April 8, 2014 Presented by: Lunenburg Sewer Commission.

Lakeview Ave/Pratt St. Area Sewer Extensions Overview Presented to BOS

April 8, 2014

Presented by:

Lunenburg Sewer Commission

Sewer Extension Warrant: Article 21

• At the May 3rd Town Meeting the Sewer Commission will be presenting a Warrant to authorize borrowing up to $2.2 M for two simultaneous sewer extensions: Pratt and Rennie Streets Lakeview Ave area (Cross Rd, Harris Ave, Pine Grove Rd. Sunset Ave) By combining these two projects the Commission hopes to realize

some economies of scale to lessen the burden on the residents• SRF low interest loans are expected to provide most of the

funding• Sewer Betterments covering all costs will be assessed to

affected residents No impact to the tax base or rest of Town residents

Lakeview/Pratt Sewer Extensions Overview, Slide 3

Lakeview/Pratt Sewer Extensions Overview, Slide 4

Motivation: CWMP Areas of Need

• After 3 year detailed study, 2010 CWMP identified both areas as “Needs Areas” Pratt/Rennie Streets

These streets were in original Phase 1 design but never constructed High water table makes conventional Title 5 systems problematic

Lakeview Ave. Area (Cross Rd., Harris Ave., Pine Grove Rd., Sunset Ave., Lakeview Ave.)

Ranked second highest in 24 areas evaluated in CWMP Needs assessment

Very dense housing with several Title 5 failures Proximity to Lake Whalom also drives need

• Both projects were initiated by local residentsLakeview/Pratt Sewer Extensions Overview Slide 5

Documented Resident Support

• Sewer Commission Extension Policy requires 2/3 (66%) of affected residents to agree (in writing) to go ahead with a sewer extension

• Lakeview Avenue Area Total affected properties = 42 Responded positively = 29 Percent approval = 69%

• Pratt/Rennie Street Area Total affected properties = 39 Responded positively = 29 Percent approval = 74%

• Kudos to Mike Nault and Dave Mac Donald for reaching out to the residentsLakeview/Pratt Sewer Extensions Overview Slide 6

Project Costs and Funding

• Estimated Betterment Total Cost of Both Projects $2.2 M Includes ~ 20% layered contingencies Includes ~ 15% for additional engineering/surveys and legal Does not include resident costs for low pressure pumps/connections

SRF Funding Low Interest Loan Eligible Cost $1.6 M Applications submitted and ranked very high by State On Mass DEP Final 2014 Intended Use Plan list of projects to be funded

• Additional funding/borrowing by Town is required Near term for engineering/design required for October SRF application

Cost estimates being requested now• All costs for both projects will be part of the Betterment to be shared

by residents with access to new sewer lines No net cost to Town or Sewer Enterprise Fund

• Need to investigate possible Federal funding of road work on Pratt

Target Time Line

• SRF Project Evaluation Form (PEF) August 2013• Project Makes SRF Fundable List December 2013• Confirmed Resident Support March 2014• Town Meeting Vote May 2014• Engineering/Design & Cost Update July – Dec 2014• SRF Application October 2014• SRF Funding Authorization December 2014• Construction May 15–May 16• Betterment Assessments June – July 2016Lakeview/Pratt Sewer Extensions Overview Slide 8

Thank You for Your Support

• Residents who initiated and worked hard to get necessary support from area Paul Michaud, Pratt Street Larry Corbett, Mike Raboin and Walter Rinki, Lakeview Ave. area

• Sewer Commission Business Manager for keeping this moving with mailings and maintaining critical documentation Barb Lefebvre

• Sewer Commissioners who took initiative and personal time to get signatures that got Pratt area to meet 2/3rds requirement Dave Mac Donald and Mike Nault

• Wright-Pierce Engineering for an excellent and winning SRF PEF Kevin Olson

• Town Manager and BOS for your time, guidance and continued support

Lakeview/Pratt Sewer Extensions Overview Slide 9

Questions & Discussion

Thank you!

