Business Plan: Wastewater Removal and Stormwater Management

Transcription

1 Business Plan: Wastewater Removal and Stormwater Management How does this service contribute to the results identified in the City of London Strategic Plan? A Sustainable Infrastructure Compliance with all regulatory requirements to operate, sustain, expand and improve the wastewater and stormwater infrastructure for efficiently delivering high quality and reliable environmental and drainage services to London s customers for all residential, institutional, commercial, and industrial needs. Name the main activities done to provide this service: Name The Activities Done To Provide This Service 1. Operation, Maintenance and Repair of the Wastewater Conveyance and Treatment Systems and Stormwater Management System How Much Did We Do? (optional) 65-85B L of wastewater treated annually Up to 412B L of stormwater managed annually 700-1,000 km of sanitary sewers flushed annually 2. Renewal of Existing Infrastructure km of sewers rehabilitated annually 8-25 km of sewers installed annually (new and replacement) Approx. 1-2 stormwater management facilities rehabilitated annually Approx. 2 km of watercourses rehabilitated annually Approx. 3.5 ha of wetland reclamation completed annually Is The City Mandated To Provide This Service? Can The Level Of Service Be Changed? (with limitations) (with limitations) 1

2 Name The Activities Done To Provide This Service How Much Did We Do? (optional) 3. Extension of Services for Growth Approx. 30km of sanitary & storm sewers assumed annually Approximately 4.6 km of new storm sewer installed in areas that did not have storm sewers Approx. 5 stormwater management facilities constructed annually Approx. 5 stormwater management facilities assumed annually Is The City Mandated To Provide This Service? Can The Level Of Service Be Changed? (with limitations) What is the current state of this service? Current objectives of the Wastewater utility include: Achieving a financially sustainable 1 utility and addressing lifecycle renewal, growth and economic development objectives of the City while ensuring regulatory compliance Maintaining / improving the existing level of service provided to the citizens and businesses of London Maintaining best-in-class standings with the National Benchmarking Initiative Minimizing the number of sewer-related blockages Reducing the number of basement flooding occurrences Improving the health of the Thames River Providing support for the City s Industrial Land Development Strategy These objectives are being driven by a number of factors, including: Customer expectations of the services that should be provided 1 Financial Sustainability is defined as the movement toward annual rate increases that can be maintained at or near the annual rate of inflation based on a combination of CPI and the Construction Price Index with appropriate use of debt financing, adequate reserve funds and the appropriate investment in capital. 2

3 Council-approved level of service requirements Council-endorsed strategic initiatives City of London Strategic Plan Climate Change Adaptation Strategy A number of challenges are facing the Wastewater service area in the achievement of these objectives: Declining revenue base, aging infrastructure (much of which is reaching the end of its useful life at the same time), increasing cost drivers over which the utility has no direct control (power, labour, etc.), an aging workforce, and everincreasing regulatory requirements Extreme weather events associated with climate change are placing an additional burden on stormwater and wastewater collection systems and also pose a threat to many wastewater facilities located in close proximity to rivers and on floodplains. Changing climate conditions are also making the updating of subwatershed studies more challenging. Increasing customer expectations (e.g. many more homes are now utilizing their basements as living quarters and therefore there is a customer expectation that no damages to this space should occur via sewage backups even under changing climate conditions) The large and growing geographic size of London makes service delivery challenging (3,800 square kilometers of land drainage flows through London improving water quality in the Thames River therefore needs to have a watershed wide approach) Current economic climate demands that fully serviced industrial lands are available as opportunities arise Changing provincial and federal regulations Some of the challenges noted above have been managed with positive results in 2014 through the following achievements: Sewer Operations Completed five stormwater management pond rehabilitations Rehabilitated designated sections of the existing Ridout Street brick sewer, utilizing trenchless technology (multi-year project) Completed pipe rehabilitation on designated sections of the Gordon trunk sanitary sewer via trenchless technology Working towards a contract with a software vendor to undertake the implementation of a Computerized Maintenance Management System, which will bring the City s utility maintenance and work flow management up to industry standards. This will result in staff resource efficiencies, enhanced documentation, and cost tracking of maintenance activities, while also ensuring compliance with regulatory requirements 3

