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Home My WebLink About2005-11-29 Board of Selectmen PacketWater Options for the Town of Reading Presentation to the Board of Selectmen November 29, 2005 Stakeholders — Town of Reading: • 7800 resident water accounts • Compost site users • Neighborhood of proposed water treatment plant • Water Treatment Plant staff • Town Meeting • FINCOM • Board of Selectmen • Board of Health • Water, Sewer & Storm Water Advisory Committee • Conservation Commission Stakeholders — Local: • Conservation groups • Recreational users (river; alternative site uses) • Ipswich River basin Towns • Chamber of Commerce Stakeholders — State: • MWRA • MWRA Advisory Committee • MWRA member communities • MWRA 'wanna be' communities • State regulators (DEP) • Quabbin basin Water Options for the Town of Reading Presentation to the Board of Selectmen November 29, 2005 Broad Factors to consider: • Availability of clean, safe drinking water • Water supplied in an environmentally ap p � ropriate manner • Water supplied at the lowest cost Some Specific Factors to consider: • Water quality • Water supply vulnerability • Environmental Impacts • Local control • Ability to Implement • Cost of delayed construction • Cost of old plant O&M • Time frame for decision • Financials • Future MWRA water cost • Future regulations • Unexpected events • Alternative land use • Alternative to compost site Water Options for the Town of Reading Presentation to the Board of Selectmen November 29, 2005 Time Frame: • Safe drinking water standards • Continued construction inflation • Capital and O&M costs to run old plant • MWRA developments • Seek regulatory changes for 100% MWRA option Decision Process: • BOS prioritize all factors • Publicity to advise stakeholders: o Role of Town Meeting members o Your Community Connection (January edition) o Cable TV & local newspapers o Notice in Water/Electric Bill • Input from stakeholders • Meet with MWRA • BOS Forum • Open meeting(s) with stakeholders • Direct mailing user survey • Re-consider & re-prioritize all factors • Final decision Water Options for the Town of Reading Presentation to the Board of Selectmen November 29, 2005 Model changes since November 8th presentation: • The cost to buy -in to the MWRA has increased. o Partial buy -in is $3.3 million (up 4 %) o Full buy -in is $11 million (up 10 %) • Since the Town has now received final approval for the partial MWRA buy -in, the model now reflects the financing for an `all - MWRA' option to occur over 25 years. The $3.3 million will be financed in Years 1 -20; the additional $7.7 million will be financed in Years 6 -25. • Full benefit costs have been added to the O &M costs. • The $900,000 demolition cost occurs in Year 6 of the `full MWRA' option; previously it was paid during the first three years. Financial differences caused by these changes: • The changes have shifted about $6 million over a 35 year period in favor of the `all MWRA' option. • The base option of `No MWRA' has increased from $166 million to $180 million. The addition of benefit costs was the dominant influence. • Assuming a 7% MWRA increase in the years 10 -35, the mixed option of `Partial MWRA' has increased from $230 million to $244 million, for the same reasons. • Assuming a 7% MWRA increase in the years 10 -35, the option of `Full MWRA' has increased from $235 million to $243 million. • The breakeven MWRA inflation rate in Years 10 -35, when comparing the `Partial' versus `Full' options, has increased from 6.72% to 7.06 %. Water Options for the Town of Reading Presentation to the Board of Selectmen November 8, 2005 General assumptions about the Water Options model: • The model of Reading water options is built so that any of the current assumptions may be modified, and any future option may be easily incorporated. • Forecasts will be limited, where possible, to costs that have