A. ROLL CALL
Members Present: Richard Aries, Joseph Carino, Robert Dickinson, Frank Ferrero,
Carol Fletterick, Ed Havens, Jr., and William Vees
Alternates Absent: Nancy Mulroy, Richard Siedman
Staff Present: C. Fred Shaw, Superintendent of Pollution Control
Ether A. Diaz, Recording Secretary
Chairman Richard Aries called the meeting to order at 7:00 p.m. The following actions were taken during the May 3, 2011 Regular Meeting of the Water Pollution Control Authority (WPCA).
B. ACCEPTANCE OF MINUTES OF PREVIOUS MEETINGS
1. April 5, 2011, Regular Meeting
Motion was made to approve the minutes of the April 5, 2011, Regular Meeting.
Motion was made by Mr. Ed Havens, Jr.
The motion was seconded by Ms. Carol Fletterick
The motion carried unanimously
Motion was made to approve the minutes of the April 19, 2011, Special Meeting.
Motion was made by Mr. Ed Havens, Jr.
The motion was seconded by Ms. Carol Fletterick
There was a unanimous vote, and motion carried unanimously
C. NEW BUSINESS
1. Review Sewer User Charges and Benefit Assessment Rates for FY 2011/2012
Mr. Fred Shaw reported that the sewer assessment rates will be increased by 1.5% which reflects the change in value of the dollar. He also explained that within the WPCA Rules and Regulations there is a regulation pertaining to surcharges. He explained that industries are assessed a surcharge when Biochemical Oxygen Demand (B.O.D.) and Total Suspended Solids (TSS) concentrations exceed the average strength of wastewater. This surcharge rate should be included in the proposed sewer assessment rate schedule should the Town ever need to impose this regulation. Therefore, he recommended including the surcharge rates of $.53 for B.O.D. and $.52 for TSS in the sewer rate schedule for consideration at the next public hearing.
Mr. Shaw also reported that the sewer user fees projections were based upon different options (see Exhibit A). He explained that he made a number of different “what if scenarios” concerning future costs.
Mr. Shaw reviewed the following options with the Authority:
Option 1: this option involves no contribution towards the 1/20th payment; however, the pump station debt service will be paid through sewer charges.
Option 1a: this Option illustrates the impact on the user fees for the WPCA to make the 1/20th payment for the Treatment Plant debt service, and to also pay the pump station debt service payment. However, it does not include payment for the remainder of the debt service for the Treatment Plant. Currently the user fees is $288, there would be an increase of about 9% leading to a user fee of $314 and increases in FY 2012/2013 and FY 2013/2014; after which the rates would be stabilized for several years.
Option 1b: this Option includes full payment of the Plant and Pump Station debt service. Mr. Fred Shaw explained that Option 1a and 1b do not include setting aside money in reserve for O&M and equipment replacement.
Option 2: this Option includes Option 1a plus making some contribution to the O&M Reserve fund, anticipating that it will take 5 years to realize the 25% goal.
Option 3: this Option involves Option 2 plus contributions toward the Equipment Reserve Fund at a rate that would reach the fund goal of 2% of assets within 10years..
Option 4: this Option involves Option 2 with the five year plan to reach the goal of the O&M reserve fund; but spreading the contribution towards the Equipment Reserve Fund over a 15 year period instead of the 10 year period.
Mr. William Vees requested including the projections without the 1/20th payment under each option. Mr. Robert Dickinson and Ed Havens, Jr. agreed.
Chairman Aries stated that he is leaning more towards Option 3 and 4, because they do include setting money aside for the reserve. He explained that there is a consensus of the Authority that building up a reserve is very important; especially after the most recent incident that occurred where the WPCA had to pay for replacement of a small section of the pipe. This reserve is intended to be reviewed each year by the Authority, and therefore, it will be possible to make annual adjustments as the Authority considers necessary.
