PINE GROVE SEWER PROJECT (East Lyme, CT)
EAST LYME WATER & SEWER COMMISSION, SPECIAL MEETING, Tuesday, SEPTEMBER 30th, 2004
The East Lyme Water & Sewer Commission held a Special Meeting on Thursday, September 30, 2004 at the East Lyme Town Hall, 108 Pennsylvania Avenue, Niantic CT. Chairman Fraser called the meeting to order at 3:10 PM.
Following excerpted from History & Minutes
EAST LYME BOARD OF FINANCE
REGULAR MEETING MINUTES
Wednesday, OCTOBER 13th, 2004
Ms. Hansen asked that as they have a large number of people present for the Pine Grove sewers that they make a motion to move Section F. New Business a head of Section E. Reports on the agenda.
**MOTION (2)
Mr. Formica moved that Section F. New Business is addressed before Section E. Reports on the Agenda.
Mr. Leahy seconded the motion.
Vote was 6 – 0 – 0. Motion passed.
D. Delegations
Ms. Hansen called for delegations.
Dave Porter, 29 Cherry Street, Pine Grove, Niantic said that he is the President of the Pine Grove Homeowners Association. He said that he would give them an over view on the Pine Grove sewers to date. There are approximately 172 homeowners. In 1997 they petitioned the Town for sewers. The Town ran a survey in 1999 that came back positive for sewers. The Water & Sewer Commission hired Weston & Samson to do a study on the cost of the project. They came back with a $2.8M cost. There was tentatively scheduled a public hearing on the sewer project for April of 2000 however efforts for State funding to help with the project failed and the hearing was not held. In January of 2004 he gave a summary to the Pine Grove homeowners and they made a presentation to the Water & Sewer Commission. Another survey was sent out to Pine Grove residents and the results were 116 yes, 13 not now and 7 no. This showed that the overwhelming majority wanted sewers. On September 28, 2004 the Water & Sewer Commission held a public hearing on this issue. Due to a lack of quorum they could not make a decision to move forward. They held a Special Meeting on September 30, 2004 in the afternoon and voted to pass it along to the Board of Selectmen. On October 6, 2004 the Board of Selectmen approved the Pine Grove Sewers and sent it along to you, the Board of Finance. Some history on the Pine Grove property is that the area is make up of small lots of 50’ x 50’ – not much bigger than a 24’ x 24’ two-car garage. So, the septic systems are under garages and some are even in basements. Many systems have failed and require ‘after dark’ remedies where they dig a hole so there is someplace for it to go. Over the years they have seen diminishing sewer capacity due to the developers taking it. He said that he also knows of marginal systems where people can only flush once a day. They are also concerned with the condition of the river and the nitrogen level. They have had a lot of verbal support for this project and would like to ask the Board of Finance to approve this sewer project and move it along to the next step.
Bob Gadbois, 358 Boston Post Road said that this is why sewers came into this Town and this should have been done years ago. He said that he hopes that they do it.
F. New Business
a. Approve and forward a Special Appropriation in the amount of $3,500,000 ($3.5M) for the design and construction of sewerage system extensions and authorizing the issuance of $3,500,000 ($3.5M) bonds of the Town to meet said appropriation and pending the issuance thereof the making of temporary borrowings for such purpose.
**MOTION (3)
Ms. Maillett moved to approve and forward a Special Appropriation in the amount of $3,500,000 ($3.5M) for the design and construction of sewerage system extensions and authorizing the issuance of $3,500,000 ($3.5M) bonds of the Town to meet said appropriation and pending the issuance thereof the making of temporary borrowings for such purpose.
Mr. Leahy seconded the motion.
Ms. Maillett said that she made this motion for the Pine Grove sewer project for the homeowners and taxpayers there and she encourages her fellow Board members and taxpayers to vote for it. She noted that 20 years ago when she came to this Town that they had scallops to harvest and eat and today they have virtually none. Also 20 years ago they used to give scallop shell decorations at Christmas time and today they do not. She would like this project done for the people and the health of the river.
Mr. Formica asked what the assessment back to the homeowners and to the Town would be on the $3.5M bond issue.
Mr. Tricarico asked what the assessment would be.
Mr. Fraser said that he had a PowerPoint presentation on this topic that he would like to present to them that he presented to the Water & Sewer Commission and the Board of Selectmen. It would cover the history and basic facts that have brought them to where they are now.
The PowerPoint presentation noted that 172 homes on 36 acres would be connected to municipal sewers. There would be two pump stations. $3.5M is the funding that would be required at this time to the Town of East Lyme. Previous sewer benefit assessments were funded at 61% with 39% being picked up by the Town taxpayers. If this were approved by the Town taxpayers at a Special Town Meeting, they would also still be seeking grant monies. Without the Guard installing the main line up through the Camp, these costs would have been much higher. The intent of sewers is not to lead to over building, which then places a large impact burden on the schools and Town. The presentation next outlined the steps for approval and project planning and lastly showed pictures of very narrow and tight streets in the area that would require careful construction to try to avoid problems. What the Board of Finance has to determine is if the Town can afford this project and how it will effect the debt rating. The assessments should fall in the $10,500 - $12,000 range. This is in keeping with the most recent rate. The Broadway water line would also be replaced and some drainage improvements done prior to the final paving of the roads.
