Loading...
HomeMy WebLinkAboutAgenda - 04-29-2004-2a) ®WA�� ORANGE WATER & SEWER AUTHORITY Qaalit , Service .Since 1977 April 20, 2004 HAND DELIVERED Mr. John Link, .Jr. Orange County Manager Post Office Box 8181 Hillsborough, North Carolina 27278 SUBJECT: Information for April 29, 2004 Assembly of Governments Meeting Water Reuse Dear .John: Please include the enclosed summary information about OWASA's proposed water reuse system in the agenda package for the April 29, 2004 Assembly of Governments meeting, Mark Marcoplos, OWASA Board Chairman will provide opening remarks and he will introduce Patrick Davis, OWASA Sustainability Administrator who will make a brief presentation about our proposed water reuse system. We look forward to presenting information about this very important and exciting new program, Very truly yours, D' I (- � Ed Kerwin Executive Director Enclosure EK/ao c: (w /encs,) OWASA Board of Directors (w /encs.) Nancy Suttenfield, UNC Vice Chancellor for Finance & Administration (w /encs.) Carolyn Elfland, UNC Associate Vice Chancellor for Campus Services (w /encs.) Ray DuBose, UNC Energy Service Director 400 Jones Ferry Road Equal Opportunity Emplo ;rev voice (919) 968 -4421 PO Box 366 Printed on Recycled Paper FAX (919) 968 -4464 Carrboro, NC 27510 -0366 ivn -iv ou,asa org OWASA AND UNC- CHAPEL HILL PROJECT BRIEF: PLANNED WATER REUSE SYS'T'EM Background Orange Water and Sewer Authority ( OWASA) and the University of North Carolina at Chapel Hill (the University) plan to jointly develop a new water reclamation and reuse system that will provide many important benefits to the community and the environment Highly treated "reclaimed" water from OWASA's Mason Farm Wastewater Treatment Plant (WWTP) would initially be used to meet some of the major nonpotable (non - drinking) water demands on the University's main campus. The reuse system will be expandable to serve other OWASA customers in the future where it is practical to do so. The reclaimed water system would be financially self - supporting, and the University would pay its full and fair share of the cost of reclaimed water service. The proposed use of reclaimed water demonstrates OWASA's and the University's shared commitment to meeting long -term water and sewer service needs in a more sustainable manner. OWASA and the University partnered on a recent study to determine the feasibility of water reuse Based on the findings of the Water Reclamation and Reuse Feasibility Study (Hazen and Sawyer, June 2003) and extensive follow - up pilot studies, OWASA and the University have determined that it is technically, economically, and environmentally feasible to use reclaimed water to meet many nonpotable water needs on the main campus. When completed, the reclaimed water system would be the largest and most diverse water reuse system in the State. What Are the Strategic Benefits of Water Reuse? Water reuse offers many important benefits to the Carrboro — Chapel Hill community, the University, and the environment The use of reclaimed water will: • Allow OWASA to meet nonpotable water needs in a cost - effective manner while freeing up the community's valuable drinking water supply and treatment capacities to meet essential needs; • Lower the risk for all customers during water shortages caused by future droughts; • Optimize use of locally - controlled renewable resources; • Defer or eliminate the need for certain long -term capital improvements due to reduced demand for potable water; • Defer or eliminate the need to develop costly facilities necessary to obtain water from Jordan Lake; and • Reduce the discharge of pollutants to streams April 2004 What Are the Key Conclusions From the Studv? Key findings of the water reuse feasibility study are: • Effluent from OWASA's WWTP will consistently and reliably meet the State's reclaimed water standards; • With additional on -site treatment by the University, reclaimed water from OWASA will be suitable for use in the University's cooling tower and boiler operations It can also be used for irrigation and toilet flushing; • The University's on -site water treatment costs will increase (perhaps by up to 50 percent) if reclaimed water' is used in the cooling towers and boilers; and • Developing a reclaimed water system is more cost - effective than developing the facilities needed to withdraw and use water from Jordan Lake. Tl+e high grrallty effluent