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HomeMy WebLinkAbout971218 December 18, 1997 Hagerstown, Maryland A Special Meeting of the Board of County Commissioners of Washington County was called to order at 8:00 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, Chairman, along with Commission members Christopher Diehl, Glenn Fishack, Ed Renn, Bonnie Parks, and Michael Armel. Opening comments were provided by Commissioner Snook and Clarence Scheer. Financial Advisor Mr. Scheer stated that the Water & Sewer Advisory Commission has retained a consulting firm which specializes in water and wastewater financial issues. Mr. Scheer informed the Commissioners that Government Finance Group, Inc. was the firm chosen after the interview process. He reviewed the resume of each of the team members assigned to work with the Water & Sewer Department and their expertise in the financial issues related to water and wastewater treatment. Mr. Scheer stated that they will be concentrating on the debt issues and possible restructuring. Mr. Scheer informed the Commissioners that the Advisory Commission visited a wastewater treatment facility in Montgomery County, Pennsylvania, which is governed by a regional authority. He reported on the financing of the facility, the rates being charged, and problems the authority is facing due to the rate structure. Commissioner Wade suggested that the Advisory Commission ask the State Department of the Environment to be the lead agency in reviewing the possibility of regionalization of water and sewer for Hagerstown and Washington County. The Commissioners reviewed their discussions with the City of Hagerstown regarding the establishment of a regional authority. Rate Equalization Mike Armel presented information on the status of the rate equalization study and the initial test rates used in the calculations. Mr. Armel stated that they calculated rates for all classes of customers in both commercial and residential categories. He indicated that the test rates would yield the same amount of revenue currently received, although the revenue would be distributed differently. Mr. Armel stated that smaller users are paying a higher rate than larger users. The test rates used are completely linear with larger users paying more and smaller users paying less for services. Mr. Scheer noted that there is the assurance of a fixed operating base but use of the test rates would make the Water & Sewer Department more vulnerable if consumption goes down. After discussion, the Commissioners decided to review this information in more detail and discuss a recommendation on the rate structure with the Advisory Commission at a future meeting. Status of Agreements with Smithsburg and Williamsport Commissioner Snook informed the Advisory Commission that the County Attorney is addressing the issues in the agreement with the attorney for the Towns of Williamsport and Smithsburg. He stated that they would like to have this matter resolved as quickly as possible. Capital Improvement Projects 1) Beaverbrook/Holiday Acres - Glenn Fishack reviewed the history of the Beaverbrook/Holiday Acres sewer project which was approved by the Commissioners in 1993. Mr. Fishack proposed re-routing the line down Itnyre Road rather than through Smithsburg. Greg Murray, Director of the Water and DECEMBER 18, 1997 PAGE TWO Sewer Department, stated that it would cost an additional $289,000 to construct the line using the alternate route and the Department would need an additional 400 EDUs to break even. Mr. Fishack stated that it would save the $750 per EDU hook-up charge which has to be paid to the Town of Smithsburg under the current agreement. Mr. Scheer stated that the Advisory Commission has received petitions both in favor of and in opposition to the Holiday Acres project. Mr. Murray stated that if the proposed scope of the project is changed, it will require another public hearing. The Commissioners stated that they will discuss this matter in further detail and will advise the Advisory Commission of their decision whether to proceed on the project. The Advisory Commission asked that a final decision be made to allow them to submit projections needed for the CIP budget. (Commissioner Bowers was excused from the meeting at 9:55 a.m.) 2) Conococheague Interceptor Phase III and IV - The Advisory Commission asked if they should include this project in the FY 2000 CIP budget. They stated that it should be identified as a line item if the Commissioners want to proceed. Commissioner Wade stated that he feels this topic should be discussed. 3) Green Lawn Water Line - Mr. Murray provided background on the project. He stated that the County took over two small water lines with the intent to expand in the future and loop around the Town of Williamsport. He stated that the Town is not interested in taking over this system. Mr. Murray stated that the lines cost $10,000 per year to maintain. He indicated that the Town will agree to accept the lines into its system if they are upgraded to current standards. The estimated cost to upgrade the lines is $146,000 which is currently in the CIP budget. He stated that the agreement is currently in the  County Attorneys office for an opinion. 4) The Advisory Commission recommended that the Pen Mar Water system, the Pangborn East Sewer Project, and Kemps Mill Sewer Project, Phase II, be deleted from the CIP budget. Commissioner Snook asked for more information on the failure rates for the Pangborn East Sewer Project and whether there is a public need for the project. Pre-treatment Update Greg Larsen, Marketing Coordinator, provided a summary marketing analysis along with a marketing plan and mission statement for the pre-treatment plant. He reviewed the objectives and informed the Commissioners of the ways they are promoting the plant. He stated that a new client for the pre-treatment will be today. Mr. Murray informed the Commissioners that Cindy Glessner has applied to several agencies for grant funds. Recess - Lunch The Commissioners recessed from 11:30 a.m. to 12:10 p.m. for lunch. Commissioner Snook was excused from the meeting at this time. Joint Meeting with Washington County Delegation to the General Assembly and Hagerstown Mayor and City Council The Commissioners were joined by Senator Donald Munson and Delegates Louise Snodgrass, Anita Stup, John Donoghue, Robert McKee, and Bruce Poole. Also present were Robert Bruchey, Mayor of Hagerstown, and Council members William Breichner and Al Boyer, as well as members of the City staff. Mr. Scheer presented an overview of the progress being made at the Water & Sewer Department. He reviewed the mission statement of the Advisory DECEMBER 18, 1997 PAGE THREE Commission and its objectives. Mr. Scheer stated that the Advisory  Commissions immediate objectives include the development of a new user cost schedule, marketing of the industrial pretreatment facility to achieve financial self-sufficiency, and review and restructuring of the current debt. The Commission hopes to provide leadership in the move toward County-wide consolidation of water and sewer services essential to providing the lowest cost of services to its customers as future growth and stringent water quality standards are mandated. The Commissioners discussed the financial impact of the biological nutrient removal (BNR) upgrades mandated by the State Department of the Environment (MDE) on city and county residents. The Commissioners requested that the Delegation assist by asking MDE for additional financial assistance for the upgrades or for an extension of the time period given to make the upgrades and the period allowed for repayment. Commissioner Wade also asked that the Delegation request financial assistance for some of the smaller, mandated projects where it is not feasible to increase the rates to the amount needed to pay back the debt incurred to construct the project.  Mr. Scheer reported on the Advisory Commissions tour of the Oaks wastewater treatment facility in Montgomery County, Pennsylvania. The group then discussed the issues involved in regionalization. Gary Rohrer, Director of Public Works, stated that the joint City and County staffs will be making a presentation on this issue in January. The meeting was then opened for questions and discussion on the issues. Delegate Poole stated that he has spoken to several MDE officials regarding whether they would consider forgiving the loans the Water & Sewer Department has received from MDE. He stated that MDE is not willing to do so for fear of setting a precedent. The meeting was adjourned at 1:45 p.m. County Administrator County Attorney , Clerk