March 12, 2015 Annual School District Meeting

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TOWN OF PITTSFIELD
ANNUAL SCHOOL DISTRICT MEETING
March 12, 2015
The Annual Pittsfield School District Meeting was held at the Pittsfield Elementary School on Thursday March 12, 2015. Moderator Ammy Ramsey called the meeting to order at 7:02PM. The Pittsfield Boy Scout Troop 84 led the Pledge of Allegiance.
Moderator Ramsey thanked everyone for attending. She pointed out the emergency exits and requested cell phones be silenced. She reviewed the posted rules and voting instructions for the meeting.
Moderator Ramsey reported the results of the March 10, 2015 School District Elections:
Two School Board Members for a three (3) year term –
Gary S. Mullen elected – 359 votes
Linda Freese (write in) elected – 146 votes
Jesse Pacheco (write in) – 38 votes
One School District Moderator for a three (3) year term –
Arthur Morse (write in) elected – 179 votes
ARTICLE I
To hear the reports of agents, auditors, committees, or officers chosen, and to pass any vote relating therefore. Recommended by the Pittsfield School Board. (Majority vote required.)
Motion made by School Board Member Art Morse to approve Article I as read, seconded by School Board Member Bea Douglas. .
Moderator Ramsey opened the floor for discussion.
No discussion.
Article I passed by card vote.
ARTICLE II
To see if the Pittsfield School District will vote to raise and appropriate the sum of $970,000 (gross budget) for the construction and original equipping of a new Biomass Heating System, and to authorize the issuance of not more than $870,000 of bonds or notes in accordance with the provisions of the Municipal Finance Act (RSA 33) and to authorize the district officials to issue and negotiate such bonds or notes and to determine the rate of interest thereon; further, to authorize the withdrawal of $100,000 from the Facilities Maintenance Capital Reserve Fund created for this purpose; and furthermore to raise and appropriate an additional sum of $15,080
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for the first year’s interest payment on the bond. (Estimated tax impact of this article: $.06/thousand). Recommended by the Pittsfield School Board. Recommended by the Pittsfield Budget Committee (14 yes, 0 no). (2/3 ballot vote required.)
Motion made by School Board Member Michael Wolfe to approve Article II as read, seconded by School Board Member Gary Mullen. .
Moderator Ramsey opened the floor for discussion.
School Board Member Mike Wolfe noted the literature at the back of the room. The current boilers are approaching their life expectancy. The Board is trying to be proactive instead of reactive. The Board has done a lot of research on wood pellets as an option, including visiting other facilities and attending seminars regarding the biomass system. They originally looked at both wood chips and wood pellets and decided pellets was the best option. The building would be 30 X 40. The exact location has not yet been determined. Once geology work began there would be a better idea of the best location. The system would provide 80% of the heat for both schools. The current oil boilers at the High School would provide back up for both schools, including the remaining 20% of heat. During the spring, summer and fall the High School oil boilers would provide the hot water and minimal heating needs for both schools. The School Board invited Gary Sumero who works for Mascenic Regional High School. They have a 4,000,000 BTU pellet boiler and couple of 700,000 BTU boilers and a smaller pellet boiler in three or four different buildings. They have a very similar set up. They have a large boiler in their high school that is piped to their elementary school. The difference is they are going approximately 1500 feet and we would probably be about 1/3 of that. School Board Member Mike Wolfe asked the permission of the Body for Mr. Sumero to speak to any questions that he may not be able to answer.
Larry Callicoat asked if the current boilers were breaking down.
School Board Member Mike Wolfe responded that they are not as of yet. They have kept up with maintenance, but an audit done a few years ago determined there was about three to four years of useful remaining life expectancy. Though they are at the end of their life expectancy, they are still working and he is not aware of any recent breakdowns.
Larry Callicoat stated his experience shows boilers last a long time if they are maintained. He recommended replacing the boilers instead of a new wood pellet system. He believes they will be around longer than the availability of wood chips or pellets. He is concerned the EPA will eventually restrict the wood pellet systems. They have already stopped them in some states.
School Board Member Mike Wolfe believed this issue pertained to outdoor furnaces and the system the Board is proposing is a completely different system. The outdoor furnaces burn chunk wood.
Larry Callicoat believed there was a shortage of pellets last year.
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School Board Member Mike Wolfe believed there was a shortage of consumer wood pellets, but not bulk wood pellets. Manufacturers put a priority on bulk deliveries, usually for municipalities and businesses.
