Canton, Massachusetts · Saved source text
Water Sewer 20210708 Minutes
Saved text from 8 of 8 source pages. Transcription and OCR may contain errors; verify figures and wording against the original.
Source page 1
Town of Canton Minutes Voted on: 6/1/22 Water & Sewer Rate and Policy Committee Vote: 6-0-0 801 Washington Street Canton, MA 02021 Meeting Minutes July 8, 2021 Committee Members Present: Patricia Cawley, Dan Cole, Randy Scollins, Walter Spiegel, Chris Sykes and Mike Trolls. Committee Members Absent: Gerald Carmichael and Dave Emhardt Guests Present: Ellen Jones, Recording Secretary Opening: Chair Scollins called the Zoom virtual meeting to order at approximately 10:00 a.m. The purpose of the meeting was to discuss the Harbar request for a sewer bill adjustment and to approve minutes. New Business Discuss Harbor request for a Sewer Bill Adjustment Chair Scollins shared on the screen a copy of a Memorandum dated June 28, 2021 from himself to the Select Board regarding Harbor's request for a sewer bill adjustment. He reviewed the highlights of the Committee's meeting on June 3, 2021 at which time the Committee voted to send a recommendation to the Select Board to deny Harbar's request for a sewer bill adjustment. The reason for this recommendation was the Committee's concern that it could create an equity concern for all other sewer customers. Chair Scollins was asked by the Town Administrator to figure out the impact to all of the other sewer customer's bills if the request to reduce Harbars bill were granted. Chair Scollins reviewed for the Committee a spreadsheet of 43 customers (including Harbar) (out of 426 customers that were identified in the billing software) that included 12 months of water consumption data for calendar 2020 and with FY22 sewer rates applied and what the potential cost shift and percentage increase to all other rate payers could be if the cost shift were to occur. Out of the 426 commercial users Chair Scollins consulted with Ms. Cawley on the short list of customers (43 customers) that might potentially ask for a similar sewer bill reduction based on their business operations. Of the 43 customers Harbar ranks fifth among the highest users of water whose water consumption in their businesses does not necessarily go into the sewer system. To understand the impact if Harbar's variable sewer charges were reduced by 75% Canton would still be required to pay all MWRA charges and would, therefore, have to shift the cost to all other rate payers to make up this revenue. If Harbor were granted their requested sewer adjustment the other rate payers could make a similar request for reductions to their bills. Of the 43 customers with total sewer flow charges of $1,015,451 the resulting cost shift based on a 75% reduction could result in $761,588 or a 12.4% increase to all other rate payers bills. Chair Scollins also presented information regarding the impact if there was a 50% (8.3% increase), 25% (4.1 % increase) and 10% (1.7%increase) cost shift. Chair Scollins did not think that any of these increases would be insignificant to the rate payers. Chair Scollins slated that the spreadsheet presented had been prepared after the Committee's June 31d meeting and he was hoping to obtain the Committee's reaction. Mr. Cole confirmed with Mr. Scollins that water costs were used as a way to distribute sewer costs but that sewer and water consumption was not really the "driver" of the sewer costs and that infrastructure, piping etc. were factors to be considered for sewer costs. Mr. Cole spoke against giving Harbar an adjustment. Mr. Scollins stated that sewer costs are not a precise calculation of sewer flow costs but is an equitable means of allocating the cost that the Town incurs to have its sewer flow process. He further stated that even if the Town were to calculate sewer bills at 80% of the cost of water the Town is still obligated to pay the full MWRA charges. Mr. Sykes agreed with the list and stated with regard to Harbar's situation that they are automated so the Town can determine through meter readings how much water during the manufacturing process actually does go down the sewer. In response to Chair Scollins' inquiry if the MWRA goes through a process of charging Biological Oxygen Demand (BOD), Mr. Trotta responded that the MWRA does charge BOD based on how much wastewater flow there is, the population of the Town and how much industrial demand there is for BOD. BOD is essentially how much chemicals and energy is needed for treating waste. This is based on the businesses in Canton that have to obtain a permit from the MWRA. MWRA determines what the business is discharging and determines what strength may be needed to treat the waste. In response to Mr. Scollins' inquiry if Water & Sewer 20210708 Minutes WRS edits.docx Page 1 of 4 8/31/21
Source page 2
