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HomeMy WebLinkAbout1998-02-19 Water and Sewer Advisory Committee MinutesT10 C ER RE AD I ~ k p, h ,4TER & SEWER ADVISORY COMMITTEE MINUTES February 19, 1998 6 s'a ,s'6 All: 112-1 A meeting of the Water & Sewer Advisory Committee was held at 7:40 P.M. on Thursday, February 19, 1998 in the Berger Room, Reading Town Hall, 16 Lowell St., Reading, MA. In attendance were Chairman Gail Wood, Committee member Richard Moore, Board of Selectmen Liaison Sally Hoyt and DPW Director, Ted McIntire. Meetinje Minutes It was moved by Richard Moore, seconded by Gail Wood and approved by a vote of 2-0 to accept the minutes of January 22, 1998 as written. It was moved by Richard Moore, seconded by Gail Wood and approved by a vote of 2-0 to accept the minutes of January 31, 1998 as written. It was moved by Richard Moore, seconded by Gail Wood and approved by a vote of 2-0 to accept the minutes of February 5, 1998 as written. Gas Spill Site/Water Supply Update A four week pump test has been completed for production wells # 13 and # 15 and a pump test for production well #66-8 was started last week, and will continue for a four week period. Monitoring is being performed on water levels and quality testing. To date, levels of contamination have been low or non-detectable and meet drinking water standards. The pump tests will be completed in mid-March at which time the Town will be meeting with Department of Environmental Protection and Cumberland Farms/Gulf. Fracture Trace Study Representative from the D.L. Maher Company met with staff from the Department of Public Works and Conservation Commission to give an update on their progress on the project. They have identified eight to nine potential locations and will be outlining their recommendations in a report to the Town expected to be completed by April 1, 1998. The findings will be discussed at a future Water and Sewer Advisory Committee meeting. FY99 Water/Sewer Budgets The Committee reviewed the Town Managers recommendations which included minor changes from the Departments proposed budgets. Major increases in the Water Budget were for sewer discharge cost to the MWRA from Water Treatment Plant residuals and hazardous waste collection funding recommended in FY99. It was noted that the most recent figures from the MWRA reflected a $13,000 increase over FY98. Stabilization Fund/Rate Setting Policy After much discussion, it was decided that with the assistance of DPW staff the Water and Sewer Advisory Committee would prepare a policy on rate stabilization for water and sewer to be presented to the Board of Selectmen at a future date. Richard Moore will prepare examples of the effects of rate stabilization. Richard again requested water usage information on actual verses projected and in addition has requested information actual verses project revenues over the past ten years. The Committee felt that realistically the establishment of a Stabilization plan for water and sewer would not be adopted by the Selectmen until the Summer/Fall of 1998. The policy needs to be written, reviewed, and recommended by the Water -and Sewer Advisory Committee, presented to the Board of Selectmen, and go through a series of hearings prior to adoption. It was decided that the Committee should proceed under the assumption that there would be no stabilization plan adopted during their FY99 water and sewer rate review and recommendation to the Board of Selectmen. Water/Sewer Rates The Committee reviewed the package prepared by David Lee which showed projected water and sewer rates with and without rate stabilization. The projected FY99 rates reflected the Town Managers recommended budgets for FY99 and the most recent sewer assessment by the MWRA. FY99 Water Rates Projected FY99 water rate without stabilization would be $3.42, an increase of 10.1% over FY98. With stabilization the maximum increase in water rate would be 6%. which reflects a rate of $3.30 per one hundred cubic feet and would require a transfer of $84,000 from the Rate Stabilization Fund. Present level in the Water Enterprise Fund is $258,379, of this amount $200,000 is earmarked for the Reserve/Emergency Fund, and would leave $58,379 in the Rate Stabilization Fund. Under the guidelines, only one-third of this amount ($19,456) could be used for rate stabilization. It was moved by Richard Moore, seconded by Gail Wood and approved by a vote of 2-0 that DPW staff prepare a FY99 rate package which reflects a $0.00 transfer from the reserve fund and one that reflects a $58,379 transfer from the reserve fund. Ted McIntire will provide information for the hearing on March 26, 1998 regarding the revenues received following the August 1997 and the November 1997 billings comparing those revenues to anticipated revenues. FY99 Seiver Rates The FY99 sewer rate projected with no stabilization reflects a 2.6% reduction from the FY98 rate of $5.11, to $4.98 per one hundred cubic feet. As the rate stabilization guidelines require a minimum of a 4% increase in sewer rate, the rate would increase to $5.31 per one hundred cubic feet. The present balance in the Sewer Enterprise Fund is $511,324 of which $200,000 is earmarked for the Reserve/Emergency Fund, and $311,324 is available for rate stabilization. Using the minimum 4% in sewer rate there would be an additional $204,000 generated for the stabilization fund in FY99. Also under the guideline, there is not a net increase over the next few years the would require a sewer rate increase of 6.5% or more. Therefore, there would be no need for prepayment of capital projects. It was moved by Richard Moore, seconded by Gail Wood and approved by a vote of 2-0 to instruct DPW staff prepare a FY99 sewer rate package which reflects a rate of $4.98 per one hundred cubic feet and no money to be transfered from the existing Reserve/Emergency Fund. It was noted that the balance in the present reserve fund of $511,324 allows the Town to retain $200,000 for reserve/emergency use and $311,324 to cover the cost of the Mill Street/Short Street sewer main construction project. Meeting Schedule The next meeting of the Water and Sewer Advisory Committee is scheduled for Thursday, March 26, 1998 at 7:30 PM. This meeting will be held to discuss general business and to include a FY99 water and sewer rate hearing. The rate hearing will be advertised and posted, as required, for 7:45 PM. The Committee also scheduled meetings for Tuesday, April 14, 1998 and Wednesday, May 20, 1998-both meetings to be held at 7:30 PM. Old/New Business The Department of Public Works is scheduled to meet with the Finance Committee on Wednesday, March 4, 1998 to review the FY99 budget. Richard Moore requested that a notice be sent to the Water and Sewer Advisory Committee advising them of this meeting. Ted McIntire will contact the Town Manager regarding scheduling a meeting of the Water and Sewer Advisory Committee with the Finance Committee to discuss its proposal for a rate stabilization program. Ted will advise the Water and Sewer Advisory Committee of the meeting date. The Committee requested copies of the Board of Selectmen meeting minutes for all meetings that the Water and Sewer Advisory Committee was present for agenda item discussions. Ted will speak to the Finance Department regarding the addition of a line on the water and sewer bill related to the Towns' MWRA assessment. The following items are to be included on the March 26, 1998 agenda: Production Well/Spill Site Update; Water Restrictions; and Revenues Generated by Rental Space. for Cellular Phone Antennas. It was moved by Richard Moore, seconded by Gail Wood and approved by a vote of 2-0 to adjourn the meeting at 10:-15 PM.