No preview available
HomeMy WebLinkAbout1997-07-16 Water and Sewer Advisory Committee MinutesC____ WATER & SEWER ADVISORY COMMITTEE MINUTES July 16, 1997 A meeting of the Water & Sewer Advisory Committee was held at 7:40 P.M. on Wednesday, July 16, 1997 in the Berger Room, Town Hall, 16 Lowell Street, Reading, MA. In attendance was Chairman Gail Wood, Secretary Stewart Chipman, Committee Member Richard Moore, DPW Director Ted McIntire, and Town Accountant Richard Foley. Meeting Minutes It was moved by Stewart Chipman, and Seconded by Gail Wood and approved by a vote of 2-0-1 (Moore Abstaining) to approve the minutes of June 18, 1997 as written. Stabilization Fund The Committee welcomed Richard Foley to the meeting. Stewart indicated that there were two factors which pointed to the need for establishing a stabilization fund: water and sewer rates have fluctuated over the years, and rates have been buffered by differing capital projects. Richard Foley presented a handout of chapter 44 section 53171/2 related to enterprise funds. He highlighted portions of the law which would allow the Town to: 1. invest for a longer period of time, i.e. 1 year or more; 2. set water and sewer rates that would generate monies in excess of the budget which could be used for capital expenditures and; 3. put unplanned excess revenues into a reserve fund - this is presently done now. Richard Foley recommended that the Committee develop a policy, go to the Town Manager and the Board of Selectmen for adoption, to develop a separate fund for capital/rate stabilization. There is no statute presently that would limit the balance in the fund. Stewart indicated that the Committee would talk to the Reading Municipal Light Department regarding their policy on a reserve balance. Richard Foley indicated that the Finance Committee has adopted a policy on the amount of free cash as a percentage of the Town budget. Gail Wood will contact Finance Committee member Jim Keigley and get a copy of the policy. The Committee needs to show what would have happened with water and sewer rates if there was, for instance, $500,000 in the reserve fund. It appears that 5% of the water and sewer budgets for reserve is not sufficient. Stewart had spoken to David Lee and he has some ideas of rate levels that would trigger increasing or reducing the reserve fund. Richard Foley identified another option of borrowing money for capital projects with the provision that the Town needs to set a floor for the minimum amount to borrow. Richard Moore J was concerned that even with borrowing, rates would increase by over one dollar based on the estimated costs of a new water treatment plant. The Committee thanked Richard Foley for attending the meeting and for his advice and guidance regarding the establishment of a Capital/Rate Stabilization Fund. Mr. Foley left the meeting. It was generally agreed that there is a need for a stabilization fund that should be maintained for many years. It does not make fiscal sense to use all of the reserve fund on a yearly basis. Stewart will put together two panels and Richard will put together one panel for a presentation to the Board of Selectmen, for discussion at the next Water and Sewer Advisory Committee meeting in late August. Richard Moore offered the following guidelines for future discussion: 1. if rates are projected to go down by up to 5%, the rate should not change; 2. if the rates are projected to dropped by more than 5%, the rate should be reduce by that percentage less 5%; 3. if the rates projected to be increases by more than 5% plus the rate of inflation, and Stabilization fund should be used to offset the increase no more than 1/3 the balnace in the Stabilization fund. 4. the Town needs a cap for the reserve fund, possibly based on a percentage of the budget. FY98 Water and Sewer Rates Gail Wood and Ted McIntire presented the recommendations for the FY98 rates to the Board of Selectmen on July 15, 1997. After much discussion, the recommended rates were approved by the Board of Selectmen by a vote of 5-0. George Hines requested that the Committee look into more frequent billing for water and sewer, possibly six billings a year. It was moved by Richard Moore, seconded by Stewart Chipman that staff prepare a report identifying the cost related to increasing billings for water and sewer to six per year and twelve per year. The motion was approved by a vote of 3-0. Daniel Ensminger had requested a report on the cost incorporated in the minimum bills set by the Board of Selectmen. Ted will have staff prepare the information for the Board of Selectmen. Water Update Ted reported that the pump test for Well#13 had successfully been completed during the month of June. And Well#66-8 was activated for a pump test on July 3, 1997. It is expected that this. pump test will be completed in early August, at which time a meeting will be held with the Department of Environmental Protection, the Consultants for Cumberland Farms/Gulf, and the Town of Reading to determine the continued operation of both wells and monitoring requirements. Ted McIntire and Peter Tassi have met with Weston and Sampson Engineers and a Professor from University of Massachusetts-Lowell (a Reading resident) to outline well activation and testing locations and frequency related to the taste and odor problems the Town had experienced recently. The first round of testing will be over a one month period and will include the activation of Town Forest well. The second phase will incorporate the activation of B-line well. Bedrock Well The Town received one proposal from D.L. Maher Inc. of North Reading for the fracture trace study related to the development of a bedrock well. The proposal is being reviewed and we expect to award a contract by the end of next week. Miscellaneous The Committee encouraged Ted McIntire to report to the Board of Selectmen and prepare articles for Reading Notes related to the update on the bedrock well, the award from D.E.P. regarding the water quality, and an update on the water quality/supply. Ted noted that the water restriction notice will be included in the August 1, 1997 water and sewer bill. Water Treatment Plant - the Town advertised for a Grade 3 Water Treatment Plant Operator and a Operator in Training. Two of the applicants for the Grade 3 Operator were interviewed and it was decided that their qualifications did not meet the needs of the Town and we will be sending notices directly to all of the licensed Grade 3 and Grade 3 Operators in the state. In regards to the operator in training, we received approximately 15 applications, interviewed 5 candidates and will be recommending the appointment of a candidate to the Town Manager this week. The next meeting of the Water and Sewer Advisory Committee will be held at 7:30 PM on August 27, 1997. The major item of discussion will be the stabilization fund and the preparation of a presentation to the Board of Selectmen. It was moved by Richard Moore, and Seconded by Stewart Chipman and approved by a vote of 3=0 to adjourn the meeting at 9:27 PM.