Video index

1. Call Meeting to Order

8:01

2. Roll Call

Roll call (9 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 a majority of the Town Council.]

None

4. Items for Discussion

A. Sewer User Fees

Richard Aries felt he should be questioned about agenda items next time an agenda is put together, he would like input.

Richard Aries - would like to seek resolution regarding this debt at the next Council meeting. We would like to commit resources and have asked Fred to put together what we would be contributing. Would like commitment from the Town Council with a resolution. Pelkey - commitment on fee structure for this year Richard AReis - the 1/20th payment and all the monthly payments thereafter. seem to be looming issue of how much sewer user fees are going to be. would like to know what Town Council would be committing. Current fees are not enough to pay the initial 1/20th payment. If we were to pay the initial 1/20th apyment that would have to raise sewer user fees. Pelkey - are you talking about fees to pay off debt or capital projects. Aries - mainly focusing on the 1/20th payment that is coming due. one thing WPCA feels strongly about is the need for reserves sufficient to cover expected equipoment replacement as well as operation and maintainenance and the unexpected. Right now focus is on these payments that are coming due. Pelkey - at the last meeting we talked about the 1/20th payment and the current Council had set a resolution that we would be bondong the overall sewer plant and the plan to get the first payment is to use the 952,000 and the dollars generated in the sewer fee structure. The concern at the tine had to do with making sure there were dollars available in case of an emergency occurring. ONe of the things brought up regarding wht was generated by the current fee - question McCann raised hoping to get tht tonight. For every 10 dollars added to fee what would that utilize. Fred - just under 84,000 if you applied 10.00 towards every sewer user. 83,600 exactly and tht changes weekly. Pelkey - it owuld only change how? Fred -s ubject year to year with opertions. McCann - if everything is stays the same then adding 10.00 would add 83,600. Pelkey - the generation of the amount will not change. Costs would be the variable. Fred - things could happen that are not budgeted for. Anwar - The council recognizes that this is important. We need to plan now rather than later. in order to try ot understand what number needs to be looked at for the debt we have right now. want to kow what type of funds are available for emergencies. Councillor Yagaloff wanted the specific number. Wanted to know where else the funds can be identified.

Pelkey - do we have projected numbers? Aries - there are projections that were roughed out to obtain certain goals. one entailed 52.00 increase; another 61.00 after that. This is in preparation to cover the 1/20th payment. Fred - we do have information that was passed out to the Mayor regarding capital projects and detailed description what was available, restricted and unrestricted. McCan - this shows negative amount because you can't count on the funds being available through the water grant. Fred - do receive the funds from the clean water fund now in order to pay our current expenses for the treatment plant. after will subtract the grant that is received. will assume pyament Sept. 30, 2013 low interest at 2% interest rate. Those funds are available now but do not start paying until 2013. McCann - negative amts being shown as capital projects balances, why? Fred - the intent was to provide detailed inforamtion. there are accounts taht will beclosed out and some funds being returned to sewer fund and unrestricted. We have already reduced the 952,000 by 250,000. we are in th eprocess of hiring consultant to develp, inspect and make recommendation of our future needs in other areas and what those might cost and setting up schedule. everythign is accounted for a purpse. McCann - do these also include encumbrances? yes McCann - Fred - we are on budget, we anticpate spending 37 million dollars. that figure may be reduced but figures are budgeted - we are not in a deficit just have not spent all funds yet. McCann - have only collected enough thorugh grant and receipts to cover 23.6 Fred - does not cover Feb. or March bills McCann - when all clean water funds come in an dproject completed will there be a shortfall? Fred - not a shortfall. The actual cost are covered by the State. We do have a restricted fund

