Video index

1. Call Meeting to Order

7:04

2. Roll Call

Roll call (10 Present, 0 Absent, 0 Excused)

3. Public Participation [Per Town Council Rules, this segment of the meeting shall not exceed thirty (30) minutes unless extended by the Mayor, with the consent of the majority of the Town Council.]

4. Communications

5. Town Manager's Report [Per Town Council Rules, this segment of the meeting shall not exceed ten (10) minutes unless extended by the Mayor, with the consent of the majority of the Council.]

Thanked the Council for the budget. Will try to stick to the budget the best we can if we need anything will come to the Council. The Main Street will be underway shortly. The bridge needs to be done for the marathan because it is part of the route. Town of SouthWindsor received another award for GIS for the second time. Will be sending sonmeone out to San Diego to receive that award. Will be on vacation - Vanessa will be in charge. Yagaloff - replacement - administrative backup - what happens if there is an emergency Galligan - we have our objectives already in line. would probably come back if there was something terrible. Yagaloff - the other day you were away, if there was a decision making that had to be made would Vanessa be making those decisions? Galligan - yes or she would contact someone who would make those decisions. Yagaloff - could we get some kind of feedback or information with the level of training she has in case there is an emergency. Galligan -we can have those discussions Delnicki - good solid chain of command should be reviewed also.

McCann - Chain of command worked well in the snow storm (October). Should be proud of your Department Heads. A lot of directions occurred from the Department Heads and not the Town Manager. Galligan - that is what is supposed to happen. Everyone has been trained to do what needs to be done if I am here or not. McCann - you mentioned the award regarding GIS - South Windsor stood out from 100,000 others.

Anwar - Main Street bridge - can you tell us about the contractor Galligan - we had three bridges that were on the watch list. Some time when we received from the State of CT. a grant - the road will be totally closed. This item had 6 bidders - little less then 500,000 and will get some reimbursement. Thsi bridge was built in 1939 so there are issues - have to be careful to make sure nothing falls into the stream. neetign will be put under the bridge to make sure nothign does fall into the stream. Will be making bridge as close to what was there. Anwar - the marathon will be in this area. ther eis an opportunity to maximize this part of our town. that area needs to be looked at - ther eis an opportunity for improvmeent - people need to know how beatuiful it is over there.

Delnicki - Galligan - Sept need to get done Delnicki - what assurance do we have that this bridge will be done? Galligan - there was a discussion today - contractor told us that materials could be 10 weeks out. I think Jeff is looking to redesign a little bit so that materials will be in and can get done before the marathon. Hopefully Jeff will have that information tomorrow. Need to get done for Sept 29th may not get done, depends on information Jeff Doolittle gets tomorrow. will not have an effect on the taxpayer. Delnicki - terrible embrassment if the marathon coudl not continue in this course.

Prague - does this have to go back to the State if there is achange Mike - we have contract - we bid this last year. it has to be finished before Sept 29 or it can not be done. Permitting process has been ridiculous which slowed things down. Depending on what goes on here that will make the decision if going to be done or not. Prague - does this have to be done, they finished about three months after they finished the paving? Mike - this is a different type of project. Trying to reproduce the same look at the current bridge. Prague - will main street be closed? Mike - yes - Prague - near Kasheta's Mike - yes

6. Items for Discussion

A. Water Pollution Control Authority Advisory Committee Report

Galligan - the Council asked for a Committee to look at some of the issues that are facign the WPCA. Look at having the debt service being paid by general fund. The big issues sewer service needs and rehabilitation for WPCA. The Council passed resolution - - the 1/20th payment by the WPCA in 2013. The Committee feels each household should be billed based on usage. A method and formula will need to be devised to implement this method. We are looking at Vernon, Manchester for guidance. The other issue is we have to work with MDC and CT Water. Still also have private water companies to determine how much we should be charging appropriately. Have a year capital portion for pump stations and things like that that everyone would have to pay.

