Draft  WMAC Meeting Minutes                                                        October 22, 2009

 

Members in Attendance: David Crosby – Chair, Dave Hearne, Paul Lauenstein, April Singleton, Bob Weeks, Ann Carney

 

Guests: Sharon DPW Superintendent Eric Hooper, Sharon Water Conservation Coordinator Nancy Fyler, Selectman Bill Heitin

 

1.  The minutes of the September 24 meeting were approved as amended.

 

2.  Proposed water rate increases which had been proposed to the Selectmen were revisited in response to feedback from the community that the proposed increases were too high. The need for improvements to aging infrastructure such as wells and water mains outlined in a previous memo from Weston & Sampson, as well as the rising cost of treatment chemicals, were cited as reasons for raising water rates. Concern was expressed that the full impact of reduced demand for water because of an unusually wet summer may not yet be reflected in revenues, due to the fact that water bills are only issued every six months.

 

Chairman Crosby said the WMAC should not to go on record as recommending deferral of needed maintenance.

 

Selectman Bill Heitin said that he had heard from many residents, both modest water users and heavy water users, who objected to the proposed rate increases. He requested that the WMAC reconsider their recommendation. He suggested phasing in needed price increases over two years.

 

Paul Lauenstein mentioned that a number of communities in eastern Massachusetts have recently been placed under temporary boil orders, a major inconvenience for residents, because of problems with their water supplies. He said that with total operating and capital expenditures for 2010 budgeted at about $2.8 million, revenues averaging only about $2 million per year, and water usage trending downward, a significant rate increase in water rates is needed to ensure a reliable supply of high quality water. He added that it would be a good idea to create a spreadsheet projecting operating budgets, capital costs, and water demand for the next five years, and then set the rates high enough to avoid having to defer needed improvements. Also, monthly revenues should be monitored closely this fall and winter to evaluate the impact on revenues of last summer’s decreased pumping.

 

Eric Hooper said approximately $1.8 million per year is budgeted in FY 2010 for operations and another $600,000 is needed every year just to replace Sharon’s 120 miles of water mains at least once per century. That makes $2.4 million per year, not including well rehabilitation, a new well, an emergency backup connection to MWRA water, or infrastructure improvements related to new developments coming soon to Sharon.

 

David Hearne pointed out that the correct way to manage and account for funding of capital improvements is to have a capital reserve fund to which contributions are made and from which expenditures for capital projects are withdrawn.

 

Eric Hooper reported that VFDs are being installed on the electric motors that drive the wells, which will ease the cost of electricity for pumping.

 

The consensus was that a price increase of 25% to 30% is needed in order to keep pace with increasing operating costs and fund an adequate infrastructure maintenance and improvement program. However, in view of political realities related to the current economic situation, water rates should be increased in two stages, the first in January of 2010 and the second a year later, rather than all at once. In addition, the committee prefers a two-tier rate structure involving higher water rates in summer when water supply is most critical.

 

Eric Hooper agreed to revise the previously recommended rates accordingly.

 

3.  David Hearne asked what is happening with the plan for investigating the source of elevated nitrate levels at Well #2. Eric Hooper reported that there has been no further progress.

 

4.  Eric Hooper let the committee know that Weston & Sampson will report on asset management and infrastructure maintenance costs and scheduling at the next WMAC meeting.

 

5.  The next WMAC meeting will be on Thursday evening, November 19 at 7:30 pm. at the Community Center.

 

Respectfully submitted,

 

Paul Lauenstein