DRAFT WMAC MEETING MINUTES – FEBRUARY 7, 2008

 

Attendees: David Crosby – Chair; Rory McGregor – Secretary; David Hearne; Paul Lauenstein; Len Sekuler; Jack Sulik; Bob Weeks

 

Also present: Sharon Finance Director Bill Fowler

 

1. Minutes

 

The minutes for the Jan. 10, 2008 WMAC meeting were approved unanimously with alterations.

 

2. Enterprise Fund

 

Sharon Finance Director Bill Fowler discussed the possibility of changing the accounting system for the Water Department from its current status as a Special Revenue Fund to an Enterprise Fund.

Under enterprise accounting, the revenues and expenditures of the Water Department would be segregated into a separate fund with its own financial statements, rather than commingled with the revenues and expenses of the town. He said a growing number of communities in the Boston area are setting up municipal utilities as Enterprise Funds.

 

Changing to an Enterprise Fund would not affect operations. It would only alter accounting proceedures, borrowing capacity and reporting requirements.

 

As a Special Revenue Fund, the Sharon Water Department is currently subject to a modified accrual system of accounting whereby only transactions that occur less than 60 days following the end of the fiscal year can be attributed to the prior fiscal year. As an Enterprise Fund, accounting for the Water Department would be done on a full accrual basis, with standard depreciation schedules as specified by Generally Accepted Accounting Principles. This would lead to more realistic income statements and balance sheets.

 

Assets of the Water Department such as pumps, pipes, tanks and wells that are currently owned by the town would become the property of the Water Department.

 

A group of Town officials including the Water Commissioners, the Finance Committee, the Town Administrator and the Finance Director would establish a system of accounting for interdepartmental transfers such as partial salaries of employees who spend part of their time working on Water Department business.

 

As an Enterprise Fund, the Water Department would be able to issue its own revenue bonds (in other words, borrow against future revenues) to finance needed capital improvements. This could be advantageous should the Water Department need to borrow significantly to improve its infrastructure, because, as an Enterprise Fund, any borrowings of the Water Department would not be subject to Proposition 2 ½. Jack Sulik pointed out that Water Department borrowing would still be subject to Town Meeting approval.

 

The Selectmen could continue to serve as Water Commissioners. The Water Department would continue to be subject to the oversight of Town Meeting.

 

Mr. Fowler said he did not anticipate that there would be significant difficulties in converting the existing accounting system to an enterprise fund. He said the first day of the fiscal year (July 1) would be a good day to make the switch.

 

Paul Lauenstein asked if the financial statements of the Water Department would be published in Sharon’s Annual report, as is done in Foxboro and Mansfield. Mr. Fowler replied that as an Enterprise Fund, the Sharon Water Department would be subject to Massachusetts Department of Revenue reporting requirements.

 

Len Sekuler asked whether converting to an Enterprise Fund would precipitate a need to raise water rates. Mr. Fowler replied that because the Water Reserve Fund would carry over, changing the accounting system would probably not cause a shortage of funds, and therefore would not by itself precipitate a need to raise water rates.

 

3. Water Master Plan

 

David Hearne presented his comments on Eric Hooper’s proposed scope of services for preparation of a new water master plan. He proposed adding assessment of environmental impacts of well pumping and providing recommendations for additional locations and types of data to evaluate impacts of pumping on surface and ground water. He also suggested removing evaluation of Aquaria as a potential source of supplementary water. Jack Sulik disagreed, saying evaluation of obtaining supplementary desalinated water from Aquaria should remain in the scope.

 

Paul Lauenstein pointed out that Metcalf & Eddy already evaluated Aquaria as a possible source of supplementary water as part of the 2004 master plan update. Questioning the need for another master plan update, he read aloud the following email from Cliff Towner, Chairman of the Sharon Lake Committee and former member of the WMAC, dated February 4, 2008:

 

Paul:

 

I received a proposed scope of services relating to a new water master plan.

 

Apparently, the consultant who wrote the scope of services is not aware that the Town has already bought and paid for that information.

