GFOAz 42nd Annual Conference March 9, 2006 Sedona, Arizona

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GFOAz 42nd Annual Conference March 9,
2006Sedona, Arizona
Water Reclamation/Reuse A Solution to Arizonas
Water Issues?

• Bradley M. Hill, R.G.
• Water Resources Manager
• City of Peoria
• Utilities Department
• Randy Pellatz, P.E.
• Assistant Utilities Director
• City of Flagstaff

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Overview

• Introduce reclaimed water
• Look at its history and future
• Nationwide ? Arizona ? Peoria Flagstaff
• Understand why it is important to Arizonas
  future
• Explain why finance professionals need to be aware

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Reclaimed Water What is It?

• .Recycled
• .Reused
• .Reclaimed
• .Effluent

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Basics of Reclaimed Water

• 3 separate legal classes of water
• Surface water
• Groundwater
• Reclaimed water
• Product of a water reclamation or wastewater
  treatment facility

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History

• Cities just wanted to get rid of it
• Seen as a burden rather than a resource
• 1979 Peoria agreement with Tolleson
• Send far away out of sight, out of mind
• No financial or water resources benefit
• Sub-Regional Operations Group (SROG)
• Phoenix, Scottsdale, Glendale, Mesa Tempe

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Today the Future

• Stretch drinking water supplies by using in
  places where potable water not needed
• Last great water resource frontier under local
  control
• Next cheapest source of water
• Recharged or directly delivered
• Growing supply of water

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Nationwide

• WateReuse Association
• Non-profit, dedicated to advancing beneficial and
  efficient use of water resources
• Starting an Arizona Chapter
• WateReuse Foundation
• Funds research
• Reuse, recycling, reclamation, desalination
• California, Florida, Arizona
• Leaders in maximizing reuse

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National - Reuse Examples

• Florida
• 1970s St. Petersburg 1st water reclamation
  system for golf, parks, schools lawn
• California
• 1976 Orange County sea water intrusion
• 1980s Irvine Ranch 1st interior use

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Arizona

• Why Arizona?
• Arid southwest
• Environmental stewardship
• 10 of water available is reclaimed water
• Treated wastewater use in metro Phoenix
• 55 is directly reused
• 16 is recharged for long-term
• 71 is actively utilized or reused

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Arizona

• Municipalities water resource portfolios

Peorias long-term water supply 33 reclaimed
water either recharge or direct
Tucsons 50-year plan 30 reclaimed water
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Examples of Uses in Arizona

• Chandlers Intel
• Tempes SRP Kyrene Powerplant
• SROGs Palo Verde Nuclear Powerplant
• - 54 Million gallons per day (MGD)
• Peoria
• Jomax WRF (0.75 MGD)
• Beardsley WRF (3 MGD, up to 16 MGD)
• Butler WRF in 2009 (11 MGD)
• Flagstaff

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History of Flagstaff Sewer System Reclaim
1899 1973 Sewage piped away for sanitary
reasons, discharged to Rio de Flag. 1973
Continental Golf Course 2 million gallons a
day 1993 Reuse for government and other large
irrigation customers expanded to 3 million
gallons. 2003 - Additional golf course,
industry, expanded NAU, commercial customers,
expanded demand to 4.5 million gallons per day.
 
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Reuse in Flagstaff

• Car wash
• Golf courses
• Parks and athletic fields
• Open grass areas City Hall, businesses
• Construction water
• Wetlands
• SCA Tissue (industry)
• Wildlife watering
• Maintain lakes
• Residential
• Artificial snow???

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Flagstaff Water Use
PEAK DAY 24
ANNUAL USE 22
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Flagstaff Reclaimed Water Rates (per 1000 gallons)

• Commercial, no main ext. 1.04
• Commercial, w/ main ext. 2.23
• City 2.12
• Manufacturing 2.03
• NAU 0.92
• Off peak (1.00/ 50 MG, 0.80/ 50 MG TO 0.20 MG)
• Residential 1.65
• Self-loading stations 1.00
• Based on 75 or 35 potable rate (if ext.)

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Lessons Learned 33 Years of Reuse in Flagstaff

• Waters of the United States vs Reuse
• Need for education
• Cross connection control dye tests
• Political limitations to use reuse
• Rate reduction to encourage use
• Large lake users using too much
• Wetlands destroyed
• Regulations different agendas
• Areas outside jurisdiction

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Lessons Learned 33 Years of Reuse in Flagstaff

• Are fish safe to eat?
• Existing residential cost prohibitive
• Potable irrigation more profitable?
• Never undersize the reclaim water main
• New development extensions
• How come government can irrigation and I cannot?

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Issues Surrounding Use of Reclaimed Water

• Public perception
• Water quality
• Costs

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Public Perception

• Why important?
• Yuck factor
• General lack of knowledge about water
  wastewater issues
• Showers to flowers
• More positive message
• Los Angeles toilet to tap 2000
• Concern with reclaimed water being used to
  recharge aquifers from which drinking water will
  eventually be drawn, became a political issue
• 55 million in infrastructure stranded
• San Diego toilet to tap 1999
• Imported water became more affordable,
• became a political issue

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Water Quality / Regulations

• Different classes of reclaimed water
• End users needs
• Irrigation, industry, etc.
• Salts, heavy metals, etc.
• Is it clean enough?
• Pharmaceuticals, personal care products, etc.
• Dye tests to ensure there is no cross-connection
  between potable and reclaimed systems

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Ensuring Safety

• Identification with purple pipes and signage

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Financial Aspects

• Costs of reclaimed water?
• Discharge by-product of existing WRF
• Already paying to be treated
• Recharge or directly deliver?
• Infrastructure costs
• - Treatment distribution

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Financial Aspects

• Rate determination
• of potable vs. cost-of-service rate study
• Other factors to discount?
• Rates
• Peoria rate study 30 of potable
• Phoenix policy 80 of potable
• Chandler policy - SRP rates
• SROG subsidize rate for nuclear power
• Tucson rate study, then discount 20

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Conclusions

• Maximizing use of reclaimed water is pivotal to
  Arizonas water future
• Developing sustainable water supplies
• A water resource that grows
• Public perception buy-in is pivotal

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Conclusions(continued)

• Were we successful explaining why finance
  professionals need understanding of these issues?
• Will it ever snow or rain again? Global Warming
  or 40-year drought cycle