MINUTES SUBJECT TO CORRECTION BY THE SHELBURNE SELECTBOARD. CHANGES, IF ANY, WILL BE RECORDED IN THE MINUTES OF THE NEXT MEETING OF THE BOARD.

TOWN OF SHELBURNE

SELECTBOARD

MINUTES OF MEETING   

May 11, 2010

• Work is progressing rapidly on the Mt. Philo Road sidewalk.
• Ditch and drainage work is being done on a section of Spear Street to make the area safer for pedestrians and bicyclists.
• The town lease with Verizon will be signed once negotiations are settled between Verizon and Snelling.
• Work at the beach is essentially complete. Only a few minor items remain to be finished.

 

 

MEMBERS PRESENT:      Robert Roesler (Chairman), Tim Pudvar, Al Gobeille, Bill Smith, Gary von Stange.

ADMINISTRATION:          Paul Bohne, Town Manager; Peter Frankenburg, Finance Director; Bernie Gagnon, Public Works Director; Chris Robinson, Wastewater Plant Chief Operator; Colleen Haag, Town Clerk.

OTHERS PRESENT:          Janice Nicholas, Robert Lake, Peter Gadue, Danielle Frawley (Shelburne News).

Robert Roesler called the meeting to order at 7 PM. Chairman Roesler recognized the events of the past weekend in town, some tragic, noting the Selectboard feels deeply for those involved. The Selectboard and the Town owe a debt of gratitude to Shelburne Rescue and the Fire Dept. as well as all the volunteers for the great service throughout the weekend and for multiple events.

 

Postpone Item #11 (Consider adjusting the sewer charge for the Trinity Episcopal Church) and add Executive Session following regular meeting to discuss personnel matters.

 

Janice Nicholas, 673 Mt. Philo Road (26 year resident), said she is upset and angry at the Shelburne Wood decision. The Selectboard had a chance to do something positive for Shelburne Wood, but did not and now 28 families will be turned out of their homes. There is a “fishy odor”, continued Ms. Nicholas, starting with the original owner illegally trying to sell the property out from under the tenants. Now five years later nothing is accomplished except $1.3 million is down the drain. There is question of whether this was a NIMBY situation or “McMansions” were wanted for the money instead of lower income housing. People will watch to see that no one on the town boards make money or profit from what goes before them, assured Ms. Nicholas, adding she has lost confidence in the DRB and Selectboard. The action taken by the Selectboard condones the behavior of the DRB, said Ms. Nicholas. The DRB’s actions are secretive and capricious. There are other examples where an applicant did what the DRB wanted at their expense and then the DRB wanted something else. Also, at a recent DRB meeting an individual in attendance said the DRB was condescending, demeaning and rude to the applicant. Perhaps at the interviews the Selectboard should have asked the candidates if they were on the DRB how they would treat people. Also, the interviews should be open and impartial without any board member endorsing any individual. In closing, Ms. Nicholas suggested that at Thanksgiving when the Selectboard members are in their homes, some that are very expensive houses, thanks should be given that they are not one of the 28 families being thrown out of their home, and it is hoped there will not be thanks given that the families were thrown out of their homes.

 

 

Robert Lake, Clearwater, explained his interest in serving as Town Health Officer. Mr. Lake said he feels he can help mitigate situations and get dialogue going between parties. Chairman Roesler disclosed Mr. Lake is his neighbor. Paul Bohne explained the Town Health Officer typically handles tenant issues. The state health division handles motels. The police will handle situations as necessary. There are typically six to eight calls to the Health Officer annually. The Health Officer needs to be aware of state statute. There is training and a manual for guidance. The Health Officer has authority to take action, but the Selectboard is involved as the local Board of Health. The state depends on the town to make a recommendation for the town health officer. Bob Lake affirmed his understanding of the responsibilities and limitations of the position, stressing his interest in avoiding getting the town involved in litigation, but rather promoting mitigation.

 

 

 

 

