A. ROLL CALL
Members Present: Richard Aries, Robert Dickinson, Ed Havens, Jr., Vicki Paliulis and William Vees
Members Absent: Donald Antaya, and Carol Fletterick
Alternates Present: Richard Siedman sitting in for Carol Fletterick
M. Atif Quraishi sitting in for Donald Antaya
Staff Present: C. Fred Shaw, Superintendent of Pollution Control
Ether A. Diaz, Recording Secretary
Others Present: Councilor Stephen Wagner, WPCA Liaison
Chairman Richard Aries called the meeting to order at 7:00 p.m. The following actions were taken during the December 2, 2014 Regular Meeting of the Water Pollution Control Authority (WPCA).
Chairman Richard Aries appointed Mr. Richard Siedman to sit in for Ms. Carol Fletterick; and Mr. M. Atif Quraishi to sit in for Mr. Donald Antaya.
B. ACCEPTANCE OF MINUTES OF PREVIOUS MEETINGS
1. November 5, 2014 – Regular Meeting
Motion was made to accept the minutes of the November 5, 2014, regular meeting as presented.
The motion was made by Mr. Richard Siedman
The motion was seconded by Ms. Vicki Paliulis
The motion carried unanimously
C. NEW BUSINESS
1. Capital Projects and Reserve Account Report (Review and discuss)
Included with the Agenda was a copy of a Report status of the Capital Projects and Reserve Accounts (see Exhibit A) for discussion. The Capital Projects list included the original budgetary appropriations as well as the unbudgeted projects; the purpose of this report was to account for the impact of the unbudgeted projects upon the reserves. This list also shows the current expenditures for each of the projects, the current balances and their status as to whether or not the projects are completed or not. Mr. Shaw explained that he took the Finance Department reports and put them into a format that is easier to understand. He explained that for any completed project, for which there was a remaining balance, the projects are closeout and the project balances are returned to the Reserve for Capital account.
In some cases while the project was completed, it may not be closed out, for example, the Sewer Line Extension on Pleasant Valley Road. This was a project that was done in conjunction with a state funded road project. Although the project was completed some years ago, the Town can’t pay this bill to the State until the final audit is completed which could extend for years beyond the time when the project is completed.
Treatment Plant Upgrade (Local Share) – the treatment plant has been completed; and the amount set aside appropriated for the local share have a balance remaining of $97,833.
Sewer System Improvements I (Chapel Road) – This project involved replacement of corroded concrete pipe on Chapel Road as well as improvements to the Clark Street force main. The budget amount that was appropriated for this project was $882,000; however, the project cost was $640,783. Also, this project was funded through by the sewer user fees in the course of the budgetary process. The remaining balance of $241,217 together with the Treatment Plant Upgrade balance of $97,833 can be transferred to the Reserve for Capital and the projects closed out.
The list shows other budgeted projects, what have been expended to-date and current balances and the corresponding status.
Mr. Shaw explained that the Secondary Clarifier Improvements is a project that the Town will rebid pursuant to earlier discussions on this project. It is believed that the previous bids can be reduced by scheduling this work during the warmer months.
Easement Vegetation Control – This project has been awarded to a contractor and funds haven’t yet been spent.
Plant Outfall Pipe – This project was funded, however the project was suspended during the original application process for the Treatment Plant Upgrade; so as not to delay the Treatment Plant Project. The Department of Energy and Environmental Protection (DEEP) has been contracted to determine whether it will be necessary to reapply, but the DEEP has not yet answered this question.
Dry Pit Pump Station Upgrades (Debt Service) – This project is completed; originally the appropriation was $1,750,000 which is part of the debt service; there is no current balance. There were bond costs and short term costs for barrowing that were not originally anticipated for this project.
Manhole Rehab Intersection of Wheeler/Pleasant Valle Road – This project was completed; and the Town is waiting to receive the final invoices for this project so that the project can be closed out.
Arc Flash Hazard Assessment – The Town solicited Request for Proposals; nine proposals were received for this project. Mr. Shaw is in the process now of evaluating the submittals.
Sanitary Sewer Evaluation (Local Share – Grant) – This project is near completion; the state is funding this project (55% grant.) The amount shown (297,000) is the local share; the current expenditure is $231,000.
Sewer system Improvements II – This project is substantially finished; the project involves improvements of the manholes throughout Town where sources of storm water inflow into the system are to be identified.
Mr. Shaw reported that the total of the unbudgeted projects is $401,453; while in closing out the Treatment Plant and the Sewer System Improvements Phase I projects, the net impact on the Reserve for Capitals is to reduce this account by $62,403. Mr. Shaw also discussed the Reserves status as follows:
The Reserve for Capital current balance is $894,640
I/I and Manhole Rehabilitation current balance is $344,502
Operating Reserve current balance is $360,400 and Replacement Reserve current balance is $241,601. Mr. Shaw explained that these two reserves were created through the policy regulation adopted by the Water Pollution Control Authority. They show the sum totals of the amounts appropriated for this current fiscal year and last fiscal year. The net current balance for the four reserve funds totals $1,778,830.
Mr. Shaw discussed the Pollution Control Fund Balance which is separate from the Reserves. He explained that any revenues exceeding expenditures were contributable to an increase in the fund balance. The current balance is $932,635 which is the balance as of October 31, 2014, following the annual audit. This balance is updated once a year at the completion of the fiscal year.
