Town of Warwick
Selectboard
October 1, 2013
                                                                Minutes 
Members present: Dawn Magi, Nick Arguimbau, Patricia Lemon (arrived at
6:07pm) 
Others present: Town Coordinator David Young, Town Secretary Rosa
Fratangelo Calcari,    Pioneer Valley Regional School District (PVRSD)
Superintendent Dayle Doiron, Assistant Superintendent Gail Healy, PVRSD
Building and Grounds Subcommittee members James Ruder (Bernardston),
Mary Glabach (Leyden), Sharon Fontaine (Leyden) and Michael Shearer
(Bernardston), School Committee member Martha Morse, School Committee
and Finance Committee member Eric Engman, Buildings and Energy Committee
members Jack Cadwell, Steve Kurkoski and Janice Kurkoski, Jon Calcari,
Jared Robinson (Athol Daily News) 

I.    Call to Order 
Chair Magi called the meeting to order at 6:00 pm in Town Hall. 
II.   Presentations and Discussions
	Magi began by saying that the main purpose of this meeting was to
arrive at an agreement as to what constitutes capital expense and what
constitutes operating expenses. 	Arguimbau said that another issue
was who would pay for what, and how much they would pay. He said that
because this would be in the back of everyone's mind throughout any
discussions, he felt that an outside party to help everyone to decide
what the individual items are and who will pay for them. He said that
the next step would be to move forward with unambiguous definitions of
capital expense, operating expenses and maintenance issues. Arguimbau
proposed that outside assistance be used to solve the immediate items
which need to be paid for, and saiud that an arbitrator is preferable to
going through the courts.
	PVRSD Superintendent Dayle Doiron said that there was a larger issue
on which the immediate problem rests, and that is what constitutes a
capital item. She said that the building and grounds subcommittee is in
the process of researching definitions and is consulting with other
towns to draft specific language that can then be discussed at a meeting
of the representatives of the towns in the District. Doiron said that
the goal was to have an agreed upon MOU in place before addressing the
FY 15 budget.
	Doiron stated that by past practice and in the buildings and grounds
subcommittee's opinion, the well repair at the Warwick Community School
was a capital expense. Young said that he had spoken with Town Counsel,
who said the law is murky and not helpful in this situation. Young said
that there needed to be clear definitions for what constitutes capital
expense, maintenance and when deferred maintenance becomes a capital
expense. He noted that because the repair was performed in FY 13, a 90%
Town Meeting vote would be required to approve prior year spending.
	Eric Engman said that water, heat and electricity were basic
requirements to run the school, and questioned whether repairs to these
systems were a maintenance expense or a capital expense.
	James Ruder of the PVRSD building and grounds subcommittee said that
the subcommittee sees it as a capital cost. Doiron acknowledged that
this is a murky situation that needs to be made clearer. She said that
past practice is that towns have paid for repairs to part of the
building infrastructure as a capital expense because the schools belong
to the respective towns.
	Young pointed out that the District should not spend money without
the town's concurrence and that the towns do not spend the District's
operating budget. Per Lemon's request, Doiron will send a list of all
repairs made to the member towns' elementary schools, particularly those
made to water systems.
	Young pointed out that on a list of maintenance done over the
summer, under the Pioneer Valley High School heading there was an item
listed as "install new well pump". Doiron countered that this was
because the high school belongs to the District, while the elementary
schools belong to the respective towns. 
	Building and grounds subcommittee member Michael Shearer said that
this was an emergency repair because water was not going into the school
building, and that the well pump simply failed and could not be
maintained. He acknowledged a communication failure that resulted in the
Town not being notified of the immediate repair to allow the school to
continue to operate. 
	Young read from page 10 of the lease agreement: "Capital costs, as
defined by Chapter 71, Section 16(c) are those costs to construct,
reconstruct, add to, remodel, make extraordinary repairs to or equip any
school building, including any debt and interest on long term notes,
bonds or loans. In addition, Chapter 71 Section 16G specifically states
that 'no town in a Regional School District shall be liable for any
obligation imposed on any other town in said District...". Capital costs
may include: new septic systems, water systems, major roof repairs,
major heating system repairs, replacement windows, new buildings, and
major equipment purchases."  He noted that even though the agreement
expired in 2011, we still operate under its terms. Young also pointed
out that the well pump is a component of the water system.
