2017 Operations & Maintenance and Capital Budgets

Transcription

1 2017 Operations & Maintenance and Capital Budgets Milwaukee Metropolitan Sewerage District Milwaukee, Wisconsin

2 Milwaukee Metropolitan Sewerage District 2017 Budget Commissioners John R. Hermes Chair Kris Martinsek Vice Chair Jim Bohl Kathy Ehley Ben Gramling Nikiya Harris Dodd Carl Krueger Eugene Manzanet José G. Pérez John Swan III Michael A. West Executive Director Kevin L. Shafer, P.E. Susan Anthony Legal Services Mark T. Kaminski, CPA Finance Karen Sands Planning, Research and Sustainability Division Directors Michael J. Martin, P.E. Technical Services Jeff Spence Community Outreach and Business Engagement Sharon Mertens Water Quality Protection Managing and Contributing Staff Mark T. Kaminski, Director of Finance/Treasurer Mickie Pearsall, Deputy Director of Finance Don Nehmer, Controller Theresa Zwieg, Management & Budget Analyst Christine Durkin, Management & Budget Analyst Rick Niederstadt, Capital Program Support Manager

3 Recent District Awards and Honors 2010 NACWA Public Information and Education Award 2010 Wisconsin APA Award - Planning Category, Kinnickinnic River Corridor Neighborhood Plan Distinguished Public-Private Partnership Service Award from the National Council for Public Private Partnerships GFOA Certificate of Achievement for Excellence in Financial Reporting GFOA Distinguished Budget Presentation Award 2011 Daily Reporter Newsmakers of the Year Award-2011 Green Innovator of the Year Earn and Learn Award GFOA Certificate of Achievement for Excellence in Financial Reporting GFOA Distinguished Budget Presentation Award 2012 ACEC Awards for Milwaukee County Grounds and 27th Street ISS (Deep Tunnel) Extension Projects NACWA Peak Performance Award GFOA Certificate of Achievement for Excellence in Financial Reporting GFOA Distinguished Budget Presentation Award NACWA Public Information and Education Award Honor from the Housing Authority of the City of Milwaukee 2012 United States Water Prize US Water Alliance Community Partner Award 2013 Business Council Strategic Partner of the Year Award GFOA Certificate of Achievement for Excellence in Financial Reporting GFOA Distinguished Budget Presentation Award APWA Environment Project of the Year Award NACWA Peak Performance Award 2014 GFOA Certificate of Achievement for Excellence in Financial Reporting GFOA Distinguished Budget Presentation Award American Public Works Association 2014 Project of the Year Award 2014 Public/Private Partnership Award 2014 Governmental Partner of the Year Award NACWA Peak Performance Award 2015 GFOA Certificate of Achievement for Excellence in Financial Reporting GFOA Distinguished Budget Presentation Award NACWA Water Resources Utility of the Future Award 2015 ACEC Engineering Excellence Award NACWA Peak Performance Award 2016 GFOA Certificate of Achievement for Excellence in Financial Reporting GFOA Distinguished Budget Presentation Award NACWA Water Resources Utility of the Future Award Gathering Waters Policymaker of the Year Award NACWA Peak Performance Award

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6 Milwaukee Metropolitan Sewerage District 2017 Operations & Maintenance and Capital Budgets Table of Contents Budget Message from the Executive Director... i Combined Summary for Operations & Maintenance and Capital Budgets... 1 Background, Statistical, and Supplemental Information... 1 The District s Financial Performance... 8 Financial Planning... 9 Budget Review and Adoption Calendar...10 District Fund Structure and Comparison of Budgets...11 Combined Summary of Expenses and Revenues...13 Future Outlook...17 Strategic Plan...19 Operations & Maintenance Budget Summary...27 Overview of the 2017 Operations & Maintenance Budget...29 District-wide Organization Chart...31 Staffing Summary...32 Revenues and Expenditures...34 Operations & Maintenance Long-Range Forecast...36 Sources of Funds...37 Divisions Funding Summary...37 User Charge Billings...38 Milorganite Sales...39 Other Income...40 Household Hazardous Waste Collection Program...40 Industrial Waste Pretreatment Program...41 Surplus Returned...42 Interest Income...42 Equipment Replacement Fund...43 User Charge Stabilization Fund...44 Commission...45 Office of the Executive Director...49 Legal Services...53 Finance...57 Technical Services...61 Planning, Research, and Sustainability...65 Water Quality Protection...73 Community Outreach and Business Engagement...77 Other Expenditures...83 Fringe Benefits...83 Charges to Capital...85 Unallocated Reserve...85 Capital Budget Capital Budget Summary...87 Capital Budget Overview Capital Budget Summary of Revenues and Expenditures...92

7 Milwaukee Metropolitan Sewerage District 2017 Operations & Maintenance and Capital Budgets Table of Contents Long-range Financing Plan...93 Uses of Funds...94 Capital Sources of Funds/Revenues...97 Actual and Projected Tax Levies...98 Non-member Billings...99 District Bonds and Notes Loans Interest and Other Income Federal, State Aid, and Grants Debt Service Sinking Funds Water Reclamation Facilities Water Reclamation Facilities Overview Jones Island Water Reclamation Facility s Primary Treatment Secondary Treatment Advanced Treatment Solids Processing General Projects South Shore Water Reclamation Facility s Primary Treatment Secondary Treatment Advanced Treatment Solids Processing General Projects Interplant Pipeline s Interplant Pipeline Landfill Gas Pipeline s Landfill Gas Pipeline Conveyance Facilities Conveyance Facilities Overview Conveyance Facilities s MIS Subsystem 1 South Shore Main Branch MIS Subsystem 2 Southwest Branch MIS Subsystem 3 Northwest Branch MIS Subsystem 4- Northeast Branch MIS Subsystem 5 North Side High Level Branch MIS Subsystem 6- South Side High Level Branch MIS Subsystem 7 Low Level Branch General Interceptor Sewer System Inline Storage System s Combined Sewer Overflow Structures Central Control Room s Conveyance System Central Control

8 Milwaukee Metropolitan Sewerage District 2017 Operations & Maintenance and Capital Budgets Table of Contents Watercourse and Flood Management Projects Watercourse and Flood Management Overview Watercourse and Flood Management s Milwaukee River Watershed Menomonee River Watershed Kinnickinnic River Watershed Oak Creek Watershed General Watercourse Projects Other Projects Other Projects Overview Other Projects s Facilities Management Facilities Planning Workforce & Business Development Resource Program Information Technology Software Systems Financial Planning Risk Management Program General Other Projects Debt Service Debt Service Overview District General Obligation Bonds Clean Water Fund Program Loans Wisconsin Economic Development Corporation Loan Intergovernmental Loan Appendices Glossary Pay Grade, Salary, and Wage Information Budget Policies Capital Budget Line Item

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10 December 16, 2016 Commissioners: It is with great pleasure that I submit the Milwaukee Metropolitan Sewerage District s 2017 Operations & Maintenance and Capital Budgets. As we go through the budget process each year, it brings to the forefront the core mission of the District, which is to cost-effectively protect the region s water resources. Incorporating a resilience vision that integrates water resource improvements with other community needs will be a key focus moving forward for the District. One facet of creating a resilient future for the region is determining the District s role in storm water management. This past fall, torrential rains pushed the limits of our traditional infrastructure capacity. These traditional system capacity concerns will be more common place as we continue to experience more intense rainfalls, unless resilient approaches are utilized. The District has already started down this resilient path, highlighted during the event by the significant flood management efforts on the Menomonee River that successfully managed the impacts of this storm without structural flooding which would have been commonplace a decade ago. This project highlights the benefit of natural, green infrastructure in providing resiliency to our region and underscores the need to continue evaluating opportunities to create such resilient responses rather than keeping a narrow eye on traditional infrastructure to deliver the District s mission. As a budget, 2017 is an interim year. While it continues to fund the critical needs of asset management on the District s system, it brings to a near close the expiration of the current operations and maintenance contract with Veolia Water-Milwaukee and awaits the recommendations from the 2050 Facilities Plan. In addition, the District has created a project to evaluate further regional resiliency in infrastructure that could impact future years budgets. As a financial plan, the 2017 budget lays forth strategies to financially manage significant changes expected in 2018 by ensuring that both the capital and the O&M budgets are positioned to address significant changes beginning in 2018 while minimizing the financial impact on the District s ratepayers. Moreover, the District continues its internal planning processes and implementation of the District s Strategic Plan. The Plan focuses on action items to better position the District and the region for success by 2018, including focus on expected workforce transitions, planning for future information technology needs and managing the rapid pace of change in technology, developing outreach plans to promote District messaging, as well as developing financial planning scenarios to address future budget challenges. i

11 Throughout the 2017 budget document, you will find discussion of many of the factors that impact the District to provide perspective and context to financial changes implemented in the budget, the District s Strategic Plan, and many budgeted initiatives included in the division or project sections. Highlights of the 2017 Capital Budget The 2017 Capital Budget is $219,233,000. The 2017 tax levy increases 2.5 percent from the 2016 level. This compares to a 4 percent increase projected for 2017 one year ago. The long-range financing plan includes a tax levy increase of 4 percent for each year from 2018 through This is consistent with tax levy projections for that period from one year ago. Highlighted projects include: Capacity: South Shore Capacity Improvements, Mill/Green Bay/Green Tree MIS Relief, Dryer Burner Conversion Asset Management: Milorganite Facilities Improvement Phase III, Conveyance Gate Rehabilitation Phases 3 & 4, Interplant Pipeline Improvements, ISS Crane and Tunnel Fan Rehabilitation Sustainability: Fresh Coast Green Solutions, Green Solutions, Landfill Gas System Metro Landfill, Regional Resiliency Infrastructure Watercourse and Flood Management: 30 th Street Corridor East & West, Kinnickinnic River Flood Management, and the Greenseams program The District s 2017 Capital Budget is based on its cornerstone financial objectives that provide sound long-term financial planning. These include limiting outstanding debt to no more than 2.5% of equalized value, while State Statutes allow up to 5%. In the 2017 long-range financing plan, debt outstanding is at the highest level in 2016 at 1.55%, and this is far below the policy provision of 2.5%. In addition, the District provides that six-year total project expenditures are financed with an average 25% cash financing. The great majority of capital expenditures are rehabilitation, replacement or improvement of existing District facilities and infrastructure, at over $350 million over the six-year plan. This is followed by extensive expenditures planned for watercourse and flood management improvements at just under $150 million. The District also funds various capital programs that provide unique funding mechanisms to partner with municipalities served to lower overall system costs. Finally, as noted earlier, the District s 2050 Facilities Plan and Green Infrastructure plan are underway and will have significant impact on future budgets once the recommendations are finalized. The details of all capital projects can be found within the capital account sections of the capital budget. Highlights of the 2017 Operations & Maintenance Budget The 2017 Operations & Maintenance (O&M) Budget totals $90,394,800. In the O&M Budget, the 2017 user charge billings increase is 2.5 percent, which is on target with the projected 2.5 percent user charges billings increase as forecast in the 2016 budget. While user charge billings are increasing, expenditures are only increasing 0.7%. Although overall expenditures are increasing only 0.7 percent, or $629,603, in the 2017 ii

12 budget compared to 2016, user charge billings increase $1.83 million, or 2.5 percent. The primary reason that user charge billings are increasing greater than expenditures is due to the year over year impact of reserves in the annual budget from 2016 to In the 2016 budget, the District applied $1 million in User Charge Stabilization Fund reserves. In 2017, a contribution of $4.2 million is budgeted to the User Charge Stabilization Fund along with a surplus of $7.8 million from This is a change between the two years of $5.2 million. Making the contribution to the User Charge Stabilization Fund in 2017 will allow the excess surplus from 2015 to be used when a significant expenditure increase is anticipated due to the extension agreement with Veolia Water Milwaukee that was approved by the District s Commission in June 2016 in 2018 and 2019 before leveling out in the years 2020 through In addition to user charge billings, the District has other operating revenue sources. The District s second largest O&M revenue source is from Milorganite net revenue. The Milorganite net revenue in the 2017 O&M Budget is projected to be $8,350,000, a 6.6 percent increase from the 2016 O&M Budget. The District s projected revenue from interest income is $250,000, similar to the 2016 budgeted level, and revenue from Other Income increases $313,000 over the 2016 budgeted level, to $1.1 million. The District also administers two cost recovery programs: the Industrial Waste Pretreatment Program (IWPP) projected at $983,000 and the Household Hazardous Waste Collection Program (HHW) projected at $1.2 million. In addition to the above mentioned revenue sources, the District returns any available surplus from prior fiscal years and has available reserves on an as-needed basis. In 2017, the $7.8 million surplus from the 2015 budget which is applied to the 2017 budget is $3.2 million greater than the 2016 budgeted level. Total expenditures are increasing 0.7 percent, or $629,603, compared to the 2016 Operations & Maintenance Budget. Although overall expenditures do not present a significant increase, there are items of note and change within the divisions. The District is self-funded for most active and retiree health care with exposure to claims limited by some retiree insurance and stop loss coverage. Health care is a significant portion of the O&M budget, and expenditures are budgeted to increase approximately $600,000 based on 2016 experience. Strategies to limit the increase are discussed in the Other Income section on fringe benefits. In addition, information technology continues to be an area of focus in the O&M budget. The District is actively engaged in planning for information technology solutions to be effective and efficient and manage the large amounts of data collected in its systems. Information technology storage and equipment are budgeted with an increase of approximately $400,000. The O&M budget also includes work to clean the InterPlant Sludge Pipeline, a non-routine major effort that has not happened in many years. This one-time work is budgeted at $500,000. Offsetting some of the increases to the O&M budget are decreases in several key areas. The Veolia Water- Milwaukee (VWM) Contract Operations and Utilities fees are budgeted to decrease approximately $1 million compared to the 2016 budget. This is primarily a reflection of annual contract escalation factors that in 2016 were lower than budgeted as well as budgeted 2016 fee adjustments that did not occur. Both of these items create a lower estimate in 2016 that allows the 2017 budget reduction. In addition, the District s 75% share of energy per the VWM contract terms is budgeted to decrease approximately $1 million. The bulk of this is in electricity and natural gas use declines that are related to increased renewable utilization of either landfill gas or digester gas. The detail of these budget items is further discussed throughout the division summaries. iii

13 In closing, while 2017 will be a bridge to the future, aggressive implementation of existing projects and programs is essential. The District s 2017 budgets accomplish this by supporting operational needs, providing needed capital improvements, promoting new initiatives, and continuing strong financial management. The District looks forward to partnering with others in the region as we move forward protecting water quality and building resilient futures together. Respectfully submitted, Kevin L. Shafer, P.E. Executive Director "When we work together as a Region, we succeed as a Region iv

14 Background, Statistical and Supplemental Information The Milwaukee Metropolitan Sewerage District is a state chartered, governmental agency providing wastewater services for 28 municipalities with a population of about 1.1 million people. The District s chief responsibilities are to provide water reclamation services and to maintain and improve watercourses for nearly all of Milwaukee County, Wisconsin, and portions of municipalities in surrounding counties. While Milwaukee is the 31 st largest city in the United States, its regional wastewater system is among the largest, most sophisticated, and well run in the country. The District s 411-square-mile planning area includes all cities and villages (except the City of South Milwaukee) within Milwaukee County and 10 municipalities in the surrounding counties of Ozaukee, Washington, Waukesha, and Racine. About 25 square miles, or six percent of the District s planning area, has combined sewers. Approximately 385 square miles, or 94 percent of the planning area, is separate sewer area. A 3,813-mile system of collector sewers and a 292-mile system of intercepting and main sewers convey wastewater to the two District-owned water reclamation facilities. Additionally, there are six miles of combined sewers, 23 miles of near surface collector systems, as well as, 23 miles of Inline Storage that conveys and stores wastewater for the region. Wastewater treatment within the District s service area is provided at two District-owned water reclamation facilities. One is the Jones Island Water Reclamation Facility, which began operations in The other is the South Shore Water Reclamation Facility, which began operations in On average, the two water reclamation facilities collect and treat more than 200 million gallons of wastewater each day, and, with a daily capacity of 600 million gallons, they return clean, clear water to Lake Michigan. In 1926, Jones Island was the first wastewater facility to recycle biosolids by producing an organic fertilizer known as Milorganite. This commercial fertilizer is sold throughout the United States and Canada for home lawn care as well as for golf courses, country clubs, and other professional grounds. 1

15 Governance The District s governing body is the Milwaukee Metropolitan Sewerage Commission, which is composed of 11 members. Seven commissioners are appointed by the Mayor of the City of Milwaukee, and are subject to confirmation by the Common Council. Four commissioners are appointed by the Intergovernmental Cooperation Council of elected officials of cities and villages in the District other than the City of Milwaukee. The Commission establishes and enforces District policies in compliance with statutory responsibility and directs and controls budgetary, administrative, procedural, operational and informational support for the District. The Commission has two standing committees: the Policy, Finance and Personnel Committee and the Operations Committee. In general, the Policy, Finance and Personnel Committee has jurisdiction over establishment of District policy, financial planning, budget recommendations, award of contracts not related to conveyance, storage and treatment, reporting and audits, personnel matters, labor relations, legal matters and legislation, and public information policies. The Operations Committee has jurisdiction over the operation of the wastewater collection and treatment systems, industrial pretreatment, and contract and bid awards for the District s conveyance, storage and treatment projects. Operations In early 1998, the District approved a ten-year agreement with United Water Services (UWS) for operating the District s two water reclamation facilities, bio-solids management, and field operations. The agreement with UWS saved District ratepayers more than $164 million over the term of the contract. On December 3, 2007, a second ten-year contract was executed with Veolia Water Milwaukee (VWM) effective March 1, In summer 2016, the District executed a ten-year extension of the VWM contract, and the extension agreement will begin in March 2018 through February The VWM contract provides the District with the lowest cost option to maintain, operate, and manage the District s water reclamation facilities, collection, and conveyance system. Funding the Operating Budget District operating expenses are primarily recovered from District customers through a sewer service charge. The sewer service charge is billed to each municipality within the District s service area based on waste strength, flow volume, and the number of connections. The Environmental Protection Agency (EPA) and Wisconsin Department of Natural Resources (DNR) have approved the District s user charge system. The following table shows a listing of the ten largest sewer users within the District s service area in 2015 by revenue collected. Top Ten Sewer Users in 2015 MillerCoors D.R. Diedrich & Co. Patrick Cudahy Milwaukee Water Works Customer Malteurop North America Wisconsin Paperboard Gehl Guernsey Farms Inc. Chris Hansen Maple Milwaukee County DHHS Marquette University $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Revenue Collected (in thousands) Source: 2015 Comprehensive Annual Financial Report 2

16 Wasteloads and the Customer Base The District calculates user charges based on four billing parameters: flow ($/1,000 gallons), biochemical oxygen demand (BOD lbs.), total suspended solids (TSS lbs.), and connections to the sewer system. Since 1995, the District has seen an overall drop in the volume of flow, TSS, and BOD. According to the 2015 Comprehensive Annual Financial Report (CAFR), from 1995 to 2015, the wasteload parameters show a 27 percent decline in flow, a 29 percent decline in BOD, and a 26 percent decline in TSS among all customers : Changes in Volume of Wasteload Parameters 200.M Total Wasteload Volumes 150.M 100.M 50.M.M Billable Flow (1,000 gallons) Biochemical Oxygen Demand (Pounds) Total Suspended Solids (Pounds) Source: 2015 Comprehensive Annual Financial Report The billing parameters for each of the four customer classes: residential, industrial, commercial and non-certified, has continued to decline over the last two decades. However, among all categories of customers, the sharpest decline in wasteloads has been from industrial customers. The proportionate contribution from each of the categories of customers has changed over the last two decades. The contribution of residential and non-certified commercial has increased whereas industrial and certified commercial wasteload contribution has diminished : Percent Change in Type of Wasteload Contribution 50% % of Total Wasteload Volume 40% 30% 20% 10% 0% Residential Non-certified Commercial Certified Industrial Certified Commercial Source: 2015 Comprehensive Annual Financial Report 3

17 Funding the Capital Budget The District finances its capital budget through an ad valorem tax upon the taxable property within the District s boundary. In addition to debt service, the tax levy primarily funds acquisition and improvement of land, property or facilities to enhance sewerage services to the District s service area Top Ten Tax Payers for Milwaukee County Mayfair Property Inc. Bayshore Town Center LLC Northwestern Mutual Life Insurance Co. US Bank Corp. Mandel Group Wal-Mart/Sam's Club BRE Southridge Mall LLC Forest County Potawatomi Community Metropolitan Associates Marcus Corp./Milw. City Center/Pfister $.M $100.M $200.M $300.M $400.M $500.M Source: 2015 Comprehensive Annual Financial Report Equalized Value In general, a tax levy requires a two-thirds vote of all District Commissioners and is uniformly levied based on equalized value. The following chart shows the change in tax levy rate from 2008 to the 2017 proposed budget : Percent Change in Tax Levy Rate 8.0% 6.0% 4.0% 2.0% 0.0% 2.0% 6.0% 3.9% 1.0% 2.5% 2.85% 2.65% 2.5% 2.5% -2.0% -4.0% -6.0% -3.8% Actual Estimate Budget If resolutions authorizing full funding of the local share of the District s Capital Budget are not adopted by the Commission by October 15 of any year, then the Commission may, by simple majority, raise up to $40 million by direct tax levy in addition to any amount required to meet the District s general obligation indebtedness. Wisconsin statutes authorize the District to finance capital improvements through the issuance of debt including general obligation bonds or notes, bond anticipation notes, and revenue anticipation notes. Issuance of bonds and notes requires a vote of two-thirds of all Commissioners. However, a vote of three-fourths of all Commissioners is required for emergency borrowing. 4

18 District Performance In order to ensure the District is meeting its mission to cost-effectively protect the quality of the region s water resources, the District measures and monitors its performance in the percent of wastewater that is captured and treated. The percent capture measures how much wastewater the District captures and treats by year, versus the amount that the District releases from its sewers to the area waterways untreated during heavy rain storms to prevent basement backups. The table to the right shows the District s past performance in capturing and treating wastewater. In 2015, the District captured and treated 98.9% of wastewater before returning it to the waterways. Year Percent captured and treated % % % % % % % % % % 5

19 Other Statistical Information The District annually evaluates local and national economic trends including price indices, property values, unemployment rates, personal income, and industrial growth rates. The economic trends help the District determine what a feasible user charge rate is for its customers and in turn, future revenue and expenditures. Price Indices Consumer Price Index Year (1 st half) US 1.1% 0.1% Milwaukee-Racine 0.4% -0.5% The District uses price indices to establish or benchmark annual contractual rate increases for some multi-year contracts. The Consumer Price Index (CPI), measures the change in the cost of a bundle of goods and services paid by consumers. In 2015, the national CPI increased 0.1 percent Source: United States Department of Labor, Bureau of Labor Statistics over 2014, and in Milwaukee CPI decreased 0.5 percent. National CPI for the first half of 2016 is has increased 1.1 percent over the first half of The Milwaukee - Racine CPI for the first half of 2016 has increased 0.4 percent over the first half of Both the national and the state economy show signs of improvement through improved consumer spending, a recovering housing sector, and healthy exports growth. Employment Cost Index Year US (1 st half) 2.24% % The Employment Cost Index (ECI) is a quarterly measure of the change in the price of labor, defined as compensation per employee hour worked. The index measures changes in the cost of compensation not only for wages and salaries, but also for a list of benefits. Construction Cost Index and Building Cost Index Year Average CCI Average The District also uses construction price indices to plan its capital expenditures. The Engineering News Record (ENR) is a magazine that publishes cost data for 20 major U.S. cities. The Construction Cost Index (CCI) and the Building Cost Index (BCI) measure the change in construction costs. Both indices have a materials and labor component. The CCI can be used where labor costs are in high proportion of total costs, whereas the BCI is useful for structures. Recent reports show that the District s water quality improvements have demonstrated economic output to Milwaukee residents, supporting 1,368 jobs and generating $57.2 million in annual wages and salaries. 1 BCI % 2.41% % 2.07% % 2.01% 1. Economic Impact of the Milwaukee Metropolitan Sewerage District, prepared by Bre J Maybee, Milwaukee Region 7 Regional Economic Development Partnership, December

20 Property Values Property values are one of the region s most critical indicators of economic health. According to The PNC Financial Services Group, Milwaukee s housing market is advancing at a sustainable pace. Existing home prices are growing slightly slower than the national average. Home values remain below the pre-recession levels, but are stabilizing : Change in Equalized Value Total Equalized Value (in millions) $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ % 9% 4% -1% -6% % Change in Equalized Value District Non-Member District Percent Change Non-member Percent Change The District levies taxes on households based on equalized property values to fund its capital projects. Equalized values are calculated annually to ensure statewide fairness and equity in distributions based on property values. In 2017, the total equalized values in the District s service area are estimated to increase approximately 2.1 percent for member communities and increase 2.7 percent for non-member communities. Unemployment Rate Annual Unemployment Rate Year US WI Milwaukee-Waukesha- West Allis MSA 2017 Forecast 4.6% 4.4% % 4.4% 4.9% % 4.4% 5.4% % 5.6% 5.4% Statewide, the non-seasonally adjusted unemployment rate dropped in October 2016 to 4.1 percent from 4.6 percent in October The unemployment rate in the Milwaukee- Waukesha-West Allis metropolitan statistical area remains higher than the state and national rate. Source: For forecast data, The PNC Financial Services Group. For national data: U.S. Bureau of Labor Statistics (Second Quarter 2016). For Wisconsin and Milwaukee-Waukesha-West Allis MSA data: U.S. Bureau of Labor Statistics (November 2016). Personal Income Personal income is the total income of all persons from all sources. The following table shows annual changes in personal income for the United States, Wisconsin, and the Milwaukee Area. Personal Income Percent Change (Annual) Year US WI 2016 Q1 4.4% Milwaukee-Waukesha-West Allis % 4.2% 3.5% % 3.4% 3.4% Source: US Bureau of Economic Analysis. According to the US Bureau of Economic Analysis, earnings increased 1.1 percent in the first quarter of Income trends in Milwaukee have been healthy and median household income is close to the US average. In 2015, Milwaukee-Waukesha-West Allis had a per capita personal income of $50,681. 7

21 The District s Financial Performance Credit rating agencies repeatedly award high ratings to the District. Such highly acclaimed financial performance is the result of developing and adhering to financial policies geared toward ensuring the District s continued financial strength. Each bond rating agency has published guidelines and examples of sound financial practices normally associated with strong credit quality. One example of such a list is the Standard and Poor s Top 10 Management Characteristics. The table below demonstrates the District s achievement of these standards. Top Ten Management Characteristics District Performance 1 An established rainy day/budget stabilization reserve. The District maintains two reserve funds: the User Charge Stabilization Fund and the Equipment Replacement Fund 2 Regular economic and revenue reviews to identify shortfalls early. Cost center managers review monthly variance reports Quarterly variance reviews are prepared and discussed for both the O&M and Capital Budgets Quarterly financial statements are prepared and distributed Prioritized spending plans and established contingency plans for operating budgets. A formalized capital improvement plan in order to assess future infrastructure requirements. Long-term planning for all liabilities of a government, including pension obligations, other post-employment benefits and other contingent obligations would be optimal and allow for assessment of future budgetary risks. Annual budget process prioritizes needs. Annual operating contingency established through the Unallocated Reserve. Annual budget includes a six-year capital improvement program, including a long-range financing plan. Financial statements are presented on the accrual basis of accounting. Expenses are recorded when liabilities are incurred. Since 1993, the District has recorded and disclosed its unfunded obligations for retiree health and life insurance. 6 A debt affordability model in place to evaluate future debt profile. The District s intent is to keep outstanding debt to no more than 2.5 percent of its equalized property value. The 2.5 percent limit is half of the amount allowed by Wisconsin Law. No more than 15 percent of its outstanding general obligation bonds are in variable rate form. Advance refunding for economic savings is undertaken only when net present value savings of at least two percent of refunded debt can be achieved A pay-as-you-go financing strategy as part of the operating and capital budget. A multiyear financial plan in place that considers the affordability of actions or plans before they are part of the annual budget. Effective management and information systems. A well-defined and coordinated economic development strategy. Capital Budget complies with a 25 percent cash financing objective. The District has never issued debt to fund its O&M expenditures. The Capital Budget includes a Long-Range Financing Plan. Budget staff prepare a six-year forecast of revenues and expenditures for internal decision making. The District uses an integrated core financials management system and other program-specific systems that capture and report critical operating information. The District regularly communicates with member communities and the top 20 industrial users regarding the District s financial decisions and the impact on District customers. The District s user charge and tax rates are competitive on a national basis. The District fully supports its Small, Women-, and Minority Owned Business Enterprise procurement policy. The District provides and Workforce and Business Development Resource Program. The District uses a local workforce preference policy whenever applicable. 8

22 Financial Planning Just as strategic planning identifies objectives and strategies, financial planning identifies financing scenarios and alternatives for the strategic programs and other action items. A long-term forecast is prepared for both the Operations and Maintenance (O&M) and the Capital Budgets. The Budgeting Process First, the Budget staff begin financial planning by developing preliminary scenarios for anticipated revenues and expenditures and make a recommendation to the Executive Director regarding funds that will be available in the upcoming year for expenditures funded through the O&M Budget. At the same time, projections of capital spending and new capital project requests are identified by the requesting divisions. These capital expenditures are incorporated into a similar process to ensure that priorities are identified and financial goals are achieved. Both the O&M and Capital budgets are analyzed over the summer, and proposed budgets are developed for the Executive Director to present to the Commission for adoption. Requested amendments to the proposed documents are reviewed and incorporated if the Commission approves them. The budgets and tax levy are adopted in October or November. The user charges are adopted in November. The following graphic depicts the District s budget planning process and shows the linkage between strategic planning and financial planning. 9

23 Budget Review & Adoption Calendar Jan-Mar Apr-June June-Aug Aug-Sept Oct-Nov 1 District mission Statement reviewed 4 Division Budget materials distributed 7 Budget staff analyze budget submissions from Divisions 10 Budget staff present proposed budget to the Executive Director & Commissioners 12 Budget presented at public input meetings 2 District-wide objectives and strategies reviewed and revised, if necessary 5 Budget staff meet with Divisions to aid in budget preparation No 8 Are budget requests complete No 11 Are Executive Director & Commission issues addressed? 13 O&M and Capital Budgets and Tax Levy adopted by the Commission meeting 3 Division goals, objectives, strategies, and performance measures updated to reflect organizational changes in strategies and challenges 6 Divisions submit budget requests to Budget staff 9 Yes Budget staff develops proposed O&M and Capital Budget Yes 14 User Charge Rates approved DATE TIME ACTIVITY Friday, April 22, :30 a.m. Budget Kick-Off Friday, May 27, :00 p.m. Budget Requests Due Throughout May and June Monday, June 27, 2016 Monday, July 25, :00 a.m. 9:00 a.m. Staff analyze requests and begin to develop long-range financing plan and forecast Capital and Operations & Maintenance Budget update to Commission Capital and Operations & Maintenance Budget update to Commission Friday, September 2, :00 a.m. Distribute Budget to Commissioners Monday, September 26, :00 p.m. Public Hearing on Budgets Monday, October 3, :00 p.m. Budget Amendments Due Monday, October 10, :30 a.m. Public Hearing on Budgets Wednesday, October 12, :00 p.m. User Charge Ad Hoc Committee meets Monday, October 24, :30 a.m. Commission Adopts Budgets & Tax Levy Adopted Monday, November 28, :00 a.m. User Charge Billing Rates Set 10

24 District Fund Structure The District prepares its financial statements and budgets on an enterprise fund basis. The District s operating expenses are funded within the Operations and Maintenance (O&M) Budget, and the long-term capital expenditures are funded within the Capital Budget. The funding sources for the two budgets are different. The District s enterprise fund is used to account for operations that are 1) financed and operated in a manner similar to a private business enterprise where costs of providing public goods or services on a continuing basis are financed or recovered primarily through user charges and cost recovery programs, and 2) for which the District relies on taxes, non-member billings, federal and state aid, loans, and District-issued bonds which support the capital improvements program. The District, in accordance with Generally Accepted Accounting Principles (GAAP), reports categories of net position that indicates the accessibility of funds. As it does not use governmental funds, there is no fund balance as this term does not apply to enterprise funds. The equity of full-accrual statements, as an enterprise fund, is referred to as net assets, or per GASB 63, Net Position. The District s net position consists of restricted and unrestricted balances. Restricted balances consist of constraints placed on net position that are legally restricted by outside parties or by law through constitutional provisions or enabling legislation. Unrestricted balances consist of net position that does not meet the definition of restricted or net investment in capital assets. As of December 31, 2015, per the District s most recent audited Comprehensive Annual Financial Report, the District has a total net position for its enterprise fund of $2.6 billion. Of this amount: $2.5 billion is investment in capital assets net of accumulated depreciation and outstanding debt (the debt is reduced by the unspent debt proceeds) that is attributable to the acquisition of land, planning, design and construction, of these assets; $50.9 million is restricted for capital projects and programs (see capital budget for further explanation on capital programs); $31.1 million is restricted for debt service sinking funds, and $14.5 million is restricted for qualified equipment replacement and is required to be maintained by federal and state regulatory agencies. ($3.9 million) is in unrestricted. The negative amount for unrestricted is the result of the District electing to fund its longterm liability related to post-retirement health and life insurance as it comes due rather than when it is incurred. The total long-term liability related to this benefit was $46.1 million at December 31, 2015, with an unfunded actuarial accrued liability of $190.5 million, amortized as a level dollar amount and over 20 years. Enterprise Fund Accounting for Budgets Operations & Maintenance Budget Operating Funding User Charges Industrial Waste Pretreatment Program Household Hazardous Waste Program Milorganite Sales (Net)* Interest Income Other Income Capital Budget Capital Funding Tax Levy Non-Member Billings State Loans Federal and State Aid Interest Income District Issued General Obligation Bonds Operating Expenses Net Division Expenses** Net Fringe Benefit Expenses** Capital Expenditures Water Reclamation Facilities Conveyance System Watercourse & Flood Management Projects Facilities Planning and Other Projects Net Debt Service * Milorganite revenue is reported net of discounts, rebates, fees, discount, freight, etc. ** Net operating expenses are reported after charges to the capital budget have been subtracted. 11

25 Operations and Maintenance & Capital Budgeting Item Operations and Maintenance Capital Sources of Funds User Charges, Net Revenue from Milorganite sales, Interest Income, Surplus Applied, User Charge Stabilization Fund Applied, and other operating income. Tax Levy and Nonmember Billings, Loans and Bonds, Federal and State Aid, Interest and Other, Uses of Funds on Hand, and all other capital income. Use of Funds Budgetary Basis of Accounting Net Division Expenses and All Other Operating Expenses. Actual revenues and expenses are recorded on a full accrual basis in accordance with Generally Accepted Accounting Principles. Revenues and expenses are budgeted on a full accrual basis, with the exception of capital outlays. These are budgeted as an expense in the year incurred, but capitalized and depreciated for financial reporting purposes. Total Project Expenses and Net Debt Service. For financial reporting, actual revenues and expenses are recorded on a full accrual basis in accordance with Generally Accepted Accounting Principles. Revenues are budgeted on a cash basis. Because the Capital Budget serves as a financing plan, it is important to plan when revenues are received rather than when they are earned. Basis for Expenses Costs of controlling, operating, managing or maintaining the sewerage system. Costs also include replacement costs of obtaining and installing equipment, accessories or appurtenances that are necessary during the service life of the District s sewerage system to maintain the capacity and performance for which the sewerage system was designed and constructed. Costs of acquiring, purchasing, adding to, leasing, planning, designing, construction, extending and improving all or any part of a sewerage system and of paying principal, interest or premiums on any indebtedness incurred for these purposes. Project Costs Less than $25,000 Greater than or equal to $25,000 Service Life Less than 10 years. Ten or more years (must represent an identifiable addition to facilities or extend the service life of existing facilities). Equipment Replacement Cost less than $25,000 or service life equal to or less than 20 years. Cost greater than or equal to $25,000 and a service life greater than 20 years. Green Infrastructure The District does not need a conservation easement for the property on which the project will be installed. The cost is less than $25,000. The District has a minimum 10-year conservation easement on the property on which the project will be installed. The cost is greater than or equal to $25,

26 Operations & Maintenance 2017 Combined Summary of Revenues and Expenditures 2015 Actual (Dollars in Thousands) 2016 Adopted Budget 2016 Amended Budget 2016 Estimate 2017 Budget Change from 2016 Adopted Budget % Change from 2016 Adopted User Charge Billings $71,996 $73,280 $73,280 $73,980 $75,113 $1, % Milorganite Sales (Net) 8,603 7,830 7,830 8,636 8, % All Other Operating Income 3,278 3,289 3,289 3,177 3, % User Charge Stabilization Fund Applied (or Contribution) 1,000 1,000 1,000 1,000 (4,165) (5,165) % Equipment Replacement Fund Applied (or Contribution) 0 (300) (300) (300) (300) 0 0.0% Surplus Applied 3,919 4,666 4,666 4,666 7,831 3, % Total Operations & Maintenance Funding 88,795 89,765 89,765 91,159 90, % Capital Tax Levy 93,639 95,980 95,980 95,980 98,380 2, % Non-member Billings 30,222 30,550 30,550 30,550 30, % Federal and State Aid 2,085 2,154 2,154 3,708 1,906 (248) -11.5% State Loans 19,403 23,600 23,600 7,501 33,820 10, % Interest and Other Income 2,491 4,991 4,991 2, (4,176) -83.7% District Bonds 107, ,000 80, % Bond Premium Use of (Additions to) Available Funds (71,073) 58,990 58,990 70,016 (26,556) (85,546) % Total Capital Funding 184, , , , ,233 2, % Total Funding $273,441 $306,030 $306,030 $301,721 $309,628 $3, % Expenditures Operations & Maintenance Net Division Expenditures $73,430 $78,955 $79,257 $77,222 $79,059 $ % Net Fringe Benefit Expenditures 8,310 8,701 8,701 8,614 9, % Unallocated Reserve 0 2,110 1, , % Total Operations & Maintenance Expenditures $81,740 $89,765 $89,765 $85,836 $90,395 $ % Capital Water Reclamation Facilities 22,932 30,175 30,175 24,358 44,937 14, % Conveyance Facilities 9,375 10,615 10,615 11,833 10, % Watercourse & Flood Mgmt Projects 15,379 24,493 24,493 29,014 11,889 (12,604) -51.5% Other Projects & Programs 16,319 24,288 24,288 20,619 25, % Debt Service 120, , , , ,636 (58) 0.0% Total Capital Expenditures 184, , , , ,233 2, % Total Expenditures $266,386 $306,030 $306,030 $296,398 $309,628 $3, % 2016 Estimate is as of third quarter Note, totals may not appear to add due to rounding. 13

