7/30/2019 Dwsd Sewer Cip Presentation 101112
1/34
DWSD Sewage Disposal System
Capital Improvement Program (CIP)for 2013-2017
October 11, 2012
7/30/2019 Dwsd Sewer Cip Presentation 101112
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
3/34
|City of Detroit Water & Sewerage Department
CIP Development Process
Sewage Disposal System CIP
2
7/30/2019 Dwsd Sewer Cip Presentation 101112
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
5/34|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
6/34|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
7/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
8/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
9/34
|City of Detroit Water & Sewerage Department
Executive Summary
Sewage Disposal System CIP
8
7/30/2019 Dwsd Sewer Cip Presentation 101112
10/34
|City of Detroit Water & Sewerage Department
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.
7/30/2019 Dwsd Sewer Cip Presentation 101112
11/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
12/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
13/34
|City of Detroit Water & Sewerage Department
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 ~$257 million of capital requirementswould require: Additional Bond sales and/or additional SRF Loans
Will not impact 2013 projections nor materially
impact 2014 projections. May moderately impact 2015 2017 projections. Key to future financial plans will be the results of: The Organizational Optimization
Board financing policies, which are under review
7/30/2019 Dwsd Sewer Cip Presentation 101112
14/34
|City of Detroit Water & Sewerage Department
2013-2017 Sewer CIP SummaryPotential Financial Plan Impact
13
0.05
0.055
0.06
0.065
0.07
0.075
0.08
0.085
0.09
0.095
0.1
0
50
100
150
200
250
2012 2013 2014 2015 2016
RateIncrease
CIP/Financ
ing-$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-$millions
CIP Bond Sale Proceeds Rate Increase
2013-2017 CIP
7/30/2019 Dwsd Sewer Cip Presentation 101112
15/34
|City of Detroit Water & Sewerage Department
Sewer CIP Summary
272
77205
67
184
24
Projected 5-year CIP Expenditures ($millions)
Solids Handling
Disinfection
Other WWTP
CSO
LocalCollection
Other
14
S C $ $
7/30/2019 Dwsd Sewer Cip Presentation 101112
16/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
17/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
18/34
|City of Detroit Water & Sewerage Department
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)
2010 CIP = $708 million ($142 million per year)
2011 CIP = $572 million ($114 million per year)
2012 CIP = $829 million ($166 million per year)
17
7/30/2019 Dwsd Sewer Cip Presentation 101112
19/34
|City of Detroit Water & Sewerage Department
Criteria in Report Primary Project Purpose 1 Directly Mandated for Regulatory Compliance 2 Necessary for Regulatory Compliance Mandates 3 System Reliability
4 Technological Advance / Efficiency 5 New Service Areas Allocation Status D - Detroit Only S - Suburban Only
OMI - Oakland Macomb Interceptor District Only 83/17 - New Wet Weather Facilities CTA - Common to all
The CIP report contains criteria designed to identifyproject purpose and allocation status
18
7/30/2019 Dwsd Sewer Cip Presentation 101112
20/34
|City of Detroit Water & Sewerage Department
Specific Projects of Interest
Sewage Disposal System CIP
19
7/30/2019 Dwsd Sewer Cip Presentation 101112
21/34
|City of Detroit Water & Sewerage Department
Projects of Interest
20
Summary of WWTP Projects
Incinerator Air Quality Improvements (PC-791) Added to CIP to address internal investment in Solid Handling
Facilities
Biosolids Dryer Facility (PC-792) Added to CIP to address internal investment in Solid Handling
Facilities
Wastewater Treatment Plant Allowance Added to facilitate delivery of WWTP projects
7/30/2019 Dwsd Sewer Cip Presentation 101112
22/34
|City of Detroit Water & Sewerage Department
Current and Future Capital Projects at Detroit WWTP
21
Number Description Amount ($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 $154.0 2013 2017
7/30/2019 Dwsd Sewer Cip Presentation 101112
23/34
|City of Detroit Water & Sewerage Department
Current and Future Capital Projects at Detroit WWTP
22
Number Description Amount ($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
7/30/2019 Dwsd Sewer Cip Presentation 101112
24/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
25/34
|City of Detroit Water & Sewerage Department
Chlorination/De-Chlorination Facilities
N
WWTP Capital Projects
24
7/30/2019 Dwsd Sewer Cip Presentation 101112
26/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
27/34
|City of Detroit Water & Sewerage Department
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
PC 791 Complex II Incineration
7/30/2019 Dwsd Sewer Cip Presentation 101112
28/34
|City of Detroit Water & Sewerage Department
PC-791 Complex II IncinerationAir Emissions Upgrade
Project Description:
Scrubber replacement
Afterburner hearth
Induced draft (ID) fan replacement
Variable-frequency drives (VFD) on fans & center drive
Damper improvements
27
PC 791 Complex II Incineration
7/30/2019 Dwsd Sewer Cip Presentation 101112
29/34
|City of Detroit Water & Sewerage Department
PC-791 Complex II IncinerationAir Emissions Upgrade
28
7/30/2019 Dwsd Sewer Cip Presentation 101112
30/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
31/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
32/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
33/34
|City of Detroit Water & Sewerage Department
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
7/30/2019 Dwsd Sewer Cip Presentation 101112
34/34
|City of Detroit Water & Sewerage Department
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
Top Related