4 Wastewater Treatment Operations Completed construction of the Southern Ontario Water Consortium-London Wastewater Node at Greenway PCP Commenced Greenway PCP Expansion detailed design (multi-year project) to ensure sufficient treatment capacity is available to service future growth and manage wet weather flows Wastewater and Drainage Engineering Purchased and installed 13 permanent flow monitoring gauges to comply with Federal Fisheries Act Regulation for Municipal Wastewater Effluents Completed Phase 1 and commenced Phase 2 of Council s Climate Change Adaptation Strategy for the City s water resources and stormwater management strategy to deal with extreme storm events Completed Phase One of the Pollution Prevention and Control Plan and commenced Phase Two Stormwater Management Unit Designed and constructed multiple regional stormwater management facilities General Completed the Southwest Area Sanitary Servicing Master Plan Completed the 2014 Wastewater Servicing Master Plan Update, 2014 Stormwater Master Plan Update and Development Charges Background Study Supported the preparation and sale of serviced industrial lots Revised revenue and expenditure forecasts What has been done to manage the budget? The service area has been actively managing its budget by implementing management led initiatives aimed at creating efficiencies, avoiding costs and generating revenue. These include the following: Efficiencies / Costs Avoided Previous 3 Years Amended the catchbasin cleaning program with risk and Council approved quality standards as primary considerations. The recently implemented strategic plan frees existing staffing resources to meet the Sewer Operations Division s new work demands such as annual maintenance on assumed stormwater management facilities. 4

5 Implementation of a more aggressive approach to PDC replacement where lining is always given first consideration over the more costly and traditional open cut methods. Completed biosolids upgrades at Greenway Pollution Control Plant, resulting in reduced natural gas and chemical consumption in addition to labour savings. According to the PwC audit of this project, the total estimated annual operating savings associated with this initiative is approximately $700,000 per year, with total capital savings of $33 million. Implemented turbo blower upgrades at Adelaide, Oxford and Vauxhall Polluton Control Plants. These new and more efficient blowers were made possible through cooperation from London Hydro and incentives through the Ontario Power Authority. These blowers are anticipated to result in $170,000 in annual energy savings. Revenue Generation / User Fee Increases Previous 3 Years Implemented a new Water and Wastewater rate structure effective March 1, The purpose of this new rate structure was to ensure fairness and equity for all customers while also balancing conservation efforts, economic development and the need to provide a more stable, predictable revenue stream in response to declining consumption. Other rate increases over the past 3 years have been in keeping with the Council-endorsed rate plan in order to achieve financial sustainability in What is the future direction of this service? Core business objectives will remain consistent; however, specific attention will be given to opportunities for synergistic activities in four areas: regulatory compliance, growth, efficiency and best management practices, with sustainability being a common theme in all areas. The drivers for these four activity areas include: protecting public health and private property; meeting all regulatory requirements; supporting Council s objectives of economic development and growth; gaining efficiencies to reduce long term costs; investing in succession planning; harnessing innovative technologies; and maintaining a high level of service to consistently meet customers expectations. Continuing focus on delivering a financially sustainable utility in the near term and maintaining infrastructure levels of service at an appropriate level of risk as the 20-Year Capital Plan is implemented. 5

6 What future initiatives can be contained within the maintain existing service level budget? 2015 Budget Compliance Continue to advance the Pollution Prevention and Control Plan (PPCP) aimed at reducing the number of overflows in both the collection system and at the wastewater treatment plants while helping to ensure wet weather flows are treated to Ministry of Environment standards Continue to report system overflows and bypasses to comply with Federal Fisheries Act Regulation for Municipal Wastewater Effluents Efforts will continue to improve the health of the Thames River and support the Council-endorsed strategic initiatives underway, including: investigation of opportunities for long-term funding from other sources, strengthening collaboration with Western University and other research centres Complete three (3) stormwater management facility rehabilitations and undertake a full cost analysis based on actual work completed by others vs. by City forces. Continue to monitor ongoing stormwater management facility annual maintenance and associated costs. Continue to build a robust database for these City owned facilities to satisfy Ministry of Environment Certificate of Approval requirements Rehabilitate designated sections of the Gordon trunk sanitary sewer as the final phase of this multi-year project Rehabilitate designated sections of the deteriorating Ridout Street brick sanitary trunk sewer, as part of a multiphase/year project Start the process of reclaiming 30 hectares of wetland in the Dingman Creek Subwatershed Growth Continue construction on the Greenway WWTP expansion / CSO treatment project Construct the Hamlyn-Wonderland Sanitary Trunk sewer to accommodate growth in the southwest quadrant as per the 2014 Wastewater Servicing Master Plan Update and Development Charge Background Study and the Southwest Area Sanitary Servicing Master Plan Continue to undertake applicable studies, designs and construction of stormwater management facilities in accordance with the Growth Management Implementation Strategy (GMIS) 6

