8/10/2020 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 1
8/10/2020 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) [ESTIMATE] First Betterment Payment Due - Betterment applied to January Feb 2022: and April tax bill & due in February and May respectively; to be repaid over up to 30 years Project Financials ITEM PRIOR JULY 2019 CURRENT ESTIMATE ESTIMATE 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 & $13,500,000 $11,705,359 $10,429,779 2020) Total Project Costs $24,276,314 $22,481,673 $21,206,093 Less Avalon Funds, DIF, Town’s Reserve, and ($7,439,000) ($10,607,848) ($11,139,000) other Grants TOTAL TO BE RECOVERED VIA $16,800,000 $11,873,825 $10,067,093 BETTERMENTS: REDUCTION IN AMOUNT TO BE BETTERED SINCE OCT ($4.9M) ($6.7M) 2018 2
8/10/2020 Betterments & Cost Range $10.1M • Project Costs to Better: 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 Condominiums/ Single Family Residential Use Multi-family (Based on Bedrooms) • Residential: (Based on Bedrooms, Living Area; Per unit) <1,100 SF = 0.5 SBU 1 bedroom 0.75 SBU >1,100 SF = 0.75 SBU 2 bed = 0.75 SBU 2+ bedrooms 1 SBU 3+ bed = 1 SBU • 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 3
8/10/2020 Cost Categories for Property Owners 1. Betterment cost – Portion of the “public” project costs for each parcel. (Required) Connections Optional 2. Private property costs to connect to sewer Sewers are online 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. Parcel Owner Cash Flow Timeline • 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 4
8/10/2020 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 5
8/10/2020 Thank you for your time and attention Questions & Discussion 6
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