	Doiron handed out a list of capital projects paid for by each of the
other member towns (Bernardston, Leyden and Northfield) over the last
five years for their respective elementary schools. She pointed out that
in 2012 the well pump at the Pearl Rhodes Elementary School in Leyden
was replaced at a cost of $1,469.39. Doiron said that it would be very
difficult to justify to Leyden that while they paid 100% of that bill,
they would have to pay a portion of the WCS well pump through the PVRSD
operating budget. 
	Ruder pointed out that the total bill had two components: repair and
plowing to reach the well. He suggested that each party absorb a portion
of the cost and share the burden as a courtesy due to the lack of
notification to the Town.
	Lemon quoted from page 5 of the lease agreement under Arbitration:
"In the event a controversy shall exist between the TOWN, its successors
or assigns, and the DISTRICT, its successors or assigns, the said
controversy shall be presented to a BOARD OF ARBITRATORS, as hereinafter
created, whose decision shall be final and binding upon the parties. She
noted that this board would be made of three individuals, which might
make the process less difficult and lengthy. Young said that he felt it
was a little early in the process to go that route.
	Ruder said that he had presented a reasonable solution to share the
cost, and Doiron said that it was within the subcommittee's purview to
make that recommendation to the full School Committee.
	Martha Morse said that the Board of Health and Highway Department
were notified of the problem in the morning it was discovered. Young
explained that the Highway Superintendent declined to plow to the well
because no one was able to tell him the location of the septic system.
PVRSD Assistant Superintendent Gail Healy said that a private party was
hired to plow.
	Young read aloud 3.b) from page 2 of the lease: "The DISTRICT shall
be responsible for, and shall pay all costs for the maintenance and
repair to the leased premises, including furniture, fixtures, ancillary
equipment and/or appurtenances located within or without the leased
premises... Exhibit marked "B" which said exhibit is incorporated herein
as part of this lease... All such repairs and maintenance shall be made
to the satisfaction of the TOWN, however the same may be made without
first obtaining the written consent of the TOWN." He concluded that the
lease is murky. Doiron said that is why it needs to be rewritten.
	Young said that we should let things stand and use this as
motivation to go forward. Ruder said that the burden is then put upon
the other towns and that cannot be let to stand. Subcommittee member
Sharon Fontaine said that it would be difficult to spend money on
attorneys especially when budgets are being cut and we want matters to
proceed in a friendly manner. Young noted that arbitration would be
necessary prior to going to court.  Lemon said that while it did not
mean that she agreed with the District's position, she understood why
they took that position now that she knows about the well pump repair in
Leyden. 
	Doiron said that capital projects were paid for in the respective
towns for the buildings they own. It was determined that the well pump
replacement at PVRHS should not have been included in the maintenance
list because it was part of a capital article voted on and supported by
all the member towns.
	Ruder said that we need to do better going forward and that he
favored sharing the costs in this matter. The repair costs were
$4,407.31 and the plowing costs were $405.00. Ruder proposed to the
Selectboard that the cost be divided equally. Doiron said that it would
have to be brought to the full School Committee meeting on October 24th.
There was a consensus of the subcommittee to bring it to the full School
Committee if the Selectboard voted its approval of the proposal.
Lemon MOVED to offer to take the amount of $2,406.15 to a Town Meeting
for its consideration. Arguimbau SECONDED. Motion CARRIED 3-0-0.
	Ruder said that he hoped to have by month's end a compilation of
definitions from other resources which could be brought to the member
towns for discussion and input. Healy said that there are nine other
district agreements in the state to use as resources for drafting a new
agreement so that they would not have to start from scratch.
	Healy said that earlier this year she attended a Selectboard meeting
during which it was agreed that in the future David Young would be
contacted first regarding any school matters. 
	Young thanked the Superintendent for trying to get us some funding
for the WCS roof. He noted that we want to do some energy betterments
along with the roof repair. He also said that deferred maintenance needs
to be a part of future discussions.
III. Adjournment
At 6:49 pm, Lemon MOVED to adjourn the meeting. Arguimbau SECONDED.
Motion CARRIED 3-0-0.
Minutes taken by Rosa Fratangelo Calcari