8/8/2019 IROC Action Items

1/8

THE CITY OFSANDrsooMEMORANDUM

DATE: November 9, 2010TO: Independent Rates Oversight Committee (IROC)FROM: Roger Bailey, Director of Public UtilitiesSUBJECT: FY2008 IROC Annual Report: Public Utilities Department Follow-Up Action Plan

On October 7, 2009, Public Utilities issued a response to the FY2008 IROC Annual Report. Ourresponse identified twenty (20) action items to address the 12 Key Recommendations cited inyour report. Now that a full year has transpired, we are providing you with an update of how weare progressing on the 20 action items.As promised at that time, the Department Management Team and other key staff membersevaluated all ofIROC's recommendations, and began implementation of the action items.The attached "Public Utilities Department Action Plan Follow-Up Summary" lists twenty action. and a status update for each action item.

ij w'..Jl~! IRoger S. BaileyAttachment: Public Utilities Department Action Plan Follow-Up Summary

8/8/2019 IROC Action Items

2/8

AttachmentPublic Utilities Department

Action Plan Follow-Up Summaryof the

Independent Rates Oversight CommitteeFY2008 Annual Report

# Public Utilities Action Plan Items as stated in the Status Update as of November 2010Management Response to the FY200~1IROCAnnual Report issued on October 7, 20091 The IPR Demonstration Project will provide the The City contracted with the National Water Researchtechnical, water quality, environmental, public Institute to convene an Independent Advisory Panel

outreach and stakeholder involvement, and regulatory (IAP). Three lAP workshops have been conducted to-and funding requirements necessary to implement a date: 1) May 2009 - presented the project concept andfull-scale project. The tasks in the Demonstration objectives; 2) March 2010 - presented calibrationProject include: results for the three-dimensional model of the San Design, construct and operate a Vicente Reservoir; and 3) September 2010 - presenteddemonstration-scale advanced water results of the first three reservoir model runs. Intreatment (AWT) plant at the North City addition to the lAP members, staff from the CaliforniaWater Reclamation Plant. The proposed size Department of Public Health, RegionalWater Qualityof the plant will be one million gallons per Control Board, and County of San Diego Departmentday (MGD). of Environmental Health participated in the Conduct a limnology study of San Vicente September workshop.Reservoir to establish residence time, waterquality parameters and conditions of AWT The lAP provided input on topics covered at thewater in the reservoir. above workshops. In September 2009, the lAP issued Define the state's regulatory requirements a report that discussed the panel's recommendationsfor a full scale (16 MGD) project. with respect to water quality considerations, Perform a pipeline alignment study to regulatory issues, the Advanced Water Purificationtransport advanced treated water from (AWP) Facility, the reservoir limnology study, andNCWRP to San Vicente Reservoir. public outreach. In June 2010, a memorandum was Conduct a public outreach and education issued that focused on the panel's assessment of theprogram. reservoir model calibration results includingrecommendations for model scenarios depicting future

reservoir operations with AWP augmentation. Inputregarding the first three reservoir model runs was. provided directly at the workshop.The City issued a notice to proceed for the ProjectManagementJPublic Outreach consultant contract onFebruary 25, 2010. The contract scope also includespreparing a conveyance pipeline alignment study.Current activities related to this contract include: Developing strategies for engaging regulators inthe project. In April 2010 the City met withregulators, which include the CaliforniaDepartment of Public Health and the Regional

8/8/2019 IROC Action Items

3/8

Water Quality Control Board, and City staffprovided an overview of the Demonstration Projectand an update of current work. On September 2,2010, the regulators attended the LimnologyWorking Group Meeting mentioned above .

Evaluating the City's industrial waste program andidentify enhancements that would be beneficial if afull-scale project is implemented.

The public outreach and communication plan wasfinalized in May 20ID. The plan outlines goals,strategies, tactics, and metrics related tocommunicating the project's key messages.Eighty-five stakeholder interviews have beenconducted with key community leaders; thisactivity will continue through October 2010.Information gathered in the interviews helps refinefuture activities and messaging. Since theSpeakers Bureau launched in July 2010,37presentations have been given to date to thecommunity planning groups, individuals andorganizations recommended by City Councildistricts. In addition, the new project website was .launched iri August 2010. Outreach efforts willcontinue through the end of the DemonstrationProject.

