Selectboard Meeting Notes – PACE Slows, Liquidated Damages Likely For Waste Water Treatment Project

A trio of Brattleboro Selectboard members kept town business flowing while simultaneously monitoring the scores of a Red Sox game Tuesday night.

The board heard that liquidated damages might be considered for the Waste Water Treatment Plant project delays, the proposed PACE program guidelines have lingering legal and accounting questions, and signs of climate change might be showing up during public participation.

This plus the latest scores and more, below.

Preliminaries

Selectboard Chair David Gartenstein and Donna Macomber were absent from Tuesday’s meeting, leaving Vice Chair Kate O’Connor in charge of the meeting. 

O’Connor noted that with only three members present at the meeting, all three needed to vote in favor for anything to pass. It seemed like a simple formality to mention, but it was the source of an intriguing situation later that night.

Interim Town Manager Patrick Moreland thanked the Department of Public Works and the company doing work on the I-91 bridge for helping to smooth busy traffic over the holiday weekend. The Elm Street bridge was open by Friday, he said, and they were able to keep four lanes of I-91 traffic open over the weekend.

There were no selectboard comments or committee reports.

Public Participation

Bob Leach wanted the board to know about changes he’s noticed in drainage and the damage it has done to his basement. He said that the last big rainstorm resulted in four feet of water in his basement. 

Leach has owned his home for the last 30 years. “I’ve never had a problem until the last couple of years.”

He said that storm water now comes down Canal Street and Washington Street, forming a lake in Champ’s restaurant’s lot. From there “it funnels down through my driveway and creates sinkholes near my house.” He said he noticed that drains on Birge and Canal Streets weren’t taking water.

“Something is changed and I don’t know how to get it fixed,” he said.  “I’ve called the Town. I don’t know where to go. Next time, Brooks Street will be an Elm Street.”

Kate O’Connor pointed out that the Director of Public Works was in the room and had heard everything.

Patrick Moreland wanted to point out that recent storms “have had quite a deluge.” He noted that the last storm dumped five inches on Brattleboro in an hour and a half, which “exceeds our capacity.” He said he wasn’t aware of any of the drainage systems not functioning.

“I’d buy that, but storms before it weren’t so bad and I had water in my basement,” said Leach.

Steve Barrett admitted he had a phone message from Leach and hadn’t yet returned it, but said that staff had spoken with him a number of times.

“These storms are larger, with more volume,” said Barrett. He said Brattleboro’s systems are antiquated, and there are more paved areas than ever before. He promised to meet up with Leach to discuss things further.

“Scoreless in the 6th. I’m Tim Johnson from WTSA,” said Tim Johnson of WTSA. He encouraged people to buy tickets for a Make a Wish charity dinner in which notable residents would be waiting tables, including two Selectboard members.

“John, Tim and I will be competing for tips,” added O’Connor.

Cor Trowbridge, Executive Director of BCTV, told the board that BCTV’s annual meeting was last week, but the Producer of the Year wasn’t in attendance. Trowbridge had tracked her down, however, at the Selectboard meeting behind the camera, and Maria Domingez was presented with her award live on one of the many television shows she helps to produce. 

Water and Sewer Commissioners

The Brattleboro Selectboard, acting as Water and Sewer Commissioners, received their monthly report from Hoyle Tanner regarding the status of the Waste Water Treatment Plant.

Steve Barrett and Hannah O’Connell of the Department of Public Works reported that as of September 30, 130% of the project time has elapsed. Barrett said the work was originally expected to be completed last February. 

There were some good things to report. Barrett told the board that the microturbine is operating and generating electricity, the plant is accepting septic which generates income, and the plant is running well.

“We had our 102nd job meeting last week. We want to close it out. We want to set a date,” he said.

John Allen took on the noble task of acting as Selectboard member and continuing the reporting on the Red Sox game. “Boston 1, Detroit zero.”

Barrett said there were still negotiations going on among the Town, engineers, and construction company.

At issue was a payment request from PC Construction July 31 indicating that 100% of the construction contract value has been completed. Hoyle Tanner disagreed, and did not recommend paying them until the status of outstanding work had been resolved.

A large change order is being reviewed. Change Order 10, an $84,000 credit, is expected to straighten some of this out, and PC Construction will subsequently revise their July payment request downward. 

