted for only six months in FY25 during training.

Expense increases: Electrical power costs rose approximately 10% as newer pump stations use electric heat and variable-frequency-drive pumps. Fuel costs were stable year over year. The department has always self-funded fuel, avoiding the budget adjustment required of other town departments this year.

South Essex Sewer District (SESD): Marblehead has been a member since 1978. SESD is developing a 20-year capital plan to meet higher EPA standards on an aging treatment plant. The district carries a double-A bond rating and has established stabilization funds. Charges to member towns are projected to decrease slightly next year but then increase approximately 6% in the following year as excluded debt service retires and new non-excluded debt service begins. The sewer enterprise fund cannot carry a reserve against these increases.

Coordination with National Grid: Water and Sewer has entered an administrative agreement with the Highway Department, allowing the superintendent to coordinate directly with National Grid on street reconstruction sequencing. Gas main replacement on Humphrey Street was not on National Grid’s original schedule but was accelerated because water main work made continued deferral impractical.

The committee adjourned at 8:42 PM with no public comment.

Water/Sewer Superintendent Amy presented the Water Department enterprise budget. The department is fully self-funded through water rates and is not supported by property taxes.

Salary side: Staffing levels have remained consistent for approximately 14 years. Added positions in recent years include a GIS field technician (to meet EPA/DEP lead-and-copper rule requirements requiring a public-facing service-line inventory by October) and part-time dig-safe clerks handling more than 3,000 annual marks. A new retirement incentive line is being carried as a contingency given the impossibility of maintaining a formal reserve fund as an enterprise department.

Expense side highlights:

• A new $60,000 emergency allocation line was added to the operating budget for unforeseen water main breaks; it is expected to roll into retained earnings if unused.
• $92,000 in other equipment was shifted from retained earnings into the operating budget for aging infrastructure.
• MWRA water usage charges are estimated at approximately $304,000 (below an earlier projection of 4% increase; first MWRA preliminary budget suggests approximately 3.9% overall increase).
• A 0% interest SRF loan for the Esco Street and Humphrey Street water main projects totals approximately $5.26 million ($2.2M + $3.059M), with annual repayment of approximately $525,940 over 10 years.

Retained earnings: Higher than expected due to delayed audited financials in FY23 and FY24 that forced conservative construction articles. This year’s construction article will be substantially larger than prior years to deploy those accumulated retained earnings on upcoming capital projects.

The board approved three ARPA fund allocations totaling $208,100:

1. Gary School Playground and Park Improvements – $100,000: Supplements a $10,000 donation from the developer and neighborhood fundraising. Funds a consultant-led visioning process and construction toward park/playground improvements on town-retained land from the former Gary School redevelopment.

2. School Professional Development – $63,100: Funds year two of the Wit and Wisdom literacy program (grades K–6) in Marblehead public schools, following a prior ARPA-funded phase one.

3. Hobbs House Window Replacement – $45,000: The town-owned building is leased to Marblehead Counseling Center. A previously approved interior renovation was paused after roof leaks; following roof repairs using capital funds, this allocation addresses window replacement to improve energy efficiency and building integrity.

Approval of these items leaves an unallocated ARPA balance of approximately $576,903. The internal goal is to commit all funds by June 30, ahead of the December 31 statutory deadline.

The town administrator walked through both standard annual articles (pay schedules, revolving funds, capital categories) and four new proposed articles:

1. Community Development and Planning Department — to reorganize roles following the retirement of planning director Becky Kern.
2. Appointment of Board of Assessors / Assessor to CFO — would shift from an elected to an appointed board and bring the assessor’s department under the finance department, consistent with DOR best practice. The assessor’s office currently controls approximately $81M of the town’s roughly $107M in assessed value yet operates independently.
3. Capital Planning Committee bylaw amendment — would restructure the currently dormant committee to include three resident appointees (three-year terms) plus professional staff: town administrator, CFO, school superintendent, DPW director, and finance committee chair. The goal is a formal five- and ten-year capital planning process.

