Great Lakes Water Authority - Capital Planning Committee
2:00PM Sep 13, 2022
I ask you to make questions. Well, it's a big topic. So the good thing is you got lots of time to ask questions. It's good recording in progress. It is 10 o'clock. Okay. Well, I've been shooting for the chair, which is Jerry Brown, so call the meeting to order. And I guess we'll ask her Shonda to do a quorum.
ACTING CHAIRPERSON sec. I'm here. And chairperson Brown is excused from today's meeting.
Okay. Mr. Chairman, if I may, William Watson, Chief Administrative and compliance officer, just so any members of the public that are attending this meeting, understand that these committees, our advisory committees to the full board, and as such that we conduct them in compliance with the Michigan Open Meetings Act, they are not subject to that law because their intent is purely advisory and that is why we are able to proceed with one member chairing the committee. Thank you. Mr. Chairman.
Thank you. Okay. So I don't number four on the agenda is Approval of the minutes. This is only myself here. Do we let that go to the next meeting?
Unless there's any we can let that go to the next meeting.
Okay, so the next item on the agenda is public comment. Below Would you explain to the public,
William Olsen Chief Administrative and Compliance Officer although as I indicated earlier, these meetings are not subject to the Open Meetings Act we do try to conduct them in conformity and that is to give the public an opportunity for input before the committee. There are two ways that a member of the public can do that. They can either raise their hand on the app, and we will be looking for those raised hands or if they are participating by telephone, they can press star nine on their receiver. So at this point, Mr. Chairman, a call for public comment would be an order.
Thank you, Mr. Wilson. Is there anybody that would like to address the committee? Anybody from the public either by raising your hand as he indicated or asking to be recognized?
Mr. Chairman, I did not see any hands up at this time. A second call would be an order.
Is there anybody that would like to address the committee?
Again, no, no hands up, Mr. Chairman. So our final call for public comment if you would,
Okay, one last time, anybody from the public that would like to address the committee? Please let us know.
And again, Mr. Chairman, there is no public comment so we can move forward with the agenda.
Okay, item number six communications. Are there any communications that need to be discussed?
As the chairman there are no communications for this committee? Okay, number
item seven on the agenda is all business of which there is none. So we'll move on to item number eight on the agenda, new business. Item eight, A is the CIP program update. Speakers are Dima ELGamal and Jody Caldwell, would you like to begin either one of you?
Yes, thank you, Mr. Chairman. Good morning. My name is Jody Caldwell, Interim Chief Planning Officer for the Great Lakes Water Authority. Thank you very much for your time this morning. For us to provide several CIP updates, CIP program management progress update, and we're going to provide several water and wastewater highlighted projects. And we're going to conclude with a discussion regarding the economic outlook Task Force updates that is currently underway. The whole cross functional CIP delivery team has been working very, very hard to prepare for the fiscal year 2024 through 2020, a capital improvement plan and today's presentation will provide that status of that update as well as the next steps in the schedule as we move forward. Now I'll turn it over to Dima ELGamal GLBA is capital improvement planning director for today's presentation. Thank
you. Thank you, Jodi. And good morning, everyone. Good morning, Chairman Zack. I will like Jodi mentioned I'm happy to go over our CIP program update for today. And I'm gonna share my screen so give me one second. Make sure that button please let me know when you see my screen. I can see your screen. Wonderful. So we're going to start and the agenda for today for the CIP portion, where I'm going to provide updates will talk about KPIs for FY 2022. We want to also cover the milestone schedule that FY 24 to 28 is going through. There's a lot of efforts that are being incorporated by all cross functional teams within the CIP delivery group and we're going to talk about alignment update as well. We're not done but we want to want to give you guys an update on where things stand and then I'm going to turn it over to Donald Baron from ATAR to give us program management of data as well toward the end of the presentation. So we will want to start by covering the 2522 KPIs for water and wastewater. We ended the year on a really good note. We're almost at 92% on water from the monthly prorated approved tip plan and we've even exceeded the adopted capital spend ratio amount by 23%. So really good progress on water as well as in wastewater we, we did get a little bit of a setback at the beginning on on execution of construction due to a lot of factors. And with that being said we've wastewater finished at about 69% of the monthly prorated approved CIP and at 81% of the adopted capital spend ratio. We will continue to improve and work on expanding and efficiently executing CIP projects for future years and continue to meet KPIs as close as the market can can help. And I am having difficulty with my mouse not moving my second
Okay, now we're back on. Okay, as far as the FY 2428 CIP schedule, you've heard you've heard and see FCM and have seen this roadmap before. We've gone a long way a lot of effort has been expended on putting together the FY 2428 great input from community partners on the scoring which was done in July last August. Everyone rolled up their sleeves and worked on trying to put together an alignment scenario for to be able to align with the financial plan. We do have the 10 year financial plan we have the list of projects and everything from water wastewater and CIP team were working diligently to get projects from into the alignment into an alignment scenario and including the challenges that we have related to delayed procurement as well as lead time as well as cost and market values. So with that being said, we are here today at the Capital Planning Committee meeting and at this time, we do have an alignment scenario but we're still working with with refining those alignment scenarios and making sure that we address the impacts of these drop off any alignment choices that we make. You've heard me say it before it's the alignment process is a tough process within GE LW a system simply because the system is all we have a lot of needs, the system needs to continue to operate. And the choices become a little bit challenging when when we're trying to align the needs of the system with a financial plan. And on that note, I you know, I want to be able to kind of bring some great news we have we have optimized our process dramatically. All the teams have worked tremendously and put a lot of effort into this alignment process that we went through last year, like last couple of months. And with the CIP optimization that we've implemented on the CIP side, now we have a dashboard for example, that can show the PMs real time. How are we doing and where are we in alignment and as you can see this this is part of the dashboard that we use during alignment we have a target value, the green is the board approved value and dark blue is basically where we sit in alignment right now. So we're really good status on water from from an alignment scenario. Having that said, I want to reflect a little bit on that alignment itself and the numbers. Our target budget for FY 24 to 28 was about 965 million for water and 760 for wastewater. The current scenario that we have in place is hovering around these numbers 972 million for water and 761 for wastewater. So that's it's a really good status that we're sitting in more detail on water alignment. If you know if you would like to look at the stable, we're looking at FY 24 on monthly basis on annual basis. All the way to 28. We can think about the average that was approved by the board $198 million versus the current scenario at $194 million. I want to point out the fact that these are still numbers in the works they're not final, we continue to refine and you continue to align. But we are we are closer in alignment than what when we were when we started this process. I can I can assure you that everyone worked hard to get the numbers all the way from 1.3 billion
to where it's at right now. Now that did not come
easy. Decisions were made those hard decisions involve delaying some projects. As I mentioned, the numbers were high we had to come come down with to align with the financial plan, which meant that certain projects or certain phases within projects need to be relooked at and further evaluated. And I provided some examples here along with their impact. For example, I'm going to go to the middle project spring grills Water Treatment Plant Lola's in high lift pumping station improvement. The engineers, the project managers and the water team looked at that project they decided to push one of the phases under that project is two years beyond what it started, it used to be that this is this is basically more of sequencing and making sure that the contracts are well set. So we have electrical needs for that project that do take a priority. So those will take place in time. So there will be no delay. But then other other components of the projects were pushed out to start after the electrical contract is is executed and completed. So the project was pushed to yours but not the entire project, just certain components. Which which would be in this case replacement of pumps for integration project is previous Water Treatment Plant sedimentation basin. on that project, the project got extended, and it was you know, in order to address the recent sanitary survey, the project contract finish date was extended to complete the items in the 1930 mixing chamber. Lake Huron Water Treatment Plant low lift and high lift this this project the funding gap got increased and we all know that we have market value issue. The CIP was split into five construction contracts is split five construction contract so that we can minimize minimize interruption to the plan. And I'm gonna invite Pete from and Sharon Porter to further elaborate on this on the slide if you if I missed anything or if you have any comments
no comments for me. Thank you. Thank you.
