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HomeMy WebLinkAbout2001-12-19 Water and Sewer Advisory Committee MinutesJ, WATER & SEWER ADVISORY COMMITTEE MINUTES r t December 19, 2001 S S. A meeting of the Water & Sewer Advisory Committee was held at 7:35 Pl on W~dinds ay; December 19, 2001, in the Berger Room, Reading Town Hall, 16 Lowell Street, Reading, MA. In attendance were Chairman Richard Moore, Secretary Robert Salter, Committee members Steven Oston and Stephen Crook, DPW Director Ted McIntire and Board of Selectmen Liaison Gail Wood. Meeting Minutes It was moved by Steve Oston, seconded by Bob Salter and approved by a vote of 4-0 to approve the minutes of November 14, 2001 as written. Future Agendas Staff had provided a matrix identifying a number of issues discussed by the Committee over the last three calendar years and the months those issues were discussed. The matrix will be used as a first step in developing a yearly meeting agenda plan. Water/Sewer Rate Study The Committee continued its discussion on the Water and Sewer Rate Study and report prepared by David Russell, continuing with the key decision points identified in the report. The Committee continued its discussion on key decision point number 4: 4. Minimum Billing The Committee discussed the advantages and disadvantages identified in table 6-1 and the estimated charges with and without a minimum bill. Bob Salter identified one option of keeping the minimum to two hundred cubic feet at a level of $7.32 per quarter and then charging a usage rate starting at zero consumption. One major disadvantage of minimum bills is that a minimum bill does not promote water conservation. There is no incentive to use less than the minimum allowance. Another alternative identified by Mr. Salter is to have different minimum charges based on meter size. A building with a 5/8" meter could get charged at a two hundred cubic feet minimum, and a building with a 1" meter would get charged a minimum bill equal to a fee based on a larger volume. The options are to continue with a two hundred cubic foot minimum bill, institute a service charge based on the consultants recommendation, or a fee somewhere in between the two dollars levels. The consensus of the Committee was not to adopt a customer service charge, but maintain the existing two hundred cubic foot minimum per quarter. Minutes - WSAC December 19, 2001.doc Page 1 of 3 5. Fire Protection Service The Committee discussed changing from a token cost of $0.25 per sprinkler head per year to one which reflects the actual cost of supplying this service to buildings. It was noted that the sprinkler service to buildings are not metered. The consensus of the Committee was to maintain the existing service charges. 6. Uniform Consumption Charge The question as to whether the Town should continue the current uniform rate charge or adopts for different customer classes with cost based rates, with the potential of adopting increasing block rates in the future. The consensus of the Committee was not to implement service charges, continue with one customer class and not to institute increasing block rates at this time. The Committee felt that the Town should wait until monthly billing is initiated and operating, then evaluate the benefits of seasonal and/or increasing block rates. 7. Lifeline Rates. The consensus of the Committee is not to recommend adopting lifeline rates for either its water customers or sewer customers. The Town does offer homeowners meeting certain income criteria to defer payment of water and sewer usage bills by having the Town put a lean on the property so that payment could be made at the time of the house sale. 8. Discounts. The Committee discussed the option of discontinuing the 10% discount for early payment of water and sewer bills. It is the recommendation of the Town Finance Director, Beth Klepeis, to maintain the 10% discount as it maintains a positive cash flow. It is the consensus of the Committee to maintain the 10% discount on early payment of water and sewer bills. The Committee also discussed other issues of fixed charges and consumption charges that were identified by the consultant, as follows; 9. Public Fire Service Charges. The Water Department previously charged the General Fund for the maintenance of fire hydrants throughout Town. This charge was eliminated many years ago. It is the consensus of the Committee to not charge for public fire service. 10. Decreasing Block Rates. As decreasing block rates are illegal in the Commonwealth of Massachusetts it was the consensus of the Committee not to recommend such. Ted McIntire informed the Committee that the presentation to the Board of Selectmen regarding Water and Sewer Rates is scheduled for January 29, 2002. Richard Moore and Ted McIntire will work together to develop a-presentation for the Board of Selectmen. Included in the presentation will be a mission statement about the Water and Sewer Minutes - WSAC December 19, 2001.doc Page 2 of 3 ~kM1 Advisory Committee, present rate process, discussion of the rate study performed by David Russell with emphasis on the cost of service study regarding providing fire protection and service to consumers. Ted will complete the matrixes on all issues discussed and distribute to the Water and Sewer Advisory Committee for comments. General The next meeting of the Water and Sewer Advisory Committee will be January 16, 2002. The emphasis at that meeting will be on the presentation to the Board of Selectmen on the Water and Sewer Rate Study and recommendations by the Water and Sewer Advisory Committee. Future agendas will include the FY2003 Budget and a meeting with Kerri Mackin regarding the annual report card. Securi Ted McIntire and Peter Tassi attended a -teleconference on security of water systems and infrastructures. The teleconference was sponsored by the American Water Works Association. It was moved by Steve Oston, seconded by Bob Salter and approved by a vote of 4-0 to adjourn the meeting at 10:28PM. Minutes - WSAC December 19, 2001.doc Page 3 of 3