PUBLIC WATER AND SEWER - Beck Consulting · portions of the Hillside area. In 1982, the Municipal...

PUBLIC WATER AND SEWERPUBLIC WATER AND SEWERPUBLIC WATER AND SEWERPUBLIC WATER AND SEWER 1 Issues, Goals, and Choices Report

PUBLIC WATER AND SEWER

Introduction

This chapter of the Issues, Goals and Choices report presents public water and sewer infrastructure serving the Hillside and the programs in place for extension of AWWU facilities in allowable areas. The chapter also addresses policies and practices regarding connection to available mains.

Existing Infrastructure

Water and sewer systems can be either private or public, defined by who they serve. Public systems are defined as water or sewer systems that serve multiple single family residents or the general public regardless of ownership. Private systems are defined as systems that serve a single residence. The Anchorage Hillside area is served by both private and public water and sewer systems. Private systems, such as on-site sewer septic systems and water wells, are being addressed in Section 4 of this report, On-Site Water & Wastewater. Public water and sewer is the focus of this chapter. Regulations are set in place that define the location of public water and sewer boundaries. The Anchorage Municipal Assembly approved and adopted a plan in 1982 which governs the location of where piped public sewer can be served. The Anchorage Water and Wastewater Utility (AWWU) adheres to this boundary in the extension of their sewer system. AWWU also has adopted a policy that they will not extend their public water system into areas of the Hillside not designated for public sewers.

“I bought some instant water one time but I didn’t know what to add to it.”

Where to serve and where not to serve?

Regulations govern public water and sewer boundaries. The Regulatory Commission of Alaska (RCA) has authorized Anchorage Water and Wastewater Utility (AWWU) as the only utility to provide wastewater service anywhere within the boundary of the Municipality. However, numerous water companies, public and private, have received RCA approval for well-defined areas within the Municipality. AWWU and Potter Creek Water Company hold such certificates for small portions of the Hillside area.

In 1982, the Municipal Assembly approved the Hillside Wastewater Management Plan (HWWMP), specifically excluding significant portions of the Hillside from public wastewater utility service. Maps of the HWWMP delineated the “Recommended Maximum Perimeter of Public Sewerage” (See map on page 9). Areas outside the recommended maximum perimeter were designated for on-site wastewater disposal systems. Amendments to the original ordinance (13 amendments through 2006) have slightly altered the boundaries between public sewerage and on-site systems. In all cases, perimeter changes have been initiated by affected property owners, and approved by the MOA Assembly.

AWWU policy is to provide water service on the Hillside only where public sewer service is allowed by the HWWMP, and only if public sewerage is available. This policy follows the recommendations of the HWWMP and provides for a higher level of protection of public health where on-site systems may be compromised.


Public Water

Several types of water systems serve Hillside public water needs. These public water systems can be further classified into three categories:

(1) community (2) non-transient non-community (3) transient non-community.

These definitions match terms established by the U.S. Environmental Protection Agency and the Alaska Department of Environmental Conservation (ADEC). See the following diagram for how water systems are broken down by type.

There are 39 public water systems located in the Hillside District Plan area. Of these, 19 are community, 8 are non-transient non-community, and 12 are transient non-community. This next section describes these systems types and examples of where they are found on the Hillside.

Other Water Systems – Hydrant Service Areas

Another special type of water service area found within the Hillside District area is an AWWU hydrant limited service area. The only one (AWWU Hydrant Limited Service Area Certificate No. 122) is located between De Armoun Road and Rabbit Creek Road. Water service is available to this area for purposes of providing fire hydrant service. Water does not serve individual houses within hydrant limited service areas.

