Recording of the Tuesday, August 26th Information Meeting

Presentation

Administrative Order

Questions from the 8/4/2025 Board of Selectmen Meeting after the Presentation

Water Pollution Control Authority (WPCA) 

Questions from Board of Selectmen Meeting after Presentation

Responses Provided by WPCA Chair – Steve Cinami

1. I only reside here six months a year. Why do I have to pay the same money that the year-round people do? Shouldn’t that be broken down?

There are two aspects to costs: Cost Assessment and User Fees:

 (1) The Assessment cost is based on EDU (Equivalent Dwelling Unit),and reflects the increased value that a property realizes after sewer installation and

 (2) User Fees will be based on usage – so if you are a 6-month resident, it will most likely lead to a lower bill than a year-round resident.

2. I think the numbers need to be definite before we even have a referendum on anything.

The Town of Old Lyme held the first referendum when the only available numbers were estimates. Today, we have every number that will be included in Sound View and Area B costs: Internal infrastructure plus shared infrastructure bids have been received. A distraction to moving forward is the question of whether Miami Beach and Old Lyme Shores will get responsive bids, and if they don’t, it would affect Old Lyme’s percentage of the shared cost; thus raising the cost per EDU. 

The WPCA response is that the figures provided that lead to a request of a total expenditure of 
 $17.1 million (with $8.5M being financed, and $8.5M being granted), is that if any other entity currently expected to be in the shared infrastructure doesn’t participate, we would need to go back out to referendum again, as there would not be enough spending authority.

3. Where is the oversight of WPCA? Where's that plan?

The process is part of the oversight of the WPCA. We hold regular meetings in which the First Selectman or another Selectmen is usually present. We publish minutes for all our meetings and present to the Board of Selectmen (BOS) and the public when requested or when we believe it is necessary. This process has been ongoing for over a decade, and while some may not like the direction (sewers), it was the WPCA’s last resort after presenting alternate waste disposal ideas that were not accepted by Department of Energy & Environmental Protection (DEEP). The plan is to follow DEEP’s direction until otherwise requested by Town leadership.

4. How is the money managed basically for the WPCA?

The WPCA requests a budget each year and presents those requests to the BOS and Board of Finance (BOF). From the budget, we spend funds on different line items, such as Carmody (our septic tank pumping/inspection software), testing, attorney’s fees, etc. The budget and audit of funds spent are available in the Town report each year.

5. Please include the other expenses that each household would pay?

I’m not quite sure exactly what you are requesting but will do my best to answer. Households will have to pay user fees, which where itemized to the best of my ability, in my presentation. DEEP has offered to provide me with their estimates for user fees which were around $450.00 (I am awaiting their confirmation of this in an email, but that was what was conveyed to me verbally). In addition, I offered the figure of $520/year for Point of Woods household expenses. I believe it’s safe to say Sound View and Area B residents will pay approximately $500/year for user fees, though this could vary based on usage. Another cost associated with hooking up to sewers is hiring a contractor to install the lateral from the household property line to the house and then abandon the existing septic system. I have spoken to several contractors that indicate an average home in Sound View and Area B would be around $4000 to $5000. Those are the only other costs, besides the assessment, that I can think of.

6. We have to think about inflation and hyperinflation due to tariffs. I know a lot of materials come from Canada. What could these additional costs be?

There is a contingency built into the budget itself to account for unknowns. This question is requesting that I predict what pricing will be in 3 months’ time.  I can’t tell you what, if any, additional costs will be, but I can tell you with a high degree of confidence that we have enough in the budget to address the above situation if necessary.

7. Why can't we have separate systems? 

Most of the systems in Sound View are non-conforming: meaning they do not comply with current health department septic standards for one reason or another. I have never told anyone they can’t talk about having a separate system; what I do try to stress is that the Old Lyme WPCA proposed several alternate systems to sewers and the DEEP did not accept them. After discussion with our Engineers, it became clear that the only system the DEEP would accept was sewers. We discussed fighting that outcome, but felt that in the long run, much money would be spent fighting a system that we would most likely end up installing.

