Sterling voters to weigh in on natural gas plant, combined town utility

Sterling voters to weigh in on natural gas plant, combined town utility

By Joshua Lyford CORRESPONDENT

STERLING — Town meeting voters will get a chance to voice their opinion on building a natural gas plant — and establishing a combined municipal electric and natural gas utility — at a special meeting being held in the Chocksett Middle School gymnasium at 7 p.m. Monday.

The meeting comes after the Sterling Municipal Light Department put forth a petition that garnered more than 200 signatures from registered Sterling voters. The vote taking place at this town meeting would be the first of two; voters would also have to approve an article at a second town meeting. A yes vote this time does not commit the town or the light department to build if the project is not found to be fiscally sound.

"Primarily, this is a gauge to see how the residents feel," said light department General Manager Sean Hamilton. "That's what this is for; after that we have a lot of work to do and, just as importantly, we want to make sure the town is informed."

A yes vote would mean that the light department can begin digging into the financial feasibility of such a project.


"We want to be able to put it on the table," said Mr. Hamilton. "We'll show you what we have and you can make an informed decision. We have said in our research that we may find that this is something that is not feasible. That's a possibility too. We won't know until we do the research."

If building the natural gas plant is approved by voters, the light department would be combined with the municipal gas plant to form the Sterling Municipal Light and Gas Department, otherwise known as Sterling Energy.

"Our board has pushed hard to at least get this to the table," said Mr. Hamilton. "The board really wants to get this to the residents before we go too far. We want to see what they think. It is key to get the residents' opinion. You never want to present something to the people that they don't want."

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This plan sounds familiar. A similar combination of tactics was employed by Templeton Municipal Light to take over the water system (Timeline below).  It is also reminiscent of the wind turbine project...EXCEPT the wind turbine did not go before the voters at town meeting in Templeton. 

It appears Mr. Hamilton has learned "We want to see what they think. It is key to get the residents' opinion. You never want to present something to the people that they don't want." Isn't that something?

Sterling residents might want to insist on formal PILOT payment calculations as outlined in Chapter 164 section 47C before they agree to a project of this magnitude.

(j) Except as provided for herein, a municipal lighting plant cooperative shall be exempt from paying taxes, including, but not limited to taxes on its income and real and personal property situated within the commonwealth and owned by the municipal light plant cooperative; provided, however, that the cooperative shall agree, in lieu of property taxes, to pay to any governmental body authorized to levy local property taxes the amount which would be assessable as local property taxes on the real and tangible personal property if such property were the property of a domestic corporation; provided, further, that no such municipal lighting plant cooperative shall be allowed to commence any such operations allowed pursuant to this section or exercise any such powers pursuant to subsection (d) until such payment in lieu of taxes is executed. The cooperative shall pay all sales or excise taxes which are properly assessed on its business activities under this section to the extent such taxes are assessed against domestic corporations.

It might be wise for the good residents of Sterling to insist that their BOS have copies of all contracts over $5,000 according to Chapter 164 Section 56C:

Section 56C. Every municipal light commission or manager thereof, who makes or executes a contract on behalf of a municipal lighting plant, where the amount involved is five thousand dollars or more, shall furnish said contract or a copy thereof to the city or town auditor within one week after its execution. Said city or town auditor shall keep such contract or copy on file, open to public inspection during business hours. Such contracts or copies shall be kept in a separate book, arranged according to the subject of the contract, or in other convenient form. An index of the subject matter of the contracts and to the names of the contractors shall be made semi-annually, and shall also be open to public inspection in some convenient form. All allowances under and additions to such contracts, or copies thereof, shall be filed with the city or town auditor, together with a sworn statement of the officer making such allowances or additions that the same are correct and in accordance with the contract. A city or town auditor, municipal light commissioner or manager wilfully failing to comply with this section shall be punished by a fine of not less than ten nor more than one hundred dollars. 

In light of recent financial events in Templeton, it might be wise to review the Town of Sterling's recap sheet.

 

Timeline for Chapter 93 Acts of 2000

Transfer of water department operations to Templeton Light Department

July 6, 1999 Light Department minutes.

August 3, 1999 Light Department minutes . Sean Hamilton states the merger of Water with light will be beneficial for Sewer department.

