Detroit Water and Sewerage Department CIP Review

June 28, 2011

Detroit Water and Sewerage Department CIP Review

Introduction and Background:
The Comprehensive Water Master Plan published in 2004 projected water demands forward to the year 2051 based on growth of the serviced population within the DWSD service area from 3.84 million people in the year 2000 to 4.69 million people in 2050. In addition, within the service area, the Master Plan projected that the serviced population might grow as high as 5.53 million people with the potential for new customer communities being added. The population projections were made with the assistance of the Southeast Michigan Council of Governments (SEMCOG) for the SEMCOG member counties. Population projections from the Master Plan are summarized in Figure 1 following.

FIGURE 1

Service Population Projection

Projected Service Population (millions)

7
6.15

6
Population (millions)
5.53

5 4 3 2
1990

5.20 4.69 3.84

2000

2010

2020

2030

2040

2050

2060

Total Pop. In Study Area Existing Customers

Existing + New Customers

Water demands were projected on the basis of the communities growth. Average day water demands were projected to grow from the year 2000 level of about 650 MGD to between 800 MGD and 900 MGD depending on how many new customer communities joined the system. The average day system demands as projected in the Master Plan are summarized in Figure 2 below.

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FIGURE 2

Average Daily Water Demand Projection

Average Day Demand For Each Planning Year

1,200 972 MGD if include all

1,000 823 (MGD) 789 800 653 716 737 755 772 733 851

897

785

600

400 1990 2000 2010 2020 2030 2040 2050 2060

Existing + Potential New Customers

Existing Customers Only

The global economic downturn commencing in 2007 and through 2008 had particularly devastating effects on Southeast Michigan. The Greater Detroit Area in particular is heavily dependent on the auto sector manufacturing and that sector was especially hard hit. Full recovery is not expected in the foreseeable future and SEMCOG projects that there will be fewer people living in the area in 2035 than there were in 2009. Recovery of the population to the levels of the year 2000 is not projected to well into the future beyond 2035. This is all outlined in Figure 3 below taken from a SEMCOG presentation to the DWSD Technical Advisory Committee on September 16, 2010.
FIGURE 3

SEMCOG Population Projections

2001

2006

2011

2016

2021

2026

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2031

5.0 4.8 4.6 4.4 4.2 4.0

Millions

JUNE 28, 2011

DWSD water demands have experienced a similar downturn and average and maximum day water demands on the DWSD system for the past 5 years are summarized following: FY 2006 Average Day Demand Maximum Day Demand 600 MGD 1,050 MGD FY 2007 575 MGD 1,030 MGD FY 2008 600 MGD 1,100 MGD FY 2009 557 MGD 960 MGD FY 2010 515 MGD 800 MGD

(Source The Foster Group)

The decreasing trend in both population growth and water demands is of major concern as it relates to both a decreasing revenue base and uncertainties with the future planning of the DWSD system. Current CIP planning is based primarily on the projections and recommendations contained in the Master Plan and it is clear that a shift in direction is essential.

Review of System Operation:

The current system operation is based on water being supplied from five different water treatment plants and then distributed throughout the service area. The current rated treatment capacity of the five water treatment plants is summarized as follows: Lake Huron: 400 MGD Northeast: 300 MGD Water Works Park: 240 MGD Springwells: 540 MGD Southwest: 160 MGD Total 1,640 MGD It is clear that there is significant excess treatment capacity to meet the current and projected future maximum day demands on the system. In addition, the SEMCOG projections outlined above indicated that water demands will not increase back to current (2010) levels until 2030 or beyond. The question that arises is: Is there a different way to operate the system by reducing the number of treatment plants and thereby reducing the CIP requirements? In conjunction with this, a corollary question is Are all of the transmission mains recommended in the Master Plan still needed within the time frame suggested?

Alternative Operating Scenarios:

The approach was to develop alternative operating scenarios and to test these scenarios using the DWSD hydraulic model to determine the ability of the system to move water to where it is needed, i.e. where the demands are located. Three scenarios were considered and these are described as follows:

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Scenario 1 Scenario 1 would retire the Southwest water treatment plant and supply of water to the Southwest service area would be from a combination of the Springwells and Water Works Park water treatment plants. The Southwest treatment plant would be taken out of service; however the 30 MG storage reservoirs and the high lift pumping station at the treatment plant site would remain in service. Water would be pumped from the reservoirs to the service area using the existing high lift pumps. The reservoirs would be filled from both the Water Works Park and Springwells water treatment plants, although it is expected that the majority of the demand would be supplied from the Springwells plant. Scenario 2 Scenario 2 would retire the Northeast water treatment plant and supply to the Northeast service area would be from a combination of Water Works Park, Springwells and Lake Huron. Similar to Scenario 1, the treatment plant would be taken out of service; however the existing 60 MG reservoir and the high lift pumping station would remain in service. The operation would be similar to Scenario 1 above in that water would be pumped from the reservoirs to the service area using the existing high lift pumps. The reservoirs would be filled from both the Water Works Park and Springwells water treatment plants. A separate pipeline would likely be required from the Water Works Park plant to the Northeast reservoirs. Hydraulic modeling of the system is required to determine the ability of the existing transmission system to transport water from the Springwells plant to the Northeast plant. Scenario 3 Scenario 3 would be a combination of Scenario 1 and Scenario 2, i.e. retire both the Northeast and Southwest treatment plants. A quick review of this scenario indicates that the maximum day demand for the service areas of the Northeast, Water Works Park, Springwells and Southwest plants could be in the range of 700 MGD to 800 MGD based on a review of the past 5 years of operating records. The supply to this area would be primarily from the combination of the Water Works Park and Springwells water treatment plants that together have a capacity of 780 MGD (WWP @ 240 and SPW @540). This supply capacity is extremely limiting and would need to be carefully analyzed to determine whether more supply could be directed to the area from the Lake Huron facility.

Approach to Analysis:
The planned approach to the analysis was to apply the DWSD hydraulic model to each scenario as described above and determine the ability or inability of the system to supply water to the areas of demand at acceptable pressures. Unfortunately, the DWSD model does not have the capability for continuous simulation and is therefore not able to simulate the operation of the system with respect to filling and drawing water from the storage reservoirs at the various water treatment plant sites. One scenario only has been tested using the DWSD model, that being the retirement of the Southwest plant, i.e. Scenario 1. The system was modeled applying customer contracted maximum day demands. The model showed some pressure issues with the Springwells pumps
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that indicated that the Springwells pumping station could not supply the Southwest service area on its own. It is likely however that the addition of the existing 30 MG reservoir and pumping station at the Southwest plant site into a continuous simulation model would show a successful operation. We have requested DWSD staff to update the model with 2010 customer demands and to test the system hydraulics on that basis, for both Scenarios 1 and 2 above. This work has not yet been completed.

Limitation of Findings to date:

The limitations of the DWSD model will not allow the detail of analysis necessary to make a definitive conclusion on any of the above scenarios. Continuous simulation of the system operation to analyze the operation of filling and drawing from the reservoirs is critical to good decision making. The most desirable scenario from the perspective of system operation; water treatment plant age and condition; and CIP reduction is Scenario 2 the elimination of the Northeast plant. This plant is in the most deteriorated condition of all of the plants and has the largest CIP planned for the plant rehabilitation.

Preliminary Recommendations:
The following list of preliminary recommendations has been developed as a result of this review: 1. Northeast WTP: There is a good probability that either the Northeast or the Southwest water treatment plants can be retired and water supplied to the system from the combination of the remaining three plants. Scenario 2 which is the retirement of the Northeast plant is the most desirable as it is the plant with the largest capital allowance to rehabilitate the plant to an acceptable level of operation. It is our opinion that all work associated with the treatment processes at the Northeast plant should be put on hold until a detailed analysis can be undertaken to determine how water can be supplied to the service area of the Northeast plant. The CIP currently has approximately $102 M allocated to the rehabilitation of the Northeast plant treatment processes, the largest majority of which is planned for the next five year period. The high lift pumping station will be required for the long term and work relating to the rehabilitation of the high lift pumping facilities should continue. 2. Southwest WTP: For the same reasons stated above, work on rehabilitation of the treatment trains at the Southwest plant should also be put on hold until a detailed analysis of the system hydraulics can be completed. Similar to the Northeast plant, the storage reservoirs and the high lift pumping facility will be required for the long term and work related to the high lift pumping should continue. The CIP currently has approximately $85M allocated to the Southwest treatment plant of which approximately $50M is scheduled within the next 5 years. Of this amount, approximately $24M is
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allocated to construction of improvements to the filtration facility within the next five year period.

