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Members Present: Richard Aries, Donald Antaya, Joseph Carino, Robert Dickinson,
Carol Fletterick and William Vees
Members Absent: Vicki Paliulis
Alternates Present: Ed Havens, Jr.
Alternates Absent: Richard Siedman
Staff Present: C. Fred Shaw, Superintendent of Pollution Control
Ether A. Diaz, Recording Secretary
Public Participation: Normand Girardin, 104 Pine Knob Drive, South Windsor, CT
Don Gonsalves, 40 Bayberry Trail, South Windsor, CT
Larry Torff, 521 Quarry Brook Drive, South Windsor, CT
Joseph Handleman, 22 Gray Road, South Windsor, CT
John Bentley, Brian Road, South Windsor, CT
Chairman Richard Aries called the meeting to order at 6:30 p.m. He reported that the public hearing is being held to establish the proposed sewer user charge rates, surcharges, sewer assessment schedules, and septic disposal fees for fiscal year 2012/2013. Ether Diaz, Recording Secretary read the Legal Notice as it was published in the Journal Inquirer (Exhibit A).
Chairman Aries opened the public hearing for public participation.
Mr. Normand Girardin, resident of 104 Pine Knob Drive, South Windsor, CT came before the Authority and asked why out of Town residents connected to the Town of South Windsor system are not been charged for their use. Chairman Richard Aries responded that there is an intertown agreement in place where residents of the Town of Manchester and the Town of Vernon that are hooked up to the Town of South Windsor sewer system are required to pay the same fee that the Town residents are required to pay. Mr. Normand expressed that he does not understand why the sewer fees are going higher and higher when there is an upgrade to the sewer treatment plant. He explained that there are a lot of people in South Windsor that are on a fixed income, including himself. He reported that three of his neighbors are moving out of the Town of
South Windsor because of the current sewer fees. Mr. Girarding had no other comments to make.
Mr. Don Gonsalves of 40 Bayberry Trail in South Windsor, CT, came before the Authority and expressed that he disagree with the proposed 10% increase in the sewer user rates. He stated that the commercial properties are not paying for their fair share. He has asked many times the Authority how the 93,000 gallons was determined; There was an article in the paper in which Stratford indicated that the average usage of water was 62,000 gallons a year; which is close to the figures that he has been using. He also expressed the key item driving an increase of 10% in sewer fees is the reserve that has not specifically been defined. The Town recently upgraded the main sewer plant, upgraded the pump station, and there was the Chapel Road collapse; therefore, there is money available already for the concrete pipe that has to be
replaced. In his opinion, the reserve does not have to be as high at this particular period of time. He stated that the 10% increase totaling $275,000 can be eliminated; He believes the reserve can be less than forecasted. Mr. Gonsalves explained that he is a member of a Town Committee which will be meeting over the next thirteen months to have discussions and change fees and distributions. Therefore, his recommendation to the Authority was to hold the sewer charges at the present fee rate and let the Town Committee determine what’s going to happen because the proposed sewer charges are not based on facts. Mr. Gonsalves has no other comments to make.
Mr. Larry Torff of 521 Quarry Brook Drive in South Windsor, CT came before the Authority and expressed the following in regard to the sewer user fees: “One can’t really directly speak to the sewer user fees without commenting on the underlined sewer treatment disposal budgeted costs.” In summary, he does not support a 10% fee increase in sewer user fees. Also, he does not believe a 3.4% increase in the operating budget is appropriate. However, he does support setting aside a portion of sewer fees for capital reserve fund. He expressed that South Windsor has completed major work on the sewage treatment facility, with state of the art equipment and systems. Hence, there should be a reduction in operating costs, lower equipment maintenance costs and detection systems that would reduce manpower
requirements. In comparison to 2011, utility costs have increased 1%, labor costs have increased 5% and professional fees have increased 10%. Mr. Torff asked where is the payback that South Windsor residents should be getting on the large capital investment that they make. He understands that the proposed sewer fees include adding to the capital reserve. He fully supports this, because as a South Windsor resident he deserves the piece of mind of knowing that the system can properly be upgraded over time. Had reserve been established, the Town wouldn’t had to bond for the recently upgraded pump stations. Therefore, Mr. Torff would like to see at most a 3% sewer fee increase achieved through better management of operating costs, leveraging the capital investment that the residents make, and still setting funds aside for major capital investments in the future. He supports the Authority to better understand the cost drivers of the sewage
facility and to allocate the fees more fairly. He hopes and expects that the WPCA will take into consideration his recommendations.