Yagaloff - Thanked the Committee. The exhibit 1 is resolution that was passed in 2010 by the Town Council. After legal opinion there was another legal opinion from the Town ATtorney that WPCA requested. AT this point, what is the legal opinion as far as who controls decision making and capital projets for WPCA? Dwight - last May we prepared a memo which I though the Council had received which discussed the powers of the WPCA. The memo pointed out that ther have been specail acts that have addressed this issue inconsistently over the years. WPCA has power to detemrine rates and charges for the sewer syste. user fees established by WPCA will maintain the system. WPCA annual budget is subject ot approval of the Town Council. Yagaloff - wpca have teh right to appropirate and fund expendses involivng capital projects, capital funds? Dwight - the cost of capital improvements. does not have the power to require the town to pick up those costs. The Tow Council would make the appropriate decision. Yagaloff - Dwight - both were correct in some cases. can not say we came in with one side or the other Yagaloff - capital projects, capital refserves, out of fhe current budget, what percentage is operation and mainteannce, caPITAL reserves or debt service? Galligan - think you have 4M budget., 700,000 for th 1/20 payment, capital for 750,000. Yagaloff - how much in a separate reserve? capital projects and debt service? Fred - 882,000 and replacement reserve is 750,000. what happens is there are soem debt servcie here. any oth Yagalof - oepartion and maintenance? Galligan - 4M revenue, permit fees 3,000, 60,000 connection, Yagalof f- expense side 2,M, debt 195,000; equipmetn repalcemtn, Yagaloff about 1.6M for the reserve and for the capital and operation budget of 2.8M. sewer fees went up last year and TC did not have any control with that. How are we going to address the sewer fees? How do we address the escalation in sewer fees, and do we reserve funds ------? if ther eis a 60% surcharge for other items, how do the sewer users feel about paying that? Galligan - the total increase is 10% which includes everything Yagaloff - we are increasing the budget to get additional funds. why are fees going up when the sewer fees are not paying for plant? Galligan - there is 1/20th payment. 340.00 Yagaloff - Galligan - 8 to 900,000 was saved for design and getting the design where it was supposed ot be. Yagaloff - we are billing into our user fees to get pump station upgrades done, few at a time, why are they continuing billing for 1/20th payment Galligan - when went to referendum - thought 500,000 was taken out of their budget. paid for the Ellington pump station. Yagaloff - agree about fair billing. the commercial billing needs to be addressed still. Thought the comitte was going to address the escalation in fees? Galligan - i raised the issue of fairness of paying and the issues of fees was never an issue. I think the committee was very concerned - looka t recommendation - fees has to be looked at and need help from MDC and CT Water. They are prepared to start discussing. Yagalof f- sewer fee charge, we can talk forever about these fees. i woudl ike WPCA to present before June, how are you going to reduce these fees. Would like to plan by WPCA of how to address the escalation of the fees and take back to level that is affordable. current fee structure includes a large Galligan - the committee wants to continue this process. This committe had not power of telling WPCAS what shoudl be charged but they are working with us.

Bazzano - we are a long way from finishing. Our main objective is to figure out how to pay for improvements to plant. Working with WPCA to reduce sewer fees. We have taken 750,000 this year and next year 700,00 to pay for 1/20th payment? Fred - correct Bazzano - sewer fee woudl go down with the plant improvemetns paid for? Fred - would like to stablize the sewer user fee in teh future. our pump stations need to be rehabilitated. we hav enot been able to do that in the past because there seems to be issues that come up. That cost the town over 260,000. Based on study that was done, replacement of other concrete pioping and another project will need to be done. 900,000 to restore pipe that could collapse at any time. we have a plan and have identified plan that we need to provide for. The intent is to stablize. the fee goes up because we have sort term objectives and long term objects to make sure have funds in case of emergencies. Bazzano - we have the money putting it in ther for the 1/20th payment. could the rate go up, yes but could go down also. Fred - we are looking to stabilize the user fee. Galligan - there are difficultties because of water usage. cost of billing , paper, etc. trying to get all mechanisms forward to take care of everything.

Dwight - the agreements would have to be renegotiated. Chairperson WPCA - WPCa values andlistens to the Council's input. Two years ago lowered the fees because of Town Council's concern. Ultimately the decision is WPCA but the Town Council is a valued partner. The current rates have been below the statewide averages. 367.00 average when ours was 288.00. We are going up this year in need of keeping the reserves. Having reserves is a sound policy. Recess work session 8:00 p.m

Reconvened at 8:42 p.m.

McCann - in going forward with any policies going fforwad for the sewer plan need to 1) have certain users of the system that do not live in town yet they use the system. 2) have some residents that are not connected to system. They do benefit in the system. we want to find way for the out of town users to pay their fair share. don't want to get into conversation with Manchester or Vernon - but think we do need to address that there are 400 out of town users that do not pay taxes for the pgrade but they shoudl pay fair share. Recognize the plant is used by all facilities of the town, Town Hall, etc - can make more fair to have others pay fair share. suggest should be reviewed.

Havens - sitting on subcommittee - last council tried to come to agreement - sewer costs by general government - there was some opposiiton, glad agreeable by this council. will eleviate user fee - 1/20th payment picked up by general government. need to discuss a fair way to charge each individual. the workings of the sewer commission is very difficult and very important to the community. seems to me we have burned them with another load with their budget. in my opinion they do a great job and do not see how we can ask them to cut the user fee any more.

