Dighton Water District192 Williams St.

No. Dighton, Ma 02764

Patrick MengesPaul JolySue Medeiros

COMMISSIONERS

Caro~A. StevensTREASURER

THE FOLLOWING MEETING WAS VIDEO-RECORDED

October 18,2012

Pledge of Allegiance

Chairman of the Board of Commissioners, Patrick Menges declared a recess at5:30 P.M. to hear whether or not Commissioner, Sue Medeiros was en route.Patrick Menges mentioned let the record show Commissioner Medeiros is absent,and Commissioner Menges is unwilling to participate without videotaping asrequired by a vote of the people. Second recess at 5:47 P.M. Patrick Mengesreconvened the meeting at 5:57 P.M. Due to trouble with the video recorder at thebeginning the Board went to great lengths to resolve it and thanks to KarenO'Connor the trouble was resolved.

Meetings With Scheduled GuestsStephen DeFrancesco of AECOM, Inc., and Mark Abrahams and Matthew

Abrahams of the Abrahams GroupRe: Rates StudyAdopt Rates

Patrick Menges mentioned in attendance were Stephen DeFrancesco of AECOM,Inc., Mark Abrahams and Matthew, and Elizabeth Zaleski of the AbrahamsGroup. Mark and Matthew Abrahams presented the results ofthe modified ratestudy concerning the setting of rates. Once done Commissioners will engage inquestions and discussion and then proceed to adopt water rates. Mark Abrahamsmentioned doing the accounting first leaving way for Commissioner Medeiros tohear the rates. Patrick Menges mentioned an alteration of this agenda

disadvantages citizens who wish to come to hear things in the order that they arepresented, we are bound by the opening meeting law the agenda has not beenamended. Patrick Menges entertained a motion to vote to amend the agenda,seconded, Clerk of the Board of Commissioners, Paul Joly, all were in favor.

Update on FY 12 Closing and Balance Sheet, etc .. ./Elizabeth Zaleski

Elizabeth Zaleski consultant with the Abrahams Group gave an update on thebooks and the closing of Fiscal Year 12. Elizabeth Zaleski mentioned the bookswere easily read, easily understandable, I think your staff should be commendedon all the work they've done in this last year. It made a huge difference. Freecash certification was submitted to D.O.R. Finance Committee Chairman, KarenO'Connor asked for an explanation of the Capital Improvement account.Elizabeth Zaleski mentioned the Capital Project is money when you have pipes ornew people installing you put the money into Capital Improvement and you canfund future capital projects should a pipe break or should a pump station go downthat's why you have Capital Improvement it's like a rainy day fund so you havemonies there so you can spend that in the future for when you have issues.Elizabeth Zaleski mentioned a municipality doesn't follow I.R.S. rules it followsthe Uniform Massachusetts Accounting Standard.

Rates Study

Mark Abrahams gave an updated on the different scenarios. There were ninedifferent scenarios. Patrick Menges mentioned he liked Scenario 2. StephenDeFrancesco mentioned scenario 2 relies on taking funds from CapitalImprovement and Free Cash to subsidize the budget. Paul Joly mentioned he wasnot in favor of taking money out of those two accounts to subsidize the operation,if we take a bond it costs the people in the District more money, paying moreloans every time we turn around. Mark Abrahams mentioned, assuming you useall that money in FY 13 or carry over to the next fiscal year the Capital Programfund balance is zero, if you don't spend some of that money than that money maybe available for other Capital Improvements so basically whatever was left end offiscal 2012 was then appropriated for Capital for that amount of money so if it'sall spent for FY13 there would be no reserves unless you get free cash dependingon what you wanted to do with that Free Cash to be certified by D.O.R. for FY 12.Mark Abrahams mentioned reserves were being depleted so what you expressedyou were not in favor of using Capital Project fund monies to fund the budgetmore than likely will not exist at the end of this fiscal year because all of thosemonies have been designated, reserved for specific Capital Projects as of rightnow it's reserved for that purpose. Patrick Menges mentioned disposing ofSomerset Ave. and depositing the monies in that account once it is sold. Paul Jolymentioned what the Commissioners don't want to do is just keep hitting thepeople in the District. Mark Abrahams mentioned Capital monies pay for Capitaland you have several projects to act on, from that prospective it would be hard for

you to return Capital monies and then ask for more Capital monies to continuallyfund it. Karen O'Connor mentioned tax reduction should come out of free cash.Patrick Menges mentioned the existence of any reserves is an unspoken influenceon negotiations and I will go no further down that road. I am in favor of returningto the people what we do not spend. Brief recess Board reconvened at 7:56 P.M.Rate discussion continued.

Patrick Menges entertained a motion that the Commission endorse the principlenot to put into effect, endorse the principle of going from four tiers to three tiersof residential users and setting ceiling first tier of residential use at 12,000 andapply principle of pro-rating on transition between tiers in all use categories,residential, semi, and industrial, motion in principle and that we ask the Abrahamsgroup to furnish us figures as revenue yield based on current billing gallon ages.Paul Joly added once they have compiled all the numbers we meet once again togo over it and we hope we will have a three person Board. Patrick Mengesagreed. Patrick Menges mentioned motion is made Paul Joly replied "yes",seconded, Patrick Menges, all were in favor. Stephen DeFrancesco mentioneddefine what you mean by pro-rating. Patrick Menges entertained a motion thatthey further clarify previous vote by furnishing the following definition of pro-rating, when a customer by increased use moves from one tier to a higher tier, pro-rating means that all of his water use from O-to high use will be billed at thehigher tier, all were in favor of the definition.

Meeting with Gary WillettePossible Executive Session M.G.L. CHAPTER 30A Subsection 21 (a) 1

Employee Gary Willette requested an Executive Session.

Patrick Menges entertained a motion the Board go into Executive Session underChapter 30A Subsection 21 (a) 1, motion, Paul Joly, seconded, Patrick Menges,motion carried. Board will resume in public session for public input beforeadjournment. Paul Joly called the roll, Commissioner Menges aye, CommissionerMedeiros absent, Commissioner Joly aye. Motion for Executive Session passedand therefore Patrick Menges declared the Board was in Executive Session.

Patrick Menges entertained a motion to end Executive Session at 9:02, seconded,Paul Joly. Roll call, Commissioner Menges, aye, Commissioner Joly, aye.

Public Input

None

Patrick Menges entertained a motion to adjourn at 9:03 P.M., so moved, PaulJoly, seconded, Patrick Menges, all were in favor.

· Attendance:Those III

Patrick MengesPaul JolyMark AbrahamsMatthew Abrah~sElizabeth Zaleski

h DeFrancescoStep en .Charles CestodioCarol StevensTina Bragga

Joe Pimento Video-Recording .//O'Connor - 1 "/ ,Karen .'j

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