Holden Board of Selectmen
Joint Meeting Minutes
March 9, 2009
7PM Senior Center
Present: Chairman David White, Kimberly Ferguson, James Jumonville, Kenneth O’Brien, Joseph Sullivan
Other Present: Brian Bullock, Town Manager, Jacquie Kelly, Assistant Town Manager, James Shuris, DPW Director, Andrew Miller, Camp, Dresser & McKee, Tom Morgan, Camp Dresser & McKee, Elizabeth Helder, Recording Secretary, Members of the Finance Committee, Members of the Water/Sewer Commission
Chairman White called the meeting to order at 7PM.
Water/Sewer Capital Improvement/SRF Discussion
The Manager informed those present that the State of Massachusetts set a deadline for municipalities filing for Federal Stimulus Package money. Applications for the use of this money in the form of a State Revolving Fund (SRF) loan must be filed by March 13, 2009 to the DEP. The Town will use the SRF loan to fund its water/sewer capital improvement projects.
Sel. O’Brien arrived at the meeting at 7:05PM.
The Board reviewed the list of the Town’s high priority water/sewer capital improvement projects.
Andy Miller with Camp, Dresser & McKee reviewed the SRF eligible costs for the projects. He said that SRF loans would be available at an interest rate of 2% or even less. Mr. Miller reviewed each project on the Town’s high priority project list. These projects were submitted to the SRF program in a 2009 Drinking Water bundle. The bundle was submitted by CDM on a Project Evaluation Form (PEF) in order to be placed on the stimulus package project waiting list. By bundling the projects together, the Town received more “points” from the State in order to qualify for an SRF loan. Mr. Miller stated that all the projects qualified for a loan. However, there are conditions to receiving money from the stimulus package. The stimulus money must be spent by very specific deadlines. Qualified project designs must be completed by August 1, 2009. Mr. Miller said that the Town’s projects would be able to be completed by this deadline date.
The Manager said that qualifying for a 0% SRF loan would save the Town approximately 500,000+ in interest.
Sel. O’Brien inquired if it would be possible to install three fire hydrants in a subdivision in Town to the project bundle. The approximate cost for the three hydrants is 5K. Mr. Miller said that while the bundle has already been approved, the contractor would probably accept a change order for such a small addition.
Sel. O’Brien said he supports the SRF project bundle. He said that while he has confidence in CDM’s work, the design costs were not put out to bid and therefore have no competition. CDM agreed to work on a time plus materials basis with a cap on the estimate. Work will be documented hour-by-hour
Al Berg Chairman, Finance Committee said that CDM has been working with the Town since the 1950’s and Mr. Miller has been working with the Town for 20-years. He said that CDM is familiar with the Town’s water/sewer infrastructure, and you can’t pay for that type of experience.
The Board discussed the proposed replacement of the Mayflower Circle water main. Jim Shuris, DPW Director, said that the neighborhood has a history of leaks. The project made the list based on a past history of leakage. Mr. Berg said that the DPW used to joke that they were replacing the Mayflower Circle water main foot by foot. Chairman White said he would like to base his decision on concrete facts and records. Mr. Miller said that the current water main is a six-inch asbestos pipe, which is outdated in size and not manufactured any more. This project has been on the high priority list for a long time. The constant leaks and the age of the pipe dictate its replacement.
After a lengthy discussion it was determined that the Town would purchase a generator that would carry the largest load possible. It will be located on a trailer for use at other areas in Town.
The Manager presented an estimated borrowing schedule to reflect different scenarios. It was determined that in the first year, the FY10 payment would be taken from the W/S depreciation fund.
Don Mancini with the Finance Committee commented that a zero or low interest SRF loan makes it a good time to complete these high priority capital improvements. However, he questioned whether it was appropriate to complete all these items at one time.
Sel. Ferguson said that she supports doing these projects. However, she cautioned those in attendance to remember that the Board and the Administration are asking rate-payers to support this borrowing in addition to potential sewer rate increases, trash increases, and tax increases.
Mr. Miller commented that many of these capital improvement items are long overdue and in need of immediate attention. However, only the Mason Road Wellfields risks receiving a DEP regulatory consent order if the work is not completed by FY2011.
