READSBORO- The selectboard held an informational meeting to discuss two articles for the June 1 and June 2 special Town Meeting. Representatives from Central Vermont Public Service and the water supply division of the Vermont Department of Environmental Conservation were on hand to answer questions from the public. Yet despite the information they were presented, many people in attendance had already made up their minds.

CVPS is willing to purchase Readsboro Electric for $217,050 including a $10,000 donation to the Readsboro Central School. A three-fifths majority (or 60%) is necessary to approve the sale. At Town Meeting, 156 voters approved the sale, while 117 did not. The article failed to pass. Now voters get a second chance.

The town provided a fact sheet detailing the pros and cons of selling the electric utility. If the town chooses to retain the electric utility, “the selectboard will have to propose a 15% to 22% increase in 2009 and an extra 10% increase in 2010.” It also claims Readsboro Electric “does not have enough users to spread financial support for the electric system at its current rates. Over time, CVPS will provide more competitive rates and better service.”

The fact sheet also states that “(Readsboro Electric) is not prepared for the effects of natural disasters. The electric department does not have the money or resources to respond to an emergency storm like they did last December.” The fact sheet states that CVPS excels in storm management and it won a 2007 national award for performance management. The town also said “(Readsboro Electric) had difficulty managing its pole setting and the prevention of damage to underground facilities.” They claim CVPS “has the expertise and resources to properly manage pole settings.”

Reasons for keeping the utility also vary. The fact sheet stated that “the utility is not funded with taxpayer money and if the town did not own Readsboro Electric, it would not have had enough damage (from the December ice storm) to be eligible for Federal Emergency Management Agency funding”

The town also provided the utility’s average rates and compared them to those of CVPS. If the electric utility gets a 22% increase, all users would pay approximately $19,083 per year for the sewer plant power bills. With CVPS, the fact sheet claims that all users will pay up to $40,269 per year. Readsboro’s rates for street lights amount to $9,253.44 per year, whereas CVPS’s rates are $16,450.56 per year. Residential rates, according to the town’s sample provided, would cost $208.31 with Readsboro Electric, while CVPS would be $166.42, a difference of $41.89.

Joe Krause and Scott Anderson, of CVPS, presented the benefits CVPS will provide if the town approves the sale. Krause said CVPS will offer a variety of rate choices including budget billing, time-of-day rates, and stable power through 2012. In addition, they will replace 30 poles over three years, conduct a fuse coordination study to enhance system protection, examine the feasibility of a new feed, and find alternatives to improve electric reliability.

Despite all of CVPS’s promises, one citizen wasn’t buying it. Rodney Caruso said Readsboro Utility is doing a good job overall and it wouldn’t be in the town’s best interests to sell to CVPS. “They’re in the business of making money,” said Caruso. “If (our) rates are low, then this utility must be running correctly,” said Caruso.

David Marchegiani spoke in favor of the sale. Marchegiani said CVPS and Readsboro Electric “are all going to be close in rates,” but while rates are lower than other utilities, eventually they catch up. “If you’re the cheapest guy on the block, eventually you lose your shirt.” said Marchegiani. “We’re all going to be close in rates in the end because we’re all paying from the same power grid.”

The second article asks the town to approve $1,430,000 in bonds to finance town water system upgrades. Last summer, the state ordered the town’s fire hydrants shut down when it was determined the town did not have the proper piping and water pressure. On Town Meeting day, voters defeated the original article by three votes, 139 to 136.

The Dubois & King engineering firm estimated it would cost $1,430,000 but those costs may also be reduced if state grants and other financial assistance is available. The town has since revised the cost at $965,000.

To bring the water system into compliance, the town must install a 12-inch water main on Jarvis Hill Road, replace another 12-inch water main on Route 100, and fulfill water filter replacement as well as other requirements.

According to the town’s fact sheet, the benefits of authorizing the project “would restore the ability to provide fire protection, improve water distribution during peak flow, and reduce potential public health risks.” The fact sheet states it will cost $130 per household.

Dave Webb, of the Vermont Department of Environmental Conservation’s water supply division, said state funds for public works upgrades are tight and very competitive. Webb said Readsboro’s project is currently “outside of their funding range” but should the town pass the article on June 2, they will take Readsboro’s funding requests into consideration. If the town doesn’t pass the article, Webb said the renovations must still take place.

That prompted Readsboro Fire Chief Carl Marchegiani to respond, “As fire chief, I would like the hydrant system fixed.”