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Stormwater public‑private project raises liability and contract concerns for selectboard
Summary
A proposed public‑private stormwater project (three‑acre site) requires the town to act as a pass‑through for ARPA/DEC funds; board members expressed concerns about liability for cost overages, indemnification, and whether the town should sign the current MSI/co‑op agreement without edits.
Staff presented a draft agreement that would authorize the town to act as the administrative pass‑through for a stormwater project benefitting the industrial park and a private utility co‑op. Members discussed that federal/state rules prevent direct ARPA transfers to private entities, so the town’s role is to receive and disburse funds, then seek state reimbursement.
Board members raised multiple contract details as problematic: indemnification language, whether the town would be on the hook for cost overruns, retention amounts and timings, and whether the agreement conflicted with previously approved roles and earlier documents. One board member warned the town should not assume responsibility for overages beyond the grant amount. Staff recommended further attorney review, suggested a limited administrative fee may be eligible for reimbursement by the grant, and proposed a special meeting to sign the agreement only after the contract language is clarified.