27 The District s 2017 combined budget totals approximately $309.6 million. As seen in the following chart, the primary sources of funds in the 2017 combined budgets are the tax levy, non-member billings, bonds, federal and state aid, and user charge billings. $140, Combined Summary of Revenue Revenue (dollars in thousands) $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Tax Levy & Nonmember Charges Bonds Issued, Federal & State Aid User Charge Billings State Loans On the expenditure side, the Capital Budget again comprises the majority of the 2017 combined budget with net debt service, water reclamation facilities, conveyance, watercourse and flood management, and other projects and programs project expenditures totaling 70.8 percent. The net divisional and fringe benefit expenditures, which include operations of the District facilities, are 28.5 percent of the combined expenditures. $140, Combined Summary of Expenditures $120,000 Expenditure s(dollars in thousands) $100,000 $80,000 $60,000 $40,000 $20,000 $0 Net Debt Service Net Divisional Expenditures Water Reclamation Facilities Watercourse & Flood Mgmt Projects Other Projects & Programs Conveyance Facilities Net Fringe Benefit Expenditures Unallocated Reserve 14

28 Funding by Community Household Total Hazardous Billings to Community Tax Levy User Charge Combined Waste Program Communities District Members Bayside $1,106,316 $232,979 $1,339,295 $6,284 $1,345,579 Brown Deer 1,526, ,673 2,320,148 14,832 2,334,980 Cudahy 1,584,199 1,880,263 3,464,462 25,659 3,490,121 Fox Point 1,939, ,456 2,305,039 9,382 2,314,421 Franklin 6,354,128 2,165,235 8,519,363 46,331 8,565,694 Glendale 2,992, ,762 3,966,205 17,366 3,983,571 Greendale 2,226, ,056 3,023,250 20,248 3,043,498 Greenfield 4,873,158 2,080,442 6,953,600 45,300 6,998,900 Hales Corners 1,150, ,408 1,615,266 9,629 1,624,895 Milwaukee 44,727,333 43,080,279 87,807, ,377 88,522,989 Oak Creek 5,278,934 2,293,748 7,572,682 41,298 7,613,980 River Hills 867,891 86, ,008 2, ,523 Shorewood 2,537, ,725 3,233,211 18,069 3,251,280 South Milwaukee ,510 29,510 St. Francis 952, ,022 1,524,976 10,607 1,535,583 Wauwatosa 9,664,463 3,265,714 12,930,177 68,201 12,998,378 West Allis 6,373,125 3,911,608 10,284,733 90,137 10,374,870 West Milwaukee 502,867 1,030,813 1,533,680 5,693 1,539,373 Whitefish Bay 3,721, ,584 4,441,176 19,499 4,460,675 Total District Members $98,380,000 $65,408,884 $163,788,884 $1,195,937 $164,984,821 Non-member Communities* Brookfield $3,908,620 $975,161 $4,883,781 - $4,883,781 Butler 329, , , ,041 Caledonia 51,588 26,051 77,639-77,639 Elm Grove 1,587, ,972 1,927,513-1,927,513 Germantown 3,177,394 1,563,019 4,740,413-4,740,413 Menomonee Falls 5,561,266 1,945,802 7,507,068-7,507,068 Mequon 5,745,807 1,244,326 6,990,133-6,990,133 Muskego 3,834,221 1,128,923 4,963,144-4,963,144 New Berlin 6,230,307 1,988,367 8,218,674-8,218,674 Thiensville 451, , , ,412 Nonmember Communities** $30,876,999 $9,611,819 $40,488,818 $0 $40,488,818 Other $92,065 $92,065 $92,065 Total Communities $129,256,999 $75,112,768 $204,369,767 $1,195,937 $205,565,704 *Non-member communities capital billing is an ad valorem charge not a tax levy. **Represents the actual charges. Final determination of property values occurs after Budget adoption and causes a slight discrepancy from the budgeted amount listed in the Combined Summary of Revenues and Expenditures. 15

29 Comparison of Budgeted User Charges Percent 2017 Community Budget Budget Change Residential Commercial Industrial District Members Bayside $227,677 $232, % $185,948 $47,031 $0 Brown Deer 771, , % 421, ,957 28,672 Cudahy 1,695,777 1,880, % 664, , ,234 Fox Point 367, , % 275,269 90,187 - Franklin 2,119,212 2,165, % 1,159, , ,896 Glendale 932, , % 447, ,269 67,402 Greendale 896, , % 563, , Greenfield 2,047,682 2,080, % 1,112, ,335 5,347 Hales Corners 454, , % 258, ,655 - Milwaukee 42,210,856 43,080, % 20,998,167 14,203,093 7,879,019 Oak Creek 2,253,071 2,293, % 1,114, , ,430 River Hills 84,431 86, % 74,614 11,503 - Shorewood 712, , % 431, ,960 - St. Francis 563, , % 311, ,263 27,275 Wauwatosa 3,068,521 3,265, % 1,800, , ,456 West Allis 3,803,768 3,911, % 2,122,045 1,307, ,504 West Milwaukee 1,023,041 1,030, % 124, , ,662 Whitefish Bay 712, , % 605, ,745 - Total District Members 63,944,739 65,408, % 32,670,705 21,586,807 11,151,372 Nonmember Communities Brookfield 944, , % 731, , Butler 178, , % 61,739 43,717 97,502 Caledonia 25,658 26, % 25, Elm Grove 332, , % 262,399 77,573 - Germantown 1,458,138 1,563, % 545, , ,131 Menomonee Falls 1,837,644 1,945, % 1,243, , ,077 Mequon 1,284,956 1,244, % 840, ,117 8,111 Muskego 1,122,283 1,128, % 892, ,028 30,352 New Berlin 1,938,171 1,988, % 1,171, , ,887 Thiensville 195, , % 106,651 90,589 - Total Nonmember Communities 9,317,916 9,611, % 5,881,230 2,551,394 1,179,195 Other 17,362 92, % ,065 Total Communities $73,280,017 $75,112, % $38,551,935 $24,138,201 $12,422,632 16

30 Future Outlook Planning for the 2017 Budgets requires the District to think several years ahead. Following are projections from several District planning efforts. District Service Area Changes The 2050 Facilities Plan is developing a comprehensive plan to meet the District s needs through the year 2050 with an interim horizon of The Plan assesses the capacity and operation of conveyance, storage, treatment, watercourse, green infrastructure, and ancillary facilities or systems that are either owned by or under the jurisdiction of the District with consideration to future land use and population projections. The Plan considers what the District s service area will look like in 2050, including population increasing by 27 percent. Total Population : District Service Area Population 1,600,000 1,400,000 1,200,000 1,000, , , , , The 2050 Facilities Plan also projects land use changes, including increases to commercial and industrial land use. The changes in land use impact the District s billing parameters from each of the four customer classes: residential, industrial, commercial, and non-certified. Year : Land Use in the District's Service Area 27% The projected population growth in the District's service area from 2010 to ,000 18,382 18,000 16,000 14,000 15,430 14,305 16,638 Total Acres 12,000 10,000 8,000 6,000 4,000 2,000 10,501 10,410 0 Commercial Land Use (acres) Industrial Land Use (acres) Commercial Land Use (acres) Industrial Land Use (acres) Commercial Land Use (acres) Industrial Land Use (acres) (Buildout) 17

31 District Workforce Changes As the District plans for the future, it must consider how to restructure staffing to become more efficient, how to attract qualified applicants, and how to transfer critical skills and knowledge. Number of Employees Eligible Retirements The District faces an increasing number of retirements, with 20 percent of the current workforce eligible to retire Year District Green Infrastructure Program In 2011, the Executive Director set the District s 2035 Vision with the goal of capturing the first 0.5 inch of rainfall on impervious surfaces, the equivalent of 740 million gallons of stormwater storage. In 2013, the Commission adopted the Regional Green Infrastructure Plan (Plan) documenting how the District can meet its goal. The Plan identifies the types and quantities of green infrastructure the District should invest in as well as a timeline for meeting its goal. The first five years from are largely planning years, for laying the foundation for long-term success, and the following years, , are focused on implementing, standardizing, and improving the green infrastructure program. As seen in the graph below, in order to reach its goal, the District will have to install 36 million new gallons of green infrastructure each year. Total Gallons Captured by GI by Year In order to reach its goal of 740M gallons by 2035, the District has to install 36M new gallons of GI each year for the next 20 years 800 M 700 M 740,000, M Installed Gallons of GI 500 M 400 M 300 M 200 M 100 M M Planned Actual 18

32 M I L W A U K E E M E T R O P O L I T A N S E W E R A G E D I S T R I C T S T R A T E G I C P L A N P A R T N E R S F O R A C L E A N E R E N V I R O N M E N T The Milwaukee Metropolitan Sewerage District s Strategic Plan creates a CLEAR path to cleaner waters. The continuous improvement methods and tools included in the CLEAR plan help position the District to meet any future challenges and opportunities, stay true to the 2035 Vision, and provide customers with an innovative environmental and economic leader in the region. Furthermore, it ensures that the District is prepared to enhance the quality of life in the region and protect our water resources for years to come. The Milwaukee Metropolitan Sewerage District (MMSD or the District) is recognized internationally as a leader in the municipal sewerage industry because of the District s commitment to protecting local watersheds as well as the District s innovative solutions to storm water management. The District has earned its reputation through effective planning, construction and operation of the District s systems. Beginning with the creation of Milorganite in 1926, continuing through to MMSD s current Green Infrastructure initiative FreshCoast740, MMSD continues to lead the industry in the development and implementation of innovative watershed protections. The District s success in the technical abilities to control flooding and treat wastewater, coupled with the Milwaukee region s commitment to becoming an international hub for water technology, provides a unique opportunity to be a tremendous asset to the communities the District serves. MMSD will build on our technical expertise to continue to achieve permit compliance through our 2050 Facilities Plan. We recognize that above all else, the continued planning, construction and operation of our systems ensures compliance with our WPDES permit and remains the District s most important function. The following Strategic Plan, which includes reporting for current planning efforts like the 2050 Facilities Plan, will provide a CLEAR path for MMSD. Completion of the action steps included in the CLEAR plan will ensure permit compliance, enhance the District s efficiencies and increase the beneficial services the District offers to the region. Additionally, the CLEAR plan allows MMSD to report on the strides made towards achieving our 2035 Vision of a healthier region and a cleaner Lake Michigan. 19

33 M I S S I O N & V I S I O N M I S S I O N T O C O S T E F F E C T I V E L Y P R O T E C T T H E R E G I O N S W A T E R R E S O U R C E S. This mission guides the core activities at the District, specifically water reclamation and flood management. The District operates two water reclamation facilities through a private contract operator that serve 411 square miles and 1.1 million people in 28 communities. Additionally, the District manages several programs designed to mitigate local waterway pollution and improve water quality such as the Industrial Waste Pretreatment Program and the Household Hazardous Waste Collection Program. The District routinely collects data and monitors its activities to ensure efficient, sustainable operations. As a steward of public funds and a major player in ensuring the health of the area s waterways, the District values accountability and uses the objectives laid out in the Strategic Plan to direct individual and division activities. The 2035 Vision, adopted in 2010, has two elements: integrated water shed management and climate change adaptation with an emphasis on energy efficiency. Using the guiding principles of the sustainable bottom line and water quality leadership and collaboration, the District has set forth this vision: MMSD envisions a healthier Milwaukee region and a cleaner Lake Michigan accomplished through its leadership in attaining zero overflows, zero basement backups, and improved storm water management. MMSD will be a model in its management of climate change impacts on wet weather and its focus on energy efficient and sustainable operations. The 2035 Vision contains strategic goals and objectives. The goals focus on using green infrastructure, reducing the District s carbon footprint by 90 percent from its 2005 baseline, and working with local organizations, nonprofits, and universities to further water industry knowledge and environmental stewardship. The Strategic Plan helps direct District efforts to accomplish the 2035 Vision and builds a foundation for future efforts to meet the organization s mission. 20

34 Using the acronym CLEAR, which stands for Collaborative, Lean and Efficient, Accountable, and Resilient, the Strategic Plan will continue the District on the path towards achieving the 2035 Vision. The new CLEAR plan will ensure the District is true to its mission and help highlight MMSD as an industry leader. Collaborative Mobilizing significant regional resources requires effective partnerships. Improving valued relationships with government agencies and the academic universities and partnering with businesses and community organizations to facilitate the achievement of District objectives and addressing local needs is a critical strategy. The District will focus its efforts on building a unified understanding of the District s mission, creating visibility, and developing partnerships. The collaboration strategy is intended to ensure the region is building relationships with its partners, providing timely and accurate information to constituents, maintaining a clear and consistent message, and increasing awareness and visibility of who we are, what we do, and how it benefits the region as a whole. Economic Development The Milwaukee region is experiencing a renaissance of its industrial heritage. With numerous initiatives underway to attract wet industries, emerging companies in water and energy technologies, food and beverage clusters and green infrastructure, the Milwaukee Area is a vastly changing landscape at a dizzying pace. For the work to continue, it is imperative that the region continues to develop a skilled and knowledgeable workforce, a thriving entrepreneurial ecosystem, engaged community and high quality infrastructure. Beyond the infrastructure we build and maintain to protect the regions water resources, the District holds a unique role in the region s economic development through our SWMBE and workforce development programs and the support of M7 s regional economic development plan. The Strategic Plan includes the evaluation of our current programs, helps create channels to engage business leaders, emerging companies, and the skilled workers required for the region to meet its goals. Goals Be proactive in providing Milwaukee-area economic development leaders information that helps to support economic growth and development Ensure the local workforce is trained to implement future District Capital Improvements Projects. Outreach The District is a multi-faceted organization, with many operations, programs, services, and goals. Together, these facets of the organization combine to support one common goal: to improve water quality and protect Lake Michigan. The District relies heavily on community members to accomplish our overarching goal, making the community outreach an essential function. Moving forward, it is imperative that the District help the communities we serve understand the challenges our waterways face and the District s role in addressing those challenges. Goals Develop clear and consistent messages Identify target audiences and best practices for engagement Evaluate and incorporate feedback from outreach activities 21

35 Lean & Efficient Lean government strives for continuous improvement and reducing waste. MMSD prides itself on providing the most efficient service possible to the communities we serve. In order to be good stewards, the District is constantly looking for innovative solutions to provide efficient, value-added services at the lowest cost possible. We continuously examine what, why and how we work as a way to reduce waste and unnecessary procedures. As part of the Strategic Plan, the District will launch initiatives to document processes, reduce redundancies and enhance operating and maintenance cost offsets provided by Milorganite. Ultimately, the lean and efficient strategy will ensure the District remains an industry leader both in effective services and financial stability. Systems Thinking Systems thinking is a key tenet of lean government. It is a holistic approach to analysis that focuses on interrelationships, systems over time, and evaluating and incorporating feedback. The District can use systems thinking for two critical areas of its operations: Information Technology and Milorganite sales. Information Technology Systems thinking will benefit information technology strategies as the relationship with users and the rapid pace of technology changes could become a harmonious one. MMSD relies on the use of information technology in every aspect of its operations. This heavy reliance on so expensive of an infrastructure and on such a changing realm equates to meticulous planning and forward thinking. As the scope of District functions have expanded from simple water reclamation to include new environmental initiatives, so too have the IT systems been asked to expand to support these new functions. The District now creates new data at a fast pace which places strain on our server storage space and outages and security pose new threats. Every day new opportunities arise with advanced software solutions on the market but with these come a myriad of issues including ongoing maintenance, costly upgrades, and permissions barriers. Prospects must be carefully scrutinized and weighed to ensure adequate staff, funds, and storage space are available to support both current existing software and any new additions. The Strategic Plan includes the evaluation of life cycle software management, a multi-year plan to address software and hardware capabilities and needs, and the development of policies and procedures. All of these will aid in ensuring the District has a sustainable and forward thinking IT department it can depend on. Goals Develop a procedure that addresses each aspect of a new acquisition and prioritizes with user needs and budget constraints Create a strategy for current and future storage allocation to address handling growing data sets Create a procedure and schedule for the total life cycle management of software and hardware within the District Evaluate and develop plan for end user equipment and hardware 22

36 Lean & Efficient Milorganite Systems thinking will benefit Milorganite sales as understanding trends over time, customer feedback and relationships, and evolving distribution channels are critical to maintaining and improving sales strategy and performance. Milorganite sales has a significant impact on the District s ability to minimize user charge billings, so effective strategy is essential. MMSD has always been lauded for its ability to turn challenges into opportunities. One such instance is the production of the fertilizer Milorganite from the microscopic organisms that clean wastewater. Since its development in the 1920s MMSD stood out as a leader in sustainability by reusing these microbes instead of landfilling them. For 85 years the District has relied upon the revenue gained from the sale of Milorganite to aid in keeping our user charges rates low. The impact of Milorganite sales is significant to the District s O&M Budget. As a niche in a commodity market, effective strategy is important. There are many opportunities for growth in the sale of the product and through the initiatives in the Strategic Plan the District plans to capitalize on these opportunities. Goals Expand in current markets and break into new ones Create communications plan that strategizes the message Ensure the District is proactive and ready for any regulatory issues regarding Milorganite Explore all avenues available and the potential outcomes of each regarding to changes in product specifications 23

37 Lean & Efficient Process Improvements The District strives to continually improve the efficiency of our operations. From , the District will identify redundancies, inefficiencies and obstacles, and emphasize data-based decision making. Reporting Streamlining The District aims to understand the real needs of its stakeholders and customers in order to eliminate non-valueadded activities, and better deploy human and financial resources to higher-priority activities. The District s goal is to review and right-size the number of reports it generates and presents each year. As part of the lean and efficient strategy, the District will work to streamline the required reports, ensuring compliance with administrative requirements and reducing the redundancies in information and resources. Goals Publish meaningful and useful reports and information Capital Budgeting Estimating Each year the Budget Office staff and the Technical Services Division staff review new and existing capital projects. Requests are prioritized and adjustments made to balance infrastructure needs with debt obligations and tax rates. The more accurate the budget requests are to actual expenditures the more accurate future financial plans can be. The District s efforts in past financial planning have helped the District remain on solid financial footing through times of economic uncertainty. In order to continue to meet the District s goals, the District will rely on sound financial planning to ensure that the District continues to enjoy high debt ratings and has the resources necessary to build the infrastructure required for efficient operations. The initiative will evaluate whether there are opportunities to improve this process. Goals Efficiently allocate resources and prioritize projects 24

38 Accountable An accountable organization is one that embraces the connection with its internal and external customers. Transparency is also a tool that fosters open communication, innovation, and collaboration. As part of the Strategic Plan, the District will work to improve the means for communicating performance for various operational processes. Open Data The District constantly generates a vast amount of data. More and more governmental entities are providing open data or publicly available data structured in a way that enables the data to be fully discoverable and usable by end users. This shift to a more transparent government has risen to a level that impacts all branches from federal to local. Recognizing the growing trend in information sharing and the potential for the District to be more transparent and accountable, the Strategic Plan includes a review of the potential for the District to provide more data resources to the public. Our goal in reviewing open data policies and trends is to identify useful information and determine cost effective methods in providing the data to the public. Goals Improve accountability and transparency District-wide, as possible Performance Metrics Performance reporting helps the District stay focused on the quality of services and the benefits those services provide to the region. Monitoring and measuring performance also improves management practices and the public s confidence in the District s ability to achieve high quality program and operating results. For the past several years, the District has maintained a performance dashboard on the intranet, which includes program performance, strategic goals, objectives, and progress towards meeting those goals, and division director annual accountabilities and performance. With this Strategic Plan process, an improved performance management system that encompasses District planning and core processes will be created. Going forward, instead of including information in the dashboard because someone thought it might be interesting, the District aims to first ask, Will the information drive productive action? Goals Meaningful and timely information from which to extract trends and improve performance 25

39 Resilient The challenges posed to the District are numerous and complex. Resilience is the organizational capability to anticipate key events from emerging trends, constantly adapt to change, and bounce back from disaster. From , the District will strive to anticipate change and be prepared for the future. Workforce There are many internal and external challenges facing public sector employers including: increasing and changing needs for services from the public; new and changing technology; an aging workforce; significant limits on financial resources; new and changing job skills and knowledge requirements; and greater demands for accountability and transparency. A high-performing, committed and engaged workforce has a direct positive impact on the quality of services delivered and the perception of public trust towards public service. Focused investment in our employees will help ensure the effective, efficient, and high quality delivery of services and programs to the public. With changing workforce demographics, it is imperative that the District stay current and flexible in its workforce policies to attract and retain the best and the brightest. Over 30 percent of District employees are eligible for retirement in the next three years. As such, the District must be prepared to fill the positions and continue to deliver high quality services. Goals Attract and retain high-quality employees Foster seamless turnovers and transitions Promote District values Budgets The District prides itself on strong and prudent financial management. Currently the District develops long-range financial plans for both its capital and O&M budgets. The current capital long-range plan is based primarily on the District s 2020 Facilities Plan. As the 2050 Facilities Plan is developed, the District will need to put forth a financing plan that captures new requirements plus affordability. The current O&M forecast is limited by the term of the Veolia Water (VW) Milwaukee operating contract, which is over fifty percent of expenditures. As the VW contract expires in 2018, the District needs to prepare strategies to address new expenditure needs for a new decade. Goals Structural budget balance for Continue achievement of District s Long Range Financing Plan goals while incorporating 2050 recommendations Minimize user charge billings and levy volatility 26

40 Milwaukee Metropolitan Sewerage District 260 West Seeboth Street Milwaukee WI Date Adopted: October 24, 2016 Adopting the Operations and Maintenance Budget for the 2017 Fiscal Year RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the 2017 Operations and Maintenance Budget, providing the total expenditures of $90,394,800 to be funded by $75,112,768 in user charge billings, $8,350,000 in Milorganite net sales, $1,136,681 in other income, $250,000 in interest income, $1,195,937 in Household Hazardous Waste Collection Program revenue, $983,414 in Industrial Waste Pretreatment Program revenue, and the return of $7,831,369 from the 2015 Operations and Maintenance surplus, is hereby adopted, with a $300,000 contribution to the equipment replacement fund and a $4,165,369 contribution to the user charge stabilization fund anticipated. I, Anna Kettlewell, Commission Secretary of the Milwaukee Metropolitan Sewerage District, do hereby certify that the above is a true and correct copy of Resolution No , adopted by the Milwaukee Metropolitan Sewerage Commission at a meeting held on 10/24/

41 28

42 2017 Operations & Maintenance Budget The Operations & Maintenance (O&M) Budget provides a framework to implement and accomplish District priorities that support its mission of environmental stewardship and sustainability. The majority of the Operations & Maintenance Budget is targeted towards operations of wastewater reclamation facilities and controlling point and non-point sources of pollution. This budget enables the District to continue its high standard of performance in protecting water resources at levels higher than permit requirements. REVENUES In the 2017 O&M Budget, the District anticipates $90.4 million in sources of funds. This includes user charge billings, net revenue from Milorganite fertilizer sales, interest and other income, two cost recovery programs, the return of a 2015 surplus, and the use of reserves. The primary source of revenue for O&M expenditures is the user charge billings. In 2017, user charge billings are budgeted at $75.1 million, a 2.5 percent increase from the 2016 budget. In the 2017 O&M Budget, total revenue increases $629,603 or 0.7 percent from the 2016 budget. For additional information on the District s revenues and reserves, refer to the Sources of Funds section. 29 EXPENDITURES A majority of the District s expenditures are related to the Veolia Water Milwaukee (VWM) contract for operations and maintenance of District water reclamation facilities and conveyance system. The VWM operations and maintenance fee comprises approximately 47.5 percent of the 2017 O&M Budget. In addition to the contract cost, the District is also responsible for 75 percent of all energy costs under this contract. Combined with the utility fee paid to VWM, energy expenditures are approximately 11.4 percent of the O&M Budget. For further detail on the division s expenditures, refer to the Division and Other Expenditure sections.

43 Capital Expenditures Impact on the Operating Budget The District undertakes life-cycle costing in the analysis of capital projects. This includes, when possible, what the change in the O&M costs will be following the completion of each capital project, and carefully considering those costs in deciding which projects move forward in the Capital Improvement Program (CIP). When CIP undertakes new initiatives or new technologies, it is more likely to result in new O&M expenditures or incremental changes to ongoing O&M expenditures. Many capital projects replace or improve existing infrastructure and might have minimal change to the O&M budget. In capital project summaries, the O&M impact section will describe the changed condition, start date, and annual budget impact. O&M expenditures resulting from the completion of capital projects may be budgeted in expenditures for the Veolia Water Milwaukee contract or in District division budgets. Below are some projects from the capital budget that will potentially have notable O&M impacts. Digester Gas Treatment System This project will reduce the downtime of the South Shore engine generators that result from impurities in the digester gas fuel. The project is expected to have a positive operating budget impact because of the reduced need for engine repairs and increased uptime use of digester gas. Biological Phosphorus Removal Phosphorus levels are a component of permit compliance. The District will be working to decrease chemicals and energy used in removing phosphorus in the secondary treatment process which may reduce these expenditures and the VW fee Facilities Plan The District is near completion of the 2050 Facilities Plan. The project will address future needs in an operationally sustainable and cost-effective manner. The Plan will have an emphasis on asset management which will aid in future operation budget decisions, such as repair and maintenance versus replacement. Capital Program Software This project is to replace an unsupported project management system and to preserve and expand efficiencies and effectiveness in managing the District s ongoing CIP. This is a software as a service system which will result in decreased District IT infrastructure needs, typically funded in the O&M budget. Guide to the 2017 O&M Budget Concluding the O&M Summary are a series of charts and graphs providing an overview of the 2017 O&M Budget s organizational structure and staffing levels, District revenues and expenditures, and division and cost center expenditures. The Sources of Funds section discusses each of the District s O&M revenues. The Budget describes each revenue source s historical data, changes in funding levels, and trends that affect the revenue source. The Division Summaries discuss the District s operating divisions: the Commission, the Office of the Executive Director; Legal Services; Finance Division; Technical Services Division; Planning, Research, & Sustainability Division; Water Quality Protection Division; and the Division of Community Outreach and Business Engagement. These summaries provide the detail of the division s structure, mission and services, budgeted expenditures, and staffing levels. The final section, Other Expenditures, provides detailed information about the District s Fringe Benefits, Division Expense Adjustments, and the Unallocated Reserve. 30

44 Milwaukee Metropolitan Sewerage District Organizational Chart Below is the District s organization chart with position counts for each cost center. The following pages offer additional detail on changes to authorized staffing by division; each division s narrative also includes a detailed explanation to personnel costs and changes. Commission Office of the Executive Director Human Resources (4) Information Technology Services (20) Executive Director Cost Center (2) Facilities Management (3.5) Legal Services (8) Technical Services Planning, Research, and Sustainability (23) Water Quality Protection Finance (19) Community Outreach & Business Engagement Records Management (4) Engineering Services (23) Central Laboratory (22) Public Information, Intergovernmental Affairs, and Educational Outreach (7) Capital Program Support (41) Office of Contract Compliance (8) Industrial Waste, Freshwater Resources & Conveyance System Monitoring (39) Procurement & Supplier Development (8) Marketing & Milorganite (7) 31

45 Summary of Authorized Staffing by Division Divisions 2015 Budget 2016 Budget 2017 Budget Change from 2016 Commission Office of the Executive Director Human Resources Information Technology Services Facilities Executive Director Legal Services Records Legal Services Finance Finance Office of Contract Compliance Capital Program Support (1) Engineering Services Technical Services (1) Planning, Research & Sustainability Planning, Research & Sustainability Industrial Waste & Conveyance Monitoring Central Laboratory Water Quality Protection Marketing and Milorganite Facilities Procurement & Supplier Development Public Information, Intergov. Affairs, and Educational Outreach Records Community Outreach & Business Engagement Total District Note: Commissioners are not included in this table Explanation of Changes to Authorized Staffing by Division 1. In 2017, the Facilities cost center adds one half-time Facilities Technician I Limited Term Employee to help absorb workload increases that are deemed short-term needs. 2. In 2017, the Finance Division eliminates one vacant Assistant Controller Limited Term Employee. The Finance Division also creates one Safety Advisor to help supervise safety in the field and with District contractors. 3. In the 2017 budget, the Capital Program Support cost center transferred one Engineering Aide position to the Planning, Research and Sustainability division to better align work. The cost center also reclassified one vacant Lead Inspector position to an Engineering Aide position and eliminated the Lead Inspector position. 4. In mid-2016, the Planning, Research and Sustainability Division created one Project Manager position to help with the green infrastructure installation and maintenance workload. In 2017, the Division creates one Neighborhood Coordinator position to help conduct outreach related to green infrastructure in the area s neighborhoods. The division also created one Project Manager PPI/I position to help with the District s PPI/I project. In the 2017 budget, one Engineering Aide is transferred from the Capital Program Support cost center to the Planning, Research and Sustainability Division. 5. In 2017, the Industrial Waste, Freshwater Resources and Conveyance System Monitoring cost center adds one Administrative Coordinator position. 6. In mid-2016, the Marketing and Milorganite cost center added one Sales and Marketing Manager Limited Term Employee to help with succession planning efforts. 32

46 Prior to May 1, 2016, the District had one bargaining unit, AFSCME Local 366. The Wisconsin Employment Relations Commission (WERC) made permanent the rule requiring unions to annually recertify their status as the representative for general municipal employees. This required AFSCME Local 366 to file the appropriate fee with the WERC by February 1, 2016, to be eligible to continue representing the District s Local 366 employees. Local 366 members voted not to request a vote for recertification. Effective May 1, 2016, MMSD employees represented by ASFCME Local 366 became nonrepresented employees 2017 Position Count by Division Technical Services 72 Water Quality Protection 61 Executive Director 29.5 Planning, Research and Sustainability 23 Community Outreach and Business Engagement 22 Finance 19 Legal Services Number of Employees Employees wear red to support Heart Health Awareness Day on February 5,

47 Revenues and Expenditures 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Adopted Budget % Change from 2016 Adopted Budget Revenues User Charge Billings $71,996,408 $73,280,018 $73,980,018 $75,112,768 $1,832, % Milorganite Sales (Net) 8,602,516 7,830,000 8,635,862 8,350, , % Interest Income 200, , , , % Other Income 1,126, , ,998 1,136, , % Household Hazardous Waste 1,018,370 1,258,892 1,147,186 1,195,937 (62,955) -5.0% Industrial Waste Pretreatment 932, , , ,414 27, % Total Operating Revenue 83,876,641 84,399,198 $85,793,354 87,028,800 2,629, % Reserves and Surplus Equipment Replacement Fund Applied (or Contribution) 0 (300,000) (300,000) (300,000) 0 - User Charge Stabilization Fund Applied (or Contribution) 1,000,000 1,000,000 1,000,000 (4,165,369) (5,165,369) % Surplus or Deficit Applied 3,918,593 4,666,000 4,666,000 7,831,369 3,165, % IWPP Stabilization Fund Applied Total Reserves and Surplus 4,918,593 5,366,000 5,366,000 3,366,000 (2,000,000) -37.3% Total Funding $88,795,234 $89,765,197 $91,159,354 $90,394,800 $629, % Expenditures Divisions Commission 219, , , ,202 (47,380) -16.8% Office of the Executive Director 5,947,262 5,927,429 6,224,021 6,516, , % Legal Services 1,192,728 1,483,718 1,037,089 1,137,841 (345,877) -23.3% Finance 1,885,656 2,686,432 2,688,226 2,891, , % Technical Services 62,588,551 65,494,669 63,424,192 64,256,256 (1,238,413) -1.9% Planning, Research & Sustainability 1,972,001 2,479,944 2,237,262 2,740, , % Water Quality Protection 5,428,035 5,536,017 5,502,778 5,741, , % Community Outreach and Business Engagement 5,158,625 5,722,259 6,168,033 6,292, , % Fringe Benefits 11,562,110 11,947,123 11,830,753 12,383, , % Charges to Capital (14,214,458) (13,903,709) (13,528,622) (14,011,808) (108,100) 0.8% Net Division Expenditures $81,740,267 $87,655,466 $85,835,814 $88,182,303 $526, % Unallocated Reserve 0 2,109, ,212, , % Total Expenditures $81,740,267 $89,765,197 $85,835,814 $90,394,800 $629, % Note, the 2016 Estimate is as of October of Note, totals may not appear to add due to rounding. 34

48 The District s 2017 O&M Budget totals approximately $90.4 million. As seen in the following chart, user charge billings comprise the majority of O&M revenues, followed by net Milorganite sales, the surplus applied from Additional details on the revenues by category may be found in the Sources of Fund section Operating Revenue by Category User Charge Billings 83.1% Milorganite Sales (Net) Surplus Applied 9.2% 8.7% Household Hazardous Waste Other Income Industrial Waste Pretreatment Interest Income Equipment Replacement Fund Applied User Charge Stabilization Fund Applied 1.3% 1.3% 1.1% 0.3% -0.3% -4.6% -20% 0% 20% 40% 60% 80% 100% On the expenditure side, the Technical Services Division accounts for 66 percent of the 2017 O&M Budget. The Technical Services Division includes the Veolia Water Milwaukee contract for oper ations and maintenance of the District and reclamation facilities Expenditures by Division Technical Services 66.3% Fringe Benefits Office of the Executive Director Community Outreach and Business Engagement Water Quality Protection Finance Planning, Research & Sustainability Legal Services Commission 10.3% 7.3% 6.6% 4.6% 2.9% 1.0% 0.8% 0.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 35

49 Operations and Maintenance Long-Range Forecast 2016 Adopted Budget 2017 Budget 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Revenues User Charge Billings 73,280,018 75,112,768 84,144,071 $88,314,890 90,480,814 $92,724,257 $95,054,093 Milorganite Sales (Net) 7,830,000 8,350,000 8,350,000 8,433,500 8,433,500 8,433,500 8,433,500 Interest Income 250, , , , , , ,753 Other Income 823,998 1,136, , , , , ,760 Household Hazardous Waste 1,258,892 1,195,937 1,172,546 1,184,272 1,196,114 1,208,075 1,220,156 Industrial Waste Pretreatment 956, , ,248 1,003,181 1,013,213 1,023,345 1,033,578 Total Operating Revenue $84,399,198 $87,028,800 $95,412,365 $99,706,018 $101,901,518 $104,174,834 $106,534,840 Reserves and Surplus Equipment Replacement Fund Applied (or Contribution) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) User Charge Stabilization Fund Applied (or Contribution) 1,000,000 (4,165,369) 1,275, ,000 1,000,000 1,700,000 2,400,000 Surplus or Deficit Applied 4,666,000 7,831,369 3,109,731 2,212,497 1,950,923 2,002,324 2,050,048 IWPP Stabilization Fund Applied Total Reserves and Surplus $5,366,000 $3,366,000 $4,084,731 $2,412,497 $2,650,923 $3,402,324 $4,150,048 Total Revenues $89,765,197 $90,394,800 $99,497,096 $102,118,516 $104,552,441 $107,577,157 $110,684,888 Expenditures Divisions Commission 281, , , , , , ,685 Office of the Executive Director 5,927,429 6,516,054 6,646,375 6,812,535 6,982,848 7,157,419 7,336,355 Legal Services 1,483,718 1,137,841 1,160,598 1,189,612 1,219,353 1,249,837 1,281,083 Finance 2,686,432 2,891,595 2,949,427 3,023,163 3,098,742 3,176,211 3,255,616 Technical Services 65,494,669 64,256,256 72,776,783 74,336,232 75,680,798 77,572,564 79,512,741 Planning, Research & Sustainability 2,479,944 2,740,508 2,795,318 2,865,201 2,936,831 3,010,252 3,085,508 Water Quality Protection 5,536,017 5,741,936 5,856,774 6,003,194 6,153,273 6,307,105 6,464,783 Community Outreach and Business Engagement 5,722,259 6,2927,383 6,382,530 6,542,093 6,705,646 6,873,287 7,045,119 Fringe Benefits 11,947,123 12,383,337 12,816,754 13,265,340 13,729,627 14,210,164 14,707,520 Charges to Capital (13,903,709) (14,011,808) (14,077,273) (14,166,037) (14,255,704) (14,346,291) (14,437,813) Net Division Expenditures 87,655,466 88,182,303 97,546, ,116, ,502, ,467, ,514,596 Unallocated Reserve 2,109,731 2,212,497 1,950,923 2,002,324 2,050,048 2,109,356 2,170,292 Total Expenditures 89,765,197 90,394,800 99,497, ,118, ,552, ,577, ,684,888 User Charge Billings Increase 2.5% 2.5% 12.0% 5.0% 2.5% 2.5% 2.5% Note, totals may not appear to add due to rounding. 36

50 Sources of Funds In 2017, the District s estimated revenue is $90.4 million compared to the 2016 budgeted level of $89.8 million. The $629,603 increase represents a 0.7 percent increase from the 2016 budget. The District s primary source of funds is user charge billings. The District also has other sources of funds for the O&M Budget: - Net sales of Milorganite fertilizer - Interest Income - Other Income - Cost recovery programs: Household Hazardous Waste and Industrial Waste Pretreatment Program - Reserves - Prior year s surplus Each source of funds is further explained in the following pages. The table below presents a summary of the sources of funds the District expects in the 2017 O&M Budget Funding Summary Revenues 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 Budget User Charge Billings $71,996,408 $73,280,018 $73,980,018 $75,112,768 $1,832, % Milorganite Sales (Net) 8,602,516 7,830,000 8,635,862 8,350, , % Interest Income 200, , , , % Other Income 1,126, , ,998 1,136, , % Household Hazardous Waste 1,018,370 1,258,892 1,147,186 1,195,937 (62,955) -5.0% Industrial Waste Pretreatment 932, , , ,414 27, % Total Operating Revenues $83,876,641 $84,399,197 $85,793,354 $87,028,800 $2,629, % Equipment Replacement Fund Applied (or Contribution) 0 (300,000) (300,000) (300,000) 0 0.0% User Charge Stabilization Fund Applied (or Contribution) 1,000,000 1,000,000 1,000,000 (4,165,369) (5,165,369) % Surplus or Deficit Applied 3,918,593 4,666,000 4,666,000 7,831,369 3,165, % Total Reserves and Surplus $4,918,593 $5,366,000 $5,366,000 $3,366,000 ($2,000,000) -37.3% Total Funding $88,795,234 $89,765,197 $91,159,354 $90,394,800 $629, % 37

