Review of Water Wastewater Services Capital Construction Planning Process

Transcription

1 Review of Water Wastewater Services Capital Construction Planning Process April 13, 2007 Report No Office of the County Auditor Evan A. Lukic, CPA County Auditor

2 EXECUTIVE SUMMARY The Office of the County Auditor conducted a review of the Water Wastewater Services (WWS) capital construction planning process, as performed by the Water Wastewater Engineering Division (WWED). This review was initiated by our Office as a part of a comprehensive approach to examining WWED related activities and processes. As many of the capital improvement projects at Water Wastewater Services require extensive foresight and development, our goal was to evaluate if the current planning process is sufficient to meet and anticipate the needs of Broward County. Our review indicates that WWED has developed a detailed process to assess the direct capital needs of their treatment plants, service delivery system and related equipment. In general, facility needs are identified, prioritized, budgeted and acted upon in an appropriate manner. However, due to pending regulatory changes, such as the limitations imposed on the Biscayne Aquifer, and the need for exploration of alternative water supply and treatment methodologies the availability of current resources may be adversely affected in the future. In this uncertain environment, maintaining comprehensive master planning documents to provide a strategic vision for all prospective options remains a critical function of the overall planning process. By focusing on the capital and budgetary aspects of planning, WWED has not consistently compiled or updated existing planning documents to provide an ongoing framework for future choices. Our primary concern is: WWS s planning process should be expanded to include regular and cohesive updates to existing master planning documents, facilitating progress towards future vision and goals. We would like to thank Water and Wastewater Engineering Division (WWED) employees who aided in the completion of this review. SCOPE AND OBJECTIVE The primary objective of this review was to evaluate the adequacy of the Water Wastewater Engineering Division s (WWED) capital planning process regarding: Implementation and review of master planning documents Assessments of customer needs and future resources Ongoing development of planning activities Capital budget process and tracking. Office of the County Auditor 1

3 METHODOLOGY To accomplish our objectives we reviewed: WWED service area maps, project reports and planning documents Master plan, ten year water supply work plan and annual reports Water and wastewater treatment plant repair and replacement projections WWED FY07 capital budget Organizational structure. In addition to the review of the information listed above, we: Conducted interviews with WWED staff Toured treatment plant facilities Applied other auditing procedures as deemed necessary. BACKGROUND Water and Wastewater Services (WWS) was established in as an office within the Public Works and Transportation Service Department. WWS provides water utility services for several areas of Broward County. The Division is accountable for the planning, design, and construction of facilities to ensure adequate capacity for potable water 2, sewer and storm water. WWS is also responsible for pumping, treating and distributing water, as well as providing for collection, treatment, reuse and disposal of wastewater. 3 Services are provided to over 50,000 residential and retail customers, representing over 600,000 citizens. 4 Areas served by WWS are divided into three s 5. Appendices A and B (pages 8 and 9) identify areas receiving water and wastewater services from WWS. Within WWS, Water and Wastewater Engineering Division s (WWED) primary mission is to manage the utility s one billion dollar capital improvement program. 6 Items contained in the capital budget include the Neighborhood Improvement Programs (NIP) 7, local utility infrastructure improvements not addressed in the NIP projects and 1 Water and Wastewater Systems Annual Report, Fiscal Year 2005, prepared for Broward County by Hazen and Sawyer, P.C. and Milian, Swain and Associates, Inc., April Water of sufficient quality to serve as drinking water is termed potable. Source: Wikipedia 3 Wastewater is water that has been adversely affected in quality by human processes; it may be discharged by residential or commercial properties and may include a wide range of contaminants. Source: Wikipedia 4 Public Works and Transportation website home page: 5 s 1 and 3 are further divided into sub-districts 1A and 1B and 3A and 3 B/C. 6 Water and Wastewater Systems Annual Report, Fiscal Year 2005, prepared for Broward County by Hazen and Sawyer, P.C. and Milian, Swain and Associates, Inc., April The Neighborhood Improvement Program (NIP) program is a multiyear project encompassing infrastructure improvements to 25 Broward County communities including drainage, water, sanitary sewers (septic tank removal), roadways and sidewalks. The cost of this program is in excess of $600 million. Office of the County Auditor 2

