____ _

Telephone: (203) 562-4020
South Central ConnecticL,It Regional Water Authority
Fax: (203) 624-6129
90 Sargent Drive, New Haven, Connecticut 06511-5966
E-Mail: Ibingaman@rwater.com
http://www.rwater.com
Larry L. Bingaman
Chief Executive Officer
June 21,2012
The Honorable Anthory Staffieri
Mayor
City of Derby
One Elizabeth Street
Derby, CT 06418
Re: East De:rby Waterworks; Department of Public Health Correspondence
Dear Mayor Staffieri:
I write to make sure that you are aware of the content and implications of the attached letter we
received from the Connecticut Department of Public Health ("DPH") with respect to the East
Derby Waterworks (EDW). As a result of a recent regularly scheduled sanitary survey, which is
typically conducted every three years by DPH staff, it is clear that the EDW needs a number of
capital improvements i:l order to satisfy the concerns of DPH. This is in addition to other capital
improvements needed, as previously communicated by Tom Chaplik, SCCRWA Vice President
of Water Quality & Outreach, to Mr. Phil Robertson as recently as September 15
th
, 2011, to be
able to continue to deliver high quality water service to the customers served by the EDW, which
has been in existence for more than forty years.
Under the terms of the 1971 Agreement governing the relationship between the R W A and the
City, the obligation to fund required capital improvements in the EDW rests with the City of
Derby. Also attached ':0 this letter is a five-year plan outlining the capital improvements that are
needed, together with rough cost estimates. The planning, design and construction of the
required capital improvements is the responsibility of the City, as owner of the EDW, and will
need to be completed by the City unless it has sold the system.
You will recall that my letter of May 16,2012 in response to your letter of May 7,2012, copies
of which are attached for your convenience, outlined two options to simplify the relationship
between the City and RW A. We have yet to receive a response to that letter. In light of the
concerns expressed by DPH with respect to needed capital improvements, it is imperative that
the City of Derby accountability to DPH and to the customers of the system for
implementing the needed capital improvements.
I hope that the City finds one of the options outlined on May 16 to be attractive. If we have not
achieved substantial pwgress toward one of the outcomes I outlined by August 1, 2012, I will
advise DPH to direct all further correspondence and regulatory actions with respect to needed
capital improvements in the EDW to the City of Derby. This would be a follow-up to the
3962208v1
The Honorable Anthony Staffieri
Page 2
___.
attached June 21,2012 letter from SCCRWA to DPH responding to the June 6, 2012 Sanitary
Survey Report. DPH regulators need to understand that the City, not RWA, controls the purse
strings regarding EDW capital expenditures.
If the present relationship is to continue (i.e. the City does not select one of the options I
outlined), the regulatcrs will also need to understand that any follow-up enforcement that relates
to capital improvements should be directed to the City. We have also advised DPH in response
to their inquiry that we are not aware of any sale of excess water permit for the wholesale water
sales contemplated by the 1971 Agreement.
I look forward to your response.
Sincerely,

Larry L.
President and Chief Executive Officer
Llb:js
Enclosures
May 7, 2012 Letter from City of Derby to SCCRWA
May 16,2012 Letter from SCCRWA to City of Derby
June 6, 2012 Letter from CTDPH to SCCRWA
June 21,2012 Letter from SCCRWA to CTDPH
June 2013 - May 2018 Improvements Plan for East Derby Waterworks
CC:
CT DPH Florin Ghisa (by email and FedEx)
CT DPH Dave Cooley (by email and FedEx)
Regional Water Authority (email)
Kevin Curse aden (regular mail)
Tom Chaplik (interoffice mail)
Barbara Dybas(regular mail)
Paul McCary, Esq. (regular mail)
Joseph T. Coppola, (FedEx)
Philip Robertson (Fed Ex)
Chairman, Board of Adennan, Ronald Sill (FedEx)
Ltr 10 Mayor Siaffier June 21 , 2012
3962208v1

erAldthority
Telephone: (203) 562-4020
Fax: (203) 624-6129
E-Mail: Ibingaman@rwater.com
South Central Connecticut Regional Water Authority
90 Sargent Drive, New Ha len, Connecticut 06511-5966
http://www.rwater.com
Larry L. Bingaman
Chief Executive Officer
July 31 , 2012
The Honorable Anth::my Staffieri, Mayor
City of Derby
One Elizabeth Street
Derby, CT 06418
Re: East Derby Waterworks and Orange Customers
Dear Mayor Staffieri:
As previously advised in my May 16, 2012 letter to you, this is to confirm that effective July 25,
2012, RWA is no longer using the East Derby Waterworks to serve its customers in Orange.
If you have any questions, please feel free to contact me ..
Sincerely,

