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HomeMy WebLinkAbout970731 July 31, 1997 Hagerstown, Maryland A Special Meeting of the Board of County Commissioners of Washington County was called to order at 7:30 a.m. at the Water & Sewer Department by the President, Gregory I Snook, with the following members present: Vice President John S. Shank, and Commissioners Ronald L. Bowers and James R. Wade. MEETING WITH WATER & SEWER ADVISORY COMMISSION The Commissioners met with the members of the Water & Sewer Advisory Commission to discuss several issues. In attendance were Clarence Scheer, Chairperson, along with Commission members Christopher Diehl, Gordon Crabb, Glenn Fishack, Ed Renn, Bonnie Parks, and Michael Armel. Opening comments were provided by Commissioner Snook and Clarence Scheer. Communications Gordon Crabb and Bonnie Parks made a presentation on the importance of good communications between the two boards. Mr. Crabb urged the Commissioners to listen to the comments being presented today and respond in a timely fashion. Ms. Parks indicated that this could be accomplished through streamlined communications, scheduling periodic meetings, and keeping users of the system  better informed. The Commissioners agreed to Mr. Scheers suggestion to plan for a quarterly meeting if there are enough agenda topics to warrant this schedule. (Commissioner Downey arrived at the meeting at 8:05 a.m.) Facilities Utilization Ed Renn reviewed the costs to maintain the Conococheague pre-treatment  facility and the Countys $2.7 million contribution to the water and sewer debt. He stated that the Advisory Commission would like a better understanding of the system to enable them to answer questions from the users. He indicated that the Commission would like permission to have existing staff develop information on the costs of the individual systems to account for revenues and expenses in each service area and to see if additional sources of revenue could be obtained. The Commission members stated that they are afraid that they will lose the capability to track and account for each project when  the Water & Sewer Departments accounting system is consolidated with the  Countys TAG system. After discussion and clarification of the request, Mr. Shoop stated that he could have County staff work with the Water & Sewer staff to develop a program to track revenues and expenses for individual service areas, but it may affect plans to downsize the Budget & Finance Department. The Commissioners took this matter under consideration.  Christopher Diehl presented the Commissions philosophy on marketing the pre- treatment plant. He recommended that the Commissioners hire an individual on a part-time basis to market the facility or consider the possibility of using a retired volunteer with marketing expertise. Mr. Diehl stated that this individual could identify organizations which use treatment facilities, identify the types of treatment needed by different companies, and develop a program to advance the utilization of the facility. He indicated that the they feel this individual should be included as a non-voting member of the Advisory Commission. Commissioner Snook stated that he feels the plan proposed has merit. Commissioner Bowers asked if the plant could be retrofitted to treat other type of waste. Greg Murray, Director of the Water & Sewer Department, stated that this could be accomplished. Rate Structure - Goals for FY 1999 and Beyond Clarence Scheer presented slides showing the cash flow analysis done by Black & Veatch for wastewater. He stated that the Advisory Commission has JULY 31, 1997 PAGE TWO  established a goal to have a 1 percent decrease in rates in fiscal year 1999. Mr. Scheer outlined his analysis for future rate increases. He stated that they will attack the existing debt using methods other than the planned rates increases. He proposed that the bonds be extended to 50 years to spread out  the debt and lower the rate increases for the out years to no more than 4 percent per year. Mr. Scheer provided a summary of the current bonds. He suggested that repayment of the bonds be staggered to establish an acceptable level of debt and that the Commissioners ask their Financial Advisor to provide information on every possible scenario. He indicated that this may  result in the lowering of the Countys bond rating. Mr. Scheer also asked that other possibilities be considered including raising the piggyback tax to the full 60% and establishing a regional authority for water and sewer. Mr. Scheer stated that the County must consider the effect on economic development when the cost of services are established. Mike Armel proposed that the rate structure be made more uniform for residential customer. He stated that the cost for the first 6,000 gallons is charged at the rate of $10.47 per 1,000 gallon and the next 6,000 gallons only costs $4.06 per 1,000 gallons. Mr. Armel indicated that this does not reward those who conserve water and is not a fair and equitable rate. He proposed that the Advisory Commission be authorized to pursue its goal of establishing a uniform rate structure for residential customers. Mr. Murray stated that this will shift the burden of revenue generation. After discussion, the Commissioners agreed that they would like to see the projections for changing to this type of billing procedure and the effect on rates. (Commissioner Snook was excused from the meeting at 9:45 a.m.) CIP Projects Glenn Fishack asked that a grants administrator be assigned to pursue grants for Water & Sewer Department projects. Commissioner Snook also noted that part of the problem are the increased mandates from the State requiring costly improvements without funding being included for the upgrades. Mr. Fishack stated that he feels discussions should also be held with the Washington County Delegation to the General Assembly. The Commissioners discussed various options, and the Commissioners agreed to revisit this issue. Mr. Murray reviewed the problems that the Elkridge water system is experiencing and the repairs needed to correct it. He recommended making temporary repairs and seeking grant funding to pay for the entire project. Mr. Murray stated that the total price for the project is $480,000 and the first phase will cost approximately $89,000. He indicated that he could do the repairs in-house for $50,000 but that this would be a change in philosophy  from the Boards directive to utilize the private sector for construction projects. The Advisory Commission indicated that they feel they can save the taxpayers $39,000 if they make the repairs using Water & Sewer Department employees. Mr. Shoop expressed concerns that this would effect the long-term preventive maintenance program. Commissioner Wade stated that this could also impact other County departments as well. Mr. Scheer stated that the Advisory Commission will make a recommendation to the Commissioners regarding this project. ADJOURNMENT Motion made by Commissioner Downey, seconded by Wade, to adjourn at 10:10 a.m. Unanimously approved.