Water and Sewer Systems:WPCA Benefit Assessment and Pre-Construction Public Hearing
WPCA BENEFIT ASSESSMENT, PRE CONSTRUCTION HEARING
AGENDA
2008 Sewer and Water Update Bill Lacourciere Overview of Construction Project Rob Prybylo Review of Proposed Benefit Bill Lacourciere Assessment Method Estimated Costs Q&A with Panel
Rob Prybylo – RFP Engineering, LLCNorbert Church, Esq. – CounselChris Kerin – Appraiser, Kerin and KerinWPCA Members:
Kathy Aldridge Kathy MckeoughMarty Guyer Mark StankiewiczJack Harney
FY 2008 in ReviewEngineering Design Completed
DEP, DPH, CWC, VE reviews completedConstruction bids receivedBenefit assessment method proposedProject approved and funded by the CT Bond
Commission
FY 2008 in ReviewIntermunicipal Agreement Completed
One agreement – East LymeEstablished interconnection fee of $1,026,000User fee same as East Lyme customer: $5 per
1,000 GPDFee for using State loaned capacity if and when
necessary - $5 per 1,000 GPDPay for actual flow used instead of flat rate
FY 2008 in ReviewImproved Communications
4 Benefit Assessment workshops11 WPCA meetingsAnnual MeetingPublic HearingJoint BOG/WPCA meetingsMonthly newslettersMonthly FAQsWPCA website
FY 2008 in ReviewConstruction Permits Approved:
Old Lyme Inland Wetlands and Watercourses Commission
East Lyme Conservation (wetlands) Commission
DOT approval for Route 156Amtrak for construction beneath railroad
trestleOld Lyme Zoning Commission (pending)
Construction SchedulePaganelli Construction Co. has 2 years to
complete the projectNo work will begin within Point O’Woods
until after Labor Day, 2008We anticipate that Paganelli will try to
complete as much work as possible during “off seasons”
Sewer SystemWork will start with mains in streets and
pump stationsInstallation 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 SystemWorking hours will be from 7:30 AM until
4:00 PMDetours will be necessary to divert traffic
around construction crewsWe will post and update construction
schedules on the WPCA’s website (www.point-o-woodswpca.com)
Water SystemPaganelli 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 SystemPaganelli 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 SystemOnly 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 PumpsThe 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
BlastingUnfortunately, much of the project will
require blasting to remove ledge rockPaganelli 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.
BlastingBlasting will only be allowed between the
hours of 9 AM and 3 PMAll blasting work will be under the purview of
the local fire marshal's office
EasementsWe 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 gravityThe WPCA will be contacting these property
owners shortly to begin the process
CommunicationsDoug 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
CommunicationsPlease check www.point-o-woods.com 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 MethodProcess:
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 MethodMethods Considered:
Flat rate (evenly divided amongst all of us)Property valueFront footage, acreageUsageNumber of bedroomsCombinations of the above
Benefit Assessment MethodAll but flat rate and property value methods
were ruled out because:Uniquely, POW properties are all single-family
homesNo commercial propertiesNo industrial propertiesNo farmsNo municipal buildingsNo method of measuring usage at this time
Benefit Assessment MethodTwo methods best met our objectives:
Flat Rate
Property Assessment
Property Assessment:Preferred by majority of respondents to BOG surveyLeast defensible legally – there would be cases where the benefit assessment would exceed the value of the benefit derived from the project
Benefit Assessment MethodProperty 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 MethodFlat 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 MethodFlat 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 MethodAppraisal Report:
Average value derived from the sewer and year-round water project is
$70,000Benefit derived could be inverse from benefit
assessedVirtually guarantees that that a flat rate
method could not be legally defeated in court
Benefit Assessment MethodLegal 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 MethodGrinder Pumps:
Use of grinder pumps saves us all millions of dollarsTheir 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 Use
@ a Cost of $5/1,000 GPD
Daily Cost
AnnualCost
Cost per Unit
25,000 GPD $125 $45,625 $106
30,000 GPD $150 $54,750 $128
40,000 GPD $200 $73,000 $171
100,000 GPD
$500 $182,500 $426
Other Costs
Expense Range Average Per Unit
One Time Connection
Costs
$1,000 - $8,000 $2,500
Association’s Annual
Maintenance Expense
$10,000 - $20,000
$23 - $47/year
Description
CostState
Grants & Other Funds
Net Cost to
Association
Cost per Unit
Cost/Unit/ Year @ 2%, 20 Years
Construction Including Technical Services, Design Costs
$9, 290,000
Legal, Admin. & Other
$345,000
Contingency
$530,000
Interest $180,000
Subtotal$10,345,0
00$2,922,00
0$7,423,00 $17,343
$20,811$1,041/yr
East Lyme Connection
$1,026,000
Total$11,371,0
00$19,741
$23,689$1,184/yr
Cost To Homeowners for Water, Sewers and “New” Roads:
$17,343
Next StepsGravity 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 StepsMeetings 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
SummaryDesign is CompleteBids are in and they are lowState monies have been set asideGrant and Loan applications are pendingEast Lyme agreement is completedPermits are complete except one: Old Lyme
ZoningBenefit Assessment method has been
proposed