51 User Charge Billings Source of Funds 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change From 2016 Budget User Charge Billings $71,996,408 $73,280,018 $73,980,018 $75,112,768 $1,832, % User charge billings are the primary source of revenue for the District s operating budget. The District bills each of the 28 municipalities within its service area based on waste strength, quantity, and number of connections of its users. The municipalities, in turn, directly bill their residential, commercial and industrial users. The municipalities are required to settle with the District within 45 days from the date the municipality receives the wholesale bill from the District regardless of collections. The District s user charge system has been approved by the Environmental Protection Agency and the Wisconsin Department of Natural Resources. Such approval is a condition for grants and loans from these agencies. In 2017, the District budget includes a 2.5 percent increase over the 2016 budgeted user charge billings, although overall expenditures are increasing only 0.7 percent, or $594,603, in the 2017 budget compared to The primary reason that user charge billings are increasing greater than expenditures is due to the year over year impact of reserves in the annual budget from 2016 to In the 2016 budget, the District applied $1 million in User Charge Stabilization Fund reserves. In 2017, a contribution of $4.2 million is budgeted to the User Charge Stabilization Fund along with a surplus of $7.8 million from This is a change between the two years of $5.2 million. Making the contribution to the User Charge Stabilization Fund in 2017 will allow the excess surplus from 2015 to be used in 2018 and 2019 when a significant expenditure increase is anticipated due to the extension agreement with Veolia Water Milwaukee that was approved by the District s Commission in June 2016 in 2018 and 2019 before leveling out in the years 2020 through Applying reserves allows the increase to user charge billings to be lowered in a given year, while contributing to those funds is in effect an expenditure and would require additional user charge billings. Please refer to the discussion on reserves in this Sources of Funds section for further information on the User Charge Stabilization Fund. $90.M User Charge Billings 2013 Actual Budget Total Revenue (in millions) $80.M $70.M $60.M $50.M $72.M $73.3M $75.1M $67.4M $67.9M How Rates Are Set Actual Budget Sewer user charge rates are developed annually as part of O&M Budget preparation. As the Executive Director s proposed O&M Budget is prepared, Finance staff determine proposed sewer user charge rates in accordance with District Rules and Regulations as described in the Cost Recovery Procedures Manual. The user charge billing system allocates the total user charge billings to users based on their usage of the conveyance system. This allocation is based on total wasteload received and four billing parameters: Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), billable flow, and connections. Over the last two decades, there has been a significant decline in total wasteload, largely due to the loss of industrial users and the increase in water conservation efforts by residential and industrial users. An Ad Hoc User Charge Committee meets to review the proposed user charge rates and recommends rates for adoption by the Commission. The District s Commission approves an O&M Budget in October and user charge rates in November, to be reflected in municipal billings for the following fiscal year, beginning in January. 38

52 Milorganite Sales (Net) Source of Funds 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change From 2016 Budget Milorganite Sales $8,602,516 $7,830,000 $8,635,862 $8,350,000 $520, % Milorganite is a premier organic fertilizer on the market offering a line of all-natural, pesticide-free products. Milorganite production is currently the most cost-effective solution for disposal of biosolids from the wastewater treatment process at the Jones Island and South Shore Water Reclamation Facilities. The Milorganite market consists of a professional class of customers, including golf courses around the country, and a retail class of customers, including popular big box and warehouse stores that sell to homeowners and gardeners. To address the needs of each market, Milorganite fertilizer comes in several particle size formulations, including Greens Grade and Classic, and is sold in a variety of packaging sizes to accommodate the needs of both professional golf courses and residential gardeners. In 2017, the budgeted net Milorganite revenue is $8.35 million. In 2017, the budgeted weighted-average net sales price per ton including discounts and agriculture application is $196.54, a decrease from $ in the 2016 Budget. The 2017 price per ton including product donated is $ which is an increase from $ in the 2016 Budget, largely due to an increased percentage of sales to retail markets. The actual average sale price may be higher or lower than the budgeted price depending on actual product sales. Sales in 2017 are estimated to be approximately 42,485, with 1,015 tons assumed for donations and agriculture land application tons. The following chart provides a historical perspective of production and sales tonnage of Milorganite. 55,000 Production and Sales Tonnage 50,000 45,000 Tons 40,000 35,000 30,000 25, Production (tons) Sales (tons) Budget 2016 Estimate 2017 Budget To dispose of product that does not meet specifications, or when the District has excess product, the District has entered into agreement with several agricultural distributors to place product in non-competitive markets. 39

53 Other Income Source of Funds 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change From 2016 Budget Other Income $1,126,569 $823,998 $823,998 $1,136,681 $312, % Other Income is budgeted at approximately $1,136,681 in the 2017 Budget. This is an increase of $312,683 or 37.9 percent from the 2016 budgeted level. The increase is partly due to an increase in lease revenue and partly due to an increase from Veolia Water Milwaukee contributions. Other Income includes the following sources of funds: District lease revenue, contributions from Veolia Water Milwaukee for Material Capital Repairs and Replacements, reimbursements from Veolia Water Milwaukee for laboratory services, gain or loss from sale of fixed assets, insurance premium refunds, claims and settlements, and miscellaneous. In 2017, the District anticipates leasing fourteen properties throughout the service area, generating approximately $343,000 in In 2017, the District estimates $700,000, an increase from $513,000 in 2016, in contributions from Veolia Water Milwaukee for certain purchases or repairs to machinery and equipment in accordance with the operating contract. Finally, the Central Laboratory provides analytical services to Veolia Water Milwaukee. In the 2017 budget, this revenue is estimated to be $102,000, similar to the anticipated 2016 level. Household Hazardous Waste Collection Program Source of Funds Household Hazardous Waste Collection Program 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change From 2016 Budget $1,018,370 $1,258,892 $1,147,186 $1,195,937 ($62,955) -5.0% The Household Hazardous Waste (HHW) collection program was created in 1996, in conjunction with the Intergovernmental Cooperation Council to fulfill the public need for proper household hazardous waste collection and disposal. Properly disposing of hazardous wastes through the program benefits both water quality and overall public health. The HHW Program is a cost-recovery program for District residents. Charges to participating communities for the Household Hazardous Waste program produce revenues. Charges for 2017 will be based on actual 2017 expenditures and billed to communities in spring of Program costs are determined by both the volume of waste collected and the type of waste, as more toxic substances are more expensive to dispose of. The following graph illustrates historical trends of the program. Total Program Cost (in thousands) $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Total Program Costs & Residential Unit Charge $3.65 $4.07 $3.86 $3.71 $3.25 $3.28 $3.29 Budget Estimate Budget $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Residential Unit Charge The 2017 Household Hazardous Waste program total revenue is projected to be $1,195,937, a decrease of 5.0 percent from the 2016 budgeted level. The decrease is primarily due to the District projecting to spend fewer staff hours on managing the program in The estimated cost per residential unit is $3.86 a 5.1 percent decrease from the 2016 budgeted level. 40

54 Industrial Waste Pretreatment Program Source of Funds 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change From 2016 Budget Industrial Waste Pretreatment Program $932,049 $956,290 $956,290 $983,414 $27, % The Industrial Waste Pretreatment Program (IWPP) protects the effluent wastewater and biosolids products by prohibiting or limiting the discharge of certain pollutants. The District s Wisconsin Pollutant Discharge Elimination System (WPDES) permit requires that the District implement the IWPP. The Department of Natural Resources originally approved the District s program in The District enforces both local limits which are self-imposed by the District, and federal standards, which are limits established for various categories of industry by the U.S. Environmental Protection Agency. The program also ensures that industrial users pay user charges in proportion to their use of the sewerage system. The IWPP is a cost recovery program, wherein revenues reflect actual expenditures. Three types of activities generate IWPP expenses: program administration, sampling and monitoring, and laboratory analysis. Program administration includes time spent by Industrial Waste Engineers developing policies and rules, drafting permits, inspecting facilities, analyzing regulatory and user charge data, taking enforcement action, providing technical assistance, and preparing reports. Sampling and monitoring costs include the cost of time spent by the staff in collecting data and monitoring pollutants. Laboratory analysis costs include the costs of testing the sample for its chemical make-up. The Cost Recovery Procedures Manual annually establishes industrial surcharges and fees for sample collection and analysis. These rates are used as a basis of making revenue estimates for laboratory services incurred as part of the Industrial Waste Pretreatment Program. The number and complexity of significant industrial users are the dominant factors affecting IWPP costs. As the local economy evolves away from large-scale manufacturing, both the number and complexity of significant industrial users decreases. As seen in the graph below, since 2009 the number of significant industries has held fairly constant. Number of Industries : Number of Industrial Users Year The following chart displays the IWPP revenue from 2011 to In the 2017 O&M Budget, IWPP revenue is estimated to increase 2.8 percent to $983,414. The revenue budgeted for 2017 is 3.3 percent below the actual revenue in The declining IWPP revenue is a reflection of the decrease in the number of industrial users and the increase of water quality initiatives implemented by the District and industries themselves. The decrease also reflects a decline in the number and complexity of enforcement actions required. 125 Program Revenue (in thousands) $1,400 $1,200 $1,000 $800 $600 $400 $200 $ : IWPP Program Revenue $1,017k $983k Budget Year 2016 Estimate 2017 Budget 41

55 Surplus Returned Source of Funds 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change From 2016 Budget Surplus Returned $3,918,593 $4,666,000 $4,666,000 $7,831,369 $3,165, % The Operations & Maintenance Budgets are set for a one-year period. In any given year, the actual expenditures and revenues likely will vary somewhat from the budgeted amounts. This variance could be due to work or project timing, expenditures that are deemed unnecessary during the year, unanticipated pricing changes, revenues that either exceed or fail to meet expectations, or an unused unallocated reserve. At the end of the year, the favorable and unfavorable variances are accumulated into a funding surplus or deficit. If there is a budget surplus, those funds are either carried forward by Commission action into the next budget year, or they are applied as a source of funds to a future budget year, as follows. In compliance with 40 CFR (b) for application of surplus/deficit, the District determines the surplus or deficit attributable to each sewer user charge billing parameter (Flow, BOD, TSS, Connections) at the end of each fiscal year. The surplus or deficit is applied to user charge billing rates in the budget two years after the fiscal year that created it, in compliance with federal and state regulations. In the 2017 budget, the District returns the 2015 surplus, or $7,831,369. The surplus is $3,165,369 more than that applied to the 2016 budget, resulting in a 67.8 percent increase over the 2016 budgeted level. Over half of the 2015 surplus is being contributed to the User Charge Stabilization Fund. Interest Income Source of Funds 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change From 2016 Budget Interest Income $200,729 $250,000 $250,000 $250,000 $0 0.0% Total Interest Income projected for the 2017 O&M Budget is $250,000, which represents no change from the 2016 budgeted level. An average interest rate of 0.5 percent on approximately $50 million in investments is projected for Currently, as the District s long-term investments mature, reinvestment opportunities are available at interest rates that are consistent with the low rates in the previous year. These low rates are a result of efforts by the Federal Reserve to help improve the economy. 42

56 Reserves The District has two reserves for its Operations and Maintenance Budget: the User Charge Stabilization Fund and the Equipment Replacement Fund. The use of reserves helps to reduce or mitigate volatility in the District s primary O&M revenue source, the user charge billings. The use of reserves is analyzed in each budget year. Moreover, there could be years in which the District needs to contribute to the reserve funds to ensure that they comply with policy. Equipment Replacement Fund Source of Funds 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change From 2016 Budget Equipment Replacement Fund Applied (or Contribution) $0 ($300,000) ($300,000) ($300,000) $0 0.0% The Equipment Replacement Fund (ERF) is a state-mandated reserve that is equal to 5 percent of the value of equipment owned by the District (Wisconsin Administrative Code, section NR (18)). The District periodically conducts a fixed asset study that reviews all of the machinery and equipment with a value of $25,000 or greater and a service life of between 10 and 20 years. The total value of machinery and equipment from this study set the initial net asset value of the equipment replacement fund. Each year, the value of assets within the ERF changes due to projects that are completed resulting in new assets that meet the criteria and therefore increase the ERF or existing assets are decommissioned that decrease the value of assets within the ERF. On January 1, 2016, the value of assets within the ERF is $290.2 million, and the required restricted fund balance is $14.5 million. For the 2016 budget, an increase to the net asset value was estimated and a $300,000 contribution budgeted. The District anticipates a $14.8 million balance at year-end The estimate for the value of assets within the ERF for January 1, 2017 is $302.2 million, and this estimate is based on the average of the last three years average annual change in asset value. The 2017 estimate of asset value results in an estimated required minimum balance of $15.1 million. In 2017, the District includes a $300,000 contribution to the ERF to remain in compliance with the 5 percent limit. Applying reserves allows the increase to user charge billings to be lowered in a given year, while contributing to those funds is in effect an expenditure and would require additional user charge billings. An evaluation of the ERF will be undertaken to determine whether reductions could be made to avoid future contributions. Equipment Replacement Fund Summary Equipment Replacement Fund Net Asset Value* $290,186,150 $302,186,160 Required Restricted Fund Balance (5% of NAV)* $14,509,308 $15,109,308 Beginning Restricted Fund Balance $14,509,308 $14,809,308 Withdrawal / (Contribution) ($300,000) ($300,000) Ending Restricted Fund Balance $14,809,308 $15,109,308 43

57 User Charge Stabilization Fund The District Commission established the User Charge Stabilization Fund in 1998 to help the District avoid large increases or decreases in the User Charge billings. Source of Funds 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change From 2016 Budget User Charge Stabilization Fund Applied (or Contribution) $1,000,000 $1,000,000 $1,000,000 ($4,165,369) ($5,165,369) % Commission policy requires that the fund balance be no less than 2.5 percent of the current year s revenues. The projected balance as of 1/1/2017 is $7.6 million and the expected balance as of 12/31/2017 is $11.8 million, both of which exceed the required minimum balance. Applying reserves allows the increase to user charge billings to be lowered in a given year, while contributing to those funds is in effect an expenditure and would require additional user charge billings. The 2015 budget ended with a significant surplus. $4.2 million of this surplus is being contributed to the User Charge Stabilization Fund for future years use. User Charge Stabilization Fund Summary Balance of Fund as of 1/1/2016 $8,647, Net Withdrawals ($1,000,000) 2016 Estimated Balance as of 12/31/2016 $7,647,000 Balance of Fund as of 1/1/2017 $7,647, Net Contributions $4,165,369 Anticipated Balance as of 12/31/2017 $11,812,369 Minimum Required per Commission Policy $2,258,775 Remaining Available Fund Balance $9,553,594 44

58 Commission The Commission is the governing body, and establishes and enforces District policies in compliance with statutory responsibility. The Commission directs and controls budgetary, administrative, procedural, operational, and informational support for the District. BACKGROUND AND OVERVIEW The Commission is comprised of 11 members: seven appointed by the Mayor of the City of Milwaukee, subject to Common Council confirmation; and four appointed by the MMSD Executive Council of the Intergovernmental Cooperation Council (ICC) which is comprised of elected officers of the cities and villages in the District other than the City of Milwaukee. From the City of Milwaukee, three are elected officials and each serve a one-year term. The other four members are citizen appointees from Milwaukee and each serve a three-year term. The four Commission members from the ICC include three elected officials and one citizen; all four ICC-appointed members serve a three-year term. No Commissioner may serve more than nine consecutive years. The Commission is charged with the responsibility of establishing and enforcing policies for the District. The Commission consists of two standing committees: Policy, Finance and Personnel Committee and the Operations Committee. Matters discussed by the committees include financial planning, budget recommendations, reporting and audits, personnel matters and labor relations, legal and legislation, public information policies, collection/treatment/disposal compliance, industrial development and pretreatment, and the award of contracts. Commission Operations Committee Policy, Finance, and Personnel Committee 45

59 COMMISSION DIVISION BUDGET SUMMARY AUTHORIZED POSITIONS 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget Commissioners Total % Change from 2016 Budget USES - OPERATING EXPENSES Commission 219, , , ,202 (47,380) -16.8% Gross Division Total $219,757 $281,582 $252,082 $234,202 ($47,380) -16.8% Charges to Capital % Net Division Total $219,757 $281,582 $252,082 $234,202 ($47,380) -16.8% USES BY EXPENDITURE TYPE Fixed Assets % Personal Services 118, , , , % Contractual Services 97, , , ,375 (45,900) -29.2% Materials & Supplies 3,292 5,100 3,000 3,620 (1,480) -29.0% Gross Division Total $219,757 $281,582 $252,082 $234,202 ($47,380) -16.8% Charges to Capital % Net Division Total $219,757 $281,582 $252,082 $234,202 ($47,380) -16.8% FIXED ASSETS The Division does not have any funding for fixed assets in PERSONAL SERVICES The $119,207 includes funding for the salaries for the 11 Commission members. CONTRACTUAL SERVICES The $111,375 in contractual services includes funding for Commissioners to travel to meetings, graphic printing services, publishing official notices, the District s annual financial audit, transcription services, and filming and recording Commission meetings. In 2017, the contract for the financial audit decreases by $45,900 in part because the 2016 budgeted level was increased for a new auditor contract. MATERIALS AND SUPPLIES The $3,620 in materials and supplies includes funding for Commissioners to be reimbursed for internet usage, as well as meeting and office supplies. CHARGES TO CAPITAL The Division does not anticipate charging any staff time to capital projects in

60 DIVISION HIGHLIGHTS The Commission awarded a ten-year contract extension to Veolia Water Milwaukee to operate the District s wastewater treatment system. An outside consultant helped determine the costs and benefits of keeping a private operator or taking back responsibility for operations and maintenance of the reclamation facilities, regional sewers, deep-tunnel system and the Milorganite fertilizer factory. The study concluded that the cost difference between the two options was not significant enough to make the decision based on cost alone. The Commission decided to extend the current contract for ten years beginning March 1, In 2016, the District received the Utility of the Future Today Award from a partnership of water sector organizations including the National Association of Clean Water Agencies, the Water Environment Federation, the Water Environment & Reuse Foundation, and the WateReuse Association. The Utility of the Future Today program recognizes the progress made by the utilities to implement innovative technologies and to champion a culture of change. A peer committee of utility leaders selected honorees from the public and private utilities of the U.S., Canada, and Denmark. These utilities demonstrated exceptional progress and performance in the treatment of wastewater and were selected based on how closely they adopted such Utility of the Future practices such as water reuse, watershed stewardship, community partnering and engagement, and nutrient recovery. Support for the Strategic Plan Collaborative Through formal meetings, the Commission hears requests from staff, individual residents and resident groups on a number of issues. They then must make decisions that best respond to the community s needs and support the District s vision. Some examples of customers the Commission serves include: residents through education, outreach and community engagement initiatives; regional partners through issue identification, problem-solving and decisionmaking; and District staff through supporting new initiatives, fiscal transparency, and maintaining the quality of the District s workforce. Accountable The Commission provides leadership that is responsive to the needs of the region in a fiscally sound manner. Resilient The Commission will set policy direction to ensure that the District can mitigate, respond to and recover from threats and disasters. 47

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62 Office of the Executive Director The Executive Director is appointed by the Milwaukee Metropolitan Sewerage District Commission and serves as the District s Chief Executive Officer. The Executive Director provides organizational leadership to implement Commission policies that ensure the District meets its customers needs in a cost-effective manner. SERVICES THE OFFICE OF THE EXECUTIVE DIRECTOR: Provides organizational leadership for the division and District. The cost center oversees general administration of District business. FACILITIES MANAGEMENT: Helps provide a clean and safe work environment. The cost center also manages the District s mail and Headquarters building s heating, ventilation, air conditioning, electrical services and plumbing. The cost center maintains the Headquarters buildings and grounds and focuses on environmentally-friendly, energy-efficient, sustainable, and cost-effective ways of operating the District s facilities. INFORMATION TECHNOLOGY SERVICES: Ensures data integrity, optimal network functionality, and provides hardware, software, and user support. The cost center also provides technological expertise to District staff. HUMAN RESOURCES: Manages employee benefits, compensation, labor relations, recruitment, affirmative action and diversity, unemployment and worker s compensation, work-study, organizational training and development, and other human resource policies and procedures. Commission Executive Director Kevin Shafer, P.E. Office of the Executive Director Kevin Shafer, P.E. Information Technology Services Greg O Hearn Human Resources Candace Richards Facilities Management Anna Kettlewell 49

63 OFFICE OF THE EXECUTIVE DIRECTOR DIVISION BUDGET SUMMARY AUTHORIZED POSITIONS 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget Management Non-represented Represented (7) Total USES - OPERATING EXPENSES % Change from 2016 Budget Executive Director 885, , , ,868 57, % Information Services 3,518,649 3,707,700 4,209,084 4,005, , % Human Resources 777, , , ,439 79, % Facilities Management 763, , ,665 1,118, , % Gross Division Total $5,945,194 $5,927,429 $6,375,930 $6,516,054 $588, % Charges to Capital (330,615) (96,360) (90,196) (100,106) (3,746) 3.9% Net Division Total $5,614,579 $5,831,069 $6,285,733 $6,415,948 $584, % USES BY EXPENDITURE TYPE Fixed Assets - 22, , ,000 94, % Personal Services 2,935,687 2,681,434 2,674,542 2,856, , % Contractual Services 2,571,145 2,845,111 2,995,353 3,192, , % Materials & Supplies 438, , , ,662 (27,772) -7.3% Gross Division Total $5,945,194 $5,927,429 $6,375,930 $6,516,054 $588, % Charges to Capital (330,615) (96,360) (90,196) (100,106) (3,746) 3.9% Net Division Total $5,614,579 $5,831,069 $6,285,733 $6,415,948 $584, % FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The $117,000 includes funding for the ITS group to buy a new Storage Array Network (SAN) for backup recovery purposes. PERSONAL SERVICES The $2,856,240 in Personal Services includes funding for salaries for the 29.5 full-time employees and the Human Resources work-study program. The Work Study program allows for college-aged students to spend 12 weeks during the summer learning about District work and the water industry. Personal Services also includes funding for District staff to receive tuition reimbursement for attending college courses in order to further their careers as well as funding for staff to attend off-site seminars and trainings. Off-site training for all District employees is centralized in and expensed to the Human Resources cost center. In 2017, the Personal Services budget increases by $174,806 partly to fund the new half-time Facilities Technician I Limited Term Employee position in the Facilities cost center, and partly due to a larger work study program in 2017, which includes more co-op students than the 2016 budget. CONTRACTUAL SERVICES The $3,192,152 in Contractual Services includes funding for services that are better performed by an outside consultant or expert rather than an in-house staff member, as well as mileage reimbursement for staff using their own vehicles, membership subscriptions and dues. In the Office of the Executive Director cost center, the contractual services budget includes funding for memberships to water industry groups. In the Information Technology Services cost center, the funding is available for the District s telephone services, software licenses and maintenance contracts, software consultants, and maintenance support. The Human Resources contractual services budget includes funding for a labor relations consultant, a benefits consultant, and a training and development consultant. The Facilities Management budget includes funding for professional electrical, plumbing, and HVAC work, snowplowing and landscaping, and after-hours cleaning services. The contractual services budget increases by $347,041 in 2017 from the 2016 level due largely in part to increases in software maintenance contracts, particularly the annual fee for the new contract management solution. 50

64 MATERIALS & SUPPLIES The materials and supplies account group includes cleaning supplies, tools, office supplies, and new software and hardware as well as upgrades. In the 2017 budget, the account group decreases by $27,772 because the Information Technology Services cost center s budget decreases by $67,000 due to a decrease in the number of tablets and new computers to be purchased. The decrease is partially offset by the Facilities cost center budget increasing in 2017 for purchasing additional new furniture. CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2017 budgeted level increases by $3,746, a decrease to the O&M Budget, from the 2016 budgeted level due to the additional co-op students in the work study program. DIVISION HIGHLIGHTS HUMAN RESOURCES In 2016, the Human Resources cost center focused on updating several administrative policies, employee work rules and the employee handbook as a result of the bargaining unit, AFSCME Local 366, choosing not to recertify. The changes focused removing references to represented employees and including language that identifies all employees as either non-represented or formerly represented employees. Also, Human Resources, in partnership with its compensation consultant, initiated a comprehensive salary market study of all District positions. Human Resources also introduced a new Commission policy, , Community Service Allowance Policy, effective January 1, 2017, to encourage District staff to support the Community through volunteer efforts within the District s service area. In 2016, the District continued to partner with Froedtert Hospital to offer health risk assessments to active employees : Number of Work Study Students The assessments compile data on District employees and help the cost center determine what type of wellness activities it should promote for the employees. Succession planning at the District 35 continues to be an ongoing process involving the 38 identification and replacement of key positions, assessment of future staffing needs, and leadership 25 development. 20 Human Resources manages the work study program. The program recruits talented students to gain hands-on experience at the District and learn about the water industry and work opportunities in the Milwaukee area. The program helps the District achieve its strategic goal of increasing resilience by developing the future workforce. Number of students FACILITIES During 2016, the Facilities cost center made many improvements throughout the Headquarters and Laboratory facilities. In an effort to use more environmentally-friendly practices, the cost center purchased a new floor scrubbing machine that has cut down on the use of chemicals in the building, and made repairs to the District s law sprinkling system to improve functionality and water use. The cost center also made efficiency improvements. For example, the cost center remodeled the Finance Division workspace to improve functionality in the Finance Division and improve a conference meeting space. Facilities staff implemented many office improvements throughout the buildings by replacing worn carpeting and flooring throughout the buildings, painting offices, and deep cleaning office spaces. The cost center also improved the courtyard between the two buildings and corrected concrete entry steps in order to meet Americans with Disabilities Act compliance. Finally, staff prepared a comprehensive, long-term office remodeling plan for the Headquarters and Laboratory buildings. The cost center also completed a rekeying project for the Facilities indoor and exterior doors in conjunction with remodeling projects. Year 51

65 INFORMATION TECHNOLOGY SERVICES In 2016, IT staff upgraded the District s SharePoint software to the 2016 version from the previously used 2010 version in order to take advantage of improved functionality. The District also upgraded the Microsoft Office suite to Office 365 allowing for enhanced functionality and accessibility. This upgrade includes moving Microsoft Exchange or servers and software offsite to managed Microsoft Office 365 services. IT worked on upgrading the Windows 7 operating system to Windows 10, providing for functionality enhancements and compatibility with other upgraded software. IT performed a major upgrade of the Lawson financial, payroll, procurement, and Human Resources system to keep the version in step with Lawson support. IT implemented mobile applications for field staff working on Diggers Hotline utility location tickets, enhancing staff efficiency. A significant challenge ITS is faced with is the management of server storage space for District applications. As changes to major end user software arise the subsequent server space must be adequately prepared and failure to do so could result in costly last minute server purchases. A graph depicting current rate of storage use growth is found to the right. Finally, IT staff assisted with several major software procurements including the contract management software. PERFORMANCE MEASURES Storage Required Projected Growth by Year STORAGE IN TB Goal 2015 Result 2016 Estimate 2017 Target Staff turnover 7% 4% 4% Training Expenditures Per Employee $ $ $ District staff diversity 18% 16% 20% Facilities are well maintained and ADA compliant 100% 100% 100% Software and hardware replacement schedules are updated annually Yes Yes Yes YEAR Annually evaluate how new software systems interact with existing software systems N/A Yes Yes 2017 Initiatives in Support of the Strategic Plan Lean and Efficient In order to addresses current and anticipated IT infrastructure, the IT cost center will develop and update policies and procedures for acquiring new software systems. Accountable The IT cost center will work with a number of different divisions to explore the District s opportunities to publish more data on the District s website. Resilient - The Human Resources cost center will continue to develop initiatives that help all District employees understand their role in achieving the District s mission. Human Resources will continue to enhance employee development, quality improvement, and performance appraisal systems. The Facilities cost center will continue to implement best practices to ensure the safety of District employees. 52

66 Legal Services The Legal Services Division was created by the Milwaukee Metropolitan Sewerage District Commission in The Division conducts all of the District s legal and record management business and provides specialized legal expertise in the District s major areas of operations, including environmental, construction and contract, government finance, municipal relations, and human resources. The purpose of the Legal Services Division is to provide legal and records management advice, strategy, and support to the Commission, Executive Director, and District staff to enable legally sound governmental and business decisions and their effective implementation. SERVICES Following is a brief description of the cost centers in the Legal Services Division. LEGAL SERVICES: The cost center provides on-going support to District operations by advising the Commission, Executive Director, and staff on programs and policies to ensure that District operations are consistent with legal requirements. The cost center also represents the District in all litigation and claims by or against the District, either as primary legal counsel or in overseeing outside legal counsel. Each matter is assigned to a specific staff attorney to assess possible District liability, preserve evidence, identify witnesses, and provide ongoing claim monitoring activities. During the risk identification process, the Legal Services cost center provides advice to the Commission and District management regarding the alternative courses of action. The Legal Services cost center also provides timely advice and opinions to support District business operations and to avoid legal problems. This includes legal review and input for water and air pollution permits, compliance reporting, planning reports, and contract drafting. RECORDS MANAGEMENT: The cost center provides information governance and comprehensive records management services for all District records in compliance with State statutes and District policies. This group has developed the Information Governance Plan and maintains the District s records retention schedule and manages updates to the records management program such that District records are maintained in a legally compliant and sustainable manner. Executive Director Kevin Shafer, P.E. Legal Services Susan Anthony Records Management John Wiesinger 53

67 LEGAL SERVICES DIVISION BUDGET SUMMARY AUTHORIZED POSITIONS 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget Management Non-represented Represented (3) (3) % Change from 2016 Budget Total USES - OPERATING EXPENSES Legal Services 896,543 1,190, , ,126 (333,222) -28.0% Records Management 296, , , ,715 (12,655) -4.3% Gross Division Total $1,192,728 $1,483,718 $1,037,089 $1,137,841 ($345,877) -23.3% Charges to Capital (283,704) (443,133) (253,690) (348,408) 94, % Net Division Total $909,024 $1,040,584 $783,399 $789,433 ($251,151) -24.1% USES BY EXPENDITURE TYPE Fixed Assets % Personal Services 849, , , ,236 4, % Contractual Services 288, , , ,225 (343,570) -59.0% Materials & Supplies 54,749 51,000 37,216 44,380 (6,620) -13.0% Gross Division Total $1,192,728 $1,483,718 $1,037,089 $1,137,841 ($345,877) -23.3% Charges to Capital (283,704) (443,133) (253,690) (348,408) 94, % Net Division Total $909,024 $1,040,584 $783,399 $789,433 ($251,151) -24.1% FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years and transportation equipment. The Legal Services Division budget does not have funding for any fixed assets. PERSONAL SERVICES The Personal Services account group includes authorization for 12 full-time employees; however, currently there are six employees in the Legal Services group and three employees in the Records Management group, so a total of 9 positions are funded. The Legal Services Division staffing increase between 2015 and 2016 is due to the reorganization that resulted in the Records Management function being placed in the Legal Services Division. CONTRACTUAL SERVICES The 2017 Division budget includes $239,225 for contractual services. The Records Management cost center contractual services include a $65,000 contract for storing and transporting physical records offsite. The Legal Services cost center budget includes $150,000 for outside counsel, experts, and lobbying and a reduced budgeted level based on recent years experience. The District relies upon these services when dealing with legal matters outside of the expertise of Division senior staff attorneys. MATERIALS AND SUPPLIES The $44,380 in materials and supplies includes books and publications for the attorneys as well as boxes for storing physical records. CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2017 budgeted level decreases by $94,725 from the 2016 budgeted level, an increase to the O&M budget, due to capital projects requiring fewer hours of legal review. 54

68 DIVISION HIGHLIGHTS LANDFILL GAS UTILIZATION PROJECT The landfill gas project became operational in 2013; during this start-up phase, the Legal Services cost center provided representation to recover certain delay costs associated with start-up issues in the turbines. In 2016 the Legal Services cost center assisted the District in the evaluation of a second landfill gas supplier, Waste Management. The use of landfill gas will provide substantial energy savings to the District. During 2016, the District, with advice and assistance from Legal Services attorneys, also reached an agreement with Advanced Disposal to settle claims regarding LFG quality and supply issues under the terms of that purchase agreement. TEN YEAR EXTENSION OF THE VEOLIA WATER OPERATIONS AND MAINTENANCE AGREEMENT THE Legal Services Division led the District s negotiating team to achieve an agreement with Veolia Water Milwaukee LLC to extend the O&M Agreement for an additional ten years beginning in March This Agreement was approved by the MMSD Commission during June 2016 and will provide continuity of service from Veolia Water under contract terms that protect the District from the risk of fluctuating operations and maintenance costs while maintaining high quality treatment. CHALLENGE TO WE ENERGIES PROPOSED RATE INCREASE The utilization of landfill gas and biogas at South Shore has reduced the District s reliance on purchased natural gas and electricity. This change in usage resulted in We Energies proposing a new stand by electric power charge applicable only to the District that would have substantially reduced the District s savings resulting from use of landfill gas and biogas by charging the District $1.0 to $1.5 million per year for power it would not use. During 2014, the Legal Services cost center, on behalf of the District, intervened in the We Energies rate review proceedings at the Wisconsin Public Service Commission and, in 2015, was successful in defeating this new charge, thus protecting the District s energy savings. Subsequent to the PSC ruling, We Energies has agreed to grandfather MMSD at its current rates for a period of 10 years, thus avoiding the significant stand by power charge. The Legal Services cost center continues to monitor proposed rate making by We Energies. LITIGATION The Legal Services cost center has reduced the number of litigation matters pending against the District by effectively settling (in 2015) the long-standing case brought by the Boston Store owners and by winning a summary judgment motion in the lawsuit brought by taxpayers in the City of Franklin, resulting in dismissal of the case. Claims for flooding resulting from storms in 2008 and 2010 were resolved with no damages paid by the District. Also, outside counsel representation has been limited to matters that are outside the areas of expertise of staff attorneys. The success of the Legal Services cost center in reducing litigation matters is demonstrated in its expenditure history. Many of the matters that were budgeted with expectations of high-cost representation were resolved before significant expenditures were incurred. $2,500,000 $2,300,000 $2,100,000 $1,900,000 $1,700,000 $1,500,000 $1,300,000 $1,100,000 $900,000 $700,000 $500,000 Legal Services Historical Net Budget vs. Actual Budget Actual (2016 Estimate) DISCHARGE PERMIT The Legal Services cost center advised the Commission during 2014 to file with the WDNR necessary modification requests to the WPDES discharge permit, and has negotiated those modifications which were issued in 2015, in order to maintain permit compliance while moving forward toward water quality improvement in the region. Currently, the District is in the process of applying for re-issuance of its discharge permit, which will involve negotiation with the WDNR of terms for a permit to take effect after the current permit expires on December 31,

69 30TH STREET INDUSTRIAL CORRIDOR PROJECT THE Legal Services cost center has provided ongoing legal advice concerning necessary real estate acquisition, drafting of intergovernmental cooperation agreements with the City of Milwaukee, and other legal issues in support of this important project. GREEN INFRASTURCTURE ACQUISITION AND FUNDING During 2016, Legal Services has provided legal advice to staff regarding requirements for the necessary acquisition of property interests in green infrastructure projects and has participated in the early stages of development of a funding plan needed to meet the stormwater retention goal of the District s Vision. RECORDS MANAGEMENT DURING 2016, the cost center focused on improvements to the electronic records software, OnBase, that allow for easier record archival by staff members. In addition, Records staff worked with Information Technology staff to properly dispose of electronic tapes that had met disposal criteria. Throughout 2016, the cost center continued to work towards implementation of the Information Governance Plan that was adopted in PERFORMANCE MEASURES Goal 2015 Result 2016 Estimate 2017 Target Settlements are resolved for amounts that do not exceed the District s exposure 100% 100% 100% Resolve outstanding claims as quickly and cost effectively as possible 100% 100% 100% Records requests are responded to in an timely fashion 100% 100% 100% 2017 Initiatives in Support of the Strategic Plan Lean and Efficient The Legal Services cost center will work with the Marketing and Milorganite group to provide guidance on any regulatory issues and Milorganite looks to expand its market presence. Accountable The Legal Services cost center will help review guidelines for providing open data or publicly available data structured in a way that enables the data to be fully discoverable and usable by end users. 56

70 Finance The District is committed to providing quality services in the most cost-effective manner. The Finance Division provides financial management and analysis necessary for efficient operations and prudent decision making. To that end, Finance staff are involved in major decisions the District undertakes by analyzing the cost and benefit of each option being considered. SERVICES Following are the services provided by the Finance Division. BUDGET PREPARATION AND ADMINISTRATION Finance prepares the Capital and Operations & Maintenance Budgets based on organizational goals. FINANCIAL PLANNING Finance prepares and manages forecasts of future years revenues and expenditures and analyzes the financial impact in both the short- and long-term. Forecasts address the known needs and changes and provide scenario analysis for various initiatives or programs. PERFORMANCE MANAGEMENT SYSTEM - Finance develops and maintains the District s organizational performance management system. Performance metrics are tied to the Strategic Plan as well as other performance indicators from core operations or budgeted initiatives. Goals are set annually, tracked throughout each year, and annual performance is reported to the Commission. TREASURY AND CASH MANAGEMENT Finance oversees all treasury and cash management activities and strategies to ensure the greatest rate of return allowable per statute as well as the lowest cost of transactions. DEBT MANAGEMENT Finance plans all General Obligation and Clean Water Fund Program loan debt issuances and administers related debt service payments. The Division also administers any special circumstance debt financing. BILLINGS, PAYROLL, ACCOUNTING, AND FINANCIAL REPORTING Finance administers the user charge billings system to assign charges to customers, as well as creates all billings for tax levy and non-member charges. The Division also manages payroll and accounting transactions including accounts payable, accounts receivable, inter-fund and general ledger. The Division maintains the financial reporting systems and prepares the annual financial report. GRANTS MANAGEMENT - Finance administers all grants and reimbursements to ensure properly documented compliance as well as timely receipt of funds. RISK MANAGEMENT Through its risk management program, the Finance Division manages the risks of accidental loss associated with property, liability and workers compensation exposures. Risk management includes safety, security and insurance coverage for all District construction and operations activities. REAL ESTATE Finance administers the District s real estate transactions including land acquisitions, facility leases, and easements for a variety of its projects. Executive Director Kevin Shafer, P.E. Finance Mark T. Kaminski, CPA 57

