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HomeMy WebLinkAboutMinutes - BoS - 05/17/2010 Minutes—Board of Selectmen May 17, 2010 Selectmen Present: Karen Quigley, Chairman Edwin G. Carr* Frederick R. Koed Paul Carlson Leland H.Jenkins Others Present: William R. Griffin,Town Manager Chairman Karen Quigley called the meeting to order at 6:30PM. Executive Session—Chairman Quigley moved that the Board go into Executive Session for the purposes of discussing Collective Bargaining.The Board will come out of Executive Session for the remainder of scheduled open meeting. Selectman Koed seconded the motion. Selectman Frederick Koed —Aye Selectman Leland H.Jenkins—Aye Selectman Paul Carlson—Aye Chairman Karen Quigley—Aye The Board returned to Open Session at 6:45 PM. Board Review of Special Town Meeting Article 1: Union Contracts &Other Salary Adjustments—Town Manager, William Griffin, reviewed the details of the agreements for the Board. Selectman Paul Carlson stated that they look like good contracts and stated that he knows that it's been a lot of work and a long process to get it done. Selectman Carlson moved to recommend approval of Article 1 at the Special Town Meeting. Selectman Koed seconded the motion and the vote was unanimous (4-0). Article 2: Easements of Jacobs Meadow Culvert Project— Mr. Griffin reviewed the background of the Jacobs Meadow Project. This article addresses the need for language that makes reference to easements that are needed to complete the project. Selectman Jenkins moved to recommend approval of article 2 at the Special Town Meeting. Selectman Koed seconded the motion and the vote was unanimous(4-0). Article 3: Zoning Bylaw Amendment—Section 8.7.1—Mr. Griffin stated that the Planning Board will be holding a public hearing for this zoning change in the coming week. In this case, it seems likely the Board would want to wait until that was over and therefore this article will read that a recommendation will be given at the Special Town Meeting. MIIA Disclosure Form for Town Manager— Mr. Griffin explained that he was elected to the Board of Directors of MIIA of both the health trust and property and liability. Each member of the Board is required to request the appointing authority declare that the Board of Selectmen understands that he is serving and that he does not get compensated for it, but at the same time the Board is confident it [he being on the Board] would not infringe in any way on the professional services that he provides the Town. Selectman Koed moved to confirm that the Board has been advised of the situation and thus authorizes the Chairman of the Board to sign the waiver. Selectman Carlson seconded the motion and the vote was unanimous (4-0). Selectmen 5.17.10-JBO 1 Minutes—Board of Selectmen May 17, 2010 One Day Liquor License Selectman Carlson moved to approve a one-day wine and malt liquor license for the Unitarian Universalist Congregational Church for a fundraiser on May 22, 2010 from 7-11PM. Selectman Koed seconded the motion and the vote was unanimous(4-0). *Selectman Edwin G. Carr arrived at the meeting at this time. Joint Meeting with the Advisory Committee on Water Planning Group (WPG) Recommendations on Water Department budgets for Fiscal 2010 and 2011. The Board was joined by the members of the Advisory Committee and the WPG. Mr. Griffin reviewed the structure of the warrant explaining the appendixes that will be included in the warrant. Chairman Quigley stated they are here this evening to discuss the financial recommendations of the Water Planning Group. Chairman Quigley asked Selectman Carlson, who is the Chairman of the WPG if he would like to read a statement. Selectman Carlson read his statement aloud which addressed why the WPG was created. He explained that any shortfalls in the Water Budget need to be made up by the Town. The WPG was created in March, met weekly and have produced several recommendations to be addressed at the June 14, 2010 Special Town Meeting. He stated that these recommendations are short term stop gap measures because they have to be in place by June 30, 2010. He then listed the proposed changes that would be addressed in articles,they are: A transfer from the stabilization fund of about $300,000,for 2010,they are also suggesting some longer term solutions which will also be painful. First, a capital recovery charge of$75.00 per quarter to be added onto current water bills, an increase of 10% in water usage rates,the establishment of a third tier of rates for those who use more than 5,000 cubic feet in a quarter and that the Town be charged for the water departments cost of maintaining the hydrants. To cover the cost of the transfer of the cost of the hydrants to the Town's budget, they are recommending a proposition 2% override. With these changes,they feel that the water department will be able to operate at a break even basis or better over the next couple of years. They are also asking that the Town Meeting approve $300,000 in important capital improvement projects to be financed with an increase in the quarterly charge to take place at the end of FY2011. Going forward the group recommends that all capital expenditures made by enterprise funds have identified sources of funds. Selectman Carlson stated that these are painful recommendations and that they have worked long and hard exploring various options. However, in order to pay the bills of the Town, they have to take in more money. The other alternative would be for the Town to not pay for its obligations and this would end up causing chaos and therefore he feels that the Town has to consider these warrant articles. Chairman Quigley thanked Mr. Carlson and asked if anyone else would like to make an opening statement from the Advisory