HOLDEN BOARD OF SELECTMEN
MEETING MINUTES
FEBRUARY 14, 2011
6:30PM Senior Center
Present: Chairman David White, Anthony Renzoni, Robert Lavigne,
James Jumonville, Kimberly Ferguson (arrived 8:09PM)
Others Present: Nancy Galkowski, Town Manager
Jacquie Kelly, Assistant Town Manager
Jim Shuris, DPW Director
Jim Zingarelli, Water/Sewer Superintendent
Andy Miller, Camp, Dresser & McKee Inc.
Joe Ridge, Camp, Dresser & McKee Inc.
Evan DeSilva, Camp, Dresser & McKee Inc.
Scott Carlson, Water/Sewer Advisory Board Chairman
Ken Lipka, Water/Sewer Advisory Board
John Michalack, Water/Sewer Advisory Board
Joe Pridotkas, Water/Sewer Advisory Board
Jim Dunn, Finance Committee Chairman
Elizabeth Helder, Recording Secretary
Chairman White opened the meeting at 6:33PM. He said that Sel. Ferguson would arrive late to the meeting. Chairman White acknowledged Scott Carlson, Chairman of the Water/Sewer Advisory Board and James Dunn, Chairman of the Finance Committee to the meeting.
Water & Sewer Financial Plan & Rate Analysis
The Town Manager said representatives with CDM would present a presentation to review their financial plan and rate analysis recommendations for the Town. Ms. Galkowski said the presentation would include revenue requirements, rate recommendations, and three alternative rate structure plans.
Mr. Andy Miller with CDM presented a 5-year plan for Town consideration.
The temporary rate increase of 400K implemented by the Board in November 2010 as required by the DOR was discussed. Mr. Miller said based on current projected water/sewer revenues there would only be a surplus of $273K not 400K. The Board expressed concern that the DPW Director informed them in November 2010 that the rate increase being required by the DOR was unnecessary and that the Town’s W/S budget would be fine with out the required increase. Now CDM is projecting a decreased surplus. Town Manager Galkowski concurred that revenue projections over the past several years have not been good and she said these rate projections from CDM would help the Town move forward in the right direction.
Sel. Lavigne commented he felt the Town’s water/sewer budget was based on hope and not on real numbers.
Chairman White asked if CDM’s water usage model projections took into consideration the Town’s new water permit from the State. The State mandated in 2010 that municipalities must enforce water conservation and water bans in 2011. Mr. Miller said this information was not incorporated into their model calculations. The State’s intent is to limit discretionary outdoor water usage. Being below the state mandated gallonage use of 65/gpd does not allow the Town to exclude themselves from the State mandate even though the Town has always been significantly under the 65/gpd standard limit. Mr. Miller said CDM would review the language of the permit to see how it would affect the Town’s water revenue stream.
Chairman White discussed the proposed rate structures. He commented that while expensive, implementing a fixed fee does help to equitably distribute costs among users. In prior water/sewer meetings, the Board had discussed a “phased in” fixed fee rate structure over a period of several years to help take the sticker shock off the fixed fee increase. Mr. Ridge said he was not aware that the Board had made a request for a “phased in” type of rate structure. Sel. Renzoni expressed concern regarding how a fixed fee structure would negatively affect low water users and commercial/business owners by significantly increasing their water/sewer bills. 30% of the town’s water users fall into the low user (<40cf/per year). 2% are commercial water users.
Sel. Ferguson joined the meeting at 8:09PM.
The Board discussed the possibility of increasing connection fees to new water/sewer customers in order to generate revenue. They agreed to discuss fee increases for water/sewer connections at a later date.
Water/Sewer Advisory Chairman Scott Carlson commented that a new law dictates that the Town must now take ownership of pumping stations in new developments. The Board should consider increasing sewer fees in order to offset maintenance and future replacement of these pumping stations down the road.
The group discussed what would be the worst case scenario for commercial businesses with the four rate alternatives? How will restaurants be affected?
Sel. Jumonville raised the issue regarding the transportation rate from the City of Worcester. CDM replied they took the current rate, evaluated the history of the rate, and made projections based on that information.