front the Mason Far °n+ GIIVTP skorrld no longer be viewed as rvastervuter. It wi!! be ar+ increasingly vahrable source of rvater for the firtrtre. What Are the Projected Capital Costs? The system will include a reclaimed water pump station and storage tank at OWASA's WWTP and up to five miles of new reclaimed water lines (see schematic on the last page).. The first phase of the system will serve the southern part of the campus and cost about $8 million to build At startup, the initial reclaimed water demand will be about 0.5 to 0.75 million gallons per day (mgd), which is around 5 to 7 percent of OWASA's projected total water demands in 2007 In later phases, reclaimed water lines will be extended to serve the northern part of the campus. By 2026 the demand for reclaimed water is projected to be 2 8 mgd, or about 15 percent of the projected total water demand. What Are the Next Steps? In February 2004 OWASA and the University approved a Letter of Understanding that sets forth the guiding principles and general framework for developing, operating, and financing the planned water reuse system. The goal is to have the system in operation by July 1, 2007, A more detailed contract will be developed in the coming months. Extensive engineering services will be required to complete the final design and manage construction of the reclaimed water system. OWASA is pursuing supplemental Federal and State grant funding for the project. To reduce project costs and construction impacts, the University will install some reclaimed water lines in conjunction with campus construction projects. The first section of the reclaimed water distribution system will soon be under construction as part of the new utility tunnel currently under construction on the south side of campus. KEY GUIDING PRINCIPLES IN THE LETTER OF UNDERSTANDING BETWEEN OWASA AND THE UNIVERSITY FOR THE PLANNED WATER RECLAMATION AND REUSE SYSTEM In February 2004 OWASA and the University of North Carolina at Chapel Hill approved a Letter of Understanding that commits both parties to move forward with plans and final arrangements to develop, operate, maintain, and finance a new water reclamation and reuse system that will initially serve the University's main campus, The key guiding principles in the Letter of Understanding are: • The reclaimed water system will be financially self - supporting. No costs of the system will be recovered through potable (drinking) water rates or fees Consistent with the requirements of the Agreements of Sale and Purchase between OWASA, the Towns of Chapel Hill and Carrboro, and the University, the reclaimed water rates, fees, and charges will fully recover all of OWASA's costs associated with constructing, operating, maintaining, and managing the water reclamation and reuse system, In other words, reclaimed water rates will reflect the "cost-of- service" for the reclaimed water system, and the University will pay its full and fair share of the cost of reclaimed water service. • The University will commit to use reclaimed water rather than potable water in specified amounts and at specified facilities on the main campus. • OWASA will provide reclaimed water of acceptable quality and in the specified amounts needed at the targeted demand centers on the main campus. • The initial reclaimed water system will be designed and constructed to have excess capacity available to serve non - University customers where practical to do so in the future OWASA will have sole authority to approve extensions of and connections to the reclaimed water system. • OWASA will determine the rates, fees, and charges for reclaimed water service. • Both parties will work together to complete the planned system on or before July 1, 2007, SOME RELATED FINANCIAL ISSUES AND IMPLICATIONS OF WATER REUSE • By substituting reclaimed water for demands previously met with potable water, OWASA's drinking water sales volumes and revenues will initially decline. This is expected to require an offsetting increase in the drinking water rates charged to all water customers, including the University which is OWASA's largest customer. This kind of revenue effect will occur with any water conservation measure, It is also similar to the revenue experience of Orange County's solid waste management program — as recycling increases tip fee revenues decline. Based on a preliminary analysis, the initial projected effect on potable