City of Pueblo Wastewater Rates FREQUENTLY ASKED QUESTIONS

1. Continued on next page City of PuebloWastewater RatesFREQUENTLY ASKED QUESTIONS January 2012

2. More Questions FREQUENTLY ASKED QUESTIONS 1. Why do we need a wastewater rate increase? 2. When does the new rate take effect? 3. What about seniors and poor citizens? 4. How much will my monthly bill increase? 5. Could we get any federal funding? 6. Why am I paying more for wastewater than for drinking water? 7. How will the additional revenue be used? 8. Will rate increases prevent sewage spills? 9. How can the City afford this with all its other problems? • When will the wastewater rate increases end?

3. Back to previous page FREQUENTLY ASKED QUESTIONS • How are increases in wastewater and drinking water rates related? • What do my sewer fees pay for? • How often are sewer lines cleaned? • How old are our sewer lines? • Where does the sewage go? • What do the big sewer trucks do? • What can I do about a neighbor’s sewage overflowing onto my yard or alley? 18. If I have other questions, how can I get answers?

4. Continued on next page Why do we need awastewater rate increase? • Parts of our sewer system are broken and coming apart beneath our feet. Our treatment plant is old and parts need to be replaced. We have to keep the system in good repair in order to protect public health. • We don’t like it when other communities dump sewage on us. The same laws that apply to them also apply to us. We have a responsibility to protect the environment, not only for our own citizens but for people downstream. • If we want new jobs in Pueblo, we have to be able to provide basic wastewater services to new businesses. If we do not fund our sewer system adequately we can’t keep that promise. • The City does not control the costs of collecting and treating wastewater. We have to buy electricity, chemicals, pipe, fuel, and machine parts to keep things running. Those costs have risen dramatically since 2003.

5. Back to Questions Back to previous page Why do we need awastewater rate increase? • The City does not control laws and regulations. New laws require that we provide a higher level of wastewater treatment than in the past. It means we have to build new treatment facilities, and operating costs will go up. • The Board of Water Works increases drinking water rates by a modest amount every year, and has since at least 1990, in order to support repair and maintenance on their system. Pueblo did not increase wastewater rates for 15 years, from 1988 to 2003, but our wastewater system continued to age and deteriorate. The result was a need for large fee increases to allow maintenance to catch up. • The longer we put off rate increases, the higher those increases will be. It’s like the old oil filter commercial: “You can pay me now or pay me later.” The later we pay, the higher the bill will be.

6. Back to Questions When does the new rate take effect? • In order to minimize the impact of the new rates on customers, the City Council approved a series of three rate increase that take effect on January 1 of 2012, 2013, and 2014. • A State rule adopted in 2005 required Pueblo to remove ammonia from its effluent, which required construction of additional treatment facilities. Another rule on nutrients, scheduled for hearing in March 2012, is expected to require additional treatment measures that may force even further facility construction. It may be necessary to enact further rate increases within the next five years to maintain compliance with new water quality laws. • Also in order to minimize the impact of the new rates on customers, the City Council decided to defer the costs of new treatment facilities until the new rules become final. • The present financial plan was adopted as a 10-year plan. However, the City Council will review wastewater rates every year to determine whether the rates are appropriate, and make changes in rates as needed.

7. Back to Questions What about seniors and the poor? • Seniors and the poor are most at risk from sewer failures. Seniors and the poor live in the oldest neighborhoods with oldest sewers that are most likely to fail. Seniors and the poor are least able to deal with sewer backups physically or financially. • Preventive maintenance is the best solution for seniors and the poor – keep the sewer mains clean, and replace them where needed to prevent backups. The rates approved by the City Council are aimed at providing these preventive services. • The least costly form of insurance for seniors and the poor is good preventive maintenance. Replacing damaged household goods and paying medical costs for illness or injury is far more costly. • Homeowner’s insurance riders for sewer backup protection cost $45 to $100 or more per year. (Please note that you must purchase such riders specifically in order to be covered; coverage is not included in the basic homeowner’s policy.) When the City Council approves adequate wastewater rates, it gives the City the chance to keep sewer problems from happening in the first place.