Non-transient

Non-community

Transient

Non-community

Examples include Anchorage Water and

Wastewater Utility and Potter Creek Water

Company

“On-site Services”

Private/ NonPrivate/ NonPrivate/ NonPrivate/ Non----publicpublicpublicpublic

Community

PublicPublicPublicPublic

Valli Vue Water System is an

example

Private Community Private Community Private Community Private Community

System/ NonSystem/ NonSystem/ NonSystem/ Non----UtilityUtilityUtilityUtility

Typically institutions, Typically institutions, Typically institutions, Typically institutions, such as the zoo, golf such as the zoo, golf such as the zoo, golf such as the zoo, golf course, and churchescourse, and churchescourse, and churchescourse, and churches

Water SystemsWater SystemsWater SystemsWater Systems

Water systems are classified according to rules developed by the U.S. Environmental Protection Agency (EPA) and each state. Water systems fall

into two broad categories: public and non-public.

Examples include Huffman Elementary & Amazing Grace Church

Examples include the Alaska Zoo and

Anchorage Golf Course

Typically Typically Typically Typically private and private and private and private and

public public public public scscscschoolshoolshoolshools

Public UtilityPublic UtilityPublic UtilityPublic Utility

Issues, Goals, and Choices Report PUBLIC WATER AND SEWERPUBLIC WATER AND SEWERPUBLIC WATER AND SEWERPUBLIC WATER AND SEWER 4

Non-transient

Non-community

Transient

Non-community

Examples include

Anchorage Water and Wastewater Utility and

Potter Creek Water Company

Community


Valli Vue Water System is an example

Private CommunitPrivate CommunitPrivate CommunitPrivate Community y y y

System/ NonSystem/ NonSystem/ NonSystem/ Non----UtilityUtilityUtilityUtility

Public UtilityPublic UtilityPublic UtilityPublic Utility

Community Water Systems

Community water systems can be either public water utilities or private community systems. There are two known public utilities serving the Hillside study area: the Anchorage Water and Wastewater Utility and Potter Creek Water Company. There are 17 non-utility, or private, community water systems in the Hillside area. Table 1 lists all community water systems within the Hillside study area. Approximately 12,000 Hillside residents are served by water from community water systems. See adjacent figures for Public Water Utilities and for Other Public Water Systems that are non-utility. Table 5-1 – Community Water Systems in Hillside District Plan project area

Community Water Systems

1 Alpine Woods Subdivision 2 Borealis Alpha Water System 3 Cohoe Subdivision 4 DeArmoun Homeowners Association (HOA) 5 Eagle Crest Condominiums 6 Greenbrook Subdivision 7 Hillside Park S/D 8 Homestead Hills 9 Lake O' The Hills East 10 AWWU (Public Utility) 11 Omega Homeowner's Association 12 Potter Creek Water Company (Public Utility) 13 Sky Ranch Estates 14 Sky Ranch Estates - Secondary Source 15 Spring Forest HOA 16 Sun Valley Heights North HOA 17 Sun Valley Heights South 18 Valli Vue Water System 19 Williamson Subdivision

Community water systems are defined as serving at least 15 connections

by year-round residents or regularly serving 25 year-round residents. – ADEC

Issues, Goals, and Choices Report PUBLIC WATER AND SEWER PUBLIC WATER AND SEWER PUBLIC WATER AND SEWER PUBLIC WATER AND SEWER 5

Non-transient

Non-community

Transient

Non-community

Community


Examples include Huffman Elementary & Amazing Grace Church

TypicallyTypicallyTypicallyTypically pr pr pr private and ivate and ivate and ivate and

publicpublicpublicpublic schools schools schools schools

Non-transient Non-community Water Systems

Examples of these systems types include both private and public schools. Private schools are typically affiliated with a church. There are 8 non-transient non-community water systems in the study area. Approximately 3,100 people are served by this type of water system. See the figure entitled Other Public Water Systems (Non-Utility).

