Board of Selectmen, May 19, 2014

Chairman Renzoni opened the meeting at 6:00PM.  The Board participated in the Pledge of Allegiance.

• Licenses and Permits

Sel. Kurtz arrived at 6:04PM.

Motion by Sel. Lavigne, seconded by Sel. Ferguson, it was VOTED 4-0 TO APPROVE A COMMON VICTUALER LICENSE TO BARRY TUPPER  ON BEHALF OF PACK 46 CUBSCOUTS FOR A SNACK SHACK ON MONDAY, MAY 26, 2014 AT THE CONGREGATIONAL CHURCH DURING THE MEMORIAL DAY PARADE FROM 10AM-2PM AS PRESENTED.

Sel. O’Brien arrived at 6:06PM.

Motion by Sel. Ferguson, seconded by Sel. Lavigne, it was UNANIMOUSLY VOTED TO AUTHORIZE THE TOWN MANAGER TO APPROVE ANY LICENSES OR PERMITS FOR THE MEMORIAL DAY PARADE ON MONDAY, MAY 26, 2014 AS PRESENTED.

• Review of Town Meeting Warrant Articles & Motions

Sel. Lavigne said he did not want the town to push funding OPEB off another year.  He said the voters should be able to decide.  It is the right thing to do.  Sel. Ferguson concurred adding that the funding needs to happen so that the town does not pass the funding along to future Boards.  Sel. O’Brien agreed that the funding makes sense but will it draw out the length of Town Meeting to make and discuss the amendment.

Sel. Kurtz said the town should honor its obligation to fund this retirement fund.  Sel. Lavigne said the Board has been playing this game with the Finance Committee for several years and should not have this discussion 20 minutes before Town Meeting.  It was suggested that maybe the Finance Committee would consider funding less of the OPEB than the recommended budget of $300,000 as some type of compromise.   

The Town Manager said that the Moderator must approve amendments that come from Town Meeting floor.  Town Counsel said it is the purview of the Moderator to determine this jurisdictional matter.  An appropriation is not subject to approval by the Attorney General’s office.

The Chairman said there are members of the Finance Committee who are on board with the library and EDC funding.  Sel. O’Brien said he was not in support of the $3500 budget to the EDC.  Sel. Lavigne said the EDC is a different organization than when Sel. O’Brien served on it, but would be willing to make a motion to reopen discussion on the EDC funding to hear Sel. O’Brien’s thoughts on the subject.  Sel. O’Brien said there was no need to revote the issue.

Sel. Ferguson said he would like to discuss Warrant Article 15: Gas Conversion at Dawson School.  Sel. Ferguson said he would like the District to pay the first $25,000 of the $75,000 conversion.  This is what the Regional Agreement stipulates is the District’s share.  Ultimately, the District will share in the rewards of cheaper fuel costs.

Chairman Renzoni asked if there was support for Sel. Ferguson’s suggestion.  Sel. O’Brien said he felt Sel. Ferguson’s suggestion was a larger issue for the District since other towns take on these types of projects and do not get this type of funding from the District.  It would be precedent setting for the District to agree to this type of funding.  This issue should have been settled with the District months ago.

The Board joined the Finance Committee at 6:20PM.

Chairman Renzoni presented amendments the Board would like to make to the library and EDC line items.  He said the Board felt that this was a small amount of money that was not worth fighting over on town meeting floor.  He said the library funding is necessary so the library can apply for grant money and get State certification.  This money is necessary to fund basic library book buying.  The Friends of the Gale Free Library is not meant to be the sole funding source for book purchasing; it is only meant to provide supplemental money to the library budget.  Sel. Kurtz spoke to funding $3,500 to the EDC for business outreach and marketing efforts.  The EDC will use the money to implement a new buy local program and money is needed for publicity.  Sel. Lavigne said this is a newly charged EDC that is not just trying to get new business to town but also support existing businesses.  $3,500 is small money for these programs.  The Committee will sit stagnant without this funding.

