Present: Ed Melanson, Chairman; Harvey Nasuti, Vice-Chairman; Ellen Friedman, Member; Dan Winslow, Member. Absent: Vida Holmes, Member.
Ed Melanson called the meeting to order at 7:05 p.m. at the Town Hall in Room 214.
Mr. Melanson suggested that since no member of the public was present for the Open Public forum, the meeting should move ahead with discussion of the Board’s recommendation for Water Rate Structure, and deliver it to the Rate Structure Hearing being held by the Board of Selectmen in Room 124. The Board agreed that it would be appropriate to leave the rates unchanged at the present time.
Mr. Nasuti made a motion that water rates remain unchanged for Fiscal Year 2007. Motion was seconded by Ms. Friedman. Mr. John Olivieri, member of the public, arrived at this point, and asked to be recognized before the motion was passed. Mr. Melanson formally opened the meeting to the public. A discussion of the rationale for leaving rates unchanged ensued. It was decided to move forward as previously discussed.
Mr. Melanson restated the motion on the floor with the recommendation from the Board of Public Works to the Board of Selectmen to maintain the present Water Rate Structure used in Fiscal Year 2006, for the Fiscal Year 2007. Ms. Friedman seconded, and it was so voted. The recommendation was signed and delivered to the Board of Selectmen.
With no further discussion forthcoming, Mr. Melanson formally closed the Public Forum, and moved to the next item on the agenda: Review and Approve previous meeting minutes. Mr. Melanson observed that as minutes are approved, they are then posted to the web. He further observed that since the Executive Session meeting minutes pertain to the Mill River site and associated costs, they could compromise our ability to negotiate with Millis and Franklin, and therefore, should not be approved at this time.
Mr. Nasuti made a motion to approve the regular business meeting minutes of November 9, 2005. Mr. Winslow suggested, and Mr. Melanson agreed, that a motion be made to approve all of the meeting minutes, except for those in Executive Session. Mr. Nasuti amended his motion to approve regular business meeting minutes only for November 9, 2005; December 19, 2005; January 9, 2006; and January 23, 2006. Mr. Melanson seconded, and it was so voted.
Mr. Melanson moved to the next agenda item: Report from the DPW Director. Mr. Vito discussed that he will be meeting with Russell Tierney of Whitewater Associates to put together an exit strategy, including procedures for new employees. Mr. Vito is also meeting with our stormwater drainage consultants, SEA Associates (who recently bought out Guertin-Elkerton) regarding expanding the DPW role in subdivision review, while eliminating or minimizing Board of Health and Planning Board roles.
Mr. Vito moved on to a discussion of the Rte. 115 TIP project, which was mentioned in the local paper. The project was in FY’06 funding, but was pushed back to FY’07. However, this does not affect our plan to begin the water main portion of the project this summer, and paving can begin on schedule next summer.
Mr. Melanson recognized Jane Lepardo, Treasurer/Collector, who was invited to discuss Water Debt and Bonding. Ms. Lepardo began with the subject of authorized, unissued funds, as they pertain to the rescinding article drafted by Counsel McNeely of Ropes & Gray. The next item for discussion was surpluses. Mr. Vito and Ms. Lepardo have discussed no longer borrowing against estimates, leaving surpluses of borrowed funds, on which we pay interest; we need to do short term borrowing on money we know we need up front, so that we can then bond and borrow for the actual cost of a total project.
Ms. Lepardo continued, discussing the labor and costs involved in bonding and borrowing, and the benefits, therefore, of consolidating projects to the greatest extent possible. Regarding surpluses, efficiency in borrowing was impacted by changes in leadership. Ms. Lepardo has met with consultants Paul Guertin, Lisa Dickinson of Unibank Fiscal Advisory Services to discuss various problems within the Water Department with regard to how they have impacted revenues and spending, i.e. water bans caused revenue to drop, making it hard to cover debt service. Discussed providing more services to collect more revenues.
Mr. Winslow asked if there was some way to get a better deal on our debt, i.e. refunding it. Ms. Lepardo replied that she has done that for the Town, and explained some of the procedures. Unibank monitors this area and reports that the refunding market is not good at this time.
At this point, a representative from the Public Hearing downstairs came up to ask that a representative from the Board of Public Works meeting join the Rate Setting Hearing. It was suggested and decided that Mr. Vito would attend.
Mr. Winslow inquired with regard to transaction costs charged by Ropes & Gray, our bond counsel. Mr. Winslow stated that the State has revisited how they handle bond counsel, so that it is no longer a monopoly, so you can now get great price, and great bond counsel from many medium sized firms. Ms. Lepardo will look into this.