On April 13, 2010, the Electro. Dialysis Reversal Unit6/AWP Facility concrete pad and canopy wasapproved by City Council. On May 20, 2010, a noticeto proceed was issued to Ahrens Corporation toproceed with the work.On July 27, 2010, City Council approved the AdvanceWater Purification Facility to Camp Dresser McKeeto perform the work. The City issued a notice toproceed to the consultant on September 1, 2010.Current activities related to this contract include: Review ofthe Project Management Plan and theTesting and Monitoring Plan. Design of the AWP Facility. Equipment Procurement

2 In January of2009, the City entered into an agreement On August 4, 2009 the City of San Diego held thewith San Diego Coastkeeper and San Diego Chapter of Recycled Water Study (RWS) kickoff meeting. TheSurfrider to conduct a Recycled Water Study (Study) to purpose of this study is to identify opportunities toidentify opportunities to increase recycling wastewater increase the use of recycled water as both a potablefor potable and non-potable uses. The Study will and non-potable water supply, estimate the potentialreview and evaluate the feasibility of expanding costs of implementing such opportunities, andcapacity of the existing North City and South Bay evaluate the extent to which these opportunities couldWater Reclamation Plants, along with possible new divert wastewater flows to the Point Lornafacilities to satisfy customer demands and water quality Wastewater Treatment Plant (PLWTP). The Study isrequirements. The Study will also review areas where

8/8/2019 IROC Action Items

4/8

IPR water may be used through groundwater recharge on schedule to be completed in June 201 Land reservoir augmentation. A total often (10) technical memoranda and a finalIn July 2009, the City interviewed and selected aconsulting firm to provide Project Management and project report will be prepared. To date, TechnicalPublic Outreach (pM &PO) support to the IPR Memoranda (TMs) #1 & #2 have been completed.Demonstration project. These evaluated potential retail and wholesale non-potable recycled water demands. Subsequent TMs

will address a variety of topics including wastewaterflow and load characterization, secondary treatment atPLWTP, concepts for maximizing recycling, financialanalyses, and program implementation. Relative toconcepts for maximizing recycling, the Study willevaluate the potential through non-potable reuse,indirect potable reuse via reservoir augmentation,indirect potable reuse via groundwater recharge, directpotable reuse, and livestream discharge.The project team has been meeting with projectstakeholders on a bi-monthly basis to provide statusupdates as well as solicit stakeholder input.Stakeholders include San Diego Coast Keeper; SurfRider Foundation (San Diego Chapter), MetropolitanJoint Powers Technical Advisory Committee, andIROC. A representative from the San Diego CountyWater Authority also typically attends these meetings.

3 Pursuant to the IPR demo project, the City is in the See response to #1 above.process of scope and fee negotiations with the selectedPM & PO firm. It is anticipated that the contract willbe awarded in early 2010 .

4 .The Recycled Water Study (Study) will examine See response to #2 above.potential costs of implementing such opportunities, andto what extent such recycling and reclamation couldfeasibly off-load wastewater flows to the Point LornaWastewater Treatment Plant (pLWTP). Additionalgoals include the identification and evaluation ofrecycling alternatives that would result in: upgradingthe existing PLWTP to secondary treatment at thelowest total cost, maximizing recycling of the City'swastewater to the fullest extent practicable, andevaluating opportunities to increase recycled waterreuse at satellite facilities. This study is anticipated tobe completed in February 201l.

