The URL can be used to link to this page

Home My WebLink Aboutmin brd of selectmen 05/10/00 Present: Board of Selectmen Minutes May 10, 2000 Chairman McCarter, Clerk Wills, Selectmen Amoruso, Donovan and Robinson John D'Agostino, Town Manager The meeting was called to order at 7:00 p.m. followed by the Pledge of Allegiance to the Flag. · Warrant No. 44 in the amount of $3,732,216.63 Motion: To sign the warrant. (Amoruso-Robinson) All in favor. Passes. Chairman McCarter abstained on the Municipal Building Committee payroll; Selectman Robinson abstained on the School Department payroll . · Minutes of May 3, 2000 Motion: To approve and sign (Amoruso-Wills) All in favor. Passes · Letter from Town Counsel Robert Mangiaratti regarding the lien against the Homestead Restaurant property in the amount of $24,151. Motion: To establish a lien of $24,151 against the property and sign the lien documents. (Amoruso-Wills) All in favor. Passes · Letter from Daniel W. Backstrom of 341 Balcom Street regarding dispute of Attleboro water bill, which is billed by Mansfield. Memorandum of Vel Bishop, Water Dept. Billing Supervisor attached. · Letter from Patrick Collins requesting permission to close Marshall Avenue from the corner of Smiley Avenue to the corner of Denwood Street from 1:00 p.m. to 5:00 p.m. on Sunday, May 21st for a block party. Motion: To close Marshall Avenue as described, subject to the approval of the Police Chief. (Amoruso-Wills) 5-0 Passes Minutes of May 10, 2000 · Copy of letter from MediaOne to Ken Butler of the Mansfield Music & Arts Society - The Mansfield Music & Arts Society has requested an Institutional Network "drop line" (I-Net) at their Reservoir Street location for local origination programming. Request must be made by the Selectmen as local franchising authority in accordance with the renewal license. Motion: To request the drop line with the understanding that it will remain at that location only as long as The Mansfield Music & Arts Society is a tenant at that location. (Amoruso-Wills) 4-0-1 with Selectmen Robinson abstaining Passes Present from the discussion were: John Moretti, Superintendent of Schools; Lincoln Lynch, Assistant to the Superintendent for Business Affairs; School Committee members Michael Trowbridge, Emil Giordano and Steven Greenberg. Present from the Finance Committee: Margie McShane and Frank DelVecchio. Also present was Bea Kearney, Town Accountant. Superintendent Moretti reported on their discussions of short-term and long-term solutions regarding the budget deficit. He also noted they have been advised by State Representative Betty Poirier of the possibility of receiving $200,000 from a one-time foundation reserve. Long-term, the only solution the School Committee sees is an override of $1.6 million that, based on recent projections, would stabilize the Town for five years. They have considered the value of the short-term solution and the wisdom of the long-term solution and believe both options should be brought before Town Meeting for the voters to decide. Town Manager D'Agostino noted a short-term solution is possible by taking various one-time revenue sources and committing them to expenditures to balance the budget. The short-term solution, however, will result in next year's budget being at a $1.7 million deficit and we're back in the same situation, if not worse, trying to catch up on projects that weren't done as scheduled. He advised that, in his opinion, a "band-aid approach" is not the best way to go. He also noted that if we receive unanticipated revenue, we do not have to tax to the limit of the levy established by an override. Discussion continued, with trash collection fees being reviewed and consideration being given to the impact of migrating to a "pay-as-you- throw" program. Various options were discussed to avoid a Proposition 2 t override. These included taking money from Stabilization, deferring items until a Fall Town Meeting, and eliminating trash collection from the operating budget. Following discussion of all options, Selectmen and the School Committee agreed on the need to compromise in Minutes of May 10, 2000 2 order to approach Town Meeting united In their efforts to solve the budget dilemma. Mr. DelVecchio of the Finance Committee reported they favor a long-term solution and are less concerned about how the question is phrased. He noted while they favor an override, it is not etched in stone and voters should have the option to choose. Motion: To support the Finance Committee's recommendation with one exception- to add options on the ballot to accept trash fees as part of the tax levy on a menu basis. (Amoruso-Donovan) 3-2 with Amoruso, Donovan and Wills in favor; Robinson and McCarter opposed. Passes The School Committee agreed to the motion. Motion: To reconsider the vote (Wills-Donovan) Clerk Wills noted he wants the trash fees to stay in the tax rate. He suggested one question and would like Selectmen to support an override if it's necessary for the trash collection. Upon further discussion of what would be accomplished in passing a balanced budget along with a contingency budget, the motion and second were withdrawn. Jim Noris, former Finance Committee member - questioned why there had been no discussion of transferring money from the overlay reserve. He