2.22.16 BOS Meeting Continued...
Shedding some light on the Water Department Special Town Meeting March 21, 2016
The Ladder Hill water tank on Johnson Ave is 55 years old. The estimated cost to repaint the inside of that water tank is $550,000. It was painted 15 years ago. The DEP is insisting that this water tower be repaired as soon as possible or fines will be assessed.
The cost for a concrete tank to replace the tank on Ladder Hill is $1.23 million dollars. The useful lifespan of a concrete water tank has been estimated to be between 65-100 years.
The water department can't borrow money for this project. Only the town, with town meeting approval, can borrow money. [No answer on impact of no town bond rating on interest rate...Town does NOT need a bond rating to be eligible for USDA loans ] The water department will pay for the cost of the special town meeting.
The USDA has agreed to fund this project. It will be the fourth USDA loan for the water department. The last loan was for a period of 40 years.
The cost to repay this loan, if successfully voted on at the STM on March 21, 2016, will be covered by the water ratepayers. The last exorbitant water rate increase was 9 %, which at this time is projected to cover the cost of an additional water department employee and this project. If there are any unforeseen cost overruns, the commissioners can just raise the water rates again to cover those costs.
The need for another STM at this point is that the USDA loan is time sensitive. The application for this USDA loan is the second week in April. The necessity of the timing of this loan is the reason for the Special Town Meeting.
The Water department has had its legal counsel draft the language for this warrant article.
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Another article will appear on the STM warrant - apparently Bond Counsel for the town has an issue with the wording of the town meeting article for the additional $500,000 for schematic design of the elementary school.
Article 6 March 29, 2014 reads:
"To meet this appropriation the Narragansett Regional School District, with the approval of the Templeton Board of Selectmen, is authorized to borrow said amount under and pursuant to M.G.L. Chapter 44, ot pursuant to any other enabling authority. ..."
See above- ONLY the Town of Templeton can do the borrowing for the Elementary School Project. So why can't this wait until the May Annual Town Meeting? Maybe "the powers that be" realize that if people don't vote to support this word change, the project may be in jeopardy?
The irony is that people, including former selectmen, asked the question repeatedly: "Is this a town project or a school department project? " and "Who is in control of the money for this project and the MSBA reimbursements?"
Crickets...
More later ...
The ladder hill/Johnson ave Steel tank was built in 1957. South road was in 1950.
ReplyDeleteLast painted in 1996 and 20 years ago. The requirement is every 20 years rust and coatings are needed no matter what.
The report shows the data and it's hard for the water management to say this is a surprise.The surprise i find is the last water increase was enough to pay the extra expansion of the work force and the cost of the tank loan payments.So if they didn't raise the water rates/service charges for the shortfalls in revenue how is it they have all the extra monies to do both things now? Or more to the point do they?
Are they setting us up for a second big rate increase when the books look like they are in poor shape and not enough to pay the bills again and have our vendors wait for 3 months to be paid. Funny how all the money problems just went away and we are all fixed now and can afford the extra costs without any increases.
Don't forget we told you so!
AND THEY WILL RAISE YOUR RATES TO PAY FOR THIS TOO.
In 5 years or less the south road tank will need the same as the ladder hill tank and then what? How much to increase for that.
What about the Hospital hill road tank last paint original 2001 that needs paint in just 4 years.
Funny how they just only talk about the tank on ladder hill.
That water report does not list the last time the new tank was cleaned and inspected.
So does it need the inside cleaned and inspected also to tell if the condition is poor or it needs to be repainted or replaced.Larger tanks are a higher cost to maintain and paint. The cost to paint the newer tank is shown to be a bit higher at 870,000.00 in 2013 numbers. So are we being led to the bank for a loan every time we turn around.
Does the math for replace or paint add up for all three tank jobs the same?
If we don't ask why should we care. I hope the people in town have the same thoughts that i do and ask questions when we have the STM for this and the money for the school.
Without the questions and a better understanding of the needs of our towns water department and infrastructure we are sure to be taken to the cleaners over and over again. The same thing is going on with our electric rates and when our customers charge went to 3.00 from 4.00 it was only when the hand in the cookie jar was pointed out the management reduce the overcharges. The time has come to ask questions and get some answers before the meeting so people will know the truth about the needs and the overcharges so we can get the better rates we all deserve now.
A customer service charge of 2.00 would be a good start for the electric bills.With oil and solar power costs lower for the TMLWP we should be afforded a better rate without begging for it. How much of a raise did the commissioners vote for themselves?
All the information is on pg.2-13 and General manager John Driscoll didn't think anyone would ever look at the water improvement plan contract with Tighe&Bond. Another OBTUSE comment made by John Driscoll. If i can see this runaway train coming why don't the boys at the meeting table ever get it?
They laughed at me suggesting a new tank over a repainted one and then want to do that.
I would pull a Trump and fire the top two as soon as the contracts for their employment was up for not leveling with the owners of the system that provides their employment. There's over 250,000.00 alone
I'll bet when i finish talking at this meeting they won't be laughing at me anymore.
Enjoy your raises commissioners. Time for some LTE thoughts.