Table 5-2 – Non-Transient Non-community Water Systems in Hillside District Plan project area

Non-Transient Non-community Water Systems

1 Alaska Children's Services 2 Amazing Grace Lutheran Church and School 3 Anchorage School District (ASD) Bear Valley 4 ASD Huffman Elementary 5 ASD O'Malley Elementary 6 Anchorage Grace Church and School 7 Seventh Day Adventist School 8 St. Elizabeth Ann Seton Church and School

Non-transient non-community systems are defined as serving at least the same 25 non-residential individuals during six months of the year. – ADEC


Non-transient

Non-community

Transient

Non-community

Community


Typically institutions, Typically institutions, Typically institutions, Typically institutions, such as the zoo, golf such as the zoo, golf such as the zoo, golf such as the zoo, golf course, and churchescourse, and churchescourse, and churchescourse, and churches

Examples include the Alaska Zoo and

Anchorage Golf Course

Transient Non-community Water Systems

Examples of these types of systems include churches and schools, and in the case of the Hillside, it also includes the zoo and the golf course. There are 12 non-transient non-community water systems in the study area. Approximately 1,150 people are served by this type of water system. See the figure entitled Other Public Water Systems (Non-Utility).

Table 5-3 –Transient Non-community Water Systems in Hillside District Plan project area

Non-community Water Systems

1 Alaska Zoo Well 2 Anchorage Golf Course 3 Chapel Of The Cross 4 Hanshew Heights S/D 5 Hillside Baptist Church

6 Korean United Methodist Church

7 New Grace Christian Church

8 Rabbit Creek Community Church

9 Southside Church of God 10 Greek Orthodox Church 11 Trinity United Presbyterian 12 United Pentecostal Church

Transient non-community systems are defined as regularly serving at least 25 non-

residential individuals (transient) during 60 or more days per year. -ADEC


Public Sewer

AWWU presently provides public sewer service to part of the Hillside. The area AWWU serves is dictated by an amended boundary based on the Hillside Wastewater Master Plan in 1982. Similar to water systems, sewer systems can also be categorized into two main types: private and public. Private sewer systems, such as on-site septic systems, holding tanks, and outhouses, are addressed in Chapter 4. See the figure entitled All Public Sewer Systems.

Public sewer systems include utilities such as AWWU and non-utility systems such as schools and churches that provide service to groups of individuals.

--“Keep public sewer expansion in check; don’t push sewer service into areas where large lot development is preferred by local community” --“Public water or sewer may be needed to address existing problems on the Hillside.”

– Comments from Hillside Residents


Proposed Water and Sewer Improvements

Water and sewer service are basic infrastructure needs. There are on-going efforts to install new public and private water and sewer infrastructure. It’s important to note that demand drives public water and sewer development. The adjacent figure shows water and sewer projects proposed by AWWU and private parties/developers. The private development projects depicted in the figure are projects that have not yet been constructed. The proposed AWWU water and sewer development is also depicted on the figure, as detailed in the AWWU water and wastewater master planning documents, most recently published in 2005 and 2006 respectively. Projects currently under construction are not depicted.


Extending Public Service

The Hillside Wastewater Management Plan passed in 1982 established a boundary where public sewer services may be extended, and where they may not. This boundary is identified in the Plan as the “Recommended Maximum Perimeter of Public Sewerage”. This boundary area is shaded in green on the adjacent figure. If a parcel currently is outside this boundary, it cannot be served by AWWU Wastewater facilities, based on

Anchorage Municipal Code (Title 21.05.120), unless the Municipal Assembly formally modifies the ordinance to change the boundaries.

As part of the Hillside District Plan, the boundary may be revised as part of the study, and if revisions are warranted, they will be recommended. Once the Hillside District Plan is adopted by Municipal Code, AWWU will be required to abide by the new Recommended Maximum Perimeter of Public Sewerage that will be contained in the new plan.

Many Hillside residents, served by on-site wells and septic systems, have expressed concerns or interest regarding requirements for connecting to AWWU water and wastewater services. As such, provided in the following sections is a summary of how AWWU’s water and sewer service can be extended.

There are three basic programs under which AWWU extends its water and sewer systems. These are:

1. Water or sewer special assessment improvement districts formed by interested property owners

2. Utility capital improvements called for in AWWU master planning efforts 3. Developer-installed water and sewer systems.

Table 4 describes each of these processes.


Table 5-4 –Programs to Extend Public Water and Sewer

ProgramProgramProgramProgram DescriptionDescriptionDescriptionDescription

Improvement DistrictsImprovement DistrictsImprovement DistrictsImprovement Districts

Common option for already-developed neighborhoods that desire to bring public water and/or sewer to their properties.