was advised that the amount would not be certified until after the start of the fiscal year. Mr. Noris also suggested deferring items until the Fall, stating he does not feel the Finance Committee is doing enough to avoid an override question. Selectman Amoruso noted the danger of spending all reserves when we will still need an overrIde at a time the financial picture of the Town, State and Country may be far worse. Town Manager D'Agostino noted we do have preliminary numbers from the State, and they are far short of last years. Town Accountant Kearney pointed out the preliminary cherry sheet is based on the State budget. It can change, but the Town is not comfortable counting on State funding increasing-and it won't increase by the $1.6 m/Ï/ion shortfall. Charlotte Faulkner and Lori Carlson, representing a school parents group - stated they understand the fiscal responsibility of the town and are here to show their support for the override, noting they are not happy about it, but feel it's necessary. Minutes of May 10, 2000 3 They pointed out it is not an "us and them" mentality-they want the services of Police, Fire and Schools. Jim Noris reiterated there are four or five options that aren't being explored, arguing against an override at this time and urging that expenditures be postponed to the Fall. He further suggested that in the interim labor contracts for Town Hall employees could be reviewed and wage freezes established. Dennis Grady, 3 Dustin Court and Finance Committee Member - stated there is consensus that we should spend the $1.6 million. The question is how we fund it. He noted funding it with anticipated free cash and revenue is what created the current situation. He pointed out the Finance Committee did that in the past under Mr. Noris' leadership, but now believes it's better to address the issue and establish long-term stability. To continue to base expenditures on what we anticipate in revenue and free cash is short sighted and will cost more down the road. Frank DelVecchio, Finance Committee Member - spoke about the importance of the Town's bond ratings, noting when we recently sold bonds Moody's rated our Reserve Funds as "adequate", which is not a glowing rating. Town Manager D'Agostino stated the Town is already spending money from Reserves for clean-up work. He noted spending money from Stabilization for emergency items does not hurt our Moodys ratings, while taking money from Stabilization for operating expenses w/Ï/. Dianne Royle, former Selectwoman - said she hopes we do not have additional trash fees on top of our tax bills, noting some parents are already paying bussing fees of up to $375. With the addition of trash fees, families would be spending $500 on top of their tax bills. She stated that in the fifteen years she served as an elected official the Town has dealt with tight budgets, but always managed to make it work and had extra money in the Fall to do projects that were postponed in the Spring. She urged the Town to put pressure on our State legislators to make them aware that Mansfield is a growth community and needs their assistance to deal with these overburdening projects. Mrs. Royle also advised the Selectmen there is a difference of opinion between the House and Senate regarding the Conservation Preservation Act passed at our Town Meeting last year. She asked Selectmen to send a letter to the Governor encouraging him to support a bill to give communities a choice in how this is funded. Richard Frank/in, Cavan Crossing - stated there should be a solid plan regarding preservation of the School funding at Town Meeting Monday night or Town officials risk an amendment from the floor. Town Manager D'Agostino stated there will be a balanced budget presented to Town Meeting as required, and a contingency budget Minutes of May 10, 2000 4 with two items-$900,000 for trash collection and $700,000 for the balance of the Schools appropriation. Further discussion followed regarding the procedure used to present a balanced budget and a contingency budget, together with the legal process in drafting a ballot question for an override decision. A five-minute recess was called, following which Questions and Comments resumed. George Dentino, Gladiola Terrace - questioned the Selectmen's signing of the Great Waves Agreement, with particular reference to Paragraph 10 regarding Selectmen's agreement not to continue their appeal and to support the project. He noted they should not have endorsed the document if they don't agree with it. Selectmen reviewed the process of negotiations, noting they may not like a particular item in a contract but, if it is not a "deal breaker" and the overall contract is in the Towns best interests, an Agreement is arrived at. They noted you do not always get everything you want in a negotiating process. Dan Donovan, 97 Court Street - said he did not like the Agreement then and still doesn't like it. He didn't like the way Mr. Mangiaratti answered some of the questions and he didn't like Great Waves taking precedence in the meeting because Town Counsel Mangiaratti had to leave early. He further stated that if the Town is paying Mr. Mangiaratti and he has to leave early, it's time the town got a new attorney and it's time for Mr. Mangiaratti to go. The Public Hearing scheduled for 