How to Legally Operate an Llc

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					     Water and Sewer Systems:
 WPCA Benefit Assessment and
Pre-Construction Public Hearing
 2008 Sewer and Water Update                     Bill Lacourciere
 Overview of Construction Project                Rob Prybylo
 Review of Proposed Benefit                      Bill Lacourciere
  Assessment Method
 Estimated Costs
 Q&A with Panel

Rob Prybylo – RFP Engineering, LLC
Norbert Church, Esq. – Counsel
Chris Kerin – Appraiser, Kerin and Kerin
WPCA Members:
    Kathy Aldridge             Kathy Mckeough
    Marty Guyer                Mark Stankiewicz
    Jack Harney
FY 2008 in Review
 Engineering Design Completed
    DEP, DPH, CWC, VE reviews completed
 Construction bids received
 Benefit assessment method proposed
 Project approved and funded by the CT Bond
FY 2008 in Review
 Intermunicipal Agreement Completed
    One agreement – East Lyme
    Established interconnection fee of $1,026,000
    User fee same as East Lyme customer: $5 per 1,000 GPD
    Fee for using State loaned capacity if and when
     necessary - $5 per 1,000 GPD
    Pay for actual flow used instead of flat rate
FY 2008 in Review
 Improved Communications
    4 Benefit Assessment workshops
    11 WPCA meetings
    Annual Meeting
    Public Hearing
    Joint BOG/WPCA meetings
    Monthly newsletters
    Monthly FAQs
    WPCA website
FY 2008 in Review
 Construction Permits Approved:
    Old Lyme Inland Wetlands and Watercourses
    East Lyme Conservation (wetlands) Commission
    DOT approval for Route 156
    Amtrak for construction beneath railroad trestle
    Old Lyme Zoning Commission (pending)
Construction Schedule
 Paganelli Construction Co. has 2 years to complete the
 No work will begin within Point O’Woods until after
  Labor Day, 2008
 We anticipate that Paganelli will try to complete as
  much work as possible during “off seasons”
Sewer System
 Work will start with mains in streets and pump
 Installation of individual grinder pumps and lateral
  sewers to individual properties will be installed only
  after mains have been installed in the streets
 Curb-to-Curb overlay pavement will be installed
  towards the end of the project after pipelines have
  been installed
Sewer System
 Working hours will be from 7:30 AM until 4:00 PM
 Detours will be necessary to divert traffic around
  construction crews
 We will post and update construction schedules on the
  WPCA’s website (
Water System
 Paganelli Construction Co. will install the water mains
  in the street in the same trench as the sanitary sewers.
 All new water mains will be installed at frost-proof
 Paganelli will install new services from the mains to
  each current customer’s property and install a new
  meter pit at a frost-proof depth for each existing
Water System
 Paganelli will then connect from the meter pit to the
  existing water service at a point near the street
 Paganelli WILL NOT replace the existing pipe from
  the meter pit to the house
 Temporary water services will be maintained during
  construction to enable existing system to be taken out
  of service
Water System
 Only brief outages are anticipated as houses are
  connected from existing mains to temporary system
  and from temporary system to new mains
 Most/all of this work should be completed during off-
  season periods when most properties are not occupied
Grinder Pumps
 The Association will own, install, and maintain grinder
  pumps and pressure sewer from the pump to the main
  in the street
 Property owners will be responsible for connecting
  from the house to the grinder pump and to bring
  electricity to the electrical panel
 Some properties may need to upgrade their electric
  panel to accommodate grinder pumps
 Notification letters have been sent to property owners
  that will receive grinder pumps asking them to contact
  Doug Hill at RFP Engineering
Grinder Pumps
• We will meet with property owners at their house to
  discuss best location for pump and pipes
• Property owners will need to execute an agreement
  with the Association giving the Association the right
  to go onto property to install and maintain the pumps
  and pipes
 The WPCA will be contacting property owners with
  grinder pumps soon to begin this process
 Unfortunately, much of the project will require
  blasting to remove ledge rock
 Paganelli Construction Co. is required to hire a
  qualified, licensed blaster to oversee and perform all
 Paganelli’s blaster will be required to perform a Pre-
  Blast survey of each building that is within 250 feet of
  where blasting will be conducted.
 Blasting will only be allowed between the hours of 9
  AM and 3 PM
 All blasting work will be under the purview of the local
  fire marshal's office
 We need to obtain easements from the owners of 5
  properties along Champion & Hillcrest Roads
 Water and sewer services will be installed behind the
  existing sea wall
 Sewer service will be by gravity
 The WPCA will be contacting these property owners
  shortly to begin the process
 Doug Hill, P.E. will serve as Resident Engineer during
  construction and should be the first point of contact
  for construction-related issues
 He will have an office trailer in or near Point O’Woods
 His contact information will be made available on the
  POW WPCA website as soon as it is established
 Please check often to receive
 important bulletins and work schedule updates.
Benefit Assessment Method