With no further comments from the public, Chairman Richard Aries appreciated very much the input received from the public. In response to some of the comments and concerns that were made, Chairman Aries responded to Mr. Torff that the payback is actually coming down the pipe. The Town has not yet fully implemented the improvements for the sewer plant; expenses are still to be paid. In fact, part of the rate increase is in recognition to budget to make those payments. The Town also experienced a sewer pipe collapse on Clark Street; it was about 291 feet of pipe that had to be replaced.
In response to Mr. Gonsalves comment that the 10% increase in sewer charges will be a total of about $275,000 extra in the reserve, Chairman Aries explained that it costs the Town close to $275,000 just for a very small amount of piping replacement of Chapel Road. When the collapse occurred, Mr. Aries said, the Authority could have sat back and hoped for the best, but instead authorized and went through a complete evaluation of the concrete piping in Town; identified the pipes that need replacement within 0 to 5 years as the most urgent ones, and had to planned for about 1100 feet of pipe to be replaced in this upcoming year. The Authority is trying to ensure that the sewage system will be reliable and effective and that the Authority is being proactive in this matter. However, the Treatment Plant needed to be upgraded; and
the pump stations needed also to be upgraded; these are things that need to be paid for. Some of it, the Authority has been able to work with the Town to have their assistance in financing the sewer plant, but the Authority also has debt service payment to make. The Authority does strongly believe and Mr. Aries appreciated Mr. Torff’s support in the idea of having “a rainy day fund”, a reserve, not just capital reserves, but operating reserves and a variety of sub categories within those reserves to insure preparedness for any contingency. Yes, the sewer rates will increase by $34 which reflects $2.83 per month or $0.65 per week extra in the bill. Chairman Aries also reported that a couple of years ago, due to the economic down turn, the Authority were asked by the Town Council to lower the proposed sewer user rates by a significant amount. The rates were lowered by $52 in recognition of the economic down turn. Last year, the sewer
fees were increased and returned to the rate that had been in effect two years prior; and this year has been increased by $34. The Authority does look at the sewage system from a very business like stand point, and plans ahead. The budget is reviewed every year before coming up with what the best rate will be. The Authority appreciates the input from the citizens as well as the Town Council and others. There were no other comments from the public or members of the Authority. Mr. Fred Shaw was asked to present the FY 2012/2013 WPCA budget and explain the different charges being proposed.
Mr. Fred Shaw reported that the budget for fiscal year 2012/2013 contemplates an increase in the operating cost for the new treatment plant of about 3.4%. He explained that originally when the engineers designed the Treatment Plant, even with all the energy saving improvements, they still anticipated at least a 2% increase in total cost. This Plant is intended to replace old treatment systems, but also is intended to do provide new treatment processes that did not previously exist. Part of the reason for the Plant upgrade was so that the waste water could be treated on a consistent basis to meet the State discharge permit. This is something that could have not been done in the past because of a design error in the construction of secondary clarifiers back in the seventies. Also, the Town is required to remove
nitrogen in the discharge to the CT River; this requires an entirely new system which the Town didn’t have before. When putting together the budget, Mr. Fred Shaw did not know how much to increase the operating budget because the new equipment was not put into operation until recently. Yes, there has been some savings because of the Plant Upgrade, but there were new processes that would increase costs as well.
