TR-2009-12 WATER USE RATES DPW la4�r 111
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RESOLUTION APPROVING WATER USE RATES FIXED By
THE DEPARTMENT OF PUBLIC WORKS
WHEREAS, it is in the interest of the public health, welfare, and safety of the inhabitants
of the Town of Agawam to improve the capabilities of the water distribution system; and,
WHEREAS, environmental and health concerns have necessitated the implementation of
requirements for water quality testing and public education; and
WHEREAS, §175-9 of the Code of the Town of Agawam requires that income from the
water works be used to defray all operating expenses and interest and princip4l payments on
bonds; and
WHEREAS, §175-9 of the Code of the Town of Agawam further requires that the
Department of Public Works fix just and equitable prices and rates for the use of water subject to
the approval the Council; and,
WHEREAS, the contract with the Springfield Water and Sewer Commission for the
purchase of water requires Agawam to conform with the Water Management Act Renewal
Registration Statement issued by the Massachusetts Department of Environmental Protection and
the Performance Standards for Residential Water Use established therein; and,
WHEREAS, the Performance Standards for Residential Water Use requires us to comply
with the 65 residential gallons per capita per day standard as soon as feasible; and,
WHEREAS, the water system modeling b� Tighe and Bond Consulting Engineers'has
demonstrated that improvements to our distribution system are necessary to provide water to our
citizens during maintenance and repair of Springfield Transmission Mains that supply our water;
NOW, THEREFORE, BE IT RESOLVED:
That the Agawam City Council in accordance with §175-9 of the Code of the Town of
Agawam hereby approves the following rates for water use:
Effective with the issuance of bills based on meter readings taken on or after July 1,
2009--
A. For residential users a charge of $1.36 per hundrcd cubic feet for the first 4,000
cubic feet in a six month billing cycle and a charge of$1.90 per hundred cubic
feet for water use over 4,000 cubic feet in six month billing cycle.
B. For all other class of user, including residential irrigation accounts, a charge of
$1.90 per hundred cubic feet of water usage.
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C. An account service charge of$54.00 per year with the amount to be billed each
billing period to be in inverse proportion to the number of billing periods per
year. Each meter used to record water usage shall be subject to an account
service charge.
D. Elderly citizens that own and occupy single family homes that qualify for clause
18 or clause 41 C property tax exemptions will be able to receive 1000 cubic feet
of water usage per year at no charge to be allocated equally between billing
periods. Those elderly citizens that own and occupy single family homes and
that qualify for clause 17D property tax exemption will be able to receive 400
cubic feet of water usage per year at no charge to be allocated equally between
billing periods. These citizens must apply for said water use abatement at the
office of the Department of Public Works prior to the due date of the water use
bill and show proof of property tax abatement and occupancy. The Assessor's
determination for the fiscal year containing January I shall be used for
determining water use abatements for meter reading taken in the calendar year
containing the same January 1.
DATED THIS DAY OF �2009
PER ORDER OF THE AGAWAM TOWN COUNCIL
,,-'�M. Letellier',We�id;nt
APPROVED AS TO FORM AND LEGALITY
Christopher C. Johnson, citor
MAYORAL ACTION
Received this day of )dn, 2009 from Town Council Clerk.
Signed by Council President this day of ) 2009.
APPRCIVAL-OF LEGISLATION
By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as
amended, I hereby approve the passage of the above legislation on this day of
`�Wa -32009.
Susan R. Dawson, Mayor
DISAPPROVAL-OF LEGISLATIQN
By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as
amended, I hereby veto the passage of the above legislation on this day of
2009 for the following reason(s):
Susan R-. Dawson, Mayor
RETURN OE LEGISLATION TO COUNCIL CLE
Returned to Council Clerk this day of 2009.
Department of Public Works
Water Division
