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HomeMy WebLinkAbout2003-03-19 Water and Sewer Advisory Committee MinutesWATER & SEWER ADVISORY COMMITTEE MINUTES March 19, 2003 E "IF ?r t 3 SS. m 1,JL ~j Ait 113 A meeting of the Water & Sewer Advisory Committee was held at 7:42 PM on Wednesday, March 19, 2003, in the Berger Room, Reading Town Hall, 16 Lowell Street, Reading, MA. In attendance were Chairman Richard Moore, Secretary Stephen Crook, Committee members Robert Salter, Steven Oston and John Wood, DPW Business Supervisor David Lee and DPW Director Ted McIntire. Meeting Minutes It was moved by John Wood, seconded by Steve Oston and approved by a vote of 5-0 to accept the minutes of February 26, 2003 as amended. FY04 Water and Sewer Rates Dave Lee distributed a handout which included an overview for FY2004. David noted that with the new radio read program and the changes in billing cycle, the Town will be billing five times in FY2003. With the fifth billing, David is projecting an overage in receipts for FY2003 in the amount of $444,000 in water and $696,000 in sewer. Projected water reserve balance after estimated transfers in FY03 is $1,210,000 and the balance in the sewer reserve is $1,189,000. The FY2004 Capital Program in water consists of $811,000 in water distribution and $5,423,000 for the Water Treatment Plant. Assuming bonding in the amount $4,932,000 it would leave a net amount of $1,302,000. Sewer Capital will be in the amount of $336,000. David noted that the operating budgets at this time have not been approved by the Town Manager and the timing of the bonding is unknown. Reserve Funds Sewer Reserve - The Committee discussed the reserve funds in this area and recommended that we use funds to cover all costs of capital items and to reflect a zero increase in rate from the current FY2003 rate. In general, the Committee was receptive to using the reserve funds in an effort to minimize water and sewer rate increases, which should help soften the financial stain on residents. David indicated that he would not expect the reserves to be reduced below present level if FY04 sewer rates are equal to the FY03 rates. There was a discussion on the Inflow/Infiltration program which is ending in FY06 according to the Capital Improvement Plan. David indicated that he expected the level of effort to be reduced to $100,000 per year in the years after FY06 with a reduction in maintenance required because of the work being done presently. The Committee discussed various alternatives on the use of reserve funds over a period of time. It was suggested that the drawn down of reserves be by a decreasing amount over a period of time so that at the fifth year the balance was to be $100,000 in the Sewer Reserve Fund. David will work on various scenarios to see to minimize rate shock in both water and sewer. Minutes - WSAC March 19, 2003.doc Page 1 of 2 It was moved by Stephen Crook, seconded by John Wood and approved by a vote of 4-0 to instruct staff to incorporate various options in the rate projections to include evaluation of bonding or not bonding water main project, looking at billing frequency options, and to request that Beth Klepeis attend the next Water and Sewer Advisory Meeting. David indicated that he would not recommend more frequent billing due to the problems with the recently installed radio read equipment. Water Treatment Plant Tour The tour has been scheduled for Saturday, March 29, 2003 at 9:OOAM with the Finance Committee, Board of Selectmen, and the Water and Sewer Advisory Committee invited. Water Conservation Plan Ginger Hartman from CDM will be requested to attend the next meeting and staff will submit a draft of the program to the Committee prior to the meeting. Water Conservation and Management Plan The Committee discussed the outdoor water restrictions that are listed under this plan. It was moved by Bob Salter, seconded by Steve Oston and approved by a vote of 5-0 to maintain the existing program. It was moved by Steve Oston, seconded by Stephen Crook and approved by a vote of 5-0 to adjourn the meeting at 9:52 PM. Minutes - WSAC March 19, 2003.doc Page 2 of 2