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WATER POLLUTION CONTROL AUTHORITY
TOWN OF SOUTH WINDSOR
MINUTES PUBLIC HEARING JUNE 1, 2010
TOWN COUNCIL CHAMBERS PAGE 1 6:30 PM
Members Present: Joseph Carino, Thomas Deming, Robert Dickinson, Frank Ferrero, Carol Fleterick, Ed Havens, Jr., and William Vees
Alternates Present: Richard Aries, and Richard Siedman
Staff Present: C. Fred Shaw, Superintendent of Pollution Control
Ether A. Diaz, Recording Secretary
Public Participation: Robert Benson, Resident - 15 West Road, South Windsor
Councilor Keith Yagaloff – 65 Pheasant Way, South Windsor
Mayor John Pelkey - 87 Norman Drive, South Windsor
Councilor Kathryn Hale – 540 Orchard Hill Drive, South Windsor
Chairman Carino called the meeting to order at 6:30 p.m.
The Legal Notice (Exhibit A) was read into the record by Ether A. Diaz, Recording Secretary.
Chairperson Carino stated for the record that the Water Pollution Control Authority (WPCA) has been in business for forty years; and was previously known as the Sewer Commission. WPCA is a non profit organization; the WPCA has expenses, has responsibilities, and they establish the costs to run the operation for the year and in anticipation of future needs. Chairman Carino explained that over the last several months, there have been numerous articles in the paper regarding an increase in sewer user up to $700.00. He stated that was not true. He added that the WPCA sets the sewer user fees upon reviewing and analyzing the Towns financial situation. With no further comments, Chairman Carino opened the public hearing to the public for comments.
Mr. Robert Benson, resident of 15 West Road in the Town of South Windsor, came before the Authority and expressed that over the years all he sees is the high increases in user rates. He explained that he does understand that the Town has to pay for equipment maintenance and to keep the operation going. However, when the sewer rates increase, there is no justification provided to the public. The public is not aware of such increase until they receive the sewer bill. In trying to understand the Proposed Sewer User Rates schedule Mr. Benson asked if he would only need to pay the sewer assessments. Mr. Fred Shaw answered that the proposed prorated schedule is just for people who are new in the system and connect to the system within the fiscal year; they will pay only a portion of that annual fiscal year.
Mr. Benson asked Mr. Fred Shaw if the Town just received a federal grant to rebuild the treatment plant. Mr. Fred Shaw explained that yes, the Town did received a grant for a portion of the cost, which represents roughly 22% of the total cost to upgrade the treatment plant. And the Town also received a low interest loan which the Town will begin to repay in September 2013. In response, Mr. Benson stated that it seems an awful high price since the Town did received this loan and asked on behalf of his neighbors if the residents will be getting money back for everything they have paid in previous years. In responding to Mr. Benson’s earliest question concerning the big increases in user rates from year to year, Mr. Shaw explained that what needs to be understood is that the Town is required by the grants and loans
received in the past to be totally funded, Pollution Control activities through the user fees and that in the past the Town was covering all Pollution Control costs through the user charges. There were eight years within a seventeen year period when there were no increases in sewer rates. So, the Town is trying to catch up. Mr. Shaw also explained that $340 that the Town is currently charging for user fees is less than the State average for municipal sewer user charges and that all of the Town’s user charges in the past have taken into consideration debt service and the need to increase the user fees in the future so that the Town could meet the debt service. The Treatment Plant Upgrade will involve a debt service, the Town Council has indicated that they wish to take over or pay through property taxes the debt service on the Treatment Plant. In view of this and the difficult economic times, the WPCA, in consultation with the Town Council,
decided to reduce the sewer user fees for this year. But Mr. Shaw went on to explain that the intent is to meet future obligations and stabilize the user charge system over a period of time.
Another question that Mr. Benson asked was if the Town provides abatement on sewer rates to all the new businesses in Town and new homes that are being built, or do they pay the regular sewer rate. Mr. Shaw responded that they pay the regular sewer rate. With no further comments to the Authority, Mr. Benson asked the Authority to take into consideration the general public view, specially the senior citizens who are on fix income.
Chairman Carino appreciated Mr. Robert Benson’s comments and explained that the Authority will take his comments into consideration and find ways to provide public information regarding the sewer user fees throughout the year.
Councilor Keith Yagaloff, resident of 65 Pheasant Way in South Windsor came before the Authority to provide helpful comments and feedback to the Authority regarding the proposed Items on the Public Hearing Agenda. Councilor Yagaloff commented on the following items:
Proposed Definition – Pollution Abatement Facility (Exhibit B): Councilor Yagaloff explained that although he was unable to attend the WPCA May meeting, he had the opportunity to listen to the tapes and there was a discussion that the definition of “pollution abatement facility” needed to be added to the Rules and Regulations and that it is in compliance with the State statues and that it was reviewed by Bond Attorney. Mr. Yagaloff stated that the definition does not come out of the state statues and he provided a
copy of State Statues, Section 22A-4232 (see Exhibit B1) that defines various things, including “pollution abatement facility”. In comparing this definition with the proposed definition of “pollution abatement facility”, Councilor Yagaloff explained that there is nothing within the proposed definition that includes anything about capital projects, capital one time expenditures, operating costs, maintenance cost and other benefits. Therefore, he feels that the Authority needs to do their own independent homework and go to the statues and look the definition for themselves before making any decision on approving the proposed
definition.