71 FINANCE DIVISION BUDGET SUMMARY AUTHORIZED POSITIONS 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget Management (1) Non-represented Represented (7) Total % Change from 2016 Budget USES - OPERATING EXPENSES Accounting 1,662, % Office of Management & Budget 223, % Finance - 2,686,432 2,688,226 2,891, , % Gross Division Total $1,885,656 $2,686,432 $2,688,226 $2,891,595 $205, % Charges to Capital (282,376) (301,011) (205,232) (331,537) (30,526) 10.1% Net Division Total $1,603,280 $2,385,421 $2,482,994 $2,560,059 $174, % USES BY EXPENDITURE TYPE Fixed Assets % Personal Services 1,279,409 1,434,772 1,461,234 1,570, , % Contractual Services 582,558 1,215,010 1,191,910 1,298,875 83, % Materials & Supplies 23,689 36,650 35,082 21,750 (14,900) -40.7% Gross Division Total $1,885,656 $2,686,432 $2,688,226 $2,891,595 $205, % Charges to Capital (282,376) (301,011) (205,232) (331,537) (30,526) 10.1% Net Division Total $1,603,280 $2,385,421 $2,482,994 $2,560,059 $174, % Note, prior to 2016, the Finance Division had two cost centers Accounting and Office of Management and Budget. Beginning in 2016, the cost centers combined into one. FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The Division does not have any funding for fixed assets in PERSONAL SERVICES The $1,570,970 in Personal Services includes funding for salaries for the 19 full-time employees. The $135,255 increase from the 2016 budgeted level is partly due to salary increases and partly due to the addition of one Safety Advisor. The Safety Advisor work duties were previously contracted out, and include ensuring contractors comply with District safety protocol. In 2017, one vacant Assistant Controller Limited Term Employee position is eliminated from the budget. CONTRACTUAL SERVICES The $1,298,875 in Contractual Services includes funding for services that are better performed by an outside consultant or expert rather than an in-house staff member, as well as mileage reimbursement for staff using their own vehicles, membership subscriptions and dues. In 2017, the contractual services increase by $83,866 over the 2016 budgeted level for insurance broker services and for a new workers compensation insurance third party administrator. MATERIALS & SUPPLIES The materials and supplies account group includes safety and medical supplies as well as office supplies. In the 2017 budget, the account group decreases by $14,900 due to a one-time purchase of security cameras in the 2016 budget. CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2017 budgeted level increases by $30,526, a decrease to the O&M Budget, from the 2016 budgeted level due to the additional Safety Advisor position in the division. The Safety Advisor will spend a majority of his or her time reviewing safety protocol on capital construction projects. 58

72 DIVISION HIGHLIGHTS The Finance Division implemented a number of efficiencies and cost-saving measures in For example, the Division completed early payoff of a State loan with the Wisconsin Economic Development Corporation (WEDC), saving District rate payers approximately $147,000. The State loan was interest free for five years, with interest beginning to accrue June 1, The Division also guided the District in renewing its expiring property, casualty, liability, and insurance policies; the new policies overall decrease approximately $187,000 from the 2015 level. The Finance Division also took on responsibility for Workers Compensation associated with internal employees, which was previously managed by Human Resources, in order to take advantage of synergies in managing existing Workers Compensation component of the Owner Controlled Insurance Program (OCIP). Additionally, the Finance Division completed a study to improve efficiency, effectiveness, and internal controls of the purchasing card or P-Card utilization. The Division also received final payment of a $5,582,000 grant from the State of Wisconsin for property acquisition and demolitions of homes purchased for the KK Flood Management project. In 2016, the Finance Division worked with Legal Services and the Technical Services division to negotiate a ten-year contract extension with Veolia Water Milwaukee for operations and maintenance. An outside consultant helped determine the costs and benefits of keeping a private operator or taking back responsibility for operations and maintenance of the reclamation facilities, regional sewers, deep-tunnel system and the Milorganite fertilizer factory. The study concluded that the cost difference between the two options was not significant enough to make the decision based on cost alone. The current contract will end February 28, 2018 and the new contract will begin March 1, In 2015, the Commission adopted the Strategic Plan that identifies goals, objectives and initiatives across all areas of the District. The Strategic Plan includes efforts for developing and reporting performance measures to assess progress in achieving the Strategic Plan objectives. These measures and targets will help the District set priorities to determine how resources are allocated and develop the operating and capital budgets necessary to improve services. Ultimately, these measures will be used by District staff to assess and improve work processes while monitoring overall performance. Furthermore, the Budget Office is working on displaying the metrics in a useful and meaningful way. The District s 2015 Comprehensive Annual Financial Report received a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for the 38 th consecutive year. Also, in 2016, the District s budget received the Government Finance Officers Association Distinguished Budget Presentation Award for the 16 th consecutive year. 59

73 PERFORMANCE MEASURES Goal 2015 Result 2016 Estimate 2017 Target Maintain the District s Bond Rating Fitch Ratings AAA AAA AAA Moody s Investors Service Aaa Aa1 Aa1 Standard & Poor s AA+ AA+ AA+ Adopt a balanced budget Yes Yes Yes Receive the GFOA Distinguished Budget Award Yes Yes Yes Receive the GFOA Certificate of Achievement for Excellence in Financial Reporting Yes Yes Yes Grant funding received $734,615 $752, % increase % of operating reserve that meets or exceeds level set by policy 100% 100% 100% # of significant internal control deficiencies or material weaknesses from internal audit Initiatives in Support of the Strategic Plan Lean and Efficient - In 2017, the Finance division will explore capital budget estimating process improvements in order to increase the accuracy of the estimates. Resilient The Finance Division will work towards achieving a structural budget balance for , will continue to achieve the District s long-range financing plan goals while incorporating 2050 Facilities Plan recommendations, and will minimize user charge billings and levy volatility. 60

74 Technical Services The mission of the Technical Services Division (TSD) is to protect the environment and promote public health and safety by providing for flood mitigation, wastewater conveyance, and wastewater treatment through managing the design and construction of capital projects. The Division also manages contracts to operate and maintain the District s watercourse, conveyance, landfill gas pipeline, and water reclamation facilities. SERVICES The Technical Services Division has primary responsibility for the development, implementation, and management of most of the District s capital improvement program. The Division provides oversight and management of the operations and maintenance contracts that operate and maintain the District s water reclamation facilities, conveyance system, watercourse system, and landfill gas pipeline. Specifically related to this objective are capital projects from the 2020 Facilities Plan, Veolia Water Milwaukee (VWM) contract, and Watercourse System Improvement Plans. Following is a brief description of the cost centers under the Technical Services Division. ENGINEERING SERVICES: Oversees design and engineering services of capital upgrades, including rehabilitation of existing and additions to District facilities. Most work is related to the water reclamation facilities, conveyance system, and watercourse system. In addition, this cost center manages all watercourse planning and maintenance contracts. OFFICE OF CONTRACT COMPLIANCE: Oversees contract operations of the District s wastewater reclamation facilities, conveyance system, and landfill gas pipeline. The cost center manages the operation and maintenance contract with VWM, the operation and maintenance contracts for the landfill gas pipeline, and the landfill gas supply contract. The cost center also works on power supply and energy management, including working with We Energies and purchasing natural gas hedges. CAPITAL PROGRAM SUPPORT: Manages the development and administration of the Division s Capital Improvement Program, including forecasting project costs and schedules throughout the District s six-year planning horizon and beyond. The cost center provides construction management and contract administration services for Capital and O&M funded contracts, and oversees the District s geographic and facilities information systems programs. Finally, the cost center protects underground District assets throughout the District s service area via participation in the Diggers Hotline one-call system and provides surveying services for a variety of District functions including capital projects, asset protection, real estate and GIS. Executive Director Kevin Shafer, P.E. Technical Services Michael Martin, P.E. Engineering Services Kevin Lyons, P.E. Office of Contract Compliance Pat Obenauf, P.E. Capital Program Support Rick Niederstadt, P.E. 61

75 TECHNICAL SERVICES DIVISION BUDGET SUMMARY AUTHORIZED POSITIONS 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget Management Non-represented Represented (31) Total (1) % Change from 2016 Budget USES - OPERATING EXPENSES Engineering Services 3,990,243 2,452,035 2,826,922 3,421, , % Capital Program Support 1,010,339 3,055,812 2,914,031 2,910,158 (145,654) -4.8% Office of Contract Compliance 57,587,969 59,986,822 57,683,239 57,924,999 (2,061,824) -3.4% Gross Division Total $62,588,551 $65,494,669 $63,424,192 $64,256,256 ($1,238,413) -1.9% Charges to Capital (6,413,508) (6,008,502) (6,046,210) (6,008,030) % Net Division Total $56,175,043 $59,486,168 $57,377,982 $58,248,226 ($1,237,942) -2.1% USES BY EXPENDITURE TYPE Fixed Assets 301, , , ,000 (110,400) -34.5% Personal Services 5,126,473 5,271,797 5,303,895 5,240,360 (31,437) -0.6% Contractual Services 57,102,862 59,848,522 57,648,321 58,625,096 (1,223,426) -2.0% Materials & Supplies 57,435 53,950 31, , , % Gross Division Total $62,588,551 $65,494,669 $63,424,192 $64,256,256 ($1,238,413) -1.9% Charges to Capital (6,413,508) (6,008,502) (6,046,210) (6,008,030) % Net Division Total $56,175,043 $59,486,168 $57,377,982 $58,248,226 ($1,237,942) -2.1% FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The Division includes funding for two vehicles, survey equipment and replacement equipment for the treatment plants in the 2017 budget. PERSONAL SERVICES The $5,240,360 in Personal Services includes funding for salaries for 64 of the authorized 72 full-time employees. The $31,437 decrease from the 2016 budgeted level is due to the transfer of one Engineering Aide position to the Planning, Research, & Sustainability Division to better align workload. The Capital Program Support cost center also reclassified one Lead Inspector to an Engineering Aide, eliminating the vacant Lead Inspector position. CONTRACTUAL SERVICES The $58,625,096 in Contractual Services includes funding for services that are better performed by an outside consultant or expert rather than an in-house staff member, as well as mileage reimbursement for staff using their own vehicles, membership subscriptions and dues. In the Office of Contract Compliance, the contractual services account class includes the operating contract with Veolia Water Milwaukee, totaling $42.7 million, as well as the utilities to operate the District s facilities. The District also uses contract services to repair structures, machinery, and equipment at the water reclamation facilities, on the conveyance system, and along the District s watercourse jurisdiction. In 2017, those services are budgeted at $4,537,000. Finally, the District uses contracted services for outside support such as GIS support, Diggers Hotline marking membership and after-hours support. MATERIALS & SUPPLIES This account group includes survey supplies, safety equipment, and office supplies. In 2017, the budget increases $126,850 for supplies for the Wet Weather Peak Flow Monitoring Program. CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2017 budgeted level decreases by $471, an increase to the O&M Budget, from the 2016 budgeted level based on the 2016 year-to-date experience and year-end projection. 62

76 DIVISION HIGHLIGHTS SUBSTANTIAL COMPLETION OF PROJECTS The Division substantially completed many projects in Several equipment replacement projects such as Return Activated Sludge Variable Frequency Drive Replacements and Wet Recycle Screw Replacements ensured continued successful Water Reclamation Facilities operation. The Division completed the Jones Island Site Settlement Project, which mitigated settlement risks of roadways, walkways, and critical buildings. The Conveyance Gate Rehabilitation project (Phase 2) was completed which included rehabilitation of nine gate systems at drop shaft sites and diversion chambers within the District s conveyance system. The Division also completed rehabilitating the Combined Sewer Overflow (CSO) facility to the Menomonee River near Hawley Road and completed the CSO Rehab-Hawley Road project in mid The watercourse group finished construction to remove approximately 2,600 linear feet of concrete channel and worked with ACOE to construct a more natural channel as part of the Phase II Menomonee River Stream Management project. The group also managed the project to daylight an enclosed stream containing Schoonmaker Creek. Finally, the watercourse group successfully completed the first contract of the 30 th Street Corridor East project which was for basin work including inlet and outlet structures as well as storm sewer improvements in the area. The Division completed repairing and reconstructing the wharf wall at the site of the Headquarters and Lab building. In addition, the Division made structural improvements to the foundation of the Milwaukee River Flushing Station. The Flushing Station s building integrity was at risk due to building settlement. The District scored well on the annual Wisconsin Department of Natural Resources Compliance Maintenance Annual Report (CMAR). The CMAR is a self-evaluation tool that evaluates the wastewater treatment system for problems or deficiencies; it evaluates the treatment system performance in different categories. Each water reclamation facility and associated conveyance system receives a score from 0 to 4, with 4 being the highest score. In 2015, the Jones Island Water Reclamation Facility scored a 4.0 and the South Shore Water Reclamation Facility scored a 4.0. This is the first time the District has perfect scores for both water reclamation facilities. CMAR Score Year Wastewater Reclamation Facility Jones Island South Shore Wastewater Captured & Treated The Capital Improvements Program includes upgrades to the water reclamation facilities and conveyance system that help the District capture and treat over 98 percent of the water that falls within the District s service area. 100% 96.2% 99.5% 99.9% 98.5% 99.5% 98.9% % Captured and Treated 80% 60% 40% 20% 0%

77 ENERGY Under the terms of the VWM contract to operate the reclamation facilities and conveyance systems, the District pays 75 percent of the actual energy costs while VWM pays the remaining 25 percent. In 2017, the energy budget totals $10.3 million of which the District is responsible for $7.5 million as reflected in the chart below. Total Diggers Hotline Tickets Assessed Division staff have continuously worked to maintain a high degree of accuracy and quick turnaround responses to Diggers Hotline requests while harnessing updated technologies Requests 30,000 25,000 20,000 15,000 10,000 5,000 24,142 18,607 20,499 22,002 19,557 18, Year PERFORMANCE MEASURES Goal 2015 Result 2016 Estimate 2017 Target All high priority capital projects implemented on schedule 100% 100% 100% Receive NACWA Platinum Award Yes Yes Yes Capital project total project costs stay within budget 100% 100% 100% O&M expenditures stay within budget 100% 100% 100% 2017 Initiatives in Support of the Strategic Plan Lean and Efficient The Division will partner with the Finance Division to improve the capital budget estimating process to keep the actual expenditures closer to the budgeted level. Accountable- The Division will implement new procedures for storing capital project information, and increase the use of the District s intranet, SharePoint. Also in 2017 the Division will lead the capital program software implementation effort that involves District staff from all areas. 64

78 Planning, Research & Sustainability The Division conducts long-range, system-level facilities planning; analyzes potential alternatives for improving the District s capital projects, existing facilities, programs and operating procedures; manages District assets to provide defined levels of service at the lowest life-cycle cost while maintaining an acceptable level of risk; conducts water quality research and other research that benefits and advances decision-making; and works to move the District toward sustainability in all facets of the District s operations by optimizing the use of renewable, recyclable, eco-friendly materials, and reducing energy consumption and emissions from fossil fuels. SERVICES PLANNING The planning group leads the District s Facilities Planning effort. The Facilities Plan is generally developed on a ten-year cycle, and provides a foundation for the District s Capital Improvement Program. The development of a facilities plan requires ongoing data collection and analysis. The projects associated with this effort address plan development, outreach, data gathering, system modeling, and data analysis issues. ASSET MANAGEMENT The District s Asset Management Program is a core component in planning s efforts to manage infrastructure, facilities, equipment and other assets to achieve organizational objectives. Asset management aims to: use assets to provide defined levels of service; maintain a level of risk acceptable to the organization; and achieve service level and risk objectives at the lowest lifecycle cost. Asset management involves analysis of business processes, data, information systems and organizational resources in the areas of planning, design, construction, operations, and maintenance. RESEARCH The research group works with industry partners and universities to conduct sound research to achieve maximum operating efficiencies, reduce the District s carbon footprint and energy consumption, identify renewable energy opportunities, implement new, more efficient technologies, and mitigate threats to current District operations. SUSTAINABILITY In addition to meeting regulatory requirements, the District is committed to implementing sustainable practices that have a positive impact on the environment. Since 2010, the Planning, Research & Sustainability Division has led the District s efforts to achieve sustainability in all facets of the District s operations by optimizing the use of renewable, recyclable, and eco-friendly materials, and reducing energy consumption and emissions from fossil fuels. Executive Director Kevin Shafer, P.E. Planning, Research & Sustainability Karen Sands, AICP 65

79 PLANNING, RESEARCH & SUSTAINABILITY DIVISION BUDGET SUMMARY AUTHORIZED POSITIONS 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget Management Non-represented Represented (1) Total % Change from 2016 Budget USES - OPERATING EXPENSES Planning, Research and Sustainability 1,972,001 2,479,944 2,237,262 2,740, , % Gross Division Total $1,972,001 $2,479,944 $2,237,262 $2,740,508 $260, % Charges to Capital (1,633,407) (1,658,747) (1,664,099) (1,769,682) (110,934) 6.7% Net Division Total $338,594 $821,197 $573,163 $970,826 $149, % USES BY EXPENDITURE TYPE Fixed Assets % Personal Services 1,421,390 1,562,170 1,601,443 1,823, , % Contractual Services 536, , , ,769 13, % Materials & Supplies 14,096 34,900 17,983 19,750 (15,150) -43.4% Gross Division Total $1,972,001 $2,479,944 $2,237,262 $2,740,508 $260, % Charges to Capital (1,633,407) (1,658,747) (1,664,099) (1,769,682) (110,934) 6.7% Net Division Total $338,594 $821,197 $573,163 $970,826 $149, % FIXED ASSETS The fixed asset account type includes transportation equipment, and machinery and other equipment with a cost for individual units of $5,000 or more and a useful life of three or more years. The PRS Division budget does not include any funding for fixed assets. PERSONAL SERVICES The $1,823,989 includes salaries and wages for 23 full-time employees. In mid-2016, the Division added one Project Manager position to help with the green infrastructure workload. In the 2017 Budget, one Engineering Aide, who was previously authorized and funded in the Capital Program Support cost center, transferred to the Planning, Research and Sustainability Division. The Division also created a new position, the Project Manager PPI/I, to help with the District s PPI/I work. Also in the 2017 Budget, the Division created a new position, a Green Infrastructure Neighborhood Outreach position to help work with local neighborhood initiatives. CONTRACTUAL SERVICES In 2017, contractual services decreases by $13,895 from the 2016 budgeted level due to better estimates on actual spending for green infrastructure initiatives. The $896,769 in contractual services includes funding for implementing green infrastructure projects, asset management planning projects, and design services for more energy efficient lighting on District campuses. Contractual Services also includes funding for staff travel, memberships, and certifications. MATERIALS AND SUPPLIES The 2017 budget for PRS includes $19,750 for tools and supplies for the FreshCoast summer intern program and asset tags for identifying equipment assets. The decrease of $15,150 from the 2016 level is due to a one-time large purchase of tools and supplies in 2016 that is not needed in CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2017 budgeted level increases by $110,934 from the 2016 budgeted level, a decrease to the O&M budget, due to the additional staff in the Division. 66

80 DIVISION HIGHLIGHTS GREEN INFRASTRUCTURE The Division awarded over $640,000 in its 2016 Green Infrastructure Partnership Program. The District provides incentive partnership funding to increase green infrastructure implementation and innovation within its service area. The ongoing program helps to provide the District with information related to green infrastructure effectiveness, costs, and maintenance and to meet a discharge permit requirement to add green infrastructure to the regional system. Several of the awards received signature series status to projects that have an enhanced ability to reach out to larger regional audiences and may catalyze the acceptance and widespread use of green infrastructure within the region. The Division also developed plans and standard specifications along with a sizing tool for different green infrastructure types to simplify implementing green infrastructure in the region. Also, through a joint funding initiative, the Fund for Lake Michigan and MMSD each contributed $125,000 toward green infrastructure projects at parks, playgrounds, schools, and open spaces within the Transform Milwaukee area within Milwaukee, Oak Creek, and St. Francis. Finally, the Division awarded $250,000 in funding reimbursement contracts to public and non-profit agencies overseeing green infrastructure projects that will be completed by In 2016, the District also received $380,000 in grant funding over a two-year period from the Great Lakes Restoration Initiative to conduct a neighborhood green infrastructure outreach and installation program in the Menomonee and Kinnickinnic River watersheds. The program will educate residents about the impacts of stormwater as the District will partner with community organizations to install green infrastructure on residential properties and in community spaces. NATIONAL GREEN INFRASTRUCTURE CERTIFICATION PROGRAM In 2016, the Division partnered with the Water Environment Federation (WEF) to launch the National Green Infrastructure Certification Program, a training program for green infrastructure construction, inspection, and maintenance workers. The District s pilot program included over 30 hours of classroom and hands-on training for local un- and under-employed residents. Training local residents in green infrastructure construction and maintenance helps provide a pipeline of workers for maintaining green infrastructure and increases the long-term success of local green infrastructure. The District will continue to provide training in ASSET MANAGEMENT The Division completed a rebuild of the Asset Management software system in 2016 to incorporate the asset management planning process being used under the Facilities Plan. The rebuild will allow the software structure to directly correlate with the Asset Management Plans being developed, which will improve efficiencies in connecting information and developing reporting to support performance and condition assessment, risk identification, project development and prioritization, and financial planning. The software is also being developed as a web application to allow improved access to information from any location. The Asset Management team monitors over 36,000 assets at the treatment plants and along the conveyance system Location Conveyance JI WRF SS WRF Interplant Pipeline - 5,000 10,000 15,000 20,000 Number of Assets PLANNING The Division completed assigning controlling critical elevations for each branch and criticality section within the MMSD conveyance system. Critical elevations are identified as the connection that will first be affected by sanitary flows in the District s sewer conveyance system. The Division has also started delineating areas draining to each point of connection between the municipal sewers and the District sewers. These are called connectionsheds of which there are more than 2,300 active connections to the MIS. 67

81 PRIVATE PROPERTY INFILTRATION AND INFLOW The District allocated $40 million to the Private Property Infiltration and Inflow (PPI/I) Reduction Program through 2016 including available stormwater best management practices (SBMP) funding. The PPI/I program is more than half complete from a budgetary perspective. The District conducted PPI/I Summit 2.0 as a regional day-long workshop for the municipalities to share lessons learned and to help chart the future of the program. Twenty-five of the 28 municipalities are participating in the program and rehabilitation has been completed at over 6,000 properties. With the anticipated lag in program activity due to the necessary up-front planning and outreach efforts, municipalities have committed to spending $23.5 million of the available $40.6 million to-date, with work plans continuing to be received on a monthly basis. INTEGRATED REGIONAL STORMWATER MANAGEMENT PROGRAM AND REGULATIONS The District completed stormwater management planning for the 30th Street Industrial Corridor (Corridor) under the integrated regional stormwater management program. The planning effort took a green approach to developing solutions to chronic urban stormwater flooding in the Corridor and transitioned to final design of the first stormwater flooding reduction project, the North Corridor stormwater basins. The District started construction on the stormwater basins, and plans to complete two of the three basins in Also, related to stormwater and District regulations, the District notified municipal staff that all Chapter 13 required plans must use the most recent NOAA Atlas 14 rainfall data. The District updated the MMSD Chapter 13 Guidance Manual that includes the NOAA Atlas 14 requirements accordingly and posted them to the MMSD website. TOTAL MAXIMUM DAILY LOADS (TMDLs) The District completed draft third-party TMDLs that will become a significant next step in improving the region s water quality. The effort included collaboration and leadership from WDNR, EPA, SEWRPC, and MMSD, with significant stakeholder input through SWWT. The District plans to support others implementing the TMDLs in 2017 and beyond that, will guide water quality improvement efforts for the entire region. FACILITIES PLAN The Division continued progress on MMSD s first-ever Facilities Plan based on asset management principles. This plan is likely the first large-scale water reclamation facilities plan to be based on asset management principles; it will be an industry-leading document that may influence future regulatory requirements for facilities planning. The 2050 Facilities Plan is developing five Asset Management Plans (AMPs) for the five identified asset systems: Conveyance and Storage System, Water Reclamation Facilities and Biosolids Handling, Watercourse and Flood Management, Green Infrastructure, and Administrative Facilities. These AMPs are long-term plans that outline the management strategies for each asset system and the necessary investments required to provide a defined level of service at an acceptable level of risk, in the most cost-effective way. In 2016, the Division made significant progress on the Plan, including making significant progress toward completing six of the nine steps in the asset management planning process. When completed, AMPs will be living documents that are updated with current information on asset performance and condition, risk, future demand for services, revisions to regulatory requirements, and changes in organizational objectives. The AMPs will improve the District s ability to provide continuous planning using current information. The Division is working with all relevant MMSD divisions to allow for input into the process to assure successful long-term implementation of asset management principles. RESEARCH The Research group looks for ways to improve the District's operations by identifying new or different processes or equipment that could be used and by finding the most cost-effective ways to meet current and future environmental regulations. The District has also formed valuable collaborations with universities to bring up-to-date knowledge about wastewater treatment processes into District operations. The Research group explores the dynamic interactions of social and natural systems to make informed decisions in allocating District resources. WORKING SOILS MMSD s new Working Soils Program received financial support through the USDA s Natural Resources Conservation Service Regional Conservation Partnership Program. The allocation of $1.5 million over five years is intended to help farmers invest in conservation practices within the Milwaukee River Watershed. Three of the 20 participating organizations that make up the Milwaukee River Watershed Conservation Partnership plan to use $1 million of the award to purchase agricultural conservation easements in coordination with MMSD s Working Soils Program to permanently protect hydric soils within the Milwaukee River watershed and its floodplains. 68

82 In 2013, the Commission adopted a Regional Green Infrastructure Plan documenting steps the District should take to meet the 2035 Vision goal of capturing the first 0.5 inch of rainfall on impervious surfaces, the equivalent of 740 million gallons of stormwater storage. The Plan identifies types and quantities of green infrastructure needed to achieve the 2035 Vision rainfall capture goals. The Plan includes five overarching recommendations as well as specific action items and timelines. Below are the five recommendation categories. Fund Incentive Programs Rebates or Credits Funding Programs Expand Collaboration Develop Training Plan Regional Partnerships TMDL and Permit Requirements Develop Programs and Implement Projects Standardize Learn, Share, Adapt Implement Watershedspecific goals Standard Key Performance Indicators Implement & Monitor Visible GI Universal Solutions to Impediments + Incentives Update Regulations to Require GI Work with State on Plumbing Regulations FreshCoast740.com Website Improvements Enable GI Sharing Monitor GI and add to FreshCoast740.com Refine Costs Steering Committee Develop and Update Educational Materials Develop Regional GI Standards Develop Consistent Impervious Area Data Staffing Needs Incentive Funding Programs GI O&M Standards Incorporate Smartphone Technology Policy for Funding Expand Green Roofs, Rain Garden, and Rain Barrel Programs Develop MOUs with Key GI Collaborators Create, Update and Promote Key Resources Develop Regional GI Center Develop Internal GI Evaluation Standards Review Every 5 years Develop Technical Staff Capacity for Trees, Porous, Soil, Native Landscaping Develop Warehouse and CIP Screening Tool The Regional Green Infrastructure Plan also includes timelines for each of the action items, as seen on the following page. The first five years after the adoption of the Plan are heavily focused on planning, with the following years emphasizing implementation and evaluation. In 2017, the fourth year after the Plan s adoption, the Planning, Research and Sustainability division budgeted for the following initiatives: Review municipality Capital Improvement Plans Researching GI winter performance for GI opportunities Stormwater trees Standardize plans and specifications, Phase 2 Water harvesting and reuse Municipal GI Plans Neighborhood outreach Street sweeper evaluation Implementing the O&M Business Plan Green Solutions capital program Regional GI Service Center, a GI Center for Consolidated funding for green infrastructure Excellence programs including the GI Partnership Program, Green Schools, Green Roofs, Parks, Playgrounds, Schools and Open Spaces Great Lakes Restoration Initiative grant for neighborhood GI 69

83 PERFORMANCE MEASURES Goal Planning Efficient and timely review of sanitary sewer and stormwater plans as provided for in MMSD Rules. Stormwater plan review within 10 days of first submittals, 20 days for resubmittals (% completed) 2015 Result 2016 Estimate 2017 Target 100% 100% 100% Sewer plan review within 60 days (% completed) 100% 100% 100% 2050 Facilities Plan Identify desired service levels. Define performance measures, establish targets, and assess current performance. Identify likely failure modes and timelines Develop alternatives to meet service levels Completed March 2016 December 2016 December 2016 December 2016 Optimize capital and O&M investments April 2017 Identify recommended alternatives Identify District data, technology, and knowledge management improvements Asset Management Develop service element specific tasks and budgets to address data gaps that do not conform to defined asset data standards. Develop District level of service categories and performance indicators to track achievement of organizational goals under the 2050 Facilities Plan Develop asset hierarchy and class Standard Operating Procedures for WRF and conveyance equipment assets Create a risk evaluation and project prioritization scoring system that is tied to organizational objectives Re-build asset data management system to incorporate updated hierarchy and class Standard Operating Procedures Incorporate the ability to track assets by project and link organizational risk register items with assets and projects within the asset data management system Final verification of asset inventory for 90% of WRF assets and completion of 90% of Standard Operating Procedures required primary data fields Prioritize 2050 Facilities Plan (FP) recommended investments following the risk methodology and project prioritization scoring system developed under the 2050FP scope Completed June 2015 Completed June 2015 Completed December 2015 Completed January 2016 Completed April 2016 August 2017 December 2017 February 2017 December 2017 December

84 2017 Initiatives in Support of the Strategic Plan Collaborative In 2017, the newly created Neighborhood Outreach Coordinator in the Sustainability group will help the Division increase collaboration with community groups to promote the benefits of green infrastructure. The Sustainability group will also continue to manage the Green Infrastructure Partnership Program and elements that will be combined within such as the Signature Series program and the Green Roofs program. The incentive partnership programs help to form mutually beneficial partnerships to generate quantitative data when possible on the effectiveness of green infrastructure in managing stormwater runoff in the District s service area and qualitative data on the implementation and feasibility of various green infrastructure practices. Resilient - In 2017, the Asset Management group will continue to develop Asset Management Plans that will evaluate the overall capability of asset systems to achieve the necessary services the District provides to stakeholders. The plans will identify areas at risk of not achieving identified service goals and develop strategies to mitigate risks and accomplish goals. The District s 2050 Facilities Plan project includes evaluation of the District s conveyance, storage, and treatment systems. The conveyance and storage analyses will require use of the District s comprehensive conveyance system model. The District s flow model is used to calculate how much flow is getting into the District s system. Modeling the system allows the District to: analyze large quantities of data quickly and efficiently; and examine various system conditions and alternatives, or what if scenarios. Models can also be used for planning, design, overflow reporting, and to demonstrate the benefits of projects. 71

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86 Water Quality Protection The Division monitors point and non-point source pollution, conveyance system performance, and water quality in Lake Michigan and local rivers. This Division also provides laboratory services to meet the needs of the District. The Division contains five functional groups: Central Laboratory, Conveyance System Monitoring, Field Monitoring, Industrial Waste Pretreatment, and Freshwater Resources Monitoring. SERVICES The Division has two cost centers, Industrial Waste, Freshwater Resources, and Conveyance System Monitoring and the Central Laboratory. Following is a brief description of the functions of the two cost centers. CENTRAL LABORATORY: The laboratory provides quality testing services to meet the District s needs for environmental, product and process testing. The Lab supports the District s permit under the Wisconsin Pollution Discharge Elimination Systems (WPDES), the Industrial Waste Pretreatment Program (IWPP), Freshwater Resources Monitoring, Planning, Milorganite marketing, plant operations and District projects. The laboratory is accredited to perform regulatory environmental compliance testing and is the only municipal laboratory in the state to have achieved accreditations under the National Environmental Laboratory Accreditation Program (NELAP). The laboratory also holds certification from the Wisconsin Department of Natural Resources and the Wisconsin Department of Agriculture, Trade and Consumer Protection. CONVEYANCE SYSTEM MONITORING: The District has over 300 various sensors, gauges and meters that are temporarily or permanently installed throughout the District to measure levels, flows, rain, toxic gases and a variety of other parameters. The Conveyance System Monitoring Group is responsible for analyzing and reporting the data as well as regulatory reporting of conveyance and groundwater data.this group is also responsible for retrieval and quality review of monitoring data from the water reclamation treatment facilities as well as the conveyance system for internal and external customers. FIELD MONITORING: This group supports the District s need for sample collection, field measurements and flow monitoring in the conveyance system and industrial settings. Their duties include calibration and maintenance of select monitoring equipment. INDUSTRIAL WASTE PRETREATMENT: This group is responsible for implementation and enforcement of the point source pollution control standards through the mandated Industrial Waste Pretreatment and Mercury Reduction Programs. They work primarily with industries; however, for mercury reduction, the engineers also work with dental offices, schools, and health care facilities. This group is also responsible for the administration of the user charge verification and billing activities. FRESHWATER RESOURCES MONITORING: This group makes field measurements and collects surface water samples from nearly 100 locations throughout the Milwaukee area watersheds. They are responsible for the preparation of regulatory and program specific reports regarding this data. The water quality data are used to assess the impact of the conveyance system, treatment plant operations and District projects on local waterways. Executive Director Kevin Shafer, P.E. Water Quality Protection Sharon Mertens Industrial Waste, Freshwater Resources & Conveyance System Monitoring Sharon Mertens 73 Central Laboratory Alfredo Sotomayor

87 WATER QUALITY PROTECTION DIVISION BUDGET SUMMARY AUTHORIZED POSITIONS 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget Management Non-represented Represented (46) Total % Change from 2016 Budget USES - OPERATING EXPENSES Research & Central Laboratory 2,043,389 2,195,189 2,136,226 2,240,369 45, % Industrial Waste & Conveyance Monitoring 3,384,646 3,340,827 3,366,553 3,501, , % Gross Division Total $5,428,035 $5,536,017 $5,502,778 $5,741,936 $205, % Charges to Capital (1,706,691) (1,696,107) (1,635,756) (1,735,247) (39,140) 2.3% Net Division Total $3,721,344 $3,839,909 $3,867,023 $4,006,689 $166, % USES BY EXPENDITURE TYPE Fixed Assets 112, , ,360 78,500 (67,860) -46.4% Personal Services 4,210,540 4,198,008 4,255,000 4,339, , % Contractual Services 492, , , , , % Materials & Supplies 611, , , ,296 14, % Gross Division Total $5,428,035 $5,536,017 $5,502,778 $5,741,936 $205, % Charges to Capital (1,706,691) (1,696,107) (1,635,756) (1,735,247) (39,140) 2.3% Net Division Total $3,721,344 $3,839,909 $3,867,023 $4,006,689 $166, % FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The 2017 budget includes $40,000 for the purchase of one vehicle, $10,000 for a replacement power washer, and $28,500 for the purchase a mini mill, muffle furnace, and a sample receiving refrigerator for the Laboratory. PERSONAL SERVICES The $4,339,241 in Personal Services includes salaries for the 61 full-time employees. The increase of $141,234 is for salary increases and the addition of one Administrative Assistant position to the Industrial Waste, Freshwater Resources, and Conveyance System Monitoring cost center. The Administrative Assistant position is a new position in the 2017 budget. CONTRACTUAL SERVICES The $644,898 in Contractual Services includes funding for the Industrial Waste, Freshwater Resources, and Conveyance System Monitoring cost center to operate and maintain the District s river skimmer. The account group also includes funding for outside consultants to provide corrective maintenance and repair service on the District s groundwater wells and water quality monitoring stations on an as needed basis. This account group also includes funding for an outside consultant to perform lab tests that are beyond the capacity of the District s lab. Both cost centers budgeted funds for travel, memberships, and certifications within the Contractual Services accounts. MATERIALS & SUPPLIES The Division s Materials & Supplies budget is $679,296 in percent of this is for the purchase of chemicals and supplies for the Laboratory. The remaining funds are for the purchase of equipment for the Industrial Waste Pretreatment Program, rain gauges, H2S monitoring, water quality monitoring, lab analysis, and portable flow monitoring programs. CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The increase of $39,140, a decrease to the O&M budget, reflects an increase in monitoring and lab testing requests as part of capital projects. 74

88 DIVISION HIGHLIGHTS RIVER SKIMMER PROGRAM The District s river skimmer helps remove trash and debris from the surface of the area s rivers and harbor near downtown. In 2016, the skimmer operated on the water for 126 days, removing 1,487 yards of debris in addition to many dead trees of various sizes. The skimmer crew is largely made up of trainees from the Milwaukee Christian Center. TECHNOLOGY EVALUATION The Freshwater Resources Monitoring group upgraded the existing sonde technology used to capture in-situ measurements in surface water with EXO sondes. The EXO sondes utilize smart technology which not only reduces staff time and chemical consumption but is a platform for new and improved sensors. This year, the group has also been evaluating the use of an fdom (fluorescent dissolved organic matter) sensor which has the potential to improve the District s ability to locate sources of pollution. IWPP STREAMLINING IWPP Staff have been working with local industries to implement the Federal Streamlining Regulations which were included in the District s amended Chapter 11 Discharge Regulations in Streamlining allows for reduced monitoring for compliant Significant Industrial Users and enables the District to focus its compliance efforts on areas of concern at regulated facilities, saving time and money for both the District and its customers. IMPROVED EFFICIENCIES Through a cooperative agreement with a local instrument manufacturer, the laboratory is testing an automated metals sample preparation and digestion system. The new unit delivers reagents safely and frees analysts from hands-on treatment of samples. The laboratory s new nitrogen analyzer uses less gas, resulting in lower costs. IMPROVED CONVEYANCE MONITORING Field and Conveyance Systems Monitoring staff are supporting Technical Services staff in the planning and implementation of projects to upgrade the meters in the inline storage system (ISS) approach channel and junction chamber level instrumentation replacement project. The new placement and technology that this project provides will improve our estimations of the flows into the ISS and ability to manage the tunnel as well as provide safer access to these areas for field maintenance activities. CONTINOUS WATER QUALITY MONITORING EVALUATION IWC staff, along with local stakeholders, will be conducting an evaluation of the stations in the continuous water quality program. The evaluation will analyze the number and locations of stations in the area, as noted in the map on the right, to determine the best size and scope of the program to produce the highest value-added data. Current District Continuous Water Quality Monitoring Evaluation Stations 75

