HomeMy WebLinkAbout1995-03-15 Water and Sewer Advisory Committee MinutesWATER & SEWER ADVISORY COMMITTEE MINUTES
March"15, 1995
A meeting of the Water & Sewer Advisory committee was held at
7:30 P.M. on March 15, 1995 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 McIn-
tire and DPW Supervisor of Business Services, David Lee.
Water & Sewer Rate Hearing
The Hearing was opened at 7:30 P.M.
Richard Moore spoke about his concern with rate shock and pos-
sible emergencies in the area of Sewer Capital projections and a
Reserve/Emergency Fund balance. Stewart Chipman stated that it
is his desire to maintain $200,000 in the Water/Emergency Reserve
Fund and favors bonding the residual related work, i.e. cleaning
of lagoons, construction of the holding tank and sewer service
construction. Gail Wood indicated that work on water storage
tanks should be included in any bonding program for the Water
Department. The Committee must consider the indebtedness of the
Town as a whole, not just the enterprise system, and there is a
need to get a recommendation from the Finance Department of the
Town. She noted that there is no bondincr.authorization on the
Warrant in April 1995. Richard Moore added that if the Town can
manage it's enterprise funds by not incurring additional costs
for interest liability and bonding, then it should not proceed in
that direction.
Stewart Chipman recommended that the committee write a short
white paper to identify the opinions of the Water & Sewer Ad-
visory Committee regarding residuals and the Reserve/Emergency
Ffund balance. The Committee noted it's concerns regarding the
potential volatile situation with residuals handling and a con-
cern as to whether Cumberland Farms/Gulf will pay the most recent
invoice prior to July 1, 1995.
It was moved by Richard Moore to recommend that the water rate be
set at $2.52 per 100 cubic feet effective on the August 1, 1995
billing, with a minimum bill of $12.60 per billing. In addition
it was recommended that the amount of $368,000 be transferred
from the Water/Reserve Emergency fund leaving a balance of
$200,000. It was seconded by Stewart Chipman and approved by a
vote of 3-0.
The Committee recommended a balance of $200,000 in the Water
Reserve/Emergency fund for the following reasons:
1. It meets the Selectmen's guidelines:
2. The Department feels comfortable with $200,000 in this fund
in order to handle the majority of minor emergencies;
3. Payment of the $250,000 invoice by Cumberland Farms/Gulf may
not be timely.
Richard Moore moved to recommend that the sewer rate be set at
$4.53 per 100 cubic feet effective on the August 1, 1995 billing,
minimum bill to be $22.65. In addition it was recommended
$104,839 be transferred from the Sewer Reserve/ Emergency Fund
leaving a balance of $200,000. It was seconded by Stewart Chip-
man and approved by a vote 3-0.
It was moved by Stewart Chipman seconded by.Richard Moore and ap-
proved by a vote of 3-0 to close the Water & Sewer Rate Hearing
at 9:30 P.M.
The Committee instructed Ted McIntire to prepare a letter to the
Chairman of the Board of Selectmen, to be signed by Gail Wood,
outlining the Committee's recommendations and the reasons for
these recommendations. A draft of this letter is to be sent to
all Committee members.
It was moved by Stewart Chipman seconded by Gail Wood and ap-
proved by a vote of 3-0 to adjourn the meeting at 9:50 P.M.