Members Present: Chairman Stephen C. Lobik, Vice Chairman Douglas R. North, Clerk Joseph M. Prior
Superintendent: Craig W. Jalbert
Secretary: Dale Barnes-Johnson
Open the Meeting: The meeting was called to order at 7:35a.m.
NEW BUSINESS:
Tata & Howard Visit ~ Donald J. Tata, President of T& H along with Karen Gracey, P.E. Associate joined the meeting to discuss an appropriate meeting frequency with the Board to improve communications and to discuss long term considerations based on past work and future needs.
The SRF Project Update/Tank Rehab is 99.9% done, minimum work remains when weather allows. Anniversary Inspection is 1 year after completion and is included in the original price. Craig explained the recent confusion with regards to the financial end of this project and was sympathetic to the turmoil experienced at the beginning of the project, although it does not excuse the lack of communication that contributed to the tank re-hab delay.
Recently Massachusetts Water Pollution Abatement Trust (MWPAT) required all loan paperwork be resubmitted, as both projects would be rolled into one loan, this rollover is considered a refinance, and additional closing costs apply. The State changed its mind on how the stimulus funds will be applied. Instead of the initially mentioned principal forgiveness we will receive some sort of interest credit on the loan which will result in less interest being paid over the life of the loan, all addition information regarding the ongoing SRF Project was provided and submitted. Yesterday, the Treasurer received a package from MWPAT stating that the Loan has been granted federal stimulus funding in the form of forgiveness of all or a portion of principal of the Loan. As a sub recipient of federal stimulus funding under the American Recovery and Reinvestment Act of 2009 (ARRA), the project is subject to certain restrictions and requirements of the ARRA. The Trust’s deadline to
receive all signed and completed documents is February 5th and included Interim Loan Closing Instructions which would require additional closing fees (approximately $6,000) which makes no sense as the project is complete and the bonds are ready to close.
Don explained how important client value is in his small firm of 40 and the purpose of the survey was to see what can be done to better serve us as a client and to figure out what makes best sense to consult and suggest projects. A Capital Efficiency Plan would help make recommendations taking all critical system components into consideration, including Fire Flow, pipe materials and hydraulics. Capturing hydraulics, type and age of pipe in different sections helps prioritize work. The Management system takes materials into account, i.e. the 1895 Cast Iron installed on Main Street is heavy and typically doesn’t have problems that other materials used in the 1930’s-1950’s do. Don explained how this can be done in phases, as like the
Sewer Map started a few years ago. T&H has worked with Worcester, Westfield, and New Haven. Next phase would be system updates as breaks happen, analyzing small sections of pipe from the break.
Craig and the Commission acknowledged the value of such a system but explained the department is operating on a damage control basis, addressing high priority needs as they arise. We have completed a great amount of work in a short amount of time. Capital Planning is required, the water meters are already 10 years old, and will need to be changed out within 5 years as they begin to lose efficiency when 10-15 years old. Mapping is an important part of our work but right now it is falling way behind because other needs are higher priority. The Commission has appreciation for former Superintendent Marty Harris and Craig’s forethought to look down the road, and agree this Capital Efficiency Plan would help and is a great idea; however it is a budget
issue. The current water rate requires a slight increase to handle the loan repayment; rates are within the State average; however it is climbing. Pumping is down, people are conserving, presenting a problem in itself.
T&H was chosen to provide engineering services on the Park Avenue Project. Craig informed Don that this project was looked at as a chance to try a different firm, however pricing and work history won T&H the project. Another future project for consideration is the Mechanic Street Bridge where we have a water main that runs under the brook that is presently exposed.
Discussion took place with regards to the tank paperwork submittals and lack of communication/understanding between the Contractor, T&H and DEP and how that was handled. Craig felt that T&H should have brought the situation to our attention sooner, and if additional services were required, the Commission would decide whether it was worth the expense or not. Waiting put the Department at significant financial risk considering the contractor could have walked. Fortunately, it all worked out well for us; the contractor was great and we got a great job. Craig explained that because our department is understaffed, he is in different places doing different things all the time. The water break in August and subsequent bacteria problem in
September caused him to be preoccupied and lose track of the progress on the contractor’s paperwork submittals. We need our engineering firm to have our back and protect our interests.
Don informed the Commission as a result of this incident a new mechanism has been put in place to set check points, track milestones, and be proactive in regard to projects. Karen assured the Commission that at no point was this project put on the back burner; delays resulted from paperwork issues dealing with the Minority and Women Business Enterprise (MWBE) submittal. Modern Protective Coating’s MWBE subcontractor was certified in NH, not MA. There is only one person at the DEP looking at the SRF paperwork. There is a lot of technical paperwork behind such projects and they are severely understaffed with the additional ARRA money being funneled through their office as well.
The proposal from another engineering firm who offered multiple ideas for the Mechanic Street Water Main Relocation was twice as much as T&H. Don recommended going over the abutments, vs. coring through the abutments jeopardizing their integrity. Timing of this project is unknown and Craig is not sure the bridge can be included this year; May Town Meeting approval is required. The department has multiple tasks rolling out in the spring which include flushing of hydrants, in addition to the Park Avenue Project, which will require a large amount of prep work. As it is, snow is causing delays for the surveyor to mark services and shut offs there.
In closing, Don expressed his desire to always keep in touch with us and would like to visit our meetings on a regular basis. The Commission thanked him and Karen for their time and they left the meeting.
Accept the Minutes: A motion was made by Doug and seconded by Steve to accept the January 11, 2010 meeting minutes. Motion passed unanimously.
ADJOURN: A motion was made by Steve and seconded by Doug to adjourn from open session to go into executive session at 8:45 a.m. to return to open session thereafter.
Return to Open Meeting: The open meeting was called back to order at 9:15a.m.
OLD BUSINESS:
FY2011 Budget~ Budgets have been prepared with Contractual Increases, Pensions based on 19.6% of Wages, Health Insurance based on a 14% increase, Property Insurance on a 5% increase + value increases.
Water ~ Craig explained this past year was the lowest billable usage we have experienced. In addition, we are now paying on one SRF loan and we are adding the tank rehab loan as well. We don’t know the exact payment amount for the new loan but we have a very good estimate for the purposes of budgeting and setting the rates. Rate and Income sheets were reviewed. The proposed rate increase is from $4.75 to $4.95/1000 gal., which is a $1.25 minimum increase per quarter or $5.00/Year. Rates will be finalized and voted on at a later time.
A motion was made by Joe and seconded by Doug to approve and submit the Water Budget ($125,502.00 Labor Expenses, $201,276.00 Non Labor Expenses). Motion passed unanimously.
Sewer ~ M.D.C.’s flows have been reduced, but two bonds have gone away. However, the estimated share of Operation & Maintenance costs of the Town of Palmer Water Pollution Control Facilities continues to increase. Funds remain encumbered for FY2008 and FY2009. Rate and Income sheets were reviewed. M.D.C. flows have been cut in half, the proposed rate increase is $3.00 per EDU increase per quarter. Rates will be finalized and voted on at a later time.
A motion was made by Joe and seconded by Doug to approve and submit the Sewer Budget ($84,857.00.00 Labor Expenses, $35,135.00 Non Labor Expenses and $395,000.00 Waste Water Treatment Expenses). Motion passed unanimously.
NEXT MEETING: The next meeting has been set for Thursday, February 11, 2010 at 6:30p.m.
ADJOURN: Meeting adjourned at 9:30 a.m.
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Joseph M. Prior, Clerk
cc: Selectmen
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