To the editor:
From reading the comments on Dana Damico’s article in the Patch on the recent increases in water cleaning rates, I can see there is a certain amount of misinformation and confusion about the water, wastewater and collection system billing and rates that I hope to clear up. I can’t speak for Virginia American Water, but I can discuss Alexandria Renew Enterprises.
First, let’s accept the fact that rate increases are driven solely by one thing: environmental mandates, driven by public desire for a clean and safe water environment. In November 2006, the Virginia Department of Environmental Quality (VDEQ) informed wastewater treatment plants throughout the Commonwealth that they would have to remove more nutrients—primarily nitrogen and phosphorus—from their treated water before it is released back into the Chesapeake Bay watershed.
I certainly agree with one of the comments regarding pollution sources. It’s true, agriculture runoff, leaking septic tanks, pet waste, air deposition and the destruction of wetlands that act as natural filters to contaminants also contribute to the pollution that enters the Chesapeake Bay Watershed.
But the law is the law. For wastewater treatment plants, known as “point sources,” these stringent and legally binding regulations require Alexandria Renew Enterprises to remove 62 percent more nitrogen from our treated water than before, requiring cutting edge and expensive infrastructure and technology. Contrary to what is implied in one of the comments, our facilities are not designed with the ability to get to that lower level today. Even though we employ nationally recognized best operational and business practices, it is impossible to reach the mandated removal requirements without technology and infrastructure investment.
To achieve this new level of nutrient reduction, Alexandria Renew had to embark on a massive and expensive upgrade of our already award-winning facility so we can continue to operate in compliance with federal and state mandates and not face steep fines. For us, non-compliance is not an option. Other wastewater treatment utilities in the region are confronting similar challenges, and their customers are also facing rate increases. I would like to note that in the most recent Virginia wastewater rate survey conduct by Draper Aden Associates, Alexandria Renew’s rates fell just under the statewide average of residential wastewater charges.
The largest of Alexandria Renew’s projects—the State-of-the-Art Nitrogen Upgrade (SANUP)—will cost more than $150 million. Our Capital Improvements programs—constructing facilities that support SANUP—accounted for 45 percent of our FY 2013 budget—almost $38 million. Capital investment to attain and to continually meet regulations is our biggest line item. Overall, these projects, which include upgrading our pump stations, managing our solids residual material in a sustainable way and developing a water reuse program, will cost approximately $222 million over 10 years. It is these programs that drive the Bay Protection charge seen on your bill—regardless of the amount of wastewater generated, our facilities must have capacity reserved for each of you to use whenever you call upon it. That flat fee funds the debt service and cash investments needed to meet new regulations and update this equipment when it is at the end of its life cycle. It is just like your home—you have a mortgage to pay, which constitutes a set amount of your paycheck. Then you have monthly maintenance to keep your home functional. It is exactly what we do with your rates, but our home is appraised at $750 million!
I would also like to address the issues of transparency and public notification of the upgrade and the rate increase. There were numerous public meetings and hearings on the upgrade going back to the City of Alexandria Planning Commission Meeting in 2007. The City Council later approved this request, and last year also approved our overall plan for the new facility. We held community meetings and invited the public to comment on the plan. That process yielded some very good suggestions.
We also informed the City Council about the rate increase when it was first proposed and then yearly as the approved increases took effect. It was approved by Alexandria Renew’s Board of Directors, who are appointed by City Council. Here too, we held an advertised public meeting and hearing at our facility in 2010 and requested public comments but received none.
I understand that no one likes a rate increase. Rate increases are the only option Alexandria Renew has to pay for the mandated upgrades that we all hope will play a part in reversing the declining health of the Chesapeake Bay and continue the positive health of the Potomac River we have seen in the last 40 years. A healthy water environment fuels successful cities.
If you are interested in learning about the whole process of treating wastewater, we hope you’ll arrange for a tour of our award-winning facility, located right off of Eisenhower Avenue. Visit our website to learn more.
Sincerely,
Karen L. Pallansch
Chief Executive Officer
Alexandria Renew Enterprises
Let's not accept that. Let's question it, and suggest that rate increases might also be driven by salaries of RENEW employees.
