Agenda - 03-18-2025; 4-a - OWASA Annual Update Presentation

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5 OWASA Quarterly Report January 30, 2025 Page 2 concentrations over the course of the monitoring program due to our efforts to optimize the use of existing treatment processes (i.e. powder activated carbon)for the purpose of reducing PFAS levels. The new PFAS drinking water treatment facility is currently in the pilot and design phase; construction is expected to begin toward the end of calendar year 2026. Pilot testing has shown that both technologies tested, Granulated Activated Carbon (GAC) and Ion Exchange (IX), are able to provide enough PFAS removal to consistently meet our drinking water treatment goals. Beyond their efficacy,we are also evaluating each technology against a suite of criteria, including capital costs, operating and maintenance costs, fate of the waste stream created by PFAS-laden media/materials, and other water quality benefits, including its ability to address future contaminants of concern. The cost of this project is significant. While currently budgeted for just under$74 million, new estimates show potential costs closer to$83 million. OWASA is seeking external funding to reduce the cost burden on our community, including being a party to a multi-district lawsuit against PFAS manufacturers, seeking state revolving loans and grants for planning, design and construction, and seeking federal funding and state appropriations. To further support customers struggling to pay their bills,we are working on a more robust water bill assistance program and will soon reach out to local governments to partner with us in this pursuit. Updated Standards and Specifications for Developers,Contractors, and Engineers: OWASA's standards and specifications for developers, contractors and engineers have been updated and organized on a new webpage. Updates include current standards and material specifications and differentiation between towns and N.C. Department of Transportation specifications.This new format allows contractors and engineers to download and add specifications and standards directly to their drawings. Celebrating 15 Years of Reclaimed Water: In 2024,we celebrated the 15-year anniversary of OWASA's reclaimed water partnership with the University of North Carolina at Chapel Hill.The reclaimed water system that serves the University became fully operational in 2009 and is an essential component of OWASA's efforts to conserve water and increase the community's drought resilience. The reclaimed water system takes highly treated wastewater through an extra disinfection process. After this additional treatment, it is pumped through about five miles of separate pipes to UNC-Chapel Hill, UNC Hospitals,the N.C. Botanical Garden, and St.Thomas More Catholic School. During the summer,the system treats and distributes around 1.8 million gallons per day(mgd) but is designed to accommodate 3 mgd as demand increases. In the 15 years of the reclaimed water system, OWASA has supplied 3.6 billion gallons of reclaimed water to our partners.That's enough water to fill all three of our reservoirs! The community also benefits from the reclaimed water system. Reclaiming highly treated wastewater defers the need for costly additional water supply and treatment facilities, saving our community money and water when we really need it. OWASA and UNC-Chapel Hill continue to work together to optimize the reclaimed water system for improved performance and sustainability. Service Line Replacement Program to Launch This Summer: OWASA will launch a service line replacement program this summer for customers in the service area who have galvanized water service lines requiring replacement (GRR). While OWASA has no lead water lines in its service area,the EPA now requires that galvanized lines must be replaced if there is no data available to show that they were never downstream of lead service lines at any time in the past. Based on our analysis, only 108 GRR