5 A recycled water rate study is currently underway. At The recycled water rate study has developed severalthe appropriate time, City staff will bring forward the scenarios that are currently being presented to therate study and recommendations for IROC's Mayor's Office for input and recommendations. Uponconsideration. receiving input from the Mayor's Office, staffwilldevelop a presentation summarizing the staff

recommendation and present to IROC forconsideration.6 The Department is currently pursuing the fmal The final approval of the Pt. Lorna modified permitapproval of the renewal of the PLWTP variance ... (variance) took considerably longer than anticipated .'Since future waivers may receive unfavorable actions The final permit was signed on June 16, 2010, andregardless of the supporting science, the Department, in will be in effect from August 1, 2010 through July 31,

8/8/2019 IROC Action Items

5/8

its FY2011 Tactical Business Plan, will include a 2015. The development of future permit strategy hasstrategy for assessing the technical, regulatory and been included in the FY 2011 Strategic Plan.political framework that may govem future renewals.7 In April 2009, the Collections Division assigned teams The study team explored ways to reduce the mainto undertake efficiency studies in the following areas: cleaning back log through frequency changes. By

sewer main cleaning frequencies, use of closed circuit reducing the frequency on sewer lines that may havetelevision (CCTV) as a quality assurance tool for main been cleaned too often, the annual main cleaningcleaning, non right-of-way sewer main cleaning, and workload was reduced by approximately 200 miles.computerized maintenance management system WWCD currently performs CCTV on approximately(CMMS) support. The sewer main cleaning frequency 10 miles of sewer lines within one week of the linesstudy will also include the evaluation of the use of being cleaned. Findings and feedback regarding theCCTV as a tool to determine the frequency of cleaning. quality of the cleaning effort are provided to the Main

Cleaning Section. Since Sept, 2009 WWCD hasworked closely with EPM to gain access to cleansewer lines that were previously not cleaned due tolack of access. The backlog of inaccessible lines isnow nearly zero. In Sept, 2009 WWCD completed aCMMS efficiency study. The recommendation o f thestudy team was to continue the use ofPSTOOLS untila new Citywide CMMS is implemented.WWCD doesnot currently have an automated way to incorporateCCTV findings into PSTOOLS, but the CCTVdocumentation is consistently used to adjust maincleaning frequencies.

8 As part of the Final Consent Decree, the City will CCTV service provider televised 42.86 miles of sewercontinue to televise at least 40 miles of pipeline a year mains in CY 2008 and 57.3 miles in CY 2009.and all pipes 40 years or older.

9 In FY 2009, the City reviewed 18 pump stations and The FY 2009 assessment findings indicated 17made recommendations for safety repairs and stations required minor repairs or modifications, andscheduled repairs. In FY 2010 the goal is to assess 24 one station, No. 13 was recommended for majorpump stations. rehabilitation/modification as a separate CIP. Apreliminary Scope of work and cost estimate has beenprepared.For FY 2010, 24 stations were assessed and thefindings presented in the FY2010 ConditionAssessment of Municipal Pump Stations-Final Reportdated June 21, 2010. Six stations (5,10,45,72,85,and 86) were recommended for major improvementsor upgrades and six additional stations (7,12,33,59,78, 85, and 87) were recommended for minorimprovements.For FY20l1, the goal is to assess the remaining 14Municipal pump stations not included in the FY2009and FY2010 assessments and not included in anongoing upgrade (CIP) program. To date eightstations have been inspected and tested.

10 The Wastewater Labor Management Committee The Department has decided against a media(LMC) has recommended that savings generated from campaign at this time. The proposed campaign wouldthe accumulated Employee Efficiency Incentive include service announcements to educate the publicReserve be used to fund a public outreach campaign concerning materials and objects appropriate for thetargeting items that should not be flushed down the sewer system and those not appropriate. Varioussewer system. In July 2009, a LMC subcommittee agencies, including other Departments within the Citybegan working with representatives of the Participation of San Diego, are already engaged in campaigns to

8/8/2019 IROC Action Items

6/8

Agencies Metro Technical Advisory Committee to minimize disposal of pharmaceuticals in the sewer.discuss suggested options, including bill inserts, direct Some Metro JPA Participating Agencies havemailers and public service announcements. The IROC expressed interest in a campaign to limit flushingwill be briefed as work progresses and a campaign is larger objects, such as diapers, because these objectsprepared. can cause blockages and spills. The City of San