Peter Frankenburg reported the Wastewater Dept. operates as a separate enterprise fund. The proposed FY2010-11 was reviewed. Transfers between the Wastewater Budget and the General Fund are noted. The town supports two treatment plants with capacities of 440,000 gpd flowing through Plant #1 and 660,000 gpd flowing through Plant #2. The collection system includes 20 pump stations, 34 miles of sewer main, and 900 manholes. There are 2,095 accounts (up 25 from last year) of mostly residential customers. The department has five full time employees. Annual volumes metered and billed for the most recent 12 months were 131.7 million gallons. Annual volumes treated at the plants for the 12 months ending April 2010 were 237.2 million gallons. Ongoing maintenance is required to keep the system functioning. The current sewer rate is $9.61 per 1,000 gallons. With usage of 70,000 gallons per year (typical single family house) the sewer bill is $673. There is a 3,000 gallon minimum usage. Total expenses proposed in the Wastewater FY10-11 Budget are $1.6 million which is down 3.2% from the current budget. Revenues (other than user fees) are down $103,000 due to a reduced transfer from the capacity fund to the sewer operating budget. Total volumes billed show a downward trend (135 million gallons budgeted versus 132 million gallons actual in the current budget). Volume in the proposed budget is 132 million gallons (2% drop from the FY 2009-10 budget). The rate increase is proposed at 59 cents (6.1% increase). For 70,000 gallons of usage the increase in dollar amount is $41 per year for a total bill of $714 versus $673. The downward trend in usage is due to wet weather (less water used), the economy, smaller families (less population in schools), and conservation (low flow fixtures and appliances). Debt service is 39% of total expenditures. Operations and maintenance are 15% of the budget. Salaries/benefits are 22% of the budget. Utilities, sludge disposal, and other expenses make up the remainder.  Mr. Frankenburg reviewed the itemized list of expenditures, noting the most significant increase is the debt service. Debt service for the Longmeadow and Bay Road projects is included in the budget--  the first payments for these projects. The debt includes principle and interest. Sludge disposal cost increased 6.4% because Chittenden Solid Waste District increased their charge to the town. Administrative expenses include billing, collection, and payroll done by town staff and charged back to the Wastewater Dept. The .4% change in salaries and benefits is due to overtime being down and efficient operations. Employees are using compensatory time instead of being paid time and one-half for overtime. A portion of the town’s total insurance premium is allocated to the Wastewater Budget. Mr. Frankenburg highlighted other anticipated decreases in budget items including plant system and SCADA maintenance, utilities, chemicals, testing, and legal expenses. The FY09-10 budget was $1,718,274. The proposed FY10-11 budget is $1,663,113 for a delta of $55,161.

 

There was discussion of the decrease in the plant maintenance budget figure. Peter Frankenburg noted the figure includes plant maintenance and capital improvements. The chemical containment room (capital improvement) is already built. Construction of a concrete pad  in the FY 2009-10 budget is expected to be completed by year end.  Plant maintenance is for a 24 hour, seven day a week operation. The only capital project planned for FY 2010-11 is to replace the emergency generator at Plant #1, which is estimated to cost $60,000. The current generator is more than 35 years old, and is not reliable.  Staff is proposing to use $12,000 from the Capital Improvement Fund which presently contains $53,000 to finance the first year of the expenditure and finance the remainder over the remaining four years of the five year loan.

 

Mr. Frankenburg reviewed revenues in the Wastewater Budget. User fees are up 3.7%, but volumes are down so the rate must be increased. Volume is two percent lower than in the current budget.   (135 million gallons budgeted in FY 2009-10 versus 132 million gallons in the 2010-11 proposed budget). Revenues also include interest and penalties (increase of $2,000), and special assessments (Shelburne Heights and Bay Road).

 

There was discussion of accepting septage at the plants. Shelburne’s rates are the second lowest in Chittenden County. Septage from marinas and RVs is not accepted due to the chemicals used. Paul Bohne recalled the grant for the upgrade to the plant required that the town accept septage. The pricing is competitive, but still high compared to the cost of operation. There has been pressure to lower the rate, but this would not cover the associated costs and the septage receipt would then operate at a loss. Transportation distance is the most significant factor. Haulers will go to the closest plant to discharge their loads. Shelburne’s plants took  material from another treatment plant this past year when it was under repair. Growth in town will help use excess capacity at the plants. There was continued discussion of usage. The national trend is decreased water and sewer flows. Al Gobeille expressed concern the rate increase may need to be greater than 6.1% to properly maintain the treatment plants. Paul Bohne noted there may be additional pressure next year to increase the budget. Tim Pudvar mentioned expanding the sewer service area. Gary von Stange recalled the Planning Commission discussed increasing the sewer district, but decided against doing this. Mr. von Stange supported having the Planning Commission reconsider the matter and to encourage more businesses to locate in Shelburne. Paul Bohne suggested the topic be discussed at the upcoming joint meeting with the Planning Commission. Peter Frankenburg said the rate is a balance between what is needed, but not necessarily overly conservative. Al Gobeille pointed out users pay the fee. If less volume is used then less revenue is generated, but the debt does not go away. The proper amount of revenue must be raised to pay debt and operate the plants properly. Chris Robinson noted the manhole rehab project has resulted in a reduction of groundwater infiltration/inflow coming into the system. Tim Pudvar asked about the town handling its own sludge disposal rather than working through Chittenden Solid Waste District. Chris Robinson noted having a voice as a group through CSWD is good. Also, CSWD is researching long term alternatives and technology for sludge disposal. CSWD is advocating municipal plants switch to anaerobic digestion to get Class A biosolids which are easier to dispose. Shelburne uses an aerobic digestion process. It may be necessary in the future to transfer sludge to an anaerobic facility for disposal.