7 Complete updates to the water resources and slope stability components of subwatershed studies to establish water resources and stormwater management criteria for future growth under existing and climate change conditions Provide service area support for the Corporation s Industrial Land Development Strategy Efficiency Continue to implement a Computerized Maintenance Management System, to bring the utility s maintenance and work flow management up to industry standards. This will result in staff resource efficiencies, enhanced documentation, and cost tracking of maintenance activities, while also aiding in compliance with regulatory requirements Begin optimization projects at wastewater treatment facilities based on the results of the Wastewater Treatment optimization strategy Best Management Practices Measure and assess the effectiveness of the Sherwood Forest Disconnection Project while continuing to administer and promote the Sump Pump Grant Program to further alleviate basement flooding Consider implementing Storm Drainage Charges for vacant properties pending the outcome of a 2014 review. Implement the strategy for achieving an appropriate minimum reserve fund balance for the utility, consistent with corporate wide financial objectives Forecast Compliance Complete the first phase of a Thames River watershed-wide Water Management Study Complete the plan and commence work on measures identified as part of the Pollution Prevention and Control Plan Continue the stormwater management facility rehabilitation program, by rehabilitating an additional facility in 2016 and another in Timing of future rehabilitations will be determined by a report generated in 2015 Complete the Burbrook Trunk Storm Sewer (ES3054) project that will allow sewer separation works to advance, which will reduce the likelihood of sewer backups 7

8 Growth Complete Greenway plant expansion / CSO treatment project Construct the next scheduled phases of sanitary trunk sewers to accommodate growth in the southwest quadrant as per the 2014 Wastewater Servicing Master Plan Update and Development Charge Background Study and the Southwest Area Sanitary Servicing Master Plan Continue to provide storm/drainage and stormwater management servicing for the growth and prosperity of the City Assume various stormwater management facilities constructed by developers Implement various Development Charges-funded growth projects to support the Industrial Land Development Strategy Efficiency Optimize the Computerized Maintenance Management System Initiate long-term strategic planning based on preliminary results of the CMMS implementation Continue optimization projects at wastewater treatment facilities which are expected to commence in 2015 Best Management Practices Initiate flood proofing works for Greenway and Vauxhall treatment facilities to reduce the risk of catastrophic flooding in extreme weather events Continue the reclamation and rehabilitation of watercourse functional performance and ecological health What service adjustments do you plan to make? 2015 Budget Addition of 2 new resources in the Stormwater Management Unit to support design and construction activities associated with the influx of additional stormwater management facilities to be constructed in new development areas over the next 10 years Forecast None anticipated at this time, although service adjustments may be required pending the outcome of the Pollution Prevention and Control Plan and Wastewater Treatment Optimization project 8

9 Key Performance Indicators How Much? Description of measure Volume of wastewater treated (billion litres) Volume of stormwater managed (billion litres) Percentage of sanitary sewer system flushed (1) 86% 86% 81% 76% 67% 67% 4. Percentage of sewer system replaced, 1.3% 1.5% 1.3% 1.4% 1.4% 1.4% rehabilitated or relined 5. Percentage of stormwater management facilities rehabilitated (2) 8.3% 16.6% 10.0% 3.3% 3.3% 13.3% How Well? Description of measure Average annual cost for residential customer (3) $426 $446 $475 $489 $504 $ Percentage of Bio-chemical Oxygen Demand 99% 99% 99% 99% 99% 99% removed 8. Percentage of stormwater management facilities constructed as per the Just in Time Design and Construction Process N/A N/A 100% 100% 100% 100% Is Anyone Better Off? Description of measure Number of MOE effluent violations (4) Percentage of flooding complaints addressed 100% 100% 100% 100% 100% 100% 11. Number of blocked sewers per 100km length NOTE: 2013 values represent actual amounts; values represent forecasts (1) Current level of service requires the sanitary sewer collection system to be completely flushed once every 2 years. (2) Based on 30 existing stormwater management facilities. (3) Based on 2014 projected consumption of m 3 and does not incorporate future projected consumption declines. Actual cost may be lower as a result. (4) Not necessarily indicative of a risk to public health. 9