Are the compensation numbers posted yesterday correct? If so, how does RENEW justify doubling executive compensation while raising rates on consumers?
http://alexrenew.com/wp-content/uploads/AlexRenewFY2013BudgetinBrief.pdf There you can see that "Personnel Services" - which includes employee salaries, benefits, training, safety equipment - accounts for just 17% of the overall budget. To put figure in perspective, the Alexandra ReNew Enterprise employee salaries are neither at the top nor at the bottom of salary ranges of those offered at other wastewater treatment plants in the area. The salaries are fair and allow us to attract the type of workers who run a safe, clean, effective and compliant facility. I live in Del Ray and have been a board member since 2001, and I second CEO Karen Pallansh's invitation for any interested citizens to arrange a visit the plant and add on an invitation for you to attend the public meetings held the 3rd Tuesday of each month. I am confident that you will come away satisfied that we are doing our best to balance the burden on ratepayers (I am a ratepayer too) with the requirements to comply with increasingly stringent environmental regulations in a city that is still growing significantly. Tom Van Wagner
Over the last 6 months, we have received a variety of mailings from RENEW indicating that we would be getting 2 bills for our water services; one from RENEW and one from VA American. NONE of the letters from RENEW included reminders about increases in the fees or the rationales behind those increases. Poor marketing. Poor customer outreach.
http://www.phillyburbs.com/news/local/burlington_county_times_news/judge-rules-against-american-water-over-benefits/article_c7436c6d-3e08-50ff-9ea0-ba5f320cdd1e.html I urge Virginia state lawmakers to soundly reject the 12.2% rate hike sought by American Water, the parent company of Virginia American Water.
A fair question, which I will pass along to staff, but I believe water usage is the industry standard for computing sewer bills and I know VA American Water is still providing that data to Alex Renew. I am not aware of any municipality in the U.S. that has individual sewer outflow meters installed on residences and businesses. You can give the Alex Renew Staff a call directly if you call 703 549-3381 and ask for the customer service folks.
http://alexrenew.com/wp-content/uploads/Alexandria-Sanitation-Authority-2011-Annual-Report5.pdf In addition, I urge Alexandria Renew, working in conjunction with the City Council, create a program to give residents rain barrels at a discount. Arlington residents can get rain barrels at less than half their retail price. If every home in Alexandria set up even two rain barrels, it would significantly reduce the amount of water going through the drains and at the same time would also help us save the environment. Anybody willing to encourage the City and Alexandria Renew to do that?
The standard use is to water your grass and flowers from the rain barrel. Obviously not every 'household' (w/ apartments/condos/etc) could have two rain barrels but many 'homes' could.
Similarly, cutting down on water usage will reduce the monthly cost of AlexRenew bills, but the largest portion of the bill contributes to infrastructure. Renew must pay for the buildings (plant), equipment and labor in order to meet increasingly stringent environmental laws, while providing service to all of its customers 24/7, in a city that is still growing. The line item “Bay Protection Charge” is our name for the fixed charge that helps recover capital expenses needed to upgrade the infrastructure, which contributes to the health of the Chesapeake Bay Watershed. Again, thanks for the questions, Tim. I know I didn't answer all of them in the limited space here, but the website alexrenew.com has a lot of good info, including the full budgets, annunal reports and an explanation of the billing charges. The customer service staff is available to answer questions as well.
"...the cost of treating water is going to increase in the coming years. One reason is more stringent environmental regulations that call for cleaner wastewater that will help restore the health of the Chesapeake Bay. This requires ASA ... to upgrade our facility so that we can continue to operate. Plans are well underway for SANUP, which will cost an estimated $129 million over the next seven years. Other capital projects are planned to upgrade pump stations, manage biosolids in a sustainable way, and develop a water reuse program. These projects will cost approximately $222 million over ten years, and are necessary steps to allow ASA to continue to serve y ou – our customers. To achieve upgrade projects of this magnitude, and comply with Virginia DEQ and EPA regulations, a rate revenue increase was needed. After a detailed rate study, ASA’s Board opted to approve a 3-year phased approach to the Board: with the first increase going into effect October 1, 2010, and subsequent increases in 2011 and 2012. The rate increase does not affect the per gallon charge for water consumption, but it does increase the ASA account service charge by roughly $0.25/month and adds a new Bay Protection Charge – a fixed charge to recover capital expenses needed to upgrade ASA infrastructure.