Anwar - last year when we asked how much in reserve fund, it was difficult to get that answer because the funds were not organized, do we now know how much in reserve fund? Galligan - Finance Director gave an outline. If you go through that, capital projects for pump stations, rehab of Chapel Hill sewer lines and that was given to Council. Once they determine something is capital that is put into another fund. Can have that reissued and update for the Council in thei report 1.2 million - 23M transfer in, 22M outgoing, actual 5M, encumbr 7M - about 27M - total revenue 900,000 lfeft in there in the capital reserve account. Anwar - if understand approixmately 900,000 Galligan - 916,000 left as a balance as of March 21, 2012 and does change every week. Anwar - a lot of unbudgeted things are happening. So would not be a part of your unreserved? Galligan - it is like a fund balance Anwar - previous years felt very fluid - Galligan - can ask the Finance Director to get the most up to date Anwar - what are the expendses based on the study that was done? Fred - we are looking at about 42,400 in Engineer Fee (repalcemnt of concere and Clark sTreet force main). Teh construction is over 800,000 Anwar - and that means that will essentially take away the reserve Fred - everything is designated for some purpose. Anwar - the 260,000 where was that money? Fred - we took funds out of the I & I and rehabilitaion fund which is something that is contributed to every year for unexpected. Anwar - the added expense for this year this will be etra besides everything else Fred - that is in the budget fo rnext year Anwar - is there a difference in teh fees for the condominum units? Fred - not it is same, flat fee for all residential use Anwar - if condo with 10 homes in it, each unit will be the same? Fred - yes Anwar - in this situation we need to look at the condo's need to find a way to elp that group of not raising their sewer user fees. the usage is not going to be approixmate. Galligan - do not think that is necessarily true, may have four people living in condo - will be based on usage. Anwar - we have to not wait for that perfection Galligan - hoping this committee coudl continue - we have to figure out Anwar - the formulat we have is not correct for this budget year Galligan - formula - looking to make changes - have looked at looking at winter months but then Vernon decided that 80% of the water that goes in comes out. Anwar - there are reasonable charges. while we are trying to figure that out we need to come up with something to give people relief this year. Galligan - do not know how you come up with a formula that quick. Anwar - how was Vernon able to do this? Galligan - they did an analysis and applied it to the community. Anwar - we hav enot been able to do the calculations Galligan - Vernon has accurate information. Manchester supplies their own water. Anwar - how many letters have been going out to the water companies? Galligan - CT Water Company rep. is pulling information for us. MDC will also participate. Will try to get in for the next budget year. Can't get it for this budget year. need time to educate community. Anwar - everyone gets a water bill - that inforamtion is available at least to someone. how come we can't get that information Galligan - we need to cnvert inforamtion - it is not an unreasonable task but want to be accurate. Anwar - Vernon has been able to do that. Maybe we shoudl get different water company Galligan - can not get one town official to let me know how they came up with this information. Anwar - Vernon has open meetings and they can tell you how they did it. we need to move in the right direction and thought it would be this budget cycle. Galligan - we are going to look at this for the next budget cycle. I want to be accurate. you are making a major change. our rate is still cheaper then aroudn us. I am willing to make a change but not appropriate to be said to that we are not doing our work. WPCA can tell us they don't want to do anything.. Anwar - 2013 is budget we are looking for? Galligan - yes

Yagaloff - what is the reserve balance and I remember reading - there are several reserve accounts, what is the total in all of the accounts, is is the 900,000? Fred - 23,234., 268,421; 42,000; 204,062; 228,979; 894,000; Yagaloff - what are the reserve balances, Fred - fund balance 152,518 Yagalof f-w ell in excess of 900,000 - want to reflect on what Rabbi Glickman said - the level of intelligence is wisdom - kindness is the end result - understand need to operate sewer fund but no one here has asked about the sewer fees. there has to be a measure built into the process of those who pay the fees. When the town decides to put plant in general government budge there was discussion about not escalating the sewer user fees. I would like the Council to step up and do somethign about this. The sedwer dept can not make these fees higher in this economy. Rate stabilization should not be done in this economy. nothing in the report says anything about fee stabilization.

Delnicki - obviously the committee has more work to do and this is not a final draft. Gallligan - there has to be a mechanism that is used - WPCA has to discuss this with the committee. I think out of this look at changing fees across the board for usage. When the times are good I was told not to have an increase. my request is when economy does get better the funds need to be put into the budget to increase fund - 0% does not get you elected. people want services - want to make sure everyone is doing what is right. When we do have good times, expect the Council to step up and get things done that should be done. I do not control the WPCA budget. Delnicki - we all know we are in tough times. Septic users - where I work MDC, we - septic usesrs that are not tied into our system receive septic pump out every few years. we hav einfrastructure surcharge on rates. These are things that should be considered. 17% of community can't or don't or have a septic tank. If the town is going to come up with formula, it has to be done right. I would expect the committee to stay for a time because - ---

