HomeMy WebLinkAboutfinal property owner letter with attachment 030916
Proposed Town Sewer Project: Nantucket Harbor Shimmo, “Plus” Needs Areas
for
Articles 18 and 19 of April 2, 2016 Annual Town Meeting
Background
Nantucket began its Comprehensive Wastewater Management Planning (CWMP) in 2000. The
first part of the CWMP was completed in 2004 and included a Town-wide wastewater
management plan that identified areas of the Island that were not sustainable long-term with on-
site wastewater (septic) systems. Data reviewed at that time concluded that Board of Health
records for Title 5 failures, major repairs, multiple system pumping, soils and groundwater
conditions and potential impacts of on-site systems to environmental resources, showed multiple
areas needed to eliminate septic systems as the primary wastewater systems.
When we began the CWMP in 2000, there was no knowledge of the issues that would be
encountered in future years due to nitrogen enrichment to the water resources, and the 2004
CWMP recommendations were made based on the information described above. The
Commonwealth of Massachusetts then introduced the Massachusetts Estuaries Project (MEP),
which looked at the problem of nitrogen pollution from various sources. Nantucket’s MEP
Reports (Nantucket and Polpis Harbors, Madaket Harbor, Long Pond, Sesachacha Pond and
Hummock Pond) identified nitrogen as the largest contributor of pollution to the water resources
examined, with septic systems as the largest source. The state, in coordination with the federal
government, mandated that Nantucket update its 2004 CWMP to include solutions to the
nitrogen pollution in the MEP areas. The Clean Water Act, both federal and state versions,
mandate that the polluting of the waters of the Commonwealth be eliminated.
Following the completion of the MEP reports, the state issued multiple Total Maximum Daily
Loads (TMDL), (which is a regulatory term in the Clean Water Act, describing a value of the
maximum amount of a pollutant that a body of water can receive while still meeting water
quality standards) to the Town that mandates us to reduce and or eliminate this pollution. In
2012, we initiated an update to the CWMP to address the MEP results. The Update, as required
by the state, provides recommendations to meet the state mandated TMDLs with a 20-year
planning process using a varied group of locally controllable solutions including sewering,
fertilizer reduction, storm water management and increased ocean flushing such as the Jetties
reconstruction and pond openings. Articles 18 and 19 on 2016 Annual Town Meeting warrant
are the initial steps in implementing these recommendations.
Proposed Funding of the Sewer Extension Projects
The State Revolving Fund (SRF) Loan Program, administered by the Massachusetts Department
of Environmental Protection (MassDEP), provides a low (or zero percent) interest loan to
municipalities with eligible water quality projects that are primarily for pollutant reduction. The
two-phased sewer project on the 2016 Annual Town Meeting warrant is a proposed nutrient
removal project and thus qualifies us for the zero percent loan program (under special legislation
filed to address nutrient pollution).
SRF loans are payable over 30-years at zero percent interest. All SRF loans cover the
construction costs, but do not cover design costs -- the Town must bond these separately. The
Town has applied for and received approval of its SRF application for the project on the 2016
Town Meeting Warrant. With SRF covering the construction costs, the capital recovery of these
and the ineligible design costs (Town paid) are proposed through a combination of betterment
assessments to the property owners and the general tax base (all taxpayers).
The betterments are to be assessed to all parcels that will be “bettered” or receive benefit by the
extension of municipal sewer. The Town is proposing to issue betterments under Massachusetts General Laws Chapter 80 and 83, which allow the Town to construct and maintain sewers for
public health and convenience and assess the cost to those receiving the benefit. If your property
is located within the proposed sewer service area as defined below, you will likely be assessed a
betterment fee. We have prepared a cost estimate of all costs as a result of implementing these
two projects and included it on the back of the enclosed map.
The enclosed color map shows the geographic locations of these areas. Wastewater from these
areas will be collected, transported and treated at the Town’s Surfside Wastewater Treatment
Facility.
If you have additional questions, please go to the Town’s web page at http://www.nantucket-
ma.gov/719/Sewer for Frequently Asked Questions (FAQs) as you may find your answer
covered here. If you have a specific question, please email us at sewerproject@nantucket-
ma.gov.
ESTIMATED CAPITAL COST RECOVERY PLAN – FUNDING & FINANCING PLAN NANTUCKET HARBOR SHIMMO & “Plus” NEEDS AREAS ESTIMATES OF CAPITAL COSTS, TAX INCREASE AND PRIVATE PROPERTY COSTS
As of March 9, 2016 ESTIMATED BETTERMENTS
Needs Area Design Costs Construction Cost Total Estimated Capital Costs Total Estimated Betterment* Estimated Monthly Betterment to
Property Owner**
Nantucket Harbor
Shimmo
$2,782,916 $25,046,246 $27,829,162 $30,450 $90.12
“Plus” $1,309,821 $11,788,385 $13,098,206 $17,700 $52.17
*Proposed with Town paying 75 percent and property owner paying 25 percent
**25 Percent of overall betterment financed over 30 years ESTIMATED TAX INCREASE
This is the 75 percent apportionment of the overall project cost
Needs Area Estimated Annual Cost Impact – Average Assessment
of $1,784,378
Estimated Annual Cost Impact – Average Assessment
Year Round residential $1,144,544
Nantucket Harbor Shimmo $66.55 $42.69
“Plus” $31.32 $20.09
PRIVATE PROPERTY COSTS 1
These are the costs to connect the physical property to the public sewer. Some of these are extremely variable and site specific, i.e. a house that is 300 feet off the road will be more expensive due to the length of pipe needed to connect the house to the sewer stub in the street.
Connection to Sewer including permitting,
excavation, abandonment of septic system
Landscaping/Restoration Sewer Connection Fee** Sewer User Fee – cost to maintain island-
wide sewer system - similar to water use fee
Privilege Fee*** Potential Electrical & Plumbing Costs
– if adjustments needed inside of property
Average $4,000* Varies depending on extent of landscaping $500 $1,200 per year (average) $6,322 Varies
1 Refer to the Board of Health website for financing options available at http://www.nantucket-ma.gov/303/Septic-Management
* Average local cost varies based on extent of pipe, excavation, location of connection to public way. Local source quoted $4,000 as base average. **For Nantucket Harbor Shimmo and “Plus” Needs Areas ***The Privilege Fee is the set cost to offset the Surfside WWTF Upgrades passed in 2005/2006