Petersburg utility director Karl Hagerman told borough assembly members last week he doesn’t think some of the upgrades that would be funded by Proposition 4 are necessary. Unfortunately, the ones he disagrees with are mandatory.
“There’s a fine line between having the cleanest water possible at whatever cost and having clean water or safe water that doesn’t cost the rate payers an arm and a leg,” he said.
He said there’s no way around it though – they have to be done. The borough is required to change the way it deals with its wastewater. Hagerman told the borough assembly at a meeting on September 16 the change is mandated by the state government – or the federal government – it seems the two entities can’t agree on who’s actually in charge. Either way, he said, it can’t be ignored.
“The likelihood of them backing off at this point in time is very remote,” he said. “It’s not happening. We pushed back pretty hard as we were leading up to this process, and we just didn’t get really anywhere.”
Right now, the borough filters the wastewater, taking out large solids and sludge, and pumps what’s left way out into Frederick Sound, where it’s diluted by ocean water. Hagerman says that works: testing shows bacteria levels aren’t higher than they should be. However, new requirements mean the department will have to create a bacteria-killing disinfection system. That change would cost upwards of $10 million. The borough is asking for nearly $20 million to cover wastewater upgrades. Voters will decide in next week’s election whether to take on that debt.
The other $10 million would go to water and sewer line repairs around town. Hagerman said those projects need to be done, since many have already been deferred for years.
The debt would come in the form of a low-interest 1.5% loan from the state. And it’s possible that part of the cost could be covered by grants. Hagerman told the assembly the department is looking into other sources of funding.
“Hopefully, we’ll find a grant for this large project,” he said. “Congress seems to be listening. Ketchikan got one. I think Wrangell also received some money to handle their disinfection project. So I think that’s the obvious source.”
However, much of it would be paid by utility customers over the next 20 years. Water and wastewater departments are separate, and the cost of water main upgrades isn’t too high, so water bills shouldn’t go up noticeably. Wastewater bills would go up though, likely by a lot. After the meeting, Hagerman told KFSK that the average household in Petersburg pays $40 or $50 a month for wastewater. Over the next dozen years, if the proposition passes and the borough doesn’t find grants and other funding, it’s possible that number could double. Hagerman said that’s just a guess, and that number is just for residential customers. He said each service level could be impacted differently. The department is currently conducting a rate study to get a more accurate idea of the increase.
Hagerman said if the proposition doesn’t pass, the projects will be automatically deferred since there won’t be any way to fund them. He said that could create serious problems with some of the sewer line repairs needed around town.
“Worst case scenario is that we have major failures in our system and waste wastewater stops moving to the treatment plant,” he said. “If it stops moving to the treatment plant, it doesn’t stop, it’s going to come out someplace, and that will have an impact on public health, to have raw sewage coming out any place other than the treatment plant.”
If Proposition 4 doesn’t pass, Petersburg wouldn’t be able to comply with the new mandated disinfection system. Hagerman said that would violate the federal Clean Water Act, which would result in fines.
“Those fines can be up to $25,000 per day, per violation, and jail time for the first violation,” he said. “If it happens again, they get worse.”
That jail time would be for employees at the treatment plant and the people who supervise those operators, including, eventually, assembly members.
Voters choose whether to take on new debt when they vote on Proposition 4 in next month’s municipal election.
Election day Tuesday, Oct. 1st. Early voting takes place from 11 a.m. until 3 p.m. downstairs in the municipal building through this Friday. Polls will be open at the community gym from 8 a.m. until 8 p.m. on election day.
