Watching Derby officials trying to come to grips with their $30.7 million sewer repair referendum Monday was like watching a freakishly hairy man try to pull a Band Aid off his forearm, one tiny hair at a time.
Agonizing.
The referendum, assuming it lands on the November election ballot, will seek permission from Derby voters to borrow millions for seven repair projects throughout the sewer system.
The to-do list ranges from replacing the sewer line under Main Street downtown for $3.6 million to upgrading the sewage treatment plant itself to the tune of $8.9 million.
It’s easy to see why everyone was flummoxed during Monday’s joint meeting of the Aldermen and the city’s tax board. The referendum has the potential to add $257 to a Derby family’s annual sewer bill.
Here’s how it could break down, according to city documents:
Currently, a single-family property using 150 gallons of water a day pays a flat fee of $250 to the Water Pollution Control Authority, plus a consumption rate of about $115, bringing the annual WPCA bill for that family to $365 every July.
The $30.7 million in repairs to the system would tack on another $257 to that bill, bringing it to $622 annually.
To repeat — a $365 bill would become a $622 bill.
A two-family house would see its bill increase by $514.
A large user, such as Griffin Hospital, could see a $95,000 increase.
“Sticker shock,” City Treasurer Keith McLiverty said at one point during Monday’s meeting.
McLiverty acted as a sort of therapist for the Aldermen, WPCA and the tax board Monday, trying to help the various officials deal with the dollar amount without necessarily advocating for or against the referendum.
Members of the WPCA — a volunteer board — WPCA employees, engineering consultants and lots of Derby elected officials all say the repairs are needed, and are long overdue.
The WPCA itself has never built up a healthy reserve to handle some of the capital projects, they said.
The WPCA has been asking for the repairs for more than a year. Click here for videos from a forum hosted by the WPCA from early 2013, when the issues were detailed at some length.
Some of the pumping stations — three of the seven projects — have sprung leaks and must be replaced, according to the WPCA.
The WPCA has already drawn the wrath of state environmental regulators for the Roosevelt Drive wastewater pump station, where raw sewage has flowed into the Housatonic River.
Clearly, the Aldermen and the tax board aren’t happy about sending the sewer referendum to voters — potentially sending, because the tax board and the Aldermen haven’t officially taken that action, yet.
A good portion of Monday’s meeting was spent talking about whether the city should put two questions on the November ballot, trying to break up the $30.7 million in smaller clumps.
What if the city cuts out four of the seven projects, and asks for $21.7 million? Would that be more palatable to voters?
Well, the WPCA said they would still have to tack on $50 to $75 in annual fees to create a reserve account for items cut from the referendum — such as the wastewater pump stations that are already operating past their life expectancies.
McLiverty pointed out such a scenario — agreeing to borrow millions, only to be hit with more fees — would enrage Derby voters.
What about cutting out the $3.6 million sewer replacement on Main Street downtown?
The sewer under Main Street is already at capacity, WPCA officials said. Cutting that from the referendum means cutting out the potential for more non-residential development in downtown Derby, or the possibility of Seymour businesses connecting to Derby from further west on Route 34, a notion that has been talked about for decades.
Derby needs non-residential development to ease the sewer burden already being carried by Derby families, said Alderman Stephen Iacuone, who works for the WPCA.
Ultimately, the Aldermen, the WPCA, the city treasurer and Mayor Anita Dugatto all agreed a single question asking voters for the full $30.7 million for the repairs was the least confusing, and most transparent.
The city’s bond counsel was tasked with drafting a referendum question for the Aldermen to review.
McLiverty said officials have to explain plainly what repairs are needed and how the repairs will benefit Derby. If they’re straight with Derby voters, Derby voters will make the right decision, McLiverty said.
In addition, the WPCA has to give concise details as to what will happen to sewer rates and bills in Derby if voters reject the $30.7 million referendum.
That being said, the WPCA’s credibility has taken a hit with residents because of a major rate increase that was partially recalled in 2012.
McLiverty said the WPCA can take some steps to assuage weary residents. Example — adopt a payment system that allows for multiple payments in a year, instead of making the full bill due July 1.
McLiverty also suggested the Aldermen set up a subcommittee specifically tasked with keeping an eye on the sewer repairs, if the referendum passes.
“I think you have to start looking at an oversight committee,” McLiverty said. “I think voters need to know there is going to be a watchdog committee that will hold the engineers accountable for every dollar.”
Finally, the Aldermen and the mayor indicated that people who have wells and septic tanks — but do not have the ability to access Derby’s public sewers — should not have to be hit with the repair bill. There are apparently 96 properties in the city on wells and septic, and it is too costly for the the city to extend the system to their properties.
The WPCA will hold a public hearing on the referendum scheduled for Wednesday, Sept. 3 at 6:30 p.m. in City Hall.
The agenda for the hearing, which also includes some details on the planned repairs, is posted below.