Mr. Fred Shaw explained that in addition to the Chapel Road pipe collapse, there is another unexpected expense that will require the use of reserve funds. The tanker truck that is used for a variety of purposes has tank leak and has been temporarily repaired. The replacement cost of the tank will be $65,000 to $80,000; which will have to come out of the equipment reserve fund. This is why a reserve fund policy is necessary, explained Mr. Shaw, because it is best to have reserve funds that are designated for some purpose and to be prepared in the future for any unanticipated expenses.
Chairman Aries asked Mr. Fred Shaw to provide a status report on what the future holds for problems remaining. Mr. Shaw explained that the Town solicited qualification statements from interested consultant engineers to prepare a closed circuit television inspection and evaluation of reinforced concrete sewer pipes. They were also asked to review and assess the condition of each sewer pipe segment and manholes inspected and provide recommendations as to whether sewer replacement or rehabilitation is required; and to evaluate the condition of the concrete force main on Clark Street Pumping Station. Also, they were asked to do an infiltration/inflow (I/I) study of the drainage wastesheds. The Town staff have selected six firms to respond to an RFP and for a subsequent interview relative to the Sewer
System Evaluation Consultant project. Mr. Fred Shaw also reported that he has contacted the State concerning a grant for this study. The Town may be able to get a 55% grant for the study, but not for the construction phase.
With all this information provided, Chairman Aries reported that by next year more specific facts will be available; this upcoming year is sort of a transitional year because there are pending studies to be done. But next year there will be more available information and a completed study with cost scheduling. At this time the sewer user charges could be adjusted.
Mr. Robert Dickinson made a motion to present for purposes of a public hearing the proposed 1.5% increase in Sewer Assessment rates, an increase in the rate of user charges from $288 to $340, $125/1500 gallons for septic waste disposal, and increase of surcharge rates - $0.53/lb BOD and $0.52/lb TSS, as recommended by Mr. Shaw in Exhibit A.
The motion was seconded by Mr. Frank Ferrero
A discussion ensued and Mr. Ed Havens stated that based on the fact that this is a transitional year, he rather set a lower figure than $340 in sewer fees; and then be evaluated again in the following year. Mr. Havens suggested Option 2 for implementation.
In regards to the proposed Option 4, Ms. Carol Fletterick asked why there is an increase year after year. She asked if that needs to be done. Mr. Fred Shaw explained that the increases are necessary in order to get to the funding objective in FY13/14. Once the WPCA pays the 1/20th payment, then the sewer rates can actually be reduced after FY13/14.
Mr. Joseph Carino explained that in the past there has always been money set aside in the equipment reserve fund; therefore, he does not agree with Option 2. Chairman Aries explained that Option 2 is just not acceptable.
Chairman Aries asked for a roll call for the above mentioned motion. Upon roll call vote the ayes and nays were as follows:
AYES NAYS
Richard Aries Ed Havens, Jr.
Robert Dickinson
Frank Ferrero
Carol Fletterick
William Vees
Mr. Joseph Carino abstained.
The Chairman thereupon declared the motion carried with a vote of 5 ayes to 1 Nay and 1 Abstention.
2. Set Time and Date for Public Hearing to establish User Charge Rates
Mr. Fred Shaw recommended having the WPCA Public Hearing on June 7, 2011 at 6:30 pm to establish the User Charge Rates, followed by the WPCA Regular Meeting at 7:00 p.m. Mr. Frank Ferrero informed the Authority in advanced that he will not be attending the Public Hearing, as he will be out of the State on that date.
Motion was made to schedule the WPCA Public Hearing for Tuesday, June 7, 2011 at 6:30 p.m. in the Council Chambers.
Motion was made by Mr. Robert Dickinson
The motion was seconded by Mr. William Vees
The motion carried unanimously
3. Commercial User Charge Adjustments:
a. 50 Talbot Lane (Acct. No. 384170)
Mr. Fred Shaw reported that the property owner for 50 Talbot Lane did not provided to the Town the metered flow records in order for the Town to make the proper adjustments to the bill. The owner received a bill in the amount of $53,808.94 which represents the water consumption figures provided by the water company. The owner has now provided accurate flow measurements for this property and therefore, Mr. Shaw requested approval to adjust the sewer fees from $53,344.23 to $$37,344.
