Board of Selectmen
Minutes
April 28, 2009
Town Hall Meeting Room
The meeting was called to order at 6:45 P.M. by Chair, Leo Blair in the Town Hall Meeting Room. Leo Blair, Timothy Clark, Peter Warren, Ron Ricci, and Lucy Wallace were all in attendance.
***On a Wallace motion, the Board voted unanimously by a roll call vote
(Clark – AYE, Blair - AYE, Warren – AYE, Wallace – AYE, Ricci - AYE) to enter into executive session at 7:00 pm, as authorized by Chapter 39, Section 23B of the Massachusetts General Laws, at a meeting for which 48 hours notice has been given, for the purpose of reviewing and discussing the non-union contract. Following the executive session, the Board will reconvene into open session, for the sole purpose of
adjourning. ***
The Board reconvened into open session at 7:05pm.
Leo Blair opened the meeting by explaining the Board of Selectmen would provide a brief overview of the Town Center Sewer project and then open the meeting for public comment and questions. Blair said the Board of Selectmen would then deliberate and come up with a final decision for Town Meeting.
GOAL
Ron Ricci explained that based on the vote from last year’s Annual Town Meeting the Town Center Sewer Action Group was created. The members included: Chris Ashley, Wade Holtzman, Joe Sudol, Carrie Fraser, and Pat Jennings. Ricci referenced their mission statement:
Investigate, evaluate and document the merits of potential septic solutions for the Town’s municipal buildings to assure the community that any proposed course of action is well founded.
Evaluate the costs the Town will likely incur to implement a Municipal only septic solution and to continue to operate the Massachusetts Avenue Waste Treatment Plant.
Evaluate the feasibility of a broader sewer district utilizing existing Waste Water Treatment Plant capacity to serve a district limited in scope to the Environmental Partners 2005 proposed district.
Inform the Town in public forums and by other means, of the design considerations and anticipated capital and operating costs of building a municipal and/or public sewer system.
Determine the likely cost impact to the Town of sharing capital and operating expenses among additional users.
Make a report of the TCSAG findings and recommend a course of action for the Selectmen to put before Town Meeting no later than the 2009 Annual Town meeting.
Board of Selectmen – Minutes
April 28, 2009 page 2
PLAN
Tim Clark stated there will be three articles at this year’s Annual Town Meeting related to this issue.
Special legislation – Home Rule Petition – This will enable the town to create a sewer district rather than adopt the state’s framework. Once framework is accepted by the town it will be submitted to state legislature for approval from the House and Senate. Within the legislation a wastewater management service area is defined, enables town to create a sewer commission to manage and operate the system, and allows regulatory framework to apportion costs for usage.
Debt exclusion – raise and appropriate funding through borrowing –
$2,000,000 for 20 years. This will require a 2/3rds vote at Town Meeting and ratification on Election Day May 5th by a majority vote. Debt exclusion allows grant funding, ground water protection funds, drinking water protection funds,wastewater management protection funds, and any other source of alternative funding. This is allowable because there is intent shown by the Town.
3. Currently, there is a Package Treatment Plant which services the schools and library which represents a $2,000,000 investment in total including cost for uilding the plant and operation. If articles 24 & 25 do not pass, upgrades will be required to existing plant.
