A. ROLL CALL
Members Present: Joseph Carino, Thomas Deming, Robert Dickinson, and William Vees
Members Absent: Frank Ferrero, Carol Fletterick and Edward Havens, Jr.
Alternates Present: Richard Aries sitting in for Mr. Frank Ferrero
Richard Siedman sitting in for Mr. Edward Havens, Jr.
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 October 5, 2010 Regular Meeting of the W.P.C.A.
B. ACCEPTANCE OF MINUTES OF PREVIOUS MEETINGS
1. September 7, 2010, Regular Meeting
Chairman Carino stated that he did not have a chance to completely review the minutes; however, there are minor grammatical errors to be corrected. Therefore, the acceptance of the minutes has been postponed for further consideration.
Motion was made to postpone acceptance of the September 7, 2010 minutes until the next WPCA meeting.
The motion was made by Chairman Carino
The motion was seconded by Mr. Robert Dickinson
The motion carried unanimously
C. NEW BUSINESS
1. Ellington Road Pump Station Upgrade (Status)
Mr. Fred Shaw provided an update on the progress of the Ellington Road pump station. He explained that the project is nearly complete with the exception of one item. The item involves the vibration caused by the operation of the emergency power. The subcontractor failed to install vibration isolators that would have reduced the problem. There are some concerns about the affects of the vibrations on the electronic equipment. The contractor is in the process of installing the isolators.
Mr. William Vees asked if this will delay the time line. Mr. Shaw responded that it has delayed the time line for the Town to take over the project. Mr. Shaw explained that usually the Town accepts a project when is substantially complete. The Town will not accept this project until this matter of the vibrations is corrected.
Mr. Robert Dickinson raised a concern regarding the “Explanation of Referendum Question” regarding the dry pit pump stations (see Exhibit A). Mr. Dickinson mentioned that the word “upgrading” is not a full definition of what the Town will be doing; he explained that is not just upgrading the pump stations, but also rebuilding the pump stations. Therefore, Mr. Fred Shaw was asked to explain what the dry pit pumps stations project will involve. Mr. Fred Shaw explained that the dry
pit pump stations are buried in the ground, and after a number of years the wall thickness of the metal container that houses the equipment needs to be checked. The pump station needs to be reevaluated to ensure the integrity of the pump stations is maintained; and also to assess the safety for the people who maintain those pump stations.
Mr. Thomas Deming asked how the thickness of the wall is checked. Mr. Fred Shaw responded that the thickness of the wall gets checked ultrasonically. He explained that some soils are more electrically active than others, and when metal has been underground for many years the thickness of the wall needs to be measured to ensure that it meets all the minimum standard requirements for wall thickness. Mr. Deming explained that he understand the process, however, the general public does not understand this process.
Chairman Carino asked Mr. Fred Shaw “who’s requirement it is to perform the safety tests that have to be done periodically to the pump stations.” Mr. Shaw answered that is certainly an obligation of the Town. The Engineering associations set the safety standards and the Town follows the recommendations of engineering best practices. Mr. Shaw also explained that before a project begins there is an evaluation up front and the Town’s consulting engineers prepare a technical memorandum that explains in detail what needs to be done; also they make reference to the different professional standards requirements.
Mr. Williams Vees asked if this was the basis for the referendum, and Mr. Shaw answered that in 2002 a study was prepared for the Water Pollution Control System. The engineers made a number of recommendations of improvements needed to the system so that it will meet the current and future Town growth requirements. Among these recommendations, of the 2002 report, were those concerning the pump stations. Based upon the recommendations, the design work was for the completion of the Treatment Plant and the pump stations improvements.
Mr. Williams Vees also asked what would happen should this referendum fail to pass. Mr. Fred Shaw answered that the Town is obligated to be good stewards of the infrastructure. It is the Town responsibility to maintain the pump stations, so as to protect the public health and safety, and to comply with state and federal regulations. Otherwise the State can fine the Town $25,000 a day. The pump station work will be completed. If this referendum fails, it will mean that instead of spreading the costs to upgrade these pump stations over a twenty (20) year loan period, the Town will have to update them individually and incur a greater impact on the sewer user fees each year that the work is performed.
Mr. Thomas Deming stated that in listening to Mr. Fred Shaw statement, a lot of money has been spent and research has been done. He expressed that the general public does not know what lead to this referendum and therefore his main concern is to educate the public regarding how important this is to the public. Therefore, he believes that the “Explanation of Referendum” provided is not sufficient because it does not explain all the factors that lead to this referendum. Mr. Fred Shaw responded that the “Explanation of Referendum” was put together by the Town Attorney’s Office. The Town Attorney was provided with all of the information concerning the original study that was done and other technical information.