Same here thank you.
Thank you, Pete. So on the wastewater component on the wastewater side we did the same. We basically looked at the alignment and the board approved is 161 million average on annual basis. We are at 152 million average on an annual basis. Why is the board approved a little bit higher than where we're at? Because right now we are looking at a different five year period. The Board approved. You know, we're trying to maintain the average of 152 for the five year similar to what we did in the last five years. FY 23 to 27. Again, a lot of effort. We were also close to 1.3 billion there and we got to 760 million total over the five years for wastewater. I want to repeat myself this did not come easy. And wastewater team had to make some some hard decisions as well here trying to manage the needs of the system. So a couple of examples worth rehab of the primary clarifiers cancer removal system. This project was delayed by four years from what it was before in the previous approved plant. This is going to have an impact on operation, increased RNM and it might also impact our water quality and meeting our permits. As you know you know not having a scum system operating well in the primary clarifiers can impact the aeration basin and movement and in fact the water quality that comes out of out of the entire treatment process. Again, these are difficult decisions that that the team had to make in order to make sure that we can align with the financial system or the financial plan. The pilot co netting facility was was pushed 10 years it's a $29 million budget and increase in the I think the you know the the peons made a decision on that and I'm going to invite also Navy as well as Chris if they want to make any comments on this.
Um, no additional comments for me can elaborate if any questions are there.
Sam. I don't know if you can see me or hear me but
Thank you, Chris.
So what is next? As I mentioned earlier, we're not done with alignment. We have we have this we have an alignment scenario that we need to refine further look at both of both these water and wastewater are looking at those alignment. We want to we want to see the economic Task Force recommendations and see how that will impact the decisions that were made recently in the scenarios that we have. So the next couple of weeks are going to be extremely vibrant and will require some some really defined answers so that we can get to the draft one in October 18 and be able to present a draft to you as well as provide the public with a public comment period. And to be able to jump to the draft to presentation hopefully in December of 2022. And with that I would conclude my portion of the presentation but before I move I give it to Donal I would pause for any questions.
Oh, Dima, could you go back to slides? To the wastewater item right there. That's good. Go go forward. One more. Right there. Yep. The looking at that project, the comments section. And perhaps maybe, or Chris need to get involved with this discussion. Maybe he'd been Suzanne and Nikki etc. But when I look at this or looked at this, prior to today's meeting, and I read the comments area, this allows for development, et cetera, et cetera, in the secondary system that will lead to permit violation. The it's just something that you would bounce off of, for lack of better words. To state to kind of get their input into how this should be handled. Whenever I see something that says permit, possibly permit violation, that that piques my curiosity, as well as raises my level of concern, I guess would be the proper way to say it. I certainly don't want to put us in a situation I'm sure you don't either of having any issues with the state permit wise, so on and so forth. So what what do what do the does the team do with something like this?
Great question. I'm back to Zack. So first, when when we made this, so it was as Dima indicated, very difficult decisions right. One of the primary things we took into consideration was reliability, and reliability and redundancy within the process areas to make sure that our investments are made into our existing assets. Unfortunately, this project, although it is very important, as you can see, and so as many of our projects, they could potentially lead to a violation if the firt right plant operation is very strategic, a lot of components are in operations and therefore it's important when we look at our projects at the plant, although they're not directly impacted to the remember partners as as a response. It's a little bit more difficult as we're thinking through what improvements we've made. So and that's, that's as it relates to the entire portfolio for the plants. This specific one the reason we were able to move it so there is definitely a potential for our cardio build up that generates more solid signal over the weirs that could potentially lead increase our total solids suspended solids which is really the the solids in wastewater to go over the weirs and into our effluent. We have mitigation strategies that would increase our own M costs potentially, we would have to bring in chemical trucks that we would add at the secondary treatment to be able to mitigate this issue. The cardia doesn't happen year round and happens more during the warmer seasons. So therefore we have to manage specifically, our team monitors are very closely are activated sludge process and when we start seeing the growth, we respond appropriately. So the potential is always there. Right because it's not we're not putting engineering in place right. Whenever you look at for example hierarchies for safety, right when you look at that you try to put engineering measures and then you put in then you put people measures and then you put personal protection equipment in and those different layers for us for this specific project. We're taking some of the engineering controls away, which would have been the improvement and we're going to put in operational controls to be able to monitor the performance of Nocardia in our secondary system. So that's for this specific project. We will engage Eagle absolutely at some point that you know, we have a very good relationship with our regulators and B. We partner with them on many of our projects. If I were to guess this is not something they're, you know, they're going to be necessarily happy with. But at the end of the day, we have to look at affordability. We have to look at what we can do within our projects and you know moving water versus water quality. Looking at those different scenarios. We're we're prioritizing appropriately. Ambi will continue to work with them and make the commitments we have to do to be able to stay compliant and then they my team is dedicated for compliance. It's just we have to be more diligent on the space.
