USDA-RD grant helps Palmer get in front of ammonia problem

PALMER — Thanks to a fast-tracked process, the City of Palmer should have an ongoing wastewater problem solved faster than officials anticipated.

Palmer City Manager Nathan Wallace said the U.S. Department of Agriculture's Rural Development (USDA-RD) program pushed an $8.3 million grant/loan application through the system faster than is normal. The result will allow the city to begin solving an ongoing ammonia problem this year, if things go as planned, Wallace said.

USDA-RD officials approved a $4.8 million loan and $3.5 million low-interest loan from its Water and Waste Disposal Loans and Grants Program late last month. That, combined with a $2.5 million State of Alaska grant, will allow Palmer to add approximately $1 million in the form of a general fund loan to its water/sewer fund. Its city council is expected to approve the loan at its regular Feb. 14 meeting. All monies combined will allow the city to upgrade its wastewater system by installing a moving bed biofilm reactor (MBBR).

For approximately the last 10 years, the federal Environmental Protection Agency (EPA) has allowed the city to operate its wastewater treatment facility with a provision discharge permit. Wallace explained the treatment facility has been operational since the 1950's. Things became problematic starting in the 1980's when the Matanuska River began moving its main channel away from the plant. Wallace said the water flow went from a "river to a creek".

The Mat-Su is also a salmon spawning ground and the reduced water flow, officials stated, can have a negative impact on the fishery although Wallace stressed that hasn't happened to date. Another unwanted problem that arose from the river meandering is ammonia levels. Those levels have rose since the water shift.

To alleviate the problem, Palmer officials developed a master plan some 4.5 years ago and began working with state and federal officials in 2015. Wallace said the MBBR was the preferred solution and that the city filed the USDA-RD grant application last October. Wallace said he was impressed with the cooperation shown and the speed in which the grant/loan sailed through the system and was approved. Doing so, he said, will also allow the project to come in on the lower end of the anticipated $9-17 million cost. He expects a $12.7 million price tag.

To pay for that, city sewer users will see a 12.5 percent rate increase for 2017 followed by a 9.5 percent hike for the next three years. After that, prices will rise as needed to cover costs. Wallace said, despite the rate increases, Palmer residents will still be paying a lower fee than for the same service in the City of Anchorage.

Wallace said the city is working hard to get the project rolling this year. He expects a 2-2.5 year completion timeline.

"The USDA bent over backwards to get the application through and the council has already accepted it," Wallace said.

“Today’s announcement represents the continuation of a long-standing commitment by USDA-RD to improve and mitigate sanitation and public health conditions to Alaska’s rural communities. The City of Palmer residents will soon have timely, much-needed upgrades to their wastewater system,” said USDA-RD Alaska State Director Jim Nordlund.

From 2009–2016, USDA-RD Alaska, has invested $2.16 billion in 236 rural Alaskan communities. These investments include project funding for housing, community facilities, business, energy, sanitation, telecom and electric.