Bazzano - the water fund grant receipts taht is funds we took in? Fred - from the State - after funds come in we pay contractor Bazzano - loan receipts will be paid in the future? correct Bazzano - 27994 is what SW has taken out its pocket? Fred - no the Town has not taken anything out of their pockets. Stat eputs into special account that the Town takes and pays what needs to be paid. Bazzano 4.395 is money that has not come in yet to be sent out? Fred - yes Bazzano - since February have we submitted receipts to State? Fred - yes at the end of February which were paid in March and submitted information in March and money is in the account now on the 4/18. Bazzano - the 1/20th payment of 1.7 million is due 9/2013? yes Bazzano - is it your opinion to take funds from sewer user fees? Aries - as long as we have commitment from Town Council. Initially thought we were going to get help on the 1/20th payment from the Town Council, but are willing to look to pay 1/20th payment with seweer user fees. Bazzano - increase 53 and then 61 ARies - we are still discussing this item which the one discussed tonight is one of the higher ones but are still discussing different options. Bazzano - have ooptions, what would that be as an additional amount. ARies - if no extra monies into reserves would be 26.00 increase Bazzano - each year? ARies - 26.00 - levels out after 2013 Bazzano - just payment debt payment Aries - would leave reserves very low Bazzano - at payment we are at right now we are not putting anytign into reserves Fred 588,000 which is the money tht goes into reserves at the rate we are at now. Bazzano - in order to cover 1.7 and build up reserves would rather see sewer user fee increased further. Fred - last year 340.00 reduced this year 280.00.

Pelkey - 588,000 is generated every year based on 288.00 sewer fee. if you were to touch nothing you would generate 588,000 Fred - have seen reduction in current unrestricted. Not looking at just this fiscal year. if you don't put sojething aside you will find yourself in trouble. Pelkey - trying to figure what you think you will need in the future. if you charge an extra 50.00 per sewer user you would generate an extra 400,000. The question coming up would be how much is felt to be necessary to help in the reserve fund. Pelkey - what fluctuations? Fred - connection charges. Have to make judgement on what you might be getting. Aries - besides roads, the sewer system is the jmost valuable asset the town owns. when you talk about these numbers and not taking in to account the expenses. we are looking to get 2-3% of the assets built up. Fred - we are required by all tate grants that we receive to maintain those facilities and properly set aside funds. Aries - we have an incident whre we have to act on small cement pipe - that could take away almost 1/2 a year of reserve funds. Funds can leave as fast as they come. Pelkey - new plant, new pump stations, have cement pipes that need help. these items plant and pump stations should be smaller maintenance funds necessary. Fred - there are efficiencies in energy but there are items that will cost more to run this system. we have a lot more equipment taht needs to be maintained and needs replacement at certain times. It is not just to have funds available to correct problems but it is also important to stabilze sewer user fees. Pelkey - what do you feel will be the most costly area? Fred - like to see things. the pipe that broke was hard to see. we have areas in town that we want to look closer at. would like to evaluate the conditions of the pipes. Pelkey - when pipes are replaced will be replaced with pvc. of 130 miles of pipe the most likely pipe to fail would be concrete. Fred - you want to be able to look for problems that you can not see above ground. ther emay be pipes that were installed incorrectly. Pelkey - so the unknown would be the concrete pipe. How much would it take to take 1 mile sper year? Fred - will find out priorities from consultant. Pelkey - seems would be cheaper to do a certain amount of pipe fixing per year. How much money necessary in reserve Fred - will have a plan in place in a year Areis - will be doing annual inspection of reserves. Later years hopefully will be able to lower the fees to sewer users. Pelkey - are we insured at all? Fred - on town property but not at right of way.

Bazzano what in reserves right now? 952,472 minus Bazzano - what is an ideal number you guys are looking for to build up reserves? Aries - reviewing that right now. Would like to get together to establish sewer fee. right now we do not have that commitment McCann - the commitment for debt service is a year to year basis. Aries - suspect there have been long term debts and there are long term commitment debts by Town Councils. McCann - we can not commit to something that the next Council could change. Pelkey - we don't do that with anything else in town. McCann - different they have sewer user fees coing in. Pelkey - they need commitment from Council and move forward with that. Mike Gantick - Clean water ensures tht we have adequate funding available. May want to ask the Manager. this is not general obligation bonds, we are using the clean water fund to finance it. McCann - if we had continued to keep the feees at 340.00 instead of adjusting last year to 288.00 we may have to bring back to that same level of 340.00. are we going to come to understanding or commitment with the Town Council and WPCA. Those are issues that we need to discuss. You mentioned before a proposal of 52.00 increase and then 61.00 following year. not sure waht is happening to that 952,000. thought was going to be used towards 1/20th payment. if that does happen Pelkey - somehow we need to build additional reserves and need clear evaluation of what potential problems could occur with the pipes. It will be good to have evaluation to see if there are any problems with other pipes Anwar - what is the average sewer user fee for surround towns? Aries - 360.00 was average sewer user fee for State wide. Anwar - how much should the reserves be kept at for emergency purposes? McCann - is the reserve to take care of emergencies or replace items? Arie s- variety of things, maintain the fees, Feel rates should be set based on WPCA expertise. Do not think the roll of the Town Council is to set the rates, that is a responsibility of the WPCA. Want to agree with the Town Council on the debt services, want to provide the 1/20th payment. Ask the Council to have resolution to have WPCA move forward on sewer rate and will work towards the 1/20th payment. McCann - when you look at 52.00 shifting from sewer user fees to taxes to pay for that. Pelkey - this is a town facility, the current structure was bought an dpaid for by taxes of the town. McCann - there was no alternative because there were no public sewers then. Pelkey - building facilities are paid for by all tax payers. we all use the sewer system in some way.

