Dwsd Sewer Cip Presentation 101112

7/30/2019 Dwsd Sewer Cip Presentation 101112

1/34

DWSD Sewage Disposal System

Capital Improvement Program (CIP)for 2013-2017

October 11, 2012


2/34

|City of Detroit Water & Sewerage Department

Agenda

CIP Development Process Review of how we got here (2013-2017 CIP)

Discussion of where we are going (2014-2018 CIP)

Executive Summary - 2013-2017 CIPHighlights

Program statistics and financing requirements

Key Project Discussion

Detailed information on 3 key projects of interest

Questions and Discussion

1


3/34


CIP Development Process

Sewage Disposal System CIP

2


4/34|City of Detroit Water & Sewerage Department

2013-2017 CIP Development Process -Timeline

Based on Customer requests, DRAFT CIP waspresented to Customer representatives in May2012

First time this step was introduced to the process

Comments reviewed and incorporated as appropriate

DRAFT CIP presented to BOWC in June 2012 Comments reviewed and incorporated as appropriate

BOWC approves CIP July 2012

3



2013-2017 CIP Development Process -Summary

Each Year the CIP is reviewed and updated toreflect the most current information forrecommended capital improvements over the

five year planning horizon. The CIP incorporates needs from Master Plans

and operating experience.

For the July 2012 CIP, the plan presentsprojected expenditures for FYs 2013 through2017.

4



2013-2017 CIP Process Summary (continued)

The first year of the plan reflects an update ofthe original CIP incorporated into the existingrates for FY 2012-13, the current fiscal year.

The second year is recommended for theupcoming budget/rate development, andestablishes the capital financing revenuerequirements for that plan.

The CIP strikes a balance between identifiedSystem needs and rate affordability.

5


7/34


2013-2017 CIP Process Summary (continued)

Where capital improvements have beenidentified but are not projected to becompleted within the 5 year horizon, those

remaining projected expenditures are notedbeyond the five year period.

This column also reflects projects that havebeen deferred pending additional review.

6


8/34


CIP Process Improvement Opportunities Forthe 2014-2018 CIP

Improve overall linkage to budget/rates Improve the overall rating/ranking process to

provide more distinctive project ratings

Clarity on priorities (rationale) Enable adjustments (deferrals & advancements)

Improve customer/customer community inputin the process

Leverage Organizational Optimization project Asset Management Plans

7


9/34


Executive Summary


8


10/34


2013-2017 Sewer CIP SummaryExecutive Summary

9

The KEY element to our mid and long termcapital planning strategy is how we will dealwith mid-term and long-term biosolids

management and disposal programs. The March 2012 Symposium on Biosolidsdisposal options caused us to revisit ourapproach envisioned by the prior CIP, which

anticipated investment by 3rd parties infacilities and an operating expense impact onDWSD.


11/34


2013-2017 Sewer CIP SummaryExecutive Summary (cont.)

The new CIP reflects the addition of DWSDinvestments in biosolids improvements, mostprominently the new dryer facility.

Weve also added the 2nd (conduit) phase ofthe Rouge River Outfall project. The first phase was included in last years CIP and

we knew the 2ndphase was coming.

We have now included the 2

nd

phase in the CIP.

10


12/34


2013-2017 Sewer CIP SummarySummary of Specific Changes

11

~$257 million Increase (in 5-year funding reqts)primarily related to inclusion of: Biosolids Dryer Facility - $154 mm (see page 40) Incinerator Air Quality Improvements - $37 mm (see

page 26) Dewatered Biosolids Improvements - $12 mm (see

page 40) RRO#2 2nd(Conduit) phase - $91 million (see page

41) Total CIP plan (5 year + Remaining) is $936

million and the 5-year CIP plan is $829 million. Comparative figures from prior CIP: $608 million /

$572 million


13/34


2013-2017 Sewer CIP Potential Financial Plan ImpactCIP only - does not reflect impacts of other issues

12

Financing plan for Bonds that closed in June2012 was based on July 2011 CIP. Anticipated no future bond sales needed prior to 2017