4 capital improvements 8 to the utility s water and wastewater treatment plants. Appendix C (page 10) provides a breakdown of all the facilities maintained by WWS. Exhibits 1 and 2 below provide additional details of the County s water and wastewater services. Exhibit 1: Water Services 9 40 mile service area 2 Water Treatment Plants 34 production wells million gallon storage capacity 680 miles of distribution mains 11 Exhibit 2: Wastewater Services mile service area North Regional Wastewater Treatment Plant 350 miles of gravity collection sewers lift stations 95 miles of force mains 10 master pump stations 14 WWED employs several processes to ensure the utility s assets are maintained and capable of providing services. Structural facilities are inspected annually by Water Wastewater Operations Division (WWOD). An assessment of conditions is completed and recommendations are made to repair or replace equipment based on current and projected use. Collection and distribution systems within the communities served were assessed in A prioritized 10 year schedule for necessary repairs was developed and is currently in its sixth year of implementation. As new projects are identified they are added to the schedule and corresponding budget year. Changes in industry trends and advances in treatment technology 15 also impact planned system modifications and enhancements. Additionally, WWED is in the process of creating a Geographic 8 WWED has defined capital improvements as repair or replace projects with a cost of $10,000 or more. 9 Water and Wastewater Systems Annual Report, Fiscal Year 2005, prepared for Broward County by Hazen and Sawyer, P.C. and Milian, Swain and Associates, Inc., April A well is an artificial excavation or structure established for the purpose of withdrawing water from underground aquifers. Source: Wikipedia 11 A water supply network provides for distribution through piping and water mains from storage facilities to consumption points. Source: Wikipedia 12 Water and Wastewater Systems Annual Report, Fiscal Year 2005, prepared for Broward County by Hazen and Sawyer, P.C. and Milian, Swain and Associates, Inc., April Wastewater collection systems consist of buried pipelines which convey the wastewater by gravity to the water treatment plant. Source: Wikipedia 14 Pump stations are facilities including pumps and equipment [such as lift stations and force mains] for pumping fluids from one place to another. They are used for a variety of infrastructure systems such as the removal of sewage to processing sites. Source: Wikipedia 15 Examples include: transition from liquid to gaseous chlorine for wastewater disinfection and fine bubble aeration processing utilized in wastewater treatment; and reverse osmosis process for purifying groundwater. Office of the County Auditor 3

5 Information System (GIS) database of all WWS infrastructure and delivery systems. The data is then utilized to chart and identify system inefficiencies. Cost data gathered from these processes is then compiled by WWED staff. Appendix D (page 10) provides a pie chart/table displaying the categorical distribution of funding as contained in WWED s FY07 capital budget. Cost projections for the next five years are also completed at this time. For FY08, WWED expanded their process to include a recalculation of previous budget estimates due to escalations in construction costs. As an Enterprise Fund, WWS capital projects are funded by revenue obtained from user fees. If necessary, bonds may be obtained to finance larger ventures. In addition to planning for the current needs of facilities and structures, WWED must also plan for the future population growth of Broward County. It is essential to forecast increased demands for services and the capability of current systems to meet anticipated needs. Pending regulatory changes will also have a significant impact on how WWS obtains its water supply and the methods by which wastewater is disposed of and/or treated. Regulatory factors affecting future operations of WWS include: Limitation on the permitted quantities of water able to be drawn from the 16, 17 Biscayne Aquifer Exploration of alternative water supply and treatment methodologies, such as reverse osmosis process 18 Increased regulations on ocean outfall (partially treated wastewater released into the Atlantic Ocean) limiting quantities permitted for discharge and/or requiring higher levels of treatment for nitrate removal 19 Increased regulations on treatment of wastewater disposed through deep well injection 20 Exploration of alternative wastewater disposal methodologies Expansion of wastewater reuse program (primarily for agricultural purposes) 16 A water-bearing layer of rock (including gravel and sand) that will yield water in usable quantity to a well or spring. Source: United States Environmental Protection Agency. 17 The Biscayne Aquifer is one of the most prolific aquifers in the world and has long been a primary water source for Broward County. 10 Year Water Supply Work Plan, completed by Broward County Department of Planning and Environmental Protection, Department of Public Works and Office of Environmental Services, February Reverse osmosis is a process commonly used for the desalination of water; it is the process of pushing a solution (salt water) through a filter that traps the solute (salt) on one side and allows the pure solvent (water) to be obtained from the other side. Source: Wikipedia 19 Wastewater may contain high levels of the nutrients nitrogen and phosphorus. Excessive release to the environment can cause overgrowth of weeds and algae. Source: Wikipedia 20 A process by which waste fluids are injected deep below the surface of the earth. Source: United States Environmental Protection Agency. Office of the County Auditor 4

