WMAC Meeting Minutes 

August 16, 2012

Attendees:   David Hearne, Paul Lauenstein, Rory McGregor – Secretary, Len Sekuler – Vice Chairman, Sarah Windman

Guests: Eric Hooper – Superintendent, DPW

1.  Minutes of the June 21 meeting were approved.  Minutes for the May 17 meeting will be published and circulated for review.

2.  Eric suggested that the Water Department could bond a significant portion of the projects in the Water Master Plan, for example, all the repair/replacement projects for pipe over the next 20 years and the capital improvements like the emergency connection and the new well.  This gives us a target dollar amount that we need over 20 years and allows us to set water rates accordingly.  This was put forth for consideration only; it is not a proposal.

3.  The next major repair/replacement project is upgrading the water pipes on Brook Road and Glendale Road totaling $2.3 million.  Eric proposed that we accomplish the work over a 4 year period at the rate of $575,000 per year, beginning in FY 2014.

4.  A spreadsheet prepared by Eric shows proposed capital improvement projects in order of priority for accomplishment over the next 6 years.  Paul requested that the spreadsheet include consulting and planning costs associated with each project, as well as a line item for unanticipated contingencies.

5.  Dave feels that it is risky to borrow for capital improvements until we have resolved the issue of how to raise water rates and eventually pay for all of this capital improvement work. 

6.  WMAC moved unanimously that the Glendale & Brook Road pipe replacement project and the Emergency Connection project begin in 2014.  The Water Department will finance the former project, estimated at $2.3 million, from operating revenue over a multiple year period and the latter, estimated at $1.352 million, as a bonded project to be accomplished over a 2 year period and repaid over time with increased water rates.  Eric will check with Bill Fowler about our ability to borrow the required amount for the Emergency Connection project.

7.  Revenue for last FY was $2,194,000 and retained earnings were $100,000.  The water department borrowed $800,000 for the Massapoag Ave pipe replacement project.  The borrowing was part of a 20 year bond established by the town to cover various projects.

Revenues for the Water Department will continue to go up because of the increased water rates implemented at the beginning of the year.

8.  Eric reported that metered use of water showed 8 million unaccounted gallons out of 55 million gallons pumped in July.  This is over 14% of the water that was pumped.  Some or most of this could be due to damaged water service pipes running from the water main to individual homes. 

There has been discussion to offer water users a financing plan to get this work done for service pipe replacement through a water department program and pay it back with interest over an extended time period, perhaps one to three years, on the customer’s quarterly water bill. This type of project might cost a water user up to $5,000.

Eric needs input from WMAC for the following: thoughts on financial seeding to get the program started, how to encourage customers to upgrade aging water service pipes in conjunction with water main upgradesin their neighborhoods and, preferred ways for  customers to pay for the service line replacement work.

9.  Nitrate levels have gone down at the wells this summer.  This could be due to torrential rains which have flushed out surface contaminants and better ground management at the Farnham Road site.

10.  Ground water levels are low, but not abnormally so for this time of year.

11.  Next meeting is Thursday September 20 at the Community Center at 7:30pm.

Respectfully submitted,

Rory McGregor