89 PERFORMANCE MEASURES Goal 2015 Result 2016 Estimate 2017 Target Requests for District data responded to in 24 hours; for equipment 5 business days 100% 100% 100% Compliance with DNR reporting requirements for complete and timely submittals. 100% 100% 100% Related permit data are subjected to an internal review within the constraints of permit deadlines, including the investigation of outlier data. Data are reviewed on a timely basis under Quality Assurance & Quality Control standards. Laboratory services meet customer-defined expectations and produce data that are scientifically valid, defensible and of known and documented quality, as determined by the Laboratory maintaining the required laboratory certifications: NELAC, WDNR and WDATCP 100% 100% 100% 100% 100% 100% 100% 100% 100% Deliverables meet customer-driven turnaround time targets. 95% 95% 95% Deliverables meet regulatory-driven turnaround time targets including the following reports: WPDES CSO/SSO, Milorganite 100% 100% 100% 2017 Initiatives in Support of the Strategic Plan Collaborative The Division will work with a local workforce development group to train a crew for the Skimmer. Lean and Efficient The Laboratory cost center will continue to test Milorganite samples as the Marketing and Milorganite group looks to expand its market presence and explore alternative product specifications. 76

90 Community Outreach & Business Engagement The Community Outreach and Business Engagement division is responsible for providing a host of oversight and support functions aimed at maximizing the use of District resources, while adhering to statutory, Commission, and administrative policies in carrying out District business. Community Outreach and Business Engagement provides graphics support, marketing of Milorganite, public information and outreach, and procurement services. SERVICES The Community Outreach and Business Engagement Division develops and maintains strategically effective relationships with a broad range of publics, including customers, stakeholders, governments, news and social media, youth education, related organizations and employees. Following is a brief description of the cost centers under the Community Outreach & Business Engagement division. PROCUREMENT AND SUPPLIER DEVELOPMENT: Serves as the contracting authority of the District. The cost center conducts open, fair, and timely procurement processes founded upon the best practices in public purchasing. Additionally, the cost center is responsible for managing the Small, Women, Minority, and Veteran-owned Business Enterprises (SWMBE) program, the Workforce and Business Development Resource program, and the District fleet. PUBLIC INFORMATION, INTERGOVERNMENTAL AFFAIRS, AND EDUCATIONAL OUTREACH: Creates and distributes timely, accurate and relevant information to the public and other audiences. The cost center also provides graphics design and production services, including electronic presentations, art, photography, and graphical layout. Finally, the cost center manages the Rain Barrel program and the Household Hazardous Waste Collection Program, which help minimize stormwater pollution. MARKETING AND MILORGANITE : Manages the Milorganite program through coordination of its sales and marketing activities in an increasingly competitive fertilizer market. Executive Director Kevin Shafer, P.E. Community Outreach and Business Engagement Jeff Spence Procurement and Supplier Development Charlotte Tisdale Public Information, Intergovernmental Affairs, and Educational Outreach Jeff Spence Marketing & Milorganite Tisa Overman 77

91 COMMUNITY OUTREACH & BUSINESS ENGAGEMENT DIVISION BUDGET SUMMARY AUTHORIZED POSITIONS 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget Management Non-represented Represented (6) Total USES - OPERATING EXPENSES % Change from 2016 Budget Procurement and Supplier Development 1,602, , , , , % Public Information / Intergovernmental Affairs / Educational Outreach - 2,066,726 1,985,409 2,206, , % Marketing & Milorganite 3,392,665 3,137,045 3,579,580 3,412, , % Graphics Reproduction 163, % Gross Division Total $5,158,625 $5,722,259 $6,168,033 $6,292, , % Charges to Capital (312,414) (453,390) (416,962) (458,623) (5,232) 1.2% Net Division Total $4,846,211 $5,268,869 $5,751,071 $5,833,760 $564, % USES BY EXPENDITURE TYPE Fixed Assets 33,915-37, % Personal Services 1,202,414 1,515,732 1,623,984 1,707, , % Contractual Services 3,221,135 3,522,179 3,734,658 3,890, , % Materials & Supplies 701, , , ,537 10, % Gross Division Total $5,158,625 $5,722,259 $6,168,033 $6,292,383 $570, % Charges to Capital (312,414) (453,390) (416,962) (458,623) (5,232) 1.2% Net Division Total $4,846,211 $5,268,869 $5,751,071 $5,833,760 $564, % NOTE, previous to the 2016 Budget, Graphics was its own cost center. In the 2016 budget, the cost center joined the Public Information / Intergovernmental Affairs / Educational Outreach cost center. FIXED ASSETS The fixed asset account type includes machinery and equipment with a cost for individual units of $5,000 or more and has a useful life of three or more years; it also includes transportation equipment. The Division does not have any funding for fixed assets in PERSONAL SERVICES The $1,707,580 in Personal Services includes funding for salaries for the 22 full-time employees. The $191,848 increase from the 2016 budgeted level is partly due to salary increases and partly due to funding the Procurement and Supplier Development Manager position, which was authorized but unfunded in the 2016 budget. For succession planning purposes within the Marketing and Milorganite cost center, a Sales and Marketing Manager- Limited Term Employee position is funded for six months in CONTRACTUAL SERVICES The $3,890,265 in Contractual Services includes funding for services that are better performed by an outside consultant or expert rather than an in-house staff member, as well as mileage reimbursement for staff using their own vehicles, membership subscriptions and dues. The Household Hazardous Waste Collection Program and the Rain Barrel program are both coordinated through the Division and the contract services to administer both programs are budgeted in the Division. In 2017, the contractual services increase by $368,086 over the 2016 budgeted level for a number of reasons. New in 2017, the Division is introducing a Rain Ready pilot program to help homeowners reduce the risk of flooding. The 2017 budget also includes a $50,000 increase over the 2016 budgeted level for K-12 educational outreach programing. In 2017, the Public Information, Intergovernmental Affairs, and Educational Outreach cost center will focus on increasing the number of participants who attend watershed training by sponsoring additional school buses to transport local students. In the Marketing and Milorganite cost center, the contract services for the offsite packaging contract increases by $181,500 over the 2016 budgeted level due to increased demand for retail product. 78

92 MATERIALS & SUPPLIES The materials and supplies account group includes printing supplies for the Public Information, Intergovernmental Affairs, and Educational Outreach cost center as well as general office supplies for the other cost centers. The 2017 budgeted level increases by 1.5 percent from the 2016 budgeted level due to the Marketing and Milorganite cost center s increase in the packaging supplies budget. CHARGES TO CAPITAL Charges to capital reflect adjustments to cost center operating expenses, including indirect charges for work performed for capital projects and programs. The 2017 budgeted level increases $5,232 over the 2016 budgeted level, a decrease to the O&M budget, partly due to the funding of the Procurement and Supplier Development Manager position. DIVISION HIGHLIGHTS In 2016, the Communications group partnered with the Planning, Resources and Sustainability division to award monthly Green Luminaries awards. Recipients of the award are titled Green Luminaries who ultimately help protect our rivers and Lake Michigan by adapting practices that harvest rainfall for other uses or mimic nature by draining it into the ground to reduce water pollution. The Communications group also ran a successful Household Hazardous Waste Collection Program. New in 2016, the District partnered with Goodwill Industries to host a joint Household Hazardous Waste and gently used items collection. In 2016, the program is projected to collect and properly dispose of over 1 million pounds of waste. In 2016 and 2017, the District will partner with the City of Milwaukee to increase access to safe medication disposal. The Drug Mail Back Program will utilize free, tamper-proof mail back envelopes that will be made available to residents at ten local CVS Pharmacy locations in Milwaukee and Cudahy, at the District s Headquarters building, and in Milwaukee and Cudahy police department precincts, as part of a two-year pilot program. Under the program, residents will use envelopes pre-addressed to their local police department (Milwaukee or Cudahy) to mail back unwanted or unused prescription drugs, reducing the chance for the drugs to be abused or misused, and preventing improper disposal methods that might otherwise harm our waterways or landfills. Outreach: MMSD will partner with local organizations to send 5,530 students to water quality courses in 2017 Program Title Jones Island/River Passport Site River Passport Watersheds and Me Testing the Waters River Connections ,000 1,500 Number of Students In 2016, the Educational Outreach group continued developing student programs to enhance and facilitate the education of students in the District s service area. The Educational Outreach group collaborated with local environmental nongovernmental organizations to increase the number of students who could attend their watershed-based programing. The Educational Outreach group also continued the Speakers Bureau connecting District professional engineers, scientists, environmentalists, and technicians to community groups to speak about wastewater treatment and other clean water issues. In 2017, the Outreach group will focus its efforts on increasing the number of local K-12 students attending watershed education programs. By partnering with existing programs, the District s financial support will increase the capacity of the programs to transport and host students. 79

93 In order to help engage the community, the Educational Outreach group helped coordinate the annual Doors Open Milwaukee open house, which allows community members to tour one of the District s treatment plants and enjoy demonstrations of different aspects of the District s clean water work. In 2016, 1,735 residents toured the Jones Island Water Reclamation Facility as part of Doors Open. The Marketing and Milorganite cost center had a number or successes in Despite numerous equipment issues mid-year, retail sales surpassed expectations. Net revenue in the first quarter came close to record levels set back in Staff continue to carefully manage inventory levels to better position the District s supply to meet increasing demand. A number of research projects also concluded in 2016 regarding nutrient levels and desired effectiveness of the product that will lead to possible marketing changes for the future of Milorganite. Revenue & Retail Sales The Milorganite retail sales have far outpaced bulk and professional sales. As a result, the District has had record revenues. Revenue $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ Year YE Proj Revenue Retail Sales Tons The Procurement and Supplier Development cost center continued to manage the Workforce Development Training and Resource Program and provided procurement opportunities to minority-owned, women-owned, and small-business enterprises, thereby contributing to the economic health and vitality of the region. The Workforce Development Training and Resource Program increases contracting opportunities for the District s customers, resulting in greater job availability and business growth for the local business community. Bringing new certified firms into the pool of companies doing business with the District also enhances the District s competitive-bidding process. The cost center also evaluated its business processes including its purchasing card program and emerging business tracking processes in order to optimize business operations. The Procurement and Supplier Development cost center manages the District s fleet. The District promotes hybrid and right-sized vehicles as part of the District s vehicle replacement schedule to help reduce the District s carbon footprint and increase energy efficiency. Alternative fuels offer a variety of economic and environmental benefits, but it takes planning and preparation to make sure the fuels, infrastructure, and vehicles suit the purpose. In 2017, the District will evaluate adopting a formal alternative fuel purchasing policy. As seen in the graph below, the District s current Administrative Policy offers guidelines for vehicle replacement. While all of the vehicles are owned by the District, a number of the vehicles are operated by the contract operator, Veolia Water Milwaukee. Age and Mileage of MMSD and VWM Vehicles 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - Tons 250, ,000 MMSD Administrative Policy suggests replacing vehicles after seven years Vehicle Mileage 150, ,000 MMSD Administrative Policy suggests replacing vehicles after 85,000 miles 50, Veolia Milwaukee MMSD Vehicle Age 80

94 PERFORMANCE MEASURES Goal Measure 2015 Result 2016 Estimate 2017 Target Foster local economic development and spend twenty percent of District procurement with Small, Women, and Minority-owned business enterprises Small business enterprise participation Women-owned business enterprise participation Minority-owned business enterprise participation 2.6% 5% 5% 4.1% 2% 2% 20.6% 13% 13% Improve external and internal coordination and communication Create a consolidated division for outreach Create Communications Plan Expand the Speakers Bureau Program Outreach and engagement Increase Milorganite sales to minimize user charge billings Number of events by type Academia Conferences Partnership Events Presentations Community Events Regional Events Increase net revenue $8.6M $8.6M $8.3M Increase tons sold 39,418 43,243 42,485 Increase average dollar value of sale per ton $ $ $ Initiatives in Support of the Strategic Plan Collaborative In 2017, the Public Information, Intergovernmental Affairs, and Educational Outreach cost center will partner with local economic development organizations to clarify and quantify the District s impact on the local economy. The Procurement and Supplier Development cost center will evaluate areas of need for the future workforce and tailor its programs to help meet those needs. The Procurement and Supplier Development cost center will also expand its Green Infrastructure training program in 2017 in an effort to enhance opportunities for economic development in the District service area. The Public Information, Intergovernmental Affairs, and Educational Outreach cost center will continue to explore online tools and other options to increase public engagement and feedback on District programs and issues. The cost center will also continue to conduct external presentations that highlight District services and key initiatives through speaker s bureaus and other presentations. Lean and Efficient In 2017, the Marketing and Milorganite cost center will explore ways to increase revenue. The Procurement and Supplier Development cost center will work to optimize its business operations and explore electronic request for proposals processes. Accountable In 2017, the Public Information, Intergovernmental Affairs, and Educational Outreach cost center will help evaluate the District s use of open data to increase transparency and access to District data on the website. 81

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96 Other Expenditures Fringe Benefits The fringe benefits accounts cover the cost of providing insurance benefits to active employees including medical, dental, vision, life, and disability insurance, unemployment and workers compensation, Social Security and Medicare, as well as the City of Milwaukee s Employee Retirement System contributions. Retiree benefits funded through the fringe benefit account include health and life insurance Actual 2016 Adopted Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 Budget Retirement System Contribution 1,512,480 1,532,962 1,371,662 1,461,696 (71,266) -4.6% Group Health Insurance 3,073,633 3,200,000 2,783,289 3,300, , % Group Life Insurance 178, , , ,000 9, % Worker's Compensation Insurance 210, , , ,000 (50,000) -25.0% Social Security 1,255,904 1,327,784 1,262,778 1,271,641 (56,142) -4.2% Unemployment Compensation Insurance 1,408 30,000 2,002 10,000 (20,000) -66.7% Group Dental Insurance 168, , , , % Disability Insurance 36,673 40,000 39,564 40, % Active Employee Subtotal 6,437,952 6,696,729 5,973,291 6,608,337 (88,391) -1.3% Group Health Insurance - Retiree 4,988,350 5,100,000 5,708,839 5,600, , % Group Life Insurance - Retiree 135, , , ,000 24, % Retiree Subtotal 5,124,158 5,250,396 5,857,463 5,775, , % Fringe Benefit Total $11,562,110 $11,947,124 $11,830,753 $12,383,337 $436, % RETIREMENT SYSTEM CONTRIBUTION The District is a member agency of the City of Milwaukee Employee s Retirement System (CMERS). CMERS is funded through two methods: employer contributions and member (employee) contributions. In 2013, CMERS adopted policy for the employer contributions to create a budget stabilization method of funding. The change requires that employers make contributions to the system for a five-year period based on a set percent of payroll regardless of any individual year s funding ratio, versus doing an annual review of funding status compared to funding thresholds as was done in the past. This allows predictability for budgeting for all agencies participating in the retirement system. At the end of the five-year period, a review will be done to determine the next five year-period s funding percent requirements. Currently, the annual percent is 8.47 percent of payroll, and this will remain in place through In addition to the employer contribution, District staff make member contributions through payroll deductions. For all staff hired before 1/1/2014, the deduction is 5.5 percent of payroll. For staff hired on or after 1/1/2014, the deduction is 4 percent; the change relates to plan design changes adopted by CMERS beginning 1/1/2014. HEALTH CARE The District is self-funded for active and some retiree health care. The cost of health care is offset by active and some retiree contributions. In order to protect the District from volatile expenditures related to catastrophic claims, the District subscribes to a stop loss policy that takes effect after $150,000 has been paid in claims for a single member. Since 2005, the District has averaged just over two members reaching the stop loss threshold each year. Due to the high percentage of retirees covered and the average age of the population covered under the plan, in 2017, the District will subscribe to additional stop loss coverage. The additional coverage allows the insurance company to set an individual-specific deductible at a higher level for one or more individuals based on significant expected claim costs in the upcoming year. 83

97 Active Employees The 2017 budgeted level is budgeted $100,000 greater than the 2016 budget level after considering the 2015 actual expenditures and the 2016 year-end projection. In the 2017 Budget, the District includes an increase to the employee s premium equivalent contribution for health care, which will decrease the amount the District pays per active employee. Beginning in 2017, employees with the District s single coverage plan will contribute $85 per month towards their health insurance and employees with the family coverage plan will contribute $235 per month towards their health insurance. The District will continue to offer employees a $25 per month incentive reduction to premium contributions for participating in an annual health risk assessment. Retirees The District funds its retiree healthcare obligation on a pay as you go basis. The 2017 budgeted level is 9.8 percent higher than the 2016 budgeted level after considering the past three year actual experience and the 2016 yearend projection. OTHER FRINGE BENEFITS In 2017, workers compensation insurance decreases 25 percent and unemployment compensation decreases 66.7 percent, both to reflect the actual past experience of the last three years and the 2016 year-end projection. Life insurance is budgeted based off of the premium the District pays on both active employee salaries and retiree salaries. The 2017 Budget assumes a higher premium rate than 2016; therefore, life insurance for both active employees and retirees increases in WELLNESS COMMITTEE Rising health care costs have prompted many organizations to look for new ways to lower expenses. One way to lower costs is to improve the health of the District s workers. Healthy people cost less, are more productive, and contribute more to the District s performance. Workplace wellness programs offer ways to help people get healthy and stay healthy. The Wellness Committee helps individuals practice healthy lifestyles and change unhealthy habits to reduce their risks of developing high-cost health problems. The goal of a workplace wellness program is to encourage employees and their families to adopt and practice healthy lifestyles to improve their physical and mental well-being. The goal is achieved by making the work environment a place where: Healthy behaviors are promoted, encouraged and supported Employees have easy access to programs to help them make better lifestyle choices Employees have the opportunity to practice healthy lifestyle behaviors The Wellness Committee provides healthy snacks and informational displays to help employees practice healthy habits. 84

98 Charges to Capital Charges to capital reflect adjustments to cost center operating expenses, including indirect charges and laboratory charges for work performed for capital projects and facilities planning purposes, and expenditures under the Veolia Water Milwaukee operating contract that relate to the Capital Improvement Program. These accounts are designed to offset operating expenses and appropriately transfer the expenses. In 2017, charges to capital increase 0.8 percent from the 2016 level Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 Budget Direct Charges to Capital (4,055,709) (3,894,250) (3,816,621) (3,999,097) (104,847) 2.7% Indirect Charges to Capital (8,799,401) (8,586,834) (8,304,595) (8,622,200) (35,366) 0.4% Charges to Capital - Veolia (840,160) (951,000) (857,781) (918,888) 32, % Charges to Capital Other (519,188) (471,623) (549,624) (471,623) - 0.0% Charges to Capital - Total ($14,214,458) ($13,903,707) ($13,528,621) ($14,011,808) ($108,101) 0.8% DIRECT CHARGES TO CAPITAL From 2016 to 2017, direct charges to capital increase by 2.7 percent. Direct charges relate to District labor hours associated with work on capital projects. INDIRECT CHARGES TO CAPITAL The District s indirect rate assigns costs chargeable to capital projects and allocates indirect costs on the basis of direct salaries and wages. Indirect costs are costs that are not identified specifically with a particular unit process or final cost objective, including administrative support costs and fringe benefits. The final capital projects indirect cost rate is audited each year by the District s outside auditor and a carry-forward adjustment is made for any surplus or deficit of funds recovered from the indirect cost rate. CHARGES TO CAPITAL - VEOLIA In 2017, Veolia will continue to work on a number of District projects and charge its staff time to the Capital Budget. As such, the budgeted Charges to Capital - Veolia are slightly lower than the 2016 level. CHARGES TO CAPITAL - OTHER These costs include lab analyses for capital projects. The District projects a similar workload in 2017 from the 2016 level. Unallocated Reserve The Unallocated Reserve fund provides a reserve for unanticipated or increased expenses that may arise during the year. The District s Commission must authorize the use of funds from the Unallocated Reserve. Once approved, funds are then transferred from the Unallocated Reserve to specific cost center line item accounts rather than being expended directly Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 Budget Budgeted Unallocated Reserve $0 $2,109,731 $0 $2,212,497 $102, % *The 2016 estimate reflects the amount that has been transferred into Divisions. Actual expenditures are presented in the Divisions in all other expenditure charts. The 2017 budgeted level is approximately 2.5 percent of net division expenditures, complying with policy requiring the Unallocated Reserve to be budgeted between 2.0 percent and 3.5 percent of net division expenditures. The 2017 Unallocated Reserve includes the District s funding for salary adjustments that will be transferred to cost centers once approved. 85

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100 Milwaukee Metropolitan Sewerage District 260 West Seeboth Street Milwaukee WI Date Adopted: October 24, 2016 Adopting the Capital Budget for the 2017 Fiscal Year RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the Executive Director s 2017 Proposed Capital Budget, setting forth: Total Project Cost estimates for 210 capital projects totaling $1,169,819,755; Anticipated revenues and available funds of the District for capital purposes of $120,853,000 and the anticipated capital expenditures of the District of $219,233,000 resulting in a net local share of $98,380,000 for the fiscal year ending December 31, 2017; and The Six-year Long-range Financing Plan, including $619,723,000 in project expenditures and $705,306,000 in debt service expenditures for a combined total of $1,325,030,000 in capital expenditures from 2017 through The capital expenditures are expected to be funded from $652,549,000 in tax levies; $189,950,000 in non-member billings; $270,000,000 in District-issued General Obligation bonds and notes; $9,699,000 in federal, state aid and grants; $191,848,000 in state loans; $6,338,000 in interest and other income; and $4,645,000 in available funds on hand for a combined total of $1,325,030,000 is hereby adopted. I, Anna Kettlewell, Commission Secretary of the Milwaukee Metropolitan Sewerage District, do hereby certify that the above is a true and correct copy of Resolution No , adopted by the Milwaukee Metropolitan Sewerage Commission at a meeting held on 10/24/

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102 Capital Budget The Capital Budget funds the District s investment in long-term assets supporting the District s mission to cost-effectively protect the quality of the region s water resources. Capital Improvement Program and the Long-Range Financing Plan Expenditures funded through the Capital Budget are typically for multi-year projects; therefore, planning is a critical facet of the District s capital budgeting process. As such, the District prepares a Capital Improvement Program (CIP) to ensure that the District appropriately plans for future capital needs. The CIP includes all known projects and identifies their start and end-dates by phase. As new projects are identified each year, they are included in the CIP. Depending on priorities and financial constraints, projects in the CIP may be advanced or delayed to meet objectives. Projects included in the CIP are primarily identified through the District facilities plans, the Central Metropolitan Interceptor Sewer improvement program, watercourse and flood management, and water reclamation facility upgrades. These are described below FACILITIES PLAN ADAPTIVE IMPLEMENTATION SCHEDULE In 2007, the District completed a ten-year facilities plan to address future population, land use, and wastewater asset needs within the District s service area, using the watershed approach, to identify capital improvements necessary for wastewater, conveyance, treatment, and watercourse and flood management needs through The adaptive plan process allows for revised recommendations should greater growth than anticipated occur. WATERCOURSE AND FLOOD MANAGEMENT There are six watersheds within the District s service area: the Kinnickinnic River, Lake Michigan Tributary Drainage, the Menomonee River, the Milwaukee River, Oak Creek, and the Root River. The District has discretionary authority to perform flood mitigation on these waterways. This work includes rehabilitation and removal of concrete, deepening and widening of channels for flood management purposes, and construction of detention basins, pumping stations, and levees. 89

103 ASSET MANAGEMENT AND ANNUAL REQUESTS Each year as new issues are identified by the District, new projects may be added to the CIP. COST REIMBURSEMENT CAPITAL PROGRAMS The District administers several capital programs that provide funding for municipal work that benefits the District s system, some of which include municipal cost reimbursement programs. Projects in the CIP reflect current cost and scope estimates as of a point in time in the individual project s life cycle. The current cost estimate for individual projects is expressed in the budget-year dollars. Long-Range Financing Plan The long-range financing plan approved by the Commission identifies the level of funding from each source for capital expenditures for the period 2017 through The District s long-range financing plan uses projections that are preliminary and may change. The District believes that it has identified the major capital projects expected to be required to comply with current statutes and regulations applicable to the District and the services it provides and further believes that, in the absence of significant changes to these statutes and regulations, the current projections will be sufficient to allow the District to meet its mandates and fulfill its statutory requirements. The following objectives are the cornerstone of the District s long-range financing plan: 25 percent average cash financing of project expenditures over the six-year financing plan Outstanding debt no more than 2.5 percent of equalized property value Consistency with the implementation of current approved facility plan The 2017 long-range financing plan estimates $619,723,000 in project expenditures and $705,306,000 in debt service expenditures for a combined total of $1,325,030,000 in capital expenditures from 2017 through Revenues/Funding The main sources of revenue for the capital program are the tax levy and ad valorem based billings to non-member communities. The 2017 Capital Budget includes a tax levy increase of 2.50 percent as compared to a 4.0 percent increase projected in the long-range financing plan in the 2016 Capital Budget. In addition, the District receives funding through low-interest Clean Water Fund Program (CWFP) loans and issues its own general obligation bonds to finance capital expenditures. In 2017, debt financing provides 51.9 percent of overall funding of capital project expenditures. Other sources of funds include federal and state aid, interest income, and the use of available funds on hand. The property tax rate for the 2017 Capital Budget is $1.75 per thousand dollars of equalized valuation. The 2017 tax rate reflects District and nonmember equalized value increases are 2.14 percent and 2.7 percent, respectively, from the prior year. Equalized values for District and nonmember communities are projected to increase 3 percent for the remaining years in the six-year plan. For further detail on the District s capital revenues, please see the Capital Sources of Funds section Capital Budget Expenditures/Disbursements The District has four capital expenditure accounts: Water Reclamation Facilities, Conveyance Facilities, Watercourse and Flood Management, and Other Projects and Programs. In the 2017 Capital Budget, Water Reclamation Facilities and Conveyance Facilities comprise 20 percent and 5 percent, respectively, of the budget. Watercourse and Flood Management projects total 5 percent of expenditures, and Other Projects and Programs total 11 percent of expenditures. The largest portion of the District s capital disbursement in the six-year plan is for debt service payments. In the 2017 Capital Budget and debt service payments are 57.8 percent of expenditures and disbursement. For further detail on the District s capital expenditures and disbursements, please see the Uses of Funds section of this Capital Summary, each capital account section, and the Debt Service section. 90

104 Impact on the Operating Budget The District undertakes life-cycle costing in the analysis of capital projects. This includes identifying, when possible, what the change in O&M costs will be following the completion of each capital project. These analyses are useful not only for decisionmaking to select the lowest life-cycle cost option among competing alternatives, but also for properly forecasting expenditure changes to be included in future O&M budgets. Operating and maintenance costs should be carefully considered in deciding which projects move forward in the CIP. The majority of the District s CIP is focused on the improvement, replacement, or a rehabilitation or of existing water reclamation and conveyance infrastructure rather than the construction of new facilities to expand capacity. As such, it is often the case that replacements do not result in changes from the current level of budgeted O&M expenditures. In project summaries, the O&M impact will be stated as no significant impact. When the District CIP undertakes new initiatives or new technologies, it is more likely to result in new O&M expenditures or incremental changes to ongoing O&M expenditures. Sometimes the project could result in avoided costs or savings, such as the Landfill Gas Project. In CIP project summaries, the O&M impact section will describe the changed condition, start date, and annual budget impact. In addition, the District s capital budget includes capital programs which support the District s capital infrastructure and mission through improvements to municipal or privately owned infrastructure. In such cases, the District s capital expenditures would generally not result in changes to the current level of O&M expenditures (as the resulting improvements are not operated or maintained by the District) but instead help to preserve the capacity and long-term cost-effective operation of the District s system. Highlights of the 2017 Capital Budget The highlights of the 2017 Capital Budget and long-range financing plan can be focused in four main areas: capacity, asset management, sustainability, watercourse and flood management. CAPACITY: South Shore Capacity Improvements, Mill/Green Bay/Green Tree MIS Relief, Dryer Burner Conversion ASSET MANAGEMENT: Milorganite Facilities Improvement Phase III, Conveyance Gate Rehabilitation Phases 3 & 4, Interplant Pipeline Improvements, ISS Crane and Tunnel Fan Rehabilitation SUSTAINABILITY: Fresh Coast Green Solutions, Green Solutions, Landfill Gas System Metro Landfill, Regional Resiliency Infrastructure Plan WATERCOURSE AND FLOOD MANAGEMENT: 30 th Street Corridor East & West, Kinnickinnic River Flood Management, and the Greenseams program Guide to the 2017 Capital Budget The 2017 Capital Budget is divided into seven sections: Summary, Capital Sources of Funds, Water Reclamation Facilities, Conveyance, Watercourse and Flood Management, Other Projects and Programs, and Debt Service. The Summary section provides an overview of Capital Budget sources and uses of funds and discusses how capital project estimates are made and refined during the life-cycle of a capital project. Sources of Funds provides additional detail on each source and related budget assumptions. The following four sections organize the capital accounts and describe all projects funded in 2017, as well as any changes in project scope or total project cost from the 2016 Adopted Capital Budget. In the 2017 Capital Budget, the estimated cost of each project is expressed in current dollars. An escalation factor of 2.33 percent for future years cost is included in a separate capital project account. The final section provides information on the District s debt obligations and debt service payments 91

105 Revenues and Expenditures 2017 Capital Budget Summary of Revenues and Expenditures (in thousands) 2015 Actual 2016 Adopted Budget 2016 Estimate 2017 Capital Budget Change from 2016 Budget % Change from 2016 Budget Revenues Tax Levy 93,639 95,980 95,980 98,380 2, % Non-member Communities 30,222 30,550 30,550 30, % Federal, State Aid, and Grants 2,085 2,154 3,708 1,906 (248) -11.5% State Loans 19,403 23,600 7,501 33,820 10, % Interest and Other Income 2,491 4,991 2, (4,176) -83.7% District Bonds 107, ,000 80, % Total Revenues 255, , , ,790 88, % Available Funds Use of (Additions to) Available Funds (71,073) 58,990 70,016 (26,556) (85,546) -145% Total Revenues and Available Funds $184,645 $216,265 $210,562 $219,233 $2, % Expenditures Capital Program Group Water Reclamation Facilities 22,932 30,175 24,358 44,937 14, % Conveyance Facilities 9,375 10,615 11,833 10, % Watercourse and Flood Management Projects 15,379 24,493 29,014 11,889 (12,604) -51.5% Other Projects and Programs 16,319 24,288 20,619 25, % Total Capital Program Group Expenses $64,005 $89,571 $85,825 $92,598 $3, % Debt Services Payments From Tax Levy and Available Funds 95, , , ,051 1, % Reserved in Debt Service Fund 25,250 26,315 24,358 24,585 (1,730) -6.6% Debt Service 120, , , ,636 (58) -0.05% Total Expenditures $184,645 $216,265 $210,562 $219,233 $2, % Tax Rate per $1,000 of Equalized Value $1.71 $1.74 $1.74 $1.75 $ % Note: The sum of rounded components may not equal the total due to rounding 92

106 2017 Capital Budget Long-Range Financing Plan (Dollars in thousands) Estimate Six-Year Capital Improvements Program Six-Year % of Total Total Beginning balance $117,604 $47,588 $74,144 $39,846 $86,849 $39,047 $69,513 Add: Tax levy 95,980 98, , , , , , ,549 49% Non-member Billings 30,550 30,869 32,389 28,789 31,614 30,947 35, ,950 14% Interest & other 2, , , ,114 6, % Federal, State Aid, & Grants 3,708 1,906 1,529 1,543 1,558 1,574 1,589 9, % CWF Loans 7,501 33,820 30,950 25,590 23,235 36,998 41, ,848 15% District Bonds/Notes 0 80, , , ,000 20% Total revenues 140, , , , , , ,989 1,320,385 96% Use of (Additions to) Less: available funds 70,016 (26,556) 34,298 (47,003) 47,802 (30,466) 26,570 4, % Total sources 210, , , , , , ,559 1,325, % Water Reclamation Facilities 24,358 44,937 38,747 29,179 29,524 58,172 39, ,877 18% Conveyance Facilities 11,833 10,743 20,009 14,029 9,581 19,110 38, ,897 9% Watercourse & Flood Management 29,014 11,889 13,164 36,433 34,701 34,973 23, ,892 12% Other Projects / Programs 20,619 25,029 19,291 17,127 20,260 15,728 15, ,057 9% Projects / Programs 85,825 $92,598 $91,210 $96,767 $94,066 $127,984 $117, ,723 47% Existing GO debt service 48,218 48,120 29,950 29,717 29,714 29,710 22, ,475 Existing CWFL debt service 72,120 72,243 71,314 70,848 69,857 66,523 52, ,596 Other Debt Service 4,399 4,166 1,693 1,692 1,692 1,691 1,691 12,625 Projected CWFL Debt Service ,738 4,737 6,422 8,190 10,741 33,336 Projected GO debt service 0 1,600 5,887 8,262 13,510 15,885 21,133 66,275 Debt service 124, , , , , , , ,306 53% Total uses $210,562 $219,233 $202,792 $212,023 $215,261 $249,983 $225,738 1,325, % Ending balance $47,588 $74,144 $39,846 $86,849 $39,047 $69,513 $42,934 $42,934 Tax rate / $1000 $1.74 $1.75 $1.77 $1.79 $1.80 $1.82 $1.84 % Change in Tax Levy 2.50% 2.5% 4.0% 4.0% 4.0% 4.0% 4.0% Annual % cash financing 91% -23% 66% -25% 75% -3% 65% 25.5% G.O. debt at year-end $888,363 $907,939 $856,535 $891,764 $824,246 $865,165 $829,554 Debt as % of Eq. Value 1.55% 1.54% 1.41% 1.42% 1.28% 1.30% 1.21% beginning balance is net of $30.6M reserved for municipal reimbursements within the following District capital programs: Private Property I/I and Green Solutions. 2. Tax levy growth limited to 2.5% for 2017 and 4% thereafter. To achieve tax rates shown, available working capital is placed in a debt service fund to abate the tax levy as necessary. 3. For 2017, change in District and non-member equalized value is 2.14% and 2.70% respectively, and 3% thereafter. 4. Investment of available funds at 1% in 2017 and 2% thereafter. 5. Future District bond issues structured as 20-year level debt service at 4% in 2017 and 5% thereafter. The sum of rounded components may not equal the total due to rounding 93

107 Uses of Funds The Capital Budget funds capital expenditures and disbursements in four project-related capital expenditure accounts and debt service. The District defines a capital expenditure and disbursement as the costs of acquiring, purchasing, adding to, leasing, planning, designing, constructing, extending, and improving all or any part of a sewerage system and of paying principal, interest or premiums on any indebtedness incurred for these purposes. In 2017, the District plans to spend $92.6 million on capital projects. This represents a 3.4 percent increase from the 2016 budgeted level of $89.6 million. Of the total 2017 capital budget, the District will spend $44.9 million on Water Reclamation Facilities; $10.7 million on Conveyance Projects; $11.9 million on Watercourse and Flood Management Projects; and $25.0 million on Other Projects and Programs. Debt service for principal and interest payments on District bonds and State Clean Water Fund Program loans decreases by 0.05 percent from 2016 budgeted level, to $126.6 million. Capital Projects and Capital Programs Capital projects include any of several activities which are integrally related to and may result directly in the creation of or modifications to a District asset. Such activities include, but are not limited to, feasibility studies, facilities planning studies, engineering and design studies and plans, and actual construction. A single project may consist of one or more of these activities, and may or may not include construction. A capital program, on the other hand, is a program that provides funding to the municipalities the District serves so that the municipality may do work that is mutually beneficial to both entities. The District administers several capital programs that provide funding for municipal work that benefits the District s system, some of which include municipal cost reimbursement programs. Project Identification The District uses Primavera Project Management software to plan and track the progress of the Capital Improvement Program. The software uses a project numbering system, and these project numbers are used throughout the budget. Because some capital projects are long-term and some contracts take many years to complete, in some cases the project number from the prior system is contained in parentheses behind the project name in the project schedules. s For each project with anticipated expenditures in 2017, there is a description included in this document. Each of these projects also includes a table with summary information indicating the start and finish dates. Note that these dates represent the achievement of a major milestone, such as substantial completion, and funds may be included after these dates for close-out or other activities. Inflation and Cost Estimates All projects listed in the 2017 Capital Budget reflect current (2016) dollars, with an escalation factor of 2.33 percent. The total project cost includes all estimated costs for activities to complete a single project. Depending on the total project cost, the inflationary impact may appear as a significant dollar increase. Inflation assumptions are included as a capital expenditure for each capital account in the years to provide a reflection of overall expenditures to be financed in the out-years of the long-range financing plan. The methodology used is seventy-five percent of projected increases in the Consumer Price Index, although comparisons were made to other indices including the Engineering News-Record index for construction costs. This approach recognizes that a significant amount of project expenditures are committed in prior years. Moreover, project scope and schedule changes in out-years allow a degree of flexibility in the estimates. The 2017 Capital Budget includes each capital project s total project cost in a table with each project description. The policy provides emphasis on project expenditure control for the total project cost. Projects in the financing plan have been included based on current cost and scope estimates. As these projects progress through their project life cycle, refinements are made to cost and scope. An individual project s total project cost may also increase as inflationary impacts are accounted for in future budget requests. A project s stage in its life cycle will determine the impact of inflation. As an example, a project that is under construction has an inflation factor built into the construction contract, whereas a project under design will likely have cost increases solely associated with inflation of labor and material costs. The overall cost of the Capital Improvement Program will not be impacted by this annual adjustment, as noted above, inflation is accounted for in total in each capital account, not by project. The current stage of a project within its life cycle is indicated by a basis of estimate. Each project in the Capital Improvement Program uses a basis of estimate, as defined below. CE Conceptual Estimate PE Preliminary Engineering Estimate DE Design Estimate IP In Progress Estimate BE Bid / Award Estimate 94

