WATER POLLUTION CONTROL AUTHORITY
TOWN OF SOUTH WINDSOR
REGULAR MINUTES REGULAR MEETING
SPRENKEL ROOM PAGE 1 DECEMBER 7, 2010
A. ROLL CALL
Members Present: Joseph Carino, Thomas Deming, Robert Dickinson, Frank Ferrero, Carol Fletterick, Ed Havens, Jr., William Vees
Alternates Present: Richard Siedman
Alternate Absent: Richard Aries
Staff Present: C. Fred Shaw, Superintendent of Pollution Control
Ether A. Diaz, Recording Secretary
Chairman Joseph Carino called the meeting to order at 7:00 p.m. The following actions were taken during the December 7, 2010 Regular Meeting of the W.P.C.A.
B. ACCEPTANCE OF MINUTES OF PREVIOUS MEETINGS
1. November 3, 2010, Regular Meeting
Motion was made to approve the minutes of the November 3, 2010 Regular Meeting, as amended.
The minutes were amended as follows:
On page two, third paragraph, fifth line down, change the word “have” to “has”. Therefore the sentence should read as follows: “So, between minor and major home occupations, in law apartments, the Authority has to consider if they are going to be considered for multiple payments as well.”
On page five, third paragraph, fifth line, change the word “questions” to “question”. Therefore, the sentence should read as follows: “Mr. Aries asked if is possible to complete a survey of those specific commercial units in question, so as to make a determination of which units will be best subject to…”
Motion was made by Mr. Ed Havens, Jr.
The motion was seconded by Ms. Carol Fletterick
The motion carried unanimously
C. NEW BUSINESS
1. Lawrence Road Sewer Assessments (Set Date for Public Hearing)
Mr. Fred Shaw reported that the Lawrence Road Project has been completed and the actual construction cost for this project was $354,632.00 (see Exhibit A). The assessment fees total $234,668; these assessments were set according to the sewer rates in effect at the date of completion. The Town will be collecting this fee over a fifteen (15) year period at six percent (6%) interest rate. The Lawrence Road residents can choose to pay entire assessment in lump sum, or make installment payments over the 15
year period. They may also choose to make their own financial arrangements with another institution. Mr. Shaw also reported that a public hearing is required and that the residents will have an opportunity to ask questions concerning this matter or if they want to appeal the assessment fees. The far right column on Exhibit A shows an estimated annual fee over a 15 year period for each property.
Chairman Carino expressed that it is very important for the Authority to keep in mind that the purpose of a public hearing is for the public to come before the Authority and express their comments. Any discussion between the members should be done after the Public Hearing.
Motion was made to schedule the public hearing for January 4, 2010 at 6:30 p.m. in the Council Chamber.
The motion was made by Mr. Thomas Deming
The motion was seconded by Mr. Robert Dickinson
Mr. Richard Siedman expressed that he was not part of the WPCA at the time of this project; therefore, he asked if the Lawrence Road residents are aware of this situation. Mr. Fred Shaw answered that yes, a special meeting has been held for this purpose where all the residents were notified and invited to attend. There were some residents complaining of having a poor septic system. However, there is one resident who had a poor septic system and installed a designed system because he was under the impression that the Town was not going to put any sewer in the near future on Lawrence Road. So, he may have some concern about the sewer assessment fees and may ask for relief.
Chairman Carino asked Mr. Fred Shaw to compile any information concerning the number of complaints that were received regarding malfunctioning systems on Lawrence Road.
The motion carried unanimously
D. COMMUNICATIONS AND REPORTS
1. Treatment Plant Upgrade (Progress Report)
Mr. Fred Shaw reported that the construction of the Treatment Plant is ahead of schedule. The Town will be saving $1.7 million on energy over a twenty year period because of the new technology offered by the turbo blowers that have been installed at the plant. Mr. Fred Shaw also reported that the Town was going to receive grants for other energy efficiency improvements for this project through CL&P.
The contractor is anxious to move the laboratory from the existing control building to the new laboratory area and to move the staff into the new locker rooms and shower facilities. However, he will need to satisfy certain requirements of the building code. There is also some question about the time required for the water to heat up in the
shower and the sink. Until they meet the building code the contractor cannot move forward with the project.
Chairman Carino asked Mr. Fred Shaw who is responsible when there is a change order. Mr. Fred Shaw explained that the Town is responsible for this; however, the Town will receive any reimbursement from the engineer if there is a design error. Mr. Fred Shaw expressed that the substantial completion date of this project is December 4, 2011.
Chairman Carino expressed that this is a very expensive project that was approved by Town residents, and therefore, there should be public notification provided when this project is completed. Mr. Fred Shaw answered that reports on this project are already included in the Town Manager’s report to the Town Council. Information is also available on the Town’s webpage. And the Town is also in the process of putting together a script for a television show about Public Works in January 2011 which will include this project.
2. Dry Pit Pump Station Upgrade (Progress Report)
Mr. Fred Shaw reported that the first meeting was held two weeks ago with the engineers regarding the contract amendments for the construction phase. It is anticipated that the project will go out to bid in January 2011; and the contract will probably be awarded in March 2011. The project will be substantially completed by the end of 2011 or early 2012.
Mr. Ed Havens Jr. asked Mr. Fred Shaw if an existing dry pit pump station operation is interrupted when upgrading that dry pit pump station. Mr. Fred Shaw responded that the existing dry pit pump station stays in tact. The pump station will be by passed using another set of potable pumps. At that time the contractor will be fully responsible for the pump station. On Route 5, A-2 surveys were completed 5 years ago. It was found that the Town needs and easement to upgrade the Route 5 pump station.