Additional ~$257 million of capital requirementswould require: Additional Bond sales and/or additional SRF Loans

Will not impact 2013 projections nor materially

impact 2014 projections. May moderately impact 2015 2017 projections. Key to future financial plans will be the results of: The Organizational Optimization

Board financing policies, which are under review


14/34


2013-2017 Sewer CIP SummaryPotential Financial Plan Impact

13

0.05

0.055

0.06

0.065

0.07

0.075

0.08

0.085

0.09

0.095

0.1

0

50

100

150

200

250

2012 2013 2014 2015 2016

RateIncrease

CIP/Financ

ing-$millions

CIP Bond Sale Proceeds Rate Increase

2012-2016 CIP

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

0

50

100

150

200

250

2012 2013 2014 2015 2016

RateIncrease

CIP/Financing-$millions

CIP Bond Sale Proceeds Rate Increase

2013-2017 CIP


15/34


Sewer CIP Summary

272

77205

67

184

24

Projected 5-year CIP Expenditures ($millions)

Solids Handling

Disinfection

Other WWTP

CSO

LocalCollection

Other

14

S C $ $


16/34


The 2013-2017 Sewer CIP totals approximately $936 million ($829million for the 5-year CIP), of which $356 million is subject to the FY2013-14 rates financing plan

15

($ millions)

FY 2012-13 150.11

FY 2013-14 205.82

FY 2014 Financing Plan Subtotal 355.93

FY 2014-15 234.91FY 2015-16 154.29

FY 2016-17 83.67

Total 5-year CIP 828.80

Remaining beyond 2017 107.25TOTAL CIP 936.05


17/34


The CIP reports categorize projects based on their status

ACTIVE Projects: Work is underway the CIP contains projected

expenditures necessary to complete these ongoingprojects

UNDER PROCUREMENT Projects: Project is in the procurement process and is about to

begin. A DRMS number (accounting code) has beenassigned, but notice to proceed has not yet been issued

NEW Projects: Project proposal has been approved but procurement

process has not yet been initiated

16


18/34


The Sewer System s investment in capitalimprovements has varied over the years

During the 1990s, DWSD invested approximately $730million (~$73 million annually) in capital improvements tothe sewer system

During the 2000s, the corresponding figure is $2.49

billion (~$249 million annually) Estimated figures for FYs 2012-2016:

2003 Master Plan = $1.88 billion ($376 million per year)

2008 CIP = $1.85 billion ($371 million per year)

2009 CIP = $736 million ($147 million per year)




17


19/34


Criteria in Report Primary Project Purpose 1 Directly Mandated for Regulatory Compliance 2 Necessary for Regulatory Compliance Mandates 3 System Reliability

4 Technological Advance / Efficiency 5 New Service Areas Allocation Status D - Detroit Only S - Suburban Only

OMI - Oakland Macomb Interceptor District Only 83/17 - New Wet Weather Facilities CTA - Common to all

The CIP report contains criteria designed to identifyproject purpose and allocation status

18


20/34


Specific Projects of Interest


19


21/34


Projects of Interest

20

Summary of WWTP Projects

Incinerator Air Quality Improvements (PC-791) Added to CIP to address internal investment in Solid Handling

Facilities

Biosolids Dryer Facility (PC-792) Added to CIP to address internal investment in Solid Handling

Facilities

Wastewater Treatment Plant Allowance Added to facilitate delivery of WWTP projects


22/34


Current and Future Capital Projects at Detroit WWTP

21

Number Description Amount ($M) Start End

PC-756 New Troughs and Weirs for Primary Clarifiers 13-16 $7.7 2012 2013

PC-757Improvements to Primary Clarifier Rectangular Tanks,Pipe Gallery

$10.1 2013 2016

PC-776Secondary Clarifiers, RAS Pumps and MCCImprovements

$17.4 2012 2015

PC-774 C-I and C-II Incinerator Improvements $29.9 2010 2014

PC-780 Rehabilitate Sludge Pump Stations 1 and 2 $3.3 2012 2013PC-782 Plant-wide Fire Alarm Systems Upgrade $7.6 2012 2015