10 Year History of Commitment , Collections Expenses
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL AdTUAL 10 YEAR
INCOME CENTERS 1998-99 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 TOTAL
RATES/FINES/LIENS - $ 1,865,611 $ 1,869,518 $ 1,908,964 $ 2,224,377 $ 2,310,990 $ 2,314,113 . $ 2,329,450 $ 2,248,882 $ 2,687,251 $ 3,149,900
METERZHARGES - $ -20,903 - $ 12,870 - $ 15,869 - $ 15,639 - $ 21,602 $ 25,-572 $ 24,-472 $ 19,462 $ 35,546 $ 40,900
CONNECTIONS $ 12,635 - $ 16,001 - $ 11,475 23,884 $ 16,204 -$ 7,384 --$ 13,-990 -$ 17,354 $ 27,795-$ 29,870
RENEWALS $ - $ - $ - $ 522' 571' $ 554 -$ - $ 0
MISC.CHARGES $ 12,069 $ 12,374 $ 9,673 $ 14,508 $ 21,044 $ 10,886 $ 25,566 $ 10,072 $ 12,048 $ 8,192
SURPLUS UTILIZATION $ 87,107 -$ (263,252)-$ '(159,-586)-$- (24,267).$ _146,404 $ 203,307 $ $ 50,.204
TOTAL CHARGES
COMMITTED(1) $ 1,911,218 1"910,763 $ 2,033,088 $ 2,015,156 $ 2,210,776 $ 2,334,259 $ 2.540,436 $ 2,499,077 $ ;i,762,-640 3,279,066 $23,496,479
TOTAL FUNDS
COLLECTED(2) 2,011,207 $ 2,034,826- $1,555,701 $ 2,231,406 $'2.404.219 $ i,550,270 $ 2,399,164 $ 2,450,303 $ 21745'b4 $ 2,950,533 $23,33i,763
RATE PER 100 C.F. S 1-02 - $ 1--02 $ 1.02-'$ 1.02 $ 1.02 $ 1.02 $ 1.02 $ 1.02 $ 1.36- $ 1.36-
ACCOUNTSERVICE
CHARGE $ 29.00 $ 29,00- $ 29.00 - $ 29-00-$ 29.00 29.00 $ 29.00-$ 29.00 42,00-$ 42.00-
EXPENDITURES BUDGET ITEMS $ 1,231,435 $ 2J88,795 - $ 1,522,339 $ 1,494,037 $ 1,964,027 $ 3,013,326 $ 2,150,598 $ 2,398,803 $ 1,927,632 $ 3,022,700
TRANSFERS(other Depts.&Projects) 939,026 $ 701,120 - t 221,594 * $ 149,468 - $ 264,647 - $ - $ - $ - $ -
SUB TOTAL $ 2,170,461 $ 2,889,915 $ 1,743,933 $ 1,643,505 $ 2,228,674 $ 3,013,326 $ 2,150,598 $ 2,398,803 $ 1,927,832 $ 3,022,700 $23,189,747
UNCHARGED INSURANCES,POSTAGE '$ 6,300 -$ 3,500 $ 6,500 4,000 - $ 86,532 $ 4,600 80,047 --$ - - t 81:683 $ 21,243 -$ 294,605
TOTALEXPENSES $ 2,176,761 $ 2,893,415 $ 1,750,433 $ 1,647,505 $ 2,315,206 $ 3,017,926 $ 2,230,645 $ 2.398,803 $ 2,009,715 $ 3,043,943 $23,484,352
Annual Operating Budget $ 1,677,171 '$ 1,997,781 -$ 2,033,088 ' $ 2,615,155 ' $ 2,210,776 $ 2.334,259--$ 2,540,436 ' $ 2,499,077 * $ 2,858,7'65 $ 3,001,887 $23,168,395
Page I
TownofAgawam
Water Fund
10 Year Receipts and Expenditures
ORG Object Description FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
60110 42110 WATER USAGE CHARGES 1,916.706.47 1,934,617,36 1,495,583.79 2,1 t8,378.33 2,261,027.33 2,356,159.66
60110 42111 WATER MISCELLANEOUS REV - - - 13,034.45 - -
60110 42112 WATER FINES 32,597.40 37,599.79 22,453.21 25,728.43 28,150.57 32,033.28
60110 42210 WATER METER CHARGES 20,346.00 17,148.00 15,578.00 17,069.67 20,068.00 20,785.00
60110 42211 WATER CONNECTIONS 15,994.98 13,695.60 10,580.00 7,585.00 11,342.10 11,905.45
60110 42212 WATER AIR REVENUE - 3,066.90 11,655,04 25,972.78 33,787.67 29,754.26
60110 48400 WATER CARRY FORWARDS - - - - - -
60110 42290 OTHER WATER REVENUE 4,721.42 (1,748.74) (149.50) 57.50 342.30 (190.00)
11380 42291 WATER LIEN REVENUE 20,840.29 30,447.62 21,082.16 45,006.62 99,822.80
11380 42292 WATER LIEN INTEREST - - 2,498.73 4,494.78 -
Total Revenue 2,011,206.56 2,034,826.53 1,555,700.54 2,231,407.05 2,404,219-37 2,550,270.45
01 SALARIES &WAGES
60141 51010 WATER DEPT REGULAR PERM 392,024.29 425,524.26 415,916,60 458,001.21 452,582.76 579,520.58
60141 51020 WATER DEPT REGULAR TEMP 1,990.86 4,221.64 3,063.28 1,986.69 6,818.24 4,988.63
60141 51030 WATER DEPT OVERTIME 32,464.45 38,344.16 32,991.49 43,313.94 47,188.52 38,096.58
60141 51070 WATER DEPT UNIFORM ALLOY 5,944,00 6,770.00 6,408.00 7,800.00 7,523.99 7,783.61
60141 51400 WATER DEPT LONGEVITY 4,650.00 4,862.50 4,050.00 4,800.00 5,125.00 4,350.00
437,073.60 479,722.56 462,429.37 515,901.84 519,238.51 634,739A0
02 EXPENSES
60142 52030 WATER DEPT REP,MAINT,REPL 8,172.84 33,627,17 3,876.49 3,935.69 9,586.58 37,915.90
60142 52060 WATER DEPT MV MAINT&REPL 2,458.70 1,669.90 16,246.55 1,929A0 351.00 13,957.43
60142 52070 WATER DEPT EQUIPMENT REN 1,528.65 729.05 1,006.40 1,630,50 4,395.91 3,205.32
60142 52090 WATER DEPT TRAVEL IN-STAT 500.00 580.00 269.70 87.68 600.00 424.20
60142 52100 WATER DEPT TRAV OUT-OF-S-1 - 475.00 500.00 - 190.64 -
60142 52110 WATER DEPT ELECTRITY&HEA 5,146.29 5,334.64 6,372.19 5,740.96 5,244�27 5,390.56
60142 52150 WATER DEPT TELEPHONE 625"00 625.00 589.27 622.89 1,073.18 954.35