FY 2015 Budget SummaryPresented to BOSApril 8, 2014

Presented by:

Lunenburg Sewer Commission

Current Sewer Support Team

• Business Manager: Barb Lefebvre• DPW Director: Jack Rodiquenz• Commissioners:

Carl Luck Chairman Jay Simeone Vice Chairman Dave MacDonald Clerk Mike Nault Member Butch Bilotta Member Small Water Systems : Systems operations and maintenance contractor

Weston and Sampson: Primary Engineering Consultants

Many Thanks to this Hard Working and Dedicated Team

FY 14 Accomplishments• Finalized New IMA with Fitchburg

Secured new capacity to support current and new demands per CWMP Eliminated separate capital payments Rate equal to Fitchburg residents, No additional $1.65 adder unless justified/agreed

• Successful Outsourcing of Sewer Systems Maintenance System reliability improved, significantly less call outs Support is excellent and price/cost below FY 14 budget FY 15 price agreed at 2.5% increase

• FY 2014 revenues and cost running true to Balanced Budget• Continued I/I Reduction Program

Phase 2, house to house in process• Achieved 100% Grease Trap Permit Compliance

Reporting next challenge• Completed Lancaster Ave. Private Extension

Several new policies and lessons learned captured

John Fitch Capacity Increase Cost Share

Total Design Cost $333,708

Construction Cost $1,776,753

Total JFI Cost $2,110,461

Loan Payments

Design $26,241.96

Construction $112,440.69

Total Loan Payment $138,682.66

Lunenburg Share

Design flow 1,126,000 gallons / day

Lunenburg Share 151,000 gallons / day

% of project 13.41%

Total JFI annual debt $138,682.66

Lunenburg Share $18,597.76

Overview of Usage and Rates FY14 vs FY15

• Usage Rates Paid by LunenburgFY 14 FY 15

Leominster (per 100 cu. ft.) $4.574.80

Fitchburg $8.95 $7.30

• Rate to Lunenburg Users (per 100 cu. ft.) $11.50$11.50

• Total Number of Users/Connections 708 730 To Leominster 575 593 To Fitchburg 133

137

• Units with access not Connected 355333

• Total Units with Access 1,063 1,063

• Pratt and Lakeview Potential Users 81

SEWER ENTERPRISE ADJUSTED FY14

BUDGET PROPOSED FY15

BUDGET INCR/DECR OVER FY14

FINAL BUDGET

REVENUES      

User Charges $ 683,263.00 $ 709,753.00 $ 26,490.00

Connection Fees $ 22,500.00 $ 27,000.00 $ 4,500.00

Sewer Bank Fees   $ 7,440.00 $ 7,440.00

Penalties & Interest (incl. prior year pmts) $ 6,300.00 $ 8,000.00 $ 1,700.00

Drain Layer Fees $ 1,000.00 $ 1,000.00 $ -

Grease Trap Annual permit fees   $ 1,000.00 $ 1,000.00

Investment Income $ 1,550.00 $ 2,333.00 $ 783.00

Sewer Use Regs $0.00 $ - $ -

Highfield Capacity -Reserve Fund - one time pmt   $ 57,716.00  

Adjusted Total Revenues $ 714,613.00 $ 814,242.00 $ 99,629.00

FY 14 and FY 15 Budgeted Revenues Detail

FY 15 Cost Element as Percent of Total Costs

User Fees = 95% of Operating Revenues

FY 15 Key Budget Assumptions

• Addition of 22 new connections/users• No rate increase to Lunenburg customers• Outsource contract increase of 2.5%• No new rate increases from Fitchburg• Leominster rate increase assumption of 5% included in Budget• No extraordinary legal fees• Continuation of I/I reduction at roughly $35,000 in FY 15 • Addition of generator maintenance outsourcing/contract with

current operations company• No impact to Enterprise Fund with proposed extensions at

Lakeview and Pratt

FY 15 Budget Items to Note• No transfers from Retained Earnings for Operating Budget

BALANCED BUDGET • Retained earnings as of 7/1/13 were $471,785• John Fitch Highway Upgrade Treatment

Expected upfront income of $57,716 from Highfield capacity charge shown in FY 15 Revenue

$54,830 of this amount shown as cost, to be moved to separate account to be drawn on annually (working with Town and Fitchburg to simplify process)

$2,886 included in projected annual payment of $18,598 to Fitchburg This income is not reflected in “Operating Income” on prior slide

• Inflow and Infiltration Fee As this $7,440 is an I/I “Bank” that is restricted for use on I/I reduction, it is

not considered part of the “Operations Income” in analysis For the FY 15 budget we have reduced the planned costs of $35,000 for I/I

reduction by this amount

Questions & Discussion

Thank you!