Okay, I'm just thinking out loud here. And and I'm a little rusty, I guess I my memory relative to the grant that the state of Michigan awarded Great Lakes $25 million that was for wastewater was not wasn't not or was it for flooding.
Flutter director Zach it was a wastewater project. I don't think we had specificity around what element of wastewater but it was a wastewater project. It wasn't
Yeah, it could. So obviously, Suzanne, when the staff through you submitted that request to the state, and I realized there were a number of requests that were made, and that was the one that was selected by them to give funding to Great Lakes is should some of that money be discussed with the state to perhaps use it to deal with this particular matter? So we don't I realize it's like standing at the edge of a cliff. You know, you potentially could fall over. But the further away you get from the edge of the cliff, the less the chances are that you'll run into a situation where you could run into a permit violation. Does it makes sense to speak with Eagle about moving some of that 25 million into this area of wastewater treatment, as opposed to maybe where you actually when you wrote the grant request, had intended or does that not make sense at this point?
If I may,
service chairman, as you recall, and we can certainly have a cold session with the board to discuss that. But as you recall, the governor sent a letter regarding her intent. Her intent for the uses of that money, we certainly are looking at projects that would be available there is no limit on it. So this might be this is this is certainly one that would be considered. But ultimately we also have other stakeholders that are hoping, you know, looking for our disbursement and we can give you more detail in a closed session, if you wish.
Okay. Well, I'm just an I would add, just to just to add on that director Zach is so these are examples, right? And there are more right there were there were several projects and I think we just because of our first time, these are just a few examples. But there are a list of projects, I would say north of 15 projects that were aligned or moved or adjusted appropriately for us to be able to manage the portfolio to the funding that's available. And And another important thing that I think is important to note is that unfortunately, even though we submitted many projects within our SRF the prioritization list that was published by the state didn't recognize too many of our projects. I think only one project was funded under SRF. One project was the only one that actually was granted some grant money, like almost less than 10% as associated with it, so the remainder of our projects and our portfolio did not receive the support that I was hoping for in the prioritization that I was hoping for so. So it is the challenges that we face? And yeah, I definitely think those are great questions. And we hope to as we as we walk through the development of our portfolio, we'll be engaging Eagle for sure, on some of the changes that are being made.
It's just, you know, we're talking long range planning here. And, and, and, you know, I, I understand the gymnastics I guess mental gymnastics, all of you have had to go through, particularly this year, with inflation being what's going on and shortage of labor. The weather has been pretty cooperative this year in terms of, you know, construction and etc. But given the age of the system, or various parts of the system that Great Lakes, operates overseas. It then kind of begs the question that that we certainly don't want to get ourselves into a situation where we've got multiple areas where we could have weaknesses. On the other hand, the only way too many ways to deal with this is to increase revenue. And nobody likes to see spikes in the in revenue request. So I'm just thinking out loud here with you. I realized we're this is still in development. But I felt the need after looking at the packet that was sent to me to ask you about this particular matter, because it mentions the potential for a permit violation. And so thank you for your responses. And so proceed. Proceed. Thank you.
I'd like to get the data if it's okay real quick because I think this is really important. So directors neck I'm glad that you brought it up in I appreciate the fact that our chief operating officers or directors of engineering or our director of CIP, our chief Planning Officer, all working diligently Dima made that comment and in every year they work diligently I would tell you this year is particularly difficult. And the Catholic the contrast between you know what we would like to do and what we can afford to do is never been greater than it is at this moment, at least for JL WA. And you know, in the past I think we, it's there's always tension between what you want to do and what you can afford to do and there's always risk associated with you know, putting out projects and the reason that's the case is because we don't do projects we don't need right all projects are needed. So when you put projects off, you always do have some level of increased risk and just like Naveed indicated, you then look to Okay, if that's what we have to do. What are the engineering controls or other controls we can put in place to mitigate risk. There's no doubt and I'm glad you said it. Naveed This is an example. There are lots and lots of projects that those kinds of conversations happen around this year especially and it's not just on the wastewater side. We're parked here for this minute on this, this particular slide but the same is true clearly on the water side. So it's a challenging time. And I don't want to give the perception that this is like a normal year. It's much more challenging this year. The good thing is we have flexibility and that we are able to make these decisions. The tough thing is we have to then talk about what are we going to do to mitigate risk. And so those are all the things that are in our mind as we walk through this and I just thought it was important to make sure that we have that we sit in this slide for this moment and talk about the fact that that is a particularly challenging year. So I've no doubt will rise to the occasion just like Naveen said, but it would be remiss of me not to take a minute and let you know how tough it's been this year to work through this process. And we're not done yet. Just like Dima said we're still working through we've got more to do that you can see in that timeline that she put up you know, we're fast approaching, you know where it is that we're going to want to publish something for comment by our member partners and have more specificity around it. But the rubber is meeting the road at this point. It's a challenging time.
Okay, thank you. Thank you. So we're going to proceed now to Item B. Is that where we're at Dima and Jody has or something more to talk about under item a
chairman Zack, I do have a couple of more slides that are okay. Please proceed to Donald Barron from a comp to talk about our program. Just give you a quick update. So on I'm having difficulties navigating my my screen today. I apologize for that. So if Donald is I'm going to turn it over to Donald now to talk about program management update.
