Winnipesaukee River Basin Program hits the fan

GILFORD — Threatened with steep increases in sewer rates to fund $100-million worth of improvements, the 10 municipalities belonging to the Winnipesaukee River Basin Program (WRBP) have decided to try to wrest control of the state-owned regional sewer system from the New Hampshire Department of Environmental Services (DES).

The Advisory Board of the WRBP, together with the administrator Sharon McMillin and superintendent Steve Doloff, met with town officials yesterday to address mounting concerns about the proposed capital improvements in particular and the governance and administration of the program in general. The capital improvement plan projects expenditures of between $61,3-million and $81.5-million for the treatment plant along with another $20-million for the collection system.

McMillin described the plan as "a wish list" and stressed that no formal capital improvement plan has been completed. She stressed that contrary to some reports there is no intention to complete all the projects in the next 10 years."We are presenting what we think needs to be done," she said.

Meredith Town Manager Phil Warren questioned assigning a higher priority to the treatment plant than to the collection system. Earlier Brian Sullivan, Municipal Services Director in Franklin and member of the Advisory Board, said that during the so-called Mother's Day Flood of 2006, 32 million gallons passed through the system in a day as "inflow and infiltration" overwhelmed the system with stormwater and groundwater, which is "costly to pump and costly to treat." Warren said that the first priority should be to eliminate inflow and infiltration, which would reduce operating costs.

Under current law, the cost of the improvements would be born by the municipalities in the form of increased sewer rates. The WRBP would submit a budget request to DES, which in turn would include it in its capital budget request to the governor and the Legislature.

Although the Advisory Board, consisting of a representative from each of the members, reviews the budget request, it has no authority to amend it. But, the principal and interest payments on borrowings authorized to fund the projects are paid through the local sewer rates. "When you go to the Legislature," said Laconia City Manager Eileen Cabanel, "what you ask for you will get because we're paying for it — not the state."

McMillin said that although federal funding for wastewater treatment projects has become scarce and there was little likelihood of more stimulus money, a state revolving fund offers low interest loans. She said that these loans are based on the prosperity of the muncipality as measured by the ratio between its sewer rates and median household income. Taken together, the member municipalities qualify for low interest financing.

Jay Bowers, a Franklin city councilor who chairs the Municipal Services Committee, was not persuaded. "You don't have to go before the ratepayers with these increases," her told McMillin, asking "what would you do if we refused to pay? I have to tell you — and I hope you're listening," he continued, "the ratepayers of Franklin can't afford it."

"Neither can Laconia," added City Councilor Armand Bolduc (Ward 6), who attended the meeting along with his colleague Brenda Baer (Ward 4). Since the costs of the system are allocated based on usage, Laconia bears 40-percent of the operating and maintenance costs and 49-percent of the debt service.

McMillin explained that the WRBP maintains a capital improvement fund, but annual contributions are capped at five -percent of the replacement costs of the assets paid over 10 years. The contributions are allocated among the member municipalities based on their projected usage of the facilities.

However, Sullivan said that the capital improvement fund, which Doloff said has been applied to expenses for maintenance and repairs, has not kept pace with needs. He said the balance stands at just $1.5-million.

Cabanel said that the cost of the proposed improvements and the lack of financial resources reflected the failure of the WRBP to plan for upgrading the system since it began operating in 1982. "You haven't planned for the future," she said. "There has been no financial planning. "This $5-million operation is running like a mom and pop store."

Echoing Cabanel, Scott Dunn, Gilford Town Administrator, said that "you've stuck your heads in the sand for 30 years and can't just play catch up. You'll have a revolt on your hands."

In fact, the revolt had already begun. "I was concerned when I came here," said Bowers, "and now I'm downright scared." He said that "the Advisory Board should be making the decisions," and the first step should be to address the governance of the WRBP.

Warren readily agreed and explained that legislation would be required to amend the statutes governing the WRBP. He offered to host a meeting of the Advisory Board and municipal officials to discuss the broad outlines of the legislation and head a smaller group to begin drafting a bill. Meanwhile, Warren asked McMillin not to pursue any capital projects that are not already underway until the governance issue is resolved. McMillin agreed, with the caveat that emergency repairs and regulatory requirements must be addressed.

Cabanel suggested approaching the Local Government Center, an alliance of New Hampshire municipalities, which next month will prepare its agenda for the forthcoming legislative session in January, about placing a change in the governance of the WRBP among its priorities.

The WRBP was established to improve and protect water quality throughout the Winnipesaukee River watershed, where in the past municipalities discharged raw sewage into the river and lakes. The system consists of 65 miles of piping, 14 major pump stations and a wastewater treatment plant in Franklin. The WRBP has 26 employees and an annual operating budget of $4.6-million.