108 As projects move through the project life-cycle, cost estimates become more refined. Cost estimates for capital projects can change dramatically for a variety of reasons. A project may be conceived in a facilities plan or by District staff with an initial cost estimate. As the project is further defined, the cost estimate may change as refinements are made, actual quantities of materials needed for the project are determined, and site conditions are more thoroughly investigated. Even after construction contracts are awarded actual construction costs may change through contract modifications for differing site conditions, contaminated soils, and field conditions that are different than anticipated in the design. Industry standards for a conceptual estimate, for example, indicate that the final construction amount may be 50 percent higher or 30 percent lower that the estimate. As the project is more developed, the cost estimates become more accurate. After the construction award is made, the average project s final cost may be between plus or minus 5 percent of the original estimated total project cost, including the amount of the construction contract award. Capital Project Life Cycle Expenditure Estimate Phase Fluctuation 60% 50% Conceptual estimate +50%/-30% 40% 30% 20% 10% 0% -10% -20% -30% Preliminary design +20%/-20% Final design +10%/-10% Contract +5%/-5% Current estimate Actual 0% Normal project cost estimating progression -40% Debt Service For each District-issued general obligation bonds, notes, or low-interest loan from the Clean Water Fund Program, State law requires the District to levy an irrepealable, direct annual tax in an amount sufficient to pay the principal and interest on the bonds, notes, or loans for the following year. The tax levy needed to fund the debt service may be reduced in any year by the amount of any surplus money in the Debt Service Fund available to pay debt service. Gross debt service to be paid in 2017 is estimated to be $126.6 million, all of which is for tax supported obligations. For more information about Debt service, please refer to the Debt Service section in the Capital Budget. 95

109 Total Uses of Funds Capital Improvement Program $1,325,030,000 Debt Service 53% Water Reclamation Facilities 18% Conveyance Facilities 8% Watercourse and Flood Mgmt 12% Other Projects/Programs 9% 0% 10% 20% 30% 40% 50% 60% : Capital Improvement Program Expenditures and Disbursements $300 Millions $250 $200 $150 $100 $50 $ Estimate Budget Forecast Tax levy increase Tax levy increase 2.50% 2.50% Tax levy increase 4% Water reclamation Conveyance Watercourse & Flood Mgmt Other projects Debt 96

110 Capital Sources of Funds/Revenues The District uses a variety of sources to fund the capital program with an objective 25 percent average cash financing of project expenditures over the six-year financing plan, and outstanding debt no more than 2.5 percent of equalized property value for member communities. The District s primary source of revenue is the tax levy. Other sources of funding and revenue for the Capital Budget include: - Non-member billings - Federal and State Aid - Interest and other income - Loans - Bonds - Debt Service Sinking Fund and Other Available Funds Total Sources of Funds Long-Range Financing Plan $1,325,030,000 Tax levy, 49% District bonds, 20% Non-member billings, 14% Clean Water Fund Loans, 14% Interest & other, 0.5% Federal and state aid, 1% 0% 10% 20% 30% 40% 50% 60% 97

111 Tax Levy Source of Funds (in thousands) 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 Tax Levy $93,639 $95,980 $95,980 $98,380 $2, % The tax levy is the main source of revenue for the capital program and is used to finance the acquisition, extension, planning, design, construction, adding to or improvement of land, waters, property, or facilities for sewerage purposes, and to pay principal and interest on bonds, notes, or loans as provided in the fiscal year capital budget. The tax is levied upon all taxable property in the District (as equalized for State purposes), pursuant to Sec (6), Stats., a non-repealable, direct annual tax in an amount sufficient to pay the principal of and interest on the District-issued bond or notes or low-interest loans from the Clean Water Fund Program for the following year. The District s tax levy is carried on to the tax roll of each city, town, or village wholly or partially within the boundaries of the District and collected in addition to all other taxes and in the same manner and at the same time, all as provided by law and in addition to all other State taxes. In any given year, the amount of any surplus funds in the Debt Service Fund available to pay debt service is used to reduce the tax levy. In 2017, the tax levy is $98.4 million, an increase of 2.5 percent over the 2016 budgeted level. The tax levy results in a tax rate of $1.75; an increase of $0.01 per $1,000 of equalized value from $1.74 per $1,000 for $130,000 Actual and Projected Tax Levies and Tax Rates $2.00 Total Revenue (dollars in thousands) $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ Estimate Budget $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 Tax Rate Tax Levy Tax Rate Forecast 98

112 Non-member Billings Source of Funds (in thousands) 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 Non-member billings $30,222 $30,550 $30,550 $30,869 $ % Non-member billings come from ten communities outside the District s legal boundary but within the District s service area. Non-member communities are billed a capital charge in place of levying a property tax. Non-member communities receive a billing rate credit for watercourse and flood management projects and some green infrastructure expenditures to which those communities are not tributary. In 2017, non-member billings are budgeted at approximately $30.9 million, an increase of $0.3 Million or 1.0 percent from the 2016 budgeted level : Non-member billings revenue $40,000 $35,000 $30,000 $30,550 $30,869 $32,394 $28,773 $31,614 $30,947 $35,336 Revenue (in thousands) $25,000 $20,000 $15,000 $10,000 $5,000 $ Estimate 2017 Budget 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast The chart above shows the impact of the watercourse credit estimate on non-member billings. As watercourse credit expenditures increase on non-tributary watercourses, the estimated credit also increases. Watercourse expenditures are forecast to increase in See Watercourse and Flood Management capital account section for further detail. 99

113 District Bonds & Notes Source of Funds (in thousands) 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 District Bonds & Notes $107,878 $0 $0 $80,000 $80, % Per Commission Policy , Debt Policy, the District intends to keep outstanding general obligation debt to 50 percent of the limit prescribed by the State of Wisconsin Statute, Section which has a limit of 5 percent of the equalized valuation of the taxable property within the District. Also, the District shall maintain debt funding levels consistent with its credit objectives and long-range financing plan. The District typically issues 20-year, level payment, long-term debt in the form of its own general obligation bonds or notes. In 2016, the District did not issue any bonds or notes. In 2017, the District plans to issue $80 million in new bonds and/or notes : Debt as a % of Equalized Value 2.50% 2.00% Goal 2.5% The District's goal is to keep outstanding debt to no more than 2.5% of its equalized value of member communities 1.50% 1.00% 0.50% The District's forecast projects outstanding debt to be less than 1.6% of its equalized value. 0.00% Estimate Budget Forecast 100

114 Loans Source of Funds (in thousands) 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 Loans $19,403 $23,600 $7,501 $33,820 $10, % Debt sold directly to the State of Wisconsin will be used when the District undertakes capital projects that are eligible to receive below-market rate loans from the State of Wisconsin Clean Water Fund Program, established under section and of Wisconsin Statutes, that provides low-interest loans for the construction of wastewater treatment works, non-point source pollution projects and estuary projects. In addition, and situationally contingent, the District may use other sources of loans that may provide zero or reduced-rate benefits for certain projects, such as energy efficiencies. In 2017, the District expects to receive approximately $33.8 million from State Clean Water Fund Program loans to fund capital projects and an additional $158.0 million from 2018 through Interest and Other Income Source of Funds (in thousands) 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 Interest and Other $2,491 $4,991 $2,807 $815 ($4,176) -83.7% The District earns interest by investing its available cash balance. Per Commission Policy , Investment Policy, the District may invest funds in accordance with all District policies, State statutes, and Federal regulations to achieve preservation of capital and protection of investment principal, sufficient liquidity levels, appropriate levels of diversification, and attachment of a market rate of return no less than the Local Government Investment Pool Fund. The investment of available funds is budgeted at 1% in 2017 and 2% thereafter. Other income may include revenues from the sale of capital assets, or project-specific payments from private or public sources, and credit payments from the federal government for the District s $50 million Build America Bond (BAB) issues. In 2017, the District anticipates a $577,000 credit payment for BAB. Federal, State Aid, and Grants Source of Funds (in thousands) 2015 Actual 2016 Budget 2016 Estimate 2017 Budget Change from 2016 Budget % Change from 2016 Federal and State Aid $2,085 $2,154 $3,708 $1,906 ($248) -11.5% The District seeks grant opportunities from a variety of federal and state sources to fund capital projects. In 2017, the District expects to receive approximately $0.4 million in grants and other assistance for several watercourse projects. In addition, approximately $1.5 million is included as state aid for tax exempt computers. 101

115 Debt Service Sinking Funds In accordance with section (1) of the Wisconsin Statutes the District is required to establish and maintain a debt service fund for the payment of principal and interest on bonds and notes used in financing its capital improvements program. The District maintains a separate account for each of its own outstanding debt issues and one account for debt obtained through the State of Wisconsin Clean Water Fund Loan Program. Annually, State law requires the District to levy an irrepealable tax sufficient in amount to pay the principal and interest on the debt as it comes due in the following year. Taxes collected from this levy are placed into the debt service fund account and used to pay the annual debt service. The required tax levy may be abated, or reduced, in any year by the fund balance available in the Debt Service Fund. Earnings from the investments in the debt service fund accounts, remain, until used, a part of the debt service fund accounts. Money shall not be withdrawn from a debt service fund and used for any purpose other than the purpose for which the fund was created until that purpose has been accomplished. After all of the outstanding debt has been paid and retired, any balance in any debt service fund account may be transferred out and used as directed by the Commission. The source of funds for the District s Debt Service Fund are as follows: funds raised by taxation for the purpose of making principal and interest payments on District obligations, the premium on District issued bonds/nots that have been sold above par value and accrued interest, all moneys accruing to the borrowed money fund which are not needed and which obviously cannot be needed for the purpose for which the money was borrowed, funds from working capital for the purpose of abating the annual tax levy for purposes of the subsequent fiscal year. State law requires the District to levy an irrepealable, direct annual tax in an amount sufficient to pay the principal of and interest on the bonds or notes for the following year for each District-issued bond or low interest loan from the Clean Water Fund Program. The required tax levy may be abated by the transfer of working capital or reduced, in any year by the surplus fund balance available in the Debt Service Fund. In 2016, the Debt Service Fund had a surplus balance of $6,326,544. A transfer from working capital was made in September 2016 in the amount of $18,258,000, resulting in a balance of $24,584,544. This action provides a source of funds to reduce the estimated 2017 debt service of $126,635,774 to net debt service funded by the 2017 tax levy of $98,380,000. The timing of Clean Water Fund Loan reimbursements may cause the level of reimbursements to be different than the budgeted level, so the actual use of debt service funds available may be different than the total available in the Debt Service Fund as shown in the table below. Debt Service Fund Balance 2017 Debt Service (in thousands) Gross Debt Service Less: Surplus in Debt Service Fund Net Debt Service District General Obligation Bonds and Notes $49,720 $4,476 $45,244 Clean Water Fund Program Loan Total $72,750 $1,851 $70,899 Total General Obligation Debt Service $122,470 $6,327 $116,143 Intergovernmental loan* $4,166 Total $126,636 $6,327 $116,143 Tax levy (2.50% increase from prior year) $98,380 Transfer from working capital to the Debt Service Fund $18,258 Add: Surplus in Debt Service Fund $6,327 Total Available in Debt Service Fund $24,585 * Note: Wisconsin Economic Development Corporation loan and intergovernmental loan from Franklin not secured with tax levy pledge. 102

116 Water Reclamation Facilities The District operates two water reclamation facilities through a contract with Veolia Water Milwaukee. The facilities provide sewage treatment services for 18 cities and villages within the District s legal boundary and to all or parts of 10 municipalities outside Milwaukee County. Total Expenditures (dollars in thousands) $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Water Reclamation Facilities Actual Estimate Budget Forecast 103

117 Jones Island Reclamation Facility Located on a peninsula in the Milwaukee harbor, the Jones Island Water Reclamation Facility is the oldest operating activated sludge plant in the country. Because of its historic leadership in wastewater treatment, the facility has been designated a National Historic Civil Engineering Landmark by the American Society of Civil Engineers and has been placed on the National Register of Historic Places. The plant was originally constructed in 1925, with a capacity of 85 million gallons per day (MGD). After expansions in 1935 and 1952, the treatment capacity increased to 200 MGD. With the completion of the Water Pollution Abatement Program (WPAP) in 1994, the daily maximum design flow at Jones Island for full secondary treatment is 300 MGD. The peak (hourly) design capacity for full secondary treatment is approximately 330 MGD; full capacity with 60 MGD in-plant diversion is 390 MGD. Current average daily flows to the plant are 112 MGD. Wastewater treatment at Jones Island consists of preliminary/primary treatment, secondary treatment, and advanced treatment. In the primary treatment phase, wastewater is held in large circular tanks called clarifiers to allow heavier solids to settle to the bottom and lighter solids to float to the top. After removal of the solids, the water flows to the secondary or biological activated sludge process that uses bacteria and other microorganisms to consume soluble pollutants in the water. The wastewater then flows to the secondary clarifiers where the biosolids are removed for the production of Milorganite, an organic fertilizer. In the advanced treatment process, clear water is chlorinated to kill any harmful bacteria. Before being discharged to Lake Michigan, any remaining chlorine is removed by adding a neutralizing chemical to ensure no fish toxicity. South Shore Reclamation Facility Located to the south of Jones Island in Oak Creek, the South Shore Water Reclamation Facility was constructed in 1964 as a primary treatment facility with a capacity of 60 MGD. The plant was expanded in 1974, to include secondary treatment, advanced treatment involving phosphorus removal and nitrification to remove ammonia. The design capacity of South Shore is 250 MGD Maximum Day and 300 MGD Peak Hour. Current average daily flows to the plant are 100 MGD, mostly from the southern and western portions of the District service area. Sludge generated by the South Shore treatment process is either pumped via the interplant pipeline to Jones Island for processing into Milorganite or sent to digesters at South Shore for anaerobic digestion. The digestion process destroys up to 30 percent of the solids and produces methane gas used to provide electricity for the plant. The 2017 Capital Budget includes $44.9 million for work on various water reclamation facility projects. Please refer to project detail on the following pages for information on each project s purpose, scope, cost estimate and impact on the O&M budget. Sewage Treatment System Source: Environmental Protection Agency 104

118 Jones Island Water Reclamation Facility Primary Treatment Primary treatment at Jones Island involves preliminary and primary treatment of incoming wastewater. Preliminary treatment removes large and untreatable material such as wood, rags, sand, and grit. Next, the preliminarytreated water is collected in large tanks, called primary clarifiers, which allows heavier solids to settle to the bottom of the tanks and lighter solids to float to the top. The goal of the process is to effectively remove material that can damage downstream equipment and solids that cannot be treated biologically. ID #: Name: Phase Start Finish Cost J01008 Upgrade Primary Clarifier Mechanisms Design Feb-07 Dec-08 $818,189 Construction Sep-09 Dec-12 $3,785,840 Post-Constr. Jun-13 Apr-18 $728,865 Total $5,332,894 Previously Approved Total $5,336,469 Increase/(Decrease) ($3,575) The purpose of this project is to increase the reliability and dependability of the eight primary clarifier mechanisms and to ensure full hydraulic capacity in the primary influent channels. The scope consists of the replacement of eight primary clarifier drive systems, gearboxes and scraper arm assemblies, and the installation of motorized weir gates on the clarifier inlet boxes. The change in total project cost is due to refined cost estimates. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J01015 JI Primary Clarifier Channel Improvements Prelimin. Eng Jan-15 Jul-18 $261,356 Design Sep-12 Sep-23 $373,716 Construction Oct-13 Dec-24 $2,131,076 Total $2,766,148 Previously Approved Total $2,723,708 Increase/(Decrease) $42,440 The purpose of the project is to ensure maximum flow capacity of the primary influent channels at the Jones Island Reclamation Facility by preventing solids from settling and accumulating. The project scope consists of design and construction of a diffused air mixing system to replace the existing ineffective system. The new system is anticipated to include a new aeration blower, larger air piping, and an increase in the quantity of air diffusers. In addition, the primary sludge drain system will be evaluated to correct performance issues. Solids settling and accumulation result in unbalanced flow to the clarifiers which can result in wastewater treatment below capacity and jeopardize discharge permit compliance. The increase in total project cost is to reflect market conditions. The operating budget impact is not known at this time. 105

119 ID #: Name: Phase Start Finish Cost J01019 JI Force Main Assessment Prelimin. Eng Feb-17 Oct-18 $633,986 Total $633,986 Previously Approved Total $0 Increase/(Decrease) $633,986 The purpose of the project is to provide an engineering analysis of the existing condition of the 72-inch Ductile Iron Force Main Pipe by providing accurate and comprehensive measurement of the current pipe wall thickness and an assessment of the rates of corrosion. The project scope consists of an evaluation that will address pipe wall thickness measurement, assessment of the rates of corrosion (if any) or other form of degradation of pipe strength, and prioritize and recommend actions to be taken. This is a new project. The operating budget impact is not known at this time. Jones Island Water Reclamation Facility Secondary Treatment After the solids are removed in Primary Treatment, wastewater flows to the secondary or biological activated sludge process. In this process, primary treated effluent and return activated sludge are mixed (mixed liquor), and large amounts of air are pumped into this mixture to permit bacteria and other microorganisms to consume soluble oxygen-demanding pollutants in the water. The pollutants are broken down to mainly cell mass, carbon dioxide and water. This mixed liquor is then routed through the secondary settling basins where the biological solids settle. ID #: Name: Phase Start Finish Cost J02012 Aeration System Diffusers Replacement Prelim. Eng. Jun-15 Dec-16 $162,056 Design Oct-20 Mar-22 $441,585 Construction May-22 Jun-23 $3,139,727 Post-Constr. Jul-23 Apr-24 $6,082 Total $3,749,450 Previously Approved Total $3,681,365 Increase/(Decrease) $68,085 The purpose of this project is to improve the Jones Island Water Reclamation Facility aeration system. The project scope consists of the design, procurement, and installation of new ceramic diffuser plates in the East and West Aeration Basins. Reconfiguring the placement of the new diffusers in the aeration basins will improve the District s ability to vary the amount of air used in the secondary treatment system, reducing the energy requirements of this system. The increase in total project cost is due to increased design, project staffing and updated costs to reflect market conditions. This project is expected to have a positive operating budget impact as a result of the reduced energy usage of the new diffusers. 106

120 ID #: Name: Phase Start Finish Cost J02013 East Plant RAS Header & Pump Design Jul-15 Sep-16 $263,988 Replacement Construction Feb-17 Nov-17 $1,254,134 Post-Constr. Jan-18 Aug-18 $4,000 Total $1,522,122 Previously Approved Total $2,122,855 Increase/(Decrease) ($600,733) The purpose of this project is to ensure the integrity and capacity of Return Activated Sludge (RAS) processing within the Secondary Treatment process. The project scope is to design and construct the replacement of the 48 inch, 140-foot-long East Plant RAS steel discharge header pipe. The existing pipeline has experienced multiple failures and is not operating at full capacity. Capacity constraints in the process may impact effluent quality and the ability to meet the District s WPDES effluent permit limits. Project scope also includes replacement of three RAS pumps. The decrease in total project cost is a result of efficiencies gained in the pump replacement process. No significant operating budget impact is expected. Jones Island Water Reclamation Facility Advanced Treatment The biologically treated water enters the final treatment process in preparation for discharge into Lake Michigan. During this process, sodium hypochlorite is used to disinfect the water. Disinfection is the selective destruction of disease-causing organisms including bacteria, viruses, and amoebic cysts. After chlorination, sodium bisulfite is fed into the waste stream to remove any chlorine residuals. Chlorine removal is necessary to ensure fully treated water is not toxic to fish. This fully treated wastewater, or plant effluent, is discharged into Lake Michigan. No projects in Jones Island Water Reclamation Facility Solids Processing Biosolids are removed in the primary and secondary clarifiers, and must be further processed and disposed of for beneficial reuse. Jones Island uses a state-of-the-art process for waste solids to produce an environmentally safe fertilizer, Milorganite, which is marketed for public use. Milorganite is composed of a blend of biosolids (sludge) from both Water Reclamation Facilities. The solids processing includes these individual processes necessary for Milorganite : blending, thickening, dewatering, drying, warehousing, and shipping. Blending is the process of mixing the biosolids from different sources to form a uniform consistency for the downstream thickening units. Thickening and dewatering both minimizes the moisture content of the biosolids. After dewatering, biosolids are dried in a rotary drying unit. The dried biosolids go through a screening process to size the product to Milorganite specifications. The Milorganite is then stored in silos before shipping to customers or to the contracted packaging facility. Much like any production process, there are leftover materials or scrap. The leftover dried sludge from the production of Milorganite must be disposed of or reused. 107

121 ID #: Name: Phase Start Finish Cost J04033 Design Feb-15 Dec-15 $230,132 D&D Drainage Piping & Quench Chambers Rehabilitation Construction Mar-16 Oct-17 $1,455,294 Post-Constr. Jan-18 May-18 $12,577 Total $1,698,003 Previously Approved Total $1,698,002 Increase/(Decrease) $1 The purpose of this project is to reduce the probability of building drainage piping failures that cause safety hazards and damage to process equipment. The project will rehabilitate and replace building drainage piping on several floors of the Dewatering & Drying Building at Jones Island. This will include removing and replacing floor drains, drainage piping, and supporting systems. The change in total project cost is de minimus. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J04037 Wet Weather Gravity Belt Thickener Prelimin. Eng Oct-15 Feb-16 $3,813 Design Dec-16 Nov-17 $299,013 Construction Mar-18 Apr-19 $910,702 Total $1,213,528 Previously Approved Total $1,112,684 Increase/(Decrease) $100,844 The purpose of this project is to evaluate conditions and add a fifth gravity belt thickener (GBT) at the JIWRF if necessary to deliver a consistent blended sludge feed at 4 percent total solids. This will depend on whether or not a consistent blended sludge feed of 4 percent total solids can be maintained with four GBTs or if a fifth GBT is needed for redundancy. The project scope also includes adding a fifth thickened activated sludge (TAS) pump. The increase in total project cost is for the additional TAS pump and additional labor hours required. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J04039 D&D Building Explosion Relief Panel Replacement Design Oct-15 Dec-16 $400,196 Construction Apr-17 Jan-18 $2,542,304 Post-Constr. Feb-18 Jun-18 $4,772 Total $2,947,272 Previously Approved Total $2,947,271 Increase/(Decrease) $1 The purpose of this project is to ensure the safety of personnel and equipment within and around the Drying and Dewatering Facility. The project scope is to evaluate the types of explosion relief panel systems that are applicable and can be installed in the D&D building, design an explosion relief panel system, and install the system to replace the existing exterior fiberglass panels on the D&D building in a controlled fashion. The change in total project cost is de minimus. No significant operating budget impact is expected. 108

122 ID #: Name: Phase Start Finish Cost J04040 D&D Freight & Passenger Elevator Rehab Design Sep-15 Feb-17 $299,538 Construction May-17 Jun-18 $2,302,916 Post-Constr. Aug-18 Nov-18 $7,977 Total $2,610,431 Previously Approved Total $1,803,245 Increase/(Decrease) $807,186 The purpose of this project is to ensure employee and public safety and efficient operation and maintenance of the Drying and Dewatering Facility. The project scope is to design and rehabilitate Passenger Elevator #1 and Freight Elevator #2. Both of these elevators have been in service for over 20 years and have experienced significant outages and are not consistently functioning as intended. The elevators are used by staff, for public tours, and to move large maintenance equipment. The increase in total project cost is due to higher construction estimates being projected. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J04041 Milorganite Facilities Improvement - Phase III Design Apr-15 Jun-16 $408,402 Construction Sep-16 Nov-17 $5,133,180 Post-Constr. Jan-18 May-18 $19,003 Total $5,561,575 Previously Approved Total $5,561,575 Increase/(Decrease) $0 The purpose of this project is to maintain and improve the efficiency and effectiveness of the drying process in making Milorganite. The project scope is to design and replace several components of the drying process required for the production of Milorganite. Failures in this process lead to a decrease in the production of Milorganite resulting in less available product and increased costs for disposing of the material that is not converted into Milorganite. Larger scope items to be addressed by this project include replacement of Main Recycle Screws #3 & #4; Recycle Bin Bucket Elevators #1 & #2; Wet Recycle Screws #28-1 & #28-2; and Recycle Bin Discharge Screws #58-1 & #58-2. The original scope included five additional screws that were moved to project J04043 due to the criticality of those screws. There is no change in total project cost. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J04046 D&D Energy Conservation Efforts Design Dec-16 Jan-18 $178,461 Construction Apr-18 Apr-19 $1,219,295 Post-Constr. Jun-19 Oct-19 $5,385 Total $1,403,141 Previously Approved Total $1,775,522 Increase/(Decrease) ($372,381) The purpose of this project is to replace the motors on the twelve induced draft fans that maintain the negative pressure within the Milorganite drying system with new motors and variable frequency drives (VFDs). The decrease in total project cost is due to decreased project scope due to removed HVAC pump and exhaust fan motor replacement/vfd installation. The project is expected to have a positive operating budget impact due to the increased energy efficiency. 109

123 ID #: Name: Phase Start Finish Cost J04047 Install Winches at Chaff Load-out Bay Design Feb-16 Jun-16 $62,041 Construction Sep-16 Mar-17 $193,279 Post-Constr. Mar-17 Jul-17 $5,484 Total $260,804 Previously Approved Total $266,450 Increase/(Decrease) ($5,646) The purpose of this project is to install two floor-mounted winches in the chaff load-out bay (CLB) to improve safety and protect the lugger and lugger truck from damage. The decrease in total project cost is a result of construction bids received. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J04050 Dryer Feed and Discharge Screw Design Jul-16 Aug-17 $455,018 Replacement Construction Jan-18 Mar-20 $2,851,293 Post-Constr. May-20 Oct-20 $5,392 Total $3,311,703 Previously Approved Total $3,470,917 Increase/(Decrease) ($159,214) The purpose of this project is to improve the efficiency and reliability of biosolid processing equipment to allow for maximum production of Milorganite. The project will replace the dryer mixer screw conveyors, dryer feed screw conveyors and the dryer discharge screw conveyors. The replacement of the feed and discharge screw system will allow conveyors to work at the designed capacity and ensure maximum Milorganite production. The decrease in total project cost is due to lower than previously anticipated bid for design. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J04051 Main Recycle Air Belt Feed Screw Design Apr-16 Mar-17 $163,808 Replacements Construction Sep-17 Sep-18 $613,107 Post-Constr. Nov-18 Nov-18 $5,513 Total $782,428 Previously Approved Total $755,231 Increase/(Decrease) $27,197 The purpose of this project is to improve the efficiency and reliability of biosolid processing. The project will replace the main recycle air belt (MRAB) feed screw conveyors. The current equipment is past its expected useful life and the failure of the conveyor system limits the productions of Milorganite. The replacement of MRAB feed screws will allow for efficient and reliable biosolids processing. The increase in total project cost is due to minimal additional costs identified. No significant operating budget impact is expected. 110

124 ID #: Name: Phase Start Finish Cost J04052 Milorganite Facilities Improvements Phase IV Design Jul-16 Dec-17 $545,009 Construction Apr-18 Dec-19 $2,518,733 Post-Constr. Feb-20 May-20 $15,000 Total $3,078,742 Previously Approved Total $1,242,204 Increase/(Decrease) $1,836,538 The purpose of this project is to improve the efficiency and reliability of biosolid processing. Equipment that is operating in poor condition reduces the facility s capacity to transport biosolids efficiently, which affects Milorganite production. This project will replace four screw conveyors, five bucket elevators, two drag conveyors and six slidegates. In addition, the project will restore the air handling capacity and redundancy of air supply unit #32, which was placed out of service due to age and cost prohibitive repair, and replace the recycle bin vent baghouse which is non-functional. The increase in total project cost is due to several projects combined into one to take advantage of cost savings in both design and construction phases. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J04058 Dryer Exhaust Evaluation Prelimin. Eng Sep-17 Mar-19 $214,866 Total $214,866 Previously Approved Total $0 Increase/(Decrease) $214,866 The purpose of this project is to evaluate the dryer exhaust system within the D&D facility system in an effort to identify causation of increasing particulate emission levels and develop alternatives for mitigation. The project scope includes the initial evaluation that will facilitate further detailed scope development and associated costs and requisite schedule moving forward. This is a new project. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J04059 Milorganite Product Cooler Replacement Design Jun-16 Nov-16 $1,181,699 Construction Jan-17 Jun-17 $471,266 Post-Constr. Jan-17 Nov-17 $6,125 Total $1,659,090 Previously Approved Total $0 Increase/(Decrease) $1,659,090 The purpose of this project is to make improvements to the two Milorganite product coolers in order to maintain the ability to cool product for safety reasons before it is sent to silos for storage. The project scope includes the complete replacement of product cooler Number 2 with a new unit and replacement of the cooling shell in product cooler Number 1. Ancillary equipment will also be replaced to maintain the reliability of the entire product cooling system. This is a new project. No significant operating budget impact is expected. 111

125 ID #: Name: Phase Start Finish Cost J04060 Sludge Cake Transport Design Sep-17 Oct-18 $536,309 Construction Feb-19 Mar-20 $3,924,879 Post-Constr. Apr-21 Aug-21 $6,748 Total $4,467,936 Previously Approved Total $0 Increase/(Decrease) $4,467,936 The purpose of this project is to improve the reliability of solids processing equipment in D&D and minimize dryer outages. Project scope includes replacement of six sludge cake transport belt conveyors and the six sludge cake feed belt conveyors and the associated equipment. All of the belt conveyors, originally installed in 1992, have ongoing issues with corrosion and worn belt scrapers, belts, rollers, bearings, and pulleys. Continued reliability of sludge cake handling equipment is critical to allow the processing and removal of solids from the plant treatment process. Unreliable sludge cake conveying equipment increases the risk of safety incidents due to dryers quickly heating up, the risk of increased cost of processing solids, and risks to permit compliance. This is a new project. Operating budget impacts will take the form of corrective and preventative maintenance savings which, since 2009, have totaled approximately $440,000. ID #: Name: Phase Start Finish Cost J04061 D&D PLC 5 Upgrades Design Jan-18 Apr-18 $165,113 Construction Sep-18 Feb-21 $7,164,553 Post-Constr. Apr-21 Jul-21 $7,613 Total $7,337,279 Previously Approved Total $0 Increase/(Decrease) $7,337,279 The purpose of this project is to increase the automation reliability and to avoid equipment downtime due to the inability to repair the existing PLC 5s, since parts will be very difficult to procure. The scope of the project includes replacement of 66 Allen-Bradley PLC-5s in the D&D facility with newer model PLCs, such as Allen-Bradley ControlLogix. Specific work tasks include procuring the hardware, off-site programming of the PLCs, installation of the hardware, and on-site commissioning of the new control platform. The functionality of the existing control platform would have to be replicated in the new platform. This is a new project. No significant operating budget impact is expected. General Projects Projects grouped into this category are projects that do not fit into the other water reclamation processes. The types of projects can be associated with: ENERGY DISTRIBUTION electrical generation and distribution, hot water and steam generation, and distribution and process air generation BUILDINGS AND GROUNDS IMPROVEMENTS capital improvements to non-process buildings and other improvements such as roads and utilities NONSPECIFIC Instrumentation and Control COSTS ASSOCIATED with litigation for non-current capital projects ALL OTHER nonspecific items 112

126 ID #: Name: Phase Start Finish Cost J06026 JI Site Lighting Upgrade Prelimin. Eng Jun-15 Mar-18 $87,902 Design Jun-18 Feb-19 $165,369 Construction Jul-19 May-20 $712,432 Post-Constr. Jun-20 Jun-20 $539 Total $966,242 Previously Approved Total $663,863 Increase/(Decrease) $302,379 The purpose of this project is to improve the efficiency of the lighting system at the Jones Island Water Reclamation Facility. The project scope is to evaluate all of the existing indoor and outdoor lighting for a possible upgrade if the upgrade can be justified in terms of savings in energy, maintenance, and labor productivity. Existing lighting fixtures have reached the end of their useful life and are failing. As a safety issue, lighting in select buildings and building sections at Jones Island facilities require retrofitting or replacement. By replacing all lighting systematically (grouped replacement) the District achieves improved lighting and workplace safety, higher energy efficient product, and lower maintenance costs. Installation of occupancy and daylight photo sensor technology allows for substantial cost savings and is aligned with District energy goals. Revised cost estimates anticipate an increase in total project cost. The project should have a positive operating budget impact as the result of increased energy efficiency. ID #: Name: Phase Start Finish Cost J06034 Head Tank Wall Extension Planning Mar-10 Apr-12 $134,515 Prelimin. Eng Feb-14 Jul-15 $381,525 Design Oct-11 Apr-16 $309,110 Construction Aug-12 Jun-17 $1,253,906 Post-Constr. Sep-17 Sep-18 $15,701 Total $2,094,757 Previously Approved Total $3,231,441 Increase/(Decrease) ($1,136,684) The purpose of this project is to ensure the head tanks have adequate capacity for the increased flows resulting from the ISS pump station improvement project. The project scope includes evaluation, design and construction of tank and piping modifications to increase capacity of the head tank system. Modifications include increasing the height of the Jones Island tank, addition of a new interconnecting pipe between the South Shore and Jones Island tank, reductions in the height of internal standpipes, and tank structural repairs to eliminate leaks. The project also includes installation of a perimeter drainage system, and evaluation and upgrade of the instrumentation used to operate the head tanks. The decrease in total project cost is due to construction bids received and contract award. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost J06045 HVAC for Computer Room in Ops Design Jan-16 Jul-16 $91,178 Building Construction Oct-16 Jun-17 $298,883 Post-Constr. Jul-17 Nov-17 $5,504 Total $395,565 Previously Approved Total $148,331 Increase/(Decrease) $247,234 The purpose of this project is to improve the working environment within the Jones Island Operations building. The project scope is to replace the heating, ventilation, and air conditioning (HVAC) systems for three work areas within the Jones Island Operations building. The existing HVAC systems are inadequate to address the current heat loads generated by the number of staff occupying these areas and associated office equipment. The increase in total project cost is due to refined cost estimates for the construction phase. The operating budget impact is not known at this time. 113

127 ID #: Name: Phase Start Finish Cost J06050 JI and SS I&C Improvements Design Jan-13 Apr-18 $226,479 Construction Feb-15 Nov-18 $1,546,071 Total $1,772,550 Previously Approved Total $1,747,325 Increase/(Decrease) $25,225 The purpose of this project is to improve the effectiveness and efficiency of process control at both water reclamation facilities. The project scope is to integrate multiple fiber optic networks and improve data routing through the network. A study completed in 2009 revealed that efficiency and effectiveness gains could be made by integrating networks developed under two separate capital projects. These networks are also approaching the end of their useful lives. The study also revealed that the current fail-over data routing methodology could lead to slow data transmission times and data loss. Delay in receiving or loss of data can impact overall operations of the treatment plant and impact permit compliance. The project also includes upgrading the Historian program, decommissioning the Bailey control systems, and upgrading the programmable logic controls which all are involved in how electronic signals from the instruments are passed to operators. The change in total project cost is due to inflation, project staffing, or updated costs to reflect market conditions. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost J06052 Building Piping Inventory & Rehabilitation Planning Apr-13 Sep-18 $180,193 Prelimin. Eng Sep-18 Jun-19 $765,000 Total $945,193 Previously Approved Total $1,731,390 Increase/(Decrease) ($786,197) The purpose of this project is to reduce the probability of building and process piping failures occurring within the water reclamation facilities buildings, galleries, and tunnels. The scope of this project is to determine the level of degradation and corrosion of interior piping within the buildings, galleries, and tunnels at both of the water reclamation facilities, and to prioritize the rehabilitation and replacement of identified damaged piping. Corrosion of process piping can result in damaging water entering other treatment systems as well as causing outages and expensive repairs as most of the treatment process piping is under pressure. The decrease in total project cost is due to the removal of rehabilitation work from the project scope. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost J06054 ISS Crane Rehabilitation Design Jun-15 Feb-17 $317,731 Construction May-17 Apr-18 $3,335,076 Post-Constr. Jul-18 Jan-19 $5,125 Total $3,657,932 Previously Approved Total $1,710,982 Increase/(Decrease) $1,946,950 The purpose of this project is to extend the service life and improve reliability of the Inline Storage System (ISS) crane to improve system performance during high flow events. The purpose of the crane is to remove the solids that accumulate on the bar screens prior to the flow entering the ISS pump intake header. The scope of this project is to analyze and implement rehabilitations related to the crane motors, braking systems, super structure, and cab. The crane has been operating in a harsh environment for over 20 years and is experiencing reliability and safety issues. The scope also includes the study of the effectiveness of two fans that exhaust sewer gas from the ISS. The fans have reached the end of their useful life. Sewer gas presents a safety hazard when staff are deployed in the ISS for inspection and maintenance. Before replacing the fans, the study will determine the proper sizing by measuring the air input points in the system. The increase in total project cost is due to refined cost estimates for the construction phase. The operating budget impact is not known at this time. 114