60142 52170 WATER DEPT DUES & SUBSCR 249.70 242.00 296.00 350.00 314.00 424.50
60142 52180 WATER DEPT TRAIN & EDUCA 829.00 - 4,799.26 575.00 254.62 75.00
60142 52190 WATER DEPT PROF SERVICES 29,862.04 32,173.36 29,231.44 40,515.39 39,077.20 94,236.20
60142 52250 WATER DEPT POSTAGE&COUF 77.00 3,139.72 - 2,448.90 2,259.52 6,231.00
60142 52280 WATER DEPT PRINT& COPY 517.47 4,238.33 2,976.96 4,468.92 3,486.73 3,252.56
60142 52990 WATER DEPT MISCELLANEOUc 180.00 200.00 170.00 243.75 290.00 420.00
60142 56670 WATER PURCHASE 346,349.47 377,350.57 613,598.56 569,238.61 958,173.97 801,984.28
50142 57060 WATER DEPT MED CLAIMS&IN,' 25,884.00 29,275.00 31,086.00 37,363.00 - 42,301.00
60142 57070 WATER DEPT CONTRIB RETIRE 30,730.00 35,125.00 36,910.00 34,411.00 37,378.00 36,784,00
60142 57500 WATER DEPT PROP&LIAB INS 36,786.00 31,750.00 15,628.00 15,450.00 - 16.443.00
60142 57600 WATER DID LG-TERM DEBT PRI - - - - -
60142 57610 WATER DIP LG-TERM DEBT INT - - - -
489,896.16 556,534-74 763,556.82 719,011.69 1,062,675.62 1,063,999.30
TownofAgawam
Water Fund
10 Year Receipts and Expenditures
ORG Object Description FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
03 SUPPLIES
60143 52130 WATER DEPT FUEL& OIL 6,548.49 8,139�98 9,880.50 8,312.62 11,971.54 9,526.70
60143 52230 WATER DEPT OFFICE SUPPLIE 1,300.00 1,300,00 1,500.00 1,500,00 1,341.66 810.29
60143 52240 WATER DEPT OTHER SUPPLIE� 698.36 955.88 1,026.17 822.68 1,037.63 710.17
60143 52260 WATER DEPT MED &SURGICAI 49.01 100.00 93.84 100.00 100.00 100.00
60143 52310 WATER DEPT CHEMICALS& LAI 584-03 67.85 188.74 646.26 242.48 198.64
60143 52370 WATER DEPT MAT& EQUIP 3,181.26 3,727.06 5,041.76 4,509.22 3,665.49 3,574.90
60143 52430 WATER DEPT MV PARTS &ACC 9,543.17 9,037.34 11,194.36 6,708.32 5,168.25 6,408.80
60143 52440 WATER DEPT WATER SYS MAI 94,392.96 124,962.30 90,109.77 112,466.53 80,638.53 93,725.60
60143 52460 WATER DEPT ROAD MATERIAL 15,862.25 16,598.84 18,604.56 10,888.49 25,167.42 22,358.87
132,159.53 164,889.25 137,639.70 145,954.12 129,333.00 137,413.97
04 CAPITAL OUTLAY
60144 58000 SOUTHWICK ST WATER LINE E - - 1,850.00 9,7511�59 - -
60144 58300 WATER DEPT MACHINERY&EC 2,971.21 3,288,00 3,273.00 9.455.90 3,845.80 5,864.00
60144 58500 WATER DEPT MOTOR VEHICLE - 1,008.09
60144 58600 WATER DEPT SYSTEM MODELI - -
2,971.21 4,296.09 5,123.00 19,207.49 3,845.80 5,864.00
Total Current Year Budgeted Expenses 1,062,100.50 1,205,442.64 1,368,748.89 1,400,075.14 1,715,092.93 1,842,016.67
60149 52030 WATER DID EQ,RE,MAIN,&REPL 5,944.56 1,104.34 6,476.00 5,484.00 1,380.19 -
60149 52060 WATER ,MV MAINT& REP CIO
60149 52180 WATER DEPT TRAIN & LDUCA - - - 1,342.77 2,385.14 1,687.18
60149 52190 WATER DEPT PROF SERVICES - 6,458.83 970.45 3,468.34 27,202.31 2,250.00
60149 52230 WATER OFFICE SUPPLIES C/O - - - - - 654.93
60149 52240 WATER DEPT OTHER SUPPLIES
60149 52250 WATER POSTAGE C/O - 4,293.00 5,519.23 9,600,00 7,800.00 -
60149 52280 WATER DEPT PRINT & COPY C. - 1,282.53 - - - 1,496.82
60149 52370 WATER MAT'L EQUIP C/O - 927.50 4,791.24 -
60149 52430 M V PARTS &ACCESSORIES - - - - -
60149 52440 WATER DEPT WATER SYS MAI 6,144.43 48,050.39 0.01 38,083.03 11,376.88 62,205.90
60149 .52460 WATER RD MATERIALS C/O - 331.50 3,050.34 4,065.44 1,865.21 3,302.58
60149 56670 WATER DEPT WATER PURCHA 130,585.27 150,483.39 124,233.63 175,180.95 -
60149 58000 SOUTHWICK ST WATER LINE E - - - 31,918.04 -
60149 58300 WATER DEPT MACHINERY&EQ 4,300.00 - 8,549.46 4,772.20 -
60149 58500 WATER DEPT MOTOR VEHICLE 22,360.25 70,420.91 - - 16,971.00 32,712.00
60149 58600 WATER SYSTEM MODELING - -
60149 58602 WATER MAIN ST W MAIN C/O 700.000.00
60149 58605 DPW FACILITY ACQUISITION Ci - - 1,157,000.00
TownofAgawam
Water Fund
10 Year Receipts and Expenditures
ORG Object Description FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Total Carry-Forward Expenses 169,334.51 983,352.39 153,590.36 93,961.62 248,933.88 1,261,309.41
Total Expenses 1,231,435.01 2,188,795.03 1,522,339.25 1,494,036.76 1,964,026.81 3,103,326.08
60110 49700 TRANSFERS IN 35,642.00 38,014.00 (8,500.00) 49,035.96
60150 59000 TRANSFERS OUT 974,668.00 739,134.00 213,094.00 198,504.00 264,647.00
(939,026.00) (701,120.00) (221,594.00) (149,468.04) (264,647.00)
Revenues, Expenditures and Transfers (159,254.45) (855,088.50) (1188,232.71 587,902.25 17.5,545.56 (553,055.63)
Town of Agawam
Water Fund