Ms. Hansen asked about the potential for State grants in light of the fact that they could not get them previously.
Mr. Fraser said that they just received the latest update and they are still too far down the list for grants. However, they will be going to a hearing in November, armed with pictures and information to try to get this moved up on the list.
Ms. Hansen asked about the difference between the $2.8M and the $3.5M current estimate.
Mr. Fraser said that the $2.8M was a conservative estimate some five years ago. The $3.5M accounts for inflation and will make sure that they have enough to cover the sandy soil conditions there, possibly having to move some utility poles and other issues that they could encounter. He added that they did not want to have to come back for money because they did not have enough to do the project right.
Ms. Hansen asked if they start the project, if they would still be eligible for the State grants.
Mr. Fraser said that by following the DEP guidelines for this project that they would be able to apply for grants even with the project in progress. They will be following the DEP program.
Mr. Formica asked if the Town share would be between $1.2M - $1.4M with the 60/40 split.
Mr. Fraser said that the actual figure would be determined at the time of the completion of the project. The debt will become long term debt and is paid for each year by a portion from the user assessments and from the Town taxpayers.
Mr. Formica asked if the $1.4M would be bonded over 20 years.
Mr. Fraser said that they would look at the $3.5M and some of the money would come from Water & Sewer. The increase in the budget would not be seen until the bonding is actually done. He also added that they are still trying to collect $500,000 owed to them from the High School project and $1M that is due to them from the new Middle School project. These issues have not only been a nightmare for Mr. Funke but they have tied our hands and limited our short-term borrowing ability.
Vote was 6 – 0 – 0. Motion passed.
Mr. Leahy commented that last year the State approved four septic systems on the coast and that they have new septic alternatives. He asked Mr. Porter if he was familiar with them.
Mr. Porter said that they are special systems from what he has read and that they have to have space and land and in Pine Grove they have nothing. He said that there was one woman on Wells Street who had to put in an engineered system on her lot that cost her $10,000. Her system will have to be closed out when the sewers come so she will have thrown the $10,000 away – however, she voted for the sewers. They are trying to avoid that type of situation as it is easier to move forward with sewers and they will continue with ‘their midnight fixes until they can get the shovels going.’
EAST LYME WATER & SEWER COMMISSION, SPECIAL MEETING, Tuesday, SEPTEMBER 30th, 2004
The East Lyme Water & Sewer Commission held a Special Meeting on Thursday, September 30, 2004 at the East Lyme Town Hall, 108 Pennsylvania Avenue, Niantic CT. Chairman Fraser called the meeting to order at 3:10 PM.
Following excerpted from History & Minutes
EAST LYME BOARD OF FINANCE
REGULAR MEETING MINUTES
Wednesday, OCTOBER 13th, 2004
Ms. Hansen asked that as they have a large number of people present for the Pine Grove sewers that they make a motion to move Section F. New Business a head of Section E. Reports on the agenda.
**MOTION (2)
Mr. Formica moved that Section F. New Business is addressed before Section E. Reports on the Agenda.
Mr. Leahy seconded the motion.
Vote was 6 – 0 – 0. Motion passed.
D. Delegations
Ms. Hansen called for delegations.
Dave Porter, 29 Cherry Street, Pine Grove, Niantic said that he is the President of the Pine Grove Homeowners Association. He said that he would give them an over view on the Pine Grove sewers to date. There are approximately 172 homeowners. In 1997 they petitioned the Town for sewers. The Town ran a survey in 1999 that came back positive for sewers. The Water & Sewer Commission hired Weston & Samson to do a study on the cost of the project. They came back with a $2.8M cost. There was tentatively scheduled a public hearing on the sewer project for April of 2000 however efforts for State funding to help with the project failed and the hearing was not held. In January of 2004 he gave a summary to the Pine Grove homeowners and they made a presentation to the Water & Sewer Commission. Another survey was sent out to Pine Grove residents and the results were 116 yes, 13 not now and 7 no. This showed that the overwhelming majority wanted sewers. On September 28, 2004 the Water & Sewer Commission held a public hearing on this issue. Due to a lack of quorum they could not make a decision to move forward. They held a Special Meeting on September 30, 2004 in the afternoon and voted to pass it along to the Board of Selectmen. On October 6, 2004 the Board of Selectmen approved the Pine Grove Sewers and sent it along to you, the Board of Finance. Some history on the Pine Grove property is that the area is make up of small lots of 50’ x 50’ – not much bigger than a 24’ x 24’ two-car garage. So, the septic systems are under garages and some are even in basements. Many systems have failed and require ‘after dark’ remedies where they dig a hole so there is someplace for it to go. Over the years they have seen diminishing sewer capacity due to the developers taking it. He said that he also knows of marginal systems where people can only flush once a day. They are also concerned with the condition of the river and the nitrogen level. They have had a lot of verbal support for this project and would like to ask the Board of Finance to approve this sewer project and move it along to the next step.