Board. Mr. Samuel Wakeman, Chairman of the Advisory Board, stated that he feels strongly that it would be unfair to throw these [proposed changes] onto the taxpayers without a long term solution for the problem. He does feel that the leaders of the Town were "asleep" at the wheel and changes need to be made to both the water and sewer enterprise funds guaranteeing they are being closely supervised on their financials. He feels there has to be some real analysis and that the management structure needs to be looked at very soon so the voters see that this is being looked at. He said more importantly, he feels they need to go forward and not worry about what has been done. Chairman Quigley stated that she could not agree more. She feels that in order to restore public trust in the process at Town Hall,they need to feel that what they are presenting will go toward the longer term goals so we don't find ourselves in this situation again. She stated that she feels if they do not succeed in getting that across to the Town,they will fail on the floor at Town Meeting. She added that speaking for herself; she feels the Town is owed a public apology for what has happened. Mr. Wakeman agreed. Chairman Quigley added that she agrees with Mr. Wakeman that there needs to be a line by line Selectmen 5.17.10-JBO 2 Minutes—Board of Selectmen May 17, 2010 comprehensive audit [of the Water Department's Budget]. Selectman Carlson stated that he agrees with all that has been suggested but first they have to get through Town Meeting. Advisory Committee member Pat Waters stated that for this evening they need to first focus on the financials to pay the Town's bills. They can then focus on other issues, but they first have a fiduciary duty to the Town. He then addressed the new charges that the user will be seeing on the bill. He would like to see a breakdown on the bills so people can see where the money is going (i.e. land acquisition v. distribution system upgrades). He considers this an open issue that could hopefully be discussed a future meeting of the WPG. Mr. Waters addressed the need of an override in order to accomplish these goals. He pointed out that the override may pass at Town Meeting but not at the ballot box and therefore he suggests the language in the articles have two options so they would not have to go back to Town Meeting. For example, passing something that will cover the override amount should it not pass. There was then discussion on rate charges and fees, as well as dedicated funding sources for capital expenditures going forward. Water Commissioner, Chris Seebeck stated that he feels having the fees itemized will make them more transparent to the user. It was agreed that for the purposes of the warrant,the fee charge will be one lump sum, but on the bill of the water user, they will be broken out. Chairman Quigley then explained the fire hydrant fees and how that article will affect the budget. Mr. Griffin then addressed usage fees. He stated that it is unfair to raise a fee when people are presently using the water, but they can adjust the quarterly fees as of July 1. There was a lengthy conversation about the fees and how much they will generate. Mr. Griffin suggested that they run additional figures at the next meeting of the WPG to revote the issue and present their recommendation to the Board of Selectmen. There was then further discussion about the billing and whether the bills would show one month of the old rate and two at the new rate, or if they should just start the billing in September. It was agreed that this would be discussed at a later time. There was then a lengthy conversation about the fees being spread to all of the users. Advisory Member, Ed Lappen expressed his concern that it was unfair to charge people on a per head basis. Selectman Carlson stated that it is not a per head basis, that 60%was usage and 40% per unit. Another member stated that if we base this all on usage, they could be back with the same issues a year from now. Chairman Quigley then addressed the rates and water usage. Mr. Wakeman stated the he feels one of the reasons they saw a decrease in usage was not just the weather, but also the fact that we are in a recession. There was further discussion on the Tier 3 rates and that it was created for a revenue stream only and they are not sure what it will bring in as it's new. Selectman Carlson pointed out that 2008 and 2009 were the wettest summers since 1997. He stated that summer usage is quite volatile. Mr. Waters added that they need to be careful with how they work things as thus they have been very careful in how they projected the usage. Where there is such a volatility usage cannot be predicted and that's why the charges should be focused on paying for the distribution system. Chairman Quigley added that at Town Meeting they will need to point out that these are initial changes to deal with the issues at hand for FY10 and FY11, and that indeed as they watch things prove out,they may have to come back and revise these changes at a future town meeting. Mr. Griffin then stated that he felt it would be useful to connect a couple of things in particular,the last line in the expense category for sludge removal, that number only happens if the capital project that will be discussed passes. It will increase if the article for capital improvements is not passed. There was then a discussion regarding the budget and what monies would be deferred where and payments they would be receiving. Mr. Waters then stated to Chairman Quigley that it is important that people know Selectmen 5.17.10-JBO 3 Minutes—Board of Selectmen May 17, 2010 that not until they [WPG] looked at every place they could cut in the budget did they then look where else