10 Year Receipts and Expenditures 10 Year
ORG Object Description FY 2005 FY 2006 FY 2007 FY 2008 Total
60110 42110 WATER USAGE CHARGES 2,286,643.02 2,291,807.38 2,539,902.89 2,747,235.59 21,948,061.82
60110 42111 WATER MISCELLANEOUS REV 9,535.65 29,580.04 26,927.76 22,287.00 101,364.90
60110 42112 WATER rINES 32,184.54 28,580.44 33,095.38 30,810.36 303,233.40
60110 42210 WATER METER CHARGES 22,855.00 23,287.00 33,311.00 43,755.00 234,202.67
60110 42211 WATER CONNECTIONS 10,650.35 14,440.00 30,680.84 32,364.00 159,238-32
60110 42212 WATER AIR REVENUE 10,306.00 855.00 810.00 135.00 116,342.65
60110 48400 WATER CARRY FORWARDS - - 2,687.55 - 2,687.55
60110 42290 OTHER WATER REVENUE 1,534.00 978.00 - - 5,544.98
11380 42291 WATER LIEN REVENUE 22,727.12 52,475.79 68,605.44 64,467.96 425,475.80
11380 42292 WATER LIEN INTEREST 2,728.52 6,949.81 9,113.41 9,478.17 35,263.42
Total Revenue 2,399,164.20 2,448,953.46 2,745,134.27 2,950,533.08 23,331,415.51
01 SALARIES & WAGES
60141 51010 WATER DEPT REGULAR PERM 512,876.36 571,013.86 591,309.10 648,986.49 5,047,755.51
60141 51020 WATER DEPT REGULAR TEMP 6,955.56 11,087.89 4,632.90 5,422.74 51,168.43
60141 51030 WATER DEPT OVERTIME 36,777.08 34,112.39 49,802.68 49,191,82 402,283.11
60141 51070 WATER DEPT UNIFORM ALLOV 7,500.00 8,425.00 8,775.00 8,808.22 75,737.82
60141 51400 WATER DEPT LONGEVITY 4,431.15 3,000.00 3,450.00 3,600,00 42,318.65
568,540.15 627,639.14 657,969.68 716,009.27 5,619,263.52
02EXPENSES
60142 52030 WATER DEPT REP,MAINT,REPL 37,383.57 36,010.50 41,501.67 40,267.89 252,278.30
60142 52060 WATER DEPT MV MAI NT&REPL 15,207.00 12,798.69 12,841.27 14,120.52 91,580.46
60142 52070 WATER DEPT EQUIPMENT REIN 3,815.92 4,866.60 4,081.26 4,036.68 29,296-29
60142 52090 WATER DEPT TRAVEL IN-STAT - - - - 2,461.58
60142 52100 WATER DEPT TRAV OUT-OF-Sl - - - - 1,165.64
60142 52110 WATER DE PT E LECTRI TY&H EA 14,537.69 24,103.69 19,294.09 24,914-61 116,078.99
60142 52150 WATER DEPT TELEPHONE 1,358.95 1,628.61 1,819.90 942.72 10,239.87
60142 52170 WATER DEPT DUES & SUBSCR 317.00 392.50 400.00 400�00 3,385.70
60142 52180 WATER DEPT TRAIN & EDUCA 730.00 595.00 1,703.00 460.47 10,021-35
60142 52190 WATER DEPT PROF SERVICES 107,772.63 99,785.51 107,479.97 106,438.15 686,571.89
60142 52250 WATER DEPT POSTAGE&COUF 5,000.00 4,819.79 2,175.40 2,179.07 28,330.40
60142 52280 WATER DEPT PRINT& COPY 4,500.78 5,749.12 6,298.61 4,173.70 39,663.18
60142 52990 WATER DEPT MISCELLANEOU1% 205.00 340.00 245.00 405.00 2,698.75
60142 56670 WATER PURCHASE 884,992.25 1,160,608.03 694,076.14 630,739.67 7,037,111.55
60142 57060 WATER DEPT MED CLAIMS&IN,' - 70,717.00 - 86,294.00 322,920.00
60142 57070 WATER DEPT CONTRIB RETIRE 36,502.00 36,037.00 37,413.00 37,607.00 358,897.00
60142 57500 WATER DEPT PROP&LIAB INS - 16,443.00 16,443.00 - 148,943-00
60142 57600 WATER DID LG-TERM DEBT PRI - 44,400.00 44,400.00 88,800.00
60142 57610 WATER DID LG-TERM DEBT INT 26,997.65 33,969.00 60,966.65
1,112,322.79 1,474,895.04 1,017,169.96 1,031,348.48 9,291,410.60
Town of Agawam
Water Fund
10 Year Receipts and Expenditures 10 Year
ORG Object Description FY 2005 FY 2006 FY 2007 FY 2008 Total
03 SUPPLIES
60143 52130 WATER DEPT FUEL & OIL 16,929.04 29.771.25 23,660.00 28,195.19 152,935.31
60143 52230 WATER DEPT OFFICE SUPPLIE 1,885.68 1,734.49 1,996.24 1,915.42 15,283.78
60143 52240 WATER DEPT OTHER SUPPLIE: 584.74 1.368�59 1,402.94 947.81 9,554.97
60143 52260 WATER DEPT MED & SURGICA] 91.02 99.34 124.02 125.00 982.23
60143 52310 WATER DEPT CHEMICALS& LAI 128.56 606�30 185.63 290-06 3,138.55
60143 52370 WATER DEPT MAT& EQUIP 4,710.87 15,289.61 6.542.51 3,502.09 53,744.77
60143 52430 WATER DEPT MV PARTS &ACC 11,399,79 11,399.51 7,604.57 4,148.70 82,612.81
60143 52440 WATER DEPT WATER SYS MAI 25,160.52 97,216.95 66,467.32 283,507.26 1,068,647.74
60143 52460 WATER DEPT ROAD MATERIAL 26,156.87 22,278.74 13,936.73 9,117.51 180,970.28
87,047.09 179,764.78 121,919.96 331,749-04 1,567,870.44
04 CAPITAL OUTLAY
60144 58000 SOUTHWICK ST WATER LINE E - - -
60144 58300 WATER DEPT MACHINERY &EC 3,980.72 8,999.44 26,113.47 2,546.56 70,338.10
60144 58500 WATER DEPT MOTOR VEHICLE 59.32 2,225.00 720.00 - 4,012.41
60144 58600 WATER DEPT SYSTEM MODELI 11,430.01 - - - 11,430.01
15,470.05 11,224.44 26,833.47 2,546.56 85,780.52
