TOWN OF FARMINGTON
BOARD OF SELECTMEN
PUBLIC MEETING MINUTES
Monday, February 16, 2009
356 Main Street, Farmington, NH
Selectman Present: Chairman Gerry McCarthy, Martin Gilman, Paula Proulx, Gail Ellis and Joan Funk.
Town Staff Present: Town Administrator Anthony Mincu, Fire Chief Rich Fowler and Parks and Rec. Director Rick Conway.
Public Present: Ron Arcouette, Sylvia Arcouette, Charlie Doke, Arthur Capello, Jacquie Capello, Brian St. Onge, Charlie King, Paul Parker, Jim Horgan, Dottie Bean, Ann Titus, Paul Nesbit, Steve Henry, Mike Morin, Mike Mainzer, Ruth Scruton, Packy Campbell, David Kestner, Ed Leonard of Wright-Pierce, Jeff Pond, Kathy Spangler, Glen Hayes, Randy Toussaint, and Jim Petis
Chairman Gerry McCarthy opened the meeting at 6:00pm.
1. Ladder Truck Bid:
Fire Chief Rich Fowler informed the Board that he thought he would have a bid for the ladder truck tonight but the interested town’s insurance company is contemplating bidding on the truck so they are waiting. He also suggested that the Board establish a committee to respond to the stimulus bond.
2. Contract with BayRing Communications:
Tony informed the Board that he contacted BayRing and they will agree to the one year option on the three year contract with the conditions that he read. Gail Ellis motioned to go with BayRing, 2nd Marty Gilman. Discussion followed in which Paula asked Tony for monthly updates on their service. Motion carried.
3. Bond Public Hearing opened at 6:07pm:
A. Tony explained to the public that the Town is seeking approval for a $5,700,000 bond with a 30 year debt repayment. The present interest is 4.2% with equal distribution over the 30 years. The first payment would be $100,000 on the principal and $119,700 in interest. The estimated tax impact would be 74 cents for the first year. At the end of 30 years the Town will have paid $4,452,805 in interest with the total cost being $10,152,805. The bond will not be taken out until 2011-2012 at construction completion, the Town will take out a construction loan in the meantime in which the Town will have no payments. The entire wastewater facility project is estimated to cost $12.6 million with the difference being paid through grants.
B. Paul Parker asked if the state and federal grants are guaranteed. Tony explained that the EPA is confident in the town’s ability to obtain the grants due to the Administrative Order, the Sewer Moratorium and anticipating getting out of the river. Paul then asked how they can be sure the grants are available with the economy the way it is. Ed Leonard said it is their best guess estimate and if the grants do not come in then the project would not begin with town approval.
C. Charlie King asked why the warrant cannot be changed to read “up to or in excess of $6.9million” in order to leave the variability to get more grants. Tony replied that DRA directed the language and if more grants come in the town would be able to accept them by scheduling a public hearing for the acceptance.
D. Ruth Scruton asked why the bond is tax funded and not all supported by the user fees. Tony replied that the Selectmen discussed this at length and recommend the bond payments be supported this way.
E. Dave Kestner stated that if the bond is two years out then the bond rate could be much higher. Tony replied that it could change up or down and that this is their best guess estimate based on the information provided at this time.
F. Jeff Pond asked what the obligations are if the warrant fails. Mr. Leonard explained that if the article fails the town is under an Administrative Order from the EPA and they would demand another special town meeting. The EPA also has the ability to fine the town $32,000 a day and take the town to court on charges. Mr. Pond then asked if a redesign of the facility is a consideration to reduce the cost. Mr. Leonard replied that there is not a design yet, just a conceptual plan and there is a possibility that the cost could be reduced through phasing which we could then apply for more grant funding
G. Mike Morin commented that it has been stated that there is 30% I & I in the system and asked if the funds in the article will cover reducing this. Paula explained that there are other issues at the current plant besides the excess flow that are affecting the need for a new facility. The current plant cannot meet the current number requirements for items like nitrogen and phosphorous. However, the article does have money for I & I work.
H. Arthur Capello asked how long the Selectmen have known the town was in need of a new plant. Gerry replied, since the first day the current plant was built. Arthur questioned why money has not been put aside for this project even over the past 5 years. Mr. Leonard explained that this proposal is not to create an all new facility but it is to update the current facility. Plus, a warrant a few years ago would have reduced this bond because it would have addressed some of these requirements. Paula added that the Selectmen held out for a few years because they were waiting for the state to complete a TMDL study but discovered last year that the State did not have the funding to do so.
