November 25, 2003
TOWN OF EASTON, MARYLAND
Workshop
Wastewater Treatment Facility
Councilmember Maureen Scott-Taylor Councilmember Moonyene Jackson-Amis
Also in attendance were Town Planner Mr. Tom Hamilton, Assistant Town Planner Mr. Matt Davis, Easton Utilities President and CEO Mr. Hugh Grunden, Vice President of Finance and CFO Mr. George Roberts, Senior Vice President Mr. Jim Silvius, Water and Wastewater Department Manager Mr. Jerry Adams, Director of Corporate Communications Mr. Geoffrey Oxnam, Town Engineer Mr. Tim Glass, Town Attorney Chris Kehoe and Town Clerk Robert Karge.
The meeting was called to order at 6:15 p.m.
WORKSHOP MEETING
Mr. Grunden thanked the Council for their time. He presented a Power Point presentation and discussed the need for the new wastewater facility. He stated that the current facility will not meet new discharge standards and cannot be upgraded to meet the standards. Mr. Grunden stated that the current wastewater facility is also running out of capacity. He discussed an existing window of opportunity and stated that Easton has a leadership role with funding available from the state. He stated that the state revolving loan fund is between one and two percent. Mr. Grunden stated that new technology has become cost effective. He discussed tougher standards and future goals. Mr. Grunden discussed population growth in Easton and projection population. He discussed the growth area map from the Comprehensive Plan and stated that the 4.0 million gallon per day plant that is being proposed will not get Easton to the greenway. He stated that this plant will cover the Priority One and Two and some areas of Priority Three.
Mayor Willey asked if the Plant will not cover all the greenway, is it conceivable that everything could be pumped to that location or is there another location being considered.
Mr. Grunden stated that this would have to be looked at but he thought the plant at the existing location would be expanded by putting in another treatment train.
Mr. Grunden stated that Stearns & Wheler had been hired for the design of a 4.0 million gallon per day plant with a target completion of 2006. He advised that they have selected technology that meets or exceeds current and anticipated pollution standards. He stated that ENR (Enhanced Nutrient Removal Technology) is the best way to accomplish these objectives.
Mr. Grunden stated that the total project cost including administrative, engineering, legal, fiscal and contingency is approximately $31.1 million which will be funded through a combination of debt and State grants. He discussed funding for the new facility and the estimated cost. He explained that all customers must pay for enhanced treatment and clarified that existing customers will not pay for growth. Mr. Grunden stated that they will bring forth a rate structure that causes new customers to pay for the growth. He stated that rates will have to be adequate to operate plant and service debt. He stated that the rates will have to have substantial increases over current rates as well as structured so growth costs are paid by new users.
Mr. Grunden discussed wastewater capital charges. He stated that there are two charges to look at; capital charges and a recurring charge. He stated that capital charges are a one-time fee to developers based on the number of equivalent dwelling units.
Mr. Grunden discussed wastewater usage charges. He explained that the there is a quarterly charge to all customers for service with a fixed customer service charge of $12 per quarter and a variable usage charge of $0.1486 per 100 gallons of water used. He stated that the current rates were approved by the Town Council and placed into effect as of January 10, 2002.
Mr. Grunden explained that the projected rate impact is hard to determine due to the fact that they are not sure what the actual plant is going to cost until it is built.
Mr. Grunden discussed how to avoid rate shock with a rate step-in strategy. He stated that this would contemplate raising rates a little in 2004, a little in 2005 and another bump in 2006 until you get to the revenue target to help avoid rate shock.
Mr. Jensen questioned the terms of the loan. Mr. Grunden explained that there would be incurring costs from the onset of construction.
Mayor Willey discussed new development paying for more than 20% of the project.
Mr. Jensen asked about the limitation on Easton Utilities to set fees. Mr. Grunden stated that he is not aware of any limitations. Mr. Grunden suggested directing these questions to the Town Attorney.
Discussion occurred on the method of determining rates.
Mr. Wendowski asked if developers pay a fee when the allocation is set aside for a development.
Mr. Grunden stated that the developer does not have the allocation until he pays.
Mr. Grunden discussed wastewater rate comparisons for residential customers. He stated that when the new plant comes on, Easton’s rates will be comparable with the average.
Mr. Grunden discussed the project timeline with preliminary engineer reports beginning in November 2003, construction in July 2004 and the projected startup date of May 2006.
Mr. Grunden stated that the success of the project depends on our community’s commitment, as exercised through Council action. He stated that Easton Utilities is committed to talking to stakeholders.
Mr. Grunden suggesting making a presentation for the public during an upcoming Council meeting.
Mr. Wendowski asked for the structure of the $31 million.
Mr. Oxnam stated that there would be $11 million in grants.
Discussion occurred regarding I&I (infiltration and inflow).
Mr. Ford discussed the grant timeline.
Mr. Grunden stated that they have contacted Talbot Preservation Alliance.
Mr. Ford stated that if there is to be legislative action taken, this presentation in condensed form must be presented.
Discussion occurred regarding presenting the Wastewater Treatment Facility presentation to individual neighborhoods after the neighborhoods.
Ms. Jackson-Amis stated that there is understanding that a new wastewater treatment facility is necessary. She suggests notifying customers that this is going to happen and advise them how to prepare for it. Ms. Jackson-Amis asked for a way to have the consumers’ state how they would like to be billed for the additional charges. She thought it would give the council members a way to have feedback. Mr. Grunden stated that they will look for a way to do that most effectively.
ADJOURNMENT
There being no further discussion, the President of the Council adjourned the workshop at 6:58 p.m.
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Town Clerk