B. Water Pollution Control Authority Budget

Bazzano - I am trying to figure out what we are taking out - seems like eveyorne wants the user fee to stay stable. I want people to understand that we are working on that. What are we taking away tonight? Galigan - if you are going to give information tot he Town people, taxes to pay for that, calcualte all of the flows that we are not paying for. Libraruy, Town Hall, equate that and compare to the value of tax rate. The town buildngs are not charged here - we may need to look at that. Have to look at fee. We need to work on user fee first and how to come up with something fair. Then we have to look at budgets. What are all the things we do and what are the values of those items. Doing something with septic users, first charge user fee, second - justification, thrid - septic users = and put all into one package. I do not thiink you need another resolution by teh council unless you would like to change it. Delnicki - what the impact is on every tax payer breaking it out as we are proposing. I think we need to know what that is, what would the impact be looking at the payoff schedule. Galligan - we can incorporate that in.

B. Water Pollution Control Authority Budget

Chairman of WPCA - wanted to address the Council - Fred will be doing the budget. WPCA is extremely focused on fairness. We want to make sure actions are carefully considered and we deliverate carefully. we have deferred some items that were requested by Fred. Many of the reserves are money that is there but will be used for essential operations. if the TC really wants to talk about holding a line and not spending monies then woudl ike to hear that. (don't replace any of the pipes, etc.) that is a way that we can lower our rates. Fred Shaw - the idea of reserves - represent projects that were appropriated in previous years that have not been completed yet. They are set aside for the completion of projects. REserves are not for the future they are reserved for projects that are to be completed. The budget for 2012/2013, t3.4% oepartion budget increasing by. much of this is for the new plant itself. WE have made some assumptions because we do not know how the new plant will opeartate. Debt SErvice has not increased at all. 28,992 to Vernon for State project. 195,630 has been constand for a number of years. beyond that capital improvements is in the budget - went through those numbers. reviewed items for the future that are part of the report that will need to be done in the future. 2018/2019 3M - 2.3M in 2022/2023 - the report is not finished yet. those are the basic expenses that we are looking at for the future. These items need to be looked at now for the future. 3.4% increase in opearting budget - we are anticipating increases in wages, decreased in overtime hours by over 17,500; increase in employee benefits 41,573; decrease in use of ____ 33,000; increases in fuel costs 2,400; decrease of repair pump station 23,000; increase in insurance; increase in pone service; increase cost sin electricity and fuel 83,000; decreased costs for service calls; decreased traiing; transferred fund from one account to another; increase equipment 17,000;

Yagaloff - anticipated sewer user fee? Fred - 374.00 - increase of 34.00 per year or 65 cents per week Yagaloff - what is the additional 24.00 - 3% opeartion and maintenance 10.00 - how much additional revenue will be reaided for the additional 24.00 Fred - the increase of user rate - the opeartig budget is 2.8 million - increasing by 3.4%. yagalof f- what is the total amount of new revenue that will be raised by the 34.00 increase of sewer users? Fred - 4M raising - Yagalof - old user fee Fred - 3.6M Yagaloff - how much being taken out for current reserves? Fred - the only things being taken out are 50,000 for manhole rehab, 882,000 for concrete repair, 700,000 - adds to 1.6M Yagaloff - in additional to o & m we are running at 1.6M above o & M and now going up to 2M. want to go back to the concept that we are not Fred - there are reserves that I spoke of earlier - we have nothing in the reserves except for old projects and now we are going to be putting new revenues in for new projects proposed. yagalof - you are putting 1.6M now for reserves. Fred - the 1.6 million has already been set aside raised by former revenue - restricte for certain use Yagaloff - so you are not airmarking Fred - for new reserves 50,000; 882,000; 700,000 - are the proposed new itesm that woudl be raised by revenues that will be collected next year. Yagalof f- this is so frustrating - supposed to be looking at two components. would like discussion how can keep fees in line. I think 1.6M is enough for sewer users to pay in is enough. Don't need 2M per year

Anwar - I know when using the term reserve fund we are using that term for appropirated funds - are there any funds that are used for rate stabilization or emergencies Fred - manhole - is unanticipated Anwar - how much Fred - it is there to handle for unforeseen. 268,000 in that fund Anwar - how much would this go up with the 34.00 fee FRed - 50,000

Delnicki - need clear break out - I am listening to the explanation and think that would be helpful. How do we take a middle of the road approach here. Fred - these are capital projects that span more than one fiscal year. They have been appropraited previous years. Delnicki - balances of projects that are not done. Fred - these are previous projects in previous years that have been approved and we have not finished them. When they are finished and there are funds remaiing they are placed in fund balance.

7. Executive Session

8. adjourn SNyder, Prague, unanimous 10:00 p.m.

