Commissioners Present: Paul C. DeMaio Chairman, Joseph M. Prior Vice Chairman, Marshall L. Harris Clerk
Employees Present: Superintendent: Craig W. Jalbert; Secretary: Dale Barnes-Johnson
Open the Meeting: The meeting was called to order at 3:30 p.m.
Accept the Meeting Minutes: Joe made a motion to accept the February 25, 2015 meeting minutes. Marty seconded the motion. Motion passed unanimously.
OLD/NEW BUSINESS:
Bunyan Variable Frequency Drives (VFD) ~ the VFD came back from repairs; installation is complete, samples came back good and we are up and running again. Repair costs are expected to be roughly $4,500 including removal, shipping and re-installation. Craig is uncertain if the other VFD drive which is currently functioning should be pulled and sent out to be refurbished while repairs are still possible, a decision will be made after the bill is received.
Hospital Road Pump Rehab Project ~ design phase is still ongoing, Craig is waiting to hear from Tata & Howard (T&H) regarding variable frequency drive reliability - lifespan, and if there is a difference between the lowest price model vs. high end model. The VFD installed at Bunyan met the required specs at the lowest bid however, after only 10 years the manufacturer stopped factory support of the unit. On this project the bid spec may need certain specifics written for a model with a longer life span. Also ongoing are discussions regarding alarms, PLC functionality and notifications. USDA is scheduled to come out Tuesday, March 24th, to meet with the Town Administrator, Treasurer and possibly Chairman from our board, the exact time is to be determined. Bids could be
advertised in May vs. April.
FY2016 Budget/Rates ~ the way in which water revenue is estimated has been re-evaluated and revised to be more realistic. However, there is a water revenue shortfall of $39,255.53 with the new revenue estimate. Advantages and disadvantages of three options provided by Craig and Dale were discussed:
- Option A – increase the rate from $5.35 to $5.80/1000 gal
- discourages business growth
- continues to extract most of our revenue from larger users
- does not equally share the burden of O&M of the system
- Option B – increase quarterly minimum gallons from 6,250 to 10,000 and the rate from $5.35 to $5.45/1000 gal
- begins to shift the burden of O&M of the system more fairly
- still discourages business growth
- only 40% of the customer base would be impacted
- Option C – institute a Debt Service Fee of $20/qtr per active account and drop the rate from $5.35 to $4.75/1000 gal
- Significant change in policy, the debt service fee is established by taking the system debt payment for the fiscal year and dividing it by the number of billed accounts which is a fair and equitable way to share the cost of system improvements. Fee would decrease as debt payment amount decreases or increase in the event of future system improvements
- more equally shares the burden of O&M of the system
more in line with modern methods
promotes business growth
lays foundation for the future
Craig and Dale met with Town Administrator Evan Brassard and Finance Director Debi Maher on March 16th to discuss the above rate adjustment alternatives. Both were supportive of Option C as it was the most transparent, the Debt Service Fee is based on loan payments, leaving operating costs to be covered by usage and rates
The Commission discussed the alternatives and eventually agreed that option C was the most appropriate. In the past, usage, through the water rate, provided revenue. The larger user was burdened with the brunt of the improvement costs, now when the debt payment drops, the debt service fee also drops until a future project is approved and added to the debt. Only active accounts (water on at the street and meter installed) will be charged the debt service fee as is consistent with our present billing policy. All active accounts will still receive a usage bill with a minimum charge of 6,250 gallons as per our present policy.
Water Rate ~ A motion was made by Joe to institute the Debt Service Fee of $20.00/Qtr effective April 1, 2015, motion seconded by Marty, motion passed unanimously. A motion was made by Marty to adjust the rate from $5.35/1,000 gallons ($33.44 Min/Qtr) to $4.75/1,000 gallons ($29.69Min/Qtr plus $20.00 Debt Service Fee for a total of $49.69Min/Qtr) effective April 1, 2015, motion seconded by Joe, motion passed unanimously.
Sewer Rate ~ A motion was made by Marty to increase the sewer residential flat rate per dwelling unit from $328.00/Yr, $82.00/Qtr to $346.00/Yr., $86.50/Qtr effective April 1, 2014, motion seconded by Joe, motion passed unanimously.
Department Activity
Sewer Jetter ~ the Mongoose Jetter start up is scheduled for tomorrow.
NEXT MEETING: The next meeting has been set for Wednesday, April 8, 2014 at 3:30p.m.
ADJOURN: A motion was made by Joe and seconded by Paul to adjourn at 4:15 p.m. Motion passed unanimously.
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Marshall L. Harris, Clerk
cc: Selectmen
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