 Goal: Determine the most equitable benefit
  assessment method for our community which is most
  defensible in court
Benefit Assessment Method
 Process:
   Four public workshops
   Nine WPCA meetings
   Surveyed various communities with similar conditions
   Consultants
       Real Estate Experts
       Appraisers
       Legal Experts
   BOG survey of the community
   Considered several benefit assessment methods
Benefit Assessment Method
 Methods Considered:
   Flat rate (evenly divided amongst all of us)
   Property value
   Front footage, acreage
   Usage
   Number of bedrooms
   Combinations of the above
Benefit Assessment Method
 All but flat rate and property value methods were
 ruled out because:
   Uniquely, POW properties are all single-family homes
   No commercial properties
   No industrial properties
   No farms
   No municipal buildings
   No method of measuring usage at this time
Benefit Assessment Method
 Two methods best met our objectives:
       Flat Rate
       Property Assessment

 Property Assessment:
    Preferred by majority of respondents to BOG survey
    Least defensible legally – there would be cases where the
     benefit assessment would exceed the value of the
     benefit derived from the project
Benefit Assessment Method
 Property Assessment (continued):
    Most disproportionate – some properties would pay over
     $50,000 and others less than $15,000 and at times the
     derived value would be reversed
    Moving target – a presently unimproved property could
     be greatly improved following construction but pay a
     disproportionately small assessment.
Benefit Assessment Method
 Flat Rate:
    Met expectations of most property owners of $24,000
     per property
    Method used alone or in some comination by most
    Most defensible in court – highly unlikely that a
     property would be assessed higher than the value
     derived from the project
    Whether communities we spoke with used it solely or
     not, most strongly recommended it because it is simple,
     fair, and defensible
Benefit Assessment Method
 Flat Rate (continued):
    Recommended by counsels Norbert Church and James
     Mattern and our appraiser, Chris Kerin
    Method most easily managed by a small, volunteer
Benefit Assessment Method
 Appraisal Report:
    Average value derived from the sewer and year-round
     water project is

   Benefit derived could be inverse from benefit assessed
   Virtually guarantees that that a flat rate method could
    not be legally defeated in court
Benefit Assessment Method
 Legal Opinion:
    It is reasonably probable that a seasonal property would
     be converted to year round occupancy with year round
     sewer and water available
    Flat rate was most legally defensible method
Benefit Assessment Method
 Grinder Pumps:
    Use of grinder pumps saves us all millions of dollars
    Their proper function is critical to the overall efficacy of
     the system; therefore, they should be owned, installed
     and maintained by the POW Association
    They are an inconvenience to the property owner
        Have to pay for electricity to operate
        Have to provide POW an easement for access
    Compensation:
      POW pays for grinder pump and its installation
      POW maintains the grinder pump
      POW pays for cost of any connection that exceeds $8,000
Benefit Assessment Method

The WPCA proposes that the benefit assessment
method be flat rate for all
That each single-family dwelling be classified as a unit
That the benefit assessment be assessed on each unit
That all property owners pay for their own connections
That the maximum cost a property owner will pay for the
connection of a grinder pump to the street is $8,000
Annual User Fees (Entire System)

Annualized Avg.
 Daily Use @ a
Cost of $5/1,000
                   Daily   Annual     Cost per
     GPD           Cost     Cost       Unit

 25,000 GPD        $125    $45,625      $106
 30,000 GPD        $150    $54,750      $128
 40,000 GPD        $200    $73,000      $171
 100,000 GPD       $500    $182,500    $426
Other Costs
   Expense              Range          Average Per Unit

   One Time
Connection Costs    $1,000 - $8,000         $2,500

                   $10,000 - $20,000    $23 - $47/year
                             State Grants                               Cost/Unit/
Description      Cost          & Other      Net Cost to    Cost per     Year @ 2%,
                                Funds       Association     Unit         20 Years

Technical      $9, 290,000
Design Costs
Admin. &         $345,000

Contingency      $530,000

Interest         $180,000

Subtotal       $10,345,000     $2,922,000      $7,423,00      $17,343
Cost To Homeowners for Water,
  Sewers and “New” Roads:

Next Steps
 Gravity Sewer Connections:
    The WPCA is working on a plan to enable homeowners
     to use a pre-selected/pre-qualified contractor at a pre-
     established price
 Policies:
    In the coming months, the WPCA will be establishing
     several new policies:
        Connection Policy (who, how, and when)
        Sewer Use Charge Policy
Next Steps
 Meetings with Property Owners:
   Grinder Pump Properties
       Decide on best location for grinder pump and pipe
       Execute agreement
   Gravity Sewer Properties
       Decide on best location for lateral sewer
   Blast Area Properties
       Schedule time for pre-blast survey
 Design is Complete
 Bids are in and they are low
 State monies have been set aside
 Grant and Loan applications are pending
 East Lyme agreement is completed
 Permits are complete except one: Old Lyme Zoning
 Benefit Assessment method has been proposed

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