Brownfields through a Public Health Lens:

The fight for clean water and economic opportunity in the North Santiam Watershed

Danielle Gonzalez Economic Development Marion County, Contents of Presentation

§ Where is the North Canyon? § Economic History § Wastewater as Business Problem § Watershed-Wide Approach to Protection § Shared Obligations § Complementary Projects to Water Goals § Next Steps

2 Watershed Stewards: Canyon

2016 PSU Population estimates: Lyons/Mehama: 1,165 Mill City: 1,860 Gates: 485 Detroit: 210 Idanha: 140

3 History of Economic Woes

1990s • Endangered Species Act and Protection of Northern Spotted Owl • Northwest Forest Plan • Parks and Public Lands Omnibus and Management Act

2000s • Designation of the Opal Creek Wilderness and Scenic Recreation Area • North Santiam Canyon Economic Opportunity $15 million for the transfer of land impact study (Funds were not appropriated and no funds matriculated)

4 North Santiam Challenges

§ History § Cultural § Site readiness § Access to jobs § Viability of economy

§ City budgets Detroit, Oregon Population: 210 § Regulatory

5 Idanha, Oregon Population: 140 What issues need to be addressed?

§ Inability to permit new septic making some properties uninhabitable § Negative business climate § Underutilization and abandonment of properties § Potential irreparable damage to tourism industry § Economic viability of communities § Risk to water source to more than 200,000 residents § What is the alternative???

7 How does public health play a role?

8 Public health plays a foundational role

9 North Santiam Watershed

10 Local Business Problem

§ Too few “customers,” many end users § Invest now or invest more later § Lack of human capital to facilitate § Geological constraints (35 miles of rock) § Complex regulatory measures inhibit action § Economic development ROI value § Risk to economic viability- recreation economy

11 The North Santiam River provides water to 200,000+ daily users

City of Salem 2017 Annual Water Quality Report https://www.cityofsalem.net/CityDocuments/water-quality-report-2017.pdf

12 Regional Business Problem

§ City of Salem: Invest in water source protection or invest more later § Potential risk to downstream water users § Cost of alternative water source to the pristine North Santiam River source § Water heavy industries: Healthcare, Agriculture and Food Processing are also regional economic drivers

13 National Business Problem

§ Potential for agricultural or food product contamination § Cost for investigation and containment of illness § Individual cost of medical care due to contamination § Loss of trust in agricultural commodity

14 Honor the past and assume nothing…..

15 16 Public Health Problem to Project

17 Stewardship and distribution efficiency

Discharge and Adequate supply run-off

WATER GOAL: Highest North Santiam sustainable quality, adequate supply Water Continuum for all uses.

Flow Terrestrial management aquatic and marine habitat

Temperature and Quality 18 Balanced Watershed-Wide Approach

Diverse stakeholders aligned and advocating for each other Environmental

Projects are complementary and collaborative

Financial Cultural All concerns are valid

Shared Goal: Highest quality water that is sustainable that does not negatively impact public health 19 City Resolutions

20 Next Steps

§ Gathering of watershed partners to craft multi barrier approach § Revise OAR to allow for more cost effective methods § Complete the economic value analysis of North Santiam River § Discussions of potential of a water source protection fee to enhance sustainability

21 North Santiam Sewer Project

Danielle Gonzalez Economic Development Marion County, Oregon www.northsantiamsewer.net

22

When the water flows….

24 When the water is low….

25 Project Component: Cultural § Past failures to get to a solution § Myth busting: Belief that septic is more expensive than sewer § Cultural change in paying for a sewer bill § General wariness of government intervention § Desire for autonomous governance § Removal of Lyons/Mehama from initial project

26 Project Component: Environmental § Effect of economic growth § Accumulation of impacts and depletion of resources § Three Basin Rule- modification or variance § Reduce cost of wastewater solution § Draft modification or variation with stakeholder groups § Ensure project can be sustainable to the communities

27 Project Component: Financial § Affordability of user fees § A North Santiam Water Source Protection Fee to watershed users § Net $17.5 million over 20 years for sustainable future investment

28 How is it possible that a sewer system is cheaper than a septic system?

Local Oregon Detroit Gates Idanha Mill City Average Average

2011-2015 Median Household Income $44,792 $36,875 $29,464 $38,689 $37,455 $51,243 (MHI) 1.4 percent Annual Sewer Rate Target $627.09 $516.25 $412.50 $541.65 $524.37 $717.40 Maximum (USDA) Monthly Avg. Cost to Residential $52.26 $43.02 $34.37 $45.14 $43.70 $59.78 Consumer

MHI Source: U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates 29 The Real Septic v. Sewer Lifecycle Cost

30 Pathway to Long Term Sustainability of North Santiam Water source Future Sewer Sewer Protection Fees Upgrades and Salem and sub- Large Scale Capital users Investments

Maintenance Engineering & Capital Future Increasing Design Studies Construction Governance Governance and O&M costs Operations Grants N. Santiam User fees Setting up Sewer increase ½ Sewer user fees by Service District volume percent Bonds annually

Short Term: Mid Term: Mid to Long Term: Long Term: One to Three Years Three to Five Years Five to Ten Years Ten Plus Years 31 Viability of the North Santiam Joint Sewer Project

Recommended Estimated Value User Fee Annual Debt Recommended of Potential End User Fees Annual Servicing Total Debt Water Source 1.4% MHI Estimated Operating Ratio Constraining Capacity Load Protection Fee Value Max Range Parameters after 20 years 35-38%

$458,273 to $44 $1,309,352 $8.5 million $17.5 million $497,554

32