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Secrets of Buried Treasure: Water from the Chugach Mountains to Your Tap and Beyond!

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Secrets of Buried Treasure: Water from the Chugach Mountains to Your Tap and Beyond! Secrets of Buried Treasure: Water from the Chugach Mountains to Your Tap and Beyond! Anchorage Chamber of Commerce: Make it Monday! July 9, 2018 Our job is Safeguarding the Health and Welfare Of the Public and the Environment. Three pillars of our business support that commitment. Safeguarding the Health and Welfare of the Public and the Environment Physical Human Infrastructure Resources Financial Resources Public health and welfare requires access to safe and reliable drinking water. Total Water Consumption in Anchorage exceeds 8 Billion gallons annually. Nearly 90% of our public water supply comes from Eklutna Lake. Chugach State Park Elevation 870 ft 8 miles long 1.1 miles wide, Up to 200 feet deep Volume: 119 Billion Gallons 10% of Eklutna Lake Watershed is comprised of glaciers 0 1 2 4 6 Km Total area = Elevation (m) 119 sq. miles High : 3000 Total annual E discharge to lake = k Low : 0 l u t n a L 100 Billion Gallons a k e Total volume of water in glacial ice = East Fork 1050 Billion Gallons West Fork Annual loss of ice from glacier melt = 5.7 Billion Gallons (0.55% of ice) (5.7% of discharge) Most of the lake discharge goes to hydropower. AWWU takes less than 10%. Photo By Imke Lehmann, posted on Wikipedia Can Eklutna Lake provide for other water uses? Lake surface elevation varies ~40 feet annually. Eklutna Lake waters are supplemented by Ship Creek watershed and various groundwater wells. Surface waters are treated to remove small particles and potential pathogens. Although pristine, Eklutna water still needs treatment – to remove glacial silt. Similar processes at Ship Creek A complex water supply pipeline network brings the water to your tap. Water reservoirs provide storage and pressure regulation. Booster Pump Stations are needed to serve higher elevations. Pressure regulating valves ensure the right pressure is available for your neighborhood. Protecting public health and the environment requires reliable wastewater collection and treatment. AWWU collects and treats ~30 million gallons of wastewater daily. Eagle River Girdwood John Asplund (Pt. Woronzof) John M. Asplund • Largest in Alaska. • Began Operations in 1972. Wastewater Treatment Facility • Upgraded in 1982, 1989. • Capacity of 56 MGD. • Provides Primary Treatment per EPA “301(h)” permit. • Screening • Grit Removal • Settling • Disinfection • Discharge is quickly dispersed by Cook Inlet’s extreme high tides. • Extensive marine monitoring program ensures no adverse environmental impacts. Travelling screens collect all manner of debris: fish guts, plastics, cleaning wipes. Flow is split to feed six primary “clarifiers”. “Biosolid” residues are incinerated. • Energy intensive process. • Water used for quenching heat and scrubbing emissions. • Regulatory compliance is challenging. • Looking at alternative processes for enhanced energy recovery. The clarifier effluent gets an infusion of chlorine bleach for disinfection. We stopped importing chlorine gas and started making our own bleach. • Eliminate risks of gas transport and storage. • Use only Salt+Electricity = Sodium Hypochlorite • Complex process of advanced chemical engineering Wastewater discharges are permitted under the Federal Clean Water Act. EPA permit program established in 1972. Discharges must meet treatment requirements: . All flow subjected to processing outlined in the permit. Meet water quality criteria in receiving waters. AWWU plants in Eagle River and Girdwood . Discharge to fresh water . Provide “secondary” treatment (physical and biological processes) . Permits administered by Alaska Dept of Environmental Conservation. Section 301(h) of the Clean Water Act recognizes that marine discharges are different. ■ ~28 mgd discharged to Cook Inlet at Point Woronzof. ■ Permitted by US EPA since 1985; re-authorized in 2000 ■ All flow gets primary treatment & disinfection ■ Federal permit subject to Endangered Species Act compliance The 301(h) permit depends on rapid mixing and dispersion of discharge. Tidal velocities can exceed 8 feet/sec. Tides travel upstream as much as 20 miles, then . Flow outward for 23 miles . Knik Arm waters refreshed in days >30 years of monitoring shows no adverse effects: . Plant meets all permit conditions. Effluent yields very low levels of trace contaminants. Background trace metals from glacial silt. No measurable Water Quality effects. No toxicity in effluent bioassays. No bioaccumulation of toxic materials. No sediment effects at outfall. No sediment contamination from outfall. Asplund primary effluent = secondary effluent elsewhere. AWWU is proud of our role in protecting aquatic wildlife in Cook Inlet. Cook Inlet beluga whales are considered an Endangered “Distinct Population Segment” 700 Cook Inlet Beluga Whales 600 500 400 300 200 Abundance Estimate 100 0 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Mapping We analyzed potential effects on the endangered Modeling Cook Inlet beluga whale. Analysis The hazard of beluga whales’ exposure to contaminants is based on intensity and duration. Acute Exposure Higher levels of exposure could lead to disease, disorientation, infertility, or death Level of Exposure Safe – No effect Chronic Exposure Duration of Exposure: Minutes Days Months Years Summary of Findings in the BE . 