Chairman Richard Aries suggested modifying the current regulations so as to enforce some kind of penalty for being late in providing the required information and requesting a modification. He explained that this penalty fee is not going to enhance the WPCA revenue so that the Authority can lower the sewer user fees on any given year, however, it might help to get better compliance of the rules and regulations.
Motion was made to approve the adjustments of the User Charge from $53,808.94 to $37,344.23 for the sewer user bill FY 2010/2011 for property located at 50 Talbot Lane. (See Exhibit B.)
Motion was made by Mr. Robert Dickinson
The motion was seconded by Mr. Joseph Carino
The motion carried with a vote of 6 (Chairman Aries, Joseph Carino, Robert Dickinson, Frank Ferrero, Carol Fletterick, Ed Havens, Jr. in favor) to 1 (William Vees opposing)
b. 172 Deming Street (Acct. No. 376820)
Mr. Fred Shaw reported that this account is an out of Town account; the property is located in the Town of Manchester. The bill went out for this property, but after the fact, the Town staff has discovered that there was a change in ownership for this Manchester property; the new owners never received the bill and the bill was never paid. The new property owners are asking for WPCA to waive the interest accrued on a bill that is a year late in payment.
Motion was made to waive the interest rate for property located at 172 Deming Street as requested by the new property owners due to the fact that they did not receive a bill.
Motion was made by Mr. Joseph Carino
The motion was seconded by Mr. Ed Havens, Jr.
The motion carried unanimously
c. 10 Bidwell Road (Acct. No. 321840)
Mr. Fred Shaw reported that the Collector of Revenue discovered that a bill was not sent out to 10 Bidwell Road. However, this account is active in the MUNIS computer system. Mr. Shaw does not know how this happened, but the IT Department has been informed of this matter. Mr. Shaw requested approval to prepare a bill for this property in the amount of $983.34 based upon a usage of 317,538 gallons.
Motion was made to approve the sewer user bill for $983.34 based upon a usage of 317,538 gallons for property located at 10 Bidwell Road as recommended by Mr. Fred Shaw.
Motion was made by Mr. Robert Dickinson
The motion was seconded by Mr. Frank Ferrero
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 about 70% completed. However, the carpenter union went out on strike, so the work did slow down but the plumbers are still doing some work.
2. Dry Pit Pump Station Upgrade (Progress Report)
Mr. Fred Shaw reported that the Town has signed a contract with Kovacs Construction Company. A pre construction meeting was held earlier this day; the contractor will be issued a notice to proceed with this project.
E. PUBLIC PARTICIPATION
Motion was made to add to the Agenda Item regarding the Commercial Condominium User Charge.
The motion was made by Mr. Joseph Carino
The motion was seconded by Mr. Robert Dickinson
Mr. Joseph Carino reported that at the last Economic Development Commission meeting it was discussed that Evergreen Walk is changing their building plans to bring more commercial condominiums. Therefore, he asked the Authority to be prepared so as to trying to get all the new commercial condominiums applying with the WPCA rules and regulations.
Mr. Richard Aries suggested putting on the next meeting agenda the Commercial Condominiums billing for further discussion.
Mr. Joseph Carino withdraw the motion
F. BILLS, CHANGE ORDERS, DISBURSEMENTS
None
G. UNFINISHED BUSINESS
1. Proposed Reserve Fund Policy (Discussion)
Mr. Fred Shaw reported that WPCA had a public hearing on the proposed reserve fund policy. Mr. Richard Aries will meet with Mr. Fred Shaw to further discuss this subject matter. This item will be added as an agenda item for the next WPCA regular meeting.
H. MOTION TO GO INTO EXECUTIVE SESSION TO DISCUSS PENDING CLAIMS
None
I. ADJOURNMENT
Motion was made to adjourn the meeting at 9:00 p.m.
The motion was made by Mr. Ed Havens, Jr.
The motion was seconded by Mr. Robert Dickinson
The motion carried unanimously
Respectfully Submitted,
______________________________
Ether A. Diaz
Recording Secretary
Date Approved: June 7, 2011
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