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HomeMy WebLinkAboutMinutes - 07/28/2011IMA Study Group Meeting Mansfield — Foxborough- Norton July 28, 2011 6:OOPM (At Mansfield Town Hall) Members: Mansfield: Lee Azinheira George Dentino Foxborough: Leo Potter Norton Duane Knapp Diane McElligott Also in Attendance: Bill Ross, Mansfield Town Manager David Young, CDM Fran Yanuskiewicz, WSE Steven Wiseman, Norton W &S Jay Barrows, State Representative Bob Bell, AECOM Richard Pacella, Foxborough W &S Discussions: The following is a brief summary of discussions: Jay Barrows began the meeting by indicating that the two representatives from each community will be given preference in the discussions at these meetings and that other attendees while welcome should really speak through their appointed representative. That way positions from the community are put forth versus individual opinions. 1. Effluent Recharge Sites • Nothing new to report since Mansfield provided comments on land purchase agreement to Reilly's attorney. Bill Ross will follow up on this item. 2. Draft Expansion Project Implementation Schedule • David Young distributed an implementation schedule for review and discussion. Schedule calls for District to begin in July 2012; expansion and upgrade design to start in January 2013; construction start in December 2014; and facility operation to begin in May 2017. Several other interim dates are noted (schedule attached). r-1 on Cz a General agreement with schedule presented and so CDM will prepare a draft cash flow around that schedule for discussion at next meeting. There was some discussion about when the Norton PILOT might begin based on this schedule but no resolution. 3. Discussion of Norton PILOT Proposal to be incorporated into Draft of Regional District Agreement (3- 23 -11) • Main topic of discussion was proposed Norton Payment in Lieu of Taxes (PILOT). Below is a summary of the discussion items brought forth: • Jay Barrows noted that all sides are very close to an agreement and we need to resolve this one issue. Appears to be conceptual support for PILOT but at a reasonable price. He believes Foxborough and Mansfield are willing to accept a PILOT of $200,000 gross payment to Norton at a fair index. • Diane McElligott indicated that Norton had to have a $200,000 net payment in order to make this program work for them and she would like to see a 5 percent increase annually plus CPI applied. • George Dentino and others discussed there needs to be an understanding of "value" and how the PILOT amount is determined. Norton representatives indicated others can argue how the amount is calculated as long as they receive $200,000 gross payment initially and then appropriately indexed. • David Young suggested moving the PILOT payment start date up to be the year the construction starts for the infiltration basins (2014) instead of waiting till the construction is fully completed. That would provide a couple additional years of payment. Several liked the idea and some offered other potential upfront payment methods but no resolution. • Mansfield had presented an alternate PILOT calculation at the July P meeting which resulted in a $91,000 PILOT proposal. Norton representatives had indicated no other proposals had been received to their but did not accept this methodology or the compromise to $200,000 which is really a $300,000 gross payment. • Bill Ross noted that the current request from Norton for a $200,000 net PILOT with a 5 percent annual increase plus CPI increase applied would result in a payment of over $900,000 in a fairly short period. Mansfield would not support. • David Young noted each community needs to evaluate the increase in their overall annual payments to implement their portion of the wastewater expansion program. Foxborough and Norton have significant infrastructure costs to add onto the treatment plant costs. The difference being argued about now in this PILOT is minimal compared to those costs. All have previously agreed the District approach is the cheapest means to providing wastewater treatment capacity in each community. • Lee Azinheira noted all three communities have come very far in pulling this agreement together and the difference in costs should be evaluated carefully versus the next best option for each community. He also pointed out that the treatment plant Phase 2 upgrade and the conversion to the Bardenpho process for nitrogen removal are givens. Thus the difference in N costs is even less. a o Jay Barrows suggested each community explore options for indexing the $200,000 gross payment for the next meeting. 4. Schedule to Complete Agreement • Must resolve Norton PILOT first. David Young indicated that past meeting minutes are being worked on. Minutes from last three meetings have been distributed. David Young will also prepare a draft cash flow around schedule discussed for the next meeting. Future Meetings: August 22nd at 6 pm. (Mansfield Town Hall) (subsequently postponed till August 24th) Adjourn 7:30 pm Minutes Approved 11 -21 -11 W, I