BOD charges can be reallocated away from other customers Mr. Trotta was uncertain if this could be done. He stated that the MWRA has various meters in place on the system for measuring wastewater flow such as in locations in Stoughton and Dedham. Mr. Trotta reiterated that if Harbar were granted an adjustment it would still not change the amount the MWRA charges which would have to be collected through the revenue process. Mr. Scollins inquired if the BOD could be broken out from the MWRA bill and reapplied by the Town to only commercial customers. Mr. Trotta was uncertain if that would be possible. He also slated that there is also a certain amount of BOD demand with regard to residential customers, specifically waste from toilets. Mr. Scollins concluded that if there was BOD information available and there was a differentiating factor between commercial and residential it would have to be resolved by creating a whole new billing structure for billing purposes. Mr. Cole inquired as to what the differentiation is in the sewer costs with regard to maintaining infrastructure costs. Mr. Trotta explained that the debt services costs is within the MWRA budget and that their capital budget is available on the MWRA's websile. The MWRA does work under a mandate from the MWRA Advisory Board to not exceed a 4% increase of capital per year. Mr. Scollins concluded that any change in the way the Town bills for sewer charges would require a study of the breakdown of MWRA costs and how those costs relate to residential and commercial customers. Mr. Spiegel respectfully stated that the Committee is not required to "get into the weeds" with the Harbar situation nor does he think it is advisable for the Committee to get into the various ways it could be done and how MWRA sets its charges. He is concerned that Harbar may want to study this further. He suggested to keep things simple and that the Committee is required to proceed in a fair and equitable basis with some logic behind it. Chair Scollins addressed the hypothetical question and impact regarding the decision that allowed the installation of irrigation meters. Mr. Trotta stated that this is very similar to commercial businesses desiring to install meters to measure the sewer outflow but that the revenue would still have to be made up somewhere. The Town's consultant Raftelis did not recommend the installation of sewer meters. Mr. Trotta was uncertain if there would be an extra cost for the installation of sewer meters. Mr. Sykes stated that any meter installed under 1 inch the Town would pay the cost and those meters installed greater than 1 inch would be paid for by the customer. The customer would also have to assume the cost of the plumbing for installation of the meter. Mr. Trotta summarized that the Committee already sent their recommendation to the Select Board to not support the Harbar abatement but that the Select Board, as the Water and Sewer Commissioners, could address the Harbar abatement and any other abatement that came before them on a case by case basis. The result of that would be a cost shift to all other rate payers Mr. Scollins slated a new precedent would be created which would be an inequitable and unfair billing approach that the Town would be taking with regard to sewer billing subjecting the Town to criticism by the public and that the Town would not be taking a fair approach with regard to billing all sewer customers in the Town. Ms. Cawley spoke in support of not suggesting the installation of sewer meters. It could result in additional costs to the Town with again the bottom line of having to still come up with the revenue. In conclusion Chair Scollins stated that "here is the methodology with how bills are calculated" , this is how sewer is being billed. What is being requested in Harbar's instance is "opening the door' if this is the best way that the Town wants to continue to bill for sewer and is there a better way. The Committee is in agreement that there are other ways for billing but in the end the Town ends up in the same place (of having to come up with the revenue). The Select Board is scheduled to address Harbar s abatement at their meeting on July 20. Mr. Scollins encouraged the Committee members to participate in this meeting. Meeting Minutes A motion made by Mr. Spiegel to approve the Water & Sewer Rate and Policy Committee meeting minutes for June 3, 2021 was seconded by Mr. Trotta. Roll Call Vote: Mr. Spiegel Aye Ms. Cawley Aye Mr. Trotta Aye Mr. Scollins Aye Mr. Cole Aye Mr. Sykes Aye The motion passed 6-0-0. Water & Sewer 20210708 Minutes WRS edits.docx Page 2 of 4 8/31/21
Source page 3
Adlournment A motion made by Mr. Trotta to adjourn the meeting at approximately 11:06 a.m. was seconded by Ms. Cawley. Roll Call Vote: Ms. Cawley Aye Mr. Sykes Aye Mr. Cole Aye Mr. Trotta Aye Mr. Spiegel Aye Mr. Scollins Aye The motion passed 6-0-0. Minutes reviewed by: Randy Scollins Respectfully submitted, Randy Scollins, Chair Water & Sewer Rate and Policy Committee Water & Sewer 20210708 Minutes WRS edits.docx Page 3 of 4 8/31/21
