Montauk Sewer Could Be Costly But Only Option For Some Businesses

Constructing a $32 million sewer system for downtown Montauk could cost some of its largest businesses tens of thousands of dollars per year, according to a cost analysis presented to the town this week.

Pio Lombardo, who has been hired by the town to design the system, broke down the logistics of the project for the Town Board on Tuesday—including the suggestions that the town-owned landfill property would be the best location for the sewage treatment plant, and that the treated water could be pumped back to Montauk Downs to be used for golf course irrigation.

Installing a system to serve only the downtown would be the only palatable option, Mr. Lombardo surmised, with a cost of more than $32 million. Other considerations, like extending the sewer system to connect to the harbor area, could drive the cost to nearly $70 million.

“With guidance from the town, our focus has been on the downtown,” Mr. Lombardo said. “That is financially implementable.”

Paying for the system would require a mix of state and federal grants, funding from the town’s Community Preservation Fund set aside for water quality projects, and fees charged to those who are connected to the sewers.

The fees, Mr. Lombardo suggested, would be based on the amount of wastewater a property creates. The 20 largest business currently in the downtown area, mostly hotels, currently generate more than half the overall “flow” and would be expected to carry the bulk of the costs.

The Royal Atlantic Beach Resort hotel tops the list, with an anticipation of nearly 25,000 gallons of flow through the sewer system per day, and an annual share of the mortgage and operating fees that could run from $120,000 to $250,000, depending on how much of the project the town can fund through outside grants.

Down the list, smaller restaurants like Zum Schneider and Shagwong Tavern could be looking at between $12,000 and $25,000 a year in fees for the sewer system.

But, Mr. Lombardo pointed out, many of those businesses—maybe as many as 90 percent—do not have more cost-effective options in the long run, or any options at all. Their current septic systems are outdated and do not meet county codes, and when they fail, they can’t be replaced by code-compliant systems, because their underlying properties are not large enough, and the costs of maintaining outdated systems will start to mount.

Mr. Lombardo suggested that the town begin holding small meetings with stakeholders this winter to gauge willingness to sign on to a sewer proposal. Then, the decision is made to move forward, the town would have to create a sewer district and start preparing grant applications by spring.

“There’s a lot to take into consideration,” Supervisor Larry Cantwell said. “Environmental benefits, health factors, cost factors. At some point the board will have to consider, do we want to provide [CPF] funding … for this project?”

Mr. Lombardo had estimated that the town could justify dedicating about $10 million from the CPF, by giving hotels credit for being more than one residential “unit” and dedicating the same $16,000 per unit it has allowed for septic system replacement rebates.