6 To assist in the planning process, WWS has commissioned and participated in various studies. The most significant reports completed include: WWS Annual Report (completed for FY05 in April 2006) Year Water Supply Facilities Work Plan (completed in February 2004) 22 WWS Master Plan (completed in 2002) 23 All three reports, to varying degrees, discuss projected population growth, customer needs, facility conditions, system capabilities, recommended expansions and repairs. Additional smaller feasibility studies of a specific scope/focus may be completed by consultants throughout the year to supplement the above processes and aid WWS in making efficient choices. Observations and Discussion The following section of this report provides detailed information regarding observations made during our review. As necessary, additional information is provided in referenced appendices. WWS s planning process should be expanded to include regular and cohesive updates to existing master planning documents, facilitating progress towards future vision and goals. As noted above, three separate planning documents have been prepared to assist WWS in the planning process. Each of these reports discusses population growth, future regulations, current capacities and potential options. In addition to these primary documents, other feasibility and research studies are completed 24 on an as-needed basis to assist WWS in making operational decisions. Throughout our interview process, it was noted that WWED staff were knowledgeable and aware of the various pending issues that may affect future policy. However, the primary focus behind the majority of WWED s regular planning activities is the annual budget process. As a result, the capital budget has become the Division s principal comprehensive planning document. While it is recognized that the capital budget is critical component of planning, it appears that other planning activities (as demonstrated by various individually commissioned reports) have not been afforded a comparable level of cohesiveness and attention. 21 Water and Wastewater Systems Annual Report, Fiscal Year 2005, prepared for Broward County by Hazen and Sawyer, P.C and Milian, Swain and Associates, Inc., April Year Water Supply Work Plan, completed by Broward County Department of Planning and Environmental Protection, Department of Public Works and Office of Environmental Services, February Broward County Retail Service Water and Wastewater Service Master Plan, prepared for Broward County by Montgomery Watson Americas, Inc., February Studies may be completed in house, by consultants or in coordination with other municipalities. Office of the County Auditor 5

7 For example, in January 1996, Montgomery Watson Americas, Inc. was contracted by the County 25 to prepare the Broward County Retail Service Water and Wastewater Master Plan (Master Plan). The intention was to create a comprehensive planning document which provides recommendations for retail water and wastewater system improvements for the current condition as well as 5 year, 10 year and ultimate build-out planning milestones. 26 The document was completed in February of 2002 and fulfilled its goal, providing extensive information and analyses regarding current and future facility and consumer needs as well as an exploration of expansion options. However, the Master Plan has not been updated in the five years since it was created, and WWS staff stated that there are no current plans to do so. The 2002 Master Plan was developed using 1990 US Census data and is now considerably outdated. Furthermore, at the time of its completion, the plan was not presented to the Board for approval or acceptance. The 10 Year Water Supply Facilities Work Plan was completed in February This plan provides a detailed analysis of WWS service areas as well as other major County utilities. The work plan also explores population growth levels and potential means to meet future water supply demands 27, including a conservation policy. This plan uses 2000 US Census data, and WWED staff has stated their intention to update this document during WWS Annual Report has been prepared by the consulting firm Hazen and Sawyer, P.C. since The 2006 Annual report has not yet been completed. The 2005 report includes descriptions of current programs and facilities, and discusses future needs and possible remedies. As WWS becomes aware of potential regulatory or environmental changes individual studies are completed which provide staff with valuable information. Examples of ongoing and completed reports include: Comparative Assessment of Human and Sociological Impacts from Municipal Wastewater Disposal Methods in Southeast Florida (2001) Biosolids Management Plan (2001) Wastewater Treatment Wetlands Conceptual Feasibility Study (2002) Reclaimed Water Feasibility Study (2004) Examination of the Use of Deep Injection Wells in Broward County and Alternative Techniques (2004) Florida Atlantic Coast Environment (FACE) Initiative (ongoing) Regional Alternative Water Supply Study (ongoing) 25 Broward County Retail Service Water and Wastewater Master Plan, prepared for Broward County by Montgomery Watson Americas, Inc., February Broward County Retail Service Water and Wastewater Master Plan, prepared for Broward County by Montgomery Watson Americas, Inc., February Wastewater needs are not addressed in this document. Office of the County Auditor 6

