By SHANNON HAUGLAND
Sentinel Staff Writer
The Assembly voted Tuesday night to move forward on granting the request of the Northern Southeast Regional Aquaculture Association for an additional allocation of Blue Lake water for its Sawmill Creek Hatchery.
The vote was 6-1 to sign a letter of intent with the nonprofit corporation, with Richard Wein, Kevin Mosher, Kevin Knox, Steven Eisenbeisz, Valorie Nelson and Mayor Gary Paxton in favor and Aaron Bean against, saying he felt more details were needed.
Other Assembly members said that after reviewing NSRAA’s intentions and plans, they felt city staff could work with the nonprofit to create a plan that protected the city and ratepayers, while giving NSRAA the water it needs to expand operations at its Sawmill Creek hatchery.
“I’m going to vote yes,” Mosher said. “NSRAA has a long history to contributing to the economy. They’re problem solvers, and they will come up with solutions. ... This is allowing them to go forward and the details will be worked out.”
“Let’s face it - we’re a fishing town and I feel we should walk out of this room tonight with positive solutions,” Wein said.
City electric utility director Bryan Bertacchi has warned that the NSRAA plan could increase costs to residents. Wein listed some of his concerns and the Assembly’s obligation to protect electric ratepayers, but said he believes the administrator has been given adequate direction to move forward working with NSRAA on a plan for the increased supply of water.
Paxton also expressed faith in a good outcome, saying he felt NSRAA officials who spoke had committed themselves to following through and finding solutions to the city’s concerns.
The five-line letter of intent says the city intends to provide up to 14 cubic feet of water per second per day to NSRAA, and that water usage is based on a calendar year average with a maximum continuous flow of 20 cfs. The letter says the two parties will work out the technical details. City Administrator Keith Brady said he and NSRAA General Manager Steve Reifenstuhl will start working out the details as early as next month.
The organization’s long-term plans call for pumping water from the afterbay – the fresh water outflow from the Blue Lake hydro plant – using a pump that still needs to be purchased and installed. NSRAA currently has permission to use 10 cfs that comes from the high-pressure penstock before it goes through the hydroelectric turbines.
Bean suggested a timeframe, but others said details can be worked out in the next phase of negotiations between NSRAA and the city.
Bertacchi was out of town and did not participate in the meeting, but has issued a memo expressing concerns about the potential costs to the city in supplying the additional water, including the cost of needing diesel generation during unplanned and planned outages, and the cost of operating the pumps, under certain scenarios.
Those comments were echoed by a number of speakers from the public, including the Sitka Tribe of Alaska.
Brady told the Assembly at the outset of the discussion that Bertacchi and other members of the public raised a number of good points.
The city and Assembly also received emails and public comments Tuesday in support of the NSRAA request, saying the benefits provided by NSRAA – in the past and future with the expanded hatchery – benefit the fishing fleet and the entire community.
“Mr. Bertacchi’s concerns are legitimate concerns,” Brady said. “At some point we will need all the water from the penstock for power generation. ... The Letter of Intent intends to allow up to 20 cfs, with a yearly average of 14 cfs. I’m confident both parties will work together to make (it happen).”
Reifenstuhl discussed the organization’s plan, which he said has been in the works since 2005. He also outlined some of the benefits provided by NSRAA, including to the electric department and fishing fleet from the Sawmill Creek-produced fish in 2018 alone.
“If it weren’t for the Crawfish project, the electric utility revenue would not have crossed the debt service coverage ratio threshold,” Reifenstuhl said. He was referring to the record catches this year of Sawmill Creek hatchery fish at Crawfish Inlet, and the $200,000 in electric fees paid by the three processors for processing the fish.
Reifenstuhl said the long-term plan is to use water after it has passed through the generating plant, pumping it from the afterbay. But until that system is set up he would like the NSRAA water allocation from the high-pressure penstock increased to 20 cfs. He said he doesn’t anticipate his expansion project to be complete for another two or three years.
The city expects by then the pump will be set up in the afterbay to serve potential bulk water sales and NSRAA’s needs.
The city has two 5 cfs pumps in the afterbay, and has been talking about plans for a new $1.5 million pump system to provide more raw water from Blue Lake for such industrial uses as NSRAA hatchery, bulk water sales and future growth at the industrial park, Brady said today.
Assembly members expressed support for the NSRAA, but said they also need to protect ratepayers.
Valorie Nelson said she wants to make sure “we’re not short-changing the citizens.”
Reifenstuhl said his organization “has no intention of burdening ratepayers” with its request for additional Blue Lake water for new Chinook production. He noted the funds are available for pump expenses in the raw water fund and the economic development fund.
Some of the comments from the public echoed Bertacchi’s concerns, including capital cost, ongoing maintenance, and operations of the system; the cost of electricity of pumping water from the afterbay; and the cost if diesel generation is required because of low lake levels related to the NSRAA usage during the period the water is taken from the penstock that feeds the generating plant.
Brady said today that the city has an excess power capacity right now, which should allow NSRAA to take the water from the penstock without a problem, or extra costs to electric ratepayers.
A Sitka Tribe of Alaska tribal council representative read a letter expressing STA’s concerns about potential additional costs, and the possibility of affecting the utility bills of people who are already struggling financially. Others at the meeting highlighted the purpose of the $150 million dam expansion project, which was to provide more electricity.
