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HomeMy WebLinkAboutMinutes - WC - 11/18/2014 Cohasset Water J ~: D E P A R T M E N T Commissioners Leonora C. Jenkins ammmmo S#w 1.00 Daniel M.Varney RolfN. Gjesteby Minutes of the Cohasset Board of Water Commissioners 339 King Street— Water Treatment Plant November 18, 2014 @ 9:00 am Members Present: Leonora Jenkins, Chair Dan Varney, Vice Chair Rolf Gjesteby, Clerk Recording Secretary: Brenda Douglas Guests Present: Carl Hillstrom, Kevin McCarthy, Karen Quigley, Brian Joyce Motion made by Lee seconded by Rolf to call the meeting to order at 9.07 am all in favor. Public Comment—No Comments Abatements/Warrants/Mecting Notes Rolf made a motion to approve meeting notes for September 16, 2014, October 2, 2014 and October 22, 2014 Lee seconded all in favor. Warrants were signed and approved by Lee&Rolf Un-Metered Capital Recovery Charge Lee reported that the unmetered capital recovery charge for customers in multi units without individual meters did not pass at Special Town Meeting last night. Lee discussed the Water Department needs for current maintenance and emergency funding as well as capital funding and the importance of having retained earnings as well as capital stabilization. Lee stated our next recourse would be some sort of rate increase, as she cannot see how we can maintain this facility under the current rates since our 10% reduction to rate payers and 80% reduction to the town facilities two years ago. She noted there are many big ticket items coming up, e g the painting of the Bear Hill tank that will cost of$300-$400K. Lee stated that we will have to look at going to next town meeting and request a rate increase as most other towns do on a yearly basis or have to consider asking for bonding for every capital expense. The town has increased their charges to us every year by 2.5% and all of our other costs are increasing yearly so we have to stay current with what is going on in the economy. Several suggestions have been made, one of which is do a rate study. Lee stated that she does not feel that a rate study is within our tight budget and she felt the board could set a rate increase with 339 King Street, Cohasset, Massachusetts 02025 Tel: (781) 383-0057 Fax: (781) 383-2906 www.cohassetwater.org available information. Kevin stated what he heard last night was that the bill did not pass due to the fact that people thought that it was not thought through enough. Kevin stated that if a study is done that includes this new"Cap Recovery Charge" that people would be more receptive of it. It if was done that way and it goes through Advisory and Selectmen then you would get more of a response. Rolf said one thing he noticed was that the business owners were against it. Kevin stated that if the rate study is done then that should hash out any objections because the professionals made the decisions. Brian asked if there is a meeting scheduled with Chris& Mary to figure out where they could go from here. Lee said that Chris want to get together. Rolf and Lee stated that since this did not get approved that now the town will have to put up the money so that DOR will approve the budget. Lee went over the hundreds of thousands of shortfalls to the Water Department from the town and school paying different amounts from what we billed. Then she explained to Brian about the breakdown of hydrant fees town vs Aquarion. Aquarion has 75 at a rate of$225-$250. We charge $600.00 and have 479 hydrants. Lee said that Chris agreed in 2016 to pay the actual amount which is currently $276,000. Brian reiterated to have the meeting with Chris and Mary. Lee then stated that she would like to an explanation and breakdown of the town hall services. Lee then stated that the town increases our rate for indirect costs automatically 2.5% every year. She asked the board if they felt that we should increase the town's reduced flat rate of$1.27 every year by 2.5%. Dan stated that he felt that the word increase will not fly. Dan stated he felt that a rate study should be done first. He stated that if they had gone to town meeting and stated this would affect only the Avalon's or the triple deckers and not the smaller ones it would have passed. He also stated that it should have said the monies would be used to reduce debt. If this was done then he felt it would have been approved and everyone probably would have cheered. Karen stated that she felt there were certain time periods that the bonds can be paid into. This would be a question for Mary Gallagher. Lee wanted to know what would happen if they were out of compliance with the state such as the sanitary survey. Carl stated there were no deficiencies this year but if there were the state does not give a lot of time to fix, thus intensifying the need to maintain a decent retained earnings account. Roof Dan reported that the roof is completely saturated. Dan stated last year when he started it that there was a quote for$25,000. Carl stated that was for flashing only. Dan had Devlin come by and check out the roof. They stated they could do a fix for $13,000 this would stop the leaks in the hall as well as the kitchen. This would be to strip the roof and seam the wall. Devlin feels it is going under the window sill. Dan stated there are so many layers up there which will have to be removed. Brian stated you need 3 quotes Brian will e-mail me the form necessary to fill out. Lee asked who would do the inspection. Dan stated he Carl & Brian would. Dan stated that he will contact Devlin. He then said they will hold back$3,000 and pay after the first storm to make sure that it does not leak. 339 