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HomeMy WebLinkAboutMinutes - WC - 02/03/2015 ica%A- P . Cohnsset Water D E P A R T M E N T Commissioners �� v Leonora C. Jenkins .. = S Elie arAss T 5272M 1 Daniel M. Varney Rolf N. Gjesteby Minutes of the Cohasset Board of Water Commissioners 339 King Street— Water Treatment Plant February 3, 2015 @ 10:00 am Members Present: Leonora Jenkins, Chair Rolf Gjesteby, Clerk Recording Secretary: Brenda Douglas Guests Present: Carl Hillstrom, Paul Roux, John Chapman, Brian Joyce, Mary Gallagher, Chris Senior, Toby Fedder& Jessica Richard Motion made by Lee seconded by Rolf to call the meeting to order at 10:10 am all in favor. Public Comment/Warrants/Abatement - None Annual Report Lee stated that it had been years since the Water Department put anything into the Annual Report. She wanted to update everyone as to what has happened since Woodard & Curran took over and what they have accomplished and the upcoming projected needs, a copy is available at the Water Department. Rolf did not know that Ellms meadow was shut down for the winter. Carl reported that it stayed running until the end of December which is a month later than normal. Paul stated it would be about $15K to insulate the pipes so that we could run year around. Regarding the Annual Report, Paul also stated that instead of putting in pictures and graphs that maybe just a narrative be done so that it would not be too bulky. Lee stated that Jen from the Town Manager's has said that charts as well as pictures would be welcome since they were trying a new format. John asked how the board expected to pay for the projected projects. He stated that it looked more like maintenance items. John suggested that it be worded as this needs to be taken care of Lee indicated that the state recommends that we have retained earnings. Lee suggested changing "Scheduled projects & Investments"to "Maintenance and Continuing Projects". Everyone finally agreed upon"Necessary Capital and Operational Expenditures". They decided to move up the investments since July 1, 2012. Lee will make sure changes are done and get over to Jen by Friday. Motion made by Rolf to 339 King Street, Cohasset, Massachusetts 02025 Tel: (781) 383-0057 Fax: (781) 383-2906 accept the Annual Report as written with changes that Lee will make. This was 2nd by Lee, all in favor. Budget Mary Gallagher reported that debt service will be reducing now, which will give the Water Department a little bit of a break. Lee stated the debt service will begin decreasing in FY16. She would like to take that money and divide it between System Maintenance and Extraordinary Maintenance since those items have been under budgeted for years due to the financial constraints. Mary said that this would be fine. Chris agreed with Lee that the Water Department needs retained earnings. Lee also stated that until we know the dollar amount of the contractor for the new Water Department operations contract, the board will not be able to finalize their budget. Mary said that is a good point and that she would work with the board. Chis stated that he and Mary looked closely at the indirect costs. When the auditor ran them and made their recommendation the models almost doubled. They felt they were unrealistically high. So then they went department by department. Attached are both breakdowns. The auditors suggested $219,793 and Chris and Mary came up with $126,816.00. Chris took into consideration town personnel costs, liability/property insurance, employee benefits, and annual audit and data processing costs. The board needed time to review. RFP—Brian Joyce Brian has had some Q&A that needs to be addressed. Bids are due on 2/19. 2/19-3/19 the documents needs to be reviewed. Brian needs to respond by Thursday, February 5th. 5 years are required back financials. Then Brian stated that one of the companies had requested employee salaries which will not be given but a breakdown of each employee with their years' experience and a copy of the current contract with W&C. Paul said he would et these to Brenda so that the are available in the conference room. These are g Y available here at the plant with required appointment set up with Brenda. Brian wanted to know if there was a DEP staffing plan if so please provide. Brian will get the list of documents needed and Carl and Brenda will get everything in the conference room for review. The contract will be awarded on April 16, 2015. Rate Study Toby wanted to know what the expectations are from the town. Lee stated that both the customer rates as well as the town rates were reduced. Lee stated that the customers are up in arms about the Capital Recovery Charge more than anything else. Lee then brought up the fact of multi units with only one meter and the work that was done during the summer months and did not pass at special town meeting. Hydrant fees are another issue. Toby stated that some of the classification are meter readings, fire suppression, cost of doing business. These would be some of the issues that are looked at. Toby then gave a breakdown of different types of ways to structure. Fixed quarterly charges are one way. Where you have great swings in volumes for irrigation this would be essential in looking at. Fire suppression will be looked at in a separate module. Lee wanted to reiterate that 339 King Street, Cohasset, Massachusetts 02025 Tel: (781) 383-0057 Fax: (781) 383-2906 this Capital Recovery Charge is a hot potato. Chris wanted to see a clear clean concise answer how or what recommended for a level amount of charges. Toby then inquired as to the towns approach to liening properties. Mary explained that all properties are leined in Jan for prior FY outstanding balances. Paul stated that the needs for the plant and distribution system will be part of the model. Toby indicated that the rates will be generated to create retained earnings. Then there was a discussion about milfoil but this would not affect the rate study at this point. Toby will look at their schedules and see when next week they can come back and then 1 week after that. Chris stated that it would be a good idea to have a public meeting. Carl asked if the board would be interested in the ERP meeting that W&C will be having here at the plant this month. No comments were made. Motion made by Rolf to adjourn the meeting at 12:30 pm this was 2nd by Lee, all in favor. Respectfully Submitted, Brenda Douglas, Recording Secretary Approved By: e Date: L L L4 f 1 Rolf Gjesteby, Clerk Cohasset Board of Water Commissioners 339 King Street, Cohasset, Massachusetts 02025 Tel: (781) 383-0057 Fax: (781) 383-2906