8:00 p.m. on the acceptance of Keli Lane as a Public Way began at 9:05 p.m., with Clerk Wills reading the legal notice. Motion: To open the public hearing. (Robinson-Wills) All in favor. Passes · Memorandum from Shaun Burke, Director of Planning and Development, was read. The Planning Board voted to support the acceptance of Keli Lane, provided all items are completed by Town Meeting. If they are not, the Planning Board will withdraw its support. · Letter received from Dennis Baker stating neither he nor Perry DiMascio would be able to be present for the Public Hearing but they intend to have all work completed prior to Town Meeting. Minutes of May 10, 2000 5 Selectman Robinson said there needs to be a timeline by which work is required to be completed prior to Town Meeting. If the work is not finished, it shouldn't be presented for acceptance. Town Manager D'Agostino advised the Selectmen they could vote against acceptance now, and if they complete the work prior to Town Meeting, let the developer prove to Town Meeting they are finished and ask Town Meeting to reconsider acceptance. DPW Director Lee Azinheira reviewed the process of preparing a street for acceptance. He noted that Mike Ahern is currently overseeing subdivision inspections and was out to look at Keli Lane with the Town Engineer and Planning Director. Work is being done and they will look at it again Monday morning and will recommend it be pulled from the Warrant if everything is not done. Selectmen Robinson noted there is a policy that if it's not finished, it shouldn't be on the Warrant and he does not want it on Town Meeting floor. The Public Hearing closed at 9:10 p.m. Motion: To not accept Keli Lane if it is not completely finished. (Wills-Robinson) All in favor. Passes Clerk Wills read the Notice of Public Hearing for a license to store 6,000 gallons of diesel fuel at 135 Forbes Boulevard. Motion: To open the Public Hearing scheduled for 8:15 p.m. at 9:05 p.m. (Donovan-Amoruso) All in favor. Passes Attorney Joseph Jenkins, representing Forbes 171 Limited Partnership, asked if there were any engineering reports generated, noting the proximity of his client's property to the site. Steve Wassessen of Spaulding & Slye, construction manager for the project, was present to represent Nextel, for whom the tanks are being installed for the storage of 6,000 gallons of diesel fuel. He noted there are three diesel generators at the site to provide backup power for the telecommunications facility. Fire Chief Sliney said he has been involved in the process. He reported there are several of these units in place in the Industrial Park and at the Police Station. A license is needed to store over 2,000 gallons. They will have three 2,000 gallon Minutes of May 10, 2000 6 tanks. They meet all statutory and code requirements and will be monitored. They have applied for the required license and when it is issued, the Fire Department will conduct a final inspection and issue a permit for storage. Attorney Jenkins noted his client's concern and the proximity of the storage tanks to a drainage area. They have not had the opportunity to review any independent engineering reports or plans. He expressed his client's opposition to approval until they have had additional opportunity to familiarize themselves with what the applicant seeks to do. Mr. Wassessen referred Selectmen to the plan provided by the applicant. He noted the tanks are encapsulated and enclosed by an 8-foot high fence. Chief Sliney said all distances to drainage and other properties has been reviewed and approved. Selectman Amoruso noted the application has been subject to Staff review and the use is allowed. The applicant appears to have taken all the proper steps and positive recommendations have been received following review by Department Heads. The tanks are self-contained to 11 0 'Yo as indicated on the site plan. The tanks are double-walled and built into the units. Chief Sliney pointed out these generators are no different than any other generator and the applicant is only here because they are required to obtain a license for more than 2,000 gallons. The Public Hearing was closed at 9:25 p.m. Motion: To grant the license for the storage of 6,000 gallons of flammable liquids - diesel fuel. (Wills-Donovan) All in favor. Passes Present were Lee Azinheira, DPW Director; Kurt Gaffney, Water Operations Manager; and Chris Woodcock of Woodcock & Associates who has done water rate work for the Town previously. Mr. Woodcock said he tried to look at the water rates in Mansfield with a rate structure that will encourage more water conservation. He noted Mansfield is putting in more wells to meet peak demands in the summer and he was charged with looking at a rate structure that would recover those initial costs for peak irrigation uses. His recommendations suggest setting up rates for different classes of users based on meter size. Mr. Woodcock reviewed the Water Rate Study Report passed out to the Selectmen. (A copy of the report is attached to these minutes.) Minutes of May 10, 2000 7 Selectmen questioned the significant increase proposed for small water users, noting they expected a higher rate to be established for large user seasonal rate payers. The difficulty in billing seasonal water users was explained, with it being