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Current Sewer Support Team  Business Manager: Barb Lefebvre  DPW Director: Jack Rodiquenz  Commissioners:  Carl LuckChairman  Jay SimeoneVice Chairman.

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Presentation on theme: "Current Sewer Support Team  Business Manager: Barb Lefebvre  DPW Director: Jack Rodiquenz  Commissioners:  Carl LuckChairman  Jay SimeoneVice Chairman."— Presentation transcript:

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2 Current Sewer Support Team  Business Manager: Barb Lefebvre  DPW Director: Jack Rodiquenz  Commissioners:  Carl LuckChairman  Jay SimeoneVice Chairman  Dave MacDonaldClerk  Mike NaultMember  Butch BilottaMember  Small Water Systems Service: Systems operations and maintenance contractor  Weston and Sampson: Primary Engineering Consultants  Many Thanks to this Hard Working and Dedicated Team

3 Major Changes Planned from FY 13 to FY 14 From FY 14 Fincom Presentation  Outsourcing of Sewer System Maintenance and Operation  24/7 Operation with single employee not a sustainable model  Eliminates Current Town Employee (transfer to opening in DPW)  Eliminates Direct Labor Overtime Costs  Eliminates Stipend for On Call  Eliminates Vehicle Costs  Reduces fringe benefits  Improved Cost Control: Fixed Price Contract Cost Including Emergency Service  New IMA with Fitchburg  Provides Additional Capacity Required for Existing Commitments and Limited Expansion  Requires proportional cost share for John Fitch Hwy line upgrade  Converts from Water In to Total Flow Out Usage Cost Calculation  Cost increase should be offset by reduction in “adder”  Eliminates “Double Dip” Capital Costs  BALANCED BUDGET Complete

4 Rate Increase FY 14 From FY 14 Fincom Presentation  Goals of Rate Increase  Balance the Budget  Apply Single Rate to all Users  Rate Increase Methodology  Increase minimum usage charge by from $81 per quarter to $97.20  At time of last rate increase the minimum charge was not changed this is consistent with prior rate increase percentage  Adjust base rate as required to balance budget  From $9.72 per100 cu.ft to $11.50 per 100 cu.ft.  Adjust minimum usage to maintain consistant rate  Minumum usage going from 1,000 cu.ft. to 840 cu.ft.  Results in greater percentage increase to users between 840 and 1,000 cu.ft. No Increase Required To Balance FY 15 Budget

5 Key Points of New IMA: Operational  Capacity:  Increased from 80 gpd to 161,000 gpd  10,000 gpd at Summer Street (no change)  151,000 gpd at 2A (basis of John Fitch Highway upgrade/cost)  User Fees  Lunenburg pays same rate as Fitchburg residents (currently $7.30)  “Adder” of $1.65 eliminated until extraordinary cost justified (18.5% reduction)  No extra capital fees (other than John Fitch upgrade for capacity reserve)  Any Fitchburg rate increases require 90 day notification  Connections fees to Fitchburg increased to $2,000  Billing based on meters at town lines (Summer St. and 2A)  10% increase expected due to I/I but more than offset by reduced “Adder” reduction

6 John Fitch Capacity Increase Cost Share Total Design Cost$333,708 Construction Cost$1,776,753 Total JFI Cost$2,110,461 Loan Payments Design$26,241.96 Construction$112,440.69 Total Loan Payment$138,682.66 Lunenburg Share Design flow 1,126,000gallons / day Lunenburg Share 151,000gallons / day % of project13.41% Total JFI annual debt$138,682.66 Lunenburg Share$18,597.76

7 Capacity Increase Financial Issues to Address  Need to establish clear and fair policy to spread cost of securing capacity across new users  Fee payment/timing should be linked to capacity allocation as required by our Sewer By-Law  Current direction is to set up capacity “bank” to pay off JFH agreement and protect for future needs.  Highfield and other new users will provide upfront payments but payments to Fitchburg will be spread over 20 years  Fee to continue beyond JFH cost to build reserve for future use  Projected “fee” for new user (not yet bettered) is $1.87 per gal.  Three bedroom home -$617  Four bedroom home –$822  Effective date as soon as policy is released, target July 1 st.

