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HomeMy WebLinkAbout1996-01-17 Water and Sewer Advisory Committee MinutesWATER & SEWER ADVISORY COMMITTEE MINUTES January 17, 1996 A meeting of the Water & Sewer Advisory Committee was held at 7:47 P.M. on Wednesday, January 17, 1996 in the Berger Room, Reading Town Hall, 16 Lowell St., Reading, MA. In attendance were Chairman Gail Wood, Secretary Stewart Chipman, Committee Member Richard Moore, Public Works Director Ted McIntire and Public Works Supervisor of Business Services, David Lee. Approval of Minutes It was moved by Richard Moore, seconded by Stewart Chipman and voted 3-0 to approve the minutes of November 15, 1995 as revised. The revision being substituting the words. "the Committee" instead of the words "Richard Moore" under the heading of Enterprise Funds and Bonding. It was moved by Stewart Chipman, seconded by Richard Moore, and voted 3-0 to accept the minutes of December 20, 1995 as written. FY97 Water Rates David Lee reviewed the rate information and calculations which he had prepared for the Committee. The proposed rate for water in FY1997 is $2.55 per 100 cubic feet. The estimated FY97 usage was estimated to be 10% higher than the FY96 estimate. The Department recommends transfering $147,168. from the Emergency/Reserve Fund and maintain a balance of $200,000 in FY97. Gail Wood inquired about the status of invoice #3, which the Town had submitted to Cumberland Farms/Gulf. The Town has not received payment of this invoice and the matter has been referred to Town Counsel, Ted Cohen. The Committee voiced it's concern regarding the potential substantial cost to dispose of the stockpiled residuals, located adjacent to the compost area off Strout Ave. The Town has hired a Consulting Engineer, Malcolm Pirnie Inc., who is preparing information to be submitted to the Department of Environmental Protection on behalf of the Town,to pursue a Type I classification for this material. A Type I classification will allow the material to be land applied. It is expected that this process and decision by DEP will take approximately 8 weeks. The Committee discussed the . level of funding that needs to be maintained in the Reserve/Emergency Fund. Stewart Chipman moved to increase the Water Reserve/Emergency Fund to $300,000. The motion was seconded by Gail Wood. Stewart feels that increasing the Fund to this level will allow the Town to better stabilize the rates in the near future,in light of the projected Capital Improvement Plan. Also the Water Division will be operating at a higher degree of financial risk than it has previously. The motion was approved by a vote of 3-0. FY97 Sewer Rates David Lee reviewed the information he had prepared regarding the projected sewer rates for FY97. A rate of $3.42 per 100 cubic feet was projected for FY97 based on the Board of Selectmen policy to maintain $200,000 in the Reserve Fund, and projecting the FY97 MWRA assessment to the Town of Reading being equal to the FY96 actual assessment. Richard Moore is concerned that by transferring $453,000 out of the Sewer Reserve/Emergency Fund the rate is dropping too much and could result in a large increase in FY98. The Committee discussed the option of accelerating the Inflow/Infiltration house to house inspection from two years to one year. This would increase the proposed FY97 Sewer Rate by $.20 to a total of $3.62 per 100 cubic feet. This program also has the potential of reducing the inflow into the sewer system and therefore, reducing the MWRA assessment in the future. Richard Moore moved to increase the Sewer Capital by $112,500 in FY97 by completing the house to house inspections in one year. The motion was seconded by Stewart Chipman and approved by a vote of 3-0. The projected rate would then increase to approximately $3.58 per 100 cubic feet in FY97. Second Water Meters The Committee reviewed letters, memos, and Board of Selectmen minutes regarding second waters and identified the pros and cons of allowing second water meters. The factors discussed were the shifting of costs, the policy not being consistent with the present rate methodology of the MWRA, the recent policy not uniformly available, increased administrative costs, abuse of meter, no monitoring , and the fact that outside use of water does not go into the sewer system. Following an extensive discussion the Committee requested that the Public Works Department prepare information regarding the MWRA sewer methodolgy presently in effect, the MWRA previous methodolgy, the recent Town of Reading policy on second water meters and the Town's sewer rate methodology as it relates to that of the MWRA. Stewart Chipman will send information to Ted McIntire regarding the Water & Sewer Advisory Committee's previous presentation to the Board of Selectmen. Old/New Business The next meeting of the Water & Sewer Advisory Committee will be Wednesday, February 21, 1996 at which time a Water & Sewer Rate Hearing will be held, and discussions on second water meters and the Town's Inflow/Infiltration program. It was moved by Richard Moore, seconded by Stewart Chipman and approved by a vote of 3-0 to adjourn the meeting at 10:58 P.M.