 

Peter Frankenburg reviewed the status of debts for waste water projects as of June 2010 (total $7,978,000). As a comparison, in June 2009 the General Fund debt was $5 million. New users are charged  a one-time capacity fee when connecting to the system.  This compensates for the treatment capacity they will be utilizing. The rate is $16.31 per gallon.  The sewer capacity allocation fee for a single family residence is based on  210 gpd  and is $3,425. The money is used to pay debt service for capacity expansion to avoid sharp rate increases. The fund balance in the Sewer Capacity Fund (Aid in Expansion) fund at June 30, 2009 was $646,000 of which $300,000 will be withdrawn this year and $220,000 withdrawn in 2011. The amount withdrawn is intended to avoid sharp rate increases in a single year, while not totally depleting the fund.  A decision will then be needed as to how fast the fund should be replenished. The number of new homes added to the system this year is projected at five next year. Al Gobeille calculated if the usage continues to decline the number of new homes is not enough to offset rate increases. Peter Frankenburg reviewed projected rates over time (6 years), which show rate increases being necessary each year.

 

 

Peter Frankenburg reviewed the Water Budget (also an enterprise fund) which was approved by the Shelburne Water Commission. There are 2,258 users (up by 18 from last year) of which 2,067 are residential, 191 are commercial/industrial, and 69 are irrigation users. Volume is 152.8 million gallons. Champlain Water District is the supplier. The Water Dept. has three full time employees. The current water rate is $4.94 per 1,000 gallons. With 70,000 gallons annual use the cost is $346. The proposed FY2010-11 budget is $849,600 (down 3.8% from FY 2009-10) despite the CWD rate increase of 3%. Ten thousand dollars of the surplus fund balance, was applied in FY09-10, but none of the fund balance will be applied  in FY10-11. Ten housing units are projected to be connected in FY 2010-11 generating $9,000 in connection fees. Interest income decreased from $13,000 (in FY 2009-10)  to $8,000 (in FY 2010-11). Rent from wireless carriers on the water tank is $23,230. Annual sales are 153 million gallons which is a 3.8 % decrease from the FY 2009-10 budget. The proposed rate for FY10-11 is unchanged at $4.94 per 1,000 gallons. The valve replacement project is deferred (expenditures are level funded). Transfers to the Capital Project Fund are reduced. Capital projects include replacement of the utility truck, upgrade of the water tank on Spear Street, and reinforcement of the line in the Upper Meadows development. Water Commissioner, Peter Gadue, added the Upper Meadows project needs to be addressed immediately. Bernie Gagnon, Public Works Director, said there have been maintenance issues and water pressure issues at Upper Meadows. The water flow and ultimate objective of eliminating the pump station was explained. Gary von Stange noted the residents on Ridgefield Road have water pressure issues and would appreciate the town’s assistance in resolving the matter. There was discussion of using the Wake Robin water tank. Paul Bohne noted this will not help without a pump station or individual residences having pumps.

 

Gary von Stange asked if the water line from the cemetery to the Shelburnewood area is included in the list of capital projects. Peter Frankenburg confirmed the Falls Road reinforcement project is in the capital plan, but not scheduled this year. Paul Bohne said the project was estimated and put out to bid, but the bids exceeded the estimates so the project was delayed.

 

Peter Gadue said the Water Commission tried to maintain level funding and hopes more development occurs in town.

 

 

 

Chairman Roesler thanked all the applicants for applying to the DRB and the alternates for considering serving in that capacity. Gary von Stange suggested the term match the regular member terms. Paul Bohne said the Selectboard can specify the term or say the term is for one year ending when the regular member term ends.

 

Paul Bohne reported William Rathbone was not aware of what was due or when on his late father’s estate.

 

 

Postponed per request of Trinity Episcopal Church.

 

Paul Bohne explained in the effort to digitalize and preserve town records, staff is recommending those who utilize the records pay for the digitalization by depositing a portion of the fee into the reserve fund. Benefits will include more user friendly records, easier searches, and digitalized maps. The cost of the project is estimated at $131,000. There will be $60,000 withdrawn from the fund for the work ($17,000 was deposited into the fund this year). Colleen Haag said in the past the taxpayers paid for the record books and equipment (computers and such). Now the fee paid is based on the documents recorded. Equipment is included in the fee so the users pay for the system. The state wants only electronic records eventually. Gary von Stange asked if searches can be done remotely. Ms. Haag said eventually this will be possible. The system needs to be in place to allow municipalities to collect the fees for research of land records. Also, critical mass is needed to make the system cost effective.

 

 

 

Paul Bohne reported on the following:

Ø  Forms for the appointments of Town Health Officer and Deputy Health Officer must be signed by the Selectboard.

Ø  The beach project is complete and well done.

Ø  The Mt. Philo sidewalk is complete. Kudos to Bernie Gagnon for a smoothly run project.

Ø  Pipe slip lining and sealing of manholes is nearly complete.

 

Tim Pudvar asked about the Webster Road path. Paul Bohne said easements are being finalized. Some are in hand. Signatures are needed for others. The goal is to begin construction on the path in the fall.

 

Robert Roesler said he heard positive comments on the Mt. Philo sidewalk.

 

Gary von Stange expressed concern abut the timing process and substance of the legal opinion offered on 4/27/10 at 7 PM.

  

 

 

 

The regular meeting was adjourned and Executive Session convened at 8:46 p.m.

 

The Selectboard exited Executive Session at 9:17 p.m.

 

 

 

 

Accepted,

 

 

 

For the Shelburne Selectboard