Mr. Shaw distributed to everyone a copy of the reserve policy (see Exhibit B) for discussion. He explained that the policy does not describe the specifics as to how the funds are going be allocated to each of those reserves; that will require a decision to be made by the WPCA. Mr. Shaw explained that the goal was to build up an operating reserve in the next five years that will allow the Town to cover at least 25% of the operating costs. The Replacement Reserve goal is to, over the next 10 years,
increase the amount in this revenue to equal 2% of the value of the capital assets (about $14 million). Mr. Shaw explained that the purpose of the policy is to stabilize the user fees taking into consideration the current expenditures and anticipated future expenditures.
Chairman Richard Aries expressed that the long term planning as a business concept is very important. Councilor Stephen Wagner expressed that he is very pleased to see that the Pollution Control fund balance went back up to $932,635. He explained that during the previous fiscal year, the fund balance has dropped and questions were raised as to what happened to those funds. The decrease was due to the payments that were made to the debt service earlier than what was originally planned (or budgeted).
Mr. Richard Siedman suggested transferring the current balance in the sewer system improvements ($241,217) into the general fund. Mr. Fred Shaw responded that the funds did not come out of the general fund; they came out of the sewer user fees. Therefore, Mr. Siedman explained that by transferring the funds into the sewer user fees instead of the capital reserve, there could be a $25 decrease in the sewer user fees next year; or the ability to keep the sewer user fees at the same rate.
Chairman Richard Aries responded that there are other things that need to be considered prior to reducing the sewer user fees. He explained that the idea of giving a reduction as appropriate is the right thing to consider when it comes time to review the sewer user fees. There is a ten year plan to build up the reserves to the policy stated goals; there are unexpected expenditures to take into consideration also. Mr. Shaw explained that the user fee is a major component of the revenues received; and that the purpose of the reserve fund policy is to stabilize the user fees while making sure that sufficient funds are available to handle future anticipated and unanticipated expenditures.
2. Closeout Capital Projects (Approval)
a. Treatment Plant Upgrade
b. Sewer System Improvements Phase I
Mr. Shaw was seeking approval to close out two projects and transfer the remaining current balance ($339,050) back to the reserve for capital.
Motion was made to approve closing out completed Capital Projects and transfer funds from Capital Projects to Sewer Reserve Fund Balance as recommended in Mr. Shaw’s memorandum dated December 2, 2014 (Exhibit C).
The motion was made by Mr. Robert Dickinson
The motion was seconded by Mr. William Vees
The motion carried unanimously
D. COMMUNICATIONS AND REPORTS
1. Sanitary Sewer Evaluation Study Phase II – CCTV and Manhole Inspections
Mr. Fred Shaw reported that this project involves the TV monitoring inspection of the sewer lines looking for infiltration and inflow in the system. The project has been completed and Wright-Pierce will present a report of their findings and recommendations at the next WPCA meeting. It appears that most of the extraneous flows were not from ground water infiltration but from storm events (inflow).
2. Manhole Rehab at intersection of Pleasant Valley Road and Wheeler Road
Mr. Fred Shaw reported that the manhole at the intersection of Pleasant Valley Road and Wheeler Road has been replaced and the project has been finished. He briefly explained that this is a drop manhole that was previously identified as one that had to be rehabilitated. In the course of preparing the walls for relining, the contractor reported that the walls were in very bad condition. The manhole wasn’t vented, nor were walls treated with a protective epoxy lining, so over the years, it created sulfite gas in the wastewater and the sulfite resulted in the formation of sulphuric acid which deteriorated the inside of the wall. This manhole was part of a sewer line installed by the Town of Manchester pursuant to the intertown sewer agreement between Manchester and South Windsor.
E. PUBLIC PARTICIPATION (Items not on the agenda)
Councilor Stephen Wagner, WPCA Liaison was in attendance this evening. He reported that the Town Council passed an ordinance to amend the length of memberships of the Water Pollution Control Authority from a six year term to a four year term. Councilor Stephen Wagner explained the current terms for each of the members; the Town Council will appoint the current authority membership to serve for transition terms as follows: three electors will be appointed to serve until November 30, 2015 (Richard Aries, Ed Havens, Jr., and Robert Dickinson). One member will be appointed to serve until November 30, 2016 (William Vees). Three members will be appointed to serve until November 30, 2017 (Vicky Paliulis, Donald Antaya, and Carol Fletterick). The two alternates to the Authority will be appointed to
serve until November 30, 2015 (Richard Siedman and M. Atif Quraishi).
Once these terms have expired, the Town Council shall appoint three electors to serve on the authority for terms of four years, commencing November 2015; The Town Council shall appoint one elector to serve on the authority for a term of four years, commencing November 2016. Three electors will be appointed to serve for terms of four years commencing on November 2017 and the Town Council shall appoint two alternates to the authority for a term of two years, commencing November 2015.
F. BILLS, CHANGE ORDERS, DISBURSEMENTS - None
G. UNFINISHED BUSINESS
1. Proposed Sewer User Charge Abatement Program/Ordinance - (Discussion)
Chairman Richard Aries explained that there is nothing new to report on this matter. Mr. Shaw will contact Attorney Keith Yagaloff to set another meeting and further discuss this matter.
H. MOTION TO GO INTO EXECUTIVE SESSION TO DISCUSS PENDING CLAIMS - None
I. ADJOURNMENT
Motion was made to adjourn the meeting at 8:04 p.m.
The motion was made by Mr. Ed Havens, Jr.
The motion was seconded by Mr. M. Atif Quraishi
The motion carried unanimously
Respectfully submitted,
__________________________
Ether A. Diaz
Recording Secretary
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