significant impacts on the final decision. • A new water treatment plant costs $23.333 million, including $900,000 for the demolition of the old plant. Plant construction will take three years. During construction, 100% MWRA water will be used. About $900,000 of cost savings from plant operations will be realized during these three years. • The full MWRA solution will take five years to obtain the proper permissions. The old plant will be kept operating during this time, and certain capital costs will be incurred. Assumptions about MtiVRA water: • Full MWRA use is 2.0 million average daily gallons — this is the average usage during the past 21 years. The highest usage was 2.6mil. in 1985; the lowest 1.8mil. in 1988. • Partial MWRA use is 600,000 average daily gallons — the maximum allowed by the current application submitted by the Town to MWRA. Based upon history, a more realistic pattern will be the purchase of some lesser portion of this MWRA water. • Last five years have averaged +16% in MWRA water costs. • Formal MWRA projections (last updated in June 2005) are through FY2015 — the next 9 years average +6.6 %. The model uses the actual MWRA forecast for this period; then uses four scenarios (between +6% and +9 %) in future years beyond FY2015. • FY07 projected at +13.5 %. Memo from MWRA dated 11/7/05 warns of `sharp increases in rates projected for FY07 ( +13.5 %) and the next five years ( +9.8 %)'. Water Options for the Town of Reading Presentation to the Board of Selectmen November 8, 2005 Assumptions about Financing: • Reading general obligation debt (now at 4.75% for 20 years) will finance any MWRA buy-in. Partial buy-in costs $3.2 million; full buy-in today costs $10 million. About $568,000 in mitigation fees will offset the cost of the MWRA buy-in for the first three years. Full MWRA buy-in will cost $5.7 million in interest over twenty years. • Low interest SRF loans (2.0% interest plus 0.75% in fees) will finance a new water treatment plant. This will cost $7.0 million in interest and $1.9 million in fees over twenty years. Assumptions about Capital: • All assumptions are from Peter Tassi and water treatment plant staff. • The $900,000 demolition cost in the full NIWRA option is considered as a capital expense. These demolition costs are considered as part of the total cost of a new water treatment plant in the other water options. Assumptions about Operations & Maintenance: • Last five years have averaged +2.25% in water treatment plant O&M. • There are four component costs to O&M. Over this five years period, personnel costs have increased an average of +5.4% annually; other costs by +2.7%; chemicals have decreased by 0.3% and electricity has declined by 1.81/o. • Forecast for FY07 is +49.6%, an increase from $1.0 to $1.5 million. Chemicals are forecast +189% to $425,000; electricity +107% to $318,000; other costs +19% to $389,000; and personnel costs are forecast to decrease by 2% to $368,000. • The model will use a long-run +5% increase in these costs. This will allow a 50% increase every 13 years if the underlying . increase is +2.25% per year. • The $900,000 over 3 years will be realized as cost savings while a new treatment plant is built. • Some staffing level will be maintained even in the fall MWRA option. Town of Reading - Long Term Water Costs Presentation to the Board of Selectmen November 29, 2005 Cumulative Expenditures - 35 Years Average Annual Expenditures - 35 Years Millions of Dollars Millions of Dollars 'New W.TP -; New WTP No WTP Difference New WTP New. WTP . New WTP No WTP Difference Est" .No MWRA Part MWRA Full MWRA Part vs. Full costs No MWRA" Part MWRA Full MWRA Part vs. Full 2 5.`i $ 235.9 $ 215.5 $ 20.4 6% $ ' ' . 