Mr. Richard Aries responded that he understands that the “Explanation of Referendum” needs to be phrase carefully so as to not promote a yes or a no vote. However, he sees problems in terms of phraseology; he explained that the explanation should have been more elaborated, because he thinks that is unfair to the citizens to vote not knowing the important facts that they should know.
Chairman Carino recommended notifying the Town Manager that the Authority was not given the opportunity to review this final explanation. He believes that the Authority should have the opportunity to provide information to the Town Attorney so that everyone is satisfied that the explanation that is provided to the general public covers all of the important facts regarding the situation.
2. Proposed Reserve Fund Policy (Discussion)
Mr. Fred Shaw once again emphasized that it is important for the Water Pollution Control Authority (WPCA) to have a Reserve Fund Policy (see Exhibit B and Exhibit C). The goal is to provide a financial plan to
stabilize user rates and to be able to meet expected and unexpected expenditures. Otherwise, it will be very difficult to maintain a stable sewer user bill. He explained that this goal can be accomplished by the use of Reserve Funds to mitigate future fluctuations in expenditures or revenues; and to minimize impact of planned and unplanned pollution abatement facility improvement projects. Mr. Fred Shaw stated that this policy should become part of the WPCA Rules and Regulations and the budget each year.
Included with the Agenda was a copy of an article that appeared in the paper a while ago (see Exhibit D). Mr. Fred Shaw expressed that the Town Manager and the Town Council recognize the need to have such a policy. Mr. Fred Shaw provided other information concerning what other utilities are doing and what the Government Finance Offices Association (GFOA) has to say concerning the subject of reserve funds (see Exhibit E1, Exhibit E2 and Exhibit E3).
Mr. Richard Aries stated that the purpose of having a policy is very good sound business principle. However, he would like to see projections before making a policy change. Mr. Richard Siedman agreed, and stated that he thinks that the Authority needs to get direction from the Town, because the Town does not have a Reserve Fund. Chairman Carino responded that regardless of what the Town does, the Authority should have a financial plan as a matter of good policy. Secondly, he recommended Mr. Fred Shaw to expand the policy goal (see Exhibit B) because it seems too restricted. He suggested redefining the word “maintenance” or the intent of the policy.
Mr. Fred Shaw also stated that the Town Council took on the responsibility of the debt service payments for the Treatment Plant Upgrade, and the first payment of $1.7 million due on September 2013; however, the Town has not yet set aside anything in the General Government Reserve Fund. Mr. Shaw also provided a report with graphs showing the impact of reserve funds and fund balances on the stabilization of user fees (see Exhibit F).
There was a general consensus for Mr. Fred Shaw to continue to develop the Reserve Fund Policy; and to report back with a general concept of the policy, including projection of revenue and expenditures. Mr. Fred Shaw responded that he will proceed to make the projections assuming that the Town Council will provide for payment of the debt service for the Treatment Plant upgrade using property taxes, and based on the fact that the Town Council will depend on the Authority for assistance in making the first payment which is due on September 2013.
Mr. Robert Dickinson made a recommendation for the reserve fund projections to be based upon both assumptions that the Town Council will fund and will not fund the Treatment Plant upgrade. Chairman Carino responded that the Reserve Fund will take a while to develop and therefore should not include any projections on the first payment due on 2013. However, he did recommend that Mr. Fred Shaw prepare a document to be sent to the Town Council regarding the concern as to how this payment will be paid. Chairman Carino expressed that he has written three letters to the Mayor and has not yet received any response. Should the Mayor not respond again, Chairman Carino said that the subject will go public.
D. COMMUNICATIONS AND REPORTS
None
E. PUBLIC PARTICIPATION
None
F. BILLS, CHANGE ORDERS, DISBURSEMENTS
None
G. UNFINISHED BUSINESS
Chairman Carino reported that the Town Attorney is invited to the next WPCA meeting for discussion of the Commercial Condominium User Charge. He asked members of the Authority to be prepared to ask questions or raise their concerns, as everyone will have the opportunity to speak and this may involve a change in the current policy.
H. MOTION TO GO INTO EXECUTIVE SESSION TO DISCUSS PENDING CLAIMS
None
I. ADJOURNMENT
Motion to adjourn the meeting at 8:25 p.m.
The motion was made by Mr. Thomas Deming
Seconded by Mr. Richard Siedman
The motion carried unanimously
Respectfully Submitted,
______________________________
Ether A. Diaz
Recording Secretary
Approved Date: November 3, 2010
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