Even so, Hoyle Tanner has created a new contract amendment for the Town of Brattleboro covering their added engineering costs resulting from the delays in construction. 

Barrett said that Brattleboro’s contract allows for consideration of liquidated damages of $1,500 per day. “We will be talking about liquidated damages and other costs.”

In other sewer news, Spring Tree Pump Station is 99% complete.  O’Connell told the board that the remaining work was mostly paperwork. The Department of Public Works was able to shave $451 from the budget with a change order request deleting a dedication plaque. The board voted 3-0 to accept the change order.

The board participated in a public hearing regarding the Black Mountain Road gravity sewer project. Lynette Whitney from the Agency of Natural Resources lead the hearing. 

Steve Barrett gave an introductory overview. He explained that there had been a prior public hearing on the project when it was assumed that the pump station would remain in operation; changing it to a gravity-fed design triggered this additional hearing. He said the goal is to again receive a Finding of No Significant Impact (FNSI). 

Construction is expected to begin in the spring of 2014 and be done by summer.  I-91, if anyone is curious, will not be dug up. It will be drilled under.

Barrett said the pump station was built in 1976 and most of the components have been in service ever since. It pumps through a 6 inch line from SIT and nearby homes and over the bridge overpass. 

“Upgrades made sense,” he said.  The project will add 1,250 feet of new sewer pipe, with 650 feet of it under 91. The pipe will come by VFW then connect to the existing line on Black Mountain Road.

Barrett said it was a big savings over time, eliminating maintenance and repair costs.

Whitney then opened the public hearing and took public comments. The only question was one asking what the hearing was about, which was explained. Patrick Moreland thanked DPW and Hoyle Tanner for being mindful of gravity fed systems.

Barrett said that it was a Brattleboro employee, Skip Fletcher at the DPW, who really pushed the idea.

“Didn’t we used to have a program to give $10 to people for good ideas,” asked John Allen.  “Still one to nothing,” he added.

“The public hearing is closed,” said Whitney. She said there were 30 days remaining for the public to comment via the agency’s website. “We don’t usually have many comments,” she admitted with a touch of sadness.

Kate O’Connor expected to adjourn from being Water and Sewer Commissioners and move on, but she found herself in a bind. David Schoales had left the room. There were but two Selectboard members, and three were needed for a motion to pass. “We’re stuck as Water and Sewer Commissioners,” she told John Allen.

They put their stuck condition to good use deciding to hear an update on the Waste Water Treatment Plant finances.

According to Finance Director John O’Connor, the project’s finances are still on track. $29,887,490.89 has been spent and $1,719,971.61 remains. “Pretty good shape,” he told them.

Schoales returned, and the three successfully voted to adjourn from being Water and Sewer Commissioners.

“We were stuck while you were away,” said Allen to Schoales.

Monthly Finance Report with John O’Connor

With 25% of the fiscal year complete, Brattleboro’s finances are right where our Finance Director expects them to be. John O’Connor gave the board his September report.

The General Fund expenditures are at 27.7% of the annual budget. Utility Fund expenditures are at 23.3% and Parking Fund expenditures are at 19.4% of their respective annual budgets.

A semi-annual insurance payment and annual payments to human service agencies explains the higher General Fund percentage, according to O’Connor.

The Police-Fire project has cost Brattleboro just over $20,000 so far.

Brattleboro has loaned out $4.13 million and has just over $457,000 to grant or loan out from program income.

Brattleboro has 41 active grants underway.

Delinquent taxes had increased in the past year over 2012, but were “still in the range of norm.”

Kate O’Connor asked if a Federal default would have any impact on the the Town.

John O’Connor answered that federal funds could be reduced, and interest rates for borrowing could go up. “The Police-Fire facility project rate could go up if they default.”

Patrick Moreland said the shutdown was already having an impact. An environmental review for part of the Police-Fire facility project is held up until the EPA re-opens.

David Schoales said that a town energy report was similarly held up by a lack of Department of Energy employees at the moment.

PACE Program Discussion

You may recall that the PACE program is designed for participating property owners to get funding for energy improvements to their properties that get paid back via additions to their municipal tax bills. The program is administered by part of Efficiency Vermont (VEIC) and was approved by Representative Town Meeting.