8. The presentation states for an example - 300 gallons, 12 weeks and the amount calculated was $382.52. But then there were exclusions and I don't know what the exclusions are. So how much could those exclusions be?

I don’t believe the presentation excluded costs, I believe I stated that those costs could be so varied but that I did not want to go on record quoting something that could vary a large degree from actual costs – and then being accused of misleading the public. I offered Point of Woods user fee as a good approximation of what ours will be since they have a bioxide system and several pump stations and their user fee is per household. I do not think that because they have 450 homes and combined we will have 909 homes will vary the COST PER HOUSEHOLD by much as I think that POW is a valid representative sample.

9. The other thing is $1.158 billion was already been spent from the general funds. And so, we are not obligated as people who are expecting sewers to pay for that, correct?

Thus far, the Old Lyme WPCA has financed $615,200 from CWF funds and 29.7% $1.091 Million which is derived from our internal infrastructure – together totaling $939,315 and which are to be paid back at 2% over 20 years. Once the sewers are installed, these design loans will be incorporated into the construction loan for which Old Lyme would be responsible.  (the $8.55 M being financed). Any other expenditures by the Old Lyme WPCA have come from the general fund, which is funded by all the taxpayers in Old Lyme. 

10.  What was calculated for sewer exploration?  Why were other systems explored?

The Old Lyme WPCA spent funds from its general fund budget that investigated other alternatives besides sewers. We proposed various single-septic systems as well as a community leaching field design that would have been located at the abandoned Cherrystones. DEEP did not accept any proposals that we presented and indicated that they believed sewers were the only long-term, least expensive solution. Perhaps the Old Lyme WPCA should have fought back, but at the time, sewers were in favor with Town leadership, and we were requested to investigate installation of sewers.

11.  Alternate systems were explored with that $1,000,000 that was spent. I did hear Mr. Potter give a presentation and then nothing was done after it. Why not?

The Old Lyme WPCA is under an administrative agreement with DEEP to continue along the path of installing sewers. I also listened to Mr. Potter and he admitted it was probably too late in the game to propose alternates besides sewers and that the Old Lyme WPCA should have fought more diligently against DEEP’s stance. I’m not sure what the $1,000,000 figure refers to unless it is for our share of sewer design.

12.  The shared infrastructure is over $1,000,000. How much of that is going to be paid by WPCA of Old Lyme or the residents and then other out of pocket costs.

The Old Lyme WPCA is responsible through the CSA to pay for 29.7% of the final costs after grants and forgivable loans. As of today, I do not know of any outstanding out-of-pocket costs that would be levied on end users.

13. Is that money going to be divided among us and the beaches?

If “that money” is referring to funding for the shared infrastructure – yes. Old Colony Beach Club is the administrator (and guarantor), of the shared infrastructure loan. While they will administer the loan, the DEEP will fold each member’s percent (based on the Cost Sharing Agreement (CSA)), of the outstanding loan for shared infrastructure into each individual WPCA’s internal infrastructure loan.

14. Is that amount that was spent calculated in the total cost of the residents?

Yes, all outstanding costs have been included in all calculations that have been presented by the Old Lyme WPCA. In addition, the per EDU cost includes financing at 2% over 20 years.

15. I'm concerned about the capacity of New London. I did see the article also about the expansion that East Lyme is proposing. And the expansion costs were $50 million or so? What's that going to cost us in the future and is the system going to accommodate our sewage?

DEEP’s license to New London affords New London an additional 300,000 gallons of capacity once Old Lyme and the other BA’s hook in. This was specifically done to ensure that New London would maintain capacity for Old Lyme and the beach associations. While the request was made, nothing has even been discussed by New London, and even if it were to be decided to increase capacity, it wouldn’t happen for at least another decade by the time studies, permitting, plans and construction are undertaken. That being said, I calculated $42.71/million/EDU financed at 2% over 20 years.