noted in quarterly billing there is an overlap of months and we don't capture an accurate reading for the actual peak months. Also of concern to Selectmen were the increased charges for buildings with sprinkler systems, with the rates being established by the size of the pipes. Chairman McCarter noted a 23 percent increase for small users of water is too much and asked that prior to Monday night another look be taken at some of the expenses reserved in "payment in lieu of taxes" ("pilot") capital outlay. DPW Director Azinheira stated the sewer budget was proposed on a three-year rate, with revenue projections based on year 2. Those figures will be available for Monday night. Town Manager D'Agostino noted that most of the Water Department budget is predicated on the rate, and the rate needs to be set either Monday night or Wednesday. If bills are sent out under the current rate, we will run a deficit in the Enterprise Account and next year the increase will be doubled. Annual Town Meeting Articles Article 3 Funds to defray the expenses of Town departments for the ensuing 12-month period beginning July 1, 2000 - $24,410,719.81 ($912,251) to go into contingency budget) Sponsor: Board of Selectmen Motion : To Support (Amoruso-Will) (3-2) Passes Article 4 Funds from water enterprise revenue to defray expenses ($2,808,028.52) of Water Enterprise for ensuing 12-month period beginning July 1, 2000 Sponsor: Board of Selectmen Motion: To support (Amoruso-Wills) (5-0) Passes Article 5 Funds for School Budget ($24,822,528) with $674,893 going into contingency budget. Motion: To Support (Amoruso-Wills) (3-2) Passes Minutes of May 10, 2000 8 Article 11 Authorize Police Department to establish Revolving Firearms License and Permit Fees Account and to authorize expenditures of up to $10,000 Sponsor: Board of Selectmen Motion: To Support (Robinson-Donovan) (5-0) Passes Article 12 Authorize Department of Public Works to establish Revolving Home Compost Bin account and to authorize expenditures of up to $5,000 for purchase of bins Sponsor: Board of Selectmen Motion: To Support (Robinson-Amoruso) (5-0) Passes Article 13 Vote to accept MGL Section 4 of Chapter 73....to allow an additional real estate tax exemption of 100'Yo..... Sponsor: Board of Assessors Motion: To Support (Amoruso-Robinson) (5-0) Passes Article 14 Funds ($75,000) for Capital Improvement projects for Park and Recreation Dept. Sponsor: Capital Improvements Committee Motion: To Support (Wills-Amoruso) (4-1) Passes Article 15 Funds ($31,000) for Capital Improvement projects for Municipal Building Committee/Public Schools Sponsor: Capital Improvements Committee Motion: To Support (Wills-Donovan) (4-1) Passes Article 17 Funds ($250,000) for Capital Improvement projects for Department of Public Works Sponsor: Capital Improvements Committee Motion: To Support (Amoruso-Wills) (3-2) Passes Minutes of May 10, 2000 9 Article 18 Funds ($195,000) for Capital Improvement projects for Engineering Department Sponsor: Capital Improvements Committee Motion: To Support (Amoruso-Wills) (3-2) Passes Article 19 Funds ($76,000) for Capital Improvement projects for Fire Department Sponsor: Capital Improvements Committee Motion: To Support (Amoruso-Wills) (5-0) Passes Article 29 To establish a Redevelopment Authority in Town of Mansfield Sponsor: Board of Selectmen Motion: To Support (Wills-Donovan) (5-0) Passes Article 30 To appropriate balance of $350,000 for purchase of ladder truck for Fire Dept. Sponsor: Board of Selectmen TABLE UNTIL MONDAY Article 32 Funds ($8,000) for Household Hazardous Waste Collection Sponsor: Board of Health Motion : To Support (Robinson-Wills) (5-0) Passes Article 39 To accept 12' wide utility easement within Fulton Place Sponsor: Board of Selectmen Motion: To Support (Amoruso-Donovan) (5-0) Passes Article 40 Home Rule Charter amendment to move Annual Town Meeting to second Tuesday in April, to end on or before first day of June, and Elections to second Tuesday in May. Sponsor: Board of Selectmen Motion: To Support (Amoruso-Wills) (5-0) Passes Minutes of May 10, 2000 10 Article 41 Home Rule Charter amendment appointing 2 members of School Committee members to CIP Sponsor: Board of Selectmen Motion: To Support (Wills-Amoruso) (5-0) Passes Article 42 Home Rule Charter amendment establishing Planning Board composed of 7 members appointed for 3 year terms Sponsor: Board of Selectmen Motion: To Support (Amoruso-Donovan) (5-0) Passes Article 43 Home Rule Charter amendment to annually report to voters on proposed annual budget and appoint 2 members to serve on CIP Sponsor: Board of Selectmen Motion : To Support (Amoruso-Donovan) (5-0) Passes 11 : 00 p. m. Curfew reached Motion: To continue the meeting for an additional 15 minutes Wills-Amoruso) 5-0 Passes Article 44 Home Rule Charter amendment to require Town Manager to submit proposed budget by first Monday in February Sponsor: Board of Selectmen Motion: To Amend to first Monday in January and to support (Robinson-Amoruso) (5-0) Passes Article 45 Home Rule Charter amendment to require Town Manger to submit CIP budget by first Monday in February Sponsor: Board of Selectmen Motion: To Amend to first Monday in January and to support (Amoruso-Robinson) (5-0) Passes Minutes of May 10, 2000 11 Article 46 Home Rule Charter amendment on