Yeah, yeah. So good morning, everybody. And yes, we actually only have a couple of slides. So if you wouldn't mind the image just continuing with the with the viewing. Just a synopsis of where we've been focusing our energies been focused on task five, obviously as Dima said supporting this this very intensive alignment and CIP development phase. Also, we've been working on task two, finishing up chapters and starting to think about training lpm and, and thinking of management leads on the content of these chapters. We have some chapters left to do still, but they're minor. Chapter 15 is actually very tied in with the CIP development because that is the CIP development chapter. So we want to do with, you know, in the next couple of months when it's all fresh in our minds, and we see the pros and the cons of, you know, what happens during the CIP development. We've completed a lot here in the last month, six weeks on scoring, and alignment, working with a PMs on refining the date in the portal. That works work still to be done, As Suzanne said, but we've made a lot of progress. there working on the roles transition and recruitment strategies and some success there in recruitment, especially on the wastewater side. On task seven, we continue to support where needed you know, we're finishing up some basic design reports finished. Southfield Hubbell wrapping up spring wells, still working on other others being bringing in more people to help some schedulers to support the PMs during the you know the transition to the new data management, working helping Pete and his team with some pipeline projects. So that's been the class basically the current status of for working on next slide. It talks about where we're heading. So the next slide I think team it talks about task seven and task nine, but can basically continuing to support is kind of the main objective. And on chat on task two and task five, wrapping up the alignment. Wrapping up the CIP development of the document you know, getting that document as set published notice the member agencies will continue working on the PMP and continue trying to staff on the lpm and tml side. And, you know, more work on refining how we manage data and numbers in the CIP. And I think that's pretty much all I had, all I had, and this is just a slide that shows the visually the, the status, you know, the the two the two chapters that we just finished our Quality Management Risk Management. They're kind of very important chapter especially the risk management one and also chapter 15. As I as I mentioned, it's so timely to be working on that one. Some of the some of the chapters on the right hand side will be pushed out a little bit. They'll they'll deal dovetail in with other efforts you know, like the PMI s and then on the on the left hand side are some smaller chapters on permitting and public information, stakeholder management. So that's kind of a wrap up of where we're at the moment be happy to take any questions.
No questions for me, Donald. Thank you.
Thank you. Thank you, Director.
Thank you, Donnell and directors Aqua. That concludes the CIP presentation for GHS done.
Okay. All right. Well, I think it's show portraits turn on Item eight. Be Hi Cheryl.
Hi, Director sec. This is Cheryl Porter chief operating officer for water and field services. It is our pleasure to showcase a couple of projects that are in the midst of construction to show how the money is being spent and how we're making improvements in the water operations. So I'm not going to delay in we're gonna turn it over to Pete from a manager in water engineering.
The morning Thank you Cheryl. Good morning, Director Zach Pete farm manager in water engineering. We will highlight two of our current construction projects this morning to the group.
Our first project that we are going to present is our phase 214 mile transmission main loop project, the CIP 122013. This project type is a traditional design bid build, where we have two main contracts under the CIP one is our design, construction assistance in our PR contract. And a second one is a construction contract underneath the CIP already
you're sharing. Yeah,
not sharing anymore. I apologize. I apologize for that. Okay. So as I was just briefly touching on, this was our first slide the fees fees to a 14 mile transmission main, where we have two two contracts under the CIP for this phase. This is being led by a project manager Victoria Hogue going into project description, the existing 14 mile transmission lane is the single line that supplies drinking water to multiple communities. No vi Farmington Hills, West Bloomfield, comas walled Lake and Wixom. If there was a disruption to service on the 14 mile transmission main, these communities would have loss of water pressure, what total loss of service depending on the disruption to provide redundancy to this area. We have installed a new parallel transmission main along 14 mile, which is a 24 inch transmission main that went from five and then that was our phase one. And then in our current phase two we are installing a new transmission main that is connecting the 14 mile down to an eight mile transmission main system together. And that is being constructed right now. This phase two consists of approximately seven and a half miles 54 inch transmission Maine between eight mile and 14 mile with some yard piping and a reservoir fill line improvement at Haggerty booster station. We are installing a control valve to help regulate flow to and from 14 mile transmission main system. And this phase two also has seven, seven tunnels that are going under or adjacent of i 275 i 96 and five kind of give you on this on the right hand side of my mouse. This is the phase two in purple. Haggerty booster station. Is this boxia In phase two is coming down from 14 mile down to eight mile crossing major. I'm that route.
Looking at a brief cost and schedule summary as I split this out in the design and construction phase you'll see that the design costs that includes the phase one and phase two design is $9,632,616 total contract built to date which is up to July of this year. We are at $7,180,534 which is we are at 75% cost cost to bait for for that contract. For the construction of this face to you the contract value is $92,468,705 and built to date we are at $16,426,976 and we are at 18% complete. So the the design started on March the 12th of 2019. And the construction for the phase two started almost about a year ago October the 10th of 2021. And we are projecting for the construction to finish on February the 20th 2024. With the design finish of January the 12th of 2025 to allow us to ensure that we get all the as built drawings, close out documents that the designer is required to do and that we have enough time to be able to close that contract. out and that's the reason why the design and date is a little bit after the construction and date. So moving into some pictures of this work knowing that this is a active construction site back in March on the left hand side this is the 54 inch transmission mains that is getting installed between 13 and 14 mile road along M five and then on the right hand side. This is the backfill operation that has taken place of backfilling. The pipe along that route there moving into April of 2022 of this year, this is one of the launch shafts of excavation. This is located up by M five
this is a very large shaft it's probably about 40 feet in diameter and 40 feet deep. The picture on the right hand side shows a 72 inch carrier pipe that gets installed first with a micro tunneling system that's in there that is tunneling in front and this guy pipe is getting pushed through on the M five and then a transmission main is placed inside of that and carried throughout the tunnel to the other side. This is a very large operation that's taking place going to June of 2022 this is another picture of the transmission main that is getting installed. Heading towards the Haggerty booster station. And then in August of this year we started the micro piling down metal Brook road and this micro piling is where we are drilling shafts I will say that once once we drill this hole we are putting rebar down down in the in the pile. And then we we fill it with concrete. And this is this is the first operation and then we'll come through and we will open trench this area and the new transmission main will sit on the MCC micro piling to provide structural support to a new transmission main. So the micro piling is is in process right now and then will fall behind with open excavation and have a new transmission main set on this Michael piling believe that was the last picture for 14 mile I can pause here to take any questions or if you want me to move to our next project.