Anwar - after first payment - if the Town Council was taking responsibilitiy in taking that part, does the town know what that fee would be? Pelkey - would be smaller than the amount to sewer user. Anwar - this was very useful for me to learn

Frank Ferraro - we have the charge to establish our fee. When could Council address this issue? John - passed resolution last year - will re-read the resolution we can readdress that issue. Clarity from Town Manager regarding future commitments will need to be done for future funding. should have future diiscussion at a Work session or something. could present at next meeting or just email it out. Willl talk to Matt about this issue. would suspect Town Council would like to discuss with the Town Manager.

Bob Dickinson - there are houses in town that only put 1/3 of what others are put into system. Vernon does it on actual usage. Fred - yes that is correct Dickinson - spreading amongst taxpayers maybe better than doing a flat charge.

Joe - user fees are based on usage. there is no justification for charging people the same.

5. Executive Session

6. Adjournment

Motion to 6. Adjournment Moved by John Pelkey, no second required.

Vote to Approve 6. Adjournment (Approved)

9:25 p.m. Nancy Mulroy made the motion

Apr 20, 2011 Town Council/WPCA Joint Work Session

Full agenda
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1. Call Meeting to Order

8:01

2. Roll Call

Roll call (9 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 a majority of the Town Council.]

None

4. Items for Discussion

A. Sewer User Fees

Richard Aries felt he should be questioned about agenda items next time an agenda is put together, he would like input.

Richard Aries - would like to seek resolution regarding this debt at the next Council meeting. We would like to commit resources and have asked Fred to put together what we would be contributing. Would like commitment from the Town Council with a resolution. Pelkey - commitment on fee structure for this year Richard AReis - the 1/20th payment and all the monthly payments thereafter. seem to be looming issue of how much sewer user fees are going to be. would like to know what Town Council would be committing. Current fees are not enough to pay the initial 1/20th payment. If we were to pay the initial 1/20th apyment that would have to raise sewer user fees. Pelkey - are you talking about fees to pay off debt or capital projects. Aries - mainly focusing on the 1/20th payment that is coming due. one thing WPCA feels strongly about is the need for reserves sufficient to cover expected equipoment replacement as well as operation and maintainenance and the unexpected. Right now focus is on these payments that are coming due. Pelkey - at the last meeting we talked about the 1/20th payment and the current Council had set a resolution that we would be bondong the overall sewer plant and the plan to get the first payment is to use the 952,000 and the dollars generated in the sewer fee structure. The concern at the tine had to do with making sure there were dollars available in case of an emergency occurring. ONe of the things brought up regarding wht was generated by the current fee - question McCann raised hoping to get tht tonight. For every 10 dollars added to fee what would that utilize. Fred - just under 84,000 if you applied 10.00 towards every sewer user. 83,600 exactly and tht changes weekly. Pelkey - it owuld only change how? Fred -s ubject year to year with opertions. McCann - if everything is stays the same then adding 10.00 would add 83,600. Pelkey - the generation of the amount will not change. Costs would be the variable. Fred - things could happen that are not budgeted for. Anwar - The council recognizes that this is important. We need to plan now rather than later. in order to try ot understand what number needs to be looked at for the debt we have right now. want to kow what type of funds are available for emergencies. Councillor Yagaloff wanted the specific number. Wanted to know where else the funds can be identified.