Bob Gadbois, 358 Boston Post Road said that this is why sewers came into this Town and this should have been done years ago. He said that he hopes that they do it.
F. New Business
a. Approve and forward a Special Appropriation in the amount of $3,500,000 ($3.5M) for the design and construction of sewerage system extensions and authorizing the issuance of $3,500,000 ($3.5M) bonds of the Town to meet said appropriation and pending the issuance thereof the making of temporary borrowings for such purpose.
**MOTION (3)
Ms. Maillett moved to approve and forward a Special Appropriation in the amount of $3,500,000 ($3.5M) for the design and construction of sewerage system extensions and authorizing the issuance of $3,500,000 ($3.5M) bonds of the Town to meet said appropriation and pending the issuance thereof the making of temporary borrowings for such purpose.
Mr. Leahy seconded the motion.
Ms. Maillett said that she made this motion for the Pine Grove sewer project for the homeowners and taxpayers there and she encourages her fellow Board members and taxpayers to vote for it. She noted that 20 years ago when she came to this Town that they had scallops to harvest and eat and today they have virtually none. Also 20 years ago they used to give scallop shell decorations at Christmas time and today they do not. She would like this project done for the people and the health of the river.
Mr. Formica asked what the assessment back to the homeowners and to the Town would be on the $3.5M bond issue.
Mr. Tricarico asked what the assessment would be.
Mr. Fraser said that he had a PowerPoint presentation on this topic that he would like to present to them that he presented to the Water & Sewer Commission and the Board of Selectmen. It would cover the history and basic facts that have brought them to where they are now.
The PowerPoint presentation noted that 172 homes on 36 acres would be connected to municipal sewers. There would be two pump stations. $3.5M is the funding that would be required at this time to the Town of East Lyme. Previous sewer benefit assessments were funded at 61% with 39% being picked up by the Town taxpayers. If this were approved by the Town taxpayers at a Special Town Meeting, they would also still be seeking grant monies. Without the Guard installing the main line up through the Camp, these costs would have been much higher. The intent of sewers is not to lead to over building, which then places a large impact burden on the schools and Town. The presentation next outlined the steps for approval and project planning and lastly showed pictures of very narrow and tight streets in the area that would require careful construction to try to avoid problems. What the Board of Finance has to determine is if the Town can afford this project and how it will effect the debt rating. The assessments should fall in the $10,500 - $12,000 range. This is in keeping with the most recent rate. The Broadway water line would also be replaced and some drainage improvements done prior to the final paving of the roads.
Ms. Hansen asked about the potential for State grants in light of the fact that they could not get them previously.
Mr. Fraser said that they just received the latest update and they are still too far down the list for grants. However, they will be going to a hearing in November, armed with pictures and information to try to get this moved up on the list.
Ms. Hansen asked about the difference between the $2.8M and the $3.5M current estimate.
Mr. Fraser said that the $2.8M was a conservative estimate some five years ago. The $3.5M accounts for inflation and will make sure that they have enough to cover the sandy soil conditions there, possibly having to move some utility poles and other issues that they could encounter. He added that they did not want to have to come back for money because they did not have enough to do the project right.
Ms. Hansen asked if they start the project, if they would still be eligible for the State grants.
Mr. Fraser said that by following the DEP guidelines for this project that they would be able to apply for grants even with the project in progress. They will be following the DEP program.
Mr. Formica asked if the Town share would be between $1.2M - $1.4M with the 60/40 split.
Mr. Fraser said that the actual figure would be determined at the time of the completion of the project. The debt will become long term debt and is paid for each year by a portion from the user assessments and from the Town taxpayers.
Mr. Formica asked if the $1.4M would be bonded over 20 years.
Mr. Fraser said that they would look at the $3.5M and some of the money would come from Water & Sewer. The increase in the budget would not be seen until the bonding is actually done. He also added that they are still trying to collect $500,000 owed to them from the High School project and $1M that is due to them from the new Middle School project. These issues have not only been a nightmare for Mr. Funke but they have tied our hands and limited our short-term borrowing ability.
Vote was 6 – 0 – 0. Motion passed.
Mr. Leahy commented that last year the State approved four septic systems on the coast and that they have new septic alternatives. He asked Mr. Porter if he was familiar with them.
Mr. Porter said that they are special systems from what he has read and that they have to have space and land and in Pine Grove they have nothing. He said that there was one woman on Wells Street who had to put in an engineered system on her lot that cost her $10,000. Her system will have to be closed out when the sewers come so she will have thrown the $10,000 away – however, she voted for the sewers. They are trying to avoid that type of situation as it is easier to move forward with sewers and they will continue with ‘their midnight fixes until they can get the shovels going.’