Larry Callicoat asked if the Board got three sealed bids.
School Board Member Mike Wolfe responded that the project had not yet gone out for bid. The Board is in the proposal stage to get approval to move forward from the voters first. If approved it would go out for a minimum of three bids. The Board can’t start putting bids out and spending more money without knowing the will of the people.
Larry Callicoat asked for an explanation for the $12,000.00 estimate for bond insurance. He believes the contractor would carry their own bond. He feels the cost of the oil boiler replacement proposal is high.
School Board Member Mike Wolfe responded that the School Board had asked Harriman, the architectural firm they have worked with in the past on other projects, to provided estimates. These numbers come from a similar project.
Steve Smith reviewed the proposal and did some research. He has been in the heating and cooling business for a number of years for school and industrial applications. Looking at a worst case scenario, in eighteen years he believed major components of the wood pellet system would have to be replaced. There would not be a cost savings. Burning pellets is three times more maintenance than an oil boiler. He did not believe we would not get the best usage in the off months. He doesn’t believe an argument could be made in favor of a wood pellet system versus a condensing propane boiler. He doesn’t think the wood pellet system would be a good fit, fiscally, nor physically. Condensing propane boilers would be a better choice. There would be a quicker payback.
School Board Member Mike Wolfe believed there have been some significant spikes in propane costs and it is an imported product. The benefit of wood pellets is that it is a domestic product and the money is staying in the United States and New England. He confirmed the costs presented are a worst case scenario. There are grants out there to help with the costs, but he wanted to give the worst case in the event we did not qualify for all the grant money.
Steve Smith responded that propane is more efficient. It’s a great sales pitch to say wood pellets are staying domestic. He believed we need to be efficient with our money.
School Board Member Mike Wolfe asked Mr. Sumero to speak on some of the paybacks his school district has realized.
Gary Sumero stated his district has three buildings containing wood pellet boilers. They are heating five facilities. The 4,000,000 BTU system had a 7 year pay back. The Middle School which is 70,000 sq ft. is a 3 ½ year pay back. The SAU office had already paid for itself in two years. Two of the boilers were grant funded. There is grant money available. He has no stake in
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manufacturing the systems. They have never experienced a fuel shortage. They get their pellets from Jaffrey, NH. Their 4,000,000 BTU system is at 85% efficiency.
Scott Palmer asked if grants have been researched.
School Board Member Mike Wolfe responded absolutely. However, the School Board did not want to give figures that were not definite. He gave examples of possible grants the Board had reviewed, including one from the PUC that would be an approximately $60,000 annual credit.
Diane Vaughan stated it is $.06 this year, but more in future years. She asked why it would keep getting more expensive. Replacement oil boilers appear less expensive and more cost effective. She felt the School Board should have asked for funds for bids on oil boilers than the amount for the pellet system.
School Board Member Mike Wolfe explained the cost increase is due to the terms of a short term bond. However, the $60,000 annual credits would last forever.
Paul Nickerson stated he is not against either one. He had hand outs for costs of oil boilers he found. He shared the information. He stated he spoke with a couple of contractors and calculated a total cost of $83,726.00 for the whole project. He is not concerned about pinching money, but wants what is best for the town.
School Board Member Mike Wolfe clarified the information the Board presented is not a proposal for an oil boiler. Harriman presented an estimate based on a similar project.
Paul Nickerson understood. All moving parts take electricity, and a wood pellet system has a lot of moving parts. He would like to hear from someone who has the system if they have experienced an increase electricity usage.
School Board Member Mike Wolfe responded the electricity costs are included in the Harriman proposal.
Paul Nickerson said it looks good, but would like more information. Maybe table it for now.
School Board Member Mike Wolfe expressed his concern about the environment impacts of buried oil tanks, though confirmed the current tanks are serviced and audited by the Department of Environmental Services.
Fred Okrent asked who assigned the life value of the current boilers. He saw no mention of salvage value of the current systems.
School Board Member Mike Wolfe stated the Board has not looked at the salvage value yet, but does not believe it would be significant. He did not know who determined the appraisal of the boilers. It was part of the School District energy audit. Harriman, the architectural firm would have brought in their specialist to determine this. Mr. Wolfe emphasized that Harriman was not trying to sell anything. The School Board approached them with this idea.
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Dan Schroth stated he had read about the project. He thanked the School Board for trying to save the Town money. He also noticed this Article was recommended by the Budget Committee by a unanimous vote. He would personally rather burn a waste product than drill for oil.