COST
Leo Blair explained the Town Center Sewer Action Group has developed financial models. Blair stated the plan is to borrow $2,000,000 over 20 years at 2% interest. The recommendation is that the betterment fees (cost user would pay to have opportunity to have a sewer line at their premises) would be $17,000 and in addition to that a connection fee of $1,000 in first year, second year $3,000, and third year and after it would be $5,000. Blair explained this is to offer an incentive to connect immediately for greater distribution of cost and the system will work better. Blair said he and Finance Director Lorraine Leonard worked out a fair and reasonable ratio between town and homeowners: town to pay 38% and homeowners (subscribers) to pay 62%. Blair stated the town starts with a fixed capital cost invested of $950,000 plus the new debt. Blair
said this plan would not be possible without that asset. Blair went on to state for operating costs: town = 56% of the ongoing cost averaged over 20 years and overtime the town side would be less with an increase to subscribers. Blair explained the betterment for an average sewer unit (3.4 bedrooms) would be $17,000 and once connected an obligation to share in the annual operating cost which Finance Director Lorraine Leonard confirmed would be approximately $800 a year. Blair said for the town the cost increases by an amount slightly less than the cost to upgrade and maintain the existing sewer plant. Blair said the interesting benefit of the program is there would be about $400,000 in upgrades required for the existing plant no matter what the decision is at Town Meeting this money must be spent. Blair said for homeowners with compliant systems they can connect when they need to or want to and betterments will be assessed once system is in place and operational. Homeowners may pay
the betterment in full or betterment can be apportioned; which means financing over 20 years at 2% would be included in property tax bill.
Board of Selectmen – Minutes
April 28, 2009 page 3
Blair also explained that if the cost starts to exceed projection circuit breakers would require the project to stop and go back to Town Meeting. At this time, Tim Clark introduced all the members of the Town Center Sewer Action Group. Chris Ashley was not in attendance. Tim Clark referenced a document of recommendations submitted by the Group named Policies Principals and Financial Circuit Breakers. (Attachment A)
Clark explained in trying to balance the cost of capital to build or expand system with the benefit for the Town with lower operating costs is how the numbers have been shifted from the Group’s recommendation to what Leo Blair and Lorraine Leonard came up with. It was recognized that there would be no savings to the Town because they would have to provide 100% of the operating cost which would be about a $100,000 a year. Clark explained there would be significant benefit to the Town to have other users. Clark also stated the Town has worked hard to find a balance in equity between the participants of the sewer and the Town with regards to capital and operating costs. Clark reviewed primary financial circuit breakers below for review.
Financial Circuit Breakers
The project should come back to the public for review and reauthorization if any of the following occur during implementation:
The total project cost estimate (principal capital) exceeds $2M
Financing rates become unfavorable as determined by the selectmen (impacting taxpayer and private cost projections)
The average private betterment projection increases by more than 15%
The cost/taxpayer projection increases by more than $10/household.
Projected or actual connection rates and the resulting private contribution to plant O&M expenses falls significantly below survey rates.
Clark said the Board of Selectmen is asking for feedback from the public to confirm if these circuit breakers are reasonable and is there anything that has been left out. Clark did indicate there was no mention in the report regarding off sets from grant funding or other programs that may lower the cost of the project, Clark suggested a pro-rated reduction be implemented across the board. Clark explained the betterment is not submitted until the construction is completed. Leo Blair stated a request has been submitted for $2.3 million in stimulus funds for this project.
BENEFITS
Lucy Wallace first read the vision statement from the Town Center Planning Committee to establish the framework for the decision making process regarding this project.
“Harvard’s town center is the municipal, cultural, and institutional heart of Harvard. The center is a vibrant mix of residential, limited commercial, municipal, and institutional activities. Our vision of the center is one where these functions are carried out in adequate facilities that support and maintain the visual, historical, and philosophical character of the current center. Existing historic structures should be reused in a fashion sympathetic to their historic intent and with respect to their unique situations.
Board of Selectmen – Minutes
April 28, 2009 page 4
Redevelopment of existing sites and additional buildings should consider the primary function of the town center as a gathering place, and provide safe and attractive pedestrian access and adequate parking. Traffic flow should be controlled so that the scale of the Center remains appropriate to the historic use of a small town common.
The town should ensure that sufficient land is in public ownership to allow planned expansion, provision of safe drinking water and adequate sewage treatment, and public facilities to operate within these guidelines.”