May 21, 2012 Town Council Work Session

Full agenda
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1. Call Meeting to Order

7:04

2. Roll Call

Roll call (10 Present, 0 Absent, 0 Excused)

3. Public Participation [Per Town Council Rules, this segment of the meeting shall not exceed thirty (30) minutes unless extended by the Mayor, with the consent of the majority of the Town Council.]

4. Communications

5. Town Manager's Report [Per Town Council Rules, this segment of the meeting shall not exceed ten (10) minutes unless extended by the Mayor, with the consent of the majority of the Council.]

Thanked the Council for the budget. Will try to stick to the budget the best we can if we need anything will come to the Council. The Main Street will be underway shortly. The bridge needs to be done for the marathan because it is part of the route. Town of SouthWindsor received another award for GIS for the second time. Will be sending sonmeone out to San Diego to receive that award. Will be on vacation - Vanessa will be in charge. Yagaloff - replacement - administrative backup - what happens if there is an emergency Galligan - we have our objectives already in line. would probably come back if there was something terrible. Yagaloff - the other day you were away, if there was a decision making that had to be made would Vanessa be making those decisions? Galligan - yes or she would contact someone who would make those decisions. Yagaloff - could we get some kind of feedback or information with the level of training she has in case there is an emergency. Galligan -we can have those discussions Delnicki - good solid chain of command should be reviewed also.

McCann - Chain of command worked well in the snow storm (October). Should be proud of your Department Heads. A lot of directions occurred from the Department Heads and not the Town Manager. Galligan - that is what is supposed to happen. Everyone has been trained to do what needs to be done if I am here or not. McCann - you mentioned the award regarding GIS - South Windsor stood out from 100,000 others.

Anwar - Main Street bridge - can you tell us about the contractor Galligan - we had three bridges that were on the watch list. Some time when we received from the State of CT. a grant - the road will be totally closed. This item had 6 bidders - little less then 500,000 and will get some reimbursement. Thsi bridge was built in 1939 so there are issues - have to be careful to make sure nothing falls into the stream. neetign will be put under the bridge to make sure nothign does fall into the stream. Will be making bridge as close to what was there. Anwar - the marathon will be in this area. ther eis an opportunity to maximize this part of our town. that area needs to be looked at - ther eis an opportunity for improvmeent - people need to know how beatuiful it is over there.

Delnicki - Galligan - Sept need to get done Delnicki - what assurance do we have that this bridge will be done? Galligan - there was a discussion today - contractor told us that materials could be 10 weeks out. I think Jeff is looking to redesign a little bit so that materials will be in and can get done before the marathon. Hopefully Jeff will have that information tomorrow. Need to get done for Sept 29th may not get done, depends on information Jeff Doolittle gets tomorrow. will not have an effect on the taxpayer. Delnicki - terrible embrassment if the marathon coudl not continue in this course.

Prague - does this have to go back to the State if there is achange Mike - we have contract - we bid this last year. it has to be finished before Sept 29 or it can not be done. Permitting process has been ridiculous which slowed things down. Depending on what goes on here that will make the decision if going to be done or not. Prague - does this have to be done, they finished about three months after they finished the paving? Mike - this is a different type of project. Trying to reproduce the same look at the current bridge. Prague - will main street be closed? Mike - yes - Prague - near Kasheta's Mike - yes

6. Items for Discussion

A. Water Pollution Control Authority Advisory Committee Report

Galligan - the Council asked for a Committee to look at some of the issues that are facign the WPCA. Look at having the debt service being paid by general fund. The big issues sewer service needs and rehabilitation for WPCA. The Council passed resolution - - the 1/20th payment by the WPCA in 2013. The Committee feels each household should be billed based on usage. A method and formula will need to be devised to implement this method. We are looking at Vernon, Manchester for guidance. The other issue is we have to work with MDC and CT Water. Still also have private water companies to determine how much we should be charging appropriately. Have a year capital portion for pump stations and things like that that everyone would have to pay.