Proposed Changes to Section 16.0 of the Rules and Regulations (Exhibit C): Councilor Yagaloff suggested on the proposed change to reflect how to charge the buildings. There have been a lot of discussions about condominiums and about how to charge the buildings. He stated that if the Authority is going to charge one fee for a building, if there are for example, 22 condominiums in that building, the Authority would not be able to charge them separate fees on the commercial site. There is a lot of discussion concerning this
matter, however, Wentworth Park for example there is a nail salon, a hair salon in that location. There are other businesses in Town, ECHN for example, which is owned separately, and there are condominiums there too. If the Authority is going to charge one fee per building, the Authority will lose the opportunity to charge minimum fees in a commercial site. A lot of buildings in this Town have separate businesses in the same building and they are being charged the minimum. In listening to the tapes from the last WPCA meeting, Councilor Yagaloff heard that the formula that is used in the Rules and Regulations is not part of the Town ordinance. He stated that the formula is indeed a Town ordinance and it comes out of MUNIS that was approved by the Town as an ordinance. He stated that the Authority can change the rules, but can’t change the billing practices until they change the ordinance.
Water Pollution Control Reserve Fund Policy: Councilor Yagaloff explained that the WPCA is creating a policy for the reserve fund. The question he raised was if it is the intention to bill the reserve into the sewer fees, once the reserve policy is created. He explained that he does not understand why all of the sudden the Authority is creating a policy when the ordinance or some other mechanism should allow the Authority to charge for reserve. Mr. Yagaloff point was why create a new policy over the ordinance. So, he recommended the Authority to debate whether or not a policy is necessary and what is the purpose of passing the policy this evening; is it so that the reserve be charged in the bill? In response to Chairman Carino’s previous comment that there was no plan to raise the sewer user fees to $700,
Mr. Yagaloff responded that there was a plan to raise the sewer fees to $700. Mr. Yagaloff position is that this was projected over the next couple of years, and in fact, even before the sewer treatment plant went on board, and that the Authority was collecting fees in anticipation to the new sewer treatment plant.
Another item that Councilor Yagaloff addressed was the Authority’s debate as to whether or not charge commercial/industrial businesses the same as residential. He explained that he does not understand why the Authority resists in charging commercial/residential condominiums a fair fee for their sewer use plus overage. He believes that it is loss revenue for the Town, which means that all of the rates go higher than they should be. He believes that if a person owns real property and has a deed for the real property for the commercial site, that person should be responsible to pay the minimum fee plus the overage. However, if that person has a lease, then the Town will charge the owner. Therefore, he believes that if the owner owns more than one residential home, that person should be charged for each unit.
One last thing Councilor Yagaloff commented was on the property on Ellington Road, that was approved for user charge adjustment at the last WPCA meeting. A lot of questions were asked by the members of the WPCA but at the end it was approved. In this case he suggested to the members to go out for themselves to the property and take it look at the situation, not to just rubber stamp it. Councilor Yagaloff concluded by saying to the members of the Authority, that if they don’t understand the statues and they don’t know what is really going on besides what they are told to do, then to do their individual homework and find the answer for themselves. By doing that, it will make him as a resident of Town and as a Councilor feel more comfortable and it will help the Authority and Town Council to work together and
support one another in a better way. With no further comments to the Authority, Chairman Carino thanked Mr. Yagaloff for his comments and suggestions and would take them under advisement.
Mayor John Pelkey came before the Authority. He started by agreeing with Mr. Robert Benson’s previous comment about the reaction from the public as to the fees structure going up And he explained that as a public official who has to go out and get votes to be elected, he heard it loud and clear. He thanked the Water Pollution Control Authority for giving the Town Council a campaign issue which generated a lot of excitement, but at the same time it generated a lot of education about how the WPCA operates and certainly it put a spot light on a number of issues that the Authority deals with on a monthly basis. Mayor Pelkey also commented that the Town Council will hold a meeting this evening in which they will be voting to set the WPCA operation budget. He asked for some clarification from the Authority in
regards to the various budget options discussed between the Council and the Authority at a previous Council meeting.
Mr. Shaw answered that he previously provided that information to the Town Manager and to the Town Council. He reported Option 1 which is $288 sewer fee with a bottom line figure of $3,452,56 including the following elements: operation maintenance $2,717,728, debt service principal and interest $195,630 and under equipment replacement pump station upgrade $588,000 and manhole rehabilitation and ionized removal $50,000 and $700 for the WPCA.
Option 2 involves all the elements just described, except that there was an additional contribution to the reserve fund balance of $250,000 and that was for user charge of $306.
Option 3 was the Town Council recommendation, which involves all the elements just described, excluding the pump station upgrade of $588,000 and the reserve fund balance of $839,327, with bottom line figure of $2,964,056.
With no further comments or questions from Mayor John Pelkey, Chairman Carino declared the public hearing closed at 7:18 p.m. and moved to open the Water Pollution Control Authority regular meeting at 7:19 p.m. At this time, the Authority moved to close the Regular Meeting.
Motion was made to close the WPCA regular meeting and resume the public hearing at 7:19 p.m.
Motion was made by Mr. Robert Dickinson
The motion was seconded by Mr. Richard Aries
The motion carried unanimously
Chairman Carino proceeded with the Public Hearing and Councilor Kathryn Hale, resident of 54 Orchard Hill Drive came before the Authority. She explained that a lot of research has been done and a lot of discussions over the past couple of months on the authority of the Water Pollution Control Authority or the Council with particularly respect to Capital Project. She explained that she came up with the conclusion that there is some ambiguity in the Town’s Ordinance. For the records, she explained that she feels very uncomfortable as a lawyer to vote for a budget that includes Capital Projects at a time when there is an outstanding issue.
With no further comments from the public, Chairman Carino declared the Public Hearing closed at 7:22 p.m.
______________________________
Ether A. Diaz
Recording Secretary Approved Date: July 13, 2010
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