The Town of Brattleboro has been considering becoming such a district, but must adopt guidelines for the program in order for VEIC to agree to manage the program. The town isn’t sure they can agree to the guidelines as written, though.

Town Attorney Bob Fisher and Finance Director John O’Connor were on hand to let the board know that significant legal and accounting issues have arisen from the proposed guidelines.

“We have concerns over details,” said Attorney Fisher. “We suggest not signing this.”

Fisher said that the documents contained references to the Town bonding or borrowing for the program. He said the program was advertised to the Town as cost-free with no administration required, but the documents say the Town funds the district through bonds and loans.

“Our objection has to do with the recitation,” he said. “The Town does not do bonding.”

Fisher said the accounting is not clear. “VEIC has told Brattleboro the special assessment is not carried on the Town books.  John O’Connor noted that special assessments districts need to show money in and money out, as well as periodic repayments.

Fisher and O’Connor suggest wording changes saying that VEIC will be responsible for funding and disbursement.

Fisher had additional concerns and questions about the proposed agreement language. The guidelines mention “advancing funds on behalf of the Municipality,” but what this means operationally is unclear. Fisher also wondered about collection of non-payments and how this would be accounted for in the books.

He noted that VEIC is unlikely to agree to make changes to their program for Brattleboro. “The language is written to apply to all towns in Vermont.”

Fisher said the Town could create a PACE program ourselves without them if we can’t agree to their program guidelines, but that would place additional burdens on the Town.

“The town isn’t considering taking over the program,” said David Schoales, “so let’s take it off the table.” he said there was no requirement for the town to bond. “What’s the liability?”

“We’re trying to follow the money from investors to bank to VEIC,” said Fisher. “Will it be on town books? VEIC says funds go directly to a homeowner and the property owner is liable to the Town. In our view, the money needs to come to the Town, then to the property owner and back up the chain.” 

He continued. “What the town is doing is loaning it’s enforcement authority to enforce if folks don’t pay the special assessment taxes back. In order to enforce it, something has to go from the town to the entity gaining from the special assessment. We don’t know how PACE is carried on our books, and don’t see how we can enforce if we haven’t given anything.”

“Why haven’t other towns picked up on this?” asked John Allen.

“Some are smaller towns,” said Fisher. He said he would check with other town attorneys. “The problems would come if someone didn’t pay.”

“Is there a huge demand for this program?” asked Allen. Schoales said nearly 60 people came to a question and answer session, including many contractors.

“Why can’t they just get a line of credit?” asked Allen.

Schoales said it dovetailed with other energy saving programs and the money could go to people with less equity in their homes. “The money goes to local builders and suppliers. It’s consistent with our way. It’s an economic stimulus, and should have some urgency.”

Kate O’Connor asked if there was a date for when these issues would be resolved. 

Fisher recommended against signing the documents, and suggested waiting to see how other towns deal with defaults.

He said he would hate to see a homeowner “prevail on the argument that the PACE assessment is not by definition a special assessment as defined by the statute, and thus have the town fail in its agreement with VEIC to enforce the tax lien.”

Brattleboro will continue to work with VEIC, ten to twelve other participating towns, auditors, and Vermont’s bond counsel Paul Guiliani to find satisfactory answers to their concerns, said Moreland.

“With different language and a better flow of money, we could erase some of our reservations,” said Fisher.

“One to zero, bottom of the eighth, Boston ahead,” said Allen.

Windham-Windsor Housing Trust VCDP Scattered Site Grant

The Brattleboro Selectboard adopted a resolution in support of the Windham-Windsor Housing Trust scattered site rehabilitation loan program. The partnership with the Town had been discussed at previous meetings, and the resolution formalizes the relationship among parties.

Specifically, the Town of Brattleboro will be the applicant to the Vermont Community Development Program. The Windham-Windsor Housing Trust will be a sub-grantee and will manage the program of loans.

Michelle Morris was on hand to witness the adoption and explain the program. She said it would begin next April and run for two years. She expected 60 homes in the two counties to get rehabs, and homeowners to receive purchase counseling. The grant is for $1 million over 2 years.”

Moreland said John O’Connor had prior experience working with the organization. O’Connor said they are excellent to work with. They do well with audits and communicate well with towns. He felt this partnership should take little staff time.