Yagaloff - Thanked the Committee. The exhibit 1 is resolution that was passed in 2010 by the Town Council. After legal opinion there was another legal opinion from the Town ATtorney that WPCA requested. AT this point, what is the legal opinion as far as who controls decision making and capital projets for WPCA? Dwight - last May we prepared a memo which I though the Council had received which discussed the powers of the WPCA. The memo pointed out that ther have been specail acts that have addressed this issue inconsistently over the years. WPCA has power to detemrine rates and charges for the sewer syste. user fees established by WPCA will maintain the system. WPCA annual budget is subject ot approval of the Town Council. Yagaloff - wpca have teh right to appropirate and fund expendses involivng capital projects, capital funds? Dwight - the cost of capital improvements. does not have the power to require the town to pick up those costs. The Tow Council would make the appropriate decision. Yagaloff - Dwight - both were correct in some cases. can not say we came in with one side or the other Yagaloff - capital projects, capital refserves, out of fhe current budget, what percentage is operation and mainteannce, caPITAL reserves or debt service? Galligan - think you have 4M budget., 700,000 for th 1/20 payment, capital for 750,000. Yagaloff - how much in a separate reserve? capital projects and debt service? Fred - 882,000 and replacement reserve is 750,000. what happens is there are soem debt servcie here. any oth Yagalof - oepartion and maintenance? Galligan - 4M revenue, permit fees 3,000, 60,000 connection, Yagalof f- expense side 2,M, debt 195,000; equipmetn repalcemtn, Yagaloff about 1.6M for the reserve and for the capital and operation budget of 2.8M. sewer fees went up last year and TC did not have any control with that. How are we going to address the sewer fees? How do we address the escalation in sewer fees, and do we reserve funds ------? if ther eis a 60% surcharge for other items, how do the sewer users feel about paying that? Galligan - the total increase is 10% which includes everything Yagaloff - we are increasing the budget to get additional funds. why are fees going up when the sewer fees are not paying for plant? Galligan - there is 1/20th payment. 340.00 Yagaloff - Galligan - 8 to 900,000 was saved for design and getting the design where it was supposed ot be. Yagaloff - we are billing into our user fees to get pump station upgrades done, few at a time, why are they continuing billing for 1/20th payment Galligan - when went to referendum - thought 500,000 was taken out of their budget. paid for the Ellington pump station. Yagaloff - agree about fair billing. the commercial billing needs to be addressed still. Thought the comitte was going to address the escalation in fees? Galligan - i raised the issue of fairness of paying and the issues of fees was never an issue. I think the committee was very concerned - looka t recommendation - fees has to be looked at and need help from MDC and CT Water. They are prepared to start discussing. Yagalof f- sewer fee charge, we can talk forever about these fees. i woudl ike WPCA to present before June, how are you going to reduce these fees. Would like to plan by WPCA of how to address the escalation of the fees and take back to level that is affordable. current fee structure includes a large Galligan - the committee wants to continue this process. This committe had not power of telling WPCAS what shoudl be charged but they are working with us.

Bazzano - we are a long way from finishing. Our main objective is to figure out how to pay for improvements to plant. Working with WPCA to reduce sewer fees. We have taken 750,000 this year and next year 700,00 to pay for 1/20th payment? Fred - correct Bazzano - sewer fee woudl go down with the plant improvemetns paid for? Fred - would like to stablize the sewer user fee in teh future. our pump stations need to be rehabilitated. we hav enot been able to do that in the past because there seems to be issues that come up. That cost the town over 260,000. Based on study that was done, replacement of other concrete pioping and another project will need to be done. 900,000 to restore pipe that could collapse at any time. we have a plan and have identified plan that we need to provide for. The intent is to stablize. the fee goes up because we have sort term objectives and long term objects to make sure have funds in case of emergencies. Bazzano - we have the money putting it in ther for the 1/20th payment. could the rate go up, yes but could go down also. Fred - we are looking to stabilize the user fee. Galligan - there are difficultties because of water usage. cost of billing , paper, etc. trying to get all mechanisms forward to take care of everything.

Dwight - the agreements would have to be renegotiated. Chairperson WPCA - WPCa values andlistens to the Council's input. Two years ago lowered the fees because of Town Council's concern. Ultimately the decision is WPCA but the Town Council is a valued partner. The current rates have been below the statewide averages. 367.00 average when ours was 288.00. We are going up this year in need of keeping the reserves. Having reserves is a sound policy. Recess work session 8:00 p.m

Reconvened at 8:42 p.m.

McCann - in going forward with any policies going fforwad for the sewer plan need to 1) have certain users of the system that do not live in town yet they use the system. 2) have some residents that are not connected to system. They do benefit in the system. we want to find way for the out of town users to pay their fair share. don't want to get into conversation with Manchester or Vernon - but think we do need to address that there are 400 out of town users that do not pay taxes for the pgrade but they shoudl pay fair share. Recognize the plant is used by all facilities of the town, Town Hall, etc - can make more fair to have others pay fair share. suggest should be reviewed.

Havens - sitting on subcommittee - last council tried to come to agreement - sewer costs by general government - there was some opposiiton, glad agreeable by this council. will eleviate user fee - 1/20th payment picked up by general government. need to discuss a fair way to charge each individual. the workings of the sewer commission is very difficult and very important to the community. seems to me we have burned them with another load with their budget. in my opinion they do a great job and do not see how we can ask them to cut the user fee any more.