Total Current Year Budgeted Expenses 1,783,380.08 2,293,52140 1,823,893.07 2,081,65135 16,564,325�08
60149 52030 WATER DP EQ,RE,MAIN,&REPL 8,791.16 - - 6,088.33 35,268.58
60149 52060 WATER ,MV MAINT& REP C/O -
60149 52180 WATER DEPT TRAIN & EDUCA 115.00 - 5,530.09
60149 52190 WATER DEPT PROF SERVICES 13,626.09 841.88 20,722.58 75,540-48
60149 52230 WATER OFFICE SUPPLIES C/O - - 654.93
60149 52240 WATER DEPT OTHER SUPPLIE,c -
60149 52250 WATER POSTAGE CIO - 27,212.23
60149 52280 WATER DEPT PRINT& COPY C, - - 2,779.35
60149 52370 WATER MAT'L EQUIP C/O - 6,956.16 8,533.31 21,208.21
60149 52430 M V PARTS &ACCESSORIES - - - 5,137.50 5,137.50
60149 52440 WATER DEPT WATER SYS MAI 7,375.28 55,513.40 57,203.75 259,215.61 545,168.68
60149 52460 WATER RD MATERIALS C/O - - 15,841.26 15,230.32 43,686.65
60149 56670 WATER DEPT WATER PURCHA 281,467.40 - 11,731.38 600,923.86 1,474,605.88
60149 58000 SOUTHWICK ST WATER LINE E - - 31,918.04
60149 58300 WATER DEPT MACHINERY&EQ 2,878,08 4,640.39 - 611.32 25,751.45
60149 58500 WATER DEPT MOTOR VEHICLE 52,965.00 29,491.68 - 24,584.00 249,504.84
60149 58600 WATER SYSTEM MODELING - 15,634.61 11,364.01 - 26,998.62
60149 58602 WATER MAIN ST W MAIN C/O - - 700,000.00
60149 58605 DPW FACILITY ACQUISITION Ci 1,157,000.00
TownofAgawam
Water Fund
10 Year Receipts and Expenditures 10 Year
ORG Object — Description IFY 2005 FY 2006 FY 2007 FY 2008 Total
Total Carry-Forward Expenses 367,218.01 105,280.08 103,938.44 941,046.83 4,427,965,53
Total Expenses 2,150,598.09 2,398,803.48 1,927,831.51 3,022,700.18 20,992,290.61
60110 49700 TRANSFERS IN 1,350.00 16,750.09 132,29Z05
60150 59000 TRANSFERS OUT 2,390,047.00
- 1,350.00 - 16,750.09 (2,257,754.95)
Revenues, Expenditures and Transfers 248,566.11 51,499.98 817,302.76 (55,417.01) 81,369.95
-T
To: Mayor Susan R. Dawson
From: John P. Stone, Supt. D.P.W.
Subj: Water Rate Increase 2U5 V'D� i 8' 2�j
Date: April 10, 2009
7
As discussed in our water budget submittal for fiscal year 20 10, there is a need to 'adjust the water use charges
and the structure of these charges if we are to meet the residential water use restrictions and unaccounted for
water loss being mandated by the Massachusetts Department of Environmental Protection while still providing
sufficient revenues are to meet projected costs and provide for needed improvements.
With regard to the first issue, we have just completed negotiations with the Springfield Water and Sewer
Commission for a new contract to provide water to Agawam for the next five years. One of the key new
requirements in this contract is the agreement that we abide by the conditions imposed upon the Commission by
the Massachusetts Department of Environmental Protection (DEP) in the 2008 renewal of the Water
Management Act Registration that regulates the Cormnission's water withdrawal from the Cobble Mountain
System. The DEP has required that the system comply with the 65 residential gallons per capita day(RGPCD)
performance standard and that unaccounted water(UAW) amount to less than 10% of our yearly use.
Residential usage includes lawn irrigation and over the last 6 years we have ranged from 74.2 to 82.3 RGPCD
depending on summer rainfall, Our unaccounted for wa'ter, the difference between the volume we buy and the
metered volume we sell, currently falls below the 10% mandate. This UAW typically is water lost by leaks,
water breaks or um-netered uses such as street sweeping, fire fighting, and main flushing.
If our 2009 residential uses isn't below 80 RGPCD we must develop and implement a compliance program and
if we are not at the 65 RGPCD figure by 2012 refine the program and its implementation. The most successful
ways to encourage conservation is to adopt an increasing block water use rate structure and this is the main
element of our proposed rate adjustment. In Agawam the average residential dwelling unit consists of 2.5
people (the 2000 census and the 2008 Applied Geographic Solutions agree within 0.06 of each other on this
statistic). Applying the 65 RGPCD to this average household size yields an annual consumption of 8,000 cubic
feet, or 4,000 cubic feet per six month billing period.
While facing this conservation mandate we must also deal with the increasing cost of water which has grown
from $770 dollars per million gallons in FY 2007 to a forecast rate of$980 per million gallons for FY201 0.