LARRY LQ NG:QN
President & Chief Executive Officer
Copy to: CT DPH Florin Ghisa
CT DPH Dave Cooley
Kevin Curseaden
Tom Chaplik
Barbara Dybas
Paul McCary, Esq.
Joseph T. Coppola, Esq .
Philip Robertson
Ronald Sill, Chairman , Board of Alderman
~ Regional WaterAuthori!y
South Central Connecticut Regional Water Authority
Telephone: (203) 562-4020
90 Sargent Drive, New Haven, Connecticut 06511-5966
Fax: (203) 624-6129
http://www.rvvater.com
E-Mail: Ibingaman@rvvater.com
Larry L. Bingaman
Chief Executive Officer
August 17, 2012
The Honorable Anthony Staffieri
Mayor
City of Derby
One Elizabeth Street
Derby, CT 06418
Re: Capital Expenditures for East Derby Works
Dear Mayor Staffieri:
I write to ensure that the City of Derby is prepared to meet the future needs of the East Derby
Works (EDW) with respect to capital improvements. As explained in my letter of June 21 , 2012,
under the 1971 agreenent governing the relationship between the City of Derby and the South
Central Connecticut Regional Water Authority ("R W A"), the obligation to make capital
improvements with respect to the EDW rests entirely with the City of Derby.
From our experience in operating water systems for many years, we know that some capital
expenditures can be planned well in advance, but others must be implemented on an emergency
basis. In order to avoid interruptions in water service and the accompanying threat to public
health and safety, any entity responsible for making capital improvements to a public water
system needs to be prepared to move quickly to minimize service disruptions. Moving quickly
requires ready access to the right mix of physical resources such as capable contractors,
experienced engineers, proper equipment, proper inventory, etc. to name a few. Mobilizing these
resources requires that funds be immediately available.
If an emergency capital expenditure is required in the EDW, and the City is not prepared to move
quickl y to restore water service, public health and safety would be compromised and both our
organizations would be open to public criticism. To avoid that unacceptable outcome, the City
needs to address the twin requirements of providing immediate funding and obtaining access to
the right mix of physical resources such as contractors, engineers qualified to design water
system solutions and equipment. In the event that the City has not already addressed these
issues, I offer the foUO\ving solution.
RWA obviously has access to the physical resources needed to make both emergency capital
expenditures and scheduled capital expenditures such as those described in the June 2012 letter.
But RWA is not obligated to fund capital expenditures, nor are we willing to become an
The Honorable Anthony Staffieri
August 17, 2012
Page 2
______
unsecured creditor of the City in the event that we undertake capital expenditures in the EDW in
order to continue to provide safe and reliable water service. To address this funding gap, we
plan to hold the funds otherwise payable to the City pursuant to Paragraph 7 of the 1971
agreement in a special reserve account held by the Citizen's Bank to fund capital expenditures in
theEDW.
It has come to our attention that the City has not cashed the check we sent to Mr. Phillip
Robertson on May 17 transmitting $39,521 in accordance with Paragraph 7 of the 1971
agreement. We have stopped payment on that check and have deposited the funds in the special
Citizen's Bank account to be used toward emergency capital repairs.
In the meantime, we suggest the City establish a reserve fund equal to the anticipated cost of
planned capital expenditures over a five-year period, plus $100,000 to pay for any emergency
capital expenditures. The current version of the planned capital needs is shown on the
attachment to my June 21 letter, both of which are enclosed for your convenience.
Once the special reserve fund exceeds the anticipated cost of planned capital expenditures over a
five-year period, plus $100,000 for emergency expenditures, we will pay the excess funds to the
City on a current basis in accordance with the 1971 agreement. If the City would like to propose
an alternate funding mechanism, such as a Letter of Credit, that provides a source of cash to fund
emergency capital expenditures on a real-time basis and planned funding of longer term capital
expenditures, RWA would be happy to review such a proposal.
Given the seriousness of ensuring that the residents in the East Derby Works service area
continue to receive quality water without interruption, I am surprised that the City of Derby as
the owner of the EDW, has not responded to our prior correspondence. We would appreciate a
reply to this letter by August 31. Thank you.
Cordially,

Larry L ·ng
President & hief Executive Officer
LLB:js
Enclosure
C: Lori Mathieu, CTDPH Drinking Water Section
Ron Sill, Chairman, Board of Alderman
Joseph T. Coppola, Esq. Chairman, Board of Alderman, Ronald Sill
Barbara Dybas
Tom Chaplik
Paul R. McCary, Esq.
SCCRWA Improvement Plan for East Derby Waterworks - June 2012
June 2013 Through May 2018
Item No.
1
Facility
Strang Road Tank Recoattank
Description
Estimated Cost
Capital O&M
$325,000
Potential Fiscal
Year
FY 2014
2 Strang Road Tank Tank grout replacement $3,500 FY 2014
I
3 Strang Road Tank Valve chamber safety upgrades $75,000 FY 2014
4 Strang Road Tank Hatch, gate and fence safety upgrades $1,000 FY 2015
5
6
Sodom Lane PS
Sodom Lane PS
Electrical, access and labeling safety upgrades
Replace pumping station roof
$6,000
$35,000
$3,000 FY 2015
FY 2015
I
7 Strang Road Tank Replace fixed ladder with tank stairway $120,000 FY 2015
8 Sodom Lane PS Twelve upgrades based upon cndition assessement $35,500 $5,000 FY 2016
9 Sodom Lane PS Replace generator set and transfer switch $250,000 FY 2017
10 Sodom Lane PS Replace pump motors $25,000 FY 2018
11 Sodom Lane PS Replace pump motor starters with variable frequency drives $52,000 FY 2018
12 Sodom Lane PS SCADA upgrades $30,000 FY 2018
13 Misc locations Hydrant replacements - (assume 5k per year) $25,000 FY 2014-18
TOTALS $978,500 $12,500

Sign up to vote on this title
UsefulNot useful