Essentially, improvement districts are formed by a group of neighborhood property owners who solicit for water and/or sewer services by petition and vote by ballot. A project becomes viable when AWWU receives favorable ballots from greater than 50% of the benefiting property owners (within the improvement district boundary) who would bear the project costs. Payment of the assessment is billed to and due by parcel owners benefited within the district boundary whether or not a parcel owner chooses to connect to the constructed line. AWWU does not require connection. AWWU provides the costs up-front to fund the project. AWWU is reimbursed by a ‘special assessment’ levied against the benefited property when project cost accounting is complete. The assessment is recorded at the District Recorder’s Office and becomes a lien against the benefit property until paid. Property owners may pay for this through private financing or may use the AWWU-provided payment with interest plan.

Utility Capital ImprovementsUtility Capital ImprovementsUtility Capital ImprovementsUtility Capital Improvements

AWWU capital improvements are typically large diameter pipelines financed and installed by the utility to strengthen service and system reliability.

AWWU presents the project and estimated assessments to the Municipal Assembly for approval. Until the property owner connects to the public water or sewer line extension, there are no charges for construction, nor may a lien or encumbrance be levied against the property (Alaska Statute 42.05.385). AWWU does not require connection.

DeveloperDeveloperDeveloperDeveloper----installed through Mainline Extension Agreementsinstalled through Mainline Extension Agreementsinstalled through Mainline Extension Agreementsinstalled through Mainline Extension Agreements

A developer pays the cost to construct water or sewer mains to AWWU.

Developers who wish to extend service to property/ies typically bear the full cost of the improvements. Other properties which front the constructed main are not required but may elect to connect and may be required to reimburse the developer a prorated share of the costs if the connection takes place within a three year period following construction. If the connection takes place after three years, then the property owner still pays the cost of construction to connect, but does not have to pay an assessment to reimburse the developer. AWWU does not require connection.


Costs Associated with Extending Public Services

Cost can be a significant factor in determining whether a person wants to connect to public water and sewer. There are a variety of factors that determine the amount of money each property owner pays if they decide to connect to public water and sewer. These factors include length of installed pipe; property size (dimensions and location relative to the pipe); amount of pipe fronting the property; number of parcels in the project; and project type. Other costs in addition to mainline assessments (the cost of the pipe construction) may include costs for service connections, decommissioning on-site systems, and special assessment collection charges. Construction costs of water and sewer mainlines vary significantly by project based on two driving factors – construction environment and construction year. Construction costs increase as environmental constraints increase. Such constraints may include high ground water, shallow bedrock, river or road crossings, and wetlands. The cost of resources required for construction also changes from year to year. Such resources include labor, fuel, and building materials.

Figure 1 depicts an example of a proposed water or sewer mainline extension. In the example, there are seven lots abutting the proposed 300 foot main. All seven lots are benefited (meaning they could connect to the main and be served) by the proposed mainline extension. Table 5 further breaks these lots down by the percentage of how much each lot would pay, depending upon which program is chosen to extend the mainline.

Figure 1 –Example of a proposed Water or Sewer Mainline

A Parcel’s ‘Benefited AreaBenefited AreaBenefited AreaBenefited Area’ = Property Frontage x Property

Depth (up to 150 feet) The benefited area for a parcel is measured from the property line that is adjacent to the water or sewer main to a depth

of 150 feet within the parcel.

