Water and Sewer Systems: WPCA Benefit Assessment and Pre-Construction Public Hearing

WPCA BENEFIT ASSESSMENT, PRE CONSTRUCTION HEARING AGENDA 2008 Sewer and Water UpdateBill Lacourciere Overview of Construction ProjectRob Prybylo Review of Proposed BenefitBill Lacourciere Assessment Method Estimated Costs Q&A with Panel Rob Prybylo – RFP Engineering, LLC Norbert Church, Esq. – Counsel Chris Kerin – Appraiser, Kerin and Kerin WPCA Members: Kathy AldridgeKathy Mckeough Marty GuyerMark Stankiewicz Jack Harney

FY 2008 in Review Engineering Design Completed DEP, DPH, CWC, VE reviews completed Construction bids received Benefit assessment method proposed Project approved and funded by the CT Bond Commission

FY 2008 in Review Intermunicipal Agreement Completed One agreement – East Lyme Established interconnection fee of $1,026,000 User fee same as East Lyme customer: $5 per 1,000 GPD Fee for using State loaned capacity if and when necessary - $5 per 1,000 GPD Pay for actual flow used instead of flat rate

FY 2008 in Review Improved Communications 4 Benefit Assessment workshops 11 WPCA meetings Annual Meeting Public Hearing Joint BOG/WPCA meetings Monthly newsletters Monthly FAQs WPCA website

FY 2008 in Review Construction Permits Approved: Old Lyme Inland Wetlands and Watercourses Commission East Lyme Conservation (wetlands) Commission DOT approval for Route 156 Amtrak for construction beneath railroad trestle Old Lyme Zoning Commission (pending)

Construction Schedule Paganelli Construction Co. has 2 years to complete the project No work will begin within Point O’Woods until after Labor Day, 2008 We anticipate that Paganelli will try to complete as much work as possible during “off seasons”

Sewer System Work will start with mains in streets and pump stations Installation of individual grinder pumps and lateral sewers to individual properties will be installed only after mains have been installed in the streets Curb-to-Curb overlay pavement will be installed towards the end of the project after pipelines have been installed

Sewer System Working hours will be from 7:30 AM until 4:00 PM Detours will be necessary to divert traffic around construction crews We will post and update construction schedules on the WPCA’s website (

Water System Paganelli Construction Co. will install the water mains in the street in the same trench as the sanitary sewers. All new water mains will be installed at frost-proof depths Paganelli will install new services from the mains to each current customer’s property and install a new meter pit at a frost-proof depth for each existing customer

Water System Paganelli will then connect from the meter pit to the existing water service at a point near the street Paganelli WILL NOT replace the existing pipe from the meter pit to the house Temporary water services will be maintained during construction to enable existing system to be taken out of service

Water System Only brief outages are anticipated as houses are connected from existing mains to temporary system and from temporary system to new mains Most/all of this work should be completed during off- season periods when most properties are not occupied

Grinder Pumps The Association will own, install, and maintain grinder pumps and pressure sewer from the pump to the main in the street Property owners will be responsible for connecting from the house to the grinder pump and to bring electricity to the electrical panel Some properties may need to upgrade their electric panel to accommodate grinder pumps Notification letters have been sent to property owners that will receive grinder pumps asking them to contact Doug Hill at RFP Engineering

Grinder Pumps We will meet with property owners at their house to discuss best location for pump and pipes Property owners will need to execute an agreement with the Association giving the Association the right to go onto property to install and maintain the pumps and pipes The WPCA will be contacting property owners with grinder pumps soon to begin this process

Blasting Unfortunately, much of the project will require blasting to remove ledge rock Paganelli Construction Co. is required to hire a qualified, licensed blaster to oversee and perform all blasting Paganelli’s blaster will be required to perform a Pre- Blast survey of each building that is within 250 feet of where blasting will be conducted.

Blasting Blasting will only be allowed between the hours of 9 AM and 3 PM All blasting work will be under the purview of the local fire marshal's office

Easements We need to obtain easements from the owners of 5 properties along Champion & Hillcrest Roads Water and sewer services will be installed behind the existing sea wall Sewer service will be by gravity The WPCA will be contacting these property owners shortly to begin the process

Communications Doug Hill, P.E. will serve as Resident Engineer during construction and should be the first point of contact for construction-related issues He will have an office trailer in or near Point O’Woods His contact information will be made available on the POW WPCA website as soon as it is established

Communications Please check often to receive important bulletins and work schedule updates.