5A $ 6.7 $ 6.2 $ 0.6 7% ' $ 179 5 . $ 244.0 $ 242.7 $ 1.3 7% 5 . : $ 7.0 $ 6.9 $ 0.0 8% :$ 1.79:5 ;' $ 253.8 $ 275.2 $ (21.5) 8 %. $ ' :' S:1 $ 7.3 $ 7.9 $ (0.6) 9% -$ ;'179 5 _: $ 265.4 $ 314.1 $ 48.6 9% $ : 5.1 $ 7.6 $ 9.0 $ Cumulative Expenditures - 20 Years* Average Annual Expenditures - 20 Years* Millions of Dollars Millions of Dollars New WTP. New WTP No WTP Difference New'WTP. New WTP No WTP Difference Dst. =Na.MWRA, Part MWRA Full MWRA Part vs. Full costs No MWRA Part MWRA Full MWRA Part vs. Full 109.9 $ 84.3 $ 25.6 6% $ 2 5.`i $ 3.1 $ 2.4 $ 0.7 7% `'$ 88 9; $ 110.6 $ 86.9 $ 23.8 7% $ 2 5 $ 3.2 $ 2.5 $ 0.7 $ 111.5 $ 89.6 $ 21.8 8% $ " ` 2 :5'.: $ 3.2 $ 2.6 $ 0.6 9% '`;$ 88 9 : $ 112.3 $ 92.6 $ 19.8 9% $. ... 2.5 '.: $ 3.2 $ 2.6 $ 0.6 *The two solutions that employ permanent MWRA water complete their financing in 20 years Town of Reading - Long Term Water Costs Net Present Value Comparison Presentation to the Board of Selectmen November 29, 2005 Cumulative Expenditures - 35 Years Average Annual Expenditures - 35 Years Millions of Dollars Millions of Dollars NewWTP ° New WTP No WTP Difference NewWTP New WTP No WTP Difference :)st, :No Mftk Part MWRA Full MWRA Part vs. Full costs..No MWRAI Part MWRA Full MWRA Part vs. Full $ 132.1 $ 235.9 $ 215.5 $ 20.4 6% $ 5:1, ! $ 6.7 $ 6.2 $ 0.6 7% `, $ :'179.5.:'' $ 244.0 $ 242.7 $ 1.3 7% $ 5.1 ' $ 7.0 $ 6.9 $ 0.0 8% : "$ 179 5..;`: $ 253.8 $ 275.2 $ (21.5) 8% $ :5.1 $ 7.3 $ 7.9 $ (0.6) $ 265.4 $ 314.1 $ (48.6 9%,.$ � ::15.1. $ 7.6 $ 9.0 $ 1.4) Cumulative Expenditures - 35 Years Average Annual Expenditures - 35 Years Millions of NPV* Dollars Millions of NPV* Dollars 'New WTPi New WTP No WTP Difference New`rWTP ` New WTP No WTP Difference cost: No MWRA Part MWRA Full MWRA Part vs. Full costs No MWRA;: Part MWRA Full MWRA Part vs. Full 6% $ 1'16 1 $ 149.9 $ 132.1 $ 17.9 6% $ 3,3. $ 4.3 $ 3.8 $ 0.5 7%,- '$ 11:6 1 P' $ 154.1 $ 146.1 $ 8.0 7% $ 3.3 '. $ 4.4 $ 4.2 $ _ 0.2 8% :$ 11:6 1 ', $ 159.1 $ 162.8 $ (3.7) 8% $ 3.3 ' $ 4.5 $ 4.7 $ (0.1) 9 %''$ 116 1 : $ 165.1 $ 182.6 $ 17.5 9% $ 3.3 $ 4.7 $ 5.2 $ 0.5 *Used preliminary projected revuenue growth for FY07 as discount rate for NPV calculation MWRA Water Cost History and Forecast Presentation to the Board of Selectmen November 29, 2005 FY07 Actual Forecast* Cumulative Average FY01 6.74% 20.80% 10.40% FY02 15.75% 15.75% 15.75% FY03 6.95% 23.80% 11.90% FY04 9.18% 35.17% 11.72% FY05 10.09% 48.80% 12.20% FY06 20.87% 79.86% 15.97% FY07 13.17% 13.17% 13.17% FY08 6.74% 20.80% 10.40% FY09 7.98% 30.44% 10.15% FYI 4.30% 36.05% 9.01% FYI 9.61% 49.12% 9.82% FYI -0.01% 49.11% 8.18% FYI 1.80% 51.79% 7.40% FY14 4.07% 57.97% 7.25% FYI 1.00% 59.55% 6.62% * from Leo Norton (MWRA) 7/1/05 El MWRA +7% M Financing E Capital 0 O &M +5% El MWRA +7% 91 Financing E Capital ED O &M +5% 1 III Iii II $5,000 ,000 $(5,000,000) $(10,000,000) $(15,000,000) $(20,000,000) $(25,000,000) $(30,000,000) $(35,000,000) $(40,000,000) $(45,000,000) $(50,000,000) $(55,000,000) Cumulative Advantage of 100% MWRA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Fiscal Years MWRA 6% MWRA 7% MWRA 8% MWRA 9% Cumulative Advantage of ' 1 111 i 11 ' 111 i 11 1 Iil 111 ' 111 111 ' 1 111 111 R Iii 111 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 — MWRA as forecast; then +6% — MWRA forecast +1 %; then +6% E MO M 990 MOM MOM $(40,000,000) $(60,000,000) �� Cumulative Advantage of 100% MWRA —MWRA as forecast; then +9 % MWRA forecast +2 %; then +90 /Q State Transportation Building Ten Park Plaza, Suite 2150 Boston, MA 02116 -3968 Tel. (617) 973 -7100 Fax (617) 973 -8855 TTY (617) 973 -7089 www.hostonmpo.org John Cogliano MPO Chairman A cooperative transportation - planning effort of the: Executive Office of Transportation City of Boston City of Everett City of Newton City of Salem Federal Highway Administration (ex officio) Federal Transit Administration (ex official Massachusetts Bay Transportation Authority Massachusetts Bay Transportation Authority Advisory Board Massachusetts Highway Department Massachusetts Port Authority Mossachusetts Turnpike Authority Metropolitan Area Planning