Board members noted that Mary Alley Building is in deteriorating condition and that deferred capital maintenance is becoming urgent. A discussion of the Smart Growth overlay districts (Village Plaza/Millers Plaza) under MBTA Communities was flagged as a topic to revisit with Becky Kern at a future meeting.

The committee voted on five annual town meeting warrant articles ahead of the warrant closing deadline:

1. SPED revolving fund reauthorization (MGL Ch. 44 §53E½) — $500,000 cap; projected revenues $250,000–$300,000. Approved 3–0.
2. Transportation revolving fund reauthorization — $25,000 cap; projected revenues $10,000–$12,000. Approved 3–0.
3. School building capital needs (placeholder) — Could address items such as artificial turf replacement pending booster fundraising update at February meeting. Approved 3–0.
4. School department capital needs (placeholder) — Could address IT hardware replacement cycle estimated at ~$400,000 annually. Approved 3–0.
5. School department supplemental appropriation (potential operating override placeholder) — One member abstained stating she lacked sufficient budget information to support it; approved 2–0 with 1 abstention. A quorum question was noted.

Committee members noted the warrant closes before the full budget picture is known, making placeholder articles a practical necessity.

Two additional contracts were approved:

1. Collins Engineering (Coastal Resilience Municipal Land Project): Contract amended to increase the amount by $38,060, funded by reallocating savings from components no longer required within the existing grant.
2. Bluebird School Bus Lease (Huntington Public Capital Corporation): One 2023 Bluebird large bus with equipment cost of $144,089, paid in five annual installments of $32,206 for a total of $161,034. Because this constitutes a borrowing obligation, the Select Board was required to approve it on behalf of the town.

Three contract actions were approved:

1. Historic Properties Survey — $40,000 contract awarded to consultant John Clemson, funded through Mass Historic Commission funds and a matching grant, to conduct a historic property survey of the Preston Beach and Clifton neighborhood. Clemson was approved by the Mass Historic Commission for this type of work.

2. Old Coast Building change order — Contract with Tom’s Painting and Contracting Services increased by $2,554.54 for additional repairs and materials (rotted wood removal) discovered during the painting project.

3. Hobbs Garage change order — Same contractor; contract increased by $6,927.13 for similar additional repairs. Both change orders close out those contracts.

The facilities subcommittee reported several active issues:

• Veterans School: A structural issue in the D-wing was discovered; structural engineers and the building department have assessed it. Chief Gilland confirmed safety and emergency egress. Affected classrooms were relocated without educational disruption.
• Brown School roof: The roof has been actively leaking for approximately one year despite repeated reported remediation. The OPM’s contract has expired but was active when leaking began. Administrators are engaging the OPM, general contractor, and an independent roofing contractor. A warranty is in place.
• Security cameras: Updated district-wide; approximately 95% complete.
• Composting: Issues with inconsistent pickup by Black Earth are causing nuisance rodent problems; administrators are exploring an alternative composting vendor to support expansion to all schools.
• Solar PV: The Light Department has requested a joint meeting with the School Committee to negotiate an MOU before going to bid on rooftop solar installations. The meeting may occur in executive session due to rate-setting implications under Massachusetts General Law. Installation is contingent on roof repairs at the high school and Veterans D-wing.
• Coffin School demolition: Acting Superintendent Cresta noted that surplus bond funds from the Brown/Gary School project may be repurposable for Coffin School demolition, subject to town meeting reauthorization. Town Finance Director Alicia Benjamin indicated she views this as a straightforward process.

The board approved two contracts:

1. Franklin Street Firehouse window restoration — Foster Architects, $24,200. This covers design development for window refurbishment; full bridge/structural replacement previously proposed during an override discussion was not part of this scope.

