WMAC Meeting Minutes, March 18, 2010

Attendees:  David Crosby – Chair, David Hearne, Paul Lauenstein, Bob Weeks

Guests: Eric Hooper – Superintendent, DPW, Barbara Cook – Senior Associate, Weston & Sampson

1.  The minutes from the February 23 WMAC meeting were approved as amended. Bob Weeks reiterated his complaint that the $45 water bill sent to the Sharon Historical Society is unfair, and also that the bill indicates conflicting minimums: $30 and $45.

2.  Enterprise Fund Accounting

David Hearne reported that he has been conferring with Sharon Finance Director Bill Fowler to rationalize the chart of accounts for the Water Department Enterprise Fund. The accounts must be set up to accommodate Department of Revenue and Department of Environmental Protection (DEP) reporting requirements. Various ways being considered to analyze and report Water Department expenses include fixed versus variable costs, discretionary versus non-discretionary costs, operating versus capital costs, and production versus distribution versus overhead costs. In addition, the question of how to value and depreciate the Water Department’s fixed assets and depreciation was raised.

With personnel costs allocated across more than one department, it is hard to tell whether the town is subsidizing the Water Department or vice-versa.

Paul Lauenstein suggested that the Water Department financial statements should be published in the Annual Town Report.

3. Master Plan

Barbara Cook of Weston & Sampson presented the demand analysis chapter of the master plan, which draws upon Chapter 5 of the Sharon Water Conservation Plan prepared last year by Nancy Hammett. Low, Best and High estimates were projected for residential water usage through the year 2030 based on 65, 70 and 80 gallons per capita per day, respectively. Non-residential water usage was projected from the 2007 average of 88,518 gpd, increasing by 0%, 10% or 25% by 2020 and 5%, 20% or 50% by 2030.

The DEP is expected to issue a new Water Management Act water withdrawal permit limiting the amount of water Sharon may withdraw each year, and also limiting the maximum amount the town may withdraw in any given day. The town is currently operating under an extension of its old permit, which expired on February 28, 2010. The new permit, which DEP has scheduled to be issued within a year, may significantly reduce Sharon’s water allocation. The 19-year permit will be divided into four periods. Each period will allow incrementally more water to be withdrawn than the prior period. The demand forecast for Sharon prepared by the Department of Conservation and Recreation (DCR), upon which DEP will base Sharon’s permit, tops out at about 562 million gallons per year in 2030, 106 million gallons per year lower than the 668 million gallons per year currently allocated for Sharon.

Ms. Cook pointed out that for adequate redundancy, Sharon’s water supply wells should have enough capacity to meet 115% of average daily demand with the town’s largest well, Well #4, off-line.

Paul Lauenstein asked about the master plan recommendation to immediately repair the crack in the Moose Hill tank, and whether funds are available to do so. Eric Hooper responded that spending $75,000 to repair the tank would drop cash in the Water Department account to zero.

Weston and Sampson needs the Wright-Pierce report on wastewater disposal in the center of Sharon to complete the stormwater/wastewater chapter of the master plan.

Comments from WMAC members on existing chapters of the master plan are due by April 15.

4. Water Department Report

Daily well pumping remains about 1.2 mgd, about 20% higher than last year, despite repairing three service line leaks of up to 200,000 gpd. One such leak was hard to detect with acoustic leak detection equipment because the homeowner’s sump pump was running continuously to keep up with basement flooding caused by the leak.

The problem of how to deal with service line leaks on private property was discussed. One suggestion was to install a meter at the street and charge the homeowner for the leaked water. Another was to tell the homeowner that his water would be turned of if he did not fix the leak promptly. Service line breaks can cost several thousand dollars to repair. WMAC members were asked to check with their insurance company to find out if service line breaks are covered by homeowners insurance.

The Water Department has filed an application with the DEP to construct a well on Canton Street property currently owned by NSTAR. NSTAR might be willing to swap this property for a small parcel of ConCom land elsewhere in Sharon. Preliminary tests indicate elevated nitrate and sodium concentrations at this site. A formal pump test is planned for late summer, which will provide a clearer picture of water quality and quantity. If the results of the pump test are favorable, an Environmental Impact Report would be filed. The process of obtaining a permit to construct a permanent water supply well is expected to take approximately three years.

The Town of Norwood is deliberating on how much to charge the Town of Sharon for an emergency connection. Paul Lauenstein suggested that Stoughton might also be interested in submitting a bid for an emergency connection. An emergency connection would not be appropriate for importing MWRA water on a regular basis. For that, membership in MWRA, a permit, and construction of a permanent pipeline to MWRA’s headworks would be required.

5.  FY 2011 Capital Budget

Eric Hooper reported that actual revenues from July 1 through December 31, 2009 were $200,000 less than projected. New, higher rates took effect on January 1, 2010. There is currently $350,000 in the Water Department reserve account.

The $100,000 listed in the capital budget for “source augmentation” will be used to conduct the pump test at the NSTAR site on Canton Street.

Paul Lauenstein asked why Water Department salaries and wages are budgeted 16% higher in FY 2011 than actual salaries and wages in FY 2009, the last full year for which figures are available. He pointed out that inflation was negative in calendar 2009. Eric Hooper responded that the salaries and wages line item in the budget includes compensation for snowplowing, and that Water Department salaries and wages will not increase by more than a few percentage points in FY 2011.

Paul Lauenstein questioned the adequacy of the FY 2011 budget to meet infrastructure maintenance needs spelled out in the new master plan. He requested a meeting with the Water Commissioners to discuss how to accommodate the recommendations in the master plan in the FY 2011 Water Department budget.

6.  Next Meeting

The next WMAC meeting is scheduled for April 15 at 7:30 p.m. at the Community Center, Room 24.

Respectfully submitted,

Paul Lauenstein