128 ID #: Name: Phase Cost J06056 Turbine Extended Service Agreement Construction $15,474,831 Total $15,474,831 Previously Approved Total $15,474,831 Increase/(Decrease) $0 The purpose of this project is to improve the reliability of the plant electrical system and minimize the financial impact associated with landfill gas turbine outages. The scope of this project is the capital portion, 75 percent of costs, of a ten-year contract with Solar Turbines Inc., which will complete engine and major engine component replacement (approximately every three to six years) on the District s three landfill gas turbines. The landfill gas turbines are designed to provide power for the plant electrical system and minimize the amount of power purchased from WE Energies providing District rate payers a significant annual savings. The operating budget impact includes 25 percent of the costs of the ten-year agreement with Solar Turbines, Inc. The O&M portion of the agreement covers: 1) routine maintenance, washing, and inspection services; 2) remote monitoring of engine operating parameters and diagnostic evaluation of the parameters to detect abnormal conditions and address them early; 3) repairs and parts replacement; 4) unlimited unscheduled visits; and 5) unlimited technical support. ID #: Name: Phase Start Finish Cost J06058 JI Building Roof Replacement - Phase II Design Sep-14 Feb-16 $264,123 Construction Jun-16 Oct-17 $2,749,008 Post-Constr. Dec-17 May-18 $4,791 Total $3,017,922 Previously Approved Total $3,017,923 Increase/(Decrease) ($1) The purpose of this project is to rehabilitate or replace the roofs of the buildings at Jones Island, which protect people, equipment, and processes from weather, animals, birds, and other elements. Maintaining buildings is necessary to efficiently operate and maintain the treatment process. The project includes the roofs of buildings 225, 258, 259, 268, 285, 286, and 295. This will include an initial review of the condition information and prioritization of the roof rehabilitations and replacements. The project will then proceed with the design and construction of roof replacements. The decrease in total project cost is de minimus and the previously approved total is per Commission Resolution # The operating budget impact includes approximately $61,000 for roof rehabilitation work that qualifies for funding from the O&M Budget. ID #: Name: Phase Start Finish Cost J06061 Dryer Burner Conversion Prelimin. Eng Jan-14 Aug-16 $317,468 Design Oct-15 Feb-17 $713,251 Construction May-17 Mar-19 $7,760,940 Post-Constr. May-19 Oct-19 $8,946 Total $8,800,605 Previously Approved Total $6,871,591 Increase/(Decrease) $1,929,014 The purpose of the project is to improve the cost-effectiveness of solids processing. The project scope is to implement a dryer burner system capable of utilizing landfill gas (LFG) as a fuel source to take advantage of a potentially increasing volume of LFG. The project scope includes the design and construction of the selected system. The change in total project cost is due to an increase in scope to include ten dryers, compared to the previous scope which included eight and refined construction estimates. The project is expected to have a positive operating budget impact as a result of the utilization of LFG, a lower cost fuel option. 115

129 ID #: Name: Phase Start Finish Cost J06062 Re-Commission GE Turbine #2 Design Sep-16 Feb-17 $59,709 Construction May-17 Jan-18 $253,621 Post-Constr. Feb-18 Jun-18 $5,000 Total $318,330 Previously Approved Total $318,110 Increase/(Decrease) $220 The purpose of this project is to rapidly provide power during the event of a WE Energies power outage, to provide general redundancy for base power needs, and to provide redundancy for wet weather power needs in the event of a WE Energies power outage. The project includes the recommissioning of a natural gas turbine through reconnecting various piping, reinstalling the electrical switchgear, and reinstalling/reconnecting various other components to allow for operation of the turbine. The change in total project cost is de minimus. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost J06063 Tunnel & Gallery System Hazardous Planning Nov-17 Feb-19 $298,290 Rating Improvements Total $298,290 Previously Approved Total $297,192 Increase/(Decrease) $1,098 The purpose of this project is to follow up in implementing the findings of the MMSD project M01011 completed three years ago. J06063 will develop a strategy on how the connecting tunnels need to be physically separated or reduced to unclassified (to reduce the hazardous area classification) under the NFPA 820 Standard. The scope of the project is to evaluate the possibility of physically separating the connecting tunnels at Jones Island and South Shore Water Reclamation Facilities. Natural gas and digester gas are considered most hazardous in underground tunnels where there is no direct path to ventilate a leak from a pipe. This is a major concern at JIWRF and SSWRF because the vast majority of the tunnel system carries natural gas. In addition, SSWRF also processes and distributes digester gas throughout many areas of the plant. In the event of a leak, the tunnels could act as passages for hazardous atmospheres from building to building and could also contain natural gas/digester gas, which itself is a hazard. The change in total project cost is due to refined cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost J06064 Gaseous Fire Suppression Systems Design Jul-15 Feb-17 $268,554 Construction May-17 Aug-18 $668,297 Post-Constr. Aug-18 Aug-19 $8,214 Total $945,065 Previously Approved Total $828,684 Increase/(Decrease) $116,381 The purpose of this project is to ensure the reliability of wastewater treatment and improve employee safety. The project scope is to evaluate, design and install a gaseous fire suppression system in three control rooms at Jones Island and in two control rooms at South Shore. The previously installed Halon fire suppression system in these rooms has been removed or is no longer functioning. Fire in these staffed rooms poses a direct safety risk to personnel. Fire damage potential in each of these rooms is estimated to range from $175,000 to $2,500,000. This damage would disrupt operations and solids handling, potentially resulting in permit violations or increased costs of solids disposal. The increase in total project cost is due to refined cost estimates for the construction phase. The operating budget impact is not known at this time. 116

130 ID #: Name: Phase Start Finish Cost J06065 Rolling Stock & Other Equipment Construction $14,142,175 Total $14,142,175 Previously Approved Total $14,142,175 Increase/(Decrease) $0 The purpose of this project is to provide a mechanism to replace and purchase various minor rolling stock and equipment at Jones Island that meet the criteria for capital budget financing but do not require extensive cost and schedule management. The project scope will vary each year as existing projects are completed and new projects are added. Currently active or anticipated spending includes several equipment replacements within the Dewatering and Drying Building as well as turbine building control room switchgear replacement. There is no change in total project cost. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost J06066 JI Power Supply Optimization Prelimin. Eng Jun-14 Sep-17 $357,638 Design Jan-18 Aug-18 $53,978 Construction Dec-18 Mar-20 $390,256 Total $801,872 Previously Approved Total $807,167 Increase/(Decrease) ($5,295) The purpose of this project is to improve the overall reliability and safety of Jones Island s power supply. The project scope includes a short circuit analysis, protective device coordination study, arc flash analysis, load flow study, and motor starting study for multiple plant operational modes. The scope also includes adjustments to the load shedding scheme and connecting an existing diesel backup generator to the GE turbine gas compressors. The change in total project cost is due to refined cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost J06068 JI & SS Network Optimizations Design Jan-17 Jan-18 $125,095 Construction Mar-18 Oct-18 $1,141,558 Total $1,266,653 Previously Approved Total $0 Increase/(Decrease) $1,266,653 The purpose of the project is to update equipment that has reached the end of useful service life to current technology and improve control system reliability, performance, and ease of use/maintenance/modification. The project scope includes upgrading the SCADA network switches and servers at the Jones Island and South Shore WRFs. This is a new project. The operating budget impact is not known at this time. 117

131 ID #: Name: Phase Start Finish Cost J06070 D&D Lighting Upgrade Prelimin. Eng Oct-16 Oct-17 $136,951 Design Sep-17 Jun-18 $63,620 Construction Sep-18 Jun-19 $957,256 Post-Constr. Aug-19 Nov-19 $4,540 Total $1,162,367 Previously Approved Total $1,145,246 Increase/(Decrease) $17,121 The purpose of this project is to assess, design and replace the lighting fixtures in the Jones Island Water Reclamation Facility Dewatering and Drying building. The current lighting system has reached the end of its useful life and no longer meets safety requirements. Additionally, the current lighting doesn t meet efficiency standards or align with MMSD s Energy and Sustainability Plan. The scope of this project will include the replacement of light fixtures with higher efficiency lighting technology and add occupancy and photos sensors to the system to allow for lights to be turned off when sunlight meets lighting standards or rooms are unoccupied. The change in total project cost is due to refined cost estimates. The project should have a positive operating budget impact as the result of increased energy efficiency. ID #: Name: Phase Start Finish Cost J06073 Harbor Siphon Area Settlement Mitigation Design Feb-17 Apr-19 $144,688 Construction May-18 Nov-19 $366,273 Post-Constr. Jan-19 Apr-19 $2,751 Total $513,712 Previously Approved Total $0 Increase/(Decrease) $513,712 The purpose of this project is to mitigate issues associated with settlement in the area of the former Harbor Siphons project on Jones Island. Thawing of a freeze wall installed on Jones Island to facilitate construction of the Harbor Siphons project (C07010) is expected to be ongoing for the next 20+ years. Thawing of the freeze wall is causing settlement of District assets in the immediate project area and beyond. The scope of this project is to mitigate settlement issues as they arise. This includes mitigating electrical duct bank settlement issues as well as additional funding to mitigate as of yet unknown asset settlement which is expected to occur in the future. This is a new project. Operating budget impact is unknown at this time. ID #: Name: Phase Cost J99003 Operator Contribution to CIP Six-Year Forecast Total $1,200,000 Total $1,200,000 The operating contract with VWM includes provisions for VWM to participate in current and planned District capital projects. The scope of this project includes VWM work in reviewing the annual capital budget, reviewing and creating requests for new projects, attending meetings, and participation in the implementation of capital projects. Operator Contribution to Capital Improvement Program accounts do not have an approved total project cost. The 2017 expenditures are budgeted at $600,000; the six-year long-range financing plan includes $1.2 million. No significant operating budget impact is expected. ID #: Name: Phase Cost J99006 NFPA 820 Compliance Allowance Six-Year Forecast Total $330,000 Total $330,000 J99006 is an allowance project to address issues associated with National Fire Protection Association (NFPA) compliance at the Jones Island WRF. NFPA 820 is the standard for fire protection in wastewater treatment and collection facilities and establishes requirements for protection against fire and explosion hazards. As issues associated with NFPA compliance are identified, funds may be transferred from this project into the specific project(s) for which those issues have been identified. Allowance accounts do not have an approved total project cost. The long-range financing plan includes $330,000 with $10,000 budgeted for There is no significant operating budget impact. 118

132 South Shore Water Reclamation Facility Primary Treatment Primary treatment involves preliminary and primary treatment of influent flows. Preliminary treatment removes large and untreatable material such as wood, rags, sand, and grit. Primary treatment then collects the preliminary-treated water in large tanks, called clarifiers, to allow heavier solids to settle to the bottom of the tanks and lighter solids to float to the top. The goal of the process is to effectively remove material that can damage downstream equipment and most solids that cannot be treated biologically. ID #: Name: Phase Start Finish Cost S01010 Influent Channel Sampler Design Feb-14 Mar-16 $242,901 Construction Apr-16 Dec-16 $307,906 Post Constr. Jan-17 Oct-17 $5,893 Total $556,700 Previously Approved Total $798,417 Increase/(Decrease) ($241,717) The purpose of this project is to improve the accuracy of influent waste strength monitoring and reporting of South Shore influent. Accurate influent waste strength data are critical in making plant operation decisions and meeting permit requirements. The project scope is to determine a new location and upgrade the influent monitoring system at South Shore. The current system produces sampling results for Biological Oxygen Demand (BOD) and Total Suspended Solids (TSS) which are questioned by staff and inconsistent with other measurements within the system. The District s latest permit for South Shore requires the District to evaluate and identify a corrective action by June 30, 2013, and to implement a solution by December 31, The new sampling system will include a new primary influent sampler and replacement of sampling pumps. The decrease in total project cost is the result of construction bids received. The operating budget impact is not known at this time. South Shore Water Reclamation Facility Secondary Treatment After removal of the solids, the primary-treated water flows to the secondary or biological activated sludge process. This process, called aeration, pumps large amounts of air into the water to permit bacteria and other microorganisms to consume soluble oxygen-demanding pollutants in the aerated water. The pollutants are broken down to mainly cell mass, carbon dioxide, and water. Prior to the introduction of air, an iron salt (pickle liquor or ferric chloride) is added to the water for phosphorus removal. The biologically treated flow is again routed through the secondary clarifier settling basins where the biological solids and the phosphorus precipitate settle and the liquid overflows to the next water reclamation process. 119

133 ID #: Name: Phase Start Finish Cost S02008 SS Capacity Improvements Planning Mar-10 Dec-10 $13,200 Prelimin. Eng Feb-12 Jul-16 $1,558,330 Design Oct-16 Dec-17 $851,433 Construction Nov-18 Jan-22 $4,004,243 Post-Constr. Jan-22 Jan-23 $21,724 Total $6,448,930 Previously Approved Total $5,980,317 Increase/(Decrease) ($468,613) The purpose of this project is to cost-effectively increase the capacity of SS, which will reduce the risk of sanitary sewer overflows, combined sewer overflows, and basement backups. This project will also reduce the scope of future expansion requirements. The scope includes completing the preliminary engineering, design, and construction of the projects recommended in the SS Capacity Analysis report (S06014). The recommended hydraulic improvements include: preliminary treatment overflow weir modifications, primary influent meter replacement, aeration basin step-feed repairs, removing unused meters and valves restricting flow to the aeration facilities and modifying the secondary clarifiers to improve performance. The decrease in total project cost is due to the scope for design and construction of hydraulic capacity improvements for the postsecondary treatment processes being transferred to a new project number S The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost S02012 Biological Phosphorous Removal Prelimin. Eng Mar-14 Feb-17 $338,165 Design Sep-17 Jun-18 $498,247 Construction Oct-18 Mar-20 $3,901,381 Post-Constr. May-20 Sep-20 $12,422 Total $4,750,215 Previously Approved Total $3,820,516 Increase/(Decrease) $929,699 The purpose of this project is to improve the effectiveness of phosphorus removal of the secondary treatment process in order to comply with current and future phosphorous limits in the WPDES permit. The project scope is to study, evaluate, engineer, design and construct the necessary provisions at SS to replace the existing chemical phosphorus removal system by employing enhanced biological phosphorus removal. The increase in total project cost is due to refined cost estimates. The project is anticipated to have a positive operating budget impact as a result of increased energy efficiency and a decrease in chemical use. ID #: Name: Phase Start Finish Cost S02013 Aeration Galleries RAS Header Piping Rehab Design Feb-16 Apr-17 $385,784 Construction Sep-17 Oct-19 $2,705,196 Post-Constr. Dec-19 Jun-20 $6,507 Total $3,097,487 Previously Approved Total $3,120,407 Increase/(Decrease) ($22,920) The purpose of this project is to ensure the integrity of the Secondary Treatment process by replacing return activated sludge (RAS) piping to the aeration basins. The project scope is to replace RAS branch piping, fittings, and components between the RAS discharge header and each of the 28 aeration basins. Due to age and corrosion, sections of piping and components have required significant corrective action. If RAS piping and components are unable to provide service to the aeration basins, then plant capacity will be reduced, which may result in permit violations. Leakage into open gallery areas could result in worker safety issues. The project will also add two redundant RAS pumps to maximize plant capacity in the event a RAS pump is out of service during wet weather. The decrease in total project cost is a result of reduced construction cost estimate. No significant operating budget impact is expected. 120

134 ID #: Name: Phase Start Finish Cost S02014 Secondary Clarifier Idling Control Planning Oct-15 Nov-16 $74,152 Design Jan-18 Dec-18 $123,110 Construction Feb-19 Nov-19 $372,169 Post-Constr. Jan-20 Apr-20 $3,042 Total $572,473 Previously Approved Total $650,235 Increase/(Decrease) ($77,762) The purpose of this project is to provide the ability to idle the back secondary clarifiers at SSWRF during low flows (Batteries 5 and 6). Idling secondary clarifiers improves clarifier performance and would reduce energy and related costs. The project scope involves installing two motor operated stainless steel gates (each 8x10ft) in the existing mixed liquor channels to stop or start flows in Batteries 5 and 6 based on the plant influent flow and install electric motor operators on two existing gates that allow secondary effluent from in-service batteries to flow through Batteries 5 and 6 when they are out of service. The decrease in total project cost is due to refined cost estimates in the construction phase. No significant operating budget impact is expected. South Shore Water Reclamation Facility Advanced Treatment The biologically treated wastewater enters the final treatment process in preparation for discharge into Lake Michigan. Here, sodium hypochlorite is used to disinfect the treated water. Disinfection is the selective destruction of diseasecausing organisms including bacteria, viruses, and amoebic cysts. After chlorination, sodium bisulfite is mixed with the chlorine treated water to remove any chlorine residuals. Removal of chlorine is necessary to ensure no fish toxicity. The water reclamation process is complete and the fully treated water meets all U.S. Environmental Protection Agency and Wisconsin Department of Natural Resources requirements. Plant effluent is then discharged into Lake Michigan. ID #: Name: Phase Start Finish Cost S03003 Post-Secondary Capacity Improvements Design Sep-16 Dec-17 $756,404 Construction Sep-18 Oct-22 $5,069,546 Post-Constr. Nov-22 Nov-23 $21,746 Total $5,847,696 Previously Approved Total $5,847,696 Increase/(Decrease) $0 The purpose of this project is to cost-effectively increase the hydraulic capacity of the South Shore WRF to reduce the risk of sanitary sewer overflows, combined sewer overflows, and basement backups. The scope includes design and construction of hydraulic capacity improvements for the post-secondary processes as recommended by a preliminary engineering study completed under Project S The project scope includes Effluent Pump Station upgrade to 340 MGD firm capacity, disinfection system improvements to pumps, piping, and mixing, and emergency backup generator to support the effluent pump station sluice gates and the disinfection system. There is no change in total project cost. Increases to the operating budget, not expected to be incurred until after 2022, include costs for chemical and energy for flows over 300 MGD. However, these could potentially be offset in operating cost decreases due to improved chemical mixing strategies. 121

135 South Shore Water Reclamation Facility Solids Processing The waste activated sludge from South Shore s secondary clarifiers is pumped to dissolved air flotation thickening, and then to Jones Island for Milorganite production. Biosolids from the primary clarifiers are pumped to the anaerobic digesters. Anaerobic digestion is used to stabilize the biological activity and reduce the biosolids volume. The volatile organics in the bio-solids are converted to gas by bacteria that live and grow in the anaerobic environment and destroy up to 30 percent of the solids. Gas produced by this process fuels engines or heats the digesters. Once treated, the stabilized solids are removed from the digesters, conditioned with chemicals, and thickened with a centrifuge or gravity belt thickener. The thickened sludge may be pumped to Jones Island for Milorganite production or dewatered into a filter cake and is disposed of in a licensed landfill. ID #: Name: Phase Start Finish Cost S04023 Aeration Basin Concrete Rehab - Phase II Design Jul-15 Mar-16 $114,883 Construction May-16 May-18 $2,490,823 Post-Constr. Jul-18 Jan-19 $6,060 Total $2,611,766 Previously Approved Total $2,603,380 Increase/(Decrease) ($8,386) The purpose of this project is to repair aeration basin walls to protect workers and air diffusers from falling concrete. Repairs to concrete walls in eight basins will be required as part of phase II. Concrete repairs at remaining aeration basins are included in a separate capital project (S04030). The change in total project cost is due to refined cost estimates. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost S04024 Digester Gallery Piping Rehab Planning Nov-14 Aug-16 $173,961 Prelimin. Eng May-19 May-21 $1,023,855 Total $1,197,816 Previously Approved Total $5,201,382 Increase/(Decrease) ($4,003,566) The purpose of this project is to identify high risk pipes for which a failure could lead to extensive service disruptions, safety concerns or environmental damage. The project scope is to provide the best engineering approach to assess the condition of the 5,500 feet of digester gas piping, to evaluate the probability of failures occurring, and to develop an approach for preventing future pipe failures at the South Shore Water Reclamation Facility. In the preliminary engineering phase, the project will accurately and comprehensively measure the current pipe wall thickness of critical piping and will assess rates of corrosion and any other forms of pipe degradation. The project also will identify any foreseeable pipe defects and will recommend remedial actions. The decrease in total project cost is due to a decrease in project scope to scale back the evaluation on the digester gas system. No significant operating budget impact is expected. 122

136 ID #: Name: Phase Start Finish Cost S04025 HW Boiler Control Systems Improvements Design Jul-15 May-16 $96,033 Construction Jul-16 May-17 $497,159 Post-Constr. Jun-17 Oct-17 $4,832 Total $598,024 Previously Approved Total $598,024 Increase/(Decrease) $0 The purpose of this project is to increase the reliability and efficiency of the treatment process and building operations by replacing hot water boiler control systems. The project scope is to design and install replacement of instrumentation, burners, blowers, and control systems for boiler #3 and #4. The current equipment was installed in the late 1980s and has reached the end of its useful life. Repair parts are no longer available. These boilers are used to heat the anaerobic digesters as well as select buildings at South Shore. The digesters in turn create digester gas that is used as energy in the treatment process. Upgrading the equipment system is expected to save energy and extend the useful life of the boilers. There is no change in total project cost. The project is expected to have a positive operating budget impact as a result of additional energy efficiency. ID #: Name: Phase Start Finish Cost S04031 Digester Gas Treatment System Design Jan-16 Dec-16 $628,818 Construction Apr-17 Apr-19 $4,039,490 Post-Constr. Jun-19 Sep-19 $6,898 Total $4,675,206 Previously Approved Total $1,410,899 Increase/(Decrease) $3,264,307 The purpose of this project is to reduce downtime of the South Shore engine generators that result from impurities (hydrogen sulfide and siloxane) in the digester gas fuel. Current concentrations of hydrogen sulfide and siloxanes are at levels likely to cause corrosion or damage to engine parts. This project will plan, engineer, design and construct a treatment system which will remove these harmful components from the digester gas, thereby protecting the equipment and reducing downtime. The current project scope provides comprehensive digester gas treatment to remove conventional constituents of concern including moisture, hydrogen sulfide, and siloxanes. The increase in total project cost is due to the transfer of project scope from S04020 and refined construction cost estimates. The project is expected to have a positive operating budget impact because of the reduced need for engine repairs. South Shore Water Reclamation Facility General Projects Projects grouped into this category are projects that do not fit into the other reclamation facility processes. The types of projects can be associated with: ENERGY DISTRIBUTION electrical generation and distribution, hot water and steam generation and distribution, digester gas distribution, and process air generation BUILDINGS AND GROUNDS IMPROVEMENTS capital improvements to non-process buildings and other improvements such as roads and utilities NONSPECIFIC Instrumentation and Control COSTS ASSOCIATED with litigation with non-current capital projects ALL OTHER nonspecific items Projects included in the budget in this area will improve operations, most notably in the upgrade of the instrumentation and control equipment that will help better control the water reclamation process and make use of existing capacity. 123

137 ID #: Name: Phase Start Finish Cost S06010 SS Site Lighting Upgrade Prelimin. Eng Jan-15 Jun-17 $91,301 Design Oct-17 Jul-18 $101,982 Construction Jan-19 Dec-19 $524,653 Post-Constr. Jan-20 Feb-20 $1,446 Total $719,382 Previously Approved Total $713,630 Increase/(Decrease) $5,752 The purpose of this project is to improve the efficiency of the lighting system at South Shore. The project scope is to evaluate all of the existing indoor and outdoor lighting for a possible upgrade if the upgrade can be justified in terms of savings in energy, maintenance, or labor productivity. Existing lighting fixtures have reached the end of their useful life and are failing. As a safety issue, lighting in select buildings and building sections at South Shore facilities require retrofitting or replacement. By replacing all lighting systematically (grouped replacement) the District achieves improved lighting and workplace safety, higher energy efficient product, and lower maintenance costs. Installation of occupancy and daylight photo sensor technology allows for substantial cost savings and is aligned with District energy goals. The change in total project cost is due to refined cost estimates. The project should have a positive operating budget impact as the result of increased energy efficiency. ID #: Name: Phase Start Finish Cost S06015 SS Geotechnical Structural Analysis Prelimin. Eng Apr-16 Mar-20 $544,620 Total $544,620 Previously Approved Total $544,452 Increase/(Decrease) $168 The purpose of this project is to evaluate the structural condition of the many buildings and tanks at South Shore. The project will conduct an engineering and field investigation of the structural condition of the various facilities at South Shore. The goal of the project is to assess if any structural deterioration has occurred. The increase in total project cost is de minimus. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost S06019 Replace W3 Flushing Water Pumps Design Feb-15 Mar-17 $240,204 Construction Jul-17 Dec-18 $747,655 Post-Constr. Jan-19 May-19 $5,646 Total $993,505 Previously Approved Total $935,750 Increase/(Decrease) $57,755 The purpose of this project is to ensure the reliability of the South Shore W3 water system. The project scope is to design, construct, and install the replacement of eight W3 water pumps (four on the lower site and four on the upper site). The pumps are over 25 years old and have reached the end of their useful life. The W3 water system is nonpotable water used in the treatment process for cooling water, maintenance, and chemical dilution. The increase in total project cost is due to refined cost estimates. A positive operating budget impact is expected as a result of increased energy efficiency. 124

138 ID #: Name: Phase Start Finish Cost S06022 Building 326 Site Improvements Design Feb-15 Mar-17 $230,109 Construction Jul-16 Apr-18 $1,116,697 Post-Constr. May-18 Sep-18 $4,974 Total $1,351,780 Previously Approved Total $914,671 Increase/(Decrease) $437,109 The purpose of the project is to alleviate flooding at the entrances to Building 326 at South Shore. The project scope is to design and construct storm sewer and paving improvements for long-term flood protection at Building 326. There have been several incidents of storm water flooding into Building 326 through five door entrances. Interim flood protection has been installed to keep water from entering through the doors. Storm sewer and paving site improvements are needed to provide positive drainage away from the building. Preliminary engineering investigation indicates the capacity of the existing storm sewer system at Building 326 is exceeded during a five-year storm. Expanded pavement replacement was added to the project, requiring additional design and construction phases to be added to the project to facilitate the quick replacement of the road. There are generator, electrical, and control equipment installations in Building 326 which are critical to overall operations at South Shore. The increase in total project cost is due to the expanded scope and refined cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost S06026 SS Building Roof Replacement - Phase II Design Sep-14 Feb-16 $238,690 Construction Jul-16 Sep-17 $587,390 Post-Constr. Oct-17 May-18 $4,205 Total $830,285 Previously Approved Total $830,239 Increase/(Decrease) $4 The purpose of this project is to rehabilitate or replace the roofs of the buildings at South Shore, which protect people, equipment, and processes from weather, animals, birds, and other elements. Maintaining buildings is necessary to efficiently operate and maintain the treatment process. The project includes the roofs on buildings 327, 328, 331, 333, 334, 335, 336, 344, 346, 347, 351, 355, 359, 360, 380, 384, and 385. This will include an initial review of the condition information and prioritization of the roof rehabilitations and replacements. The project will then proceed with the design and construction of roof replacements. The change in total project cost is de minimus. The operating budget impact is approximately $35,000 for work deemed OM. ID #: Name: Phase Start Finish Cost S06027 Tunnels Concrete Rehabilitation Design Jan-16 Mar-17 $283,582 Construction Jun-17 Nov-18 $1,491,456 Post-Constr. Nov-18 May-19 $8,903 Total $1,783,941 Previously Approved Total $1,537,499 Increase/(Decrease) $246,442 The purpose of this project is to maintain the effective and efficient operations at South Shore. The project scope is to design and rehabilitate concrete tunnels at SS. These tunnels, constructed in the 1960s and the 1980s, house all of the process, utility piping, electrical power distribution, and control wiring for the lower portion of SS. Water infiltration into these tunnels damage the assets housed within, damage the tunnel itself, and can cause employee safety issues. Damage to the assets within the tunnel can lead to process outages, inefficient operations, and ineffective wastewater treatment. The increase in total project cost is due to design and construction phase cost estimate revisions as well as inflation. No significant operating budget impact is expected. 125

139 ID #: Name: Phase Start Finish Cost S06028 Central Control Building H2S Removal System Prelimin. Eng Aug-15 Mar-16 $40,948 Design Jun-16 Feb-17 $426,004 Construction May-17 Aug-18 $558,144 Post-Constr. Aug-18 Aug-19 $11,040 Total $1,036,136 Previously Approved Total $588,300 Increase/(Decrease) $447,836 The purpose of this project is to improve the reliability of critical treatment process computer equipment currently located in the Central Control Building 311 at SS. Hydrogen sulfide (H2S) from the surrounding primary clarifier area enters the Building 311, causing corrosion issues with critical electronic equipment including servers, hard drives, and computer circuit boards. The scope of this project included a Preliminary Engineering phase to evaluate life cycle cost of Building 311 H2S treatment versus relocating the South Shore control center and related full time personnel to abandoned laboratory space on the first floor of Administration Building 378. The evaluation determined it is more cost effective to relocate the control center to Building 378. Work related to a Building 311 H2S treatment system is removed from the project scope. Work related to renovations and improvements to move the control center and related full time staff to Building 378 are added to the project scope. The increase in total project cost is due to updated construction cost estimates and inflation. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost S06029 Med Voltage Switchgear Replacement Design Oct-15 Nov-16 $472,179 Construction Feb-17 Aug-18 $4,055,611 Post-Constr. Oct-18 Feb-19 $7,276 Total $4,535,066 Previously Approved Total $3,040,655 Increase/(Decrease) $1,494,411 The purpose of this project is to improve the reliability of the South Shore electrical power system. The project scope is to design and install a replacement to the medium voltage switchgear. The current switchgear and air type circuit breakers are nearly 40 years old. This equipment is the heart of the SS electrical system as it provides power, through several substations, to the great majority of the facility. The replacement switchgear will be constructed at a nearby location with a new foundation, building enclosure and new electrical cabling to the substations and the onsite generation system. The project also includes replacement of one motor control center. The increase in total project cost is due to the addition of an arc flash study and electrical cabling to the project scope, and updated construction cost estimates. No significant operating budget impact is expected. ID #: Name: Phase Cost S06032 SS Rolling Stock & Other Equipment Construction $11,259,041 Total $11,259,041 Previously Approved Total $11,481,541 Increase/(Decrease) ($222,500) The purpose of this project is to provide a mechanism to replace and purchase various minor rolling stock and equipment at South Shore that meet the criteria for capital budget financing but do not require extensive cost and schedule management. The project scope will vary each year as existing projects are completed and new projects are added. Currently active or anticipated spending includes effluent pump component replacement/reconditioning as well as secondary plant control wiring and conduit replacement. The operating budget impact is not known at this time. 126

140 ID #: Name: Phase Start Finish Cost S06033 Upgrade Medium & Low Voltage MCCs Design Mar-16 Apr-17 $640,891 Phase 1 Construction Jul-17 Aug-19 $3,742,835 Post-Constr. Sep-19 Jan-20 $6,240 Total $4,389,966 Previously Approved Total $4,327,606 Increase/(Decrease) $62,360 The purpose of this project is to replace seventeen motor control centers (MCC) at South Shore that are over 40 years old and have reached the end of their useful life. The current motor control centers are beginning to fail and repair parts are difficult to find. The MCCs will include power monitoring equipment with networking to monitor energy usage. The project scope also includes improvements in the MCC replacement areas related to NFPA 820. The change in total project cost is due to additional design phase expenses and inflation. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost S06036 Gas Compressor 5 DG Enhancements Prelimin. Eng Oct-16 May-17 $54,514 Total $54,514 Previously Approved Total $0 Increase/(Decrease) $54,514 The project scope is to perform preliminary engineering to evaluate and recommend mechanical and control modifications of Digester Gas Compressor No. 5 (M ) to improve its functionality. Digester Gas Compressor No. 5 provides digester gas only to engine generator 5 and does not have a redundant unit. The compressor skid operation is unreliable as it experiences frequent faults due to low inlet pressure conditions and high discharge pressure conditions. The purpose of this project is to identify potential major mechanical and control modifications that will return the skid to service. This is a new project. No significant operating budget impact is expected. ID #: Name: Phase Cost S99003 Operator Contribution to CIP Six-Year Forecast Total $600,000 Total $600,000 The operating contract with Veolia Water Milwaukee (VWM) includes provisions for VWM to participate in current and planned District capital projects. The scope of this project includes VWM work in reviewing the annual capital budget, reviewing and creating requests for new projects, attending meetings, and participation in the implementation of capital projects. Operator Contribution to Capital Improvement Program accounts do not have an approved total project cost. The 2017 expenditures are budgeted at $300,000; the six-year long-range financing plan includes $600,000. No significant operating budget impact is expected. 127

141 Interplant Pipeline A 12-mile pipeline that connects the Jones Island and South Shore water reclamation facilities allows the transfer of sludge between the water reclamation facilities. This interplant pipeline aids in the production of Milorganite because waste activated sludge and digested sludge can be conveyed to Jones Island where Milorganite is produced. The primary sludge from Jones Island can be sent to South Shore solids handling facilities and then to either farm fields or sanitary landfills for final disposal outside of the plant. ID #: Name: Phase Start Finish Cost P01003 Interplant Pipeline Improvements at South Shore The Interplant Sludge (IPS) System consists of two pump stations and four pipes that allows transfer of solids between Jones Island and South Shore for the purpose of maximizing Milorganite production and other bio-solids environmentally sustainable recycling methods. The purpose of this project is to maintain capacity and operational flexibility for solids processing between Jones Island and South Shore. The IPS at South Shore is over 20 years old and much of its support equipment has reached the end of its useful life. The project renewed severely corroded IPS pipe segments and replaced 16 inoperable valves needed for pipe isolation. Engineering evaluation concluded the majority of existing IPS pipelines will need to be replaced in a future project. The decrease in total project cost is due to removing the jetting of IPS Pipeline 2 from the project scope and adding scope to investigate alternatives to replace the four IPS pipelines at South Shore. The operating budget impact is not known at this time. Prelimin. Eng Nov-08 Sep-15 $1,344,016 Design Apr-14 Apr-17 $335,483 Construction Jan-15 Jan-16 $1,091,671 Post-Constr. Apr-17 Dec-17 $8,000 Total $2,779,170 Previously Approved Total $3,629,751 Increase/(Decrease) ($850,581) The IPS is a series of four pipes that allows transfer of solids between Jones Island and South Shore for the purpose of maximizing Milorganite production and other biosolids environmentally sustainable recycling methods. ID #: Name: Phase Start Finish Cost P01005 Interplant Pipeline Improvements - Phase II Design Apr-16 Mar-20 $817,157 Construction May-17 Feb-22 $11,056,029 Post-Constr. Aug-22 Mar-23 $7,591 Total $11,880,777 Previously Approved Total $12,899,016 Increase/(Decrease) ($1,018,239) The IPS System consists of two pump stations and four pipes that allows transfer of solids between Jones Island and South Shore for the purpose of maximizing Milorganite production and other bio-solids environmentally sustainable recycling methods. The purpose of this project is to maintain capacity and operational flexibility for solids processing between Jones Island and South Shore. This project will replace key system components such as pumps, motors, variable frequency drives, magnetic flow meters, valves, and piping at the Jones Island IPS Pump Station, the South Shore IPS Station and the IPS Valve Vaults located between the two facilities. The project will also restore the cathodic protection system for the IPS pipelines along their entire length between the two water reclamation facilities. Cathodic Protection is used to minimize corrosion of buried infrastructure. The project will also restore capacity and reduce energy consumption of the IPS system by increasing the pump capacity and reducing the pump pressure by cleaning and pigging the IPS pipelines. The IPS is over 20 years old and much of its support equipment has reached the end of is useful life. The decrease in total project cost is due to the transfer of pipeline cleaning costs from the Capital Budget to the Operations and Maintenance Budget. The operating budget impact is not known at this time. 128

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143 Landfill Gas Pipeline ID #: Name: Phase Start Finish Cost P02003 LFG Pipeline Pigging Station Prelimin. Eng Jan-16 Jun-17 $247,512 Design Mar-20 Mar-21 $166,371 Construction Jun-21 Jun-22 $519,117 Post-Constr. Aug-22 Aug-23 $7,390 Total $940,390 Previously Approved Total $929,164 Increase/(Decrease) $11,226 The purpose of the project is to evaluate locations and design two-way pigging stations for the south end of the landfill gas pipeline. The ability to inspect and maintain the pipeline is required by the Wisconsin Public Service Commission for the project to continue. A pigging station which was proposed for College Avenue within a prior project was not viable and this project will replace the originally proposed station. The change in total project cost is due to refined cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost P02004 Landfill Gas System - Metro Landfill Design Jul-16 Jan-17 $546,235 Construction Jan-17 Jan-18 $7,823,332 Post-Constr. Mar-18 Jan-19 $10,394 Total $8,379,961 Previously Approved Total $8,379,960 Increase/(Decrease) $1 The purpose of the project is to treat gas from the Waste Management Metro Landfill and deliver it to the District s landfill gas (LFG) pipeline for use at JI. The project will construct a new LFG treatment and conveyance facilities at Waste Management Metro Landfill. LFG is a source of energy for producing electricity for plant purposes, dryer fuel, using combustion waste heat to produce Milorganite at JIWRF. LFG is a renewable fuel, and its use at Jones Island in place of natural gas results in operational cost savings and an overall reduction in greenhouse gases. This project was created in 2016 by Commission action. The change in total project cost is de minimus. The project is expected to have a positive operating budget impact due to lower costs than natural gas. 130

144 Conveyance Facilities The District owns and operates an extensive system of sanitary sewers used to collect, convey, and in some cases, store wastewater originated by local sewer systems. The local sewer systems are operated and maintained by governments within the District and those contracted with the District. Wastewater generated from households and businesses flows to the local systems, is collected by the District s system, and is conveyed to the District s two Water Reclamation Facilities. The budget divides the District s conveyance system into three components: the Metropolitan Interceptor Sewer System, the Inline Storage System, and the Central Control System. Total Expenditures (dollars in thousands) $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Conveyance System Actual Estimate Budget Forecast 131

