Town of Warwick Selectboard January 20, 2015 Minutes Members present: Dawn Magi, Nick Arguimbau (arrived at 5:15 p.m., Patricia Lemon (via remote participation) Others present: Town Coordinator David Young, Town Secretary Rosa Fratangelo, Treasurer and Assessor's Clerk Beth Gilgun, Steve Ruggiero, Maria Ruggiero, Robert Kirley, Tracey Kirley, Police Chief David Shoemaker, Broadband Committee member Scott Seago, WiredWest alternate delegate John Bradford, Tom Wyatt, Erika Nygard, Dan Dibble, Bruce Kilhart, Nancy Kilhart, Vern Bass, Slater Alden, Carmen Rodriguez, George Day, Jon Calcari, Paula Robinson and Jared Robinson (Athol Daily News) I. Call to Order Chair Magi called the meeting to order at 5:15 p.m. in Town Hall. II. Public Comment Steve Ruggiero asked if people may comment on issues as they are addressed or if they are to speak only during public comment. Magi said that anyone can comment when called upon at any point in the meeting. Slater Alden announced that he was recording the meeting for Bill Lyman. Tom Wyatt said that he wanted the Board to consider a letter regarding Vermont Yankee and a change to the emergency notification protocol. Wyatt read aloud the letter, which was based on a letter the Gill Selectboard had previously drafted: "Warwick is one of 18 towns in Massachusetts, Vermont and New Hampshire to have some or all of the town within a 10 mile radius of the Entergy Vermont Yankee nuclear plant in Vernon, Vermont. This means that we are within the plant's Emergency Planning Zone (EPZ) - an area that has in-place, maintained, and predetermined protective action plans designed to avoid or reduce potential exposure to radioactive materials. These action plans include sheltering, evacuation, and the use of potassium iodide where appropriate. Entergy Nuclear, the parent company of Entergy Vermont Yankee, has applied to the Nuclear Regulatory Commission (NRC) for an exemption that will allow it to end funding for the EPZ. Additionally, Entergy Nuclear has asked the NRC for an exemption that will allow the plant a four-fold increase in the amount of time it has to notify surrounding towns of an emergency. Currently the plant must notify towns within 15 minutes. Entergy Nuclear seeks an exemption to increase this to 60 minutes! The Warwick Selectboard opposes both exemption requests. We ask you, our elected representatives and public officials, to assure that EPZ funding is continued until the spent fuel pool is emptied and all the highly radioactive spent fuel is moved to dry cask storage, and to assure that towns continue to receive the earliest possible notice of emergency situations at the plant." Arguimbau corrected the draft to the last sentence of the letter, adding "no more than 15 minutes" between "earliest possible notice" and "of emergency situations", so that portion of the letter would read "...assure that towns continue to receive the earliest possible notice, no more than 15 minutes of emergency situations at the plant." Young noted that due to Patricia Lemon's remote participation, a roll call vote is required on all motions. Lemon MOVED to send the letter as corrected for Dawn Magi's signature. Arguimbau SECONDED. Motion CARRIED 3-0-0: Lemon - AYE; Magi - AYE; Arguimbau - AYE. Beth Gilgun said that she had seen a handout inviting people to attend the Selectboard meeting that included a list of items the author of the handout wanted to discuss. She said that there was a misconception about the Broadband enterprise fund that needed to be clarified. Gilgun explained that we do not raise for that account, we vote to appropriate. In this context raise equals taxation while appropriate equals spending. Young noted that the funds expended come from revenue brought in from subscriber fees. Money in an enterprise fund is not raised and appropriated, but Town Meeting must vote to appropriate so that expenditures are allowed. Young pointed out that the Broadband enterprise fund currently has a positive balance of around $31, 000.00. Gilgun concurred that enterprise funds have no implication for the tax rate because revenue collected are used to pay expenses. Wyatt suggested looking at a way to explain the matter more clearly. Nancy Kilhart said that she had done some research on ways that the Town can save money. She said that the ambulance, which is a donation even though the Town of Orange considers it to be an assessment, has risen quite a bit over the last ten years. It was noted that in the beginning, Orange was helping with certification and recertification for EMTs, but that is no longer done. Bruce Kilhart said that we also use ambulances from several different towns and do not pay those towns, and he suggested paying Orange on a pro-rated basis per call. The Kilharts advocated looking at using Northfield and other towns. Young said that he would follow up. Arguimbau said that the meeting handout referred to by Beth Gilgun had five points listed, and wanted to know how many people besides author Steve Ruggiero agreed with all five. Bruce Kilhart said that there are ways to start saving money regardless of whether or not you agree with all five points. Nancy Kilhart said that everything needs to be looked at, not just the School budget. Young noted that 80% of the School budget is wage and benefits related; these increase 3% the first seven years and 3 1/2% the next years despite the fact that Warwick can only afford a 2.5% increase. He said that there is a real need for meaningful education but we are struggling to afford the rising assessments. Steve Ruggiero inquired about leaving the PVR District. Young said that would require at least one Town Meeting vote, and we must retire all debt owed to the District. Magi asked for input in designing the budget to make it clearer. III. Minutes Arguimbau MOVED to accept the minutes of January 5, 2015 as printed. Magi SECONDED. Motion CARRIED 3-0-0: Lemon - AYE; Magi - AYE; Arguimbau - AYE. IV. Presentations and Discussions 1. Pipeline and FERC--Young said that neither he nor Arguimbau had seen an updated letter to FERC. He noted that the Conservation Commission sent a letter to FERC and many other recipients regarding the pipeline and wetlands, a copy of which appeared in the local newspapers. 