 

I’m sure Rory McGregor, Richard Mandell or Mike Birschbach would verify this.  I know Eric Hooper is very busy and probably has not had time to really look at the scope, but he has most of the requested information and what he doesn’t have can be had in house.

 

The Town has lost five years since the Selectmen voted and authorized funds to gather the information that is described in the scope of services.

 

This R.F.P. will delay progress another two to three years.

 

If you need any of the information described in the scope, call me.

 

While I was on the W.M.A.C., David Grasfield and Chuck Goodman also attended most W.M.A.C. meetings, and heard and read most reports on the information described in the scope. You may also want to contact them.

 

Regards,

Cliff Towner

 

David Crosby asked why Paul Lauenstein had forwarded the master plan draft scope of services document to Cliff Towner. Paul Lauenstein explained that Cliff Towner is very knowledgeable about the town’s water supply.

 

Paul Lauenstein said that in order to determine whether or not a new master plan update is needed, WMAC committee members should first review the materials that the Water Department has already obtained. He reported that he requested Eric Hooper to provide the committee with copies of reports that addressed the issues outlined in the scope, such as past master plan updates, copies of the reports by ESS and Watermark on new wells and emergency backup, MAPC's projections on Sharon's potential buildout and population growth, the Woodard & Curran reports on nitrates in Sharon's water, and Ed Connelly's report on water conservation. In addition, he pointed out that a WEAP modeling tool is being developed to assist in making decisions.

 

Paul Lauenstein asked how much the study would cost and how long it would take to complete. Jack Sulik estimated that based on past master plan updates it could cost $50,000 to $100,000 and take a year to complete. Jack Sulik added that one purpose of the master plan would be to pull together past consultants’ reports and other existing data into one integrated document, and said the master plan should be updated every five years.

 

Paul Lauenstein predicted that undertaking a master plan update would put priority projects on hold at least until completion of the master plan update. He questioned the wisdom of postponing action on identified priorities for another year with major developments coming on line within three to five years. He also commented that the funds should be put to work on projects such as emergency backup, a new well, an acoustic leak detection system or acceleration of the radio meter installation. Jack Sulik replied that there would be no need to postpone decisions until the master plan is completed.

 

Rory McGregor said that, with all the new development coming to Sharon, the town needs an estimate of future demand, as well as an estimate of potential savings resulting from conservation measures. Paul Lauenstein replied that a new water conservation plan has already been ordered as part of the DEP water conservation grant. Bob Weeks added that Town Engineer Peter O’Cain has already estimated future water demand for each new development proposed for Sharon in a spreadsheet that can be easily updated at any time. He said the town spends far too much money on consultants.

 

Dave Crosby asked why these objections to the master plan update were not raised at earlier meetings. Rory McGregor explained that Eric Hooper had requested the WMAC’s input on the scope in late January.

 

The discussion on updating the master plan brought up a request by Bob Weeks to obtain copies of

the existing master plan and the subsequent updates. Dave Crosby volunteered to have them scanned and emailed to the other WMAC members.

 

 

 

4. Water Bill Inserts

 

The WMAC voted unanimously to recommend to the Selectmen that “Secrets of a Waterless Lawn” be inserted in the water bills beginning in April, 2008 to encourage water conservation.

 

5. Annual Report

 

Paul Lauentein proposed that the WMAC should vote to approve a draft of the report of the WMAC to be printed in the Town of Sharon Annual Report. He informed the committee that there was still time to submit a revised draft despite the fact that the published deadline of January 30 had already passed. He presented an alternative version to the one already submitted to the Selectmen’s office by Chairman David Crosby. This alternative version conformed to criteria for content and length set forth in a December, 2007 memo from the Selectmen’s office. It also corrected the percentage reduction in water usage in 2007, and reconciled differences in the priorities in the introduction and conclusion in the draft already submitted. Nevertheless, the committee voted 5-1-1 to endorse the original version.

 

6. Next Meeting

 

The next meeting will be held on Thursday, March 6th at Town Hall, lower level hearing room, at 7:30 p.m.

 

Respectfully submitted,

 

Paul Lauenstein