INTEGRATED RESOURCE PLAN

Proposal Presentation

June 15, 2011

Outcome of the IRP

• Transparent evaluation process• demonstrate the baseline considerations for each resource• need to follow how the weighting of criteria was applied• justification for the integrated preferred solution

• Clear documentation of the integrated preferred solution• capital program tables• project tracking sheets• Revenue requirements

• User-friendly tools• document should be easily referenced moving forward• support more detailed follow on analysis• hands on tool (spreadsheets) to perform sensitivity analyses as

required

Foundation Document

IRP Document Structure

1. Executive Summary

• Outline process and preferred solution

2. Background, Planning Context and Policy/Guidelines Document foundation of decision making

3. Water Resource Document independent scenarios and evaluation Provide key inputs to integrated evaluation

4. Wastewater Resource

5. Stormwater Resource

6. Integrated Resource Scenarios Document integrated evaluation process Reference hydraulic and financial modeling

7. Preferred Solution Overall description of integrated strategy Capital program tables and mapping Reference to tracking sheets

8. Separate Technical Appendices

9. Separate Consultation Appendix

10. DVD output of the IRP document and financial modeling

The CBCL/AECOM “Team” impact• Proven Master Planning Experience

• Completed many integrated plans all with unique project requirements

• Motivated to provide new and unique deliverables – we do not simply repeat previous exercises

• Bring examples/perspectives from world wide Master Plans to the project team for discussion

• Project Management balance• CBCL (Doug)

• system knowledge• critical PM tasks• technical skills

• AECOM (Chris) • visionary and strategic leadership• development and evaluation of alternatives• technical skills

Shared Project Management Responsibility

• Doug provides local, easily accessible coordination for the project

• Doug is Prime Contact for Halifax Water and has ultimate responsibility for traditional PM duties

• Doug and Chris will have regular one on one points of contact

• CBCL/AECOM team will maximize technology for Project Management and Delivery

• Establish SharePoint File Management

• Video Webex and conference call meetings

Project Management Methodology

Project Quality Assurance

Project Manager and Assistant Project Manager review all reports/ memorandums / drawings.

All “Discipline” technical sections/reports to be reviewed by independent assigned QA Personnel – require “sign-off”.

Independent reviewer involved throughout the duration of the project.

Documented ISO Certification Requirement.

Project Management Methodology

Project Quality Assurance

Discipline Lead QA Reviewer

1) Water System D. Brownrigg A. Gates

2) Wastewater Systems S. Murphy R. Rice

3) Stormwater System M. DeLay A. Gates

4) Master Planning Development

C. Hamel R. Rice

5) Financial A. Kier Isenor/Gates

Proposed Study Methodology

12 MONTHS

Start-UpMeeting

Baseline Review

RequirementsForecastsAssumptions

Draft Resource

Plan

Develop Resource

Plans

ModellingAnalysis

Final Resource

Plan

Summary Report

Technical ConferenceTechnical

Memo # 2 Technical

ConferenceTechnical Memo # 3

Technical ConferenceTechnical Memo # 4

Technical ConferenceTechnical Memo # 5

3PresentationsHalifax Water

Proposed Study Methodology – Deliverables

12 MONTHS

Start-UpMeeting

Baseline Review

RequirementsForecastsAssumptions

Draft Resource

Plan

Develop Resource

Plans

ModellingAnalysis

Final Resource

Plan

Baseline Summary

Report

PLANS:Existing Services

and Service Boundaries

PreliminaryServicing

Plans

Updated ServicingPlans including

Capital/Financing Draft and Final Report including:• Working Papers Report• Implementation Program Report• Servicing Plans

•Document:–Assumptions–Criteria–Considerations

Proposed Study Methodology

Proposed Study Methodology

• Key Discussion and Consensus Items• Address at the outset of the project

• Demonstrate preliminary sensitivity analysis – Quantrix will support further sensitivity analysis

• Consensus on the weighting of criteria moving forward into the resource alternatives• Level of Service• Per capita consumption – interrelationship with water projections and dry weather/peak

dry weather wastewater flows• Integrate design storm decision making from WWFP• Existing systems LOS vs. future systems• DSM, SSM• Water conservation and efficiency – lower water demand projections, defer capital

spending, but lower revenues

• Leak detection, I/I reduction – extend life of existing systems, integrate recapitalization program, time period impact for implementation

• Source controls – policy/bylaw enforcement, development willingness• Integration• Independent review of resource scenarios

• Determination of interrelationships – sensitivity of LOS in wastewater vs. stormwater

Recapitalization (Renewal) of Existing Assets• Document dependence of growth/compliance related upgrades on

non-development program• Expect potential for new Recapitalization (Renewal) elements will

be introduced in the IRP program• Can existing infrastructure be upgraded to support the IRP program• Not just presenting new infrastructure

• Recapitalization will need to have unique criteria• Implementation feasibility• Unique cost estimating• Integration with built area requirements (other utilities and

infrastructure)• We understand that the IRP project scope does not include

development of the recapitalization program. Options included in our scope:• Incorporate currently available programs• Utilize yearly allowances

Quantrix Software

• The AECOM Economics Group has been using Quantrix software for almost 10 years now

• Spreadsheet based tool for financial modeling as well as non-financial alternative analysis

• Quantrix offers a number of advantages for model building

• speed of build

• flexibility

• logic framework

• memory requirements

• error checking

Quantrix Software

Cash Flow Tables

FormulasModel Structure

Toggle Switches

Quantrix Software

Project Hours

• The CBCL/AECOM team is best positioned to provide the most efficient delivery of this project

• Strong system knowledge – lower time requirement for background information review

• Active utilization of the hydraulic models – no ramp up needed, quick ability to create and run scenarios

• Currently working on the Wastewater Functional Plan – efficient integration of the WWFP inputs, minimize coordination requirements

• Provided a methodology based on Terms of Reference Scope of Work – “high level analysis and set up the requirements for future enhancements including more detailed data requirements”

• Average 200-250 person-hours a month

Project Hours – Level of Effort

1. Project Management 310 hours

2. Stakeholder Consultation 200 hours

3. Baseline Review 198 hours

4. Requirements, Forecasts, Assumptions 430 hours

5. Develop Resource Plans 466 hours

6. Modeling and Analysis 616 hours

7. Prepare IRP 292 hours

Potential Risks to Budget, Schedule and Hours

• Data/information input from the client

• Recapitalization (renewal) program

• Stormwater program and data

• Level of effort for coordination with UARB consultants and interveners

• Focused number of resource scenarios

• Mitigation of Risks

• Regular contact and project tracking

• In-depth discussion and consensus at outset of project

• CBCL/AECOM bring depth of resources and direct management of resources – we can mobilize additional staff as required

Current Project Team Commitments

• Current Priority Project – Wastewater Functional Plan for Halifax Water

• This provides opportunity for efficiency

• CBCL/AECOM team will remain focused

• Provided additional resources and not simply same team from WWFP

• AECOM does have ongoing Master Plans across Ontario

• Other team members and other project management

• 2 large Master Plans will be completed this summer

• CBCL has four other significant HW projects underway

• Timing will not impact IRP work

• Leadership of IRP team has ability to access and direct additional resources

Thank You

Additional Q&A