3. Water Works Park WTP: The CIP contains an amount of $24.5M for re-working the discharge piping from the high lift pumping station through the plant yard to the transmission system piping on Jefferson Avenue. The transmission piping on Jefferson Avenue is slated for rehabilitation and the design of this work is still in the planning stage. In addition, it is not yet clear whether there will be a need for significant changes in the piping layout to provide a separate feed to the Northeast plant site from Water Works Park. On this basis, this expenditure should be put on hold until better decisions can be made with respect to the future needs from this plant. 4. Springwells: This water treatment plant is of strategic importance to the long term operation of the DWSD transmission system. Continuing with the work relating to the filter rehabilitation and pumping is important and should continue. This includes: 1958 Filter Rehabilitation $122,965,000 Low lift and High lift pumps replacement $105,935,000 Pre-treatment improvements $164,250,000 Discharge Header Replacement $ 49,200,000 Total $442,350,000 However one area of effort that should be delayed until detailed evaluation determines the need is the treatment of the solids from the settling tanks and the backwash water. An alternative that needs more investigation is the discharge of this waste to the sewers for treatment at the wastewater treatment plant. We have discussed this with the wastewater treatment plant management and are advised that capacity for the solids treatment is available at the WWTP; however in order to not disrupt the solids treatment train at the WWTP, the discharge to the sewers must be at a controlled rate. This will required some equalization storage for the water plant waste; however this kind of facility will be less costly than providing extensive solids treatment at the water plant. The CIP has currently allocated $164M for this work. Of this amount, the design accounts for $11M over the next five year period and the remaining $153M is for the construction phase beyond the five year period. 5. Pumping Stations: a. The CIP contains an amount of $35M for the Chesterfield / Snover pumping station. This pumping station was planned in the short term to boost pressures along the 24 mile road development in Macomb County. The twinning of the 24 mile main which is well under way should eliminate the need for this station and this amount should be removed from the CIP. In the long term, when the second feed from Lake Huron is needed, this pumping station will be required to boost the pressures to feed the flow from this main westerly into the area of demand.
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This however, based on current growth projections, is so far into the future that it is not necessary to consider within the context of the current CIP. The one important feature to consider is to the retention of property for this facility in the future. b. The CIP contains an amount of $38M for the Ready Road pumping station in the down river area. This pumping station is planned in order to boost pressures for the communities in this area. It is our opinion that it may be much more effective to twin feeder mains in this southern area of the system rather than localized pumping to solve local problems. This looping was not addressed in the Master Plan, other than a general requirement to continue to loop mains within the system. However it is our understanding that this pumping station has been contractually committed to the customers in this area. In any event looping of the mains would also require funds in the same order of magnitude and we have not recommended any change in the CIP planning in this respect. Looping of the transmission mains in this southern area of the system should be investigated as part of the master plan update. 6. Transmission Mains: a. North Oakland Transmission System and Flint Loop: Although the CIP recognizes major expenditures for this system, it is not included in the five year program. Based on current planning projections, all of this work should be removed from the CIP. The total of this work is in the amount of approximately $584M. b. Eight Mile Road and Wixon / South Lyon Pipelines: Both of these pipelines were identified in the Master Plan and were recommended on the basis of growth. The Eight Mile pipeline was projected as a result of growth of existing customers and the South Lyon pipeline was projected to serve a potential new customer. These pipelines are identified in the CIP beyond the five year planning period. These pipelines together represent approximately $65M and this amount should be removed from the CIP.

c. Parallel 48-inch main from Wick Station to Hannan: This main was identified in the Master Plan to boost pressure and capacity in this service area. A section of this main has already been constructed and it is recommended that this section from Wick Station to Hannan remain in the CIP. The amount of this CIP item is in the amount of $20M planned over the next three year period. d. 24 Mile Road twinning mains: This is an important main required to provide service to existing customers along the 24 mile corridor. This main eliminates the
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need for the Chesterfield Pumping Station. This main was recommended in the Master Plan and should remain in the CIP. The CIP contains two items for this main Foss to Fairchild at $10M and Rochester Station to Plank Rd at $36M. These projects are planned over the next 5 year period and should continue.

