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Setting record straight on wastewater plant – Tasley Eastern Shore News

  • Webtide's calculations are based on a presumption of at least 95 percent grant funding of a project of about $24-27 million. This does not include the cost of the needed sewer collection systems in Cheriton and Northam-pton County. This would add another $6 million or so. Webtide assumes that these collection systems would be 100 percent grant funded and has excluded these costs from their usage fee calculation. This matter aside, the grant funding assumption on the balance of the project is highly speculative. The typical USDA Rural Development funding mix is 30 percent grant and 70 percent loan, but could be higher given the availability of federal stimulus funding. The debt service calculation change markedly if one assumes a more realistic, and still very favorable, grant coverage of 70 percent (a bit higher than the 68 percent now realized by Cape Charles). The resulting debt service would be six times higher, and would add about $30 to the monthly bill. So, the average bill for 1,200 customers would be $78 ($48 + $30). This would worsen further if the 100 percent grant funding for the sewer collection systems did not materialize.

    Connection charges

    It is impossible to do a similar comparison for new connection charges since we have no knowledge of how Webtide's proposed charge has been calculated. The current Cape Charles wastewater facility fee of $13,150 represents the present value calculation of providing facilities capable of treating 750,000 gallons per day to service 5,700 connections over the next 30 years, including effluent reuse infrastructure. Similarly, we have no knowledge of how Webtide calculated "$40,000 for new commercial hookups." Certainly, it could be that high, higher or lower. The commercial facility fee formula is detailed in the Town Code, and is dependent on projected water use by type of facility -- office, restaurant, hotel, retail store, etc.

    The new Cape Charles wastewater treatment plant will be a state-of-the art membrane bio-reactor facility which has been designed to produce extremely high quality effluent. The ultra-filtration system is capable of virus removal and the nutrient removal process should better the state requirement to achieve 4 mg/l nitrogen and 0.3 mg/l phosphorous concentration. The Department of Environmental Quality (DEQ) has approved the design and issued a Certificate to Construct. Additionally, the project has undergone a rigorous Environmental Assessment which has been reviewed and approved by all state agencies having jurisdiction. The proposed Webtide plant has been through none of these regulatory processes.

    The advertisement underscores a stark contrast in approaches. The Cape Charles projection is considered "worst case" and likely to improve somewhat. This is indicative of the seriousness of purpose the town has consistently demonstrated. The Webtide projection is considered "best case" and likely to deteriorate substantially. This is indicative of Webtide's continuous attempts to sell their idea. We have considerably more confidence in our estimates since the Cape Charles project is much further along. Additionally, the Cape Charles plant could service areas outside the Town, thus increasing the customer base to drive down usage rates. I

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