Benefit Assessment Method Goal: Determine the most equitable benefit assessment method for our community which is most defensible in court

Benefit Assessment Method Process: Four public workshops Nine WPCA meetings Surveyed various communities with similar conditions Consultants Real Estate Experts Appraisers Legal Experts BOG survey of the community Considered several benefit assessment methods

Benefit Assessment Method Methods Considered: Flat rate (evenly divided amongst all of us) Property value Front footage, acreage Usage Number of bedrooms Combinations of the above

Benefit Assessment Method All but flat rate and property value methods were ruled out because: Uniquely, POW properties are all single-family homes No commercial properties No industrial properties No farms No municipal buildings No method of measuring usage at this time

Benefit Assessment Method Two methods best met our objectives: Flat Rate Property Assessment Property Assessment: Preferred by majority of respondents to BOG survey Least defensible legally – there would be cases where the benefit assessment would exceed the value of the benefit derived from the project

Benefit Assessment Method Property Assessment (continued): Most disproportionate – some properties would pay over $50,000 and others less than $15,000 and at times the derived value would be reversed Moving target – a presently unimproved property could be greatly improved following construction but pay a disproportionately small assessment.

Benefit Assessment Method Flat Rate: Met expectations of most property owners of $24,000 per property Method used alone or in some comination by most communities Most defensible in court – highly unlikely that a property would be assessed higher than the value derived from the project Whether communities we spoke with used it solely or not, most strongly recommended it because it is simple, fair, and defensible

Benefit Assessment Method Flat Rate (continued): Recommended by counsels Norbert Church and James Mattern and our appraiser, Chris Kerin Method most easily managed by a small, volunteer community

Benefit Assessment Method Appraisal Report: Average value derived from the sewer and year-round water project is $70,000 Benefit derived could be inverse from benefit assessed Virtually guarantees that that a flat rate method could not be legally defeated in court

Benefit Assessment Method Legal Opinion: It is reasonably probable that a seasonal property would be converted to year round occupancy with year round sewer and water available Flat rate was most legally defensible method

Benefit Assessment Method Grinder Pumps: Use of grinder pumps saves us all millions of dollars Their proper function is critical to the overall efficacy of the system; therefore, they should be owned, installed and maintained by the POW Association They are an inconvenience to the property owner Have to pay for electricity to operate Have to provide POW an easement for access Compensation: POW pays for grinder pump and its installation POW maintains the grinder pump POW pays for cost of any connection that exceeds $8,000

Benefit Assessment Method PROPOSAL: The WPCA proposes that the benefit assessment method be flat rate for all That each single-family dwelling be classified as a unit That the benefit assessment be assessed on each unit That all property owners pay for their own connections That the maximum cost a property owner will pay for the connection of a grinder pump to the street is $8,000

Annual User Fees (Entire System) Annualized Avg. Daily a Cost of $5/1,000 GPD Daily Cost Annual Cost Cost per Unit 25,000 GPD$125$45,625$106 30,000 GPD$150$54,750$128 40,000 GPD$200$73,000$ ,000 GPD$500$182,500$426

Other Costs ExpenseRangeAverage Per Unit One Time Connection Costs $1,000 - $8,000$2,500 Association’s Annual Maintenance Expense $10,000 - $20,000$23 - $47/year

DescriptionCost State Grants & Other Funds Net Cost to Association Cost per Unit Cost/Unit/ 2%, 20 Years Construction Including Technical Services, Design Costs $9, 290,000 Legal, Admin. & Other $345,000 Contingency$530,000 Interest$180,000 Subtotal$10,345,000$2,922,000$7,423,00$17,343 $20,811 $1,041/yr East Lyme Connection $1,026,000 Total$11,371,000$19,741 $23,689 $1,184/yr

Cost To Homeowners for Water, Sewers and “New” Roads: $17,343

Next Steps Gravity Sewer Connections: The WPCA is working on a plan to enable homeowners to use a pre-selected/pre-qualified contractor at a pre- established price Policies: In the coming months, the WPCA will be establishing several new policies: Connection Policy (who, how, and when) Sewer Use Charge Policy

Next Steps Meetings with Property Owners: Grinder Pump Properties Decide on best location for grinder pump and pipe Execute agreement Gravity Sewer Properties Decide on best location for lateral sewer Blast Area Properties Schedule time for pre-blast survey

Summary Design is Complete Bids are in and they are low State monies have been set aside Grant and Loan applications are pending East Lyme agreement is completed Permits are complete except one: Old Lyme Zoning Benefit Assessment method has been proposed

THANK YOU!!