Portsmouth City Council approves Pease wastewater loan authorization, schedules ordinance readings and waives Sherburne project fees

The Portsmouth City Council on Feb. 18 adopted a series of routine and financing actions, including approving participation in a state Clean Water State Revolving Fund loan for Pease wastewater treatment work, scheduling further readings for two administrative-code ordinances and waiving city permit fees for the Sherburne Road housing project.

The council unanimously approved a resolution authorizing participation in the New Hampshire Clean Water State Revolving Fund (SRF) for up to $25,128,000 to fund rehabilitation work at the Pease wastewater treatment facility and rescinded a prior $20,000,000 authorization related to the same project. Councilor Bombardier moved to adopt the SRF resolution; the motion passed on a roll-call vote with eight yes votes and one absence (Councilor Bagley absent). City Engineer Eric Fiedler told the council the state identified additional grant and principal-forgiveness funds after other communities were unable to meet match or schedule requirements, increasing the city’s borrowing authorization without proportionate additional city cost in many scenarios. Fiedler said the additional authorization would translate to roughly $600,000 of actual borrowing exposure before grant and forgiveness and that the finance staff estimated about $177,000 in additional net cost to the city (source: Eric Fiedler, city engineer; deputy finance director referenced in meeting).

On ordinances, the council passed first reading of an amendment to Chapter 1, Article 4 (commissions and authorities) to convert the Blue Ribbon Housing Committee into a standing sustainability committee, reduce the number of student voting members from two to one and permit co-chairs or a chair and vice chair; the council scheduled a public hearing and second reading for March 3, 2025. The council also held a public hearing and passed second reading of proposed amendments to Chapter 1, Article 16 (adoption of fees by budget resolution), which clarify that the council may update the fee schedule outside of the budget process and expressly authorize department heads to set fees for ongoing programming; the council scheduled the third and final reading at its March meeting. Deputy City Attorney Trevor McCourt explained the amendments and said the changes memorialize current practice and were reviewed against state statutes.

The council additionally voted to adopt a legal-department-recommended process for land‑use review for the city-owned property at 35 Sherburne Road; that motion directs the Portsmouth Housing Authority (PHA) to present to the Technical Advisory Committee and Planning Board, with recommendations returned to the city manager. The council separately voted to waive all city permit fees requested by the Portsmouth Housing Authority for the Sherburne project; the waiver was moved and approved on the council floor and passed unanimously. Earlier in the meeting the council referred the PHA’s fee-waiver letter to the city manager for action before taking the final waiver vote.

Other actions on the consent agenda included approval to authorize the city manager to enter into a grant agreement with the New Hampshire Department of Transportation for Kate Street bridge replacement funding (dollar amount to be finalized as designs proceed), approval of parking-and-traffic committee action items that add two downtown parking spaces and a loading-zone adjustment, and routine acceptance of minutes and correspondence.

Votes at a glance: yes/no tallies and motions recorded in the meeting minutes match the motions made on the floor. The SRF loan resolution passed by roll call (eight yes, one absent); ordinance readings and scheduling votes were recorded as unanimous on voice vote; the Sherburne fee waiver and the land‑use review process both passed with unanimous approval.

Why it matters: The SRF authorization puts the city in position to pursue additional low-interest financing and principal forgiveness for major wastewater infrastructure needs at Pease, potentially lowering long-term costs tied to regulatory requirements. The Sherburne process and fee waiver advance a proposed affordable‑housing redevelopment on city‑owned land and were the subject of public comment and legal review during the meeting. The fee amendments clarify internal fee-setting authority and could change how some departmental fees are implemented going forward.

The council did not authorize spending beyond the authorizations and scheduling noted above; specific project budgets and CIP entries will return to council for detailed review in later proceedings. For items placed on future agendas, the council scheduled formal hearings and third readings where required.