March 8, 2006
WAKEFIELD DAILY ITEM
By PETER ROSSI
WAKEFIELD - In what could be a major breakthrough for the proposed recreational trail through the Reedy Meadow, the Wakefield Rail to Trail Committee has received a quote from AIG insurance for the cost of an environmental liability insurance policy that could indemnify the town against possible suits.
Last fall the state Senate adopted an amendment, co-sponsored by local Senator Richard R. Tisei and Senator Pam Resor of Acton, that directs the Department of Economic Development to distribute $500,000 a year in matching grants for cities and towns to purchase environmental liability insurance for local rail-to-trail projects.
But the legislation, currently pending in a conference committee on Beacon Hill, is bogged down due to the massive health care bill that's just been proposed - a bill that could cost the state hundreds of millions of dollars.
Local plans call for the proposed bicycle/pedestrian path to be constructed in the rail corridor that runs from the Junction on Main Street in Wakefield, near the Galvin Middle School, to the intersection of Water Street and Vernon Street and on to the Wakefield/Lynnfield line, a distance of about two miles. It would then extend into Lynnfield, through the Reedy Meadow, another 2 1/2 miles to the Lynnfield/Peabody border.
Many communities have raised concerns because, under current MBTA policy, they are often not allowed to gain access to a site eyed for development until a 99-year lease with the MBTA is signed.
Because of this policy, cities and towns have no way of knowing the extent of contamination that may be present due to oil and other harmful substances. Without the protections offered by liability insurance, many cities and towns are unwilling to actively pursue site improvements due to cost concerns.
Sen. Tisei has been working closely with Albert Tur-co, chairman of the Wake-field Board of Selectmen and longtime advocate for the town's rail-to-trail project, to spearhead the effort to shield communities from potential liability arising out of possible third party claims resulting from any contamination found during the design and construction phase of new rail-trails.
Turco said this week he is attempting to set up a meeting at town hall with AIG personnel and representatives of Wakefield, Lynnfield and Acton. All three towns are represented by Steve Anderson, a prominent environmental law attorney. He said the meeting will be held to better understand the coverage that could be provided by the proposed environmental liability insurance policy.
Turco called the provisions of the MBTA's 99-year lease "draconian and unfavorable to Wakefield."
"The fact that the environmental liability insurance premium quoted by AIG may be affordable by cities and towns is a potentially very favorable development," Turco added, "if the insurance coverage ... turns out to be adequate to protect the towns' interests and if the environmental liability insurance legislation, now in the Economic Stimulus Package, pending in the legislative conference committee, can be passed."
While not wishing to go into specific details of the quote until it is studied further, Turco is nevertheless optimistic. "Given the amount of the quote, which is less than I would have expected - and assuming we find out that the AIG insurance coverage would be adequate to protect our interests - it's now very important to have the proposed environmental liability legislation passed by the legislature and signed by the Governor."
Sen. Tisei said this morning that the health care bill that was just proposed on Beacon Hill has brought legislation like the rail-to-trail money to a standstill until funding for the health measure is made clearer.
"The health insurance bill could add hundreds of millions of dollars to the state budget," Sen. Tisei pointed out.
The Economic Stimulus Bill conference committee, of which Sen. Tisei is a member, has met a few times. "But the problem is that before we go through items, we need to know how much we have to spend. The House bill spends $200 million more than the Senate version," he said.
So while the insurance quote is a positive step, these other factors will go a long'way in determining if the proposal ever comes to fruition.