Anwar - last year when we asked how much in reserve fund, it was difficult to get that answer because the funds were not organized, do we now know how much in reserve fund? Galligan - Finance Director gave an outline. If you go through that, capital projects for pump stations, rehab of Chapel Hill sewer lines and that was given to Council. Once they determine something is capital that is put into another fund. Can have that reissued and update for the Council in thei report 1.2 million - 23M transfer in, 22M outgoing, actual 5M, encumbr 7M - about 27M - total revenue 900,000 lfeft in there in the capital reserve account. Anwar - if understand approixmately 900,000 Galligan - 916,000 left as a balance as of March 21, 2012 and does change every week. Anwar - a lot of unbudgeted things are happening. So would not be a part of your unreserved? Galligan - it is like a fund balance Anwar - previous years felt very fluid - Galligan - can ask the Finance Director to get the most up to date Anwar - what are the expendses based on the study that was done? Fred - we are looking at about 42,400 in Engineer Fee (repalcemnt of concere and Clark sTreet force main). Teh construction is over 800,000 Anwar - and that means that will essentially take away the reserve Fred - everything is designated for some purpose. Anwar - the 260,000 where was that money? Fred - we took funds out of the I & I and rehabilitaion fund which is something that is contributed to every year for unexpected. Anwar - the added expense for this year this will be etra besides everything else Fred - that is in the budget fo rnext year Anwar - is there a difference in teh fees for the condominum units? Fred - not it is same, flat fee for all residential use Anwar - if condo with 10 homes in it, each unit will be the same? Fred - yes Anwar - in this situation we need to look at the condo's need to find a way to elp that group of not raising their sewer user fees. the usage is not going to be approixmate. Galligan - do not think that is necessarily true, may have four people living in condo - will be based on usage. Anwar - we have to not wait for that perfection Galligan - hoping this committee coudl continue - we have to figure out Anwar - the formulat we have is not correct for this budget year Galligan - formula - looking to make changes - have looked at looking at winter months but then Vernon decided that 80% of the water that goes in comes out. Anwar - there are reasonable charges. while we are trying to figure that out we need to come up with something to give people relief this year. Galligan - do not know how you come up with a formula that quick. Anwar - how was Vernon able to do this? Galligan - they did an analysis and applied it to the community. Anwar - we hav enot been able to do the calculations Galligan - Vernon has accurate information. Manchester supplies their own water. Anwar - how many letters have been going out to the water companies? Galligan - CT Water Company rep. is pulling information for us. MDC will also participate. Will try to get in for the next budget year. Can't get it for this budget year. need time to educate community. Anwar - everyone gets a water bill - that inforamtion is available at least to someone. how come we can't get that information Galligan - we need to cnvert inforamtion - it is not an unreasonable task but want to be accurate. Anwar - Vernon has been able to do that. Maybe we shoudl get different water company Galligan - can not get one town official to let me know how they came up with this information. Anwar - Vernon has open meetings and they can tell you how they did it. we need to move in the right direction and thought it would be this budget cycle. Galligan - we are going to look at this for the next budget cycle. I want to be accurate. you are making a major change. our rate is still cheaper then aroudn us. I am willing to make a change but not appropriate to be said to that we are not doing our work. WPCA can tell us they don't want to do anything.. Anwar - 2013 is budget we are looking for? Galligan - yes

Yagaloff - what is the reserve balance and I remember reading - there are several reserve accounts, what is the total in all of the accounts, is is the 900,000? Fred - 23,234., 268,421; 42,000; 204,062; 228,979; 894,000; Yagaloff - what are the reserve balances, Fred - fund balance 152,518 Yagalof f-w ell in excess of 900,000 - want to reflect on what Rabbi Glickman said - the level of intelligence is wisdom - kindness is the end result - understand need to operate sewer fund but no one here has asked about the sewer fees. there has to be a measure built into the process of those who pay the fees. When the town decides to put plant in general government budge there was discussion about not escalating the sewer user fees. I would like the Council to step up and do somethign about this. The sedwer dept can not make these fees higher in this economy. Rate stabilization should not be done in this economy. nothing in the report says anything about fee stabilization.

Delnicki - obviously the committee has more work to do and this is not a final draft. Gallligan - there has to be a mechanism that is used - WPCA has to discuss this with the committee. I think out of this look at changing fees across the board for usage. When the times are good I was told not to have an increase. my request is when economy does get better the funds need to be put into the budget to increase fund - 0% does not get you elected. people want services - want to make sure everyone is doing what is right. When we do have good times, expect the Council to step up and get things done that should be done. I do not control the WPCA budget. Delnicki - we all know we are in tough times. Septic users - where I work MDC, we - septic usesrs that are not tied into our system receive septic pump out every few years. we hav einfrastructure surcharge on rates. These are things that should be considered. 17% of community can't or don't or have a septic tank. If the town is going to come up with formula, it has to be done right. I would expect the committee to stay for a time because - ---