composition of Capital Improvements Program Committee (makes 2 School Committee members voting members) Sponsor: Board of Selectmen Motion : To Support (Wills-Robinson) (5-0) Passes Article 47 Home Rule Charter amendment authorizing Selectmen to authorize reserve fund transfers with advisory opinion of Finance Committee Sponsor: Board of Selectmen Motion: To Support (Robinson-Donovan) (5-0) Passes Article 48 Home Rule Charter amendment establishing Animal Welfare Committee Sponsor: Board of Selectmen Motion : To Support (Wills-Robinson) (5-0) Passes Article 49 To enter into ten-year lease agreement with UnCommon Theatre Group for lease of Hartwell School Sponsor: Board of Selectmen Motion : To Support (Robinson-Wills) (4-1) Passes Article 50 To amend General By-Laws to prevent "leaves" being swept into the street Sponsor: Board of Selectmen Motion: To Support (Amoruso-Robinson) (4-1) Passes Article 51 To amend Zoning By-Law Residential Compound Standards regarding Form A lots Sponsor: Planning Board TABLED FOR PLANNING BOARD RECOMMENDATION Article 54 Zoning By-Law amending changing property line setback when industrial uses abut residential zone line in Il, I2 and I3 districts Sponsor: Planning Board Minutes of May 10, 2000 12 TABLED FOR PLANNING BOARD RECOMMENDATION Article 55 Zoning By-Law amendment deleting Rooming House from Schedule of Principal Use Regulations Sponsor: Planning Board TABLED FOR PLANNING BOARD RECOMMENDATION Article 56 Zoning By-Law amendment to Hotel/Motel definition Sponsor: Planning Board TABLED FOR PLANNING BOARD RECOMMENDATION Article 57 Zoning By-Law amendment to Bulk Material Storage and Sales Sponsor: Planning Board TABLED FOR PLANNING BOARD RECOMMENDATION Article 58 Zoning By-Law amendment to Schedule of Principal Use Regulations - Business Uses Sponsor: Planning Board TABLED FOR PLANNING BOARD RECOMMENDATION Article 61 - To construct sidewalk on south side of Pratt St. from Hope St. to East Street fork Sponsor: Richard Palanza, 339 Pratt St. NO VOTE TAKEN BY SELECTMEN Article 62 To accept Millstone Court as a public way Sponsor: Nicholas Riccio, 347 Mill Street Motion: To Support (Amoruso-Robinson) (5-0) Passes Article 63 To accept Mill Farm Drive as a public way Sponsor: Nicholas Riccio, 347 Mill Street Motion : To Support (Amoruso-Robinson) (5-0) Passes Minutes of May 10, 2000 13 Article 64 Zoning By-Law Amendment to Schedule of Density and Dimensional Regulations in the business and industrial districts Sponsor: Karl Clemmey, 750 South Main Street TABLED FOR PLANNING BOARD RECOMMENDATION Article 65 Zoning By-Law Amendment to Schedule of Principal Use Regulations - Residential Facilities for residents 55 years or older Sponsor: Karl Clemmey, 750 South Main Street TABLED FOR PLANNING BOARD RECOMMENDATION Article 66 Zoning By-Law Amendment to Classification of Residential Uses, Rowhouse, Town House in Residential District Sponsor: Karl Clemmey, 750 South Main Street TABLED FOR PLANNING BOARD RECOMMENDATION Article 67 To waive age requirement for Kenneth Wright to be eligible candidate for appointment as full time Mansfield Police Officer Sponsor: Kenneth Wright, 28 Matthew Lane NO VOTE TAKEN BY SELECTMEN Special Town Meeting Warrant Articles Article 4 Funds ($19,935.01) from debt to pay "Special Municipal Rate" associated with overtime pay for Police Details Motion: To support (Amoruso-Robinson) (5-0) Passes Article 10 Add to Section 21, Fire Department regulations, requirement for lock boxes to insure speedy entry in emergency situations Sponsor: Board of Selectmen Motion: To support (Amoruso-Robinson) (5-0) Passes Minutes of May 10, 2000 14 Article 12 Funds for removal of existing fuel depot, clean up of contaminated soils and installation of two 10,000 gallon above-ground storage tanks at Highway Garage Sponsor: Board of Selectmen Motion: To support (Amoruso-Robinson) (5-0) Passes Article 16 Amend Zoning By-Law Schedule of Principal Use Regulations Retail Uses Sponsor: Sandra Levine, 20 Walnut St. HOLD FOR PLANNING BOARD RECOMMENDATION Article 18 Accept Keli Lane as a Public Way Sponsor: Perry DiMascio, 20 Douglas Drive Motion: Not to support because punch list items are not complete (Wills-Robinson) (5-0) Passes Motion: To adjourn at 11:17 p.m. (Donovan-Robinson) 5-0 Passes c~ µ;¡t Minutes of May 10, 2000 15 REPORT TO TOWN OF MANSFIELD WATER RATE STUDY MAY 2000 WOODCOCK & ASSOCIATES, INC. 231 BOSTON POST ROAD WAYLAND, MA 01778 W WOODCOCK &. ASSOCIATES, INC, Utility Rates and Finance May 9,2000 Mr. Lee Azinheira Director - Public Works Mansfield Town Hall 50 West Street Mansfield MA 02048 RE: Water Rate Study Dear Mr. Azinheira: Mansfield has had to impose odd-even water bans every summer due to water supply shortages. Two years ago the Town of Mansfield revised its water rate structure to encourage greater water conservation among its users. An increasing block water rate was adopted to try to discourage wasteful uses. The current rates include a charge of $20.24/1000 cubic feet(1) for the first 3000 cubic feet, increasing some 7% for each additional 1,500 cubic feet to $25.50/1000 cubic feet for use in excess of 6,000 cubic feet per billing period. Despite this rather significant change in the water rate structure, sum- mer time water use has continued to be more than twice the winter period use. For the most part, the added summer demands can be attributed to lawn irrigation. EXPENSES We have analyzed Mansfield's water department expenses and the proposed budget for the coming fiscal year. In fiscal year 1999 the total expenses were approximately $1.7 million. This current year (FY 2000) the budget is just over $2.3 million. For the coming fiscal year the water department expenses are projected to reach $3.1 million. 