This growth of over 27% is principally due to higher energy and chemical costs. To limit the impact on the
Agawam resident we are proposing no increase in the rate for the first 4,000 cubic feet per 6 month billing
period. The rate for usage at the required 65 RGPCD rate for the average household would remain at $1.36/
100 cubic feet. Those who meet the mandated consumption will face only the account service charge increase to
$54.00, a $12.00 year or an 8 % increase over a three year period. They would pay an annual cost of$150.80
for water. To encourage residential conservation but raise the required revenue to meet expenses and provide
for improved infrastructure,we propose to charge $1.90 per 100 cubic feet for residential usage over 4000 cubic
feet per 6 month period and for all other classes of users including lawn irrigation accounts.
Historically an annual usage of 12,000 cubic feet for the average residence has been used by those doing
surveys of water rates. With this higher level of use an annual residential bill would $238.80 up from $205.20,
or a 16% increase. The following table below shows the new residential water cost in Agawam versus
surrounding conununities:
Community Annual Water rate
Cost
West Springfield $191-00 $1.3 5/1 00cf+ $28.80 service charge
Agawam $238.80 $1.36/100 cf first 4,000 cf then $1.90 + $54.00 service charge
_�Lnngfield $254.00 $1.87/100 cf+ $30.00 service charge
Westfield $300.00 $1,76/100 ef+$88.00 service charge
East Longmeadow $300.00 $2,50/100 cf
Chicopee $324.00 $2.70/100 cf
Southwick $360.00 $3.00/100 cf
The rate impact on other users is the $12.00 yearly increase in the account service plus a 39% increase in the
cost of the water they use. As an example a commercial, industrial or irrigation user of 20,000 cubic feet would
find their annual bill increasing from $314.00 to $434.00.
To expand on the issue of needed improvement to our water infrastructure, there are two areas where we need
to make improvements. First, we must renew our efforts to replace weakened asbestos-cement water mains to
increase the reliability of our system and reduce the unaccounted for water lost in breaks. As stated our UAW
has typically been below the ten percent DEP level but we must take steps to maintain this level. Historically
we had replaced an average 3500 feet of break-prone water main annually with new ductile iron water main
installed by our own crew. In recent years this work has fallen off and we need to return to this aggressive
program. This will reduce the likelihood of the type of break, loss of water and damage that occurred this past
year on Silver Lake Drive.
The other need we face is to make critical and significant improvements to our water distribution system in
order to maintain service to our users when the Springfield Water and Sewer Commission takes portions of the
transmission mains out of service for rehabilitation. The computer modeling of our water distribution system,
undertaken by Tighe and Bond,-has determined that we rely on our six connections to these transmission mains
to provide east-west water flow through our community. When portions of these transmission mains are shut
down for repair or rehabilitation, we will not be able to provide sufficient water supply for domestic use and
more importantly fire protection throughout our Town. To maintain water supply under these conditions, it is
imperative that larger water mains be installed easterly and westerly to interconnect with the Springfield
transmission mains that remain in service. The Capital Improvement Program contains several projects
including Main Street, North Westfield Street, Silver-Elm Streets and South Street; that will allow us to build
this required capacity and redundancy to protect public health and safety.
Enclosed you will find a resolution for Council consideration that would approve the proposed rates as well as a
analysis supporting their development.
TR-2009-
A RESOLUTION APPROVING WATER USE RATES FIXED BY
THE DEPARTMENT OF PUBLIC WORKS
WHEREAS, it is in the interest of the public health, welfare, and safety of the inhabitants
of the Town of Agawam to improve the capabilities of the water distribution system; and,
WHEREAS, environmental and health concerns have necessitated the implementation of
requirements for water quality testing and public education; and
WHEREAS, §175-9 of the Code of the Town of Agawam requires that income from the
water works be used to defray all operating expenses and interest and princip4l payments on
bonds; and
WHEREAS, §175-9 of the Code of the Town of Agawam further requires that the
Department of Public Works fix just and equitable prices and rates for the use of water subject to
the approval the Council- and,
7
WHEREAS, the contract with the Springfield Water and Sewer Commission for the
purchase of water requires Agawam to conform with the Water Management Act Renewal
Registration Statement issued by the Massachusetts Department of Environmental Protection and
the Performance Standards for Residential Water Use established therein; and,
WHEREAS, the Performance Standards for Residential Water Use requires us to comply
with the 65 residential gallons per capita per day standard as soon as feasible; and,
WHEREAS, the water system modeling by Tighe and Bond Consulting Engineers has
demonstrated that improvements to our distribution system are necessary to provide water to our
citizens during maintenance and repair of Springfield Transmission Mains that supply our water;
NOW, THEREFORE, BE IT R-�SOLVED:
That the Agawam City Council in accordance with §175-9 of the Code of the Town of
Agawam hereby approves the following rates for water use:
Effective with the issuance of bills based on meter readings taken on or after July 1,
2009:
A. For residential users a charge of $1.36 per hundred cubic feet for the first 4,000
cubic feet in a six month billing cycle and a charge of $1.90 per hundred cubic
feet for water use over 4,000 cubic feet in six month billing cycle.
B. For all other class of user, including residential irrigation accounts, a charge of
$1.90 per hundred cubic feet of water usage.
C. An account service charge of$54.00 per year with the amount to be billed each
billing period to be in inverse proportion to the number of billing periods per
year. Each meter used to record water usage shall be subject to an account
service charge.
D. Elderly citizens that own and occupy single family homes that qualify for clause
18 or clause 41C property tax exemptions will be able to receive 1000 cubic feet
of water usage per year at no charge to be allocated equally between billing
periods. Those elderly citizens that own and occupy single family homes and
that qualify for clause 17D property tax exemption will be able to receive 400
cubic feet of water usage per year at no charge to-be allocated equally between
billing periods. These citizens must apply for said water use abatement at the
office of the Department of Pub'lic Works prior to the due date of the water use
bill and show proof of-property tax abatement and occupancy. The Assessor's
determination for the fiscal year containing January I shall be used for
determining water use abatements for meter reading taken in the calendar year
containing the same January 1.