Arthur then commented that he noticed the residents in the “upcountry” are going to be able to have their septic dumped at the new facility. Mr. Leonard said yes, a 10 cent/gallon fee will cover the cost of treating the septage.
I. Brian St. Onge asked what the minimum amount of work and funding is needed to meet the EPA requirements. Mr. Leonard replied that he does not have those figures tonight but will certainly bring them to the next meeting, though the difference would be in the facilities growth capabilities.
J. Glen Hayes asked if the town is going to accept septage from other towns to gain revenue. Gerry replied that the Selectmen discussed this and decided no, because there is little expansion included in the proposal and the town will need it to cover the downtown area and some Rte. 11 growth.
K. Arthur Capello asked how the town will monitor septage haulers in that the septage is only from Farmington. Gerry replied the trucks generally have logs but in the circumstance that they do sneak in then at least they will be paying.
L. Ruth Scruton stated that a few years ago it was discussed how the user rates were so low and questioned why they were not raised over the past 9 years to cover this expected cost. Gerry replied that it is a hardship and a difficult thing to do.
Chairman Gerry McCarthy closed the public hearing at 6:54pm.
4. Power Point Presentation on Wastewater Facility by Wright-Pierce:
A. Charlie King asked at what rate the depreciation is factored in and if the taxes are paying for it. Mr. Leonard explained that depreciation is required with grant funding and through the federal accounting standards. The Selectmen decided to fund ½ the depreciation and then split it 50/50 amongst the taxpayers and users. Charlie asked what the minimum required depreciation is and Mr. Leonard replied there is no minimum. Charlie suggested that the Selectmen consider a shorter note and less depreciation. Mr. Leonard replied that those items can still be negotiated until the town goes to get the bond.
B. Jacquie Capello asked if the septage revenues should offset the users and non-users, because she doesn’t feel it is fair to just offset the users when they are the ones getting the primary benefit of the facility. Mr. Leonard replied that the septage revenues go towards offsetting the operation and maintenance of the facility. Paula added that processing the raw sewage from the septic haulers is more costly because it is of higher concentration and solidity.
C. Steve Henry commented that 60% of the funding for the project is proposed to come from grants and asked why it is not reasonable for the remaining 40% to come from the users. Mr. Leonard replied that it is a town facility.
D. A resident asked if the valuation goes up in town will the proposed tax impact of 81 cents go up as well. Mr. Leonard replied that he didn’t think so. Ruth Scruton stated that the Board did not take into consideration the taxation on the hundreds of acres of open space.
E. Glen Hayes asked if it is possible to pipe our sewage to Rochester and Gerry explained that the Board looked into this and it is not an option with Rochester.
F. Paul Parker asked how much private septics would add to the plant and Mr. Leonard replied about 500,000 gallons a year.
G. Jacquie Capello asked if there are any plans to extend the sewer service area and Gerry replied no. She then asked if the Board has considered increasing the connection fees and Gerry replied, not yet.
H. Randy Toussaint commented that once the I & I is reduced the facility will have more room and questioned if the town would accept outside sewage then. Mr. Leonard replied that the Board can discuss that.
I. Charlie King asked what safeguards are being put forward to ensure the plant is being constructed right and under budget. Gerry replied that they have hired an engineering firm.
J. Ruth Scruton asked where the depreciation funds will go. Mr. Leonard explained that a fund will need to be set up with the stipulations on how it is expended.
K. Sylvia Arcouette commented that if the town does not take care of its’ infrastructure then the town is going to decrease in value.
L. Dave Kestner asked for different splits other than the 50/50. Mr. Leonard replied that he will bring those figures to the next meeting.
M. Jacquie Capello asked if this is the only solution the Selectmen are comfortable with and Gerry replied no, it is the most cost effective.
N. Charlie King suggested changing the depreciation to 25% so the town will be eligible for grants in the future.
Gail Ellis motioned to adjourn, 2nd Joan Funk. Motion carried. Meeting adjourned at 8:37pm.
Respectfully Submitted,
Brandy Sanger
Recording Secretary
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Chairman, Gerald McCarthy Vice-Chairman, Martin Gilman
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Paula Proulx Gail Ellis
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Joan A. Funk
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