No questions about this. So you can proceed. Pete Thank
you. Our next project that we wanted to give a brief update on is yod piping valves and venturi meter replacement at our waterworks Park water treatment plant the CIP 115001. Again this is another traditional design bid build where we have two contracts under here. First is ces 055 Design Construction assistance in our PR and then construction contract 200 06 10. This is being managed by Jacob Mangum. One of our engineers inside of our group. We've project description. waterworks pucks. Water M site waterworks pucks a water treatment plant serves low and intermediate pressure. Districts in Gao WA is water transmission main system. Finish water leaves the high lift pump station fed by six headers and connected to 15 District water transmission main systems and due to the age and the unknown of the condition of this yard piping and associated valves. We went in to go and we place the odd piping and valves to be able to have more a better metering system coming out of our finish water and the piping and valves as you'll see in the pictures to come at the end of its life. So the scope of work for this project is to replace the four header pipes with spiral welded steel pipe for venturi meters 27 isolation valves. The new pipe configuration provides a simplified layout to increase redundancy and piping and metering. The two new pressure regulator Station we're installing two new pressure regulator stations to provide an a connection between the high left and immediate pressure zones piping valves and venturi meter replacement is broken down into the eastern and western portion to ensure that we can provide water during this construction duration and there is a new site entrance and exit with the security station installed under this contract. So again, they just kind of give the high level cost and schedule summary broke this down again in design and construction the design contract is $5,598,494 built to date is $2,945,158 at 53% complete, and then the construction contract is $49,467,913 and build to date is $10,008,181 at 20% complete. The design for this project kicked off on June the 26th of 2017. In the construction contract kicked off on October 19 2020. We are looking at the construction scheduled to be finishing on September the 13th 2025 with the design contract finishing on much the first 2026 The same reason of the 14 mile is to give us enough time to close the contract out get all the as built documents complete with the with a designer looking at some existing conditions prior to the project starting this is the existing site and Transat waterworks park on the left hand side and then on the right hand side is a high lift pumping station in April of 2021 started to install the 12 inch storm going over to the new security station and then on the right hand side preparing 21 Double A stone for the new road. Going over to the cert security system station as well.
In June 2021 The roadway continued to be installed and then this is one of the swing on gate foundations. That that is currently installed by that you will see and that was the start of construction there for that final grading and continues on the road in August of 2021. And then also, the crew started to do potholing investigation on the existing water main for the odd piping at that time as well. In January 2022 The new entrance and security station went into service as you can see in both of these pictures. That's it it's a big upgrade to waterworks Park. And both of these pictures show that one is facing towards waterworks park on the left hand side and the other photograph is facing out towards Jefferson showing both both views of the new entrance and exit and the new security station. In March of 2022 we started to install the 48 inch line stops. This is showing a picture of one of the line stops on the left hand side and then on the right hand side you are seeing the the tapping unit installed for the livestock to be able to provide us isolation to be able to start removing and replacing the piping and valves. In June of 2020 tour this is installing the pipe cap at IP 10. That takes a lot of effort. You can see that it's a large diameter pipe that we are working with here as well. In July of 2022 this is showing removal of some of the existing valves that were installed originally and and then also on the right hand side it's the head of pipe of IP oh five at the high lift pumping station. That kind of gives you an idea of how large this project is. Boy, no question in July of 2022. This shows the concrete forms being removed in the photos for the for AMS 05. And then on the right hand side this is the installation of the venturi meter ml five that's being installed on the right hand side and then with that I will take any questions.
Hit the analysis as to when you feel you will be completed for both of the projects that you've highlighted. The I assume some of the for lack of better words, the completion date estimates had to be adjusted maybe from the original plan to where we are now due to the pandemic that did you find or in these projects and other projects that the it just has taken longer. To do things due to the pandemic and people perhaps having to you know, unable to report to work so to speak because of you know, COVID concerns or has that really kind of at this point kind of started to go back to what I'll call normal.
So I'll I'll take that question. We made a very strategic decision because a lot of our capital projects are outside and away from our team members. To continue with our construction during COVID. So we were very strategic in allowing all of our capital projects to continue. The delays if we have any delays were due to system vulnerabilities. We had the 14 mile break and 2021 and then when you've got the 120 Now when you have those kinds of vulnerabilities in your system, it's not really feasible to continue with capital projects because it makes us even more vulnerable. So any construction delays we saw it would have been due to operational issues not necessarily associated with the pandemic in particular.
Thank you. Thank you. Sure. Okay, well done. Are we ready to move on to Item C? Are there other things you'd like to say before we move on? Sure. Or Pete?
Nope. Just thank you for your time and attention. Your questions.
Okay, Naveed you're up.
Mr. Chairman Avi muram, Chief Operating Officer for wastewater operations. Today with me is Sally, our director, engineering for CIP. And he is going to be walking through several projects that him his team example projects that he and his team are working on currently. So turn over to Chris take it away Chris.
Good morning directors I just checking that everyone can see my screen.
I can see it. Excellent. Okay.
So again, my name is Chris Estelle. I'm Director of Engineering for wastewater. And this morning, there we go. I'm going to talk to you about three of our CIP projects. The first project is our pump station to bar racking grid improvements project, that CIP 211 007 The second project is our W RF structural rehabilitation project and that is 216001. And then the last project I'm going to touch on today is our Oakwood HVAC improvements project and that is 260618. So first project, pump station two bar rack and grid improvements project. This is a design bid build project, our project managers, Jason Williams. We are about halfway, a little less than halfway through the design phase of this project. And we are anticipating completing the design at this time around the end of May next year. Our design contract is with Hazen. And Sawyer for about $11.3 million and after design, we anticipate construction completing sometime around the end of 2030. So yeah, a long time so need for the project. You know, primarily this project is to improve material removal and material handling of our screenings, and our grit. So I kind of showed two pictures here just to the right and I'll cover those. You know, the largest picture shows our grit, our aerated grit tanks being taken out of service. And what remains when they're taken out of service which is just mounds of grit. This these mountains of grit actually stopped the tank from removing grit effectively and results in grit carrying on further through the wastewater treatment process and grit is very hard on our equipment, especially our pumps. The lower photo shows our screenings or screenings essentially come up our bar x and they're deposited directly on a rubber conveyor belt, and that conveyor belt dumps just the raw screenings right into a dumpster. So they're not rinsed off. They're not the watered and so it's kind of smelly, and you can actually see in that photograph, you know, they the water essentially out of the dumpster and into a drain in the floor. And so this project is really to address, you know, how we handle screening and how we handle grit. So, just a high level overview of the project is we plan on reducing the bar screen size so that not only are we doing a better job of handling our screenings, but we're actually going to capture more screenings upfront before they have a chance to make their way through the rest of the wastewater treatment process. will also be washing those screenings and compacting them so that we're not hauling screenings plus water off to a landfill and paying for that disposal of water. We're installing screen bypass channels really for redundancy in case our screens blind during, you know, wet weather events that we have the ability to pass flow through more channels. We are improving our grid capture and our grid classification. So installing new units which I'll touch on here in just a moment, which will do a better job at capturing our grid and then classifying, which I'll touch here again in a moment.