Joshua McCabe believed there had been a 6% increase in oil costs over a fifteen year period. He asked what had been the increase in cost of wood pellets over the same period.
Gary Sumero stated his District had replaced one motor in 5 years. Their wood pellet prices have dropped. They have seen a 672 ton reduction in carbon emissions a year at Mascenic Regional High School. There is an environmental benefit.
Joshua McCabe asked if there were any grants available for other energy efficient systems.
School Board Member Mike Wolfe responded that the Board had not yet looked into those options. He is not personally in favor of propane, but he is only one vote.
Steve Smith responded there are grants available.
Ed Vien, in response to Mr. Sumero’s statement that their pellet price had gone down, noted Mascenic Regional High School has more plants. He believes they see a savings because they are buying in bigger bulk.
Gary Sumero responded he has seen a decrease across the board when it was put out to bid. It is a fluctuating market.
Ed Vien asked Mr. Sumero if they buy pellets from Canada.
Gary Sumero responded they did not.
Ed Vien asked if there would be a need more personnel to run the wood pellet system.
School Board Member Mike Wolfe responded their research indicated additional staff would not be necessary.
Ed Vien asked if the wood pellet system was high pressure or hot water- low pressure.
Gary Sumero responded it was hot water – low pressure.
Steve Adams noted Mr. Nickerson’s estimate for replacing the oil boilers, which would “buy” us another twenty years. He asked why the cost for a wood pellet system was so much higher.
School Board Member Mike Wolfe stated he can’t speak to Paul Nickerson’s numbers. He had just learned of Mr. Nickerson’s numbers tonight.
Bob Carroll asked the School Board if they had looked at the option of propane.
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School Board Member Mike Wolfe stated they had not.
Bob Carroll stated there are deals available. He asked what the impact would be to the area, in particular to Winsunvale and what the system would look like.
School Board Member Mike Wolfe responded the School Board did not want to spend money on artwork at this time. They wanted to present the facts and let the people decide how to proceed. The plan would be to have the facility look similar to the Elementary School if it is located there. Another idea is to sink it into the hillside at the Middle High School.
Bob Carroll asked about increased traffic and the impact on road conditions.
School Board Member Mike Wolfe responded there would be approximately 8 wood pellet deliveries a year. If the facility was near the Middle High School, trucks would come up Oneida Street which already handles tractor trailer truck deliveries on a daily basis.
Bob Carroll asked for the cost to replace the oil fuel pump.
School Board Member Mike Wolfe responded he did not have those figures, but remembers it was problematic because it was not readily available.
Bob Carroll asked if Harriman would get a “cut” if we buy something.
School Board Member Mike Wolfe responded no. The Board has a great relationship with Harriman. They have worked successfully with them on other projects. It is up to the School Board to accept the bid. Harriman just gathers the players.
Bob Carroll stated that if the current boilers are at the end of their useful life, he is concerned the Board has not looked at other options.
School Board Member Mike Wolfe responded the Board had also looked at new oil boilers but their research shows the wood pellet burners have a significantly longer life.
Bob Carroll asked what would happen when the current boilers that will be used for the remaining 20% of usage fail.
School Board Member Mike Wolfe responded the Middle High School boilers would be used. They have an estimated 10 year life span remaining.
Bob Carroll stated he was confused about the large cost of the wood pellet boiler versus the oil boilers.
School Board Member Mike Wolfe responded the credits would outweigh the wood pellet system costs.
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Bob Carroll suggested the Board look at the option of propane.
Budget Committee Chairman Louie Houle stated the Budget Committee voted unanimously in support of the proposal. He asked School Board Member Mike Wolfe to tell the Body more about the grant options. The Budget Committee based their opinion on that information and the best case scenario presented. He stated it is great to see everyone here asking questions, but there were a number of public hearings and it would have been beneficial if more people attended and shared these concerns during those public forums. If specific grant information is not available Mr. Houle asked if Mr. Wolfe could provide the best case scenario for the pay back period.
School Board Member Mike Wolfe stated the best case scenario would be a 6 year pay back. The pay back on an oil boiler is the life of an oil boiler which is about 30 years.
Melody Williams stated her concern that there were too many unanswered questions and that taxes would continue to increase.
School Board Member Mike Wolfe stated the Board wanted to get the will of the people before they proceed in spending money on the project. They have taken time to visit schools and attend seminars during their research. He responded the increase in taxes in subsequent years is for the five year bond. After that time it would decrease due to the offset of the PUC grant.
