COST OF CHATHAM SEWER? MULTIPLY BY 2, 5, 10?

One who read the Cape Cod Times article on December 28th about oppostion rising to the huge centralized sewer systems being proposed for several towns on Cape Cod, including Chatham, emails his comments to Chatham Concerned Taxpayers. He aptly describes how town officials typically try to sneak these big projects past taxpayers with low ball numbers or not using any numbers at all for property taxpayers. Essentially, the writer says these projects are just unaffordable.

This is what he had to say:

To whom it may concern:

I read with interest now that the good taxpayers of Chatham have finally arose to the fact of the astronomical cost to each and every taxpayer.

Let me first say, that three years ago the town was proposing this sewer system at the same $300 million price tag. I wrote several responses to newspapers with the true cost estimates and why sewers were totally cost prohibitive.

I worked with a friend who worked for Ernst & Young as a municipal capital investment expert in long range municipal public works projects in cost analysis, budgeting and funding.

He explained to me three years ago why NO MUNICIPAL AGENCY could fund such a project such as this.

He explained that municipalities will give the taxpayer a totally untrue low ball figure that can't be sustained in the past or present future due to the year to year increase in cost of materials, change order cost, labor increases, police road work costs, new paving costs and on, and on.

He had worked on many of these projects for municipalities while working with one of the largest and respected Accounting Firms in the country as an actuary and accountant. He explained to me that the increase from which the town will try and sell to its taxpayers, which is basically the start up cost if the project is to start today and finish tomorrow.

He pointed out that the largest public works project in the Commonwealth of MA is the CENTRAL ARTERY TUNNEL PROJECT, better known as the 'BIG DIG'.

The BIG DIG was estimated that it would cost taxpayers $2.3 Billion started in 1985 and would take 20 years to complete. Well, here we are 25 years later and the costs of increased to over $22 Billion OR and INCREASE OF 1,000 % in true cost.

So with that in mind, consider the potential cost of a sewer system in Chatham most likely easily NOT costing $300 million but closer to $3 BILLION . You now can do the fifth grade math that the town fathers were not capable of expressing to the taxpayers in SELLING them some ridiculous cost estimates. Remember your talking about 6,300 residential property's paying in reality $3 BILLION DOLLARS over 20 years.

Take that figure I read in a recent article that indicated it would cost $44 thousand per property and MULTIPLY by the INCREASE IN REAL COST OF 1,000% higher and your group can truly get a grasp of this most outrageous project which truly is beyond the taxpayers ability to fund.

My friend at Ernst & Young has said this truly presents a true idea of costs. One thing the news article's hasn't presented is the additional costs of a Sewer Disposal Plant, the amount of new town employees with salary and benefits, new town vehicles to operate the plant and system, and anticipated repair and replacement of such a plant and vehicles to operate.

I hope this has been some value to your group, as you can see this would drive everyone out of town, reduce property values to the point the town cease to exist after thousands stop paying their tax bills to support such a TOTALLY OUTRAGEOUS PROPOSAL.

Your group should also involve itself with looking at other major municipal public works projects and their start and finish costs and you'll be so enlightened to how this town is trying to push a project that is totally unsustainable through taxation.

Now the writer is somewhat off here and there. The "$300 million" does include the sewer plant.

But his main point is correct: The record of staggering escalation in the costs of large municipal projects is well-known. The Big Dig is indeed an excellent example, though the original $2-$3 billion estimate has after 18 years of construction "only" risen, we believe, to $16 billion or so, not $22 billion. Still, that's up five times over the original estimate.

CCT's estimates were done very modestly, adding no cost escalation, just normal inflation. Nonetheless, the total for the $240 million project comes out to be close to half a billion dollars, almost certainly more if cost escalation is taken into account.

Whether it's twice the stated cost, five times or ten times, there's more than sufficient reason to search out the most cost effective ways to attack the nitrogen problem.


PUT AN END TO OVERTAXING AND OVERSPENDING
DON'T BE RAILROADED INTO WASTING YOUR PROPERTY TAX DOLLARS ON BIG SEWER--
MODERN ALTERNATIVE SYSTEMS SAVE TENS OF MILLIONS, ARE BETTER FOR THE ENVIRONMENT, DELIVER QUICKER RESULTS AND CAUSE LESS DISRUPTION


Search
Chatham Info
Archives
Monthly Archive


Syndication
rdf
rss2
atom