Waterville Valley Wastewater Treatment Facility Replacement Update

Waterville Valley, NH – Residents gathered for an information session on the proposed replacement and upgrade of the Waterville Valley Wastewater Treatment Facility (WWTF), a project estimated to cost $117.2 million. The meeting, hosted by the Select Board, featured presentations from the town’s legal counsel, engineering firm Black & Veatch, and financial advisors PFM, alongside representatives from the New Hampshire Department of Environmental Services (DES). The primary goal of the session was to inform the community about the project’s necessity, its financial implications, and the critical need for town authorization to move forward.

The current WWTF, built in the 1970s under the Clean Water Act, is over 50 years old and has reached the end of its useful life (link). A new National Pollutant Discharge Elimination System (NPDES) permit, issued by the Environmental Protection Agency (EPA) and effective March 13, 2022, mandates significantly lower ammonia nitrogen discharge limits into the Mad River, a protected “Outstanding Resource Water.” The existing facility cannot meet these stringent new limits, necessitating a complete replacement rather than a mere upgrade (link).

Project Scope and Timeline The initial cost estimate for the upgrade was $42 million, but the original design team’s plan did not meet state requirements. After terminating that contract, the town hired Black & Veatch, who redesigned the project to include two new buildings and accommodate the required treatment processes. The anticipated completion date for the new facility is now March 13, 2031, approximately five years later than initially planned (link).

The new facility will utilize a Membrane Bioreactor (MBR) system, chosen for its reliability in meeting strict discharge limits in a cold climate and its relatively small footprint. All facilities will be housed indoors to ensure operational reliability during winter conditions (link).

A significant challenge highlighted by Town Counsel is the existing 9,500-foot sewer line running from the ski area through U.S. Forest Service land to the WWTF. This line is inaccessible for maintenance and will require either replacement or the installation of an alternative septic system at the ski area. The U.S. Forest Service has, to date, opposed the septic system alternative, despite its lower environmental impact and cost-effectiveness for the town, due to a policy against discharging septic waste on federal land (link). The septic system option is estimated to be $2 million less in capital costs than replacing the sewer line, and would transfer ongoing maintenance responsibility to the ski resort (link).

Financial Implications The total estimated cost for the project is $117.2 million, broken down as follows (link):

• New WWTF: $76.8 million
• New Sewer Line (assuming replacement): $9.7 million
• Ongoing Maintenance (during design/construction): $5 million
• Engineering & Technical Services: $15.3 million (WWTF) + $1.9 million (Sewer Line)
• Lagoon Decommissioning: $8 million
• Additional Studies Allowance: $0.5 million

A financial advisor from PFM presented three scenarios for funding the project, which also included an estimated $28 million for other non-sewer related town capital needs and general fund operating cost growth (link). The current town tax rate is 6.86 mils.

1. Conservative (Worst Case): Delay tax increases, conservative borrowing. Projected tax rate of 20.15 mils in 2031, with an 84% increase in one year (link).
2. Conservative with Cash Buildup: Raise taxes earlier to build cash, conservative borrowing. Projected tax rate of 19.31 mils.
3. Optimistic with Cash Buildup: Raise taxes earlier, optimistic financing (including potential grants/longer amortization). Projected tax rate of 17.56 mils.

For a home valued at $400,000, the annual tax bill could increase to approximately $8,000 under the conservative scenario (link).

Community Concerns and Path Forward Residents expressed significant concerns about the project’s cost and its impact on property taxes, with some fearing it could make the town unaffordable and lead to a decline in property values (link). Questions were raised about:

• Alternatives to river discharge: The engineering firm stated that other options like groundwater discharge or snowmaking reuse were not feasible or would be more expensive due to stricter treatment requirements (link).
• Comparison to other towns: A representative from DES noted that Waterville Valley’s situation is unique due to the pristine nature of the Mad River, leading to exceptionally strict discharge limits, among the most stringent in the country (link).
• Recourse and political action: Town Counsel explained that appealing the permit was unlikely to succeed and that the town is currently negotiating an Administrative Order on Consent (AOC) with the EPA and DES to extend the compliance deadline to 2031 and avoid substantial daily fines (link).
• Growth and revenue: The financial projections currently assume zero growth in the town’s tax base. Increased commercial or residential development could help spread the cost, and the town is exploring options like sewer impact fees (link).
• “No” vote implications: The Select Board emphasized that not approving the bond article would lead to daily fines of up to $37,500, potentially accumulating to millions, while still being legally obligated to build the facility (link).

The Select Board and town staff stressed that securing town authorization for the bond is a critical first step to demonstrate commitment to federal and state funding agencies like USDA and WIFIA, which are potential sources of grants and low-interest loans. They also noted that a value engineering phase is currently underway to identify opportunities to reduce project costs without compromising compliance or reliability (link). The town is committed to aggressively pursuing all available funding to minimize the financial burden on residents.