===PAGE 1=== Minutes of 4/25/23 Sewer Commission meeting– via Zoom (Video Conference) Attendees: Chair- John Reynolds, Vice-Chair- Brett Ramsden, Member: Mike Nault, DPW Director- Bill Bernard, Business Manager-Paula Bertram, Minutes Clerk- Jane Ranley Absent: Mike Deveikis and Dave MacDonald John opened the meeting at 6:01pm. and did a roll call of attendees. PUBLIC COMMENT- none ANNOUNCEMENTS – John announced that the Town Meeting will be May 6 at the Middle/High School and the Town Election will be May 20. He wished Brett good luck and urged all to vote. CURRENT BUSINESS - Rate Increase, Capital Planning and FY23 Budget Update- Paula noted the Fitchburg rate increase will be 7% each year, for the next 5 years. She added that Leominster is potentially looking at a rate increase but she does not know how much yet. They are also potentially looking at increasing the connection fees. Paula clarified that when they talk about the Capital Plan and the rate increase, it is only taking into account the Fitchburg rate increase. John noted that Barb thought there would only be a 4% increase for Fitchburg – not the 7% increase and suggested discussing a rate increase for next year. Paula, Bill and John met with Al Packard (CTE) to discuss his wish list for pump station equipment and upgrades. FY28 would require $700K for the upgrades but Paula put together a worksheet, spreading the cost over several years up to FY28. She noted the Capital Plan does not take into account the manhole issue, which will need to be put into the rate increase discussion. They did not pull in the Revenue they had expected, which means they will not have the surplus they usually have at the end of the fiscal year, ending up with just a $17K surplus. Paula screen-shared FY23 Budget. She stated in Revenues, they anticipate being over $42K for betterments but under $53K for User fees, with total Revenues about $34K. Payroll expenses will be over $17K, due to paying vacation and sick time to Barb, but partially offset by $9K from the unfilled Asst. Business manager position, which will leave Payroll short $8K. Usage Fees - They had budgeted $732K for Fitchburg and Leominster usage but got a high bill from Leominster and a higher bill than usual from Fitchburg, which may be due to the quick snow melt. For FY23, Paula is estimating they will be over $85K for Usage Fees. Planned capital – They have spent $15K so far and Paula suggested plugging in $32K for items on Al’s wish list such as a new crane at 1280 Mass. Ave and pump at 1790 Mass. Ave. They will have extra in Purchase of Service and will not spend the full amount on Legal or Engineering Services. Paula reached out to Wright Pierce for ideas on redirecting flow and if a treatment plant is viable. The overall anticipated surplus will be $17,182.22, which will go into Retained Earnings. Mike N. said they will need to look at a rate increase and find a number that will carry them through for 3-5 years. Brett questioned if they had already discussed doing a small increase each year but agreed with considering a large bump to carry a few years. John suggested having a large increase next year, followed by small ones. Paula screen-shared and explained her worksheet for a 5-year plan, which will help them calculate costs when Leominster gives their rate increase. She explained that starting in FY25, the Betterment Revenue vs Debt Service will go from negative to positive figures, due to debt service falling off. Based on a substantial rate increase of 12%, the worksheet forecasts a pull in FY24 of $419K from Retained Earnings, but in FY25 they will deposit $5K into Retained Earnings. Other rate increase amounts will change those figures. The Commission discussed Al’s wish list for FY24 to FY28, with the biggest expenses being generators. Paula noted the generators have a 20-year life expectancy and many of them are nearing that. Mike N. and Brett congratulated Paula for the great work she did on the worksheets and agreed to spread the cost over several years. Bill B. also said it was a good planning tool. The Commission will work out the rate increase and let it play out. Administrative Assistant Position- Paula and Bill interviewed 5 people and 1 candidate stood out, who has municipal, as well as database experience. Unfortunately, she only wants to work 19 hours/week, with no benefits. They will need to go through the union in order to hire someone for less than 24 hours. Paula thinks 19 hours/week will be enough and Bill agreed. John pointed out Paula has done a lot of streamlining and would agree with 19 hours. Previously, Mike and Dave suggested a clerical position, but Paula said Julie (HR) did not want to add another position, so they would need to re-negotiate with the union. Paula will need to meet with Heather and she is not sure ===PAGE 2=== how long the candidate will wait. There will be cost savings if they do not need to pay benefits. If they have to go back to the union, they will not be able to hire in May. Minutes of 4/11/23 – were tabled to the next meeting. Town Meeting- Dave plans on attending. Mike N., Brett and John were not sure about attending. Action Items- none Business Manager Report – Attendance of CTE at May Meeting-Chad Empey and Al will be attending the 5/9 meeting. Paula did not have any pump station reports yet but suggested discussing the RFP with them. Operation & Maintenance RFP Status- The RFP is still be reviewed by Julie and has not gone out yet. Paula will be meeting with Town Counsel to discuss privilege fees and potential for putting a municipal lien on A&D Crossroads. John noted it is not clear when to charge a betterment vs. a privilege fee. PUBLIC COMMENT – Brett stated it was outstanding work done by Paula and all agreed. Paula will send out some dates to Dave and Mike N. to meet with Leominster during the day. UPCOMING SCHEDULED SEWER COMMISSION ACTIVITIES: May 6, 2023 @ 9am- Town Meeting, LMHS May 9, 2023 @ 6pm – Regular Meeting, Remote Participation May 30, 2023 @ 6pm – Regular Meeting, Remote Participation June 13, 2023 @6pm- Regular Meeting, Remote Participation Motion: Brett R. Second: Mike N. To adjourn at 6:54. Roll Call Vote: Brett-aye, Mike N.-aye and John-aye. Respectfully submitted, Jane L. Ranley Minutes Clerk Handouts: The following were screen-shared: FY23 Budget to date 5-Year Plan Worksheet