PC-783Underground Electrical Duct Bank Repair and EB-1, EB-2, and EB-10 Primary Power Service Improvements,Repavement of Critical Roads

$30.4 2012 2016

PC-786Rouge River Outfall No. 2 (RRO-2) Segment 1 - WWTPModifications

$14.4 2012 2014

PC-787 Replacement of Belt Filter Presses for Complex I andUpper Level Complex II

$33.2 2012 2015

PC-789Pump Station 1 Rack & Grit and MP1 Sampling Station 1Improvements

$21.1 2012 2015

PC-791 Sewage Sludge Incinerator Air Quality Improvements $37.0 2013 2016

PC-792 Biosolids Dryer Facility at WWTP $154.0 2013 2017


23/34


Current and Future Capital Projects at Detroit WWTP

22

Number Description Amount ($M) Start End

961 Pump Station No.2 Pumping Improvements $5.7 2013 2015

1141Rehabilitation of Primary Clarifiers, Drain Lines, HotWater and Scum Lines

$15.6 2013 2016

1194 Aeration System Improvements $23.7 2013 2016

1220 Replacement of Lower Level C-II Dewatering Centrifuges $25.0 2015 2018

1221 Rehabilitation of Central Offload Facility $6.0 2013 2016

1251 Dewatered Biosolids Storage at WWTP $12.2 2013 20161224 Replacement of LIMS / PIMS Software System $5.0 2013 2015

1257 Wastewater Treatment Plant Allowance $30.0 2012 2014

1237Rehabilitation of Main Plant Maintenance Bldg, PlantMaintenance Areas

$13.4

1223Rehabilitation of Grit and Screening System at PS#2 andRehabilitation of Sampling Sites at WWTP

$11.2 2013 2016

1222Replacement of Chlorination and DechlorinationEquipment at the WWTP

$4.1 2013 2017

1250 Rouge River Outfall No. 2 Segment 2 - Conduit $90.7 2013 2017

1140Study / Repair Potable Water, Screened Final Effluent,Natural Gas and Compressed Air Lines at the WWTP

$2.3 2014 2016

TOTAL $611.0


24/34


Chlorination/De-Chlorination Facilities

N

WWTP Capital Projects

23

PC-756New Troughs and Weirs for

Primary Clarifiers 13-16$7.7 M 2012-2013

PC-757Improvements to Primary

Clarifier Rectangular Tanks,Pipe Gallery

$10.1 M 2013-2016

PC-776Secondary Clarifiers, RAS

Pumps and MCCImprovements

$17.4 M 2012-2015

PC-774Complex I and Complex IIIncinerator Improvements

$29.9 M 2010-2014

PC-780Rehabilitate Sludge

Pump Stations 1 and 2$3.3 M 2012-2013

PC-780Underground ElectricalDuct Bank Repair andEB-1, EB-2, and EB-10Primary Power Service

Improvements, Repavement

of Critical Roads$30.4 M 2012-2016

PC-787Replacement of Belt FilterPresses for Complex I and

Upper Level Complex II$33.2 M 2012-2015

PC-789Pump Station 1Rack & Grit and

MP1 Sampling Station 1Improvements

$21.1M 2012-2015

PC-791Sewage Sludge IncineratorAir Quality Improvements

$37 M 2013-2016

PC-792Biosolids Dryer Facility

at WWTP$154 M 2013-2017

961Pump Station No. 2

Pumping Improvements$5.7 M 2013-2015

1141Rehabilitation of Primary

Clarifiers, Drain Lines, HowWater and Scum Lines

$5.7 M 2013-2015

1194Aeration SystemImprovements

$23.7 M 2013-2016

1220Replacement of Lower

Level Complex IIDewatering Centrifuges

$25 M 2015-2018

1221Rehabilitation of Central

Offload Facility$6M 2013-2016

1237Rehabilitation of Main PlantMaintenance Building, Plant

Maintenance Areas$13.4 M

1223Rehabilitation of Grit and

Screening System at PS#2and Rehabilitation of

Sampling Sites at WWTP$11.5 M 2013-2016

1222Replacement ofChlorination and

Dechlorination Equipmentat the WWTP

$4.1 M 2013-2017


25/34


Chlorination/De-Chlorination Facilities

N

WWTP Capital Projects

24


26/34


Other WWTP Capital Projects (not shown on map)