DATED THIS DAY OF 32009
PER ORDER OF THE AGAWAM TOWN COUNCIL
Gina M. Letellier, President
APPROVED AS TO FORM AND LEG.' LITY
Christopher C. Johnson, citor
WATER RATE ANALYSIS
WATER MAIN IMPROVEMENT PROGRAM
Income at 1,650,000,000 gallons purchase
QOST CENTERS FY201 0 FY2011 FY2012 FY2013 FY2014
Total Budue Total Budge Total Budge Total Budget Total Budget
Pers Serv. $ 872,838 $ 903,387 $ 935,006 $ 967,731 $ 1,001,602
Supplies $ 433,594 $ 448,770 $ 464,477 $ 480,733 $ 497,559
Services $ 418,360 $ 433,003 $ 448,158 $ 463,843 $ 480,078
Water Purch- 1650000000 $ 1,617,000 $ 1,673,595 $ 1,732,171 $ 1,792,797 $ 1,855,545
Cap.Out. $ 45,995 $ 47,605 $ 49,271 $ 50,995 $ 52,780
DEBT P&I
DPW Gar.Impr. $ 74,529 $ 74,529 $ 74,529 $ 74,629 $ 74,529
Main St.westerty $ 1,295,000.00 $ 116,550 $ 113,960 $ 111,370 $ 108,780
North Westfield $ 1,282,000.00 $ 115,380 $ 112,816 $ 110,252
Silver/Elm $ 874,000.00 $ 78,660 $ 76,912
South $ 883,000.00 $ 79,470
Avg 2003-2007
1528.2
Total Improvements $ 4.334,000.00
TOTAL DEBT $ 74,529 $ 191,079 $ 303.869 $ 377,375 $ 449,943
TOTAL COSTSIBUDGET $ 3,462,316 $ 3,697,439 $ 3,932,951 $ 4,133,475 $ 4,337,507
INCOME AREAS
Account serv.charge $ 580,500 $ 583,403 $ 586,320 $ 589.251 $ 592,197
meter sales $ 35.000 $ 35,245 $ 35,492 $ 35,740 $ 35.990
connections $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
misc charges $ 12,000 $ 11.800 $ 11,800 $ 11,800 $ 11,800
Sub total $ 637,500 $ 640,448 $ 643,611 $ 646,791 $ 649,988
FIVE YEAR TOTAL
Rate dependent income need S 2,824.816 $3,056.991 $ 3.289,340 $ 3.486,684 $ 3,687,519 $ 16,345,349
billable useage�100 cubic feet) 2029412 2029412 2029412 2029412 20294`12
Residential useage at 40ODcf/per. 806160 810191 814242 818313 822405
Useage @ secondstep 1223252 1223252 1223252 1223252 1223252
First Step Rate/100 cf $ 1.36
Main rate 11 00cf $ 1.90
First step income 40% $ 1,096,378 $ 1,101,859 $ 1,107,369 $ 1,112,906 $ 1,118,470
Second step income $ 2,324,178 $2,324,178 $ 2,324.178 $ 2,324.178 $ 2,324.178 FIVE YEAR TOTAL
Total Rate Income $ 3,420,556 $3,426,038 $ 3,431,547 $ 3,437,084 $ 3,442,649 $ 17,157,873.43
Page 1 water rate study 2009AS
WATER RATE ANALYSIS
WATER MAIN IMPROVEMENT PROGRAM
Income at 5 year average purchase
COST CENTERS FY201 0 FY2011 FY2012 FY2013 FY2014
Total RudAet Total Budge Total Bud-go Total Budaet Total Budget
Pets Serv. $ 872,838 $ 903,387 $ 935,006 $ 967,731 $ 1,001,602
Supplies $ 433,594 $ 448,770 $ 464,477 $ 480,733 $ 497,559
Services $ 418,360 $ 433,003 $ 448,158 $ 463,843 $ 480,078
Water Purch. 1528200000 $ 1,497,636 $ 1,550,053 $ 1,604,305 $ 1,660,456 $ 1,718,572
Cap.Out. $ 45,995 $ 47,605 $ 49,271 $ 50,995 $ 52,780
DEBT P I
DPW Gar.Impr. $ 74,529 $ 74,529 $ 74,529 $ 74,529 $ 74,529
Main St-westerly $ 1,295,000.00 $ 116,550 $ 113,960 $ 111,370 $ 108,780
North Westfield $ 1,282mom $ 115,380 $ 112,816 $ 110,252
SilvertElm $ 874,000.00 $ 78,660 $ 76,912
South $ 883,000.00 $ 79,470
2003-2007 Average water purchase
1528.2
Total Improvements $ 4,334,000.00
TOTAL DEBT $ 74,529 $ 191,079 $ 303,869 $ 377,375 $ 449,943
TOTAL COSTSIBUDGET $ 3,342,952 $ 3,573,897 $ 3,805,085 $ 4,001,134 $ 4,200,534
INCOME AREAS
Account serv.charge $ 580,500 $ 583,403 $ 586,320 $ 589.251 $ 592,197
meter sales $ 35,000 $ 35,245 $ 35,492 $ 35,740 $ 35,990
connections $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
misc charges $ 12.000 $ 11,800 $ 11,800 $ 11,800 $ 11.800
I
Sub total $ 637,500 $ 640,448 $ 643,611 $ 646,791 $ 649,988
FIVE YEAR TOTAL
Rate dependent income need $ 2,705,452 $ 2,933,449 $ 3,161,474 $ 3,354,343 $ 3,550,546 $ 15,705,264
billable useage(100 cubic feet) 1879604 1879604 1879604 1879604 1879604
Residential useage at 4000cf/per, 806160 810191 614242 818313 B22405
Useage @ second stop 1073444 1073444 1073444 1073444 1073444
First Stop Rate 1100 cf $ 1.36
Main rate/I 00cf $ 1-90
First step income 40% $ 1,096,378 $ 1,101,859 $ 1.107.369 $ 1,112,906 $ 1,118,470
Second step income $ 2,039,544 $ 2,039,544 $ 2,039,544 $ 2,039,544 $ 2,039,544 FIVE YEAR TOTAL
Jotal Rate Income $ 3,135,922 $ 3,141.404 $ 3,146.913 $ 3,152,450 $ 3,158,014 $ 15,734,702.30
Page 2 water rate study 2009.)ds
Fiscal Year 2010
Account Service Charge Determination
Semi-annual Billina
Personnel
maintenance craftman $ 46,366
readertinstaller $ 41.173
installer $ -
Deputy Supt $ 23,901
foreman 17,399
admin&clerical 51.793
engineering $ -
Mayor office $ 6.763
SubTotal Personnel $ 187,395
%of total personnel 24%
overtme $ 13.384
uniform $ 2,160
longevity $ 886
TOTAL PERSONNEL fY1 0 $ 203,815
Servioes
rep and maint $ 6.000
mv repairs $ 4,004
rents $ 803
travel in state $ 95
travel out state $ 47
HL&P motor room $ 15,150
telephone $ 1,250
dues&subs. $ 189
training $ 520
prof services
collectorltreas $ 33.352
data proc $ 7,361
auditor $ 8.180
lesting $ 3,650
postage $ 10,426
printing $ 4.250
misc $ 140