8 Although each of these documents provides important information, there is currently no singular comprehensive planning document or vision for the future that clearly states WWS intentions, rather than potential courses of action. While it is understood that many considerations remain uncertain at this time thus impeding WWS ability to formulate a more definitive plan, this may also be viewed as the time to develop a plan with multiple strategies that can be explored as pending regulations are determined. The plan itself should be updated on an annual basis, supplemented as needed by additional population growth and facility condition studies. The Government Finance Officers Association (GFOA) recommends 28 that governments implement interim reviews of their strategic plans every one to three years, with comprehensive updates every five to ten years. It is also recommended 29 that the plan be formally approved by policymakers to provide context for policy and budgetary decisions. Capital planning is recognized as a significant component of the overall planning process; however, our review indicates that WWS has become overly reliant on the annual budget cycle in its planning process. This has resulted in the exclusion of other activities necessary to round out and complete the overall strategic planning process. The GFOA notes 30 that a prudent capital plan identifies and prioritizes expected needs based on a strategic plan. Without regular updates to their Master Plan WWS does not have a sufficient guiding framework for the decisions made in the capital plan. Creating a regular schedule for interim and/or formal updates, will enhance staff ownership of future goals and will allow improved communication internally as well as with external stakeholders. Recommendations We recommend that the Board direct the County Administrator to ensure that in the future, WWS: Establishes additional processes to enhance the current planning activities to include: 1. Creation of a comprehensive and cohesive master planning document, inclusive of a strategic vision, project prioritization guidelines and future regulatory change considerations, 2. Regular and timely updates to the formal Master Plan, as may be supplemented on an interim basis by other comprehensive planning documents described above 3. Presentation of subsequent Master Plans to the Board for approval 28 GFOA Recommended Budget Practice on the Establishment of Strategic Plans (2005) 29 Ibid 30 GFOA Recommended Practice Multi-Year Capital Planning (2006) Office of the County Auditor 7

9 Appendix A Broward County WWS Water Service Area Map Source: Water and Wastewater Systems Annual Report, Fiscal Year 2005, prepared for Broward County by Hazen and Sawyer, P.C and Milian, Swain and Associates, Inc., April 2006 Office of the County Auditor 8

10 Appendix B Broward County WWS Wastewater Service Area Map Source: Water and Wastewater Systems Annual Report, Fiscal Year 2005, prepared for Broward County by Hazen and Sawyer, P.C and Milian, Swain and Associates, Inc., April 2006 Office of the County Auditor 9

11 Appendix C Appendix D Summary of WWS Facilities Wastewater Facilities Facility Type Total Service Area (miles) Wastewater Treatment Plant Gravity Collection Sewers (miles) Lift Station Force Mains (miles) Master Pump Station Water Facilities Facility Type Total Service Area (miles) Water Treatment Plant Production Wells Storage Capacity (million gallons) Distribution Mains Source: Water and Wastewater Systems Annual Report, Fiscal Year 2005 WWS FY 2007 Capital Budget $78,078,511 21% 1% 6% 1% 9% 9% 5% 48% Regional Treatment $7,299,610 Regional Transmission $3,900,990 Retail Mains $37,012,000 Retail Water Treatment $7,384,000 Retail Water Transmission $699,000 Retail Other $4,778,610 Lift Stations $960,301 Retail NIPs $16,044,000 Source: Office of the County Auditor Analysis Office of the County Auditor 10