Pelkey - do we have projected numbers? Aries - there are projections that were roughed out to obtain certain goals. one entailed 52.00 increase; another 61.00 after that. This is in preparation to cover the 1/20th payment. Fred - we do have information that was passed out to the Mayor regarding capital projects and detailed description what was available, restricted and unrestricted. McCan - this shows negative amount because you can't count on the funds being available through the water grant. Fred - do receive the funds from the clean water fund now in order to pay our current expenses for the treatment plant. after will subtract the grant that is received. will assume pyament Sept. 30, 2013 low interest at 2% interest rate. Those funds are available now but do not start paying until 2013. McCann - negative amts being shown as capital projects balances, why? Fred - the intent was to provide detailed inforamtion. there are accounts taht will beclosed out and some funds being returned to sewer fund and unrestricted. We have already reduced the 952,000 by 250,000. we are in th eprocess of hiring consultant to develp, inspect and make recommendation of our future needs in other areas and what those might cost and setting up schedule. everythign is accounted for a purpse. McCann - do these also include encumbrances? yes McCann - Fred - we are on budget, we anticpate spending 37 million dollars. that figure may be reduced but figures are budgeted - we are not in a deficit just have not spent all funds yet. McCann - have only collected enough thorugh grant and receipts to cover 23.6 Fred - does not cover Feb. or March bills McCann - when all clean water funds come in an dproject completed will there be a shortfall? Fred - not a shortfall. The actual cost are covered by the State. We do have a restricted fund

Bazzano - the water fund grant receipts taht is funds we took in? Fred - from the State - after funds come in we pay contractor Bazzano - loan receipts will be paid in the future? correct Bazzano - 27994 is what SW has taken out its pocket? Fred - no the Town has not taken anything out of their pockets. Stat eputs into special account that the Town takes and pays what needs to be paid. Bazzano 4.395 is money that has not come in yet to be sent out? Fred - yes Bazzano - since February have we submitted receipts to State? Fred - yes at the end of February which were paid in March and submitted information in March and money is in the account now on the 4/18. Bazzano - the 1/20th payment of 1.7 million is due 9/2013? yes Bazzano - is it your opinion to take funds from sewer user fees? Aries - as long as we have commitment from Town Council. Initially thought we were going to get help on the 1/20th payment from the Town Council, but are willing to look to pay 1/20th payment with seweer user fees. Bazzano - increase 53 and then 61 ARies - we are still discussing this item which the one discussed tonight is one of the higher ones but are still discussing different options. Bazzano - have ooptions, what would that be as an additional amount. ARies - if no extra monies into reserves would be 26.00 increase Bazzano - each year? ARies - 26.00 - levels out after 2013 Bazzano - just payment debt payment Aries - would leave reserves very low Bazzano - at payment we are at right now we are not putting anytign into reserves Fred 588,000 which is the money tht goes into reserves at the rate we are at now. Bazzano - in order to cover 1.7 and build up reserves would rather see sewer user fee increased further. Fred - last year 340.00 reduced this year 280.00.

Pelkey - 588,000 is generated every year based on 288.00 sewer fee. if you were to touch nothing you would generate 588,000 Fred - have seen reduction in current unrestricted. Not looking at just this fiscal year. if you don't put sojething aside you will find yourself in trouble. Pelkey - trying to figure what you think you will need in the future. if you charge an extra 50.00 per sewer user you would generate an extra 400,000. The question coming up would be how much is felt to be necessary to help in the reserve fund. Pelkey - what fluctuations? Fred - connection charges. Have to make judgement on what you might be getting. Aries - besides roads, the sewer system is the jmost valuable asset the town owns. when you talk about these numbers and not taking in to account the expenses. we are looking to get 2-3% of the assets built up. Fred - we are required by all tate grants that we receive to maintain those facilities and properly set aside funds. Aries - we have an incident whre we have to act on small cement pipe - that could take away almost 1/2 a year of reserve funds. Funds can leave as fast as they come. Pelkey - new plant, new pump stations, have cement pipes that need help. these items plant and pump stations should be smaller maintenance funds necessary. Fred - there are efficiencies in energy but there are items that will cost more to run this system. we have a lot more equipment taht needs to be maintained and needs replacement at certain times. It is not just to have funds available to correct problems but it is also important to stabilze sewer user fees. Pelkey - what do you feel will be the most costly area? Fred - like to see things. the pipe that broke was hard to see. we have areas in town that we want to look closer at. would like to evaluate the conditions of the pipes. Pelkey - when pipes are replaced will be replaced with pvc. of 130 miles of pipe the most likely pipe to fail would be concrete. Fred - you want to be able to look for problems that you can not see above ground. ther emay be pipes that were installed incorrectly. Pelkey - so the unknown would be the concrete pipe. How much would it take to take 1 mile sper year? Fred - will find out priorities from consultant. Pelkey - seems would be cheaper to do a certain amount of pipe fixing per year. How much money necessary in reserve Fred - will have a plan in place in a year Areis - will be doing annual inspection of reserves. Later years hopefully will be able to lower the fees to sewer users. Pelkey - are we insured at all? Fred - on town property but not at right of way.