e. 24 Mile and Dequinder relocation: This project involves the relocation of an existing 96-inch diameter main that is currently routed through a contaminated landfill site and is under approximately 40 feet of landfill cover. This main is critical to the operation of the transmission system in this area and this project must remain as a high priority. The CIP has allocated $17.7M for this project over the next four year period. 7. Transmission Mains Renewal and Rehabilitation: The CIP contains an amount of $92M for renewal, rehabilitation, replacement of existing transmission mains over the next five years. Although this work is needed and was recommended in the Master Plan, it is doubtful that the department can accomplish this amount of work within this time frame. The department has identified critical areas of the transmission main system both within Detroit and in the suburban area. The total amount of this work identified to be completed within the next five years is $50M. On this basis $42M should be removed from the CIP under this item. 8. Urban Distribution Mains Renewal and Rehabilitation: The CIP contains an amount of $85M for renewal, rehabilitation, replacement of existing distribution mains within the city. This work is required and is recommended in the Master Plan. The department has advised that a reasonable estimate of how much work can be accomplished in one year is about $10M. Over a five year period this amounts to approximately $50M. On this basis, approximately $35M should be removed from the CIP for this item. 9. Hydraulic Model: DWSD needs to expand its hydraulic modeling capability in order to analyze the system under a continuous simulation mode. This is necessary to properly evaluate the operation of system storage and pumping at both the Northeast and Southwest treatment plant sites as proposed under the operating scenarios described above. This tool will also be required for the planned updating of the Master Plan and it would be desirable to undertake this work immediately as a first step in the planning process. This work could either be done in house by DWSD staff, or alternatively by an experienced and qualified consulting engineering firm. There are a number of accepted and proven models on the market today and the first step should be to determine the most appropriate model for use by DWSD. If this work is undertaken by a consulting engineering firm, it is estimated that the cost of this work would be in the order of approximately $300,000.
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CIP Summary Recommendations:

The following summary provides a list of potential deletions or deferrals from the CIP. The CIP provides details on a year by year basis for each project plus a lump sum for work that is scheduled beyond the five year time frame. The following summary lists the potential deletions or deferrals in two categories capital planned within the five year period, and then capital allocations beyond the five year period.
CIP for five years Project Description 2010-11 to 2014-15 $ x 1000
Treatment Plants:
Northeast Water Treatment Plant Treatment process $98,420 $3,896 Delay this work until a decision can be made regarding the future need for this plant. (CIP #s 1077 & 931) Construction of filtration improvements scheduled for 2012 2015. Delay this work until a decision can be made regarding the future need for this plant. (CIP # 1067) Delay this work until details are know with respect to transmission main rehab work on Jefferson and how to transfer water to the Northeast WTP. (CIP # 1166) Delay this work and investigate the feasibility of discharge of the waste to the sewer system. (CIP # 1075)

CIP for period Beyond 2014-15 $ x 1000 Comments

Southwest Water Treatment Plant Treatment process $24,440 Water Works Park Treatment Plant Yard piping $29,476 Springwells Water Treatment Plant Pre-treatment works $11,215 $153,035

Pumping Stations:
Chesterfield / Snover Pumping Station Delete this from the CIP as the twinning of the 24 mile road transmission main eliminates the need for this facility. (CIP # 1124)

$30,100

$5,000

Transmission Mains:
North Oakland Transmission System and Flint Loop $584,430 Eight Mile Road and Wixom South Lyon pipelines $65,000 Transmission mains renewal / rehabilitation / replacement Delete from CIP. This main is growth related with the addition to a redundant supply to Flint / Genesee. (CIP #s 1180 & 1181) Delete these mains as they are primarily growth related. (CIP #s 906 & 907) This renewal program is important but should be scaled back in the CIP to address the expectations of how much can actually be accomplished. CIP # 1230) This renewal program is important but should be scaled back in the CIP to address the expectations of how much can actually be accomplished. (CIP #463)

$42,000 City of Detroit mains renewal / rehabilitation / replacement

$35,000

Totals:

$270,651

$811,361

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In summary, it is recommended that approximately $270M should be delayed from the current five year program until more detailed evaluation can be made. Some of this will need to be added back into the program when more details and definitive needs can be established. However, none of these items are mission critical to the system operation in the interim. Approximately $810M should be deleted from the CIP beyond the five year planning period. The major component of this is the North Oakland Transmission System and the Flint Loop. The North Oakland Transmission System is a recommendation contained in the Master Plan. However it is primarily a growth oriented main and should be considered when growth patterns in the service area justify its need. It is emphasized that detailed hydraulic evaluation is needed to assess the preferred operation scenario going forward. However, it is our opinion that the retirement of the Northeast Water Treatment plant is the most desirable alternative as this plant is in the most deteriorated condition of all of the plants and has the highest CIP allowance to bring the plant back to acceptable standards. In conjunction with this it is important that DWSD develop its hydraulic model to incorporate a continuous simulation capability. This is critical in order to properly assess the operation of reservoir storage and pumping, particularly at the Northeast and Southwest treatment plants.

All of which is respectfully submitted CH2MHILL

John C. Anderson P.E.

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