And then we're also making improvements to our Ovation control system for better process monitoring as well as installation of process monitoring cameras, you know, so that our team is able to closely monitor everything that's going on in our new systems. So some of the design tools that we use for this project. We started with a high level discussion matrix which really took a lot of alternatives and kind of gave everybody somebody something to consider as we were looking to narrow down alternatives to start digging in deeper. And as we narrowed those down. We started looking at nine cost criteria and other methods before we could make a selection of the alternatives that we really wanted. And once we passed that we started something new actually, within the last year as these engineering design abstracts, which really are take everything that you would see in a basis of design report and break it up into kind of bite sized pieces for consideration by our operations and maintenance staff for consideration by our plant engineering staff and other project stakeholders really it it breaks these up into you know, just looking at the equipment that is a part of the system, the configuration of that equipment, what equipment we're selecting, what maintenance is going to be required for the equipment and so on to allow somebody enough time to think just about this piece of the design. Rather than having a look at the entire design altogether. We're also incorporating Reliability centered design and maintenance into this project which actually builds right off of the engineering design abstracts, looking at you know, basically operations and maintenance and what can we do in design to improve the reliability of our equipment are there certain locations we can put equipment or different parts of the equipment that make it more easy to maintain? Are there things that we can change about the design that eliminate certain maintenance? The the less maintenance that we have to do or the less difficult that maintenance is inherently the more reliable our equipment and our process and our systems are? Well, we also have been utilizing the hollow builder platform which is really a 3d visualization tool. And so you can kind of see part of that in the engineering design abstract photo, which would be the top right and then also on the bottom left and so this has been really key to sitting down with operations and maintenance and walking through what the improvements will look like before we actually construct them. So it's allowed, you know, discussion on locations of equipment access, you know, routes how we would perform maintenance, what we would need in terms of lifts and mechanisms to perform those maintenance so that our design is very well informed. And then really, you know for this project, we are reimagining everything. So an example of that is you know this pump station to bark and grid improvements project is intended to inform a future pump station one Barek grid and improvements project and so we're we're trying to understand how this project will shake hands with the future pump station one improvements, so that they're not disparate solutions. And we're not handling grid and screenings in different manners. And we're also trying to figure out how can we leverage our existing assets that may not be fully utilized in this as a part of this project?
Chris and Naveen on when you're doing this kind of imagining the wills we'll call it you know, looking at up to, I guess, improvements in this way. Do you tour other facilities and ask the operators of those facilities? You know, the perhaps have thought of some of these ideas that you're thinking about you get some feedback from some of your peers about what you're what you're imagining. Do. The consultants offer some ideas to you in terms of like ways to as you as you put it, have, you know, fewer possibilities for maintenance and so you don't come up with an idea that turns out to be perhaps maybe more work than you realize? I mean, how do you how do you get these notions that you think will be better than what you have?
Yeah, it's a great question. So So part of it is all the above so our operations and maintenance staff is full of great ideas about things that we can do better to maintain our equipment. You know, process improvements. Our consultants also do bring ideas to the table. Our own engineering staff, you know, Nobby, Dan, Chris Wilson have done a fantastic job of bringing, you know, unique ideas to this project. We also have reached out not only to other wastewater facilities, but other waste management facilities, you know, to talk to them about, you know, what would be easiest for them to take our grant what would be the easiest things for them to do to take our screenings and try to incorporate that feedback. So not just from within our industry, but within, you know, those those other I guess, parts of our process that fit right into our process. So yeah, it's really all of the above trying to talk to them. And, and you know, I know that you know, the project team reached out to waste management specifically on this one to talk about how we handle grid what would be easiest to process it and have brought back several ideas from them on, you know, what's easier for them to take our grid? And yeah, it's all the above.
Yeah. In addition to that, so I think one of the challenges we run into is we are unique facility. Because we are so large, sometimes it is not easy to find our scale type projects. For example, one technology automatically just became impractical because they will not be able to ship the size of equipment, they would have to look at freighters potentially bring it in through water and just not being able to actually get it to our site which is a very common technology use that many treatment plants in the country. So unfortunately, sometimes we have to, we have to be very strategic. But for example, these vortex unit we had a group of our maintenance team, our operations team went down to Monroe. Monroe has some of those vortex units installed, they were able to do some piloting are just some question and answer there. In addition to that, we had our research innovation team. JOHN Norden brought in several utilities that have had done different projects to manage grit and we kind of did some experimenting and questioning and interrogating there to be able to find the right technology. So all the above is just for us because of our scale because of the uniqueness of our operation. There's only a handful of places we can tap into to get a one for one comparison. We're most of the time showing up and then in our heads scaling up to our size, just because of the the sizes that we need.
Thank you, thank you, you know, in this case, in the work that Great Lakes does, it's not like you have competition, where I guess to be kind of, you know, it's not like Kroger's versus Myers. You know, where they may not be very, they may not be very helpful with giving you some one to the other ideas in this case. You know, Monroe is a separate system from ours. We don't compete with them. They don't compete with us, like Cleveland or Pittsburgh or that kind of thing, but I just I'm curious, you know, as a former city manager you know, we there were other managers that I used to consult with about some of the harebrained ideas I would come up with and get some thoughts from them as to practical or they are in some of the solutions are dealing with in terms of municipal issues versus something is as large and huge is what you're dealing with you're in terms of dealing with grid and solids and all but thank you for the information. Go ahead, proceed.
