Exeter's big dig: Judge signs off on special Town Meeting to finish ‘crucial’ sewer project

EXETER — A Rockingham Superior Court judge has signed off on the town’s request for a special Town Meeting, which is critical to complete the second phase of the sewer pipe replacement project beneath the Squamscott River.

Select Board Chair Niko Papakonstantis announced Tuesday the approval allows the town to move forward with asking voters to approve the $3.5 million bond.

The first half of the special Town Meeting, or deliberative session, will be held on July 11 at 7 p.m. at Town Hall, and the vote will take place on Aug. 15 from 7 a.m. to 8 p.m. at the Talbot Gymnasium.`

Papakonstantis encourages residents to attend the deliberative session, where they can discuss the project details and ask questions. At the meeting, the article can also be amended if needed, Papakonstantis said.

Article 1 seeks $3.5 million to install two 12-inch siphons, replacing 8-inch pipes, from Jady Hill to the main pump station. The article requires three-fifths voter approval.

The $3.5 million would be combined with the current $4.2 million already earmarked for the $7.7 million project. The $4.2 million includes $1.6 million approved by voters in 2020, $1.15 million in Sewer Fund Reserves, $670,000 in local American Rescue Plan Act (ARPA) funds, $600,000 in federal congressional direct spending funds, and $180,000 in state ARPA funds.

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The $3.5 million, if approved, would come from a loan through the New Hampshire Department of Environmental Services. Town Manager Russ Dean said the 10-year loan comes with a 2% interest rate and a 10% loan forgiveness.

Town finance director Corey Stevens said the loan would have a zero tax impact.

"The borrowing will be repaid by sewer ratepayers, it's not a property tax," he said. "So if I'm on the town's sewer, a portion of my sewer bill will go into paying the outstanding debt."

Stevens said ratepayers will not see an increase in their sewer bill.

"There will not be a change in rates as a result of this project," said Stevens. "We change our rates because it's been a few years, and we need to look at them again, not just because one project has come along … you kind of build your rates for a longer period than just from project to project."

Papakonstantis said if voters were to reject the plan, it would send the town back to the drawing board to find an alternative to complete the project.

However, he said the board is "confident voters would support this crucial initiative.”

“The Select Board is looking forward to the opportunity to complete the second phase,” he said. “This is a project that must be completed as it affects up to 40% of the sewer flow in town.”

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How did Exeter get here?

During the 2020 Town Meeting, voters approved $1.6 million to install a new single pipe alongside two existing ones. The goal was to have a three-barrel system and add capacity for future development.

After the 2020 Town Meeting, an effort to clean the existing aged pipes revealed holes and that they, too, needed to be replaced.

Paul Vlasich, the town’s interim public works director, said that made the project more urgent.

The pipes send sewage from the Jady Hill section of town, including the Exeter Mill apartments, and sections of the busy commercial corridor on Portsmouth Avenue, or Route 33.

When the project started in December 2022, the town and contractor agreed to re-evaluate the project after completing a single barrel to understand the potential cost of a three-barrel system.

However, the cost of the project kept rising while work slowed down. Workers hit “a surprising amount of ledge,” which broke the drilling equipment, and more expensive equipment was also needed to move the project forward.

The project has since been reworked and will now replace the current two-barrel system rather than add one to have a three-barrel system. The new pipes would be 12-inch pipes rather than the 8-inch pipes.

Papakonstantis previously said staff involved in the project believe the larger pipes will offer enough capacity to meet existing demand and future development. He said that would allow the town to accomplish the mission for which it set out in 2020 to increase sewer capacity for future town growth.

As of June 22, an 18-inch reamer used to widen the initial hole, has drilled 325 feet across the Squamscott River to install the first of two sewer pipes.

If voters approve the additional funding, the second pipe will be installed in the fall with a completion date of early next year.

This article originally appeared on Portsmouth Herald: Exeter special Town Meeting to finish Squamscott River sewer project