Kate O’Connor said she wanted to disclose that she’s on the board that will be funding the program and that she plans to recuse herself at those meetings so she can vote tonight.

“Is this for individual homeowners? Not rehabbing structures to rent out?” asked John Allen. Morris said yes.

Allen wondered if they should have all five board members for the vote. Kate O’Connor said that David Gartenstein knew it was on the agenda and had no objections to the board voting.

“I’d like to talk with Russell Rice,” said Schoales, adding “I can’t imagine we wouldn’t approve it.”

“I’d approve it,” suggested Moreland. “This is a loan program to make home improvements. It’s a program worth supporting.”

They approved it 3-0.

Washington Street Retaining Wall Grant

The Vermont Agency of Transportation gave the town a $164,700 grant to help pay for the retaining wall and sidewalk along Washington Street in Brattleboro. 

The repair project was planned for FY15, but the wall failed ahead of schedule forcing a change in plans.

The grant was received earlier in the year, but it wasn’t formally accepted and appropriated until Tuesday evening by the Selectboard.

“It was an emergency situation,” said Hannah O’Connell. She said Brattleboro will be required to supply a 10% match for the grant – $18,300 – and that work would begin soon. She said the cement blocks were already on site at the corner of Canal and Washington Street.

“I don’t know how you are going to do it,” said John Allen.

O’Connell said Brattleboro would be the general contractor and hire Renault Bros. to help with some of the work and equipment. She said they expect to be done in 2-3 weeks if all goes well.

“We’re trying to beat the weather,” said Steve Barrett.

Bulletproof Vest Grant

The Brattleboro Selectboard accepted just over $1,500 from the Bureau of Justice Assistance to help the Brattleboro Police buy four new National Institute of Justice-compliant armored vests.

HSGP Terrorism Prevention Grant Application

Terrorism prevention was postponed to a future meeting.

Community Justice Grant

To help with offender re-entry programs, the Brattleboro Community Justice Center applied for and received a $12,500 grant from the Vermont Department of Corrections. The board approved of accepting the money and spending it thusly.

Moreland said it was an extension of an existing grant.

Second Reading and Public Hearing – Parking Changes on Linden Street

The parking meters along Linden Street were always meant to be temporary. The selectboard held a second reading and public hearing for an ordinance to return things to the way they were before the State office building construction began. The public said nothing for them to hear at the hearing, and the return to normal was approved by the board.

Second Reading and Public Hearing – Parking Changes on Elliot Street

Businesses at 148 and 154 Elliot Street requested that the time allowed for parking be increased from the current twenty minute limit. The board gave a second reading of the proposed changes as well as the required public hearing in which no public said anything, and voted in favor of the changes to the ordinance to take away limits at those locations. This shortens the limited-time parking area on Elliot Street.

Tax Collector Appointment

The Brattleboro Selectboard appointed Patrick Moreland to serve as collector of delinquent taxes. 

“Our other one went to Missouri,” said Allen. (Barb Sondag was our former collector.)

Moreland said it is a role the Town Manager has fulfilled for generations.

“A thankless task,” said Kate O’Connor.

Committee Vacancies

Tori Managan resigned from the Energy Committee, opening up a space for a new volunteer on the committee. You can apply for this and other vacancies on the town’s website www.brattleboro.org or by contacting the Town Manager’s Office in the Municipal Center on Main Street. Apply by November 12 at 5 p.m. for the Energy Committee.

Consider volunteering your expertise to the Agricultural Advisory Board, Arts Committee, Citizen Police Communications Committee, Development Review Board (alternate), Energy Committee, Honor Roll Committee, Inspector of Lumber Shingles and Wood, Senior Solutions Representative, SEVCA Representative, Town Service Officer, and/or Tree Advisory Committee.

Petition for Pole and Wire

Fairpoint requested and received permission to add a pole and wires along Black Mountain Road. The current pole near the new drive to Buttonwood Estates will be removed and a new pole on the east side of the drive will be installed.

Gary King of the Department of Public Works endorses their request, saying that the new pole position is further down the road and away from Town utilities.

Game Over

The board hoped to finish before the game was over, but lost to the Red Sox in the final moments of the meeting while David Schoales was reading the list of upcoming meetings.

“And the Red Sox won. It’s official,” said John Allen. “I move to adjourn. Go Red Sox.”

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