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HomeMy WebLinkAboutMinutes - WC - 03/12/2015 '("A c E : v � y CO hasset Water } •� -� D E P A R T M E N T Commissioners Leonora C. Jenkins �. COYIRSSL.'T S�die Col wdy Since 1,950 o�M t.�rto Daniel M.Varney Rolf N. Gjesteby Minutes of the Cohasset Board of Water Commissioners 339 King Street— Water Treatment Plant March 12, 2015 @ 11:00 am Members Present: Leonora Jenkins, Chairman Dan Varney, Vice-Chairman Recording Secretary: Brenda Douglas Guests Present: Mary Gallagher, Karen Quigley, Carl Hillstrom, Leland Jenkins, Kevin McCarthy, John Chapman, Toby Fedder,Paul Roux, Chris Senior, Carl Hillstrom Motion made by Lee seconded by Dan to call the meeting to order at 11:03 am all in favor. Lee introduced Toby to everyone. Toby reviewed what was discussed at last meeting. Toby went over what was revised from last meeting. Update to basic expenditure budget with increase to system maintenance and extraordinary maintenance. Update to multi units with one meter, fire protection, capital recovery charge and rate structure. Lee asked about retained earnings. Toby stated there is nothing built in for retained earnings. The rate currently is set to pay each year with no retained earnings. Toby stated that if we were to do that it would raise rates. Mary reiterated that if the sales are lower than that projected that the water department would be in a deficit. Toby stated that he would build in to the rates to create whatever amount is needed. John Chapman suggested having retained earnings and capital stabilization. He suggested building something into the rates that in increments up to 10 years. Toby then reviewed the multi units with one meter. He used a factor of 60%. Sohn asked if the rate would stay for 5 years. Toby said no that they would have to go to town meeting each year. Karen stated she would like to see an accurate capital recovery charge each year. Toby said the rates can be set for 5 years. And each year modify the capital recovery charge. Toby stated that the numbers do decrease quite a bit over 5 years. John suggested setting rates to put into current and fixture capital. 339 King Street, Cohasset, Massachusetts 02025 Tel: (781) 383-0057 Fax: (781) 383-2906 There was a review of the fire prevention. It will be 211.00 a quarter for each fire hydrant. The rate was based on fire costs of$473,000; this includes town and private hydrants. There was a discussion about how much the town has currently budgeted for next FYI for water costs. Mary stated that it is in the ball park cost with the new rate of$4.36 per h.c.f. Toby was asked what other towns did in regards to paying for water. Toby said that the two options that towns have are either the town pays nothing for their water or they pay the rates that all customers pay. The 5 year plan that Paul came up with was 2 tank rehabs and 2 loops in the distribution system. The rest is the plant operations. John was concerned that if the town is in need of new water mains. There will be a drop in rate costs for next fiscal year but it will increase each year for 5 years total. Then there was a discussion about leaving rates where they are now and increasing the Capital Recovery Charge. The town will pay the rate that all customers pay and hydrant rates would increase. Toby stated that the reserves would be built up. If this is done over the next 3-4 years there would be a cash reserve of$600,000 approximately. $195 will cover all debt service whereas we have to take this year to take monies out of usage revenue to cover the debt. There was a break for everyone to get lunch. Everyone ate and kept talking while eating. The group decided to have Toby put in the $100,000 retained earnings each year. Chris arrived at the meeting and Toby went over his calculation and the breakdown of each. Chris explained that if there is a large increase in the town's rate that they are on a fixed budget and this may cause a problem for the town as well as the schools. Dan makes a motion to keep volumetric rate the same and the number to the capital recovery charge to be determined by Toby this includes a 50% increase for those multi units with 1 meter and multi units. A factor will be calculated and determined by Toby. The quarterly customer cost will be folded into the capital recovery charge. The volumetric charge, which is based on meter size, will cover our operating charges. And the capital recovery charge will cover debt and ongoing projects. Lee asked Toby what the other rates are for different size meters and fire protection. Toby stated that he had not finalized those numbers as of yet. Motion made by Lee to adjourn the meeting at 1:01 pm this was 2nd by Dan, all in favor. Respectfully Submitted, Brenda Douglas, Recording Secretary Approved By: Date: Rolf Gjesteby, Clerk Cohasset Board of Water Commissioners 339 King Street, Cohasset, Massachusetts 02025 Tel: (781) 383-0057 Fax: (781) 383-2906