1. These rates reflect the 10% discount if customers pay on time. Some 85% of the Town's customers receive this discount. po. Box 118, 231 Boston Post Road Wayland, MA 01778 http://www.w-a.com Tel: 508-358-2218 Fax: 508-358-2206 Woodcock@w-a.com WOODCOCK & ASSOCIA TES INC. May 9, 2000 Page 2 Table 1, below summarizes the historic and projected expenses. I TABLE 1. HISTORIC AND PROJECTED EXPENSES I - - ---,---- FY öö] I I FY 99 FY 01 FY 02 FY 03 I -~---~ = Personnel $483,360 $497,816 $534,209 $547, Em $561,3XJ Expenses $463,750 $530,294- $538,634- $549,700 $560, ~ ReservetPlLOT $0 $25, (XX) $175,(XX) $178, (XX) $181,100 Capital Outlay $19,189 $181,800 $409,500 $50:1-, (XX) $284, (XX) Debt Service $533,710 $732,786 $1,111,682 $1,013,209 $ÐJ,957 Internal Services $280.146 $365.372 $399.327 $407 .300 $415.500 S ubtota~ $1,780,1551 $2,333, Œ58 $3,168,352 $3, 199,8CB $2,993,757 Less: Other Income. ($87,340 ($432,192 ($331,804- ($331,804- ($331,804- Xfer Gen' Fund $-0 ($ 136A24 ($130394 ($130 394 ($130 394 Net Required $1,692,815 $1,764,452 $2, 7Œ5, 154 $2,737,611 $2,531,559 As shown on this table, personnel and other operating expenses are projected to remain relatively stable. The Town has budgeted a $25,000 per year reserve which we recommend be continued. Starting next fiscal year we recommend that the water department begin to make a payment in lieu of taxes to the Town. We recommend that this payment be set at $150,000 per year(2). Capital outlays are projected to average approximately $250,000 per year for the next three years. In FY 2001 capital projects include several vehicles, large meter replacement and improvements at the Foolish Hill Reservoir. In FY 2002, capital projects include a vehicle, % inch meter re- placements, and water main replacement; some $2 million of iron and manganese treatment is projected to be bonded. FY 2003 capital expendi- tures include a backhoe/loader, a pickup truck, and some paving; $660,000 for main replacement is projected to be bonded. We have also included $150,000 per year in capital outlays for the Morrison Well project. The debt service category includes payments on a number of existing bonds plus the first payments on a new $2 million bond in FY 2002. We have also included $70,000 per year for the paydown on the judgment for the Ash property. We have developed rates for each of the three fiscal years as well as an average for the three year period. Because we are recommending a 2. There is no assessment for the value of water department assets; however, based on the costs of several recent wells and the Foolish Hill Reservoir, we believe that the taxes would exceed $150,000 per year. WOODCOCK & ASSOCIA TES INC. May 9, 2000 Page 3 fairly significant change in rates, it is suggested that the Board set rates for the coming fiscal year (FY 2001) only. While we also developed rates for the other years, they should be viewed as illustrative only. CONSERVATION RATE ALTERNATIVES While an inclining block rate structure (similar to that now employed by Mansfield) is often thought of as a "conservation rate", it can have the op- posite impact if not designed and applied properly. This is particularly true if a single rate structure is applied to all classes of user. For example, if the blocks result in lower charges to smaller volume customers and higher charges to the largest users it only serves to shift the burden to those larger users. There is little or no incentive to conserve for smaller users that may have large irrigation or other nonessential demands -- their uses do not include significant volumes at the higher rates. Conversely, large volume users may have minimal peak summer demands, yet by virtue of the magnitude of their use they purchase significant quantities of water at the higher block rates. The problems with increasing block rates can be further compounded if the rate steps are applied independent of billing frequency. In Mansfield, the first 3000 cubic feet are charged the first block rate whether they are billed monthly or quarterly. The blocks for monthly users should be set at 1/3 the amounts for quarterly customers; the first block for monthly custom- ers should be set at 1000 cubic feet. Customers with second irrigation me- ters have bills determined going back to the lower cost first blocks rather than adding the use to the primary meter. To send proper price signals to all customers, the rates should be set to vary by customer size, classification, or use. We have examined several rate alternatives for Mansfield that would charge excess uses at higher rates. The alternatives explored are discussed below. . Seasonal rates are used in many parts of the country to charge excess summer uses at higher rates. There are a number of seasonal rate alternatives including: . Rates that are higher for all customers during peak demand periods in the summer and lower