Selectboard Minutes Monday, January 27, 2014 Warwick Town Hall Boards Room Members present: Dawn magi, Chair; Patricia Lemon; Nicholas Arguimbau Staff present: David Young, Town Coordinator Chairman Magi called the meeting to order at 1:30 pm Primary agenda item was for the Warwick Selectboard to draft an alternate definition of the term "capital" for consideration by the Regional School District that has proposed a definition using a cost of $1,000.00 and a usable asset life of one year or more. Each member had developed a draft and brought it to the meeting. The Warwick Selectboard consulted the following documents: Memo dated 3/15/13 written by Lois Stearns District Agreement, dated 7/1/99 (amended) District Draft Definition dated 12/20/13 IGR No. 10-101 MGL Chapter 71 Section 16 Magi draft Arguimbau draft Lemon draft The result of their deliberation was a new draft with the following main points: Use the word "are" rather than "shall include"; Asset life of 10 years rather than one year; Initial cost of threshold at $10,000.00 rather than $1,000.00; Institution of automatic fiscal responsibility residing in the District with binding arbitration if the District demurs, rather than no recourse for the Towns in emergency cases that cannot be resolved in advance. A copy of the proposed District capital definition draft is attached and incorporated by reference. The second agenda item involved a contemplated natural gas pipeline by KinderMorgan/Tennessee gas Pipeline LLC. Lemon had received a letter from the proponent, and Board members spoke by phone with Ryan McCreedy who explained that the project is in its inception and is, at this point, a line on a map whose feasibility they wish to investigate. About 30 property holdings would be involved and include state forestland. Arguimbau asked if they would be respecting the recent DCR zoning designations. Lemon referred to gas pipeline corridor in Athol, which KinderMorgan was unaware of and guessed was a different company's property. Lemon agreed to scan and distribute copies of the original letter. The Board took no action with respect to the proposal and asked to be kept informed. Selectboard adjourned at 4:10 pm. Capital Costs Warwick Selectboard Draft 1/27/14 Capital costs are single project expenditures in excess of $10,000.00 with an expected lifetime of 20 years and are: 1. The cost of acquiring land 2. The cost of construction, reconstructing, and adding to buildings and the cost of remodeling or making extraordinary repairs to school buildings 3. The replacement of original or operating equipment to replace school buildings and additions and related premises in operating condition. 4. Capital costs shall also include payment of principal and interest on bonds or other obligations issued to the District to finance capital costs. PVRSD shall bear all costs of routine maintenance and repair, and other services; provided however than any single necessary repair or maintenance project to be undertaken in any single fiscal year at an estimated or actual cost in excess of $10,000.00 and to which said repair or maintenance project extends the useful life by 20 or more years shall be considered a capital cost and paid solely and entirely by the member town in which the building is located. It is the responsibility of PVRSD administration and the administration of member towns to limit interruption of the school calendar. Each member town in conjunction with PVRSD administration will conduct and oversee emergency maintenance repairs. An emergency replacement, maintenance or repair shall be defined as an immediate need that is essential to the operating condition of a school in order to make it habitable as to limit the effect on any scheduled school day or event that is in excess of $10,000.00 estimated or actual cost threshold. In response to this emergency, PVRSD administration will make every attempt to coordinate a proper repair solution with the affected member town. Having failed in its best effort to come to agreement with affected town within 24 hours the District shall have authorization to make the repairs it sees fit and the Town shall have recourse through binding arbitration by a board made up of Selectboard chairs of the other member towns.