Wallace explained this project is something the Town started to consider a long time ago once the schools expanded. Wallace indicated in this plan there is a whole section on increasing the centers wastewater and septic capacities. Wallace commented on how well the current proposal has mirrored this plan. Wallace said the passage of these two articles at Town Meeting and the approval of the debt exclusion at the Town Election would be a giant step forward in choosing to preserve our town center. Wallace said there is a great benefit for the social, cultural, historic, and municipal aspects of how the town functions. Wallace also mentioned by tying in residential use the facility will actually be used properly as a biological facility which requires household waste. She indicated that over time the system has been manipulated to function
effectively.
PROCESS
Peter Warren explained articles 24 will be the Home Rule Petition to establish a sewer district in accordance with map provided. (Attachment B) The district will be known as the Harvard Wastewater Management District. Warren said if article 24 is passed a Sewer Commission of three members will be established one member who will be a homeowner in the sewer district. The Commission members will be appointed by the Board of Selectmen with three year staggered terms. The Commission will be responsible to manage, operate, regulate, and maintain the system. Warren said the article 25 will be the debt exclusion. If both articles are passed at the next Board of Selectmen’s meeting the process with begin to form a Town Center Sewer Building Committee consisting of seven members. Warren said four members will be homeowners in the district and
three will be citizens at large. This Committee will be responsible for all activities related to implementation of the town center sewer project. Leo Blair clarified the Town Center Sewer Building Committee would pick up where the Town Center Sewer Action Group leaves off. Once project is completed a Sewer Commission would be established as well as a policy committee. The policy committee would establish guidelines for the commission.
PUBLIC COMMENT
Kyle Hedrick, 3 Fairbanks Street, questioned the equity of cost on this project especially for residents who have recently installed septic systems. Unitarian Church representative Glenn Frederick said they are in support of the project and asked how betterment fees would be determined. Michele Page, 1 Fairbank St., expressed concern on the cost to residents. Darlene Hazel, 3 Littleton Road, spoke in support of the project. Congregational Church representative Paul Green stated at the church’s annual meeting they voted in favor of the project and would tie in. Wade Holtzman to address some to he equity of cost questions Wade Holtzman, Town Center Sewer Action Group, stated the town would only use 6% of system but would be paying 38% of the capital cost.
Board of Selectmen – Minutes
April 28, 2009 page 5
Steve Darby, 8 Ayer Road, suggested appointing qualified members to the Town Center Sewer Building Committee instead of basing the decision on where they live.
DELIBERATION
The Board reviewed the spreadsheet submitted by Finance Director Lorraine Leonard
providing the debt, operating and maintenance, and connection fees of the proposed system. The Board agreed to make a few changes to the spreadsheet by adding recommended financing model as well as three circuit breakers:
betterment increase by 10%
total amount of projected Town Operating and Debt costs increase by more that 10%
financing assumption of an interest rate of 2% over 20 years is not realized.
After some discussion, the Board made the following motions:
On a Clark/Warren motion, the Board voted unanimously to accept the Harvard Town Center Wastewater System Debt, Operating, and Maintenance, and Connection fees spreadsheet as amended.
On a Wallace/Clark motion, the Board voted unanimously to establish a Town Center Sewer Building Committee in accordance with draft presented April 28th.
On a Wallace/Warren motion, the Board voted unanimously to establish a Town Center Wastewater Policy Committee in accordance will draft presented April 28th.
On a Wallace/Clark motion, the Board voted unanimously to endorse passage of articles 24, 25, and 26 at Town Meeting and passage of Question 1 at the Town Election.
Lucy Wallace asked for the status of warrant article for Super Town Meeting regarding Vicksburg square rezoning. It was explained the request and final draft had not be submitted from MassDevelopment. The Board discussed holding a public hearing at their May 26th meeting as Town Counsel advised the Planning Board was not required to.
Peter Warren told the Board that he finally received the Medicare number and the documentation was forwarded to the billing company.
The meeting was adjourned at 9:55 P.M.
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