PUBLIC WATER AND SEWER PUBLIC WATER AND SEWER PUBLIC WATER AND SEWER PUBLIC WATER AND SEWER 12 Issues, Goals, and Choices Report

Table 5-5 – Sample Cost to a Property Owner by Percentage of Total Project Cost for Extending a Water or Sewer Mainline

Program Type Program Type Program Type Program Type

Improvement Districts

Lot Assessable

Area 1 (sq. ft)

Lot’s Assessable

Area in Proportion to Total Project Area

Equal Assessment

Benefited Area

Utility Capital Improvement (Transmission

Main or Intertie)

Developer Installed

Lot 1 7,500 8.82% 14.29% 8.82% < 8.82% < 8.82%

Lot 2 7,500 8.82% 14.29% 8.82% < 8.82% < 8.82%

Lot 3 7,500 8.82% 14.29% 8.82% < 8.82% < 8.82%

Lot 4 10,000 11.76% 14.29% 11.76% < 11.76% < 11.76%

Lot 5 7,500 8.82% 14.29% 8.82% < 8.82% < 8.82%

Lot 6 22,500 26.47% 14.29% 26.47% < 26.47% < 26.47%

Lot 7 22,500 26.47% 14.29% 26.47% < 26.47% < 26.47%

Total Project

85,000 100% 100% 100% 100% 100%

1 Assessable area is sometimes different than lot size. For instance, if a property is 150 feet wide but 200 feet deep (like the example Lots 6 and 7 in Figure 1, the assessable (‘benefited’) area is only to a maximum depth of 150 feet.

Since 1997, there have been 18 water or sewer improvement districts in the Municipality. Figure 2 presents the actual cost (per square foot of the benefited area) property owners have had to pay in previous improvement districts. The rise in improvement district costs beginning in 2004 results from increased costs for resources such as labor, fuel, and building materials. Furthermore, new projects are increasingly taking place in marginally suitable lands, leading to environmental challenges such as high ground water, shallow bedrock, river/road crossings, and wetlands, with higher associated construction costs.


Figure 2 – Historic Improvement District Costs, $ Per Square Foot of Benefited Area

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Mar-97 Jul-98 Dec-99 Apr-01 Sep-02 Jan-04 May-05 Oct-06 Feb-08

Date of Assessment

$ p

er

SF

Be

ne

fitt

ed

Are

a

Water

Sewer

Estimated Water

Estimated Sewer

The recent improvement district costs per square foot of benefited area shown in Figure 2 above could be used as a rough-order-of-magnitude basis for a prospective water and sewer improvement. Say, for example, a property owner desired connection to a 1-acre parcel that was 200 feet wide and was adjacent to the pipeline to be constructed. The benefited area would be the width times 150 feet (the maximum depth for assessment for water/sewer improvements), or 30,000 square feet.

The unit area costs shown in the figure would be applied to the benefited area to arrive at a prospective assessment for a parcel. Recent costs of approximately $4.00 per square foot of benefited area (for sewer only) would result in a prospective assessment of $120,000 for the one-acre lot. A combination of water and sewer would be more expensive.

There are many variables that affect individual costs per lot, including:

� Size and shape of lot. � Distance to existing facilities. � Method of service acquisition (private development, improvement district,

or utility capital project). � Availability of grant funding, if applicable. � Number of lots sharing expenses. � Environmental factors – e.g., wetlands, creeks, bedrock. � Year that construction takes place. � Economic environment during time of construction. � Size and length of service connection (construction on private property is

not included). � Types of improvements required (pump stations, specialized equipment,

reservoirs, etc.).

A detailed analysis for a specific project is available by contacting the AWWU Planning office at 564-2739.


Certification of On-site System Adequacy The MOA Assembly passed an ordinance in August 1998 which requires on-site system testing and health authority approval prior to transferring a title on any property served by a well or septic system. The intent of the ordinance is to help protect public health by insuring properly functioning septic systems and adequate supply of safe drinking water.

The approval, known as a “Certificate of On-Site Systems Approval” is issued by the MOA Development Services Department Building Safety Division On-Site Water and Wastewater Program. The Approval serves as confirmation to a buyer and lending institution that the well and/or septic system serving a single family dwelling has been inspected and/or tested by a professional engineer and is found to be in compliance with the applicable standards established by the MOA.

Policies and Practices Regarding Connection to Available Mains

Based on public comment at the Hillside District Plan workshops held in March 2007, it was discovered that Hillside residents had common questions regarding public and private water and sewer service. There are many Hillside residents that have private wells and septic systems. A question commonly asked by residents of the Hillside: “Is it mandatory to connect to available public water and/or sewer when property is sold?

