Lewes BPW to extend wastewater service

The Lewes Board of Public Works will extend its wastewater service to Savannah Place within the next year. But to lower costs to the residents of the 35-home community, BPW officials are reaching out to two other communities that could benefit from city services. 

If Savannah Place is the only community included in the project, the cost to each resident would be an estimated $51,000, broken down into monthly payments of $191 for 30 years.

But if residents in Donovan Smith mobile home park and Swaanendael Acres were to get on board, the cost to Savannah Place residents would drop more than $16,000, or nearly 32 percent. Cost to Swaanendael Acres’ 74 residents and Donovan Smith’s 130 residents would be $106 and $26 monthly, respectively. 

Savannah Place was annexed into the city in August 2009. Residents received water service almost immediately, but the annexation agreement required they also add wastewater services within a set number of years. At the time, the BPW took out a loan to pay for the water work and passed it on to the residents - about $8,000 per property. All but five property owners have paid off the loan, said BPW General Manager Darrin Gordon. 

Based on an informal straw poll, BPW officials have determined the residents of Swaanendael Acres do not support the project. If the community were to be included in the project, it would have to be annexed into the city, a process that must begin with the residents of Swaanendael Acres. BPW officials gave the residents 60 days, until Aug. 8, to determine if they’d like to be annexed and join the project.

Gordon said it is very likely Donovan Smith will be included in the project. The work in that community will only include the construction of a lift station to convey sewage from the community’s private holding tanks to the BPW’s wastewater system. 

If the project moves forward with Savannah Place and Donovan Smith, the estimated cost to residents in Savannah Place is about $36,000, or $131 monthly. Donovan’s 130 residents would see a total cost about $8,400, or $31 monthly.

The BPW has secured a state loan for the project with a modest 2 percent interest rate. 

There is a possibility for grant money to defray some of the cost. The BPW is asking residents to fill out and submit confidential financial statements to determine if financial assistance is available. The documents must be submitted to the BPW by mid-July. 

Response has been low so far, and Gordon requires 51 percent participation from both Savannah Place and Donovan Smith’s park to qualify for a grant. He urged residents to submit the statements. 

“If we don’t try this, we don’t have a chance,” Gordon said. “I believe there is a significant opportunity to get a grant, but I can’t promise a single penny.” 

If he does not receive 51 percent participation, Gordon said, he cannot apply for a grant and will move forward with the loan as is. 

A point of concern among residents is that a lien is placed against the property until their portion of the loan is paid off. BPW attorney Michael Hoffman said the lien is automatic, but there are options if the home is sold.

“It’s difficult, without undermining the lien or the effectiveness of the board’s enforceability, to say blanket ‘pass it along,’ but certainly homeowners can approach the board on a case-by-case basis,” he said. 

The financial statement residents are asked to fill out can be found at lewesbpw.delaware.gov.