2. Chapter 90 Highway Grant--Young said that our Chapter 90 highway grant has increased from $227,645.00 to $341,467.00 because new governor Charlie Baker released funds held back by former governor Deval Patrick. He said that either the acting Accountant Dale Kowacki or Treasurer Beth Gilgun needed a Selectboard vote to be permitted to sign the documents for Accountant Janice Barrett, who is on vacation this month. This is in reference to a project request for $125, 100.00 to purchase a new John Deere loader. Lemon MOVED to authorize acting Accountant Dale Kowacki to sign the project request form for $125,100.00 for the new John Deere loader. Steve Ruggiero asked if Bob Kirley could look at the old loader and determine if there is sufficient life left in it to save the expense of a new one at this time and put the money into road work instead. Young said that in his experience this is the best time of year to trade in old equipment such as this, and that we need to get a new loader before the old one breaks down for good. Young urged the Board to vote to send the project request to the DOT, who has to approve the request before paperwork comes back to the Board and anything could be purchased with Chapter 90 funds. Young said that Kirley could look over the old loader in the meantime, and that the Board could vote not to authorize Highway Superintendent Larry Delaney to order the loader. Bruce Kilhart said that the old loader has transmission trouble, the engine smokes and repair costs would be quite high on a thirty year old machine. Young said that both the engine and transmission are original and that it was doubtful that the old loader would make it through this winter. He ended by saying that he was looking in to ways that Chapter 90 funds can be used to help run the Highway Department. After this discussion, Magi SECONDED. Motion CARRIED 3-0-0: Lemon - AYE; Magi - AYE; Arguimbau - AYE. Broadband--Young said that in an Email dated January 12, 2015, Broadband Committee member Miryam Williamson asked for clarification regarding the expected role for the Broadband Committee in the FTTH/WiredWest decision. Ms. Williamson also plans to resign from the Broadband Committee so that she may preside over the vote as Moderator at the Annual Town Meeting. Young said that Tom Wyatt has agreed to serve on the Broadband Committee and as a WiredWest delegate to carry on the work of his late wife Reva Reck. Lemon MOVED to appoint Tom Wyatt to the Broadband Committee and as our delegate to WiredWest. Magi SECONDED. Wyatt said that he would be more comfortable as an alternate delegate. Current 1st alternate John Bradford expressed his willingness to become the delegate. Lemon AMENDED the latter half of her motion and MOVED to appoint Tom Wyatt to the Broadband Committee and as an alternate delegate to WiredWest. Magi ACCEPTED the friendly amendment. Motion CARRIED 3-0-0: Lemon - AYE; Magi - AYE; Arguimbau - AYE. Lemon MOVED to appoint John Bradford as our delegate to WiredWest. Magi SECONDED. Motion CARRIED 3-0-0: Lemon - AYE; Magi - AYE; Arguimbau - AYE. There was a consensus of the Board that an explanation of the WiredWest matter at Annual Town Meeting. Planning Board Chair Ted Cady had written a draft of a clarifying resolution of the December 15, 2014 resolution in support of WiredWest. The resolution, dated January 11, 2015 read as follows: RESOLUTION: This resolution is a clarification of the resolution passed at the December 15, 2014 Town of Warwick Selectboard meeting as required by MBI to continue to develop a financial model for WiredWest "Fiber to the Home," and is being passed because bond counsel required the resolution to be passed as presented. It is not an amendment to that resolution. The phrase "continue to support the WiredWest initiative" means that Warwick will continue its political and volunteer technical support, but shall not be financially liable or responsible for any WiredWest expenses until a final working agreement is signed. The phrase "we are prepared to work with appropriate Town officials and committees to seek formal approval of a general obligation bond issue at a Town Meeting in the Spring of 2015 in an amount sufficient to pay the Town's share of the regional network" has several caveats. The Broadband Committee, the Finance Committee, the Selectboard and other key committees must have time to carefully and fully review the financial plan which should include the estimated take rate, number and placement of houses to be served, the estimated cost per connection for all services provided, and such other technical information as needed to make an informed decision. It is reasonable to expect that needed information and deliberations will not be