Source page 4
Town of Canton Water & Sewer Rate and Policy Committee Meeting Documents July 8, 2021 Please note: Some meeting documents may be found on the Town's website under the Posted Minutes section (Laser Fiche). Agenda for July 8, 2021. Memorandum from Randy Scollins to the Canton Select Board dated June 28, 2021 regarding Harbar Request for Sewer Bill Adjustment including a spreadsheet entitled "Water Usage — Cost Shift and Percentage Increase to All Other Rate Payers" (3 pages). Water & Sewer 20210708 Minutes WRS edils.docx Page 4 of 4 8/31/21
Source page 5
K01 , Town of Canton Water & Sewer Rate Study Committee Gerald Carmichael Patricia Cawley Dan Cole C. David Emhardl Handy Scollins, Chair Walter Spiegel Chris Sykes Mike Trotta Water & Sewer Rate & Policy Committee Meeting tang Date: Thursday, July 8, 2021 Meeting Time: 10:00-10:30 AM Meeting Location: Virtual Meeting Water & Sewer Rate & Policy Committee Agenda — Virtual Meeting (see details below} This meeting is being recorded by the Town of Canton. Items may be taken out of order. Join Zoom Meeting https://us02web.zoom. us/j/83640543816 Meeting ID: 836 4054 3816 One tap mobile +13017158592„83640543816# US (Washington DC) 13126266799„83640543816# +US (Chicago) Dial by your location +1 301 715 8592 US (Washington DC) +1 312 626 6799 US (Chicago) +1 929 205 6099 US (New York) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 669 900 6833 US (San Jose) Meeting ID: 836 4054 3816 Find your local number: https:Hus02web.zoom.us/u/ku8RLuug9 New Business 1. Discuss Harbar Request for Sewer Bill Adjustment. 2. Vote to accept minutes of June 3, 2021 (draft posted on Town's website). Next Meeting Date: To be determined. if a topic becomes known prior to 48 hours before the scheduled meeting, the Committee will update [Iris posting. The Committee may also discuss a topic or topics not reasonably anticipated by the Chair 48 hours before the meeting. WS Rate Study Comm Agenda 20210708.doex
Source page 6
WILLIAM R. SCOLLINS III FINANCE DIRECTOR rscollins@town.canton.ma.us (781) 575-6612 KATHLEEN D.BUTTERS TOWN ACCOUNTANT kbutters@town,canton.ma,us (781)575-6605 DEPARTMENT OF FINANCE TOWN OF CANTON, MASSACHUSETTS MEMORIAL HALL 801 WASHINGTON STREET CANTON, MA 02021 PHONE: 781-575-6610 FAX: 781-575-6608 town.canton.ma.us MEMORANDUM To: Canton Select Board From: Randy Scollins, Finance Director cc: Charles Aspinwall, Town Administrator Water and Sewer Rate & Policy Committee Date: June 28, 2021 RE: Harbar Request for Sewer Bill Adjustment SUSAN E. DESJARDINS ASST.TREASURER/COLLECTOR sdesiardins(atown.canton.ma.us (781)821-5006 LOUIS M. JUTRAS INFORMATION SYSTEMS MANAGER Ilutras@town.canton.ma.us (781) 821-5069 ALLYSON M. PODGURSKI ASSISTANT TOWN ACCOUNTANT apodaurski@town.canton.ma.us (781) 821-5011 At the Select Board's direction the Water and Sewer Rate & Policy Committee (WSRPC) took up the request by Harbar, at our June 3rd meeting, to consider a way to adjust their Sewer bill. After considering all of the email communication, Harbar's presentation document, and a full discussion, the Committee voted unanimously 7-0-0 (Dave Emhardt was on vacation) to recommend that the Select Board not grant any reduction to Harbar on their sewer bills. The reasons are listed as follows and are contained on the 2nd page of the draft WSPRC minutes: Chair Scollins provided the following overview of Harbar's request for a sewer bill adjustment: • Harbar is requesting a -$10, 000 adjustment per quarter to their sewer bill now and going forward; • Various emails on the topic from Gene Manning, Charlie Aspinwall and Mike Trotta were circulated in advance to all members of the Water & Sewer Committee; • Industry information was gathered on the topic by Mr. Aspinwall from Jennifer Peterson, Director of Mass Water Works, from various towns such as Groton, Franklin, Medway, Harwich and Holden, and also distributed in advance to the committee; • Harbar claims that 76% of their water usage does not make it to the sewer and is used in the process of food manufacturing; • Regardless of any action taken by the Select Board the Town's cost for processing sewer billed by the Massachusetts Water Resources Authority (MWRA) does not change; • Any reduction in sewer billing for one customer would be an additional cost burden to every other sewer user in the Town; • Most likely there are other businesses that could make a similar case for adjustments to their sewer bill; • If the Town "does for one" then in fairness it will have to "do for all". This could result in a significant cost shift; • However, wastewater that is left to be processed can be more difficult to breakdown because of material factors - the water is denser and is not diluted. Mr. Spiegel commented that this would "open the floodgates" to other users for a similar reduction request.