Diego is not experiencing similar problems, asevidenced by drastic reductions in the number ofsanitary sewer overflows (SSO). Therefore, theDepartment does not believe that a media campaignwould be a good investment.11 Water Operations FYIO goal is to perform 16,400 PM During FYIO Water Operations performed 17,202 PMactivities on valves, fire hydrants, blow-offs, and air activities on valves, fire hydrants, blow-offs and airvalves. valves exceeding the established goal.12 In order to reduce the number of water main breaks, we A training course was developed and implemented inare reviewing our current operational and maintenance the department annual spring training program. The

practices to determine if any improvements can be main purpose of the course was to improve shutdownmade to reduce the potential impact to the system. In operation offield staff and reduce main breaks causedaddition, we are identifying training requirements for by operations. Also, pressure regulation stations arestaff to ensure proper operational and maintenance now maintained once every two years to ensurepractices are being followed. Lastly, each main break adequate pressures throughout the distribution system.is investigated to try and determine the cause, and the Operations Engineers have evaluated and madefindings are used to identify the necessary system recommendations to further reduce main breaksimprovements to prevent future main breaks. caused by operations.

13 As part of the consolidation, the Water Operations The Department has completed an 9 of the efficiencyDivision has undertaken nine efficiency studies in the studies and has implemented (or are stillfollowing areas: 1) Water Treatment Plant implementing) the recommendations of7 of theOptimization; 2) Revitalize WST Study; 3) Crew Size studies: (1) Water Treatment Plants; (2) Revitalizefor Construction, Valve and other Crew Types; 4) WST Study; (3) Crew Size for Construction, ValveConsolidate Electrical and Instrumentation Technicians and other Crew types; (4) Organizational Location ofwithin the Department; 5) Cooperative Yard Support; the Meter Shop; (5) Corrosion Control; (6)6) Central Stores Open Purchase Orders; 7) Department Emergency Response; and (7) CentralOrganizational Location of the Meter Shop; 8) Stores Open Purchase Orders. The remaining 2Corrosion Control; and 9) Department Emergency studies: (l) Consolidate Electrical and InstrumentationResponse. Each of the studies is focused in areas Technicians within the Department; and (2)which were identified as potential areas of Cooperative Yard Support; will be implemented inimprovement/efficiencies between the Water and combination with efficiency studies in the WastewaterWastewater Operations Branches of the Department. Branch.The studies began in June 2009 and we anticipatecompleting the studies in the fall of2009.

14 In 2005 and 2006 condition assessment reports were The Department has completed DRAFT conditioncompleted for the Metro Biosolids Center and the assessment reports for PS 1 and PS 2. At presentNorth City Water Reclamation Plant, respectively. time, EPM is in the process of preparing the pre-finalCondition assessment reports for the remaining condition assessment report for PS 1. The pre-finaltreatment plants and the large Metro Pump Stations are report is anticipated to be issued in November 2010.scheduled as follows: Subsequently, EPM will prepare the pre-finalFY 2010 - PS 2, PS 1 condition assessment report PS 2.

15 From an engineering perspective, recently designed The Sewer Design Guide is presently under revisionpipelines and facilities have utilized reasonable factors and expected to be complete in FY 2011. Appropriateof safety, and redundant pipelines and equipment to items or sections covering seismic considerations willensure reliability. For certain critical facilities (such be included in Chapter 2- Gravity Sewer Systemas the FIRP pipeline) specific features have been Design, Chapter 4-Sewer Main Bridge Crossingdesigned and incorporated to monitor performance, Design, and Chapter 7-Sewer Pump Station Design

8/8/2019 IROC Action Items

7/8

alert staff to potential problems, and if necessary to Criteria, pump stations and force mains.shutdown the system to minimize potential impacts.However, there are some major pipeline facilities In determining priority for selecting pipelines to studywhere it is not cost effective to develop dual piping or under the condition assessment program, certain riskincorporate other special features. In these cases, we related factors were included, including age, materialsagree with IROC that it would be prudent to prepare a of construction, past inspection and service history,risk analysis for critical facilities. In updating the criticality and location (environmentally sensitive orSewer Design Guide, a section on pipeline seismic high failure impact).considerations and design guidance will be added. InFY2010 we will review the alternatives for conducting Risk of failure analysis one of the factors to bean operational risk assessment, either as part of the considered in the individual pipeline task scopes ofplanned condition assessment program, as described work to be prepared under the Pipeline Conditionpreviously under items 4 and 5, or as a separate study. Assessment Program.