3. Ellington Road Pump Station Upgrade (Progress Report)
As previously reported, there were some concerns as to the vibration caused by the operation of the emergency power generators; this matter was corrected and the Town took responsibility for the Ellington Road Pump Station.
E. PUBLIC PARTICIPATION
None
F. BILLS, CHANGE ORDERS, DISBURSEMENTS
None
G. UNFINISHED BUSINESS
1. Commercial Condominium User Charge (Review Town Attorney Opinion)
Mr. Fred Shaw explained that he has reminded Town Attorney Andrew Lord about providing his legal opinion concerning this matter. However, Attorney Lord left a voice message on the phone stating that he is not able to have his written opinion and he also thought that there were some policy issues that the Authority had to resolve before he gave his legal opinion. He also thought that this subject required a legal opinion that his firm had been previously requested by the Town Manager concerning WPCA power and authority, and that this opinion had not yet been rendered.
Chairman Carino expressed that he felt that the Town Attorney did not understand his question at the last WPCA meeting. The question was that if the Authority had previously granted approvals to residential and commercial condominiums under the current billing regulation; what would happen if the Authority changed the rule?; will the authority be subject to any legal action.
Mr. Fred Shaw was asked to provide Town Attorney Andrew Lord with a copy of the November 2010 minutes and to request a response to question on Page 2, in the 2nd paragraph of the November 2010 minutes that was raised by Chairman Carino.
Mr. Richard Siedman expressed that changing the rules will be similar to the Board of Education policy “if the student wants to play sports they have to pay.” Chairman Carino responded that is not the same thing, because the student has a choice. This is different because these applications have already been approved, and afterward, the Authority is changing the rules requesting that they install individual meters. Mr. Siedman stated that Carino is the only person in the WPCA asking for individual meters. Chairman Carino suggested that he made no such request for individual meters, and that the minutes should prove as much.
Chairman Carino also expressed that in a reading of the previous meeting minutes, there were members of the Authority that changed their opinions concerning this subject. Therefore, he believes that this subject needs to be further discussed before making any final decision. It is important that the Authority take the best approach. In additional to this change, the Authority needs to know what is the economic impact on the Town should the policy change.. The Authority decided on having a special meeting for the purposes of discussing how many and what type of commercial facilities are in the Town of South Windsor; including major and minor home occupations. Any questions should be submitted to Mr. Fred Shaw prior to the special meeting.
2. Proposed Reserve Fund Policy (Discussion)
As previously presented, Mr. Fred Shaw proposed a written Reserve Fund Policy with the goal to provide a financial plan for the future, stabilization of sewer use rates (see Exhibit B). He is proposing to have two types of reserve funds; the O&M fund and a Replacement Reserve Fund. The recommendation would be to take five years to reach to O&M reserve fund goal, and to take ten years to reach a fully funded Replacement Reserve Fund. That represents about $8 million but adjusted over 10
year period, taking in consideration of the increase in the cost for equipment. However, the 2% figure that was used is for purposes of discussion.
Mr. Thomas Deming expressed that a 2% may be an aggressive goal to accomplish. Also, he is not sure if it necessary to have a replacement reserved fund due to the fact that the Town will have a new Treatment Plant and pump stations. Mr. Shaw responded there will be expected and unexpected repair and replacement costs occurring throughout the useful life expectancies for all the equipment. The idea is to see the bigger picture and that providing for equipment maintenance is not limited to a year to year consideration but must include consideration for the continuous unbroken stream of maintenance requirement.
Mr. Richard Siedman expressed that he recalls when the Town Manager reported at the January Town Council Meeting that he has money set aside in case of an emergency: and therefore maybe it is not necessary to establish a reserve fund policy. Mr. Fred Shaw expressed that he is not sure that is correct, unless the Town Manager was referring to this proposed reserve fund policy. In any event, it is the Water Pollution Control Authority’s responsibility, not the Town Council’s, to decide such matters as these to provide sewer services.
Mr. Fred Shaw provided a copy of his projections of user charge impacts of a reserve fund policy (see Exhibit C), as it was requested in an earlier WPCA meeting. Mr. Fred Shaw provided three examples to answer this question. He looked at the following three scenarios:
Option 1: funding both the O&M and the replacement reserve over a period of time; 5 year for the O&M and 10 years to built up the replacement reserve. This option includes using sewer fees to pay the debt service for both the Treatment Plant and the pump station upgrades. Beginning with FY2010-2011 at the current $288 user fee and reaching the point of zero increase in user fees in FY 2017-2018.
Option 2: involves funding both the O&M and replacement reserves while the Town Council pays for the Treatment Plant debt service; user charges will retire pump station debt service. This will include the reduction in user fee for this fiscal year and bring it up to 18% increase in the first year, and an increase thereafter at a slower rate until stabilizing in FY 2017-2018.
Option 3: involves funding only the O&M reserve fund while the Town Council pays the Plant debt service and pump station debt service is paid through sewer use charges. The user fee will be increasing from FY 2010/2011 at $288 and then come to stabilization at the year of 2020-2021 at $377.
Mr. Thomas Deming and Mr. Richard Siedman excused themselves from the meeting at 9:00 p.m. for health reasons.
It was a consensus of the Authority that they are interested in having a written Reserve Fund Policy. The next step is to consider a formal staff decision so as to consider what proposal for adoption of a written reserve fund policy.
H. MOTION TO GO INTO EXECUTIVE SESSION TO DISCUSS PENDING CLAIMS
None
I. ADJOURNMENT
Motion was made to adjourn the meeting at 9:15 p.m.
The motion was made by Ed Havens, Jr.
The motion was seconded by Mr. Robert Dickinson
The motion carried unanimously
Respectfully Submitted,
______________________________
Ether A. Diaz
Recording Secretary
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