30 years of monitoring shows no ill effects . Body burdens of CIBW less than other stocks . Effluent contains low levels of contaminants . Effluent is rapidly mixed and dispersed . Refreshment of Knik Arm is reduced in winter but… Water column never more than 0.1% effluent . Maximum duration of exposure near outfall: minutes . No hazard of acute exposure for whales near the outfall. Hazard from wastewater in areas of chronic exposure is negligible. Conclusion: No adverse effects on beluga whales associated with Asplund discharge AWWU operates and maintains a fortune in “buried treasure”. The public expects reliable infrastructure. .The faucet works. .The toilet flushes. .The rates are fair. -------------------------------- I’m a happy customer. Buried pipelines don’t last forever. What goes around comes around. Long term need for investment in pipe replacement is daunting. Water main breaks are a fact of life. Pipe failure leads to expensive emergency response. We prioritize investment based on relative risk. Strategy: Proactive condition assessment / monitoring We use sophisticated tools to assess the condition of pipes in the ground. Better information lets us focus our repair work. Reliability depends on long term investments in infrastructure maintenance and replacement. Replacement costs: >$8 billion . Average Service Life: ~75 years . Current capital program: $65,000,000 annually . Current rate of replacement: 0.8% annually . It will take 125 years to cycle through. We need to address critical needs in a timely way. Clearly Responsible Finances Anchorage Water and Wastewater Utility 2018 Water and Sewer Rate Comparison Other Utilities Typical Single Family Residential Monthly Bill (usage based on 6,000 gallons per month) $180 Water Sewer $170 $160 $150 $140 $130 $120 $110 $100 $44.12 $78.58 $56.33 $76.35 $90 $65.61 $71.86 $63.28 $94.23 $80 $59.09 $45.70 $70 $51.42 $60 $32.81 $50 $40 $77.25 $62.52 $30 $55.23 $60.63 $51.19 $49.45 $52.53 $54.69 $52.73 $41.21 $20 $35.66 $36.17 $10 $- Affordability Index Comparison Annual Combined Water and Sewer Rate as a Percentage of Regional Median Household Income in 2016 Dollars 3.50% 3.00% 2.97% 2.50% 2.56% 2.34% 2.34% 2.00% 2.14% 1.92% 1.86% 1.79% 1.50% 1.58% 1.61% 1.44% 1.49% 1.00% 0.50% 0.00% Utility Rates = Cost of Utility Services Breakdown of a 2018 monthly single-family water & sewer Utility bill: 2% = Cost of raw water / Cost to acquire water from Eklutna Lake. 4% = Chemicals & Supplies / Treatment of wastewater & drinking water purification 8% = Net Income / Building equity for future investment 16% = Other Utility & Operating Costs / Utility operational expenses 30% = Labor / Wages and benefits for Utility employees 40% = Infrastructure – the Utility’s largest rate component 100% Financial sustainability requires annual rate increases. 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Water 2018 Wastewater 2018 Long term financial planning involves a host of indicators. Debt to Asset Value Total Debt Service Coverage 2.00 75% 65% 1.80 55% 1.60 45% 1.40 35% 1.20 25% 1.00 15% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0.80 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Water Wastewater 2018 Target Water Wastewater Minimum % of CIP Funded with Equity Debt Service as a % of Revenues 40% 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 5% 10% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Series1 Series2 Series3 Water Wastewater Target Our goal is a consistent Debt to Equity Ratio (Debt %) 75% 70% 65% 60% 55% 50% 45% 40% 35% 30% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Water Wastewater Target Debt % AWWU is an economic engine of the community. $117 Million in Revenue in 2017. Capital Program: >$65 Million annually. Net Plant >$900 Million . Replacement Cost >$8 Billion . We buy >$22 Million in Goods and Services Annually . Contribute $14 Million to the General Fund Annually . PILOT - “Municipal Utility Service Assessment” – MUSA . AWWU’s MUSA contribution > than four times the top taxpayer (GCI) . AWWU’s MUSA contribution > than top 5 MOA taxpayers, combined! Clearly Professional Workforce The staff of the Utility is focused on the following strategic goals: 1. Be responsive to the needs of the community; 2. Be the model of innovation and efficiency in service to the public; 3.
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