Source page 7
Mr. Cole stated that if the Town were to allow this the Town would need a robust and standardized policy. Mr. Trotta spoke against granting a sewer bill reduction to Harbar based on the possibility of causing an unequitable situation. Ms. Cawley also spoke against the reduction due to its inequity. She gave examples of many businesses in Canton (hockey rinks, Trillium Brewery, Organogenesis and Frito Lay) that have high consumption of water that could be affected by a change in the billing. Ms. Cawley also stated that the billing system could be set up manually to accommodate separate sewer meter billing, or sewer/irrigation meters could be installed at the expense of the customer. Chair Scollins asked if it was possible to measure consumption differently at this business compared with different manual billing by Ms. Cawley. Ms. Cawley stated that it would not address the equity issue and the costs do not go down. A motion made by Mr. Spiegel that the Water & Sewer Rate and Policy Committee send a recommendation to the Select Board to deny the request from Harbar for an adjustment to their sewer bill was seconded by Mr. Cole. Roll Call Vote: The motion passed 7-0-0. The attached schedule summarizes water usage for the 12 months of calendar 2020 for 43 commercial and industrial Canton sewer users, out of 426 total, that, including Harbar, also could possibly make a similar claim as Harbar that a large portion of their water usage is not processed out as sewer flow. FY 2022 sewer rates, that go into effect on 7/1/2021, were applied to the calendar year 2020 listed water usages to compute the estimated FY '22 "variable sewer flow" charges, i.e., not including flat or fixed fees. The summary shows that these 43 companies comprise an estimated 16.6% of total Town variable sewer flow charges, and 53.6% of total commercial and industrial variable sewer flow charges, or $1.015MM out of $6.127MM. Reducing 75% of the $1.015MM in sewer flow charges to these 43 customers would shift -$761.6K in sewer charges to all other (residential, commercial and industrial) sewer customers. This would equate to a 12.4% increase in all other Canton sewer bills. Shifting 50% would increase all other Canton sewer bills by 8.3%. Shifting 25% would increase all other Canton Sewer bills by 4.1 %. Shifting 75% of Herber's estimated sewer bill alone would increase all other sewer customers' bills by 0.7%. It is the resulting cost shift, and no ability to reduce total sewer bills, that is the primary concern and reason for the WSRPC's recommendation to not adjust sewer bills.
Source page 8
V!