Joan Osborne asked if the Board had researched solar energy. She read of a wood pellet shortage experienced by the hospital in Littleton.
Wayne Summerford expressed his concerned with way the system is being proposed. He stated other less expensive options had been offered during this meeting. He didn’t believe the numbers made sense. We would still burn oil so the underground tanks would still be needed. He felt 18 years is a long time. We should look at other options. We need to save money.
School Board Member Mike Wolfe responded the Board is trying to be proactive and not react to a failed system.
Larry Callicoat asked if the Board researched the option of natural gas.
School Board Member Mike Wolfe responded he had been told it is not piped out here.
Steve Smith asked if the Board approached Harriman about the wood pellet system.
School Board Member Mike Wolfe responded they had.
Steve Smith stated the Board should ask them for other options and asked that the Article be tabled.
Merrill Vaughan asked if the Article could be tabled until next year.
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School Board Member Mike Wolfe responded if the Article is defeated then it will be up to the Board to decide what they feel is best for the Schools and the Town.
Steve Adams called for a point of order. He believed a motion to table was not proper.
Leonard Smith stated this issue was confusing. The Board is asking the people to vote on something for $1,000,000.00 without the people knowing what they are getting.
School Board Member Mike Wolfe responded the Board is asking for “up to” the amount. The Board would spend less if at all possible.
Leonard Smith asked what Harriman was paid and if they were they only source of information.
School Board Member Mike Wolfe responded most of his information came for tours of other school facilities and attending seminars.
Leonard Smith asked if the numbers came from Harriman. He believed Harriman should be asked about other options. He is concerned costs of this system will continue to go up. He doesn’t believe enough information was presented.
School Board Member Mike Wolfe responded the numbers came from Harriman and that they are estimates based on other similar projects, which is the best they can do at this time.
Kenneth Osborne stated the tractor trailer trucks would affect the roads. He wants lower taxes.
Paul Nickerson stated we shouldn’t be running the large furnaces just for hot water. He asked if a smaller product could be used for off season usage. He believes we should try to save money.
Gary Sumero responded during the off season Mascenic Regional High School uses other heat sources instead of the wood pellet boilers.
School Board Member Mike Wolfe agreed we should not use pellets for summer.
Louie Houle asked if there was an option to do a straw poll.
Moderator Ammy Ramsey responded that it was not an option because it is a bond issue. She asked Attorney Boyton for confirmation.
Jay Boyton School District Attorney responded it would be permissible to table the Article, but if we did not return to it by the end of the night it would automatically fail.
Cedric Dustin asked if the Article could be indefinitely postponed.
Attorney Jay Boyton responded that would be equivalent to a “no” vote, which is not permissible for a bond issue.
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Moderator Ramsey asked if the Body was ready to move the question. She explained the Article would need a 2/3 vote to pass and that it would be a secret written ballot. All ballots must be placed in the wooden ballot box. Polls would remain open for one hour.
Moderator Ramsey announced the polls open at 8:19pm and stated they would remain open until 9:19pm.
School Board Member Ray Ramsey made a motion to continue with the meeting while the polls remained open. School Board Member Mike Wolfe seconded the motion.
All in favor of continuing with the meeting.
ARTICLE III
To determine and fix the salaries of the School Board and the compensation of any other officers or agents of the Pittsfield School District as follows: Moderator, $100.00 per meeting; Clerk, $100.00; Chairperson of the School Board, $700.00; School Board Members, $600.00 per member; School Treasurer, $600.00; and Supervisors of the Checklist, $75.00 per Supervisor per Meeting. Recommended by the Pittsfield School Board. Recommended by the Pittsfield Budget Committee (14 yes, 0 no). (Majority vote required.)
Motion made by School Board Member Bea Douglas to approve Article III as read, seconded by School Board Member Art Morse. .
Moderator Ramsey opened the floor for discussion.
Scott Palmer asked if all the listed positions were paid per meeting.
Moderator Ramsey clarified the Moderator, Clerk and Supervisors of the Checklist are compensated per meeting and the School Board members, Chairperson of the School Board and Treasurer are compensated per year.
Article III passed by card vote.