2. DPW and police station roof replacement — Corolla Roof of Winthrop, MA, $1,243,689, funded under Article 11 from the prior town meeting. Both roofs were bid together with one contractor. A salt shed project from the same article has not yet proceeded, as fuel station replacement took priority.

Chart of Accounts Consultant — $65,000 ARPA

The Town Administrator explained the town is in the process of migrating from a legacy financial software system to a new platform (RFP in progress). Before migration, a consultant or CPA firm will be hired to redesign the chart of accounts — all revenue and expenditure line items — to clean up an overly complex legacy structure and enable better zero-based budgeting. The project is joint with the schools and expected to take a few months.

Red’s Pond Improvements — $100,000 ARPA

The $100,000 allocation (supplemented by a $25,000 state budget earmark secured by State Rep. Jenny Armini) will fund engineering design, all required permitting, pre-construction work such as test pits, and interim maintenance of the walkway. The current stone-dust surface replaced pavement that was undermining due to water infiltration through a deteriorating stone wall. The allocation is intended to produce a shovel-ready project; construction itself would require a future capital appropriation. Any unused ARPA funds would be returned to the ARPA balance.

ARPA Balance after approvals:

• Total ARPA funds available: $6,144,030
• Previously approved: $5,175,445
• Remaining after tonight: approximately $803,585

The board unanimously approved three ARPA-funded projects totaling $2,390,003 out of $6,144,030 in total ARPA funds available to Marblehead.

Rail Trail Lead Mills Bridge Construction: A section of the rail trail near the Salem line will be improved, including replacement of two inaccessible bridges. Design was completed under a $100,000 DCR grant with Salem as a participating community. The surface will be decomposed granite. Town Administrator noted the project could serve as a prototype for the broader rail trail appearance.

School-Town Financial Software Upgrade: The current financial system (Soft/Springbrook) is obsolete and no longer supported. The $463,803 represents a one-time migration cost to a cloud-based ERP system. The ongoing annual cost (approximately $200,000 for the town plus $200,000 for the schools) would not be covered by ARPA. Finance Director Alicia Benjamin noted the upgrade would streamline operations across town and enterprise funds and enable resident online payment access.

Municipal Fiber Loop: The existing daisy-chain fiber system is aging glass fiber that is prone to breaks. A critical vulnerability was identified when the library renovation required moving fiber boxes that connect to police dispatch. The new looped system will use 144-strand fiber, provide redundancy, and extend past pump stations and major intersections. The neck area was excluded from this phase due to cost. Preliminary pricing came in at approximately $480,000–$490,000; $500,000 was requested to allow for bidding.

Following the vote, $2,709,310 had previously been approved and the three new projects total $2,390,003, leaving a remaining ARPA balance of approximately $968,585.

The board approved three contracts:

1. Stormwater catch basins: Option year two of the contract with Roadway Maintenance Services Inc., January 1–December 31, 2023, not to exceed $175,500. This contract supports MS4 stormwater compliance.
2. Railroad crossing: Change order number two with Richard D’Ambrosia Inc. for the Marblehead Crossing Improvement Project, not to exceed $44,569.17, closing out the contract with credits and adjustments.
3. Police station lockers: Contract awarded to Donegan Systems Inc. of Northborough for $42,482.98, funded under Article 11 of fiscal year 2023. One board member recused from this vote citing consultation with the State Ethics Commission.

Six contracts were approved unanimously:

A school representative explained that the Veterans Middle School roof project had been accepted into the MSBA Accelerated Repair Program, but the 18-month timeline and associated escalation costs would exceed any reimbursement received. The reimbursement rate for roofs under the accelerated repair program is substantially lower than for full building projects. The board unanimously voted to notify MSBA that Marblehead no longer wishes to participate, and authorized the Select Board chair to sign the required documentation.