w
W
Y
Q
F
m
wo
Heaoo°�°ao
q
a
`u
�
e=
o�
y
O
U
aes0000 oe 00000 aove$00000veoos000eo oqy
M M r' 00000a°°>ooe o`ooeo;eoao°°
M N N N N N N N
O Q
6 < o O O O O O O O O O O o O O O O O o O O<
u O O O O O O O O O O O O 66 OO 6OO O O O O O O OO OO O O O O O O OO O O O O O O OO O O O O O OO
4
J 2
U
c
\le
Q
N
F O
_
N yy N y b N N ryry yM N M d N b pp�{q� N M d (O N N N M Oy O• } o d N N N N N M n
(y O W N O O N
r d 0 41 M N W (O M n N N W C4 y
b
w u'
N b N O r (b0 (O
N (O N fO M n n r b (O d M N N N
�. V M� N H^ M M tli N IV fV fV N N 614
d M
N w
`YYY5111 i
z�'
N
vw
(w�
yy�<ooaaev000 aooev00000aeeso<<ooe covO
MOO eO-eO- •-O Oc aO.<o. O
N M nO NO NG
��y1 dO
dO dO MO MO NC <O <O �O <O �O
e°lO
Z
O O O O O O ....O O O OOO O OOO.00
O OO O O
M
w mu
c
¢aoe
F wo)
Z Q
b W b OI b 10 OI d (0 M 10 10 (O m M N W y n p 10 M O y fp 1` ^ M M M V r
n V 0 O
o
n
0,
ww
U
°-
�' W ^CMNNNNN °1 p1 nI .N VI N N N N dd co C'1 lV
0
w
o
�w
M Q
$moo °°°ao ao e e v o o <o o e e v o o <<e a ao °°°<o e v o°°°°°o a ooeo
A t V Ol O h r� f 0 10 N N N
LL
!IL
(V << O O o O O O O O O O o o O O O O OO C o O O O O OO C O o O O O O O o o O O O OO o O
N
C
In
N
r t N V �y N M V N (NO O N Y N d y� n N O M W d� {y O• d b O O N (O N d N N W b N Ny N M O1
Ny O M O Nd d Vl N N {O N 9 n l0 M O N N O) W 1p n O N OI W
My
M
M
O
U
d d N r d M
yV y d
y g�O M
y� C9 d N d Q M M N N m � � 0 0 O) M M OJ f� Ih (� b 1p N d NI N fV N N
O
U
a° a° a° 'at
_ N ry r2 ry d M ry o a; q o o M M b b b b N b b N g q'Ogg
a °y OI M Q M M IV iV 0C4 < « O O O O o O O O O O O O O O O O O O O O O O C O O O N
LL) M M M M M y ob M M M V V O Q O
3 O NbN W M N W TpM�OOiN N(00 NMMN� ^N NbNNd �NMN(d�r NM 10 hM ONy<bNN OOi rMQ 1/� a
O M N O M M N Q N Y1 < M M h O M V q
m LL mm OOh 10 ppNh--MO--�MMh. •p V MMI+INNN NP« N LL
M N<- --c-'
fV N zW Q < p
N ry� q nn �OnM $n{.� Mq �y
b It N N< b n N H OdI b T Obi W r n A b IdO lOO N d M M N N N N N N m m n p n
b QOM<N< m m hi�b
EfD R' W N� m Ili q
O W yFm M V MMNN NNN °^ e� - - M
M
S W
U — U M N M N M N N M M N N M N M M N N N N M N N N N M N N N N N N N N N N N M N M N N N N
w 0
O:e���.o-°o-eO.eO^a0'CCC00000�<OC
W U w <
LU N
O � N O O N O N O O M O O M N N O O O O O O O O O 00 O N N O O O N O N O O O O O
LU
00 O O O O C O O O O O O O 00 O O O O O O O O O O O O O O O O O O O O O O O 00 O O O
(n O T N O p O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O
N pp 10N OI N OOM NSM OC OIr �} NNMO p N IG NOI nQ MOO d N M
f N M N OI � O V N Q n M O O Q OI h h {O M O OI O d N N M yQ fV lV 1e(�� IV N CI M (y O
U W N N N fD M OI MT O N N O b OI O H C! M M N M O O 01 N d C O O O N M O< q N O W a s W. W.Somomorono 0WN.. 0N 0M N00OeI0OMI0OMIMOM00. 0N <N 0W O.O. o OI. 0TMy....
00 n a
w U a
F z o
ul
z
o 5 °p�pozo z 2 a
N O U N N m a J
m ma �Uz(FUO O z
0OO ZF0 p W OWU N UJ OLL g w mJz LL ? O 5�O F�wz gqpJazFF2u4 d
O
NWb3? 0QNZ O z
Wm u2 yJQZU�w ZZ8_ O LLf2 aOfflDmZOF Uimzo°JVpVw°oiZoQ umrcazz°�WnwaU-OW0mm
y
o09c— 9 z43o
am��zo=mogmJOzopy2 aZOQQppwNQOh
w JmJ wZ a°JEKW
WmaMJWOQJ °z o� � 0
w oowO soWQSda
ly
aA3NON`�c
y1 m
w c E
M M M d Q Q N b n M M N M � N NNN N
N Qz
K