water revenues could be the equivalent of about an 8 to 9 percent increase above the current effective potable water rate, or a 3 to 4 percent increase in the combined monthly water and sewer bill for a typical residential customer, of OWASA That is about $1.80 more per month for the typical single family residential customer. The effect on potable water system revenues and rates will depend on several factors, including the reclaimed water and potable water demand levels, the portion of General and Administrative (overhead) expenses recovered through reclaimed water rates and fees, and the amount of Federal and State grant funds that may be received for the project. Although potable water rates will need to be increased as a result of water, reuse or other large -scale water conservation measures, those rate increases must be weighed against the many important benefits that reuse has to offer all OWASA customers and the environment. OWASA expects that future potable water rates would be lower than they would otherwise be without reuse, since several water supply and treatment capital improvements projects can be deferred or possibly deleted as a result of reuse. Nutrient discharges to Morgan Creek will also be lower than they would be without reuse THE IMPORTANCE OF WATER REUSE AS A WATER SUPPLY STRATEGY The graph below illustrates the effects of the planned water reuse system on OWASA's total raw water demand; i e, on the need to withdraw water from die Cane Creek/University Lake /Stone Quarry reservoir system The solid diamonds represent actual raw water demand since 1980; the dashed line is the "expected" demand curve previously reported in OWASA's 2001 Comprehensive Water and Sewer Master Platt, the solid green and red lines are the revised demand projections (with and without reuse) based on more recent forecasts, including detailed University development plans that were not available in 2001. The solid black step- shaped lines represent the capacity of OWASA's reservoir system under existing and future stages of development and under estimated 30 -year recurrence and drought -of- record (2002) conditions the capacity under "Existing System" is the estimated combined 30 -year safe yield of Cane Creek Reservoir, University Lake, and the existing Stone Quarry Reservoir with existing raw water pumping and transmission capacities. The capacity of "Quarry Pump Improvements" shows the estimated combined 30 -year safe yield of Cane Creek Reservoir, University Lake, and existing Stone Quarry Reservoir with existing raw water transmission capacities and the planned upgrade of the Stone Quarry Reservoir pumping station. This new pump station will allow us to more effectively use the supply available from the existing Stone Quarry Reservoir. The capacity under "3 BG Quarry" shows the estimated combined 30 -year safe yield of Cane Creek Reservoir, University Lake, and the enlarged Stone Quarry Reservoir (capacity of 3 billion gallons) with proposed long -term raw water pumping and transmission capacities. The green and red stars indicate the dates at which average demands are expected to equal the system capacity under 30 -year drought conditions — with and without reuse, The horizontal distance between the stars illustrates that reuse can defer the need for an additional water supply source, such as Jordan Lake, by approximately 10 to 12 years. With increased water conservation and reuse, under most hydrologic conditions OWASA's existing water supply sources may be adequate to meet the projected demand for water between now and the time the expanded Stone Quarry Reservoir comes on -line in the mid- 2030s. 20 I 1101' m 16 C- 14 O U) 12 C 0 10 F= Raw Water Supply, Demand, and Potential Deficits Under 30 -Yr Safe Yield and Drouqht- of- Record Conditions Existing! Quarry Pump Improvements 3 BG Quarry 70 -Yr Safe Yield With Reuse Without Reuse -' "' Master Plan "Expected Growth" Drou�tit -- 30 -Yr Safe Yield _ 2002 Drauaht ..✓'- _ Jw"- &�+ .lordan Lake (or other supply alternative) Needed When Avg Day Demand =30-yr Safe ®� moo Yield A 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 1 — { I v ° a � � C D r,- E .gyp i .F.P ^. 1 m of _ � •(—' = v°, II tL C 0 d 1 u0 �a� E m hY I \WV. J rare �. c ! '\ o" 1 ❑ rJ o fol vV A -� / /� 1 A' o o ��� mop .� o CL M CZ 0. o �y rn \ 1 � \v o � 1� ._ N .0 _ O` °- r Ooov LL i Y p] 2 m 2 m m m m .0 vii v. = 6 T 1 36 c v U