Council Regional Transportation Advisory Council (ex officio) Town of Bedford Town of Framingham Town of Hopkinton C( cgc5 BOSTON METROPOLITAN PLANNING ORGANIZATION November 9, 2005 Peter I. Hechenbleikner Town Manager Town of Reading 16 Lowell Street Reading, MA 01867 -2683 Dear Mr. Hechenbleikner: W NOV 22 M I!: 29 Thank you for your comment regarding the Route 28 (Main Street) reconstruction project in Reading. The Boston Region Metropolitan Planning Organization (MPO) recognizes the importance of this project and programmed it in the fiscal year 2006 element of the fiscal years 2006 -2010 Transportation Improvement Program (TIP); please make sure that all project development needs in order for this project to be advertised for construction in fiscal year 2006 including the submission of right -of -way plans to MassHighway as soon as possible. The MPO appreciates the involvement of the Town of Reading in the development of the fiscal years 2006 -2010 TIP including the submission of project information forms and involvement in Municipal Input Day. These are important components of the MPO planning process. The MPO endorsed the fiscal years 2006 -2010 TIP at its August 11, 2005 meeting. The TIP is available on the MPO Web site at www.bostonmpo.org. CD or printed copies of the documents are available by request through the MPO staff. Copies are available in accessible formats. If you have questions please contact Sean Daly (617- 973 -7140, seandaly @ctps.org). We have also made sure that you are on the mailing list for TRANSREPoRT, the MPO's monthly transportation newsletter. Please send your e -mail address to publicinformation @ctps.org to receive TRANSnEPORT electronically or to be included in the MPO's one -way list - server, MPOINFO, for important notices. The Boston Region MPO thanks you for your interest in the development of the fiscal years 2006 -2010 TIP and appreciates your participation in the document's public review. Sincerely, Kenneth S. Miller, Chair Transportation Planning and Programming Committee 3� Page 1 of 4 L c 6e--s Hechenbleikner, Peter From: JSeagrams @aol.com Sent: Tuesday, November 22, 2005 9:18 PM To: Reading - Selectmen; Town Manager Subject: Jordan's Letter Greenhouse Acres Condominiums Board of Trustees Carnation Circle Reading, MA 01867 -2774 November 22, 2005 Reading Board of Selectman Camille Anthony, President Reading Town Hall 16 Lowell Street „ Reading, MA 01867 -2774 SUBJECT: Jordans Parking Lot Dear Ms. Anthony, The voters (over 200) of Greenhouse Acres (GA) are very concerned by the recent actions of the Board of Selectman granting a special permit to Jordans Furniture for the opening of the IMAX Theatre on Christmas Day. After all of our pre - Jordans meetings and after the opening meetings and complaints, your lighting consultant submitted a report indicating that Jordans parking lot lights were not in compliance with the law. This is what GA and other neighbors have been complaining about for over two years. Now that our complaints have some validity, we anxiously await some corrective action and support from the Board and Jordans. We feel violated that the Board would grant special permits to Jordans before they address and correct the lighting problems that we have been suffering with for all this time. At previous meetings attended by our committee and representatives of Jordans we were told that Jordans is a "FAMILY" friendly business. We now are told that very shortly Jordans will be looking to be granted a liquor license for the new Fuddrucker's Restaurant. Hard to believe that family friendly Jordans is going to have a liquor establishment right next to an ice cream store that is frequented by a large number of our teenagers. We are anxious to see the board's position on this future request. We are very concerned that the Board seems more concerned with Jordans than the best interests of