From Burden to Benefit, ALCOSAN's Regionalization Program Then and Now

Session Purpose: To highlight the 4 phases of implementing a regionalization plan that: Reduces the financial burden on municipalities. Improves management of cost, maintenance, and improvements. Contributes to ALCOSAN's Clean Water Plan goals. Session Description: Participants will participate in an interactive session that will revisit the regulatory, political, and financial landscape when regionalization was conceived in 2012. We'll identify the challenges and obstacles that made the concept of regionalization burdensome. The co-presenters will then illustrate how the Authority was able to successfully implement a regionalization plan over the last 10 years that is now perceived as a benefit to the region, and a vital part of the Clean Water Plan. Session Objectives: Participants will: Gain an understanding of organizational and institutional impediments to regionalization. Learn how financial and socioeconomic data was used to develop communication themes for wider acceptance of collaboration efforts. Lessons learned and considerations to implement regional solutions in their local communities. See examples of transfer agreements, rate impacts, and community outreach themes. ABSTRACT Background of the System Allegheny County Sanitary Authority (ALCOSAN) is a wholesale provider that provides wastewater treatment to 83 customers, the municipalities that rely on us to treat their wastewater and transform it from dirty to clean; but, within those municipalities, nearly 900,000 people rely on our services. ALCOSAN maintains approximately 90 miles of interceptor sewers that convey wastewater from municipal sewer systems to ALCOSAN's 59-acre treatment plant on Pittsburgh's North Side. The service area extends over 310 square miles and provides wastewater treatment to 83 municipalities, including the city of Pittsburgh. The Clean Water Plan ALCOSAN published a Wet Weather Plan (now The Clean Water Plan) in July of 2012 in response to a federal consent decree mandating ALCOSAN to eliminate SSO's and control CSO's. The goal was to create a plan that would be affordable and provide equitable solutions for the entire service area. Additionally, ALCOSAN was required to develop a WWP that identifies wastewater infrastructure needs through 2046 and provide a schedule to complete and operate all improvements by September 30, 2026. A key component of the plan is regionalizing ALCOSAN's system. Regionalization, as defined by ALCOSAN, involves the voluntary transfer of some of the largest municipal sewers and sewer facilities in the service area over to ALCOSAN ownership. Currently, ALCOSAN's system encompasses 90 miles but anticipates taking ownership and maintenance of 265 miles of sewer. Regionalization Then: Due to the complexity of the ALCOSAN's service area, affordability, and equity for 83 municipalities posed a unique challenge. ALCOSAN is a non-profit organization funded solely by user charges, with capital funds raised through the sale of sewer revenue bonds. The result of this research was the birth of the regionalization as a reality. The regionalization program developed out of the basin facilities planning initiative and started with an independent panel study of leaders in technology, business, university, and public and private sector volunteers. AECOM facilitated the activities of the panel and related subcommittees, reviewed calculations and evaluations, and assisted in preparation of the final report. The EPA requires that a Financial Capability Assessment be conducted to establish the burden of compliance on both the ratepayer and ALCOSAN. The complex financial and institutional relationship between ALCOSAN and the 83 municipalities it serves provides the context for the WWP's affordability. Not only is ALCOSAN required to address sewer overflows, but the customer municipalities are also required to meet the same regulations within their own systems. Extensive research into the region's demographic and socio-economic data was performed. The municipalities within ALCOSAN's service area varied widely: the communities within the ALCOSAN service area range less than 100 residents to cities, including Pittsburgh, of more than 300,000 residents. Likewise, in 2012 the average household incomes range from $16,000 to more than $220,000. Regionalization Now: After 10 years of regionalization is much more than a concept, it's a reality for the region. ALCOSAN is completing the municipal transfer agreements and working with municipalities to finalize the transfers. The regionalization program is proceeding in 4 phases: education and outreach, data gathering to characterize the condition of the regionalized assets, analyses, and reporting. This effort will culminate in transfer agreements which will assign ownership of the infrastructure to ALCOSAN, along with a Capital Improvements Report summarizing and prioritizing needed improvements. Conclusion: As the implementation of the consent decree progressed, regionalization evolved. Although there were doubts in the beginning, regionalization is now perceived as a benefit to the region. As a result of coordination, communication, and planning ALCOSAN's regionalization program is thriving. Together, ALCOSAN and AECOM successfully implemented a program that: Creates a more streamlined system throughout our region. Allows for direct management of tunnels and related infrastructure. Reduces excess flow from entering the system. Promotes collaboration between ALCOSAN and its municipality customers.