Bazzano what in reserves right now? 952,472 minus Bazzano - what is an ideal number you guys are looking for to build up reserves? Aries - reviewing that right now. Would like to get together to establish sewer fee. right now we do not have that commitment McCann - the commitment for debt service is a year to year basis. Aries - suspect there have been long term debts and there are long term commitment debts by Town Councils. McCann - we can not commit to something that the next Council could change. Pelkey - we don't do that with anything else in town. McCann - different they have sewer user fees coing in. Pelkey - they need commitment from Council and move forward with that. Mike Gantick - Clean water ensures tht we have adequate funding available. May want to ask the Manager. this is not general obligation bonds, we are using the clean water fund to finance it. McCann - if we had continued to keep the feees at 340.00 instead of adjusting last year to 288.00 we may have to bring back to that same level of 340.00. are we going to come to understanding or commitment with the Town Council and WPCA. Those are issues that we need to discuss. You mentioned before a proposal of 52.00 increase and then 61.00 following year. not sure waht is happening to that 952,000. thought was going to be used towards 1/20th payment. if that does happen Pelkey - somehow we need to build additional reserves and need clear evaluation of what potential problems could occur with the pipes. It will be good to have evaluation to see if there are any problems with other pipes Anwar - what is the average sewer user fee for surround towns? Aries - 360.00 was average sewer user fee for State wide. Anwar - how much should the reserves be kept at for emergency purposes? McCann - is the reserve to take care of emergencies or replace items? Arie s- variety of things, maintain the fees, Feel rates should be set based on WPCA expertise. Do not think the roll of the Town Council is to set the rates, that is a responsibility of the WPCA. Want to agree with the Town Council on the debt services, want to provide the 1/20th payment. Ask the Council to have resolution to have WPCA move forward on sewer rate and will work towards the 1/20th payment. McCann - when you look at 52.00 shifting from sewer user fees to taxes to pay for that. Pelkey - this is a town facility, the current structure was bought an dpaid for by taxes of the town. McCann - there was no alternative because there were no public sewers then. Pelkey - building facilities are paid for by all tax payers. we all use the sewer system in some way.

Anwar - after first payment - if the Town Council was taking responsibilitiy in taking that part, does the town know what that fee would be? Pelkey - would be smaller than the amount to sewer user. Anwar - this was very useful for me to learn

Frank Ferraro - we have the charge to establish our fee. When could Council address this issue? John - passed resolution last year - will re-read the resolution we can readdress that issue. Clarity from Town Manager regarding future commitments will need to be done for future funding. should have future diiscussion at a Work session or something. could present at next meeting or just email it out. Willl talk to Matt about this issue. would suspect Town Council would like to discuss with the Town Manager.

Bob Dickinson - there are houses in town that only put 1/3 of what others are put into system. Vernon does it on actual usage. Fred - yes that is correct Dickinson - spreading amongst taxpayers maybe better than doing a flat charge.

Joe - user fees are based on usage. there is no justification for charging people the same.

5. Executive Session

6. Adjournment

Motion to 6. Adjournment Moved by John Pelkey, no second required.

Vote to Approve 6. Adjournment (Approved)

9:25 p.m. Nancy Mulroy made the motion

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