Takeaways - Sewer Project Info Meeting

[Alfred Roy]

Here are my key takeaways from the in-person Sewer Project meeting held on May 20 at the library.

I invite board members and other attendees to share their perspectives as well.

MY KEY TAKEAWAYS

• Focus on the purpose of the vote:
  Seek resident approval of the Bond Resolution and obtain DEEP authorization to go out to bid
• Bid results will dictate next steps
• Bond Resolution sets a $18.7M cap for Internal Sewers and our share of Shared Infrastructure
• Approving the Bond Resolution enables continued due diligence by our WPCA on behalf of OLSBA residents
• Demonstrates good faith effort to comply with the Unified Consent Order and forestalls potential enforcement actions
• Enables ability to obtain bid results and bid analysis by F&O, and allows informed evaluations and decision making
• Provides critically necessary data for development of WPCA recommendations to the BOG and OLS Officers
• Rejecting the Bond Resolution sets off undesirable events
• Causes DEEP to consider compliance enforcement actions
• Causes MBA, OCB, and SV (Town) to question OLSBA's commitment to legally binding agreements
• Delays progress towards OLSBA reaching an informed decision (ultimately increasing costs)
• Our current scenario/predicament: This is NOT just OLSBA vs DEEP
• Rejecting the Bond Resolution puts us at odds with DEEP, MBA, OCB, and SV (Town)
• This would become a "four on one coalition," requiring a difficult and potentially costly defense by OLSBA
• Ideally: If another CSA Partner chooses to default, let THEM stand in the line of fire and test DEEP's resolve
• Truly, there are no viable alternatives to central sewers
• DEEP's position in infinitely clear on their position, as stated multiple times
• Our current options
• Plan A: Proceed with the bids
• Plan B: Stall, deal with the consequence, delay the project and incur additional costs
• "Total Owning Costs" over 20 years are a concern
• However, like other major financial decisions, going forward costs are unavoidable and must be considered in context
  (think buying a modest home for $400k with total 20 year costs of over $800k for P&I, maintenance, insurance, utilities, etc.)
• There is a distinction between "Economic Feasibility" and Economic Affordability"
• Economic Feasibility is a determination made in consideration of multiple factors as prescribed in published guidelines
  
• Economic Affordability is a personal, case-by-case evaluation based upon each individual's financial situation
• While projected OLSBA costs for sewers may be higher than historical costs incurred in other CT communities:
• Timing is the main factor.  Most of CT's 149 communities developed wastewater solutions decades ago at lower costs

[Sarah Fay]

100% - this is all factual and rational.  Thank you for summarizing, Al.