Sel. Sullivan said that water is a service that ratepayers ingest. The Town must ensure the safety of its deliverable service to its residents.
Motion by Sel. Sullivan, seconded by Sel. O’Brien, it was UNANIMOUSLY VOTED THAT THE BOARD OF SELECTMEN ENDORSE THE RECOMMENDATION OF THE ADMINISTRATION FOR THE DRINKING WATER STATE REVOLVING FUND PROGRAM AS PRESENTED.
Special Town Meeting Discussion
Motion by Sel. Sullivan, seconded by Sel. Ferguson, it was UNANIMOUSLY VOTED TO HOLD A SPECIAL TOWN MEETING ON MARCH 31, 2009.
Motion by Sel. Sullivan, seconded by Sel. O’Brien, it was UNANIMOUSLY VOTED TO OPEN THE MARCH 31, 2009 SPECIAL TOWN MEETING WARRANT AT 7:50PM.
Sel. O’Brien left the meeting at 7:50PM.
The Board discussed the proposed warrant articles.
The Manager said that the Town has been pre-approved by the State for 3.6K borrowing for the Ice Storm. The Manager said he would be able to cover expenses generated from the December 2008 Ice Storm with borrowing until June 30th. If the Town does not receive its FEMA reimbursement check by June 30th, then the Administration might have to borrow. The Manager said that his staff worked very hard to make a careful estimate for reimbursement. However, waiting for reimbursement to trickle down from FEMA to MEMA to Holden is an unreliable waiting game. The Manager said it was his goal to not borrow a dime.
Chairman White said he was concerned with asking residents for approve 7M in borrowing at the March 31 Special Town Meeting. He asked if the Ice Storm borrowing could be postponed until the May Town Meeting. Six weeks difference might give the Town more answers for residents in terms of reimbursement. He said that a 7M warrant was a “big nut to crack.”
Sel. Sullivan said that psychologically, residents can see that the Town is still in a state of disrepair from the ice storm. He suggested that the Board place the article on the warrant for housekeeping purposes; it can be removed later.
The Board held discussion regarding budget reductions per Governor’s 9c Local Aid Reduction. The Manager said that the State Department of Revenue directed the Town to vote to make the reductions in the budget. The Manager reviewed the recommended cuts to the budget to bring it in to balance.
The Board held discussion regarding authorizing a borrowing for the 275K budget reduction. The Manager said that the question was how, if all, to “backfill” the deficit – borrow from the IIF or outside borrowing. The Manager said that half the sidewalk project is funded in FY09 and the other half in FY10. He said that the borrowing strategy for the budget reduction was in order to keep the project going.
Jim Dunn with the Finance Committee said he felt that he was being pushed into artificial crises mode regarding budget reductions/borrowing. He said he would prefer to wait until May Town meeting to have his entire budget fixes in a row. Timing is the issue.
Al Berg asked if there was a need to even fund the 275K budget reductions? Is there a need to fund sidewalk projects? He said the Finance Committee would discuss these questions at its next meeting. Mr. Berg commented that it would be important to keep communications open between the Board and Finance Committee, so they are on the same page in terms of recommendations.
Sel. Sullivan suggested that the Board vote to set the articles in order to put them in as placeholders. As further information becomes available, the articles can be addressed a “take no action” at Town Meeting.
Chairman White expressed concern regarding the placement of Article 3 on such short notice and said he would not support the motion.
Motion by Sel. Sullivan, seconded by Sel. Ferguson, it was VOTED 3-1 WITH 1 OPPOSED TO PLACE ARTICLES 1-9 AS RECOMMENDED BY THE ADMINISTRATION. (OPPOSED: WHITE.)
Motion by Sel. Sullivan, seconded by Sel. Ferguson, it was VOTED 4-0 TO CLOSE THE WARRANT AT 8:38PM.
Adjournment
Motion by Sel. Sullivan, seconded by Sel. Ferguson, it was VOTED 4-0 TO ADJOURN THE MARCH 9, 2009 MEETING AT 8:39PM.
Approved: March 16, 2009
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