the voters. A short time ago the town government came to the voters and asked for overrides to fund the town government and schools. The voters supported that request in an effort to maintain the high 11/23/2005 3 ki Page 2 of 4 quality of life that Reading represented. We now see that same government bringing in numerous commercial operations that will have a negative impact on Reading's residential lifestyle. We respectfully request that you revisit this question. Sincerely, Richard A. Nazzaro President Frederick Sawin Trustee Joie Gerrish Trustee Jean Humphrey Trustee Deidre Lyons Trustee CC: Reading Selectman Reading Town Manager Original signed copy delivered to Reading Town Clerk in hand. Greenhouse Acres Condominiums Board of Trustees Carnation Circle Reading, MA 01867 -2774 11/23/2005 3i... Page 1 of 5 Hechenbleikner, Peter From: bonazoli @comcast.net Sent: Wednesday, November 23, 2005 9:38 AM To: JSeagrams @aol.com; Reading - Selectmen; Town Manager Subject: Re: Jordan's Letter Dear Mr. Nazzaro and Trustees of GA As Ms. Anthony was not present when the question came before the Board of Selectmen I would like to respond so you may understand the three to one vote in favor of the Christmas Day operation of the theater only. The residence of GA should know this decision was made with much debate, thought and consideration to the surrounding neighbors. The lighting situation is something we want to correct as soon as possible and take it very seriously. This is why we hired TLA. As we would not be meeting with Jordan's to go over the results of the lighting consultant until the first (possible second) week in December we felt should proceed in the spirit of cooperation and that Jordan's will continue their support to correct the problem(s) as they stated they would in our first meeting. In speaking for myself I will be sure to let Jordans understand the town's kindness should not be interrupted as a sign of weakness. Although you have not be privy to all our meetings you should know your concerns and needs have always been our top most priority and will continue to be fought for. As you pointed out there are other major decisi ons pending for the Jordan's property that will be considered during our discussion with them and the lighting consultant. As a side note I believe there is a misunderstanding of the TLA report on the state regulations. The parking lot lights are not in violation it is the facade lighting up the side of the building. Certainly Mr. Lemons pointed out many improvements can be made to the parking lot lights but just wanted people to understand they are not in violation of any laws. Thank you for your letter and please continue to reach out to myself or the board. Have a Happy and Safe Thanksgiving. James Bonazoli 781- 944 -5116 Original message -------- - - - - -- Greenhouse Acres Condominiums Board of Trustees Carnation Circle Reading, MA 01867 -2774 November 22, 2005 Reading Board of Selectman 11/23/2005 '301, Page 2 of 5 Camille Anthony, President Reading Town Hall 16 Lowell Street Reading, MA 01867 -2774 SUBJECT: Jordans Parking Lot Dear Ms. Anthony, The voters (over 200) of Greenhouse Acres (GA) are very concerned by the recent actions of the Board of Selectman granting a special permit to Jordans Furniture for the opening of the IMAX Theatre on Christmas Day. After all of our pre - Jordans meetings and after the opening meetings and complaints, your lighting consultant submitted a report indicating that Jordans parking lot lights were not in compliance with the law. This is what GA and other neighbors have been complaining about for over two years. Now that our complaints have some validity, we anxiously await some corrective action and support from the Board and Jordans. We feel violated that the Board would grant special permits to Jordans before they address and correct the lighting problems that we have been