8. 4,000 gallons usage Service Charge Volume Charge Total Change 2010 2011 $ 10.80 $ 10.08 $ 20.88 -- -- $ 10.08 $ 20.88 $ 10.80 2012 2013 2014 2015 $ 11.07 $ 11.35 $ 11.63 $ 11.92 $ 10.32 $ 10.60 $ 10.84 $ 11.12 $ 21.39 $ 21.95 $ 22.47 $ 23.04 $0.51 $0.56 $0.52 $0.57 Back to Questions How much will my monthly sanitary sewer bill increase? Average residential monthly bills, assuming 4,000 gallons of water use

9. Continued on next page Could we get any federal funding? • The Pueblo City Council actively pursues federal funds. • The 1972 Clean Water Act originally included a federal grant program to help cities build and renovate treatment plants and sewers. Later the grant program was phased out, and states received federal funds for loans where interest rates are lower than on conventional revenue bonds, but it still costs money to borrow. Federal funding for loan programs has declined, and it is now being proposed that they be phased out entirely. • Congressional “earmarking” has been curtailed. Earmarking allowed members of Congress to obtain funds for their home districts. But earmarking obligates other people across the country to help pay for each project. The earmarking system has largely been eliminated. • Pueblo has financed capital projects using loans from the State Revolving Fund (SRF) program. The SRF program provides interest rates well below the commercial bond market. However, the SRF program has been significantly reduced in order to reduce federal spending. Low-interest SRF loans are likely to be less available in the future.

10. Back to Questions Could we get any federal funding? • In the future there will be considerably more competition for fewer SRF dollars. The proposed nutrient regulation alone is expected to generate $2.9 billion in construction needs in Colorado alone. Because funding priority favors small communities (fewer that 10,000 in population), Pueblo’s opportunity for low-interest loans will be further reduced.

11. Continued on next page Why am I paying more for wastewater than for drinking water? • Wastewater treatment costs more than drinking water treatment because the treatment process starts with much dirtier water, and treated wastewater must be brought to the same level of quality as good-quality river water. • Conventional drinking water treatment starts with relatively clean river or lake water, adds chemicals to remove certain salts, and adds a chemical like chlorine to kill microorganisms. All treatment operations are performed in a simple chemical matrix. Nutrients are not a concern in drinking water. • Wastewater treatment starts with water with very high levels of dissolved organic matter and nutrients, mixes the wastewater with live bacteria to remove the organic matter and nutrients, clarifies the treated water to remove suspended solids, adds chemicals like chlorine to kill microorganisms, and then neutralizes the disinfecting chemical to avoid harming fish and wildlife.

12. Continued on next page Back to previous page Why am I paying more for wastewater than for drinking water? • To allow the bacteria to work, air is pumped into the wastewater by high-capacity blowers. This aeration process uses large amounts of electricity. • Nutrient removal from wastewater requires that a portion of the wastewater be pumped through the process repeatedly, with oxygen being alternately depleted and restored to promote the growth of different types of bacteria. This process consumes large amounts of electricity. Nutrients are not a concern in drinking water. • Removing nutrients to low levels may require adding chemicals and filtering the finished water. Filtration uses electricity, and treatment chemicals are costly. • In drinking water treatment there is a requirement to maintain disinfection chemical concentrations throughout the water distribution system. In wastewater treatment there is a requirement to remove all disinfection chemicals to avoid harming fish and other wildlife.

13. Back to Questions Back to previous page Why am I paying more for wastewater than for drinking water? • Environmental laws are another reason why wastewater fees are so high. Not only have water quality requirements become more stringent, but tolerance for unavoidable sewer system spills has decreased. This means that repairs to the sewer system can no longer be deferred. • People continually tell Congress that they want better water quality. Our Colorado legislators are sponsoring state laws that will increase penalties for water quality violations, requiring cities to build greater redundancy into wastewater systems and perform more maintenance to ensure that spills do not occur. New laws like the pending nutrients rule, which will require Pueblo to build additional treatment facilities, result in higher costs for wastewater service.

14. Back to Questions How will the additional revenue from the rate increases be used? • The revenue will be used for repairs to the sanitary sewer system and the Water Reclamation Facility. It will not be used to give raises to existing staff, or to hire new staff. • A number of separate locations have been identified in the sanitary sewer collection system where structural defects exist in sewer mains. These structural defects could lead to a collapse or blockage of the sewer main, resulting in customers being without sewer service for extended periods or sewage overflowing into rivers and lakes, resulting in fines against the City. • Major repairs are needed at the Water Reclamation Facility to keep critical equipment in operation. The Water Reclamation Facility was built in 1987 and has exceeded its design life of 20 years. A number of pumps, motors, and components of the electrical system need to be replaces due to wear and corrosion. • When existing structural defects in the sanitary sewer system are repaired, the City will begin replacing our oldest sewer lines. Sewer line replacement will probably begin in Bessemer.