ARTICLE IV
To see if the Pittsfield School District will vote to raise and appropriate the sum of three hundred thirty thousand dollars ($330,000) for the support of the School Lunch Program. This appropriation will be funded by a like amount of revenue from the sale of food and state and federal sources. (Estimated tax impact of this article: $0.) Recommended by the Pittsfield School Board. Recommended by the Pittsfield Budget Committee (14 yes, 0 no). (Majority vote required.)
Motion made by School Board Member Gary Mullen to approve Article IV as read, seconded by School Board Member Art Morse.
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Moderator Ramsey opened the floor for discussion.
No discussion.
Article IV passed by card vote.
Moderator Ramsey stated the time of 8:45pm, and that the polls would be open approximately half an hour more.
ARTICLE V
To see if the Pittsfield School District will vote to raise and appropriate the sum of one million, four hundred thousand dollars ($1,400,000) for the support of federal and private foundation grant-funded educational programs of the Pittsfield School District. This appropriation is contingent upon receiving revenue from federal grants and private foundations and will be expended in accordance with federal and state requirements upon approval by the New Hampshire Department of Education or private foundation requirements. (Estimated tax impact of this article: $0.) Recommended by the Pittsfield School Board. Recommended by the Pittsfield Budget Committee (14 yes, 0 no). (Majority vote required.)
Motion made by School Board Member Raymond Ramsey to approve Article V as read, seconded by School Board Member Gary Mullen. .
Moderator Ramsey opened the floor for discussion.
No discussion.
Article V passed by card vote.
ARTICLE VI
To see if the Pittsfield School District will vote to raise and appropriate the Budget Committee’s recommended amount of $9,803,870 for the support of schools, for the payment of salaries for the school district officials and agents, and for the statutory obligations of the district. This article does not include appropriations voted in other warrant articles. (Estimated tax impact of this article: $2.30/thousand.) Recommended by the Pittsfield School Board. Recommended by the Pittsfield Budget Committee (14 yes, 0 no). (Majority vote required.)
Motion made by Budget Committee Chairman Louie Houle approve Article VI as read, seconded by School Board Member Ray Ramsey.
Moderator Ramsey opened the floor for discussion.
Dan Schroth asked to consider this Article in context of the three year cycle of the teachers’ contract. He stated he could support this Article if he could have assurance for next year. Properties will be re-evaluated this year, which will have an effect on people’s taxes. He asked
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Superintendent John Freeman to assure him they would start right away on the budget for next year.
Scott Palmer asked why the budget for last year was $400,000 less than this year.
School Board Member Mike Wolfe responded the $400,000 difference was before the warrant articles passed last year.
Helen Schiff asked how the reduction in the Nellie Mae grant would affect the budget.
Superintendent John Freeman responded the previous Nellie Mae grant in the amount of $2,000,000 would end this June. The School District received a new three year grant from Nellie Mae in the amount of $800,000. The previous grant paid for most of the professional development and part of three positions that now have been added into the operating budget.
Helen Schiff asked for confirmation that the smaller Nellie Mae grant is reflected by the increase in the budget and asked if there were other grants available.
Superintendent John Freeman answered yes. The School District had received a grant from the New England Secondary School Consortium in the amount of $25,000. The New Hampshire Charitable Fund is providing a grant for a new playground at the Elementary School, the New Hampshire Child Foundation is providing a grant for substance abuse prevention and education. The District was just notified it was accepted into a grant program to look into school finance. Mr. Freeman stated the smaller Nellie Mae grant explains the increase in budget to some degree. The District has experienced increases along with other municipalities such as retirement and healthcare benefit costs. A teacher position was added at the Elementary School due to unexpected increase in class size.
Article VI passed by card vote.
ARTICLE VII
To transact any other business which may legally come before this meeting.
School Board Member Mike Wolfe thanked Ammy Ramsey for her term as School District Moderator and Art Morse for completing a School board term on short notice.
Steve Adams asked if there could be a ten minute recess.
Moderator Ramsey called for vote. All in favor.
Moderator Ramsey called the meeting back to order at 9:19pm. After confirming everyone who wanted to vote on Article II had the opportunity, Moderator Ramsey announced the polls were officially closed.
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Moderator Ramsey presented the ballots to the Supervisors of the Checklist to conduct the count.
Moderator Ramsey announced the results of the secret ballot vote on Article II.
Yes 29 votes, No 90 votes. Article II was defeated.
School Board Member Bea Douglas made a motion to adjourn the meeting. Paul Sherwood seconded the motion.
Moderator Ramsey adjourned the meeting at 9:25pm.
Respectfully submitted,
Erica B. Anthony
School District Clerk