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HomeMy WebLinkAbout1995-02-09 Water and Sewer Advisory Committee MinutesWATER & SEWER ADVISORY COMMITTEE MINUTES February 9, 1995 A meeting of the Water & Sewer Advisory Committee was held at 7:40 P.M. on February. 9, 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. Minutes It was moved by Stewart Chipman seconded by Richard Moore to ac- cept the minutes of January 5, 1995 as written. It was noted by Stewart Chipman that the reference to the Board of Survey on the second page first line should be changed to Board of Selectmen. It was voted 3-0 to accept the minutes of January 5, 1995 as revised. It was moved by Stewart Chipman seconded by Richard Moore and ap- proved by a vote 3-0 to accept the minutes of January 11, 1995 as written. FY 96 Water Rates The Committee reviewed the Water Budget as recommended by the Town Manager. It was noted that the salaries-had been reduced from 3% to 2.5%. This was based on a financial evaluation by the Town's Budget Committee. In regards to Form D, Hazardous Waste, it was noted that $40,000 had been appropriated in FY 95 and then there was no appropria- tion recommended in FY -96. Ted McIntire indicated that the recommendation for FY 96 was included in the Rubbish Collection and Disposal Budget, however the Town Manager has recommended that that amount be funded under the Sewer Budget in FY 96. David Lee reviewed the Reserve Fund balance, other revenues such as service pipe renewals, construction, real estate liens and in- terest income and also reviewed the rate calculations that he had prepared. It was noted that two items requested by the Depart- ment had not been recommended by the Capital Improvement Advisory Committee. These items were related to the Consent Order that the Town agreed to with the Department of Environmental Protec- tion and were for the construction of a residuals handling facility and the removal of residuals from the temporary lagoon at the Water Treatment Plant. Ted McIntire, David Lee and Peter Tassi recently reviewed the status of projects and appropriations encumbered into Fiscal Year 1995 and determined that there would be an unexpended balance of $87,000. In addition there is a balance in the GE settlement fund of $202,000. There is presently a balance of $568,000 in the Water Reserve/Emergency Fund. When the Department prepared it's rate projections we es- timated using $100,000 for rate relief which left a balance of $468,000. Complying with the Selectmen's policy to maintain a balance in the Reserve Fund of $100,000 this would give us an ad- ditional balance of $368,000 to offset expenses. The total fund- ing available from the Reserve Fund, GE Settlement Fund and the unexpended balance for encumbered monies is $657,000. The cost to construct the holding tank and sewer line at $570,000 and clean the temporary lagoon at $250,000 is a total of $820,000. The shortfall, or appropriation required in FY 96 above the recommended operating and Capital budgets is $163,000. These figures are identified on the attached sheet titled Summary of Residuals Solution Project Funding. After extensive discussion it was moved by Richard Moore to recommend to the Capital Improvement Advisory Committee and the Town Manager to make the following changes to the Capital Im- provement Plan for FY 96: remove Wakefield Street water main at $43,200, remove Walker's Brook Drive/Ash Street water main loop in the amount of $164,500, add the residuals holding tank and sewer line in the amount $570,000 and add cleaning the temporary lagoon in the amount of $250,000. The motion was seconded by Stewart Chipman and approved by a vote of 3-0. Stewart Chipman moved to maintain $100,000 in the Reserve/Emergency Water Fund, all remaining money to be used to offset the rates, and recommended a water rate of $2.39 per 100 cubic feet. The motion was seconded by Gail Wood. After much discussion regarding the Reserve Fund balance it was voted .1o*.0, The motion lost. Stewart Chipman moved to set the water rate for FY 96 at $2.44 per 100 cubic feet with a minimum bill of $12.20 per bill effec- tive on the August 1, 1995 billing. The motion was seconded by Richard Moore and approved by a vote of 2-1 (Stewart Chipman in opposition). FY 96 Sewer Rates The Committee reviewed the Sewer Budget as proposed by the Town Manager. David Lee reviewed the Reserve Fund estimate, other revenues such as liens, interest, etc. and the rate calculations. Ted McIntire recommended that the Sewer/Emergency Fund be main- tained at $100,000 per the Selectmen's policy. He also noted' that in the last 10 years when the MWRA assessment to the Town of Reading increased that the sewer rates were also increased, now that this assessment has been reduced from the previous year he felt.that the residents should benefit from this reduction. Stewart Chipman moved to transfer $154,839 from the Sewer/Reserve Emergency Fund leaving a balance of $150,000 and that the rate be set at approximately $5.09 per 100 cubic feet with a minimum bill of $25.45 effective on the August 1, 1995 billing. The motion was seconded by Richard Moore and approved by a vote of 3-0. Old/New Business Ted McIntire informed the Committee that the Finance Committee will be reviewing the. General Public Works Budget on March 8, 1995 at 7:00 P.M. and the Water and Sewer Budgets on March 13, 1995 at 7:00 P.M. The Committee directed Ted McIntire to schedule the FY 96 Water and Sewer Rate Hearing for 7:30 P.M. on March 15, 1995. The committee was given the Selectmen's agenda for Tuesday, February 14, 1995 and it was noted that they will be discussing the sewer tie-in policy. The Committee instructed Ted McIntire to prepare a draft of a memo to the Town Manager and the Capital Improvement Advisory Committee regarding the Committee's recommendation to fund the holding tank and temporary lagoon projects as required under the Consent Order with DEP. It was moved by Stewart Chipman seconded by Richard Moore and ap- proved by a vote of 3-0 to adjourn the meeting at 10:26 P.M.