15. Back to Questions Will rate increases prevent sewage spills to rivers? • The rate increases will reduce the likelihood of sewage spills. A number of separate locations have been identified where structural defects exist in the sanitary sewer collection system. These defects could lead to a collapse of the sewer main, resulting in sewage backing up into private property or overflowing into rivers and lakes, resulting in fines against the City. Repairing these defects will reduce the likelihood of such an event. • The Water Reclamation Facility also needs attention. Repairing and replacing pumps, motors, valves, and electrical gear at the Water Reclamation Facility will ensure that the equipment is operational so the facility is able to perform the functions for which it was designed. If critical equipment fails, the affected treatment processes would be unable to function, resulting in incomplete treatment of wastewater. Maintaining the facility properly will reduce the likelihood of a spill or other noncompliance.

16. Back to Questions How can the City afford thiswith all our other problems? • The fact is that the City can’t afford not to adopt a wastewater rate structure that allows us to repair and begin modernizing our wastewater system, because the cost of falling further behind would be even higher. • The demand for sewer service is constant. It does not change with tax revenues, with the economy, or with the climate. All citizens use wastewater services daily. The young and wealthy, the elderly and poor, all need sewer service. • We endanger public health if we do not operate the sewer system effectively, and that risk is more serious than temporary economic conditions. • You can’t live without generating sewage, and you can’t live safely without that sewage being properly collected and treated. • Pueblo doesn’t like it when other cities dump sewage on us. But Pueblo has the same responsibility, both legally and morally, to clean up our own wastes and send clean water downstream. • The longer we put off rate increases, the higher those increases will be. Inflation increases prices every day. When you delay a project by a year, the cost will be higher than if you started today.

17. Back to Questions When will the wastewaterrate increases end? • Repairs in the sanitary sewer system are an ongoing problem. A large number of sewer repair projects are needed, and new projects will have to be added as problems in the sanitary sewer system are identified. • Maintenance and equipment replacement at the Water Reclamation Facility is an ongoing concern. Equipment breaks down and wears out, and must be repaired or replaced. • The 2005 ammonia rule resulted in a requirement to construct additional facilities at the Water Reclamation Facility. The 2012 nutrient rule may force further construction. • Because inflation, maintenance needs, repair needs, and new environmental laws are ongoing issues, it is reasonable to assume that modest annual increases in wastewater rates are a normal cost of providing municipal sewer service. It is unlikely that a time will come when no further increases in wastewater rates will be needed.

18. Continued on next page How are increases in wastewater and drinking water rates related? • Wastewater and drinking water rate increases are not directly related. Wastewater service is provided by the City of Pueblo. Drinking water service is provided by the Pueblo Board of Water Works, which is separately elected and not a part of the city government. The wastewater and drinking water systems are entirely separate. They do not share funds, they operate under different regulations, and they have different needs. • Wastewater rate increases are driven by the cost of operation, the cost of needed repairs, and the cost of future needs. The Board of Water Works recognized in the early 1990’s that rising costs and deteriorating systems are ongoing and began imposing modest drinking water rate increases every year. In 2011 the City Council decided to adopt a similar approach.

19. Back to Questions Back to previous page How are increases in wastewater and drinking water rates related? • The City of Pueblo went 15 years with no wastewater rate increase. During that period equipment and facilities continued to deteriorate and costs continued to rise. The wastewater system is now in a situation of playing catch-up. We need to make very large expenditures just to continue providing the level of service we have now. In the future we may be required by law to provide a higher level of service, which will impose additional costs.

20. Continued on next page What do my sewer fees pay for? • Water Reclamation Facility Operation: The City owns and operates a facility that treats more than 10 million gallons of sewage generated within the City, every day of the year. The costs of running this facility include electricity to operate pumps, motors, and air blowers; the cost of treatment chemicals to disinfect the final effluent and assist in anaerobic digestion; gasoline and diesel fuel to operate vehicles and heavy equipment; and natural gas and drinking water. • Sanitary Sewer Maintenance: The City owns and operates more than 470 miles of sanitary sewers, ranging in size from 6 inches in diameter to 66 inches in diameter. The large majority of pipes are 8 inches in diameter. Sanitary sewer mains and manholes have to be cleaned, inspected, and maintained to ensure that debris does not cause blockages, to ensure that the pipes are intact, and to correct structural problems as needed to prevent interruptions in service.