King Street, Cohasset, Massachusetts 02025 Tel: (781) 383-0057 pax: (781) 383-2906 www.cohassetwater.org RFP Brian asked for a copy of the final RFP. He wanted to know if W&C still had a copy. Brenda will look into and get it to him. Brian stated that he is using the old RFP as a template. Carl will put together a list of what has been done in the last 2 years as well as what is projected out. Brian asked about the timing of the release of the RFP. Lee stated that she tried to have a combined meeting with sewer only for them not to show up. Lee said that they tried to have a combined RFP to see if it would be a cost savings for the rate payers but it does not look like that is going to happen. She stated that Hull is up for bid and United is currently running their sewer facility as well as Cohasset. Lee was told that only 3 companies have bid on it. If United does not get it, then Cohasset might want to rethink using United since Cohasset relies on Hull for backup. Brian is looking at a 3 year with two 3 year options. Sewer is 6 months behind us so if they can do their RFP and have it expire coinciding with us. Lee stated she would prefer a shorter term and having renewals. Brian stated if they were going to combine the 2 it should have happened 6 months ago. Lee stated she did not want to wait 3 years so she would prefer a 1 year and coincide with the sewer. Brian stated we need to do Water, Sewer & Water/Sewer. Kevin wanted to know if it was feasible to extend the contract 6 months. Lee said that it can't be done with our current contract and that it would not work since water is on a fiscal year and sewer is on a calendar year. Brian stated he felt that a 1 year was too small of a timeframe. Brian would like to put the flexibility that the Sewer Department has in their current contract into the Water Department RFP. Karen stated that there may be some procurement issues with that. Karen then stated that the job of the Water Commissioners is to look out for the water enterprise fund only. Lee stated that speaking with other engineers that using the same company for both could be very advantageous to the town. Rolf stated that sewer has the flexibility of bailing out only giving 6 months' notice. Rolf felt that a longer term and letting the sewer follow our lead. Lee made a motion to do a 2 year contract with 4 1 year extensions. Carl stated he read a while ago it was only allowed 2 extensions. Lee would like to amend her motion to a 2 year with two 3 year extensions, Dan seconded the motion. Lee wanted to know if there should be some sort of escape clause in it. Brian will get a copy of the sewer contract. Lee then made a motion to ask for RFP with a 2 year term with two 3 year extensions and have a 60 day escape clause. This was seconded by Dan, all in favor. Lee then stated that sewer wants to have a joint meeting. Lee wanted to know what the board thought. Lee stated that they meet 1st& 3`, Thursday of the month. Brian stated that to get this done in a timely manner he would have to do this thru e-mail. Karen stated that this would be a violation of open meeting law. Brian will check with Chris on this. Rolf suggested if necessary just schedule meetings ahead of time even if they don't meet. Lee stated that if there is a member that can't make it we could conference call someone in. Brenda will post meeting for the following dates: Tuesday, December 2' , Wednesday, December 3`d and Thursday 4 @ 9:00am RFP on agenda. 339 King Street, Cohasset, Massachusetts 02025 Tel: (781) 383-0057 Fax: (781) 383-2906 www.cohassetwater.org Budget for next year The white board in the front office has a list of proposed projects for review. Lee wanted to know if the Water Department income is greater this year than last year can we do a bigger budget. Karen stated that Lee should check with Mary. Some of the capital projects include: Tank painting, a new truck,valve replacement, communication upgrade and insulation of piping at Ellms Meadow so that the wells can run year round. Lee then brought up again that the town increases our town hall services 2.5% every year. The town rate for water was negotiated at a commission meeting and did not go to town meeting along with the rates for the town. She wants to know if the board should be raising rates like the town is. Karen stated that the board should check the bylaw. Rolf and Dan stated that a rate study should be done before they can make the decision. Karen stated that she knows that Mary and Chris need to meet with the board to discuss the town hall service charge. Rolf stated that after the town meeting last night Chris told Rolf that he and the board need to get together. Brian will check with Chris to see about a meeting this Friday 11/21 @ 9:00am to discuss town hall service fee & interdepartmental charges. Website Update This is something that has to be looked at any changes need to be addressed. This will be discussed more another meeting. Brian then stated that he got the ok to send out the RFP for Bound Brook. This will be to fix the culvert. Carl stated the water main needs to be replaced as well it is old cast iron. Lee then asked Brian about the environmental bond bill. Brian said that milfoil stayed on when it went thru bond bill. It will be up to the new governor to decide how much to go to Cohasset. Motion made by Lee to adjourn 2nd by Dan @ 11:04 am all in favor. Respectfully Submitted, Brenda Douglas, Recording Secretary Approved By: t Date: L G I Rolf Gjesteby, Clerk Cohasset Board of Water Commissioners 339 King Street, Cohasset, Massachusetts 02025 Tel: (781) 383-0057 Fax: (781) 383-2906 www.cobassetwater.org