Five Corners Sewer Phase II Betterment Update / Workshop Easton - - PDF document

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Five Corners Sewer Phase II

Betterment Update / Workshop

Easton Sewer Commissioners August 10, 2020

Welcome!

Tonight's Topics:

• 1. Background & Timeline
• 2. Project Costs & Estimated Betterment Update
• 3. Cost Categories for Property Owners
• 4. Parcel Owner Cash Flow Timeline
• 5. Immediate Next Steps

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• 1. Project Background & Timeline

May 2010: Annual Town Meeting – voters adopt Sewer District May 2015: Annual Town Meeting - Design and IMA Appropriation

• Aug. 2015:

IMA executed / Sewer Mitigation funds the cost of Phase 1 Construction May 2018: Annual Town Meeting – $13.5M Construction Appropriation for Phase 2 Oct 2018: Forecasted Betterment Ranges May 2019: DIF Approved / Executed Construction Contract July 2019: Construction Begins / Mailing of Updated Betterments / Workshop Nov 2019: MassWorks Grant Awarded Aug 2020: Betterment Update / Workshop Presentation (now) Aug 2020: Sewers Complete – Connections Begin Oct 2020: [ESTIMATE] Final Paving / Project Closeout Feb 2021: [ESTIMATE] Notice of Betterments (Repayments NOT due at this time) Feb 2022: [ESTIMATE] First Betterment Payment Due- Betterment applied to January

and April tax bill & due in February and May respectively; to be repaid over up to 30 years

Project Financials

ITEM PRIOR ESTIMATE JULY 2019 ESTIMATE CURRENT ESTIMATE MFN WPCF Capacity Acquisition (via IMA) $7,262,314 $7,262,314 $7,262,314 Design $1,300,000 $1,300,000 $1,300,000 Phase 1 Construction $2,214,000 $2,214,000 $2,214,000 Phase 2 Construction (to be incurred 2019 & 2020) $13,500,000 $11,705,359 $10,429,779 Total Project Costs $24,276,314 $22,481,673 $21,206,093 Less Avalon Funds, DIF, Town’s Reserve, and

• ther Grants

($7,439,000) ($10,607,848) ($11,139,000) TOTAL TO BE RECOVERED VIA BETTERMENTS: $16,800,000 $11,873,825 $10,067,093 REDUCTION IN AMOUNT TO BE BETTERED SINCE OCT 2018

($4.9M) ($6.7M)

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Betterments & Cost Range

• Project Costs to Better:

$10.1M

• Sewer Betterment Units (SBUs): 509.75
• Revised Forecasted Betterment Range:

$19,500 to $21,500 per SBU

– Down from Oct. 2018 estimate of $28-32,000 per SBU – Down from Jul. 2019 estimate of $22.5-25,000 per SBU

Example - Condo owner previously estimated at 1 SBU = $28-32,000 Revised condo owner now estimated at 0.75 SBU = $14,625-$16,125

Betterments & Cost Range

• Residential:
• Developed non-residential: commercial, industrial or other use

SBU count is based on the higher of the following calculations:

– Average of: (75 gpd/ 1,000 sf of Living Area divided by 220 gpd/SBU) and (Avg 3 year Water Use divided by 220 gpd/SBU) – 75 gpd/ 1,000 sf of Living Area divided by 220 gpd/SBU – Minimum 1 SBU per occupancy/use – Minimum 1.0 SBU per non-residential property

• Others:

– Mixed Use: Calculated by adding the residential and the non-residential Bettered Flow / SBUs together. – Undeveloped & Potentially Developable: Calculated buildout use based on parcel area less wetlands and 50’ buffer from wetlands. – Not Developable: 0 SBUs

Use Single Family Residential

(Based on Bedrooms)

Condominiums/ Multi-family

(Based on Bedrooms, Living Area; Per unit) 1 bedroom 0.75 SBU <1,100 SF = 0.5 SBU >1,100 SF = 0.75 SBU 2+ bedrooms 1 SBU 2 bed = 0.75 SBU 3+ bed = 1 SBU

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Cost Categories for Property Owners

• 1. Betterment cost – Portion of the “public” project

costs for each parcel. (Required)

• 2. Private property costs to connect to sewer

service at the property line.

• 3. Connection fee – a one-time $150 - $300 fee

to the Town for oversight of sewer connection.

• 4. User fees – quarterly fees for use of the sewer
• system. Similar to quarterly water bill. Based on

water meter reading. Connections Optional Sewers are online

• August 2020 or beyond: If you choose to

immediately connect you will pay “Private Connection Costs” to a contractor and Connection Fee to the Town.

– Once connected, Quarterly Sewer Bills will come based upon water usage.

• February 2022: Make first payment of Final

Betterment on tax bill. Will pay on quarterly “actual” tax bills up to the next 30 years

Parcel Owner Cash Flow Timeline

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Sample Betterment Apportionment Schedule

• Fixed Rate ~

2.55% (est.)

• Payable over

up to 30 years

• Can pre-pay

Next Steps

• Final Betterments issued early next year.
• Plan for betterment repayments beginning 2022.
• Consider when you might want to connect to the sewer system,

it’s online and waiting for connections.

• Final paving in September/October – Pavement Moratorium in

project area – coordinate any related projects ASAP with DPW

• If you have any Betterment questions, speak to Mike Blanchard,

Assistant Town Administrator, and/or Woodard & Curran

Visit www.fivecornerssewer.com for updates

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Thank you for your time and attention

Questions & Discussion