suffering with for all this time. At previous meetings attended by our committee and representatives of Jordans we were told that Jordans is a MceFAMILYa€ friendly business. We now are told that very shortly Jordans will be looking to be granted a liquor license for the new Fuddruckera €TMs Restaurant. Hard to believe that family friendly Jordans is going to have a liquor establishment right next to an ice cream store that is frequented by a large number of our teenagers. We are anxious to see the boarda €TMs position on this future request. We are very concerned that the Board seems more concerned with Jordans than the best interests of the voters. A short time ago the town government came to the voters and asked for overrides to fund the town government and schools. The voters supported that request in an effort to maintain the high quality of life that Reading represented. We now see that same government bringing in numerous commercial operations that will have a negative impact on Readinga €TMs residential lifestyle. We respectfully request that you revisit this question. Sincerely, Richard A. Nazzaro President Frederick Sawin Trustee Joie Gerrish 3 11/23/2005 Page 3 of 5 Trustee Jean Humphrey Trustee Deidre Lyons Trustee CC: Reading Selectman Reading Town Manager Original signed copy delivered to Reading Town Clerk in hand. Greenhouse Acres Condominiums Board of Trustees Carnation Circle Reading, MA 01867 -2774 November 22, 2005 Reading Board of Selectman Camille Anthony, President Reading Town Hall 16 Lowell Street Reading, MA 0 18 67-2774 SUBJECT: Jordans Parking Lot Dear Ms. Anthony, The voters (over 200) of Greenhouse Acres (GA) are very concerned by the recent actions of the Board of Selectman granting a special permit to Jordans Furniture for the opening of the IMAX Theatre on Christmas Day. After all of our pre - Jordans meetings and after the opening meetings and complaints, your lighting consultant submitted a report indicating that Jordans parking lot lights were not in compliance with the law. This is what GA and other neighbors have been complaining about for over two years. G 3 11/23/2005 Page 4 of 5 Now that our complaints have some validity, we anxiously await some corrective action and support from the Board and Jordans. We feel violated that the Board would grant special permits to Jordans before they address and correct the lighting problems that we have been suffering with for all this time. At previous meetings attended by our committee and representatives of Jordans we were told that Jordans is a a €oeFAMILYM friendly business. We now are told that very shortly Jordans will be looking to be granted a liquor license for the new Fuddruckera €TMs Restaurant. Hard to believe that family friendly Jordans is going to have a liquor establishment right next to an ice cream store that is frequented by a large number of our teenagers. We are anxious to see the boarda €TMs position on this future request. We are very concerned that the Board seems more concerned with Jordans than the best interests of the voters. A short time ago the town government came to the voters and asked for overrides to fund the town government and schools. The voters supported that request in an effort to maintain the high quality of life that Reading represented. We now see that same government bringing in numerous commercial operations that will have a negative impact on Readinga €TMs residential lifestyle. We respectfully request that you revisit this question. Sincerely, Richard A. Nazzaro President Frederick Sawin Trustee Joie Gerrish Trustee Jean Humphrey Trustee Deidre Lyons Trustee CC: Reading Selectman Reading Town Manager Original signed copy delivered to Reading Town Clerk in hand. 3 G 11/23/2005 t,( c \A [OLP(�, READING ICE ARENA AUTHORITY, INC. (A Not - For - Profit Organization) GRAY, GRAY & GRAY, LLP CERTIFIED PUBLIC ACCOUNTANTS �7 X,