1/28/2016 CAPITAL IMPROVEMENT PROGRAM Minutes

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ti 4 Capital hnprovement program.Committee Minutes January 28, 2016 Sewer-$2,8501000. `ons Fudala, Town planner and Sewer Commissioner reviewed the funding plan proposed for the implementation of the wastewater facilities; design and construction for Phase 1 (2017-2021) as per the final Comprehensive wastewater and watershed Nitrogen Management plan. The Plan is designed in a 5-year phased program to bring forth a total budget projection of$37.4 rnilllon. The budget as outlined does not include the shellfish aquaculture component of the plan projected to save nullions in overall wastewater costs. The success of the shellfish propagation program in reducing nitrogen levels is intended to be reviewed at the end of each phase which may result in a revision/re-balance of the work proposed for subsequent phases in the wastewater plan. First year cost estimates proposed in FYI for a projected $2.85 million in professional services include $600,000 for a process mechanical preliminary design of the proposed wastewater treatment plan adjacent to the Transfer Station, $100,000 for a second consultant value engineering review of the design at 0%, and $2,150,000 for the treatment plant site design,borings, sees and the identification of the pump station locations for the first phase collection system. An in-depth discussion followed with respect to affordability and sustainability. In reviewing long term costs, the Finance Director related concern regarding the funding of this project including operational costs, and how this prod ectrould fit wi thin the levy. In considering projected revenues,the tax rate and growth,this project is not sustainable.. Selectmen representative Gottlieb indicated there has been no discussion of cost recovery through rates and fees,the levy, and in betterment assessments. On the state level,there is the potential for subsidiary. This includes 0% State Revolving Fund loan provision, and forgiveness for up to 25%of the loan.. All of the options should be considered to develop a rationale determination regarding this capital expenditure, Mr. Collins related concern that there is no funding mechanism in the CIF in place for a project of this magnitude. Although the sewer project has been in the capital prograrn for a number of years,the Town Manager indicated the funding mechanism for the sewer program should not derive from the CIP program.. The CIP Committee agreed and Mr. Fudala did as well. It was fully determined this matter should fall under the purview of the Town Manager and Board of Selectmen as this is the single largest project the town will undertake,