8 Additional Accomplishments in FY 14  Supporting Areas of Need with Extensions of Service  Lancaster Ave Extension Complete (11 potential new users)  Lakeview Ave. resident petition successful, will be moving forward with Appropriation Request at Town Meeting  Pratt St. petition successful thanks to final push/door to door by Commissioners Mike and Dave, will also be brought to Town Meeting  Achieved sufficient score to qualify Lakeview and Pratt for SRF loan.  Working with Highland St. resident on extension  Private extension policy and covenants established  Educational outreach on “Flushables” and Grease ongoing  Videos secured and aired, Public Access telecast being prepared  Grease Trap Education/Policy Enforcement  Brought from 0% to 100 % compliance with Annual Permitting  Cleaning reports still lacking, but next focus  I/I Reduction  Kicked off house to house inspection contract to find sources in Whalom area  I/I Fee Policy/Fee implemented  Regs and Policy reviewed, updated and released

9 Ongoing Sewer Commission Project Management  Goal: Assign Member of Sewer Commission as Champion for Major Projects  Responsible for maintaining project overview and regular reporting to SC.  Works with appropriate operations, business management, suppliers and or other Town governing groups to achieve goals set by Sewer Commission  Investigate and propose new activities and/or policies within assigned areas  Grease Trap Policy/Compliance: Dave MacDonald/Mike Nault  Outflow Rate Metering and Tracking: Mike Nault  Lakeview/Pratt Betterment:Dave MacDonald  Capacity Fee Policy: Carl Luck  Inflow and Infiltration Reduction: TBD  Privately Funded Extension Policy: TBD  Remote Monitoring/Control of Pump Stations:Jay Simeone  Improved Business Practices:Carl Luck

10 Overview of Usage and Rates FY14 vs FY15  Usage Rates Paid by Lunenburg FY 14FY 15  Leominster(per 100 cu. ft.)$4.574.80  Fitchburg$8.95 $7.30  Rate to Lunenburg Users (per 100 cu. ft.) $11.50  Total Number of Users/Connections708730  To Leominster575593  To Fitchburg133137  Units with access not Connected355333  Total Units with Access 1,063 1,063  Pratt and Lakeview Potential Users81

11 SEWER ENTERPRISE ADJUSTED FY14 BUDGET PROPOSED FY15 BUDGET INCR/DECR OVER FY14 FINAL BUDGET REVENUES User Charges (YTD is actual 50% based on Commitmts) $ 683,263.00 $ 709,753.00 $ 26,490.00 Connection Fees $ 22,500.00 $ 27,000.00 $ 4,500.00 Sewer Bank Fees $ 7,440.00 Penalties & Interest (incl. prior year pmts) $ 6,300.00 $ 8,000.00 $ 1,700.00 Drain Layer Fees $ 1,000.00 $ - Grease Trap Annual permit fees $ 1,000.00 Investment Income $ 1,550.00 $ 2,333.00 $ 783.00 Sewer Use Regs$0.00 $ - Highfield Capacity -Reserve Fund - one time pmt $ 57,716.00 Adjusted Total Revenues $ 714,613.00 $ 814,242.00 $ 99,629.00 FY 14 and FY 15 Budgeted Revenues Detail

12 FY 15 Cost Element as Percent of Total Costs User Fees = 95% of Operating Revenues

13 FY 15 Key Budget Assumptions  Addition of 22 new connections/users  No rate increase to Lunenburg customers  Outsource contract increase of 2.5%  No new rate increases from Fitchburg  Leominster rate increase assumption of 5% included in Budget  No extraordinary legal fees  Continuation of I/I reduction at roughly $35,000 in FY 15  Addition of generator maintenance outsourcing/contract with current operations company  No impact to Enterprise Fund with proposed extensions at Lakeview and Pratt

14 FY 15 Budget Items to Note  No transfers from Retained Earnings for Operating Budget BALANCED BUDGET AGAIN!!  Retained earnings as of 7/1/13 were $471,785  John Fitch Highway Upgrade Treatment  Expected upfront income of $57,716 from Highfield capacity charge shown in FY 15 Revenue  $54,830 of this amount shown as cost, to be moved to separate account to be drawn on annually (working with Town and Fitchburg to simplify process)  $2,886 included in projected annual payment of $18,598 to Fitchburg  This income is not reflected in “Operating Income” on prior slide  Inflow and Infiltration Fee  As this $7,440 is an I/I “Bank” that is restricted for use on I/I reduction, it is not considered part of the “Operations Income” in analysis  For the FY 15 budget we have reduced the planned costs of $35,000 for I/I reduction by this amount

15 Last Words  Thank you to all the Commissioners for volunteering their precious time and energy to this very important effort that is a significant contributor to the future of Lunenburg  Thanks to Barb Lefebvre for her many hours of dedicated effort to keep all of the balls in the air, well done!  Thanks to Jack Rodriquenz for his efforts, guidance and knowhow that helps keep us moving in the right direction  Thanks to those that have helped find ways to help get services to those in need on Lancaster, Lakeview and Pratt  Thanks to Jay Simeone for all his work and sharing of knowledge, you will be missed  HELP: we have one opening on the Commission and would love to hear from any interested candidates who would like to roll up their sleeves to help the Town and continue this good work

16 Questions?


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