they could bring in revenues to tighten the financial gap,were additional fees considered. Chairman Quigley also pointed out that if some articles don't pass,they will be severely depleting the Stabilization Fund. Mr. Griffin said that if the Stabilization Fund is used, he would like to see it be repaid with the second Avalon payment so it is a loan. His stated that the Town may be trading a lot for the deferral of the$208,000 owed to American Water in regard to the Town being able to negotiate the way it wants on the contract. Mr. Waters, Selectman Carlson and Mr. Wakeman agreed. The WPG will discuss this further at their next meeting. They then reviewed Article 8:Water Department Capital Improvement Proiects—Chairman Quigley reviewed the problems related to the sludge lagoons. This proposed capital project would initially cost $100,000, but reduces the cost by$100,000 this year and each year thereafter. All three of these projects will be paid by the$4 per quarter rate increase to cover the cost of capital projects. They then reviewed the other proposed costs including another$150,000 to cover the costs of additional paving for the Little Harbor Sewer Project. Mr. Wakeman asked Water Commissioner, Glenn Pratt, if this was enough to finish the project. Mr. Pratt stated that it is not a firm figure because they are sharing the cost with the Sewer Commission. Chairman of the Sewer Commission,John Beck, stated that he is confused by this. Mr. Pratt stated that it was figured in on the cost on the project. Mr. Waters suggested that Mr. Pratt bring a complete breakdown of the$150,000 to the next WPG meeting. They will then verify it before they recommend it. Chairman Quigley then addressed the phosphate treatment the money requested would be used to complete the process. Selectman Carr asked what date the EPA required this to be done. Mr. Pratt stated that twice over the last three years they have failed the tests. This coupled with the manganese issues (which he feels the phosphate process will help) are why they are wanting to do it now. Selectman Carr asked if there would be side affects. Mr. Pratt said that there could be widespread discolored water and they are having a public forum to discuss it. Chairman Quigley stated that this situation is a mess, but that there have been many hours and long nights the Water Planning Group has spent on this and the general consensus is that there is no easy solution and certainly every stone has been turned. While these are not good recommendations,they are the best recommendations that can come forward at this time. She feels that in order to get a good vote at Town Meeting,they have to look at the other side of the equation and look at how this could have happened and ensure that it won't happen again, and that this is not business as usual at Town Hall. She feels that real solutions should be found so that they don't have to come back again in the near future asking for more money from the taxpayers. Advisory Board member, Merle Brown requested that an in-depth audit of both the water and sewer departments be conducted to see where things are with not just the money, but also the management of them. Chairman Quigley stated that this has been discussed and she couldn't agree more. Chairman Quigley opened the discussion to the audience. Mr.John Chapman of 25 Virginia Lane. He feels the equity issue will add fuel to the fire. He is an average water user and he will be stuck with the average rate increase. He asked for clarification on the rate increases stating that in some cases, it looks like the 800 cubic foot user will be seeing 150% increase including the last rate increase. He left a copy of his figures with the Board. Mr. Ralph Dormitzer of 111 Atlantic Avenue stated that he appreciates all of the hard work that people have done, but that he would like to share his impressions. He feels they need to say the water Selectmen 5.17.10-JBO 4 Minutes—Board of Selectmen May 17, 2010 department is in receivership and that the Town is taking on the expenses. He added that fees should be clarified; will it be on the bill forever or will it come off eventually? He feels the proposed rate structures discourage water usage. He does not feel they water department should do anything [capital improvements] that is not necessary. He also suggested that paving be looked at and not all of should be done now. Mr. Griffin stated that he would get a status on the chapter 90 money. Chairman Quigley stated that the bottom line is that this issue is having a far reaching impact on the Town. Selectman Jenkins stated that he feels this is far too difficult to explain to the rate payers at Town Meeting. He has come to the conclusion that the Water Department cannot live with the variable rates as it is too small a system to pay off this debt. He feels it should be a fee and nothing else. He personally feels that every user benefits from the capital expenditures. A question was then raised about the phosphate project. Mr. Pratt reviewed again why he feels the phosphate project needs to be done sooner than later. Mr. Waters then stated that he would like to respond to Mr. Dormtizer's comments by saying that the WPG at first said no to everything. They reviewed each line item and cut where they could and put off projects that could wait. This is now step one and where the Water Commissioners, elected officials, have said that some of these projects are required as they are a public safety hazard, he feels the Town needs to listen. After further discussion, Selectman Koed moved to adjourn the meeting. Selectman Carr seconded the motion and the vote was unanimous. Meeting adjourned at 9:15PM. Respectfully submitted, Karen Quigley Chairman Selectmen 5.17.10-JBO 5