during lower demand periods. WOODCOCK & ASSOCIA TES INC. May 9, 2000 Page 4 While the high summer demands in Mansfield need to be better controlled, this type of rate would charge all customers higher amounts in the summer. There is no specific targeting of high uses. . Rates based on winter period water use. This requires consideration of each customer individually. During low demand periods when water is plentiful, rates are set lower. During peak demand periods in the summer, customers are charged higher rates for use in excess of their individual winter period use. This type of rate can include multiple steps with higher rates for a set percentage in excess of winter use with even higher rates at progressively higher percentages of winter use. This type of rate structure requires a billing system that can perform the individual calculations for each account and requires good and frequent meter readings to establish winter (off-peak) and summer (peak) uses. This type of rate structure should also be based on monthly billings for all customers in order to send frequent(3) pricing messages. · We also examined variants of increasing block rate structures that are more targeted to groups or classes of customers. These alternatives included: · Alternative rate blocks that would target excess uses. · Ratchet steps whereby all use is charged at higher rates as the customer proceeds through the rate steps. · Increasing blocks that vary by classification. In considering the best alternative for Mansfield we considered the de- sire to reduce excess demands during the peak summer season, the ability to implement an alternative with the current billing system, and the possible impacts on customers. 3. It is far better to send bills monthly to remind them the high cost of summer water. If custom- ers simply get a high bill in the fall for uses the past summer, it is too late for the customer to take steps to reduce use and will often only result in customer complaints. WOODCOCK & ASSOCIA TES INC. May 9, 2000 Page 5 RECOMMENDED RATES Metered Rates For Mansfield we recommend a variant on the current increasing block rates. Different rate steps should be set for different customer classifica- tions -- the steps for larger volume customers should be larger than those for smaller volume customers. Customer classifications are typically based on customer type: residen- tial, commercial, industrial, etc. Quite often, billing records do not include accurate classifications. In addition, uses within classes are quite variable. As a result, we recommend that the rate classes be based on water meter size. Customers that have high demands have larger meters, and smaller volume users have smaller meters. The Town is completing a meter change out program to ensure that all customers have the proper meter size for their uses. The classes we recommend are: · Small -- customers with 1 inch meters and less. · Medium -- customers with 1 %, 2 and 3 inch meters. · Large customers with 4 inch a larger meters. For each classification we have determined rate steps based on uses by customers in that class. The first step will cover approximately 50% of the average use by the class. The second step is set at the approximate average use by the class. The next step is set at approximately 150% of the average use of the class. The last step is intended to cover uses that are far in excess of the class average. The recommended steps (in cubic feet) are: Class 1 st Step 2nd Step 3rd Step Last Step Small « 1 ") Quarterly 0-2,400 2,401-3,900 3,901-6,000 over 6,000 Monthly 0-800 801-1,300 1,301-2,000 over 2,000 Medium (1 Y2 - 3") Quarterly 0-12,900 12,901-20,100 20,101-39,900 over 39,900 Monthly 0-4,300 4,301-6,700 6,701-13,300 over 13,300 Larqe (> 4") Quarterly 0-50,100 50,101-99,900 99,901-150,000 over 150,000 Monthly 0-16,700 16,701-33,300 33,301-50,000 over 50,000 WOODCOCK & ASSOCIA TES INC. May 9, 2000 Page 6 While the rate steps differ for each customer class, we recommend that the rate per 1000 cubic feet be set the same for each of the steps. A number of customers in Mansfield have installed second water me- ters for their irrigation systems. Use of these meters helps reduce the sewer user charges as this water is not returned to the sewer system. Wa- ter use for irrigation is the peak use water that Mansfield is trying to control; it is also the most expensive water for the Town to provide. Ac- cordingly, we recommend that all water used through second, irrigation meters be charged at the highest rate step. The recommended water rates arJ" Cu rrent fABLE 2. RECOMMENDED WATER RATES ($/1000 cu ft) '··1 1 ~ -~ -1 2ill~- ~ $22.49 I $24.29 1- 4501, f:IXfJ $26. 2~ ~--~- .-- O\€ f:IXfJ ___ $28.35 I -----_._~ ~-- - - --~-- Small (3/4 - 1") FY 01 FY 02 FY 03 3 Yr. AVr¿, o 2,400 -- $26.60 $27.18 $25.39 $26.39 I 2,4Ôl:---------3~~ $28.74 $29.38 $27.44 $28.52 I ~- 3, ~X)1 6, (XX) $32.56 $33.28 $31. 08 $32.31 O\€I 6, (XX) $40.22 $41.11 $38.40 $39.92 Medium (1 1/2· 3'!L , I --- 0 12,~ $26.60 $27.18 $25.39 $26.39 -- 12,9J1 20,100 $28.74 $29.38 $27.44 $28.52 20,101 39,~ $32.56 $33.28 $31. 08 $32.31 O\€ 39,~ $40.22 $41.11 $38.40 $39.92 Large (4" and up) ~~~I 0 $26.60 $27.18 $25.39 $26.39 50,101 $28.74 $29.38 $27.44 $28.52 99,~ 99,9J1 150, (XX) I $32.56 $33.28 $31. 