Article 9 – Purchase of Equipment ($388,488, all from taxation): Items include fire engine refurbishment, station alerting system, a Ford Escape for Recreation & Parks, the town’s first electric lawn mower, Community Center boiler replacement, radio replacements for police, Veterans School exterior lighting, and gym padding. Voted unanimously.

Article 10 – Lease-Purchase ($467,553): Existing lease carry-forwards plus new leases for an aerial bucket truck (DPW), a large school bus, two Ford hybrid police interceptors, and a backhoe. Funded $441,474 from taxation and $26,079 from the waste revolving fund. Voted unanimously.

Article 11 – Capital Improvements to Public Buildings ($302,036): Nine items including cemetery garage lighting (funded $14,585 from cemetery trust), fire headquarters cellar door and overhead doors, DPW storage yard expansion, highway office and electrical panel upgrades, towerway garage floor reinforcement, Mary Alley building floor repairs (partially offset by insurance proceeds from a break-in), high school main entry door replacement, and Village/Glover playground resurfacing. Voted unanimously.

Article 12 – School Capital Needs: Indefinitely postponed — no request at this time. Voted unanimously.

Article 15 – Water Department Construction ($400,000 from water retained earnings): The Water Commission requested the number remain a placeholder until the board could vote; the Finance Committee voted the $400,000 figure with the understanding it could be revisited. Voted unanimously.

Article 16 – Sewer Department Construction ($400,000 from sewer retained earnings): Standard annual article. Voted unanimously.

Article 17 – MWRA Local Financial Assistance Program ($400,000 borrowing authorization): An interest-free 10-year loan authorization through the MWRA program. The town only draws on it if needed; principal is repaid through water and sewer enterprise fund rates. Voted unanimously.

The board awarded a $28,000 contract for architectural services to Derby Square Architects of Salem, Massachusetts, for design and specification work on roof replacement projects at the DPW garage and the police station. These projects are part of the $12 million infrastructure package approved by voters in the prior year’s debt exclusion override. The architectural contract is the first step before competitive bidding for construction.

The Village Street bridge was identified as structurally obsolete, carrying significant weight-limit concerns for fire trucks, trash trucks, and recycling vehicles. The town obtained a project number from MassDOT to enter the Transportation Improvement Program (TIP) process. Under TIP, the town pays for design and permitting locally; the state funds the actual bridge replacement.

The board approved a contract with Greenman-Pedersen Inc. (GPI) not to exceed $397,290.42 for engineering services covering design and permitting. The overall replacement project was described as in the $2.5–3 million range.

The committee reviewed a list of school-owned properties, most of which are adjacent to or access-critical for school buildings (e.g., driveways at Village School). A few parcels — including Feet Street and Gary — appear to still be listed as school-owned by the assessor despite prior transfers to the town.

The Coffin School was flagged as a significant liability: not ADA-compliant, containing asbestos, and in poor condition. The committee asked administration to obtain a cost estimate to demolish the building. Members noted the town has previously declined to enter into any agreement to return proceeds of property dispositions to the school district.

The facilities subcommittee had previously asked the superintendent to develop programming lists for potential uses including an 18–22-year-old transition program, central administration relocation (currently at Witcher Road on the town’s goodwill), and an early childhood center to address preschool waitlists. All property disposition discussions were deferred until after the FY24 budget cycle.

Keyser listed as a recent success the bond sale for the debt-exclusion-approved road, sidewalk, and building improvement projects. The town sold bonds for approximately half the approved amount to fund near-term projects, with the remainder to be bonded in the future as projects mature. The town’s bond rating remains Triple-A.

Town Administrator Keyes briefed the board on plans to replace the 1939 Village Street Bridge, which has a weight limit well below that of town fire trucks and has been flagged as a public safety concern. The proposed approach is to replace the bridge with a preformed cement tunnel structure, modeled on a similar project in Amesbury, which is more cost-effective and lower maintenance.

