The proposal grew out of a program to test all septic systems around the lake and oversee the replacement of those which fail.

Watershed Coordinator Win McIntyre said this week that the area being targeted is in the vicinity of the Hickory Grove Inn and Lakeshore Drive, but may be extended.

There were a number of system failures discovered during testing last summer and McIntyre said it lead officials to believe the area may be right for a shared, or cluster system, which would serve multiple residences. One thing which makes it possible is a large enough piece of land which McIntyre believes would be available for the system.

There are three or four shared systems around the lake serving two residences, but the proposed district would likely serve many residences.

McIntyre said the area from the condominiums at Five Mile Point to the Otsego town line at the north is the most densely populated area around the lake.

``Twenty-six percent of all the properties on the lake are in that mile section,’’ McIntyre said.

There are a number of ways to organize a shared system, but the best is if it is a municipal system, McIntyre said. If it was, it would open up funding possibilities from the Environmental Facilities Corporation, a state agency which provides low interest, long-term loans.

McIntyre declined to provide an estimate of the cost of a system because work is still be done to come up with those figures. A rough cost estimate will be available at next week’s meeting.

A shared system should offer property owners some cost savings over the price of individual systems which have been ranging from $15,000 to $25,000, he said.

``These aren’t traditional systems. These are high-tech septic systems so they’re expensive,’’ he said.

The proposed system would be designed so that each home had a small tank and grinder pump connected to a sewer main that flowed into a large tank and treatment facility.

``We have a pretty good idea of the technology we want to use,’’ McIntyre said.

The size of the sewer district is still uncertain. The idea began with discussions among a core group near the Hickory Grove Inn, but 87 letters will be going out this week to property owners in the area telling them of the presentation next week.

If a sewer district is formed, it would require a licensed operator and McIntyre said he thinks it may be possible to reach an agreement with the village of Cooperstown, which already has licensed employees.

After all, he said, it is the village’s drinking water.

Otsego Town Supervisor Tom Breiten said what officials have learned so far about the proposal for a sewer district has sounded encouraging.

``Historically, the town of Otsego has been and important partner in maintaining the water quality of Otsego Lake. I have no reason to suspect that support won’t continue,’’ he said.

Breiten said it has not come to a vote before the full board, but the town has an opportunity to act as facilitator if residents of the proposed district are in favor of it.

McIntyre said the lake-wide septic testing and replacement program is going well with 181 out of 337 inspections completed. With more than 50 percent of the systems inspected, the failure rate stands at almost 60 percent, he said.

The presentation will take place next Wed., May 9, at 7 p.m. in the town office in Fly Creek.