Water rates and toll lanes
On March 12, 2020, a joint meeting of the Transportation and Environment Committee of the Montgomery County Council and the Transportation, Infrastructure, Energy, and Environment Committee of the Prince George’s County Council was held with the Washington Suburban Sanitation Commission (WSSC). At this meeting the WSSC provided a report on possible impacts of the I-270 and I-495 road widening P3 Project on WSSC infrastructure.
WSSC announced that according to a new WSSC utility analysis, the P3 Project would require 70 miles of large water and sewer pipes to be relocated, costing between $1.3 billion and $2 billion, depending on the construction method used. Based on historical data that the Maryland Department of Transportation (MDOT) and WSSC split the costs, WSSC has estimated its cost to be $1 billion.
In its report to the two county councils, WSSC said some 2 million residents in Montgomery and Prince George’s counties would see added costs to their water bill.
MDOT cost projection
MDOT had originally calculated the costs to relocate water and sewer pipes to be $900 million. This cost estimate greatly underestimates WSSC projections. The utility said the state also hadn’t included $280 million in its estimate to move the 5.3-mile bi-county tunnel, a steel pipe seven feet in diameter that opened in 2015 adjacent to the Beltway.
Who pays for moving the pipelines?
It is unclear who is required to pay for the cost of any water relocation for the proposed project. A 1958 memorandum of understanding (MOU) between WSSC and the then Maryland State Roads Commission designates who pays to move pipes for road widening projects -- the utility or the Maryland State Highway Administration. It depends on whether each stretch of land first had pipes or a road. This MOU remains in effect.
However, the agreement does not address highway projects built as a public-private partnership. It is not apparent how the costs will be shared between WSSC, SHA, and a third party under a P3 program.
Promises broken
This huge potential increase in water bills for Montgomery and Prince George’s County residents is a complete surprise. In over two years of testimony and public meetings MDOT never mentioned footing a $2 billion construction bill to move water and sewer mains. Thus, taxpayers will pay for construction costs. This contradicts Governor Hogan's central promise that the toll lanes would be built at no real cost to taxpayers and only toll users would pay for the construction of the road.
MDOT response
MDOT said that it’s too early to determine the costs of relocating utilities because the state hasn’t completed a federally required environmental review of the project, a developer has not yet been chosen, and a contract hasn’t been drafted.
MDOT has not indicated who they expect to cover the costs of water and sewer line relocation. However, they have had meetings with WSSC and are creating a joint working group to address these concerns.
Letter from Montgomery and Prince George’s County Councils
On May 14, 2020, the Montgomery County and Prince George’s County Councils sent a joint letter to MDOT Secretary Slater concerning the potential WSSC rate increase for infrastructure relocation. The Councils are opposed to their residents paying for any related costs. According to the letter, the Councils will not approve any WSSC Water Capital Improvement Program that includes such costs and associated rate increases. The Councils request that MDOT address WSSC’s analysis prior to proceeding with the Managed Lane P3 process.
See:
ACTION ITEM
Add your voice by writing Maryland Department of Transportation (MDOT) Secretary Greg Slater and stating your agreement with statements from the County Councils’ letter. Tell him to require the concessionaire to pay all related construction costs. WSSC ratepayers should not face significant increases in our water bills to cover the P3-associated costs.
Sample Letter
Dear Secretary Slater:
On March 12, 2020, the Washington Suburban Sanitation Commission (WSSC) told the Montgomery and Prince George’s County Councils that moving water and sewer utilities as part of the I-495 and I-270 toll lane construction could cost as much as $2 billion. That means every WSSC customer in Prince George's and Montgomery Counties could see their water and sewer rates increase to relocate utilities for the Managed Lane P3 project.
This is unacceptable! Governor Hogan promised that the I-270/I-495 P3 Program would not cost taxpayers a dime. These hidden costs are another reason for the state to not proceed with the proposed project.
The Montgomery County and Prince George’s County Councils’ letter to you on May 14, 2020 stated that MDOT should ensure that the private concessionaire is aware of cost estimates associated with relocation of water and sewer infrastructure as part of the project and is responsible for paying these costs. The Councils stated that they will not “entertain any Water Capital Improvements Program that includes such costs and associated rate increases.” I commend the County Councils for this response and concur that MDOT must ensure that the concessionaire pay all related construction costs. WSSC ratepayers should not face significant increases in our water bills to cover the P3-associated costs.
With Maryland’s historic budget deficit due to COVID-19, I strongly request that MDOT freeze this project and spend its resources on urgent projects with undisputed value.
Sincerely,
Name
Home address
Watch the House of Delegates webinar with MDOT
Delegate Marc Korman, Chair of the House Appropriations Subcommittee on Transportation and the Environment, is holding a briefing with the Maryland Department of Transportation to better understand COVID-19's impact on our transportation sector.
Date: Wednesday May 20, 2020
Time: 2:00 p.m.
Where: Virtual Zoom Meeting. More information will be available here prior to the briefing. A livestream link will be made available to the public before the start of the briefing.
Watch the Sierra Club meeting with Montgomery County Department of Transportation
The Sierra Club, Montgomery County will hold a virtual meeting with Mr. Chris Conklin, Director of the Montgomery County Department of Transportation (MCDOT). Mr. Conklin, will share updates regarding the County priorities in regard to public transportation system including improvements to the infrastructure needs/challenges and what the County is doing to further improve the safety, effectiveness and environmental performance of the public transportation system.
Date: Monday May 18, 2020
Time: 7:00 pm to 8:30 pm
Where: Virtual Zoom Meeting
RSVP: Sierra Club Montgomery County Bi-Monthly Virtual Meeting. You will receive the zoom information one to two days prior to the meeting.
Invite your friends and neighbors to join our e-mail list
This is a great way for them to stay current on what’s happening with the highway project and to learn how they can help fight this boondoggle. Go to https://dontwiden270.org/get-involved to sign up. And check out our website dontwiden270.org for more information. We even have a Spanish language section with translations of key documents.