Yeah, thank you. So, this last side on this project, so some of the major proposed equipment is these quarter inch bar screens, replacing our existing three quarter inch bar screens. As opposed to a conveyor system we'll be using a sluice trough, conveyance, system for conveying the screenings. With the washer compactor at the end right before the screenings make their way into a dumpster so they won't, they won't smell and they won't be dewatering themselves in the dumpster on the ground or Tex grit units as Naveed covered you know these are going to remove a much more grip out of our system and send it to our classifiers the classifiers just actually there's a picture here, okay, I can do this right. This is a picture of a classifier which shows the grid stream coming in and then the grid makes its way to the upper end of it and the water and organic particles particles that are getting washed off of it make their way out towards the drain. So basically what's ending up in the dumpster is you know, sand for the most part and being hauled off to landfill. We're also looking at a transfer station so it's a way of handling grit that doesn't necessarily come in through pump station number two, you know also during storm events if we've got heavy grit coming in at pump station one giving us the ability to potentially handle that grit in an easier manner as a part of that handshaking that we're looking at. Spin filters on our HVAC units, which are really a pre filter that protect the pleated filters that are on our HVAC units allowing them to operate, you know more efficiently circulating less particulates and then as I mentioned before, improvements or ablation system so the next project is a W RF structural improvements project. This is a design build project being managed by cashmeran Patel this project was actually just approved by the board last month. And so we are in the current stage of finalizing the contract with the construction contractor and we're anticipating a notice proceed sometime in the beginning of October. The contractor is to closing and this is a $12.6 million project with an anticipated end of the project being in July of 2027. So the need for this project is you know miscellaneous structural repairs and structural maintenance is really needed throughout the plant. Pair periodically perform maintenance on on structure like if you think of the brick on your home, you're not out doing work on your brick every day. But eventually you'll need to do some work on your brick and that's no different than our structures at the plant if we don't take care of those, you know the process won't be able to exist because our facilities will fail. Sorry, somebody's buzzing me. Punch, go review. So we're going to complete an inspection throughout the plant and I've kind of included this aerial map that shows all the various areas of the plant that we're going to be performing inspections of inside and outside. We'll be developing a set of drawings and specifications with repair details and prioritizing these repairs. So that the highest priority repairs are being performed first, and then we'll work our way through the project budget until we get to repairs that are you know lower priority and can be pushed off into future maintenance project. Future structural improvements project rather such as
this. So so just so sorry.
So just some photos of the bridging documents that we're using to build for this project. The photo on the left shows a horizontal crack and one of our slip storage tanks. So again, it's it's not the end of the world at this point. But if we continue to not address it, this crack will get worse and eventually it will create a large issue for us. Similarly, the photo in the middle is a deep ball so it's exposing our reinforcements steel and the concrete which allows the steel to corrode and the more the steel corrodes the more the concrete will start to break off of it, creating larger issues. And likewise, in the photo to the right showing some of our brick facade, you know the brick is breaking. If the brick falls off of the building, it's going to expose Parsh portions of the building that were never intended to be exposed to the elements which will cause other issues, you know, internal leaks in our facilities, and so on. So just some previews because that project is beginning in October and there's been a sister project of that, that has been going on at the CSL facilities for the last several years. Just some improvements of what you can expect to see at the WR F. So the top top two pictures really show, you know a sidewalk that was vaulting, was pulling away from the building and was generally unsafe for our staff to walk on it especially in the winter being replaced. The bottom two photographs show and it's an it's tough to see it but there's two red arrows that show there's concrete balling on our structural beams and our influent chamber at baby Creek facility. That we clean those out and apply patches to them to preserve those structural elements. The top row and going to the bottom from left to right, really shows a joint and the deck hobble Southfield that was failing and then the joint being removed, you know by the construction crew and eventually repaired by the construction crew to you know, to prevent that further water intrusion and continuing to break up that joint. The bottom left hand photo shows you know the underside of the basin deck with some concrete spalling that has been cleaned out and will be patched to protect our structural steel and the basement deck. So the last project we're gonna cover is the Oakwood HVAC improvements project. This is a design bid build project and is managed by Beenox Sharma. This project is about 75 to 80% through construction and we anticipate construction will be completed sometime next year in September. The project designer was Hazen with a $460,000 or so contract and the construction contractor is TCC with a $5.8 million construction contract. So what are the needs for this project? Really, we wanted to restore our supply and exhaust fan operations for our influent well as well as the CSL base and we also wanted to improve our odor control, ventilation and maintenance of our odor control units. So, you know, the scope of the project was to replace our influence, apply fans and relocate them and I'll show you some photographs here shortly on what we did there. Restore effluent exhaust fans and they had failed and they did not have a vibration protection. And so we are replacing them and providing vibration protection so that the fans protect themselves when there's something out of balance they'll turn themselves off so that we can make those adjustments before the fan breaks itself.
We are replacing our sanitary pump room make up air unit and so that's actually this unit up here pushes air into the sanitary pump room so when it's failed, it actually allows air from the wet well which is in this space to come up into the sanitary pump room which leads to corrosion of our bridge crane of all of our equipment and our sanitary pump room. It's caused our gas detection system to fail or to be in constant state of alarm, which leads our staff to leave the big garage door open. And that's happened, you know, in the winter as well. So sometimes we've had pipes freeze in there in the winter as a result of this equipment not working properly. But also we're going to improve air circulation. You know so our odor control units used to take air from the sanitary well pull it up into the sanitary pump room and into the odor control units. And we've actually changed that so that the air flows down right so we're pulling air from the pump room down into the sewer and back up into the odor control units to keep that corrosive air down in the sewer where it belongs and and it protects our equipment and then show you some photos here shortly for how we modified our odor control unit for better maintenance. And while the airflow covered but for better maintenance. So this is a picture of one of our odor control vessels. So the left photo shows the vessel and the roof opening when we started and so the maintenance of this vessel actually requires that you pull the center column out of the vessel. And with the size of the roof opening, we couldn't pull that vessel out to change the carbon media properly to change the screen inside the vessel. And so the photo on the top right shows that roof opening has been enlarged, allowing us to pull that center column out which allows us to perform the maintenance properly on these units. And then the bottom right really just shows a picture from the roof with the larger opening and just a shroud around our odor control vessel.
I like before and after pictures Chris always makes me feel like sometimes when you see all the before pictures and you don't get a chance to see the after picture you think I wonder if that got fixed?