August 16, 1999 Water meeting (BOS)

September 7,1999 Light Department minutes.  Reference is made to a negative letter from Chris Ryan(town coordinator at that time). “A motion was made by Sean Hamilton, seconded by Dana Blais and unanimously voted to have Attorney Jack Ferriter review the proposal and draft a legal petition for insertion in the town warrant or town ballot.” In my opinion this is where this proposal to merge water with light goes from a friendly merger to a hostile takeover.

October 5, 1999 Light Department minutes.

November 2, 1999 Light Department minutes.

November 15, 1999 Water minutes (BOS)

December 7, 1999 Light Department minutes. On page 3 of these minutes is a reference to PCBs in the river near the wells of the water system of which the Light department is trying to take control. Gregg Edwards is listed as a commissioner.

December 20, 1999 Water meeting (BOS)

January 10, 2000 Light Department minutes.

February 1, 2000 Light Department minutes.

February 14, 2000 Water meeting (BOS)

February 22, 2000 Water meeting (BOS)

March 7, 2000 Light Department minutes.

March 8, 2000 Special Town Meeting warrant.

Meeting attendance 84 total. 39 voters from Precinct A. 45 voters from Precinct B. the warrant article to merge water with light passes Town meeting.

Timeline Continued

April 4, 2000 Light Department minutes. Discussion of letter from Attorney John Ferriter regarding  how to operate the water enterprise fund. “Presently the Selectmen submit articles for any repairs or projects which is not necessary.”  Bottom of page 1.

May 2, 2000 Light Department minutes. Page 2 “ The manager [Mr. Skelton] told the Commissioners that if the merger takes place we will have some serious work to return the Water Department to a viable entity of the Town. The Commissioners agreed but felt it can be accomplished.”

June 6, 2000 Light Department minutes. Discussion of ballot election for merger of light and water now that the special legislation is approved.

June 20, 2000. Light Department minutes.

July 3, 2000 Light Department minutes. Ballot election set for September 12, 2000.

August 8, 2000 Light Department minutes.

September 5, 2000 Light Department minutes. Check out “Other Business”. Then go back and read the paragraph beginning…” The Commissioners and the Manager discussed a water meeting they attended at the selectmen’s office.”

September 11, 2000 Light Department minutes. “The Manager received a phone call from the Town clerk informing the Light Department that the vote merge the Light and Water Departments passed by a vote of 230 in favor and 83 against.”  Departments to merge on January 9, 2001.

The Light department paid for the ballot election to merge the Light and Water departments. Schedule of Payments to Treasurer.

October 3, 2000 Light Department minutes.

October 30, 2000 Light Department minutes open session. Advertise for a water superintendent.

Timeline Continued

October 30, 2000 Light Department minutes executive session. In my opinion this is where the management structure of the Light and Water department becomes unsustainable. Organizational structure – An Electrical Superintendent, A Water Superintendent and the Manager oversees it all. Old structure before “hostile takeover” one person – Harry Aldrich was the Highway Superintendent, Water Superintendent and Sewer Superintendent. Bruce Evans operated the treatment plant.

November 7, 2000 Light Department minutes open session. On page 2, “The Manager updated the Commissioners in regard to meeting he attended with the Sewer Commissioners to discuss the sewer billings and how the information would flow from department to department.”  On page 3 the Commissioners vote themselves a raise.

November 7, 2000. Light Department minutes executive session. Everyone gets a raise! Not even legally in charge of the water department.

December 5, 2000. Light Department minutes. On page 2, …”The sewer commissioners voted to contribute $25,000 toward phase I which is the replacement of 200 water meters that are presently in stock at the Highway department.”

January 2, 2001. Light Department minutes.

Other Supporting Documents

Legal invoices paid by the light department to take over water department.

“Citizen Petition” signature sheets gathered by the Light department to call for a special town meeting to request special legislation to merge water department with the light department.

Access to Municipal Light –

A Letter from the Inspector General, Gregory Sullivan, dated December 6, 2007 promoting “accountability and responsibility in our public utilities.” 

References “An Investigation into the use of certain bond funds by the North Attleborough Electric Department (12/05).