water purchase $ -
med ins. $ 21,048
refirement S 9,824
insurances
auto $ 2,2D3
liab. $ 751
wrk comp $ 1,181
TOTAL SERVICES $ 130,425
Supplies
fuel $ 11.953
office supplies $ 2.200
other supplies $ 331
medical $ 30
chemical $ 150
gmd&bldg maint $ 1,465
mv parts $ 2.667
water system supplies
meters 220,000
road materials
TOTAL SUPPLIES $ 238,995
Equipment
vehicle $ 4,822
readers/computers/printers $ 5,000
Total Equipment S 9,822
Grand total $ 583.056
number of accounts 10750
Annual Account Service Charge $ .54.24
say $ 54.00
$ 580.500.00
Page 3
To: Robert M.Young, Chairman Finance Committee
cc: Mayor Susan R. Dawson, Laurel Placzek,Treasurer: Cheryl St.John,Auditor
Full Council
From: John P. Stone,Supt D.P.W.
Re: TR—2009- 12
Date: May 6, 2009
1 am in receipt of your interoffice memorandum of May 5, 2009, and will be able to provide you with the
ten year accounting of the Water Division financials for your committee meeting on May 12. At this
time we can clarify some of the other issues you have raised.
First, last year we adjusted the Wastewater charges when we made that operation an enterprise fund.
It was those charges of which I spoke, indicating that the proposed rate was forecast to be sufficient to
cover budget projections for Fiscal Years 2009—2011. Those projections did not include either the
Westfield River Force Main Repairs or Phase 1 of Southwest Area Sewer Project both of which occurred
subsequent to the rate setting. The Wastewater Enterprise operation is financially separate and apart
from the Water Operations and the rate structures are determined separately. The water rates were
last adjusted in 2006.
As explained in our earlier communication the rate adjustment is necessitated by several issues:
increased expenses,the largest being the increase in the cost of water; the need to meet State
Standards for per capita residential water use (65 gallon per capita per day); the need to make
improvements to our water infrastructure to ascertain we will be able to provide water to the entire
community should any of the Springfield transmission main (or portions thereof) be taken off line for
repairs or maintenance; and a water income following below estimates due to economic contraction
and high rainfall.
As the water division is an enterprise operation it has to look within its own operations to generate
funds to cover it operations. It cannot looks to the general fund to provide help; the necessary revenues
needs must be met by users of the water system. We have reviewed the fees charged by the
department for all its operations and adjusted them accordingly to reflect the current cost of providing
the services. Historically these fees account for not more than 4%of water income and have minimum
impact. We did consider changes in the account service charge to reflect different meter sizes but our
account data and billing software could not accommodate this and as meter replacement costs are
amortized over 20 years the added income was small. Consideration was also given to establishing an
annual charge for various size fire service connections. Again our data was not sufficient,fire flows
requirements are determined by building size and not by connection (if any), and coupled with our local
sprinkler requirement could be considered as a deterrent to development. The Fire Dept advised that
there were maybe 100 such connections in Town and felt such a fee might discourage installations and
not be in the interest of pubI1cfWe.$y.-�eitLher ftrtar size adjustment nor the fire service charge
would do anything to encourage water conservation and help us meet the state mandated 65 gallons
per capita per day residential consun."dblV,AkNf,9.,:V
I-
Water billings in the current fiscal year for the May—April sections we annually tract were more than
$133,000 short of our budget projection, raising water fund use needed to meet the budget to an
estimated $450,000 from $277,000. Anticipated income under the current rate structure will be some
$690,000 below the proposed FY 2010 budget. If we use the water fund balance to meet this shortfall
the fund balance will fall below levels recommended by the Auditors and Bond Rating Agencies.
Without the rate increase significant reductions in the water budget will be necessary. The cuts would
impact both administrative and work force staff,goods and services and proposed water system
improvements.
V Town of Agawam
36 Main '-',ty-pet Acravvam., Massachusetts 01001.4837
,rFa 'rei. .41.3-786-0400 Fax 413-786-9927
FAX COVER SHEET
Fax Number (413) 786-992 7
Date: Originating Dept.
TO: 060b t1MAvj-a,
CD
FROM: &La�
Number ofPaoes Including, Cover Sheet:
COMMENTS: 4ut y ptc�, L&fta
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Fax transmissions tire solelyfor numicipalpalposes. A rzy person al or political use prohibited hy law.