Yeah, yeah, I like them too. And those are my favorite things to put in my presentations. So speaking of more before and after photos, this is a before photo on the left, which shows the bridge crane. It's corroding shows our pump sanitary pump room very dingy on the walls and the roof even had some corrosion on the metal decking on the roof. And the floor to the right just shows you know after we've made all these ventilation improvements we came in there we cleaned up the space recoated our bridge crane cleaned off the corrosion from that as well as our roof decking and then recoated everything so that it's properly coded and will continue to serve us for the foreseeable future. Last screen of photos is just showing the supply fans so the supply fans for this facility were installed inside of this tiny little room. That supply fan diameter was about seven to eight feet in diameter. And what I'm pointing to here is just the man door so anytime we had to perform maintenance on the supply fans, they had to be basically completely taken apart to come in and out of the door. And so this photograph actually shows a little better you know how much space we had around the edges of the supply fan. We had about 1218 inches to perform maintenance and the supply fan in this room because the wet well is just below this board here was constantly exposed to a corrosive environment. And so, you know, over time the fan being exposed to that corrosive environment the difficulty of performing maintenance on it failed on us. So our new location is we took them from here and we brought them all the way up and put them on the roof so there's actually two of them one over here and one right here. And so this photo really shows one on the roof now and we've just built ducting through this room to connect it to the wet well and now that it's on the roof, you know our team is able to get in there we specifically considered maintenance access, make sure that the motor and all the elements that require maintenance were facing the middle of the roof so that it was easier to perform maintenance on them and safely. So with that being said, and I guess the fans are out of the corrosive environment so they should last much longer than our original fans did. With that being said, I'd be more than happy to take questions.
No further questions for me, Chris. Well done and the beat Thank you. And was there anything further that the two of you would like to say before we move on to item D?
I do not have anything further. I have nothing else. Thank you.
Okay, well done. All right, Nikki, you're up.
Good morning director sack. Say very busy day a GL wa we close on our $450 million transaction $225 million for our water system and $225 million for sewer system. And now we're tasked with following up on how Dima started out the meeting and comments from our CEO Sue Coffee how do we make that $225 million for each system? Go as far as it can. And so part of that and I've you've referenced several times instead of others, really saw a historic level of uncertainty, particularly as it's related to supply chain beginning with COVID war in Ukraine and then just general economic conditions. And so we initiated the economic outlook Task Force to help us provide some information intelligence on where we're at with the academy. How did that compare to prior times of high level of uncertainty? And how do we help that inform decisions we're making about our CIP and when I think of our CIP reminds me of a very busy airport. We have some planes in the hangar. We have some planes taxiing to the gate. We have some planes getting ready for takeoff. We have some midair, we have some about to land. And so if you were to ask me when they're all going to lay on, I'd have a long list of answers. Dima has kind of the in the engineers have kind of the same task we can see it the way projects at very different points and estimating levels points of completion. planning phase through to their execution. So So internally, we work with the economic outlook Task Force. We have some thoughts on where we're going, but right now we're not at a point where we can say to Dima and the engineering team, increased paths by X percent, because all of these projects are at different phases. And we're faced at a point to really come up with a strategy on how do we manage the CIP as a portfolio of projects with priorities and how does that impact other key touchpoint decisions related to public health, safety and welfare in our prioritization? So the team just presented yesterday to demonize a draft reports. We're reviewing it with the executive leadership team today. And from that, what we'll be reporting out to the to this committee and to the board over the next 30 to 60 days, is how the economic outlook Task Force information impacts our decisions. And we've seen double digit increases in Medicare cost categories over the past two years. We do anticipate that that pace won't continue. But probably for the foreseeable next year or so. We're still gonna see some cost categories with double digit increases. But again, given that our CIP has projects in multiple phases, and it's a lot work to revisit all the cost categories, whether it's a heavy steel project, engineering services, the labor market,
the labor market, and Michigan and Metro Detroit is different than it has been nationally. But a lot of our poll for certain specialty consulting and engineering services is from across the United States. So so we're we're moving towards a strategy so that we are making the best informed decisions that we can and an era where there's still uncertainty in the markets. So that's really where we're at. I am, you know, I say, Chief Financial Officer stands for CFO stands for Chief Financial Officer and Chief Operating Officer. I worry about this every day all day, in terms of where we're going. And have we provided the other executive leaders and the teams and the board with the most up to date. set of scenarios and thoughts and strategies. And I really feel that we've assembled a team who is giving us the assurance to the extent that anybody possibly can have some
form of decisions that we need to make over the next few years.
So so that's where we're at. A good progress has been made. I think we have some really good information, the engagement of our peer utilities across the country, our peer,
public and private related organizations within the state. Have all appreciated Jill wa taking the lead in this efforts. Today, it's something that is on everybody's mind, and everybody has a role and delivery in our CIP. So that's where we're at Dima, I'm not sure if there's anything else that you wanted to add from our debrief with the team yesterday. Thank you, Nikki covered it all. Okay, thank you. Okay, well, be anxious to hear more about this as the days go and weeks. Come ahead. I can, I can imagine. There are certain segments that are more vulnerable, I guess. than others. And then you've got to be tracing that and tracking that carefully. So you don't underestimate or overestimate and that kind of thing. So I have nothing further regarding this. Suzanne, is there anything you want to say? about economics or we shall we move on to another topic? I think you can move on. I I, you know, we're we're all working very closely together, as Dima had indicated with you know, we function in a collaborative way. So, I think Nikki did a good job of telling you kind of where we are without without being able to be specific. Yeah, then. I think you're exactly right. More to come. More to come. Okay. All right. Well, moving on item number nine. Suzanne or bill. Are there any reports they're not listed? So? No, no, no reports. Okay, none. So, I am sad. Look ahead. Our next meeting Tuesday, October 18 at 10am So, hopefully Gary will be able to be there. So I'm not just talking to myself and Kitty City. Any information to share? Yeah, no reports or information. Okay, no, no other matters. So, we can stand adjourned at I have 11:25am. Is that? Is that sound like the right number on Bill? 11:29am. Mr. Chairman, okay. 11:29am already. Thank you, sir. Okay, so we're adjourned. Thank you very much. And so get back to work. No, you maybe next week. See you next week. I know I recording stopped