Neither the MOA nor the Alaska Department of Environmental Conservation (ADEC) requires a property owner to connect to available public water or sewer unless extenuating circumstances associated with the property’s on-site system (e.g. failing septic) cannot be remedied. The Municipal Code may then require connection to the public system.

AWWU staff contacted several lenders in Anchorage to learn more about their policies and practices with respect to how they address issues pertaining to connecting to public water and sewer. The feedback received indicated a general split in philosophy. Half of those surveyed indicated connection is required where the cost to construct does not cause an unfair burden to the customer. The other half do not require connection as long as the private system is certified in conformance with the ADEC. See White Paper entitled ‘Does a property Owner have to Connect to Available Public Water or Sewer to Buy the Property?’

Survey of Lender Practices

At the request of the Hillside District Plan’s Citizen Advisory Committee, AWWU staff researched the policies and practices of several lenders in Anchorage with respect to how they address certain issues pertaining to connecting to public water and sewer. AWWU contacted representatives from the following four different loan agencies:

1. Alaska Housing Finance Corporation (AHFC) 2. Federal Housing Administration (FHA/HUD) 3. Veteran’s Administration (VA) 4. USDA Rural Development (Farm Home)


One lender, Wells Fargo, was also contacted. The lenders were asked what the payoff requirements of special assessments (water, sewer, or trunk main) were and whether people had to connect to public water and/or sewer utilities rather than remain using on-site (wells and septic) systems. Table 6 summarizes the results of these conversations.

Table 5-6 – Summary of Lending Practices Regarding Requirements for Connecting to Public Water and Sewer

Insurer

Is Escrow or Payoff of Levied

Assessments Required?

Is Escrow or Payoff of Pending

Assessments Required?

Is Connection to Public Utilities Required When

Adequate Well/Septic is Available?

Alaska Housing Finance Corporation (AHFC)

Yes No No

Federal Housing Administration (HUD)

Yes No Yes*

Veteran’s Administration (VA) Yes No Yes**

USDA Rural Development (Farm Home)

Yes No No

Wells Fargo Yes No Defers to Insurer’s

Requirement

* If cost of connection is 3% or less of the estimated value of the property (FHA/HUD Lenders Handbook). **Whenever feasible (VA Pamphlet 26-7, Revised) In summary, both FHA/HUD and the VA require connection to public utilities if the cost to construct does not cause an unfair burden to the customer. FHA/HUD states it is fair when the cost of connection is 3% or less of the estimated value of the property. The VA states it is required ‘whenever feasible.’ AHFC and USDA Rural Development do not require connection to the public system as long as the private system is certified in conformance with the ADEC. All four loan agencies require payoff of levied assessments. For pending (unlevied) assessments, the four loan guarantors indicated that although they do not require pending assessments to be paid, the originating lenders ultimately make the final decision as to require pre-payment or not. Ultimately, it is up to the consumer to investigate the requirements of the lending institution with which they choose to do business.


Property Value Considerations

At the request of the Hillside District Plan’s Citizen Advisory Committee, AWWU staff researched the implications of the type of water and sewer system (public versus on-site) serving a property and the property’s value. Both the MOA Assessor’s office and a right-of-way specialist were contacted to discuss this issue. According to the Assessor’s office, there is not a direct link between land value on the Hillside and whether the property has public water and sewer or on-site systems. On the Hillside, the type of sewer and water systems does not make specific changes in land value. The value and the impact on it from the type of sewer or water system is area-specific. For instance, the appraised value of two similar lots, one with public water and sewer and one with on-site water and sewer, would be the same if all other factors were the same. The appraisal considers function and potential use, not the service type. In this case, both lots have the same function components and both have the same potential use. References

Alaska Department of Environmental Conservation (ADEC), Division of Environmental Health. As accessed May 15, 2007. Drinking Water Program webpage. Glossary for Water System Types. Webpage: http://map.dec.state.ak.us/eh/dww/

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