Loading...
HomeMy WebLinkAbout2019-01-16-CEC-min �y w-AOR yrry. Minutes of the s \�� Lexington Capital Expenditures Committee (CEC) Meeting n January 16, 2019 APRIL&", II,E XI NGT.O Location and Time: Samuel Hadley Public Services Building, Training Room (221); 7:45 A.M. Members Present: Charles Lamb (participated remotely), Chair; David Kanter, Vice-Chair& Clerk; Sandy Beebee; Rod Cole; Frank Smith; and Wendy Manz Members Absent: None Others Present: David Pinsonneault, Director of Public Works; Beth LeBlanc, Utility Billing Manager; Kathy Lenihan, School Committee; Sara Arnold, Recording Secretary Documents Presented: • Notice of CEC Meeting, January 16, 2019 • Utility Billing and Meter Reading Operations Analysis, March 19, 2018; PowerPoint; Weston & Sampson • Utility Billing and Meter Reading Operations Analysis, July 2018; Report; Weston & Sampson • Metering and Billing Operations Analysis—Update November 2018; Weston & Sampson; 19 November 2018 • Draft List of Potential Warrant Articles, 2019 Annual Town Meeting (ATM), 15 January 2019 Call to Order: Mr. Kanter called the meeting to order at 7:50 A.M., reporting that he would be serving as Chair in Mr. Lamb's absence. He gave Mr. Lamb permission to participate remotely as Mr. Lamb is at Logan International Airport awaiting an outbound flight. Mr. Kanter noted that all votes, therefore, would be by roll call. Proposed Automatic Meter Reading (AMR) System Project: Using the relevant documents listed above, Mr. Pinsonneault and Ms. LeBlanc reviewed the project. Clarifications included, but were not limited to, the following: • Water meters, either those currently in use or new AMR meters, have a life span of approximately 15 years and cost approximately $150. By their nature, the currently installed, mechanical, meters begin to under-register water usage by an increasing amount over time. • A radio-frequency (RF) device can be attached to meters that are currently in use without a broadcast capability—which is most of the current meters—that would allow them to be used with the Advanced Metering Infrastructure (AMI)—which describes fixed-network AMR systems. This would only be done with the meters that are not currently approaching end-of-life; those past end-of-life and any currently being replaced would be those with a solid-state means of registering water use which do not under-register water use throughout their end-of-life period, and which incorporate their own RF capability.) • Lexington's abatement program for unexpected/accidental water usage is time consuming and results in the Town reimbursing approximately $400,000 a year. The abatement is for the delta between the amount the resident had been billed and the wholesale rate of the unexpected/accidental usage. The wholesale rate is what the Pagel of 3 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 16, 2019 Town was billed for water by the Massachusetts Water Resources Authority (MWRA) at $2.73/hundred cubic feet for the water taken by the Town. • The AMI system would quickly flag out-of-the-ordinary water usage and the Town could contact the responsible party. If that person were unavailable, it would be possible for the Town to shut off the water on a temporary basis. • With the AMI system, it would be possible to spread out the billing over as many months as desired; the current proposal envisions quarterly billing. (Currently, there is semi-annual billing.) • The AMI system requires approximately five collection points—tower-based or otherwise elevated—throughout the Town; locations have not yet been identified. The batteries that would power the collection points have a 20-year life span. • Under the current system, 400-750 water meters are replaced annually. The Town budgets for 750 replacements. • If the recommended option for the project were to be approved, the approximately 9,800 meters that are at or over their 15-year projected life-cycle would be replaced over just a 3-year period. That would not be feasible with the department's bandwidth, so that would have to be done under a contract. • Currently, there are two meter readers on the DPW staff. Using the AMI system, only one would be needed for troubleshooting, allowing additional time for preventive maintenance and other tasks by the other. • The Water/Sewer Enterprise Fund is self-sustaining over the long term. • The projected cost for the AMI system would be approximately $4.0 million more than the cost of maintaining the current system. The largest financial impacts are associated with the abatements and the inequitable allocation to each user because of the under-reporting by the current, mechanical, meters. Other possible savings are difficult to quantify, but would be minimal. At best, complete financial recovery would take many years. • Funding sources that are currently being explored: ➢ An MWRA $2.0 million loan without interest (which would still need to be appropriated by Town Meeting); ➢ Retained earnings; ➢ A flat fee that would be added to water bills over approximately 15 years. Ms. LeBlanc and Mr. Pinsonneault agreed to provide the following • As the consultant's report only cited a range, the number of meters that are in "pits". • The gross amount and value of water that is "lost" (i.e., the difference between what is taken by the Town as reported by MWRA and what is the total reported as used by all the meters in the system (residential, commercial, other municipalities, and Hanscom Air Force Base). Mr. Kanter also urged Mr. Pinsonneault to develop a diagram that identifies the way the proposed AMI-system option would work. Page 2 of 3 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 16, 2019 During discussion it was generally agreed by this Committee that the AMI system has merit in terms of customer service and financial equity for the customer, but there isn't a tangible, meaningful, financial benefit that can be used to calculate a return on investment. The negative financial impact of the current abatement program does not represent Town funds paid to the MWRA. Several members expressed disappointment with the quality of the consultant's report. Preparation for the 2019 ATM: Using the draft list of proposed 2019 ATM Warrant Articles, Mr. Kanter reviewed with this Committee the 10 Citizen Petitions. He summarized their stated purpose based on the Article language used in the forms gathering signatures supporting inclusion of the Articles in the Warrant. He then offered his preliminary positions, and the basis for each, as to whether this Committee should report on those Articles in this Committee's report to the 2019 ATM if they are in the Warrant. The following table reflects those positions: Mr. Kanter's preliminary position 10 Citizen Petition articles submitted for the 2019 ATM. on whether the CEC should P take t� No Polystyrene Lin Jensen No single use straw Lin Jensen Yes Crematory funds Dinesh Patel Yes Reduce CPA Surtax Bridger McGaw Yes Money for Pc Dev Strategy Bridger McGaw Yes Estab Revolving fund for Sustainability Action Plan programs Ricki Pappo Yes Money to hire Sustainability Director Ricki Pappo Yes Adopt outcomes-based building policy Dan"Voss No Amend Zoning Bylaw Jeane Krieger Yes Amend Article III Chapter 118 Matt Dagget Member Concern: The next meeting is on January 23rd Adjourn: A Motion was made and seconded at 9:04 A.M. to adjourn. Roll Call Vote: 6-0. These Minutes were approved by the CEC at its meeting on January 23, 2019. Page 3 of 3