Selectboard Meeting Minutes

TOWN OF SHELBURNE SELECTBOARD MINUTES OF MEETING APRIL 09, 2002 MEMBERS PRESENT: Ken Albert, Chairman\; Steve Dates, Norm Silcox, George Faris. (Steve Good was absent.) STAFF PRESENT: Paul Bohne, Town Manager\; Peter Frankenburg, Financial Officer, David Rathburn, Chief Operator, Wastewater Treatment OTHERS PRESENT: Bill White, Chris Gold, Dave Rathburn, Sue Davis, Shelburne News. 1. EXECUTIVE SESSION The Selectboard entered Executive Session at 6 p.m. for the purpose of discussing personnel matters, and invited the Town Manager and Rick Peterson, Chair of the Planning Commission to attend. The Board interviewed Herb Shartle, Amy Gregory, Rob Donohue and David Hillman. Executive Session was adjourned at 7:55 p.m. 2. CALL TO ORDER Mr. Albert, Chairman, called the meeting to order at 8:00 p.m. 3. APPROVAL OF AGENDA There were no changes to the agenda. 4. APPROVAL OF MINUTES MOTION by Mr. Dates, seconded by Mr. Faris to approve the minutes of 03/25/02 and 03/26/02 as written. VOTE: unanimous (4-0)\; motion carried. 5. CITIZEN PARTICIPATION There were no comments. 6. RELIEF FROM DELINQUENT TAX PENATLY & INTEREST Mr. Bohne introduced Chris Gold, Climb High representative. Mr. Gold explained that a mistake was made and he was seeking abatement of the penalty on a late payment of property taxes. MOTION by Mr. Dates, seconded by Mr. Silcox, to grant relief from penalty in the amount of $1,049 for Climb High for property located at 135 Northside Drive and 2438 Shelburne Road, account #156006000, 156007000, and 2131861000. DISCUSSION: Mr. Dates noted the letter received addressed relief for penalty only, not interest. Mr. Gold felt it was appropriate for the Town to charge interest for late payments. Mr. Gold explained his intent to deliver a tax payment check to the Town before leaving the country on a trip, but the check was in his pocket and he did not discover it until it was too late. Mr. Dates reviewed a recent VLTC conference regarding taxes. It was noted that a town cannot waive penalties without waiving interest as well. Mr. Bohne said that staff would research the issue. There was brief discussion of the Vermont State Statutes versus the Shelburne Town Charter, situations that have been recognized as allowable excuses for late property tax payments (must be life threatening), and the fact that Climb High was late two years ago as well. Mr. Gold pointed out his predecessor was responsible for the previous late property tax payment. Mr. Gold assured he took the responsibility of working in pubic accounting seriously and agreed payments should be made on time and under the agreed upon terms. The amount of penalty was a large amount for Climb High. Mr. Gold said he paid the interest in “good faith”, but feels the penalty should be abated. CALL THE QUESTION by Mr. Albert. Discussion ceased. VOTE: 0 ayes, 4 nays (Albert, Silcox, Faris, Dates)\; motion did not carry. Mr. Bohne reviewed that a letter received from George Ewins expressed a willingness to pay the interest if the Board waived penalties on a late property tax payment. Mr. Silcox asked if the interest was already paid. Mr. Bohne did not know. MOTION by Mr. Faris, seconded by Mr. Dates, to refund penalty in the amount of $388.88 for George D. Ewins for property located at 141 Pheasant Hill Road, account #0940112000. VOTE: 0 ayes, 4 nays (Albert, Silcox, Faris, Dates)\; motion did not carry. Mr. Dates asked staff to clarify Vermont State Statutes and the Shelburne Town Charter. 7. REAPPOINTMENTS AND APPOINTMENTS TO BOARDS AND COMMISSIONS MOTION by Mr. Faris, seconded by Mr. Silcox, to approve the list of reappointments and appointments to boards and commissions as presented in a Selectboard Appointments memo, dated 03/26/02. VOTE: unanimous (4-0)\; motion carried. MOTION by Mr. Dates, seconded by Mr. Silcox, to appoint Herb Shartle to the Planning Commission position vacated by George Faris through 2004. DISCUSSION: Mr. Faris reviewed Mr. Shartle’s qualifications for the Planning Commission position. VOTE: unanimous (4-0)\; motion carried. 8. REVENUE TRANSFER TO SHELBURNE COMMUNITY SCHOOL Mr. Bohne reviewed a proposal to transfer General Fund revenue from the Town to the Shelburne Community School as a mechanism to reduce the impact of school taxes due to Act 60. It would take a Town vote to amend the Town budget, but there is a tight time frame to warn and hold a vote. A question remains regarding amending a submitted local school board budget. School board budgets were due July 1st, said Mr. Bohne. There was lengthy discussion regarding the number of votes required (one by the Selectboard to adjust the municipal tax rate and a separate vote by the School Board to adjust the school tax rate), the legality of re-voting the Town budget downward before the July 1st School budget due date, and the methodology for revenue transfers. Mr. Dates asked if a valuation of the Town Center facility was done. Mr. Bohne replied no and reiterated that the transfer would require a warning the last week in April for a vote the last week in May. There was further discussion regarding a proposal to purchase the Town Center building this year, current dialog in the Legislature regarding the proposed Marron-Livingston Bill which would exclude alternative revenue options for reducing Act 60 impacts for future years, a financial analysis on the impact a revenue transfer would have on the Shelburne municipal and school tax rates, and concerns on the impact on property tax “prebates” and income sensitivity. Mr. Silcox noted that the tax savings would amount to $10-$20 per household. Furthermore, there was a concern that only 39% of residents would receive a “prebate”. Mr. Faris requested staff provide a financial analysis showing benefits to the Town and School. Mr. Silcox said that Steve Morris had volunteered to do an analysis. Mr. Faris suggested estimating a “fair market rent” as an option to purchasing. Mr. Bohne pointed out only a one-year’s benefit could be done. Mr. Silcox commented that the value of the renovated Town Center building was much greater than before the renovation. Citizens should not be asked to pay (for the building) twice. There was discussion regarding “legal” cost shifting of revenues, options that included not doing anything, gathering information by a May 31st date, or proceeding with the vote by May 31st, holding a public session and presenting the information, determining a value on the building minus the Town’s $4 million investment, and having Steve Morris present an analysis of cost benefits. 