Laserfiche WebLink
3. Discussion on rate study. <br />Jared informed the Commission that he wants to make it clear that the rate study is not <br />completed and nothing has been approved. They are evaluating every scenario and once a <br />decision has been made there will have to be a Public Hearing. <br />He gave a presentation starting with an explanation on how the Department will operate. <br />He stated that the Department will be basically operating as a private business within the Town, <br />with some restrictions, through the Enterprise Fund. All billing and revenue will remain within <br />the Enterprise Fund. It was described in detail how this type of operation will affect the sewer <br />rate as well as what authority the Sewer Commission will have moving forward. <br /> <br />Jared went on to state that the Department has several areas that they have to worry about <br />funding in order to operate. He stated that there is a lot of maintenance that goes into the <br />collection system. He said staffing is another area. They are still working on whether they are <br />going to go with Contract Ops or Town Personnel. It was stated that a necessary vac truck will <br />be contracted out. Emergency services could be a contracted excavation company that will be <br />on call in the event of a pipe main break. <br /> <br />Jared presented on different types of billing methods stating that the variable-rate billing <br />system takes the actual consumption into account. Jared said this is a very fair method of <br />billing. <br /> <br />Jared stated that the tiered-rate billing system is similar to the variable-rate billing system. It <br />begins with a base rate and as you consume more, you pay more. If they want to pay less, a <br />consumer would reduce the use. Jared said this method can become very tricky for the <br />homeowner. <br /> <br />Jared stated that the fixed-rate billing system is commonly used. Two Towns in the area that <br />use it are Harwich and Edgartown. Some base the billing on drains and others base it on <br />fixtures. Mr. Meader stated that this billing system simple and transparent considering the <br />Town is dealing with a system that is not yet up and running. <br /> <br />Mr. Lyons inquired about the rates in Chatham and other Cape Cod towns and Jared said the <br />cost in Chatham for sewer is $636.50 average annual cost per property and is the lowest on <br />Cape Cod. The highest being Provincetown at $1,390.95/yr. The average sewer cost on Cape <br />Cod and the Islands is $961.24/yr. The average annual cost in Falmouth is $842. The average <br />annual cost in Barnstable is $673.20. All of these Towns are on a variable rating system. <br />It was stated that an IA system average cost is approximately $1,200/yr. <br />Jared said that the Mass Water Resource Authority’s annual report states that the average <br />annual cost statewide is $960.46 sewer cost. <br /> <br />Mr. Lyons suggested that a workable rate be investigated and then recommended. <br />4 <br /> <br /> <br />