Mr. Fred Shaw also reported that the debt service is another component of the budget, that hasn’t changed. However, it will in the future because three of the last pump stations in Town are going to be upgraded. The debt service for these last three pump stations won’t be due until February or March of 2014. The only major increases in the budget for next year, he explained, are in capital projects which involve two items: One is an $882,000 increase for the replacement of corroded concrete pipe on Chapel Road. A report was prepared with presented the results of an analysis of concrete pipe in Town. The report recommended the immediate replacement of 1,100 feet of concrete pipe and other corrective measures to be completed in the future. These include $948,000 in phase 2 that will be scheduled
for 2016/2017; this is for the purposes of relining more pipes and to rehabilitate some manholes. In fiscal year 2018/2019, $3.2 million will be needed to fund installation of a force main parallel to the existing force main at the Clark Street pump station. In fiscal year 2020/2021, 971,000 to be needed to reline some additional sewer pipe in the Town. And in fiscal year 2022/2023 funds will be need to reline the existing force main in Clark Street at a cost of $2.3 million. Mr. Fred Shaw explained that although these are future expenditures, funds need to be budgeted in anticipation so as to stabilize the sewer rates from one year to the next year. Having a restricted reserve fund will allow funding for unexpected catastrophe failures like the Chapel Road collapse, and at the same time, stabilize the user fees. This is good business. The increase in sewer charges in this next fiscal year of 10% is in an effort to try to meet the cost for
the $882,000; second, the $700,000 that the Authority is required to set aside to meet their commitment to the Town Council to make the 1/20th payment next year in September 2013. This is part of the agreement between the WPCA and the Town Council concerning the debt service for the treatment plant upgrades.
Mr. Shaw reported that the fees that the Town charges are very competitive in terms of other user fees throughout the State. One of the requests in this meeting was for facts; the facts are that the Town sewer fees are still less than the average throughout the State. There is a survey that is done every year by the engineering firm of Tighe & Bond; one year they look at the State of CT or Massachusetts and they look at the user fees are for water, then the next year they’ll look at the municipality’s sewer rates. Last year when the Town residents were paying $288 as an average residential fee, the State average was $369. This fiscal year the current sewer charges are up to $340. However, the Authority recognizes the need for a financial plan that would provide to manage and maintain an
infrastructure that presently is valuated at more than $400 million. This is an infrastructure that supports public health and safety, environmental protection and the economic vitality of this community. Although, 10% increase sounds like a big jump, the resulting user fee is still going to be less than what the statewide average will be this year.
Mr. Joseph Handleman of 22 Gray Road, South Windsor, CT came before the Authority and asked if the increase is going to be a leveled increase over a period of time or is the increase just for this year and then be reviewed from that point forward? Mr. Fred Shaw responded that a possible small increase is anticipated for the following fiscal year (2013/2014), but the intent is to stabilize the user fees, which at that point will be close to achieving this goal.
Mr. Handleman also asked if there are any citizens or any entities in the Town that don’t pay a sewer user fee. Mr. Fred Shaw responded that those that are provided with that service pay for that service. Mr. Hendleman asked if those that are on septic pay a sewer fee? Mr. Shaw responded that they don’t pay a sewer fee but they pay a septic dumping fee for the cost to treat their waste when it is delivered to the treatment plant. Mr. Handleman also asked that since not everybody is on sewer system, is that the reason why the sewer fees are not part of the Town total taxes? Mr. Shaw responded that the sewer fees were never part of the Town ad valorem taxes and because of this, one of the strings attached to the grants and loans that the Town received from EPA and DEEP throughout the years to upgrade the
system requires that the Town establish a sewer user charge system and be dependent upon sewer revenues only in support of operation and maintenance of the sewer system. If the town did not include sewer charges together with property taxes prior to December, the revenue for operating the sewer system would have to come from sewer charges.
Mr. Handleman asked if the Authority has looked at getting additional sewer customers from those that are not connected to the sewer system. Mr. Fred Shaw asked that mandatory connection for everyone has been discussed in the past but the policy decision of the Sewer Commission and the WPCA was that those not connected to sewer would not be required to connect as long as the leaching fields were functional.
Mr. Handleman asked if new constructed buildings require sewers or not. Mr. Shaw responded that if the sewer is available, yes, they have to connect. In many cases developers extend the sewer to their development.
Last, Mr. Handleman asked if there is any opportunity for the Town to get State or federal funds to do any of the improvements and has the Town attempted to get any help. Mr. Shaw responded that the Town has upgraded pump stations with grants and low interest loans in the past when they were available. There were also grants and low interest loans used in the past to upgrade the Treatment Plant; most of the Town projects, including the debt service, have been funded through the Clean Water Fund.
With no further questions or comments from the public, Chairman Aries declared the Public Hearing closed at 7:10 p.m.
______________________________
Ether A. Diaz
Recording Secretary
Originally Posted: June 15, 2012
Approved Date: July 10, 2012
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