Chairman White said the Town pays Upper Blackstone sewer charges in addition to sewer transportation charges assessed by the City of Worcester. Should the Town consider a legal challenge to counter being taken advantage of by the City? The report did not isolate this issue. Sel. Jumonville said he felt that raising rates in Town before solving this contractual obligation was like putting the cart before the horse.
The group reviewed the capital improvement schedule presented by CDM. Capital improvements are scheduled to begin in 2013 when debt service begins to decline and allow the Town to begin fund new capital improvements.
Sel. Renzoni asked for a breakdown of both residential and commercial users by block.
Sel. Ferguson said that she did not feel that the “temporary” 400K rate increase was going to go away.
Assistant Town Manager Jacquie Kelly asked to see a breakdown of revenue increases to some of the larger condominium projects and the schools as large commercial users.
Chairman White asked if the Town could purchase water from the Town of Rutland. Specifically, would there be a benefit to buying it from Rutland rather than the City of Worcester? Mr. Miller said that several years ago, based on Rutland’s projected needs, there is very minimal water in Rutland for Holden to purchase. The Chairman said he thought there was a set amount of gallons that Holden was able to access to. Mr. Miller said he would have to go back to review the legislation.
The Town Manager asked if Holden would have to make a capital improvement to its system in order to draw on this water? Mr. Miller said that significant changes to the system would have to be made in order to draw directly from Muscopauge Pond.
He said he recalled a possible method for the Town to draw from Rutland’s water treatment plant, but felt that Rutland’s water volume would be to low to allow for it to happen.
Mr. Dunn asked if the CDM’s evaluation data considered water/sewer rates from other Town’s. CDM said they would forward the information to the Town for review.
Scott Carlson asked the group where should the Town go from here?
Sel. Jumonville requested that the Board acting as Water/Sewer Commissioners take under advisement the CDM report and instruct the Town Manager to begin a dialogue with Rutland and West Boylston in the hopes of creating coalition for fair sewer transportation rates based on the infrastructure we actually use not to include the cost for Worcester’s leaf pickup, street sweeping and pumping stations the Town of Holden does not use. In addition, if the other two towns do no wish to participate in this effort, Holden and its administration will move forward with its own efforts to secure fair and equitable sewer transportation rates from the City of Worcester.
Chairman White asked the Manager to reach out to these Towns to gauge their interest in Sel. Jumonville’s request and report back to the Board at the meeting on February 22nd. The Town needs to determine whether it has a legal leg to stand on. He asked the Manager to report back to the Board with a plan to investigate Sel. Jumonville’s request. The Chairman said that the subject needed closure. It was the consensus of the Board to ask the Manager to pursue Sel. Jumonville’s request. The Manager said she would have to research the subject to educate herself before aggressively attacking the subject.
Sel. Lavigne suggested a type of hybrid fee between alternative two and alternative three. Mr. Ridge said there was no right or wrong way to make a rate structure and that he would come up with a combination fee alternative incorporating these rate structures.
Sel. Renzoni asked if there was a benefit to change the cubic footage blocks. Mr. Miller said the Town still needs the same amount of revenue and this scenario without a specific objective, did not make much sense. He said he concurred with Mr. Carlson’s earlier question of where do we go from here?
The Chairman said the CDM report was the beginning of the conversation and the W/S Advisory Board and the Selectmen need to get together to discuss which course of recommended action to take. The W/S Advisory Board will meet on 2/17 to review the information. The Board agreed to meet with the W/S Advisory Board on Monday, March 14th to resume discussions on the CDM report. Sel. Renzoni said that July 1, 2011 would be here before you know it and the temporary rate increase will end.
CDM said the HMLD is working on generating a monthly report that helps breakdown consumption, revenues and expenses.
Sel. Lavigne asked CDM to provide him with a breakdown of the O&M budget line items. Additionally,
Sel. Lavigne asked about I&I and Leak Detection Plans. CDM said that the DPW is currently reviewing a 2M study for these plans. The Manager said she had the most recent I&I/Leak Detection study from Weston and Sampson for Board review.
2. Adjournment
Motion by Sel. Renzoni, seconded by Sel. Jumonville, it was UNANIMOUSLY VOTED TO ADJOURN THE FEBRUARY 14, 2011 MEETING AT 9:25PM.
APPROVED: February 22, 2011
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