Rehoboth Beach is a resort community. Our economy is completely dependent on our beaches. The Sussex County three-way partnership under consideration would bring treated wastewater from the Wolfe Neck and Lewes service areas to the Rehoboth outfall. Rehoboth should not more than double the flow going to its outfall just a mile off our swimming beaches. The financials do not reflect the inherent risks. At the Dec. 20 board meeting, I hope my fellow commissioners reconsider moving forward. My requests for a town hall or a referendum have been largely ignored, even though this partnership represents a major increase in our existing, significant wastewater partnership with the county.
The proposed $20 million one-time cash infusion plus maintenance costs don't begin to offset this scheme's potential risks to Rehoboth Beach. Among other concerns that have not been addressed: increased wear and tear for the diffusers; reduced lifespan of the outfall carrying a higher volume of effluent; risk premium for problems with the county's pipe at the needed tie-in junction off State Road; liability if Rehoboth Beach has a permit violation with the Environmental Protection Agency due to larger volume of effluent; indemnification terms for major loss of property value following a major spill and indemnification for swimming advisories due to contamination.
Moreover, the valuation of the outfall is faulty. The county's depreciation formula does not take into account replacement cost. Net present value was not used for a payment several years from now. A 25-year renewable lease would make more sense. The county's next best alternative would likely cost at least $60 million, and should have been factored into the valuation.
When negotiating his own compensation package, the city manager maximized every aspect. But he did not negotiate on major wastewater management terms, as if protecting taxpayers isn't his role. In response to how the $20 million was reached, the city manager described asking the county to provide its best and final offer. Read: there was no negotiation.
The rate of development in the Wolfe Neck and Lewes service areas is troubling. Rehoboth's outfall shouldn't be expected to accommodate the county's unchecked growth. Sussex County should develop solutions independent of Rehoboth. If that means much higher wastewater treatment rates in the county, that has an incidental benefit. It should slow down housing construction, as builders and buyers will not be as enthusiastic about the costs of homeownership. I have confidence the county can find solutions that preserve the Inland Bays and the canal. Those solutions are expensive, but they are worth the investment.
Rehoboth Beach should walk away from this request. The commission's fiduciary duty is to Rehoboth Beach taxpayers. This risky proposition is a bad financial decision for Rehoboth.
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