25

Project Description Amount Start End

PC-782 Plant-wide Fire Alarm Systems Upgrade $7.6 M 2012 2015

PC-786 River Rouge Outfall No. 2 (RRO-2)Segment 1 WWTP Modifications

$14.4 M 2012 2014

1251 Dewatered Biosolids Storage at WWTP $12.2 M 2013 2016

1224 Replacement of LIMS / PIMS SoftwareSystem

$5 M 2013 2015

1257 Wastewater Treatment Plant Allowance $30 M 2012 2014

1250 Rouge River Outfall No. 2 Segment 2

Conduit

$90.7 M 2013 2017

1140 Study / Repair Potable Water, ScreenEffluent, Natural Gas and CompressedAir Lines at the WWTP

$2.3 M 2014 2016

PC 791 Complex II Incineration


27/34


PC-791 Complex II IncinerationAir Emissions Upgrade

26

Award recommendation by BOWC Sept 2012, awaiting City Councilapproval

Design-Build Contract Designer: Black & Veatch

Contractor: Walsh Contract Cost: $38 Million Schedule: Nov 2012 June 2017

Project Drivers:

Current emissions controls on incinerators will not meet 2016 EPAMACT Air Standards

Page 26 of CIP Document $37 Million budget



28/34



Project Description:

Scrubber replacement

Afterburner hearth

Induced draft (ID) fan replacement

Variable-frequency drives (VFD) on fans & center drive

Damper improvements

27



29/34



28


30/34


PC-792 Biosolids Dryer Facility at WWTP

29

Request for Proposals issued Aug 2012

Proposals due Nov 30, 2012

Design-Build Facility (DWSD Capital)

Operate Maintain for 20 years

Project Drivers: Need for biosolids disposal capacity, approximately one-third of

total disposal requirements at WWTP Drying provides flexibility to utilize both land-application and energyend-uses for dried product

Page 40 of CIP document - Budget $154 Million


31/34


PC-792 Biosolids Dryer Facility at WWTP

Project Description:

Provide a dryer facility with 220 dry tons per day dryer capacityat WWTP

Operate and Maintain facility for 20 years

Reuse / dispose of dried product in a renewable method

CIP budget is for construction costs only

Ongoing operation and maintenance costs will be in O&Mbudget

30


32/34


WWTP Capital Flowchart

31

Existing Capital Condition Assessment and

Restoration Program Schedule Replacement

Program Maintenance Engineering

New Capital Master Plans Needs Assessment

(WWTP)

Regulations System Changes

CapitalReplacementProgram

New CapitalProgram

CapitalImprovementProgram

A

B

C


33/34


Wastewater Treatment Plant Allowance

32

Contracts: Approx 22 contracts, to be issued through DWSDpurchasing this year, size $50,000 - $1M

Delivery Method

Design-Build;

Furnish & Install; Furnish

Project Drivers

Need for an efficient delivery method for projects


34/34


Wastewater Treatment Plant Allowance

Funds both Scheduled Replacement Projects (SRP) and SmallDollar Capital Projects

SRP Examples Replacement of head motor pulley, vacuum pump motor, ash silo

pump drive Rehabilitation of venturi meter building Replacement of sludge feed pumps

Small Dollar Capital Examples

Stair replacement at WWTP buildings Replacement of Ferric Chloride storage tanks New used oil storage tank and containment

33

Dwsd Sewer Cip Presentation 101112

Documents

Transcript of Dwsd Sewer Cip Presentation 101112