Mr. Melanson commented that most water projects have a lifespan of 20-25 years, and inquired as to whether we are financing for that period of time. Ms. Lepardo informed the board that when there is surplus money, there has to be a vote at Town Meeting, and the funds must be spent on a project with the same or greater timeframe.
Mr. Winslow asked what our remaining debt capacity is. Ms. Lepardo will speak to Lisa Dickinson regarding that question, as well as reviewing alternate bond counsel.
Mr. Melanson suggested review of how we set life cycles, and then borrow based on that life cycle. If borrowing is set for a shorter time period, then current water users pay an inordinate share of the cost. Ms. Lepardo did mention the drawbacks to borrowing longterm for small amounts of money. Mr. Melanson emphasized balancing the Board’s responsibilities to the Town as a whole, and to the water users of the Town.
Discussion returned to the timetable for the Rte. 115 project, as Ms. Lepardo was not in attendance for that discussion. Ms. Lepardo briefly presented various means of funding this project, as discussed previously with Mr. Vito: bond anticipation notes, state house notes, paydowns from retained earnings to cut down how much is borrowed, spreading over 25-30 years. Ms. Lepardo will discuss this with Lisa Dickinson as well, and report back to Mr. Vito. The Board thanked Ms. Lepardo for her time.
The meeting continued with a discussion of water conservation. Ms. Friedman discussed educating the public regarding conservation, perhaps through a brochure. Mr. Melanson spoke of other measures, such as rainwater collection, and the public’s perception thereof.
Mr. Vito rejoined the meeting at this time (8:01pm).
Mr. Vito continued with the next agenda item: Articles for Town Meeting. First, rescinding money voted in old articles, but not borrowed, as discussed by Ms. Lepardo. Mr. Winslow made a motion to accept placing this article on the warrant. Mr. Nasuti seconded, and it was so voted.
Mr. Vito returned to next article: to use retained earnings for building expansion. Mr. Vito mentioned architect’s quote of $255,000.00, and Mr. Melanson questioned the quote of (approx.) $140 per square foot, since we already have walls, roof, etc. Ms. Friedman stated that insurance replacement costs are between $120-$140/sq. ft. Mr. Vito also pointed out that the elevator alone is $80-100,000. Mr. Melanson also questioned using water retained earnings for this. Mr. Vito addressed the fact that Water had no facility, and was going to need one. Mr. Vito further pointed out the Capital request for funding for expansion of the highway garage. The alternative of having some people at Town Hall was discussed, but discounted. Mr. Vito also addressed the fact that construction firewalls,
stairways, ventilation and other structures have already been funded and completed.
Mr. Winslow made a motion that the article for building expansion be place on Town Meeting warrant. Mr. Melanson seconded, and it was so voted. The discussion continued regarding how to quantify what percentage of operating costs are devoted to water, to justify spending retained earnings. It was then decided to combine the Capital portion with the retained earnings portion at Town Meeting. The question was raised, do we need voter approval to spend retained earnings, and Mr. Winslow went down to check with the Town Administrator and Board of Selectmen. Mr. Winslow returned, with the answer that using retained earnings must be voted at Town Meeting. Mr. Winslow moved to reconsider, Ms. Friedman seconded, and it was so voted. After further discussion, it was agreed to request an open spot on the
warrant for this article, once it is finalized.
Discussion continued for the article, consolidation of unspent funds for use on the Rte. 115 water main extension. Mr. Melanson made motion to approve the article as submitted by the Department of Public Works Director, Mr. Winslow seconded, and it was so voted.
Discussion continued for the article to use retained earnings for the meter replacement program. Mr. Winslow made a motion to appropriate from retained earnings, amount not to exceed $450,000.00, to pay for radio-based meter upgrades townwide. Mr. Nasuti seconded, and it was so voted.
Mr. Vito continued with the agenda item regarding the Solid Waste Newsletter, and Mr. Melanson requested that comments be e-mailed to Mr. Vito.
Mr. Winslow requested that discussion of the Department of Public Works Superintendent job description be deferred to the next scheduled meeting.
Mr. Melanson requested that discussion of the proposed budget be deferred to March 6, and requested that televising of that meeting be cancelled.
Mr. Melanson made a motion to go to Executive Session for the purpose of discussing personnel contract negotiations, and would not return to the regular meeting and would adjourn the meeting at the end of the Executive Session. A roll call vote was taken. Ed Melanson, aye; Harvey Nasuti, aye; Ellen Friedman, aye; Dan Winslow, aye; and it was so voted.
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