Finance Committee member Paul Challenger said he agreed that it is not money worth fighting over.  However, no one from the Board came and spoke to the Finance Committee during budget season.  It is small change and not worth fighting over on town meeting floor.  He said he spoke for the Finance Committee and they are comfortable with the budget decisions they made.  Chairman Renzoni said the Board would present their amendment and arguments to the voters on Town Meeting floor.

Chairman Renzoni discussed why funding OPEB in the budget is important.  He asked the Finance Committee to reconsider their decision to fund the town’s $300,000 contribution.  He said the town has the money to make the contribution now.  He provided the example that former Town Manager Brian Bullock will draw 2.1M in retirement benefits over his retirement and the town needs to fund its OPEB obligation.

Finance Committee member Al Berg said OPEB is just a number and the Town of Holden is not going out of business anytime soon.  There will be many more years to make OPEB payments.  These expenses belong to the tax payers 10-15-20 years down the road.  There are intervening generations to pay for this.  Chairman Renzoni commented that the town owns these employees who are working now and will retire in the future.

Sel. Ferguson said he felt the Board and the Finance Committee are discussing the same funding issues as last year: library, EDC and OPEB.  He asked if the Finance Committee would consider a funding compromise.  $150,000?  It is a moral responsibility.  Actuaries have determined that the town is underfunded in this area.  He asked that the Finance Committee not pass the baton down to future generations.  The town is knowingly falling behind.  Mr. Berg responded that the Finance Committee was willing to compromise and fund the library and EDC line items.  OPEB funding is a long conversation for another time that is more reasoned.

Sel. O’Brien agreed that it is not productive to have arguments between the Selectmen and the Finance Committee on the town meeting floor.  He supported funding the lesser amount and voting together.

Al Berg again said no one from the Board attended Finance Committee budget discussion on OPEB.  No law or regulation exists regarding OPEB funding.  He agreed that discussion needs to happen; just not now.

Sel. Lavigne agreed it is important to determine a pay as you go plan and, while there might not be a law to fund it, that is not a reason not to do it.  He asked that the Finance Committee fund OPEB at some level.  The town has the money now and should take the responsible step now.  The Selectmen can charge the Town Manager to come up with a funding mechanism for the future.

It was agreed to have the Board return to their regular meeting and allow the Finance Committee time for discussion.  The Vice-Chairman of the Selectmen will check back in with the Finance Committee in ten minutes for an update.  Before the Selectmen left the meeting, Sel. Ferguson suggested the Finance Committee fund one-third or $100,000 of the OPEB obligation.  No one from the Finance Committee offered to discuss the suggestion.  The Selectmen returned to their regular meeting at 6:36PM.  

Chairman Renzoni said funding OPEB is going to be a hard sell on Town Meeting floor.

Sel. O’Brien said that going forward the Board should try to have a more engaged relationship with the Finance Committee.   

Chairman Renzoni mentioned that the Board attended Finance Committee meetings during the previous budget cycle and were informed by the Finance Committee that they could observe but were not allowed to speak during the meetings.

Chairman Renzoni said the $300,000 budgeted this year will be available next year from free cash.  

Sel. Kurtz suggested taking $300,000 out of free cash now to fund OPEB and then repay the free cash money next year with the money earmarked in this year’s budget.  This amendment would be subject to the approval of town meeting appropriation.

Sel. O’Brien said this was not the time to do this and encouraged the Board to continue to work with the Finance Committee.

The Board discussed making a motion to drop the OPEB amendment and take the funding for library and EDC was discussed, but an actual motion was not made.

Vice-Chairman O’Brien left the meeting to revisit the Finance Committee meeting at 6:44PM.

Ms. Kelly said an actuarial consultant would be working with the town and could aid in creating an OPEB funding plan.

Sel. O’Brien returned to the meeting and reported that the Finance Committee would not rebut the Library and EDC line items if OPEB funding is dropped.

By silent vote, the majority of the Board determined that the Selectmen did not want to support the offer by the Finance Committee.  The Board agreed to present all of their amendments for approval on Town Meeting floor.

• Recess to Annual Town Meeting

• Adjournment