The Sky Is Not Falling (Norwich ListServ)

It takes a lot longer to write these things than it does to read them, so believe me when I say I really hope this is the last time I post on this tower. 

Based on the January 29th memo by our town manager, the decision on Article 34 boils down to some fairly straightforward math.  All my figures below come from the table at the bottom of page 2 of that memo, so you may want to print out that page. 

"Yes" on Article 34 authorizes the Selectboard to raise $275,000 through bonds to build and own this tower. 

This amount is more than adequate to cover the tower development and construction costs -- an estimated $215,000 according to the town website memo. ($332,813 minus $117,813 = $215,000) 

The town also faces equipment and refitting costs for our fire, police and public works departments which we must pay for whether we build this tower or VTel builds it.  According to the same outline from the town website, these costs are estimated at about $196,000 total ($470,600 - $275,000). 

A year ago, the town received an AFG grant for around $50,000 to cover fire communications equipment. ($470,600 - $420,048)  The performance period for this grant was February 23, 2013, but our TM has secured a six-month extension to August 23rd and suggests a second six-month extension may be possible.

Last December we received an HSGP grant for about $87,000 to cover police communications equipment. ($420,048 - $332,813)  The "performance period" for this grant ends on June 30, 2013.  According to our TM, this deadline is set in stone and we simply lose the money if we haven't "performed" by that date.

If the town passes Article 34 and can retain both grants, the town still needs to come up with about $58,000 ($332,813 - $275,000) to cover equipment and refitting.

Now our TM insists we will lose the HSGP grant if Article 34 passes because we will fail to "perform" by June 30th.  Our TM thinks we can extend the AFG grant into 2014 so the risk of losing that grant is much lower. 

So, if Article 34 passes, and, as our TM insists, we'll lose the HSGP grant, we need to come up with an additional $145,048. ($420,048 - $275,000)

How?

Just last week, our TM asked the Selectboard to approve a lease-purchase agreement with Lake Sunapee Bank for $120,000 to cover these same costs.  Would Lake Sunapee Bank accept a $145,048 lease-purchase sum?   If so, between the bond and a tweak to the TM's proposed lease-purchase with Lake Sunapee Bank, we've covered the entire project. 

No second bond or Special Town Meeting necessary.

-    -    -

On the other hand, "No" on Article 34 means the town has no money available to build this tower, so we must rely on VTel to do it for us. 

If we retain the grants already awarded for fire and police equipment then the town must come up with $117,813 to cover these remaining equipment and refitting costs.  As designed, the proposed Lake Sunapee Bank lease-purchase would cover this amount. 

But what if VTel fails to "perform" by June 30th and we lose the HSGP grant anyway?  The town must then come up with about $206,000 ($117,813 + $87,000). 

Will Lake Sunapee Bank go for that?  In that case, we really might need a second bond or Special Town Meeting.

So it may all come down to whether VTel can "perform" by June 30th. 

Can they?

If VTel had filed their required 248A 45-day pre-application notice with the Public Service Board on March 1, they would be able to file the application itself on April 15th.  (30 VSA 248a (e))

Our Town Manager has estimated it will take five months from the date of application to get a 248A "Certificate of Public Good."  Even if this includes the 45-day pre-application notice, we're into August, well beyond the HSGP June 30th deadline.

Add to this Steve Flanders' 3/2/13 post stating, "[t]he board and town manager received valuable input on the specifics of the contract. As a result, the town manager is exploring some substantive changes to the proposed contract."

Will VTel would push forward with their 248A application while the contract is being renegotiated? 

So either way it looks like we won't be able to "perform" under the HSGP grant and will lose that $87,000 grant either way. 

What's a town to do?

Well, to paraphrase Bill Clinton, "that depends on how you define "performance.""

I have not seen the grant documents or any legal definition of the "performance deadline" so I can't say myself, but I have a hunch there's more flexibility there than our Town Manager is sharing.  Otherwise, I think he would concede that the HSGP grant is probably lost even if VTel builds this tower. 

Maybe we can buy all the equipment subject to this grant and only install the Hayes Hill portion before June 30th? 

Maybe we can buy it all and warehouse it? 

I just don't know. 

So, assuming the figures presented on the town website are accurate, and the HSGP grant deadline is set in stone, the town may need to come up with more than $200,000 to cover equipment if we sign the VTel agreement and only $150,000 more if we pass Article 34. 

Of course, passing Article 34 means more money from our pockets overall, but it should make clear that the differences between the two plans is nowhere near as dramatic or dire as some Article 34 opponents have suggested. 

If the town website numbers are to be believed, it all really boils down to whether we spend $215,000 to build this tower or have VTel build and own it. 

I think $215,000 is a reasonable and wise investment in core emergency services infrastructure for this town. 

I think $215,000 is a reasonable price to pay to make sure this infrastructure remains in our control and not in the hands of a for-profit company with very different priorities and interests than ours.  

I'm voting "YES" on Article 34 and hope you will too.