16 As a result of the vulnerability assessment, the Water The Department continues to move forward withDepartment has initiated various projects to address the security system improvements and continues toidentified vulnerabilities. Security systems have been expand our relationships with state and federaland are being installed at various facilities. agencies. A total of$14;800,000 has been authorized

by the City Council for the implementation of securitysystems at various Water facilities. As of October 21,2010, $13,599-,233 has been spent.17 The Public Utilities Department is in the process of The rate models for both Water and Wastewater havedeveloping new Water and Wastewater rate models. been developed and are currently in use by theThese models will be used in the analysis of various respective rate analysts. The Water Rate Model hastypes of rate structures that could be adopted to further the functionality necessary to conduct analysis of

incentivize water conservation. Some of the models multiple tiered structures for all customer classes.that will be evaluated will include additional rate tiersin the Single Family Residence class, as well asadditional tier structures in our other customer classes.

18 It is prudent and advisable to include information The Water Facilities Master Plan (WFMP) Finalrelated to the capital program master plan that is Report anticipated to be completed bycurrently being developed and is scheduled to be OctoberfN ovember 2010. The report will include thecompleted by June of2010. The estimated completion prioritization process, priority projects and forecastedschedule may be affected by the participation levels of 20-year CIP expenditures. The Public Utilitiesstakeholders. Stakeholders would include the Department has presented the priority projects,Independent Rate Oversight Committee (IROC), forecasted 20-year CIP expenditure, and the projectNR&C, Chamber of Commerce, San Diego County scoring and ranking method to IROC at their meetingTaxpayers Association, and the ratepayers stakeholder of May 1 7 t b . and the IROC E&T Subcommittee at Junegroup. 14thmeeting. Staff anticipates presenting the finalreport to IROC in their November 2010 meeting andNR&C in December 2010.

19 After collaborating with a consultant, the Wastewater The Department completed, with participation from aDepartment received the "Biosolids Technology representative of the Participating Agencies, aEvaluation for MBC" on June 30, 2009. The Business Case Evaluation of the alternatives. Withevaluation ranked several existing technologies based the exception of the alternative to maintain existingon criteria such as air emissions, compatibility with the practice, the alternatives would result in an upgrade ofexisting plant, marketability of the end product, and the lvfBCprocess to produce Class A biosolids rathersustainability. The alternatives recommended for than Class B biosolids. In the short term (5-10 years),further study include Belt Drying, Drum Drying, the study recommended that the Department continueThermal oxidation I incineration, and Pyrolysis I Slurry its current practice of disposing of Class B biosolidsCarbo During FY201 0, the Department will finalize its as alternate daily landfill cover and non-foodprocess selection with a Business Case Evaluation and agricultural supplement. The current practice isdevelop a project plan/schedule. fiscally responsible (NPV much lower than a major

8/8/2019 IROC Action Items

8/8

CIP expansion ofMBC) and the best means ofachieving Class A biosolids is not clear at present(lacking a clear regulatory requirement for Class A).In the long term (beyond 10 years), there isexpectation that Class A will be a regulatoryrequirement and/or Class B disposal sites will nolonger be available. At present, drum drying appearsto the most feasible alternative due to the high riskcost associated with regulatory issues surroundingincineration. Since the report was completed, anothertechnology (belt drying via electric field rather thanpressing or heating) has become commercial viable.This alternative and the ones already studied willprovide choices when/if Class A becomes a regulatoryor financial necessity.

20 InFY 2010, the Public Utilities Department's Energy The Public Utilities Department's Energy SectionSection will lead an effort to create a Department-wide completed the Public Utilities Department Energy andEnergy Management Plan and expand it to include Climate Protection Plan in June 2010 with significantwater and climate protection issues as California's input and participation from the Department'sGlobal Warming Solutions Act (AB32) and related divisions and personnel that are affected by the Plan.laws and regulations are implemented. This Plan was presented to the IROC E&TSubcommittee on October 11,2010.IROC - Action FollowUp Summary - Attacbment 1 10-29-10