completed by the time of the Warwick Annual Town Meeting in early May, and therefore likely that the envisioned bond issue in the sum of about $2 million dollars would not pass at that Town Meeting. Such a sum is a huge cost for a small town of 780 residents and significant time needs to be invested in educating the voters, and to address their concerns and questions. Arguimbau MOVED to adopt Ted Cady's Clarifying Resolution. Lemon SECONDED. Motion CARRIED 3-0-0: Motion CARRIED 3-0-0: Lemon - AYE; Magi - AYE; Arguimbau - AYE. John Bradford said that we do not want to stop the WiredWest process now. Arguimbau said that the clarifying resolution should be sent on to MBI. Young said that he will send it to MBI's General Counsel. Bradford said that WiredWest is moving into high gear. He acknowledged that there are still many financial unknowns, but education of the delegates is forthcoming. He noted that 34 towns have passed resolutions to move forward, and added that the WiredWest initiative is worth considering as it is highly unlikely that the State will put more funds into another project in the future. Bradford felt that we should continue to support the initiative unless a good reason not to arises. Wyatt said that Warwick has an active wireless system producing revenue. Bradford said that for the first three years there would be interest only payments, money would not be borrowed until it is needed, and that it could be a four year window before costs begin occurring. Young said that during the three years of construction it would be one half of one percent, and Warwick Broadband has funds sufficient to cover those costs. He did say that there was a problem with the number of poles and distance between houses here in town. It was noted that we would be paying for capital and operating expenses, so there are potential liabilities as well as potential good involved. Bradford said that the new system has the potential to be at least one hundred times faster than the current WBS, but it was agreed that an exact estimate of just how much faster the new service would be was impossible to calculate at this point. Wyatt said that currently there is no information to help determine what packages will be available. He noted that we will have to do a large part of it ourselves and we need to know that the other towns are as committed and as capable as we are. Bradford reiterated the need to follow the process at least up to our ATM, and that we lose nothing by moving forward. Young said that the first step is looking at the expected operating model and see if it is reasonable. He said that he had just gotten access to the operating model and needed to evaluate it. The subject of cellular was discussed. Young explained that we cannot go forward without a provider because we do not own the radio spectrum. He noted that the Selectboard had made cell service the number one community development priority, and asked if the Broadband Committee should be charged with this. He said that Miryam Williamson did not consider this a good time to add this matter to the Broadband Committee's charge. Arguimbau said that it should be left up to the committee itself. Bradford said that the Broadband Committee would be flat out until Annual Town Meeting gathering information for voters, and thought it best to hold off until after the ATM. Lemon said that it was most important for the committee to focus on the fiber issue for now. Arguimbau MOVED not to assign cellular to the Broadband Committee and to take it up again after Annual Town Meeting. Magi SECONDED. Motion CARRIED 3-0-0: Lemon - AYE; Magi - AYE; Arguimbau - AYE. 4. Electric and Soltas Settlement--Young said that the both someone from the Athol Memorial Hospital board and the Attorney General's office have requested solidarity in trying to obtain a fair outcome for the municipal and non-profit entities. He also said that the AG's office wants any conversations we have with them to be privileged. He said that the AG's office conveyed a higher settlement offer to us from Soltas, which occurred before Town Counsel had a chance to send in the counter offer voted by the Board at their January 5, 2015 meeting. Young said that the AG's office recommends against settling. Lemon MOVED to ask Town Counsel to draft a counter offer that is three times the current offer conveyed by the Attorney General's office. Magi SECONDED. Motion CARRIED 3-0-0: Lemon - AYE; Magi - AYE; Arguimbau - AYE. 5. Upcoming Meetings--Young said that he will try to schedule a joint meeting with the Selectboard and Finance Committee for February 2nd. 6. Selectboard Reports and Member Agenda Items--There were none. 7. Coordinator Report--Young said that the original sign makers are building two new and more weather resistant pendant signs for the Warwick sign on Town Common. He pointed out that we got five years out of the first set of pendant signs, but that they are now in bad disrepair. Young noted that the current letters will be used with the new signs. Young said that he was working on getting more bonus points which are important for our CDBG grant application. Hen ended his report by saying that the Hazard Mitigation Plan had been accepted by FEMA and would be on the next agenda. 8. New and Other Business Not Reasonably Anticipated Prior to Posting Notice--None. V. Adjournment At 7:05 p.m., Lemon MOVED to adjourn. Magi SECONDED. Motion CARRIED 3-0-0: Lemon - AYE; Magi - AYE; Arguimbau - AYE. Minutes taken by Rosa Fratangelo