The Point O’Woods Association, Incorporated

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 RateProperty 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 allThat each single-family dwelling be classified as a unitThat the benefit assessment be assessed on each unitThat all property owners pay for their own connectionsThat 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 $10630,000 GPD $150 $54,750 $12840,000 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 $10,345,000

$2,922,000 $7,423,00 $17,343 $20,811

$1,041/yrEast 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 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