B. Water Pollution Control Authority Budget

Bazzano - I am trying to figure out what we are taking out - seems like eveyorne wants the user fee to stay stable. I want people to understand that we are working on that. What are we taking away tonight? Galigan - if you are going to give information tot he Town people, taxes to pay for that, calcualte all of the flows that we are not paying for. Libraruy, Town Hall, equate that and compare to the value of tax rate. The town buildngs are not charged here - we may need to look at that. Have to look at fee. We need to work on user fee first and how to come up with something fair. Then we have to look at budgets. What are all the things we do and what are the values of those items. Doing something with septic users, first charge user fee, second - justification, thrid - septic users = and put all into one package. I do not thiink you need another resolution by teh council unless you would like to change it. Delnicki - what the impact is on every tax payer breaking it out as we are proposing. I think we need to know what that is, what would the impact be looking at the payoff schedule. Galligan - we can incorporate that in.

B. Water Pollution Control Authority Budget

Chairman of WPCA - wanted to address the Council - Fred will be doing the budget. WPCA is extremely focused on fairness. We want to make sure actions are carefully considered and we deliverate carefully. we have deferred some items that were requested by Fred. Many of the reserves are money that is there but will be used for essential operations. if the TC really wants to talk about holding a line and not spending monies then woudl ike to hear that. (don't replace any of the pipes, etc.) that is a way that we can lower our rates. Fred Shaw - the idea of reserves - represent projects that were appropriated in previous years that have not been completed yet. They are set aside for the completion of projects. REserves are not for the future they are reserved for projects that are to be completed. The budget for 2012/2013, t3.4% oepartion budget increasing by. much of this is for the new plant itself. WE have made some assumptions because we do not know how the new plant will opeartate. Debt SErvice has not increased at all. 28,992 to Vernon for State project. 195,630 has been constand for a number of years. beyond that capital improvements is in the budget - went through those numbers. reviewed items for the future that are part of the report that will need to be done in the future. 2018/2019 3M - 2.3M in 2022/2023 - the report is not finished yet. those are the basic expenses that we are looking at for the future. These items need to be looked at now for the future. 3.4% increase in opearting budget - we are anticipating increases in wages, decreased in overtime hours by over 17,500; increase in employee benefits 41,573; decrease in use of ____ 33,000; increases in fuel costs 2,400; decrease of repair pump station 23,000; increase in insurance; increase in pone service; increase cost sin electricity and fuel 83,000; decreased costs for service calls; decreased traiing; transferred fund from one account to another; increase equipment 17,000;

Yagaloff - anticipated sewer user fee? Fred - 374.00 - increase of 34.00 per year or 65 cents per week Yagaloff - what is the additional 24.00 - 3% opeartion and maintenance 10.00 - how much additional revenue will be reaided for the additional 24.00 Fred - the increase of user rate - the opeartig budget is 2.8 million - increasing by 3.4%. yagalof f- what is the total amount of new revenue that will be raised by the 34.00 increase of sewer users? Fred - 4M raising - Yagalof - old user fee Fred - 3.6M Yagaloff - how much being taken out for current reserves? Fred - the only things being taken out are 50,000 for manhole rehab, 882,000 for concrete repair, 700,000 - adds to 1.6M Yagaloff - in additional to o & m we are running at 1.6M above o & M and now going up to 2M. want to go back to the concept that we are not Fred - there are reserves that I spoke of earlier - we have nothing in the reserves except for old projects and now we are going to be putting new revenues in for new projects proposed. yagalof - you are putting 1.6M now for reserves. Fred - the 1.6 million has already been set aside raised by former revenue - restricte for certain use Yagaloff - so you are not airmarking Fred - for new reserves 50,000; 882,000; 700,000 - are the proposed new itesm that woudl be raised by revenues that will be collected next year. Yagalof f- this is so frustrating - supposed to be looking at two components. would like discussion how can keep fees in line. I think 1.6M is enough for sewer users to pay in is enough. Don't need 2M per year

Anwar - I know when using the term reserve fund we are using that term for appropirated funds - are there any funds that are used for rate stabilization or emergencies Fred - manhole - is unanticipated Anwar - how much Fred - it is there to handle for unforeseen. 268,000 in that fund Anwar - how much would this go up with the 34.00 fee FRed - 50,000

Delnicki - need clear break out - I am listening to the explanation and think that would be helpful. How do we take a middle of the road approach here. Fred - these are capital projects that span more than one fiscal year. They have been appropraited previous years. Delnicki - balances of projects that are not done. Fred - these are previous projects in previous years that have been approved and we have not finished them. When they are finished and there are funds remaiing they are placed in fund balance.

7. Executive Session

8. adjourn SNyder, Prague, unanimous 10:00 p.m.

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