9. LIQUOR LICENSE RENEWALS Mr. Bohne reviewed that two liquor license renewals were received. Regarding the Asian Pearl Thai violation, the State Liquor Board reported the restaurant took a voluntary 30-day suspension of their liquor license. The Board signed liquor license renewals for Galipeau’s and Kwiniaska Golf Course. 10. DRAFT WATER BUDGET and SEWER BUDGET FY 2003 (#11) Mr. Bohne reported that a water rate increase might be recommended for Selectboard approval at the end of the month. If approved, a rate increase would be reflected in the next water bills. Mr. Frankenburg explained the proposed draft Sewer budget for FY02/03 as outlined in a memo from the Financial Office. A total sewer revenue increase of 44.9% and a 4.9% increase in the sewer rate were projected. Mr. Frankenburg noted that system sales were declining and next year’s gallons would be set using those numbers. There was discussion of population impacts on trends, commercial water use versus residential use, Champlain Water District trends, which were flat at this time, the projected number of 149,000 gallons, and a three-step debt service repayment schedule. Mr. Rathburn explained the current sludge processing procedure at Treatment Plant #2, and noted that electricity costs at the plant were $8,000-$9,000 per year. Trucking costs to Burlington have been eliminated. Mr. Silcox asked if the source of cadmium in the sludge had been discovered. Mr. Rathburn explained that it was hard to test for a source. It could be that cadmium was concentrating in the sludge. Plant #1 did not have the problem and the sludge from Plant #1 and Plant #2 was being mixed to reduce the cadmium levels. Mr. Silcox asked the cost to replace the UV bulbs. Mr. Rathburn replied that UV bulbs were pro-rated at a cost of $56 per bulb. There were 200 bulbs in the plant and each bulb will have been replaced once this year at the rate of use. Mr. Bohne noted that the vendor was exploring other manufacturers for bulb purchases. Mr. Frankenburg reported bond amounts were still being finalized. The loan repayment was set to start two years after initial operation. Mr. Bohne pointed out that the cost of re-locating the sewer lines on Route 7 had not been anticipated. Mr. Rathburn noted that $25,000 was added to the budget to replace 390 feet of clay pipe line in front of the Shelburne Museum. Mr. Frankenburg said that wholesale rate charge increase of 12 percent by the Champlain Water District as well as declining levels of consumption would impact the water rate. At the next Selectboard meeting a projection of 10-20 year debt service and a finalized rate would be presented. Mr. Bohne explained that the Route 7 project would go out to bid later this year. There were capital needs in the Water budget that might use up the fund balance, which was at $600,000 currently. A vote might be recommended this fall, said Mr. Bohne. Mr. Silcox asked if Shelburne might be able to team up with South Burlington regarding the Route 7 project. Mr. Bohne replied that timing-wise the projects would be sequential and there was no reason that a contractor could not move from one project to another. Mr. Silcox reported Rich Rinaldo said the Route 7 right-of-way was complete in South Burlington, with the exception of seven businesses. Also, Jim Condos has said that South Burlington supported the Shelburne Route 7 project. There was no new date regarding a court trial at this time. 11. SEWER ALLOCATION - Monroe Brook Woods Mr. Bohne reviewed a request for sewer allocation from Monroe Brook Woods, also known as Gardener’s Intervale Partnership, for a pre-existing lot. Mr. Dates asked for clarification regarding Sewer Ordinance language which states “pre-existing homes”, not lots. Mr. Bohne explained that there was a section of the ordinance that dealt with pre-existing lots with a set aside allocation of 12,600 gallons at Plant #2. Staff would research the issue, said Mr. Bohne. Mr. Silcox asked that the issue be added to the April 15th meeting agenda. 12. MANAGER’S REPORT The Selectboard signed staff birthday cards and a get-well card for Steve Good. Mr. Bohne reported that the District Environmental Commission has scheduled a hearing on 04/30/02, 6:00 p.m. at the Town Center regarding a Vermont Zen Center application. 13. BOARD CONCERNS Mr. Silcox reported that a motion by the Selectboard was required to add the Bay Road Bridge and LaPlatte Bridge projects to the CCMPO TIP. Also, a letter from the Town Manager in support of the projects was requested. MOTION by Mr. Faris, seconded by Mr. Dates to request that the Bay Road Bridge and the LaPlatte Bridge projects be added to the CCMPO TIP. VOTE: unanimous (4-0)\; motion carried. Mr. Dates volunteered to join the Trustee Committee. The Selectboard appointment as the School Board Liaison was tabled. 14. ADJOURNMENT MOTION by Mr. Dates, seconded by Mr. Silcox, to adjourn the meeting. VOTE: unanimous (4-0)\; motion carried. The meeting adjourned at 9:45 p.m. Minutes respectfully submitted by Kathlyn Furr, Recording Secretary. THESE MINUTES ARE SUBJECT TO CORRECTION BY THE SHELBURNE SELECTBOARD. CHANGES, IF ANY, WILL BE RECORDED IN THE MINUTES OF THE NEXT MEETING OF THE BOARD. Approved, Kenneth Albert, Chairman