Cohasset residents face a decade of climbing utility costs as town officials navigate a massive $86 million overhaul of the municipal water system alongside a mounting $28 million price tag for a new public safety building. During a remote session of the Capital Budget Committee, Water Department representative Chris Pratt outlined a 15-year capital plan necessitated by aging infrastructure, noting that our plant is nearing 50 years old and its end of useful life. To finance the $75 million treatment plant replacement and a $7.5 million sludge lagoon project, Pratt projected a series of rate increases beginning at 4% annually for several years, potentially escalating to 6% by 2031 to support the necessary debt service.

The water system challenges are compounded by environmental regulations, as the Elm’s Meadow filtration facility remains offline due to PFAS levels hovering near state limits. Pratt indicated that returning the facility to service would require a $3 million investment, especially as new federal regulations may drop allowable limits to 4 parts per trillion. Associate Member Ralph Dormitzer questioned whether the town could offset these massive costs by expanding its customer base, asking if Pratt had a chance to get a sense of the market for selling water to neighboring Hingham or Scituate. Pratt responded that while interest exists, complex infrastructure and wheeling agreements make such arrangements a long-term prospect at best.

The town’s broader financial health also came under scrutiny as the committee reviewed the funding gap for the proposed Public Safety Building. While $10.2 million was previously authorized, Interim Town Manager Michelle Leary noted that an additional $18 million in borrowing is required to meet the project's estimated $28 million cost. Member Cathy Forest expressed frustration with the pace of the project’s planning, noting that since being converted to a formal committee, we haven't had any meetings. We were converted to a committee and since that happened, I think they're trying to get the ducks in a row.

Chair Susan Franklin shared that benchmarking the cost of such a facility is increasingly difficult due to post-pandemic inflation, stating that the OPM has cautioned us to throw out any numbers prior to 2020. Police Chief William Quigley contributed to the discussion via chat, noting that Hingham’s final cost reached $60 million, while Scituate’s project was significantly higher and required additional outbuildings. Member Robert Kasameyer urged a more analytical approach to the comparisons, suggesting that all of the stuff really should be calibrated by per square foot and we don't have information on the square footage of the Cohasset activity.

The sheer volume of upcoming projects has raised alarms regarding the sustainability of the town's capital stabilization fund. Associate Member Dormitzer warned that with $19 million in existing authorized but unissued debt already on the books, adding $18 million for the safety building and millions more for water projects creates a precarious situation. At some point, the capital budget committee has no money, Dormitzer said. It is almost an unworkable situation. Interim Town Manager Leary agreed that the public safety debt would likely need to be excluded from the tax limit, explaining that we wouldn't structure it that way because it would essentially bankrupt the capital budget and we wouldn't be able to maintain anything.

Amidst the high-level debt discussions, the Department of Public Works (DPW) presented several urgent equipment needs. Director Brian Joyce requested the immediate purchase of a used 2016 yard tractor for the Recycling Transfer Facility after the current unit failed. The tractor failed at the RTF. It's an urgent request, Joyce told the committee, noting he preferred a $25,000 purchase over renting a unit in perpetuity. Motion Made by R. Kasameyer to approve the purchase of a 2016 Ottawa Kalmar yard tractor for the price of $25,000. Motion Passed (6-0).

The DPW is also weighing the long-term costs of a new street sweeper, which carries a $339,815 price tag. Associate Member Dormitzer noted the town currently spends $51,000 annually to rent a unit and encouraged Joyce to pursue a lease-to-own agreement that would keep annual payments below that rental threshold. Additionally, the Facilities Department reported a quiet year for capital requests, with the exception of a pending quote for new doors at the Paul Pratt Memorial Library to improve access near the site of the new pavilion and amphitheater project.

The committee concluded by tasking Associate Member Dormitzer with spearheading further benchmarking research for the public safety building, while Interim Town Manager Leary committed to auditing the $19 million in unissued debt to determine which authorized projects may no longer be necessary. The committee plans to reconvene on March 23rd to continue finalizing the town’s capital outlook ahead of Town Meeting.