Marblehead has already obtained a project number from MassDOT. The next step is a contract with engineering firm GPI for 25% design work, estimated at slightly under $400,000, funded by existing Chapter 90 road funds. The design phase is targeted for completion by September 2024, after which the project would pursue inclusion on the Boston Region MPO Transportation Improvement Program (TIP) for state and federal funding. The contract is expected to come before the board at a subsequent meeting.

The board was convened on short notice to act before the Complete Streets grant deadline of December 30, 2022. The original contract with Richard F. D’Ambrosia Inc. of Weymouth came in at approximately $368,000 against a grant of $393,000. A contract amendment of $52,593.50 was required for three items:

• An unforeseen underground duct that necessitated rerouting drainage
• Rapid flashing beacons purchased by the contractor to expedite delivery
• Modifications to concrete median islands (originally a deduct alternate)

Of the amendment total, $25,048 is covered by the Complete Streets grant and the remainder by the town drainage account. The contract was also extended through December 30, 2022; the contractor anticipated completing the work the following day. Affected locations include Smith Street, Pleasant Street, Mohawk Street, and Westshore Drive near the Tower School rail trail crossings.

The ARPA Working Group brought three projects forward for board approval totaling $1,067,110:

The fuel station replacement was flagged as urgent: the town’s fueling system (tanks at least 25 years old) barely passed its most recent environmental inspection. A failed inspection would require shutting down the entire system, affecting all public safety and highway vehicles. Because waiting for normal capital/bonding authorization risked a shutdown or an environmental incident, the ARPA task force scored the project within the fundable range and recommended immediate action.

Running totals after this allocation:

• Total ARPA allocation: $6,144,030
• Previously allocated: $1,245,929
• This allocation: $1,067,110
• Remaining: approximately $3.8M

The board also approved a prevailing wage settlement of $5,048.11 to McCabe Plumbing and Heating, arising from a Rec & Parks plumbing project where prevailing wage was not applied. The Town Administrator noted that prevailing wage applies from dollar one of any public project, regardless of procurement thresholds.

The board voted unanimously to award a contract for the Leed Mills Rail Trail project to Tool Design of Boston, Massachusetts in the amount of $150,800, and authorized the chair to sign on behalf of the board. Tool Design previously completed the master plan for the project and will now handle permitting and design to prepare the project for bidding.

The board approved an amendment to the Fort Sewell project contract decreasing the amount by $3,000, reflecting unused funds as the project wrapped up. No detailed explanation was provided beyond a brief reference to certain items not being required.

Two contract amendments were approved:

1. Police Station Exterior Painting – Contract with John Florissant increased by $4,000 due to discovery of rotted wood not visible during initial inspection. Funds are within the project’s approved contingency.

2. State Street Restroom Project – Contract with MGS Construction increased by $2,903.18 for unanticipated plumbing repairs related to winter freeze damage and installation of automatic locks. Funds are within the $550,000 state grant allocation for the project. A board member inquired about a timeline for completion, and there was an indication the project was being pushed to open before the summer season.

The Select Board discussed and voted unanimously to sponsor a $24.4 million debt-exclusion override to be put to Marblehead voters. The proposal consists of two questions:

• Question 1 (~$9M, 20-year bonds): Roof repairs over five to six years at the Jacobian Community Center, Mary Allen Municipal Office Building, Franklin Street fire stations, Tower Way DPW headquarters, and the high school (with the school’s portion subject to adjustment pending MSBA funding).
• Question 2 (~$15M, 10- and 20-year bonds): Streets, sidewalks, and trees beyond what Chapter 90 state funds cover.

Board members noted the total represents roughly 30% for town building roofs and roughly 65% for streets and sidewalks. They cited favorable timing because high school debt is rolling off the debt-service schedule, allowing the town to stay below a 15% debt-service threshold. Members also cited resident surveys from 2020 and 2021 in which roads, sidewalks, and infrastructure were the top priorities. The plan is designed to be executed over five to six years, allowing costs to be laddered and spread across bond maturities.