08 $32.31 O\€ 150,(XX) $40.22 $41.11 $38.40 $39.92 The rates above do NOT include the 0% discount for customers that pay in a timely fashion. Fire Service Charges In addition to providing potable water, water systems also provide fire protection services to the community. The most visible service is through public fire hydrants that serve everyone in the community. A number of customers also have a special fire protection service -- direct connections WOODCOCK & ASSOCIA TES INC. May 9, 2000 Page 7 to sprinkler systems or private fire hydrants on their property. These are services that are not provided to the public at large and these customers receive a special service that benefits the specific property. Mansfield now charges for this special service based on the size of the connection -- $50 per inch of connection per year. A 6 inch connection would thus pay $300 per year for the private fire service. Basing these charges on the size of the connection is a common method to assess for this special service. However, the measure of serv- ice is not in direct proportion to the size; rather the volume of water that can be delivered under similar pressure conditions is a function of the di- ameter of the connection to the 2.63 power. To equitably assess the pri- vate fire service charges we recommend they be based on this factor and revised based on the following table. The fire services charges should be assessed quarterly like most other charges. L- Size (in) __ emand Facto Char e/ i 2 and less : 6.19 I $20.88 E---------------__-r- ------------r----------- 4 ,38.32 $108.36 ___=_E)_=-~-=-~J__.JJ1.31 _ $307.16 I--------ª-------.J.-- 237.21__ $650.04 L-- 10 426.58 $1,165.76 12 639.04 $1,880.56 H drants - Pnv 111.31 $307.16 Curren $100.00 $200.00 $3YJ.00 $400.00 $500.00 $600.00 $50.00 Service Charge The final recommendation we have on Mansfield's water rates and charges concerns a service charge. Customers that use minimal amounts of water only pay for that which is used. Mansfield must read the cus- tomer's meter, prepare the bill, post the bill and record collections. In addi- tion, the Town has embarked on a meter changeout program. This in- volves the testing and installation of customer's water meters. These ac- tivities all cost money. We recommend that Mansfield adopt a service charge to recover some of these costs. A minimal charge is suggested initially. Unlike a minimum charge, the service charge would provide no "free" usage -- it would simply charge for metering, billing & collection activities. Because some of these WOODCOCK & ASSOCIA TES INC. May 9, 2000 Page 9 services vary by meter size, we suggest that the service charges also vary by meter size. The recommended service charges are presented in the following table. TABLE 4. RECOMMENDED OUARTERL Y SERVICE CHARGES Size (in) FY 01 FY 02 FY 03 3 Yr. AVD. 518&3/4 $2.01 $2.03 $1.88 $1.97 1 $2.81 $2.85 $2.63 $2.76 11/2 $4.32 $4.37 $4.04 $4.25 2 $5.63 $5.69 $5.27 $5.53 --- $7.34 $7.42 $6.87 3 $7.21 4 $10.66 $10.78 $9.97 $10.47 6 $18.00 $18.21 $16.84- $17.68 8 $30.77 $31.13 $28.79 $30.23 For customers that have meters read monthly, we suggest a charge that is determined by adding $2 to the quarterly charge then dividing by three months. For example, the FY 01 monthly service charge to a cus- tomer with a 2" meter would be $2.54 ( ($5.63+$2.00)/3) The added $2 will help defray the added costs of additional meter readings and billing associ- ated with 12 bills per year vs. 4 bills per year. CONCLUSION Table 5, on the following page, presents the estimated impacts on the annual water bills of various customers. The annual bills do not include consideration of the 10% discount that customers receive if they pay on time. The recommended new rates will impact the largest customers in each classification. Smaller customers in each class will see the lowest in- crease. Residential customers that use large quantities of water for irriga- tion will see the largest increase. In evaluating this increase, it must be re- membered that these uses are the most expensive water -- Mansfield has made considerable investments in new well supplies in order to provide water to meet these peak summer demands. We believe that this new rate structure, when implemented with a public information program on water WOODCOCK & ASSOCIA TES INC. May 9, 2000 Page 9 conservation will help curtail the high summer water uses by Mansfield's larger summer water users. ~TABLE-5. ESTIMATElffMPACTS OF RECOMMENDED RATES -------r=--~---J ] : Curren FY 01 Use cu ft/ ur I Annual Bill Annual Bill Increase 3/4" Meter 2,00J1 $179.92 $220.82 $40.~ 3,000 $269.88 $332.36 $62.48 4,00J $367.04 $448.86f $81.82 8,00J$793.26 --nG31.10 $231.84 2 0 10,00J $1,026.06 $1,352.88 $326.82 32% 18,00J1~_~L~:33'~~[ _12!-640·91 =__ $¿qs.75 _____-ªZ% 2" Meter 1 ------1- _ 15,00J $1,593.06 $1,636.39 $43.33 3 0 39,00J $4,314.66 $4,684.12 $369.46 0 _~__flJ, ~ ____~i3,_§~:~-=$8, ()ª~23 t____jl2=39.17 ~m___ 29% 4" Meter i I I 1 . - lOO,CXXJI$iT232:-üEr $Ü;¡1l~1t- ($120.58 ·1 0 250,CXX)~,242.Œ $33~12.æ $5,470.03 1 0 L-_ 5OO,00J1~6-:-592.oS $73,934.¿7L $17,342.i1 31%, It has been our pleasure assisting the Town of Mansfield on this project. Please feel free to call us if you have any questions. Very truly yours; OOCOC & ASSOCIATES, INC. hristopher P.N. Woodcock President