21. Back to Questions Back to previous page What do my sewer fees pay for? • Lift Station Operation: In most cases sanitary sewers carry sewage via gravity flow. But where there are developed areas lower than the surrounding terrain, or where sewer mains have to cross arroyos or streams, it is necessary to build pump stations that lift sewage from a low point into another sanitary sewer line. Pueblo presently operates eight lift stations. As the City expands, more lift stations will be needed. • Salaries and Benefits: The Wastewater Department presently employs 50 staff members, ranging from entry-level positions to experienced professionals. General Service employees, including Wastewater employees, are represented by the American Federation of State, County and Municipal Employees. Salaries are negotiated with the employee union periodically. Benefit costs are negotiated periodically with health care providers.

22. Back to Questions How often are sewer lines cleaned? • The City strives to clean every sewer line of 15 inches in diameter or less at least once every two years. In most cases, cleaning once every two years is sufficient to ensure trouble-free operation. • Some areas require cleaning more often because of historical problems that can result in frequent blockages. Frequent sewer problems are most often related to sewer use, such as excessive grease entering the sewer, rather than to structural defects. Root intrusion can also be a cause of frequent blockages. • Sewers are inspected using a closed-circuit television camera to determine their condition and identify where repairs are needed. In many cases, repairing a sewer requires digging up the sewer main and replacing the pipe. In some cases, existing sewers can be lined. The lining process makes it unnecessary to cut pavement and dig a trench, and can be less costly than conventional remove-and-replace repair.

23. Back to Questions How old are Pueblo’s sewers? • Pueblo’s oldest sewers were laid in the 1880’s. Those sewers are nearing 130 years in age, and some are still intact and working well. • More than two thirds of Pueblo’s sewer mains were laid before 1950. Sewer mains have a nominal life of 50 years. As a result, most of Pueblo’s sewer mains have passed their expected life. • The older sewer mains are made of vitrified clay pipe. Until recently, clay pipe was manufactured without gaskets to create a tight seal between pipe sections. As a result, older sewer lines may become separated at the joints, allowing roots to enter the sewer main or allowing water to undermine the sewer and cause a failure. • Since the 1970’s, most sewers have been made of polyvinyl chloride (PVC) pipe. PVC pipe is manufactured with rubber gaskets that help to maintain the integrity of the sewer main and keep roots out.

24. Back to Questions Where does the sewage go? • Sewage generated in Pueblo is treated at the James R. DiIorio Water Reclamation Facility, located at 1300 South Queens Avenue. • The Water Reclamation Facility uses biological physical, biological, and chemical processes to remove suspended solids and dissolved organics and nutrients from wastewater, and to disinfect treated wastewater. Treated wastewater is discharged to the Arkansas River. • The Water Reclamation Facility operates under a discharge permit issued by the State of Colorado. The discharge permit establishes numeric limits, in the form of maximum and minimum concentrations, for specific chemical in the final effluent. The discharge permit also includes a series of conditions aimed at ensuring that the treatment facility is adequately maintained and operated to ensure that wastewater is treated properly and without interruption. Proper wastewater treatment is necessary to protect public health and the environment.

25. Back to Questions What do the big sewer trucks do? • The big sewer trucks that are seen around town are used to clean sewer mains. They use high-pressure water to wash settled solids and debris out of sewer mains. They use large vacuum pumps to remove this debris from the sewer mains. The debris is hauled to the Water Reclamation Facility for disposal.

26. Back to Questions What can I do about a neighbor’s sewage overflowing? • When you see sewage overflowing, you can contact the Wastewater Department at any time of the day or night, including weekends and holidays. • During business hours call 553-2898. • Outside of business hours call 553-2538. This contacts the Police Dispatch office, which can contact the Wastewater Department’s standby crew. • The Wastewater Department can perform emergency cleanup, but does not have authority to shut off the water supply to a residence. The Environmental Health Division of the City-County Health Department has that authority. The Environmental Health Division can be reached at 583-4339.

27. Back to Questions Contact Information If you have other questions about wastewater rates that were not answered in this list of frequently asked questions, or if you have other questions about wastewater collection and treatment in the City of Pueblo, please feel free to contact the Wastewater Department in any of the following ways. • Telephone: (719) 553-2898 Fax: (719) 553-2957 • Mail: Wastewater Department Engineering Building 1300 South Queens Boulevard Pueblo, CO 81001 • E-mail: wastewater@pueblo.us • City Code: Title 16, Water and Sewer – Chapter 6, Sewer User Charge