16. I'm concerned about the referendum when the status of other bids are not in yet and I do not know what the bottom line is for my property. I do have a lot that has nothing on it and it's included with two other lots.  I want to know if it is going to be billable as a building lot or not?

The status of all bids that will affect the WPCA referendum request ARE IN. We know them and have based our calculations on them. Miami Beach Association  and Old Lyme Shores numbers will not affect our numbers. I do not know the property of which you refer, but the EDU formula assesses any empty lot that would be deemed buildable after sewers (10,000 sf and above).

17. How have empty lots been clarified at WPCA? Are they empty lots are or buildable lots?

The Old Lyme WPCA has categorized any buildable lot (i.e., 10,000 sf and above), as an assessable lot since once sewers go past they would be eligible to be buildable lots according to our zoning.

18. Is there a possibility you might be able to put out a list for each residence so that we know what our EDU calculations are? Could it be put on your website?

We will place the formula sheet that the Town of Old Lyme WPCA developed and approved on the website.

19. The 29.7 percent that the Sound View people are responsible for is a concern of mine. If there's four entities, why? I think we are a relatively smaller group paying 29%. It's almost 1/3. I just don't know where that number comes from, and I'm concerned that we are paying more than our fair share. Again, it wasn't clear to me the presentation why. I know we are paying 29%, but I just don't know why.

The 29.7% represent 270 EDU’s (the number of EDU’s in Sound View) divided by the total of 909 EDU’s in the entire shared system. The EDU’s were determined by the engineering firms that developed the original studies. Since then, each ownership percentage has been codified in the CSA document that was signed by the Beach Associations, Old Lyme WPCA and the Town of Old Lyme.

20. When I look at these numbers, it says $31,681 as we heard today. I calculated out to $38,000 with interest. Anyway, the $31,681 when you were asking about Old Colony, which is very, very similar to the number of houses and empty lots were almost identical. Their EDU on here is 38, so I asked how we are $6000 more per EDU than Old Colony to start with?

If you take $1936 and multiply it by 20, you come up with $38,720, so I do not know where the $31, 681 came from – it certainly was not a number in the presentation. Old Colony has almost no mixed use nor commercial property to account for versus Sound View. I do not know where the 38 and $600 figures are coming from, as I did not perform a comparison between Old Colony and Sound View.  If you would like to send me more information, please email me at ChairWPCA@oldlyme-ct.gov

21.  If we have 270 EDU’s, how can we justify that some properties are 3 EDU’s and yet 70% of our homes are only 1 EDU?

Per the formula that the Town of Old Lyme WPCA developed, and was voted on by the WPCA,  these properties justify 3 EDU’s based upon the mathematics of the formula. 

22. When I count and I know the EDU structure, I count 118 out of 199 properties will pay 1 EDU. The rest, almost 70 properties will pay considerably more, up to 3 EDU’s? 

That’s correct. It is based upon the formula developed by the Town of Old Lyme WPCA and voted on by the WPCA. Members of the WPCA were instrumental in re-formulating the former formula (which tried to level costs between the properties), because they the old formula was difficult to understand and also believed that someone with “skin in the game” should be the developer of a truly fair system to allocate costs.

23) I do question and would like clarification on why the Sound View contingency was reduced to 5%. When you look at Fuss and O'Neill's numbers and you calculate it out, most of the other beaches, private beach associations, range from 14.27% to over to 16% for each of them.

I’m not exactly sure the contingency in which you refer. There is no line item in our bid for contingency. What you may be referring to is the contingency that is assigned at the beginning of the process that is usually steadily reduced as more unknowns become knowns. The original contingency had to include escalation, inflation, and several other items that would have to be accounted for during the process. The unknowns in this project are now reduced to conditions encountered that were not indicated on the plans that would result in a change order; the remaining items have been accounted for at bid time.

revised 8/13/2025

Should anyone have additional questions - please email me at ChairWPCA@oldlyme-ct.gov