Standoff On Fees At Water Agency
Funding for Pipe Repair Is at Issue

By Rosalind S. Helderman
Washington Post Staff Writer
Thursday, February 28, 2008

Representatives of Montgomery and Prince George's counties on the Washington Suburban Sanitary Commission deadlocked yesterday over the utility's budget, splitting along county lines over whether to adopt higher rates and fees that could increase water bills by as much as 50 percent for its 1.8 million customers.

The six commissioners, three appointed by Prince George's County Executive Jack B. Johnson (D) and three by Montgomery County Executive Isiah Leggett (D), agreed to meet again today. But the stalemate raised the possibility that the utility might be unable to adopt a budget by Saturday, as required by state law.

If commissioners approve a budget, it would be forwarded to the Montgomery and Prince George's county councils. The councils would then meet jointly in May to make a final decision. If council members deadlock, the budget approved by the WSSC commissioners would go into effect automatically.

The utility's managers had proposed raising rates 9.5 percent starting July 1 and imposing a $20 monthly fee to replace aging pipelines. Between the rate hike and the new fee, quarterly water bills would increase up to 50 percent in July.

The commissioners had given that plan preliminary approval in December. But in response to a public outcry and opposition from local officials, the Prince George's commissioners balked, citing the disproportionate effect of increases on poorer residents.

"How do we address the issue of customers who own a home of $150,000 versus a customer who has a home of $250,000 paying the same rate?" said Joyce Starks, a Prince George's commissioner.

The utility's managers argue that the fees are critical to a 30-year plan to replace disintegrating pipes. They say the system has put off essential repairs for years, including from 1999 to 2004, when the utility froze rates.

Under current funding, the utility can replace only 25 miles of pipeline each year, though many pipes are decades old and worn down by groundwater and acidic soil. As a result, the utility experienced a record 2,129 pipe breaks last year, bursts that often tie up traffic and leave customers without water.

"The reliability of the system to deliver water to our customers is in jeopardy," WSSC General Manager Andrew D. Brunhart told the commissioners yesterday.

The commissioners often split along county lines. In August, for example, they declined to offer Brunhart a new two-year contract. Two members from Montgomery had wanted to retain him; all three from Prince George's opposed offering him a new contract. Today is the Navy engineer's last day with the utility.

In 2005, all three Montgomery commissioners resigned in frustration over infighting. State lawmakers attempted to remove Johnson's appointees to the commission, but the bill failed in the General Assembly.

The commission considered several alternative budget proposals yesterday and rejected them on 3 to 3 county-line votes.

Under a proposal by Montgomery, rates would have risen by 9.5 percent in July and customers would have faced a monthly $12 fee for pipe replacement.

Montgomery commissioners said they could live with starting with a fee of less than $20 next year, allowing it to rise from $12 to $20 over several years. However, they said they believe the commissioners had agreed over months of study and discussion that these measures were needed to fund repairs.

"I don't think it is acceptable or responsible for us to walk away from the need for infrastructure renewal," said Montgomery Commissioner Gene W. Counihan.

Prince George's commissioners countered with a proposal to raise rates by 4 percent and impose no new infrastructure fee. Montgomery commissioners voted against it.

After a private phone consultation with Johnson's office, Prince George's commissioners proposed raising rates by 6.5 percent. The representatives from both counties agreed that they would discuss that proposal further today, after reviewing the effect of the rates on the budget.

The process brought a harsh rebuke from Brunhart. "I feel this whole dialogue amounts to horse-trading on the percent of water and sewer rates to reach a politically acceptable number that has nothing to do with providing reliable and clean water to our 1.8 million customers," he told commissioners.

The consequences for missing Saturday's deadline are unclear. A WSSC attorney told commissioners that they would be in violation of state law if they did so and might jeopardize the agency's bond rating.