145 Metropolitan Interceptor Sewer System The District s Metropolitan Interceptor Sewer (MIS) system, a network of sanitary sewers, is operated and maintained through a contract with Veolia Water Milwaukee (VWM). The purpose of the MIS system is to intercept wastewater from local sanitary and combined sewer systems within the service area. Wastewater within the MIS system is subsequently conveyed to either the Jones Island or South Shore Water Reclamation Facilities. The MIS system is divided into seven subsystems for purposes of flow monitoring analysis and system control. In the combined sewer area where both sanitary and storm water systems are combined, the MIS subsystem consists of a highlevel and a low-level sewer system. The low-level system provides service to the low-lying areas along the Milwaukee, Menomonee, and Kinnickinnic rivers. Flow in both high and low-level systems is conveyed by gravity to either of two siphon chambers (East Erie Street or East Bruce Street) and is then conveyed via a double-barreled siphon to a wet well at Jones Island. Flows can also be diverted between the subsystems for conveyance to either Jones Island or South Shore. Moreover, flows can be diverted to the Inline Storage System, a large storage facility underground. Diversion of flow between subsystems is accomplished by manually operating gates and flow diversion devices or by operator initiation from the District s Central Control System. Inline Storage System The Inline Storage System (ISS), or Deep Tunnel System, consists of 21.4 miles of tunnels 300 feet underground and can store up to 432 million gallons of wastewater. The cornerstone of the Water Pollution Abatement Program (WPAP), the ISS became fully operational in The Northwest Side Relief Sewer (NWSRS) went on-line in early This storage tunnel is 7.1 miles long, 20 feet in diameter and adds 89 million gallons of storage capacity to the existing system, for a total of 494 million gallons. The ISS and NWSRS store peak wastewater flows that temporarily exceed the capacity of either the Water Reclamation Facilities or the MIS system. The system is designed to substantially reduce the number of bypasses and the discharge of untreated or partially treated wastewater into Lake Michigan and area streams. During wet weather periods, the MIS system surcharges when the hydraulic capacity of the system has been reached. When this happens, pressure causes the flow to seek a free outfall. Under the original MIS system design, this outfall (also referred to as an overflow) flowed into area rivers and Lake Michigan. Since completion of the WPAP, when the system becomes surcharged the near-surface collector system conveys excess flows to the ISS via a series of 24 drop shafts. The ISS system was designed to eliminate overflows from the separated sewer area and to greatly reduce overflows in the combined sewer area. The ISS was designed to capture most, but not all, of the flows caused by extreme wet weather events. Central Control System Using continuous and intermittent monitors, flows within the MIS system and the local sewer system are monitored. Continuous monitors are permanently installed in over 300 locations and primarily use a wireless communication system to transmit data back to the District s Central Control System. Intermittent monitors are temporarily installed and rely on field crews to retrieve the data. Along with monitoring flow data, the Central Control System allows remote operation of the conveyance system. A single operator can divert flow from one subsystem to another, from one water reclamation facility to another or to the ISS. The goal of the Central Control System is to ensure that water reclamation facility and conveyance capacity is utilized in the most efficient manner. The 2017 Capital Budget includes $10.7 million for work on various conveyance projects. Please refer to project detail on the following pages for information on the project purpose, scope, cost estimate and impact on the O&M budget. 132

146 Subsystem 1 South Shore Main Branch Metropolitan Interceptor Sewer System Subsystem 1 is located in the southern part of Milwaukee County. While some areas of Subsystem 1 can be diverted to either the Jones Island or South Shore Water Reclamation Facilities, a majority of flows are tributary to South Shore. Municipalities that discharge to Subsystem 1 are the cities of Cudahy, Franklin, Greenfield, Milwaukee, Oak Creek, St. Francis, and West Allis, and Village of West Milwaukee. There are no projects for this subsystem in Subsystem 2 Southwest Branch Metropolitan Interceptor Sewer System Subsystem 2 is located on the south side of the planning area and its flows are tributary to South Shore. The communities discharging to this subsystem are the cities of Franklin, Greenfield, Milwaukee, Muskego, New Berlin, Oak Creek and West Allis, the villages of Caledonia, Greendale, and Hales Corners. ID #: Name: Phase Start Finish Cost C02008 Force Main Rehabilitations Design May-10 Jan-12 $4,493 Prelimin. Eng May-10 Dec-17 $2,821,282 Total $2,825,775 Previously Approved Total $8,416,059 Increase/(Decrease) ($5,590,284) The purpose of this project is to assess the probability of failure through a condition assessment of the force mains associated with the Franklin/Muskego and Greenfield Park pump stations. These force mains have not been inspected since they were put into service 25 years ago. In the 2017 budget, there has been a regrouping of force main pipelines with their respective sub-basin which led to a decrease in the scope and cost of this project and the creation of new projects. The District will complete field investigations including internal and external inspections to detect pipe wall fractures, changes in material, location and placement of reinforcement, pipe wall thickness, and voids. Using this information, the District will perform an analysis and recommend the appropriate pipe rehabilitation solutions. The decrease in total project cost is due to the decreased project scope. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost C02010 Force Main Franklin Muskego Rehabilitation Design Jul-17 Jan-18 $122,089 Project Construction May-18 Nov-18 $880,919 Post-Constr. Jan-19 Apr-19 $2,526 Total $1,005,534 Previously Approved Total $0 Increase/(Decrease) $1,005,534 The purpose of this project is to address the rehabilitation, replacement, and long term monitoring plan for the Franklin/Muskego Force Main based on the final recommendations from project C Several locations of the Franklin Muskego Force Main pipe have been identified that may have an accelerated corrosion rate. The project is to identify potential issues and prevent any leaks and separate sewer overflows (SSO) that may occur if the pipe repair is not addressed. This is a new project. No significant operating budget impact is expected. 133

147 ID #: Name: Phase Start Finish Cost C02011 Force Main Greenfield Park Rehabilitation Project Design Jun-17 Dec-17 $243,550 Construction Apr-18 Oct-18 $3,208,611 Post-Constr. Nov-18 Feb-19 $3,604 Total $3,455,765 Previously Approved Total $0 Increase/(Decrease) $3,455,765 The purpose of this project is to address the rehabilitation, replacement, and long term monitoring plan for the Greenfield Park Force Main based on the final recommendations from project C Several locations of the Greenfield Park Force Main pipe have been identified that may have an accelerated corrosion rate. This project is to identify potential issues and prevent any leaks and consequently SSOs that may occur if the pipe repair is not addressed. This is a new project. No significant operating budget impact is expected. Subsystem 3 Northwest Branch Metropolitan Interceptor Sewer System Subsystem 3, serving the western part of the service area, can have most of its flow diverted to either water reclamation facility. A small portion of the area is tributary to South Shore only. Municipalities that discharge to Subsystem 3 are the cities of Brookfield, Mequon, Milwaukee, New Berlin, Wauwatosa, and West Allis; and the villages of Butler, Elm Grove, Germantown, and Menomonee Falls. ID #: Name: Phase Start Finish Cost C th St. MIS Improvement Planning Oct-10 Mar-11 $449 Prelimin. Eng Mar-11 Nov-11 $47,348 Design Jun-15 Nov-17 $997,434 Construction Feb-18 Mar-19 $16,302,588 Post-Constr. Apr-19 May-19 $33,646 Total $17,381,465 Previously Approved Total $12,522,985 Increase/(Decrease) $4,858,480 The purpose of the project is to reduce the risk of a sanitary sewer overflow due to failure of the MIS in 107th Street from Silver Spring to Harvest, in Harvest from 107th to the Little Menomonee River, along the Menomonee River from Harvest to Hampton, and to provide a cost-effective service life of an additional 50 years or more. The project scope is to plan, design, and construct a solution to the failing MIS in the previously described area. This section of MIS is currently severely degraded and at a high risk of failure, which puts the District at risk of causing basement backups, sanitary sewer overflows, and permit non-compliance. This MIS was built in 1956, and rehabilitated in Because the MIS is not that old and is in such poor condition, this project will include: The preparation of a root cause analysis or a technical memorandum determining the cause(s) of the degradation; A preliminary engineering investigation that will include a review of the 2020 Facilities Plan flow requirements and flow monitoring data, defining specific project objectives, development and evaluation of alternatives, and recommending an alternative; Engineering design of the recommended alternative and preparation of construction bid documents; Construction of the MIS improvements. The increase in total project cost is primarily due to a higher construction cost estimate. No significant operating budget impact expected. 134

148 ID #: Name: Phase Start Finish Cost C03012 ZIC MIS Lining & Manhole Reconfiguration Design Oct-13 Jul-18 $181,426 Construction Jun-20 Mar-21 $925,574 Post-Constr. Mar-21 Jul-21 $6,295 Total $1,113,295 Previously Approved Total $1,113,295 Increase/(Decrease) $0 The purpose of this project is to protect the District MIS from additional fill being placed over it as part of the Wisconsin Department of Transportation s (WisDOT) Zoo Interchange (ZIC) project. The project scope is to evaluate the need for and subsequently install a structural liner within the MIS from manhole MH09407 to MH09403 and reconfigure a manhole. WisDOT has paid the District $1,100,000 for the cost of the project. There is no change to total project cost. No significant operating budget impact is expected from this project. Subsystem 4 Northeast Branch Metropolitan Interceptor Sewer System Subsystem 4 is located in the central and northeast parts of the planning area. Some flows in Subsystem 4 can be diverted to either water reclamation facility. Flow that cannot be diverted is tributary to South Shore. Municipalities served by Subsystem 4 are the cities of Glendale, Mequon, Milwaukee, Wauwatosa and West Allis; and the villages of Bayside, Brown Deer, Fox Point, River Hills, and Thiensville. ID #: Name: Phase Start Finish Cost C04010 Mill/Green Bay/Green Tree MIS Relief Planning Jan-16 Dec-17 $1,227,077 Design Sep-18 Apr-21 $5,748,083 Construction Sep-21 Oct-26 $49,411,855 Post-Constr. Oct-26 Mar-27 $141,631 Total $56,528,646 Previously Approved Total $55,413,213 Increase/(Decrease) $1,115,433 The purpose of this project is to reduce SSOs and provide conveyance relief to the 72-inch MIS from West Green Tree Road and North River Road at Bypass Structure BS0404 to West Mill Road and North Sydney Place at Diversion Chamber DC0409. In both 2014 and 2015, overflows occurred at BS0404 while the ISS was available for inflows from this area. This is an indication that enough development has occurred to cause a need for conveyance enhancement or relief of the 72-inch MIS downstream of BS0404. The scope of this project will include a hydraulic evaluation to determine a solution that will address the 72-inch MIS, as well as, other known conveyance issues on the northeast side of the District s service area. Cost estimates for this project were based on conveyance relief for 8,300 linear feet of 108-inch sewer and 12 manholes with depths between 20 and 50 feet. The increase in total project cost is due to refined construction cost estimates. No significant operating budget impact is expected from this project. 135

149 Subsystem 5 North Side High Level Branch Metropolitan Interceptor Sewer System Subsystem 5 is located in the northeastern part of Milwaukee County. Most of this subsystem s flows are tributary to Jones Island. Flow from River Hills and portions of Glendale can be diverted to South Shore. Municipalities discharging within Subsystem 5 are the cities of Glendale, Mequon, and Milwaukee; and the villages of Brown Deer, River Hills, Shorewood, and Whitefish Bay. ID #: Name: Phase Start Finish Cost C05041 Basin H MIS PCB Remediation and Design Jan-06 Dec-18 $1,683,432 Rehabilitation Construction Nov-06 Aug-23 $6,133,954 Post-Constr. Sep-23 Jan-24 $405,612 Total $8,222,998 Previously Approved Total $8,068,663 Increase/(Decrease) $154,335 The purpose of the project is to reduce the risk of a sanitary sewer overflow due to the failure of the Basin H MIS and provide a cost-effective service life of an additional 50 years or more. The project scope is to design and implement rehabilitation of the MIS located in Basin H of the Central MIS sewer system. It runs roughly adjacent to the Milwaukee River from Auer Avenue to Hampton Avenue northward and from Auer Avenue to Milwaukee Street southward. This project includes removing poly chlorinated biphenyl (PCB) contaminants, installing joint seals and repairing longitudinal cracks in pipe segments, and rehabilitating manholes to provide additional 50-years of service life. The increase in total project cost is due to the addition of environmental engineering oversite to the project. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost C05051 Edgewood MIS Extension Prelimin. Eng Jul-17 Dec-19 $49,000 Design Jul-20 May-21 $578,400 Construction Sep-21 Feb-23 $5,085,145 Post-Constr. Apr-23 Aug-23 $8,501 Total $5,721,046 Previously Approved Total $0 Increase/(Decrease) $5,721,046 The purpose of the project is to reduce inflow and infiltration (I&I) into the deep tunnel and treatment system. The project scope will construct approximately 1,500 feet of 66-inch near surface collector sewer near Edgewood Ave. At least two large structures and 4 standard District manholes will be modified with this project. Reducing clear water from the District s systems will result in a greater level of service for the District s facilities. This is a new project. The operating budget impact is not known at this time. 136

150 Subsystem 6 South Side High Level Branch Metropolitan Interceptor Sewer System Subsystem 6 is located in the southern half of Milwaukee County. Some areas of Subsystem 6 can be diverted to either the Jones Island or South Shore Water Reclamation Facilities. Some areas are tributary only to Jones Island and some only to South Shore. Municipalities that discharge to Subsystem 6 are the cities of Cudahy, Greenfield, Milwaukee, St. Francis, and West Allis, and the Village of West Milwaukee. ID #: Name: Phase Start Finish Cost C06021 S. 27th Howard to Euclid MIS Rehab Planning Jan-13 Jun-14 $63,550 Design Apr-15 May-17 $543,581 Construction May-19 Sep-20 $4,410,878 Post-Constr. Oct-20 Feb-21 $6,865 Total $5,024,874 Previously Approved Total $5,039,935 Increase/(Decrease) ($15,061) The purpose of the project is to reduce the risk of a SSO due to the failure of the South 27th Howard to Euclid MIS and provide a cost-effective service life of an additional 50 years or more. The project scope is to rehabilitate approximately 3,750 feet of 39-inch special section MIS sewer and associated manholes between Howard and Euclid Avenue. This project is recommended based on the sewer televising inspection program review. Seven out of nine sections of sewer from West Howard Avenue to West Euclid Avenue have been rated as 4 or 5 based on Veolia s PACP sewer review (with 5 being the worst rating). Typical defects include deterioration of concrete. The change in total project cost is due to inflation, project staffing, or updated costs to reflect market conditions. The project is expected to have a positive operating budget impact as the abandonment of 675 lineal feet of sewer will reduce the need for sewer televising. Subsystem 7 Low Level Branch Metropolitan Interceptor Sewer System Subsystem 7 in the east central portion of Milwaukee County consists of the combined sewer service area of Milwaukee and some scattered separate sanitary sewer areas surrounding it. These flows are tributary to Jones Island only. The Municipalities discharging to Subsystem 7 are the cities of Milwaukee and St. Francis and the Village of West Milwaukee. ID #: Name: Phase Start Finish Cost C07036 Siphons Assessment/Inspection Prelimin. Eng Oct-17 May-19 $1,735,676 Total $1,735,676 Previously Approved Total $0 Increase/(Decrease) $1,735,676 The purpose of this project is to provide a condition assessment of identified siphon pipes. The project scope includes an investigation of pipe wall thickness, assessment of rates of corrosion or other forms of degradation of pipe strength, and recommendations of actions to be taken. Many of the siphons are 70 to 90 years old and consist of concrete or cast iron pipe. There is comparatively little known about the existing condition of these siphons, particularly cast iron and monolithic concrete siphons built before the 1940s. The District will have a better understanding of its siphons pipes in terms of condition, failure mechanism and location, specific inspection techniques, and analysis of risk avoidance regarding permit violations in the event of a failure. This is a new project. The operating budget impact is not known at this time. 137

151 ID #: Name: Phase Start Finish Cost C07037 South Shore Force Main Assessment Prelimin. Eng Feb-17 Oct-18 $967,481 Total $967,481 Previously Approved Total $0 Increase/(Decrease) $967,481 The purpose of this project is to investigate the South Shore Force Main pipe to determine the risk of leaks leading to a sewerage overflow. The project scope includes an investigation of pipe wall thickness, assessment of rates of corrosion or other forms of degradation of pipe strength, and recommendations of actions to be taken. The project will provide the location of potential corrosion along the force main pipe alignment as well as a prioritization of the anomalies observed. This is a new project. The operating budget impact is not known at this time. General Interceptor Sewer System Metropolitan Interceptor Sewer System Projects grouped in this category are projects that benefit the overall Interceptor Sewer System or cannot be attributed to a single subsystem. ID #: Name: Phase Start Finish Cost C98044 MIS Abandonment Construction Jan-13 Jan-23 $725,650 Total $725,650 Previously Approved Total $1,649,602 Increase/(Decrease) ($923,952) The purpose of this project is to reduce the total length of sewers that the District is responsible for by abandoning sewers that are no longer necessary. Abandoning unnecessary MIS segments reduces I/I into the District s system, maintenance costs associated with these sewers and the likelihood of overflows. This project consists of sewer abandonments in multiple locations including: In North Sherman, north of Dean; Along and under the Menomonee River near 84 th Street (extended); In Oregon (Menomonee Special wood sewer) from Water Street to 5 th Street; In West Dickinson; West Center St; 1 st /Water/Seeboth; Kinnickinnic River Parkway; The decrease in total project cost is due to refined construction estimates. The project is expected to have a positive operating budget impact as reducing the amount of I/I that must be treated as well as reducing the amount of sewer that requires periodic maintenance costs should reduce O&M costs. 138

152 ID #: Name: Phase Start Finish Cost C98047 Access Hatch Covers Construction Jan-13 Dec-22 $1,810,131 Total $1,810,131 Previously Approved Total $1,823,511 Increase/(Decrease) ($13,380) The purpose of this project is to improve the reliability of conveyance facility assets. The project scope is to design and construct replacement access hatch covers throughout the conveyance system. Hatch covers are typically installed along with new sewers for the purpose of providing ongoing access to conveyance facilities for the purpose of maintenance and monitoring. The useful life of a hatch cover is typically less than the typical sewer and thus requires a more frequent replacement schedule. The change in total project cost is due to refined cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost C98051 Conveyance Gate Rehab, Phase 3 Design Jun-15 Jun-16 $331,473 Construction Sep-16 Feb-18 $3,345,015 Post-Constr. Apr-18 Oct-18 $5,386 Total $3,681,874 Previously Approved Total $3,712,733 Increase/(Decrease) ($30,859) The purpose of this project is to ensure the reliability and effectiveness of controlling flow within the District s conveyance system to maximize wastewater treatment and minimize sewerage overflows and basement backups. The project scope is to design and construct the rehabilitation of 11 gate systems at drop shaft sites and diversion chambers within the District conveyance system. The work will include, as applicable, the gate position indicators, gate actuators, and gates used in the operation of the conveyance system. The scope was transferred from project C The decrease in total project cost is due to revised construction cost estimates. No significant operating budget impact is expected from this project. ID #: Name: Phase Start Finish Cost C98052 Miscellaneous Sewer Rehab Design Apr-17 Apr-20 $55,759 Construction Sep-21 Feb-22 $552,071 Post-Constr. Apr-22 Jul-22 $4,939 Total $612,769 Previously Approved Total $8,895,227 Increase/(Decrease) ($8,282,458) Approximately 75 miles of MIS has been identified that currently functions primarily as local municipal sewer. Discussion with the appropriate municipalities regarding the transfer of these sewers from the District to the local municipality is ongoing. Bringing these sewer segments up to at least a National Association of Sewer Service Companies (NASSCO) 3 rating would allow the municipality some assurance that the segments should have at least another 20 years of service life. This is one of the conditions needed to obtain municipal approval of the transfer of these sewers from the District to the municipality. The scope includes addressing all identified NASSCO 4 and 5 defects in the segments of MIS that may have ownership transferred to a local municipality. This effort is being coordinated with the District s Asset Management Program (AMP). When sewers receive condition ratings of 4 or 5, the AMP develops plans to rehabilitate or replace the sewers. The decrease in total project cost is due to removal of future uncertain costs related to sewer segments not yet identified. As specifically identified, future costs will be added to the project. The project is expected to have a positive operating budget impact. 139

153 ID #: Name: Phase Start Finish Cost C98053 Conveyance Gate Rehab, Phase 4 Design Jan-16 Mar-17 $396,455 Construction Jun-17 Aug-18 $2,964,020 Post-Constr. Oct-18 Apr-19 $7,305 Total $3,367,780 Previously Approved Total $3,320,388 Increase/(Decrease) $47,392 The purpose of this project is to ensure the reliability and effectiveness of controlling flow within the District s conveyance system to maximize wastewater treatment and minimize sewerage overflows and basement backups. The project scope is to design and construct the rehabilitation of nine gate systems at drop shaft sites and diversion chambers within the District conveyance system. The work will include, as applicable, the gate position indicators, gate actuators, and gates used in the operation of the conveyance system. The change in total project cost is due to revised construction cost estimates. No significant operating budget impact is expected from this project. ID #: Name: Phase Start Finish Cost C98054 Force Main Cathodic Protection Planning Oct-17 May-19 $745,693 Total $745,693 Previously Approved Total $0 Increase/(Decrease) $745,693 The purpose of this project is to assess where potentially stray current interference from other utility metallic pipes such as gas, water, electric, telephone, oil, or railway could be located as hot spots within the District s metallic pipe network. When hot spots are identified, a combined effort will be established with all pipeline utility owners at each of the individual sites to coordinate efforts and to eliminate the effect of stray current interference, which will reduce the possibility of external corrosion. This is a new project. No significant operating budget impact is expected from this project. ID #: Name: Phase Start Finish Cost C98055 Conveyance Equipment Replacement Planning Jan-17 Dec-22 $600,000 Total $600,000 Previously Approved Total $0 Increase/(Decrease) $600,000 The purpose of the project is to provide budgeted funding for conveyance system equipment replacements. Project scope is variable and is based on the need for conveyance system equipment replacements that arise. Projects are generally replacement in nature and do not need significant design that would cause the work to be managed as a stand-alone project. This is a new project. No significant operating budget impact is expected from this project. ID #: Name: Phase Start Finish Cost C99002 Operator Contribution to CIP Six-Year Forecast Total $394,387 Total $394,387 The operating contract with VWM includes provisions for VWM to participate on current and planned District capital projects. The scope of this project includes VWM work in reviewing the annual Capital Budget, reviewing and creating requests for new projects, attending meetings, and participation in the implementation of capital projects. Operator Contribution to CIP accounts do not have an approved total project cost. The 2017 expenditures are budgeted at $200,778; the six-year longrange financing plan includes $394,387. No significant operating budget impact is expected from this project. 140

154 Inline Storage System Combined Sewer Overflow Structures Combined Sewer Overflow (CSO) Structures are used when flows exceed storage, conveyance, and treatment system capacity. When the system is filled to capacity, it is designed to overflow into Milwaukee-area rivers and Lake Michigan. Therefore, these structures only become necessary in an extreme wet weather event. During such an event, rainwater enters the system at a greater rate than the system design. To avoid an immediate public health issue of wastewater in basements and system damage, excess flows are allowed to discharge from the Inline Storage System and the MIS system via the CSO Structures. ID #: Name: Phase Start Finish Cost I03009 CSO 125 Backflow Prevention Design Apr-17 Jul-17 $88,094 Construction Dec-17 Jun-18 $219,482 Post-Constr. Aug-18 Dec-18 $5,012 Total $312,588 Previously Approved Total $0 Increase/(Decrease) $312,588 The purpose of this project is to install one backflow prevention device at the CSO 125 location at West Wisconsin Avenue and North Plankinton Avenue. The project scope includes labor, materials, and equipment to install the backflow prevention device. Due to the rising elevations of the Milwaukee River, river water is flowing over the stop planks in IS-222 (CSO125) draining into the NS09 Near Surface Collector (NSC) system. The District s O&M contractor pumps out this clear water on a regular basis to maintain necessary tunnel volume for wet weather events. The device should be manually operated, require no routine maintenance and have an approximate 25 year service life. The District has installed similar type backflow prevention devices at other locations within the combined sewer collection system. This is a new project. The project is expected to have a positive operating budget impact. ID #: Name: Phase Start Finish Cost I06001 NS12 Collector System Improvements Prelimin. Eng Jan-16 Sep-16 $80,575 Design May-17 Jul-18 $475,582 Construction Nov-18 Dec-19 $3,425,834 Post-Constr. Feb-20 Aug-20 $18,135 Total $4,000,126 Previously Approved Total $3,947,016 Increase/(Decrease) $53,110 The purpose of this project is to improve conveyance to the NS12 collector system. The improvements were recommended as part of the root cause analysis for CSO145. This project will help prevent future unintended CSOs and surface flooding as a result of blown manhole covers. The scope of this project will include the construction of two new structures, 140 feet of 84- inch pipe, and level and flow monitoring equipment. The increase in total project cost is primarily due to increased design and construction phase cost estimates. No significant operating budget impact is expected from this project. ID # Name Cost I98001 Allowance for Closeout Six-Year Forecast Total $188,788 Total $188,788 The purpose of this project is the establishment of the account that provides a source of funds to address outstanding issues. By planning for the payment of these expenditures, this account supports the District s goal of maintaining a stable tax rate over the planning horizon. Allowance accounts do not have an approved total project cost. The 2017 Capital Budget includes $188,788. No significant operating budget impact is expected. 141

155 Central Control System Conveyance System Central Control The Central Control System allows remote operation of the conveyance system. The system design and operation are focused on maximizing the effectiveness and efficiency of storing and conveying wastewater to the Water Reclamation Facilities to avoid surcharging. A single operator uses incoming flow data and software-produced data to determine if flow should be diverted from one Metropolitan Interceptor Sewer (MIS) subsystem to another or to the ISS. ID #: Name: Phase Start Finish Cost K01012 Conveyance SCADA Upgrade Prelimin. Eng Nov-13 Jan-15 $112,212 Design Jun-15 May-17 $1,256,306 Construction Mar-16 May-18 $5,875,371 Post-Constr. Jun-18 Dec-18 $10,000 Total $7,253,889 Previously Approved Total $6,724,927 Increase/(Decrease) $528,962 The purpose of this project is to ensure the reliability of the central control system and to maximize the effectiveness and efficiency of storing/conveying wastewater to the WRFs to avoid surcharging. The project scope is to evaluate alternatives, design, and construct the replacement for the District s existing conveyance Supervisory Control and Data Acquisition (SCADA) system as it is reaching the end of its useful life and to upgrade to the hardware and software to add new capacity. The conveyance SCADA system allows a single operator to use incoming flow data and software-produced data to determine if flow should be diverted from one MIS subsystem to another or to the ISS. Alternative hardware and software systems will be demonstrated on non-critical portions of the system and deploying the proven system to replace the entire system. The increase in total project cost is primarily due to increased design and construction phase cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost K01014 Replace Level Sensors in ISS Structures-Phase Design Jun-15 Apr-16 $81,400 II Construction Jul-16 Apr-17 $384,514 Total $465,914 Previously Approved Total $663,980 Increase/(Decrease) ($198,066) The purpose of the project is to ensure the availability and improve the accuracy of data used in operating the ISS during peak wet weather events (i.e., time to fill tunnel, volume reserved for sanitary sewage, etc.), reporting of CSO events, WPDES permit compliance, and alerting staff to potential issues with the MIS system. The project scope is to design and construct the replacement of existing ultrasonic level sensors installed in 12 ISS approach channels and 8 junction chambers, which are reaching the end of their service life. This equipment is over 20 years old. The project objectives are to improve the accuracy of flow measurements, the range of level measurement, and safety conditions associated with maintaining the instruments. The decrease in total project cost is due to revised construction cost estimate as a result of bids received. The operating budget impact is not known at this time. 142

156 Watercourse and Flood Management There are six watersheds within the District s service area: Kinnickinnic River, Lake Michigan Tributary Drainage, Menomonee River, Milwaukee River, Oak Creek, and Root River. The District has discretionary authority to maintain these waterways. In the past, maintenance has included: repair and removal of concrete, removal of sediment and flow- Total Expenditures (dollars in thousands) $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 Watercourse and Flood Management Projects impeding objects, and widening $5,000 floodplains for flood management purposes. $ Actual Estimate Budget Forecast 143

157 Flooding and erosion of these watercourses threaten public health and private property. Consequently, there is significant public interest in flood management and abatement. Because watersheds boundaries do not necessarily follow municipal boundaries, reducing the risk of flooding requires looking at the watershed as a whole, including the complete river system and its tributaries. The District is responsible for managing surface water for two reasons. First, managing flooding promotes efficient use of the sewerage system by reducing infiltration and inflow. Second, a regional government is the most appropriate entity to address watershed issues that involve multiple municipalities. A watershed is an area of land where all of the water, on the surface and underground, drains to a common place such as a lake, river, or ocean. The District s authority to manage surface water is in Wis. Stats., sec (1). Because watersheds boundaries do not necessarily follow municipal boundaries, reducing the risk of flooding requires looking at the In the mid-1980s, the District requested that the Southeastern Wisconsin Regional Planning Commission (SEWRPC) recommend watercourses for District action. In watershed as a whole. response, SEWRPC prepared both a policy plan and a system plan. Considerations favoring District action were (1) the watershed included multiple municipalities, (2) the watershed had a potential for significant harm from the regional flood, and (3) the watershed had a history of investment by the District s predecessors. The goal was to separate issues that should be addressed locally from issues that needed regional action. In 2001, the District codified the recommendations in MMSD Rules, Chapter 13. Chapter 13 lists the watercourses where the District may take action. Municipalities may petition the District s Commission to add watercourses to the list. District action is discretionary and limited to abating the most severe floods. Listing does not guarantee any particular level of protection. Notably, municipalities are responsible for abating smaller floods and flooding associated with watercourses that are not listed. In 1998, the District and local municipalities began the planning process for the development of an updated Watercourse System Management Plan. Flood abatement alternatives have been developed for each of the six watersheds. Phase I of the planning process incorporated the results of past planning efforts such as the 1990 Watercourse System Plan developed by the SEWRPC as well as new technical information on land use, peak stormwater flows, estimated damages, and other hydrologic and hydraulic information. The process has solicited input from affected municipalities and other stakeholders, including the Wisconsin Department of Natural Resources (WDNR), the Wisconsin Department of Transportation, Milwaukee County, SEWRPC, and environmental groups. Meetings with stakeholders in each watershed focused on data gathering, problem identification, and the development and prioritization of potential structural and nonstructural alternatives for flood management. Phase I was completed in Phase II of the process has allowed area residents to comment on the design and location of recommended structural and nonstructural flood management measures. In addition, the District established a Watercourse Policy Advisory Group to recommend policy on the District s responsibility relating to flood management. Recommendations were reported to and approved by the Commission in April 1998 regarding the relationship between municipal stormwater management and District flood management activities, funding responsibilities, procedures for project prioritization, and policies for potential interim projects and riparian management. The 2017 Capital Budget includes $11.9 million for work on various watercourse projects. Please refer to project detail on the following pages for information on each project s purpose, scope, cost estimate, and impact on the O&M budget. 144

158 The District has spent approximately $396 million since 1995 on removing structures from the floodplain and concrete on concrete-lined channels. The District plans to spend another $506 million in order to make the watersheds safer and to reduce the risk of flooding. Below is a table showing the District s involvement on each of the six watersheds. Watershed Spending (in millions) Future # of structures no longer in the floodplain Miles of concrete lined channel removed Spending (in millions) # of structures remaining in the floodplain Miles of concrete lined and enclosed channel remaining Milwaukee River $ , $ Lake Michigan $ $ Menomonee River $ $ Kinnickinnic River $ $ Root River $ $ Oak Creek $ $ Total $ , $

159 146

160 147

161 Milwaukee River Watershed The Milwaukee River Watershed drains an area of about 700 square miles within Fond du Lac, Dodge, Sheboygan, Ozaukee, Washington, and Milwaukee counties. The Milwaukee River is nearly 100 miles in length, although only a small portion of the mainstream is under District jurisdiction. Approximately 25 percent of the watershed is developed, mainly within Milwaukee County. The 13-mile portion of the mainstem of the Milwaukee River which is under District jurisdiction includes the reach from the Milwaukee County boundary at County Line Road downstream to the former North Avenue Dam located 1,000 feet south of East North Avenue. Preliminary engineering estimates 387 structures are within the one percent annual probability floodplain. The District also has jurisdiction over the following tributaries of the Milwaukee River: Lincoln Creek, which is approximately nine miles long, drains 20 square miles and is located in the City of Milwaukee, the Village of Brown Deer, and the City of Glendale. An estimated 2,025 structures are no longer within the one percent annual probability floodplain with completion of the Lincoln Creek project in Southbranch Creek, which drains an area of approximately three square miles. About 54 percent is within the Village of Brown Deer, 44 percent is within the City of Milwaukee, and 2 percent is within the Village of River Hills. Since the District completed flood management projects within this watershed, there are no structures within the one percent annual probability floodplain. Indian Creek, which drains an area of about three square miles. Approximately 6 percent is within the City of Glendale, 12 percent is within the Village of Bayside, 47 percent is within the Village of Fox Point, and 35 percent is within the Village of River Hills. Since the completion of the flood management projects within this watershed, there are no structures within the one percent annual probability floodplain. Beaver Creek, which drains an area of about four square miles. Approximately 43 percent of the area is within the City of Milwaukee and 57 percent is within the Village of Brown Deer. There are an estimated 13 structures within the one percent annual probability floodplain. Brown Deer Park Creek, which drains an area of about two square miles. Approximately 71 percent is within the City of Milwaukee, 14 percent is within the City of Glendale, and 15 percent is within the Village of Brown Deer. There is an estimated one structure within the one percent annual probability floodplain. 148

162 ID #: Name: Phase Start Finish Cost W10001 Milwaukee River Flood Management Planning Mar-04 Dec-18 $295,763 Prelimin. Eng Jan-24 Dec-29 $44,624,238 Total $44,920,001 Previously Approved Total $44,500,001 Increase/(Decrease) $420,000 The purpose of this project is to reduce the risk of flooding to structures along the Milwaukee River within the District s jurisdiction. The project scope consists of continuing the planning phase necessary to identify flooding areas within the District s jurisdiction. The current project costs reflect the flood risk reduction for approximately 387 homes by floodproofing, elevation, or acquisition. The increase in total project cost is due to revised construction cost estimates. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost W10002 Estabrook Dam Design Jan-10 Jan-11 $763,367 Construction May-13 Nov-14 $5,136,847 Post-Constr. Sep-16 Aug-19 $29,786 Total $2,000,000 Previously Approved Total $0 Increase/(Decrease) $2,000,000 The purpose of this project is to provide the benefits of flood risk reduction for at least 53 structures located in the floodplain, and to improve water quality, habitat, fish passage, river aesthetics and reduce sediment accumulation. The Estabrook Dam (Dam) is located 1,500 feet downstream of the Port Washington Road Bridge. It creates an impoundment of approximately 100 acres stretching two miles upstream. The Dam is currently in a deteriorated condition and is under orders by the Wisconsin Department of Natural Resources to be either repaired or removed. The project scope consists of complete removal of the dam. This is a new project. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost W11030 E - North 30th Street Corridor Wet Weather Relief - East Design Jun-14 Dec-16 $4,279,513 Construction Mar-16 Aug-18 $10,603,603 Post-Constr. May-17 Jun-22 $174,303 Total $15,057,419 Previously Approved Total $23,057,420 Increase/(Decrease) ($8,000,001) The purpose of the project is to reduce recurring property and economic damage incurred in the North 30th Street Industrial Corridor due to limitations in District owned combined sewer and City of Milwaukee owned stormwater conveyance capacity during the one percent annual probability storm event. The project will also reduce sewer overflows that result from the limited stormwater conveyance capacity. The project scope is to design and construct two of three planned stormwater detention basins along the 4200 and 4400 blocks of N. 30th Street in the City of Milwaukee, the related piping connecting the basins in N. 30th Street, and discharge piping to existing storm infrastructure in W. Roosevelt Drive and N. 27th Street. The basins ultimately drain to Lincoln Creek. Total storage is currently estimated to be 40 million gallons. The 30th Street Industrial Corridor has reported over $30 million in damage from previous storms. The City is sharing the cost of the project. This scope is consistent with the District s Integrated Regional Stormwater Management Program. The decrease in total project cost is due to removal of project costs that will be reimbursed to the District by the City of Milwaukee. The operating budget impact is not known at this time. 149

163 ID #: Name: Phase Start Finish Cost W11031 W - North 30th Street Corridor Wet Weather Design Oct-15 May-24 $4,708,589 Relief - West Construction Jun-16 Sep-26 $17,911,911 Post-Constr. Dec-16 Nov-31 $445,413 Total $23,065,913 Previously Approved Total $28,104,951 Increase/(Decrease) ($5,039,038) The purpose of the project is to reduce recurring property and economic damage incurred in the North 30th Street Industrial Corridor due to limitations in District owned combined sewer and City of Milwaukee owned stormwater conveyance capacity during the one percent annual probability storm event. The project will also reduce sewer overflows that result from the limited stormwater conveyance capacity. The project scope will construct one stormwater basin and conveyance system improvements west of the railroad tracks on the former Bee Bus Lines property. The decrease in total project cost is due to removal of project costs that will be reimbursed to the District by the City of Milwaukee. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost W13002 Indian Creek Improvements Planning Nov-16 Sep-17 $75,000 Total $75,000 Previously Approved Total $0 Increase/(Decrease) $75,000 The purpose of the project is to conduct a study that will develop alternatives that resolve a sediment deposition issue along Indian Creek near N. Manor Lange in Fox Point. The project scope includes geomorphic and sediment analyses. The study will also include public outreach efforts. This is a new project. No operating budget impact is anticipated. Menomonee River Watershed The Menomonee River Watershed drains an area of approximately 136 square miles. Communities in this watershed include the cities of Brookfield, Greenfield, Mequon, Milwaukee, New Berlin, Wauwatosa, West Allis and the villages of Butler, Elm Grove, Germantown, Greendale, Menomonee Falls, and West Milwaukee. Most of the lower two-thirds of the watershed are nearly fully developed in Milwaukee, Wauwatosa, West Allis, Elm Grove, and Brookfield. Significant developable land still exists in Mequon, Menomonee Falls, and Germantown. Major tributaries to the Menomonee River within Milwaukee County include Underwood Creek, Honey Creek, Grantosa Creek, Little Menomonee River, Woods Creek, South Branch Underwood Creek, and Schoonmaker Creek. There are an estimated 160 structures within the one percent annual probability floodplain. Completed projects have removed 271 structures from the one percent annual probability floodplain. ID #: Name: Phase Start Finish Cost W20018 Concordia Avenue Prelimin. Eng Apr-12 Jan-18 $197,401 Design Mar-15 Feb-24 $3,764,956 Construction Apr-16 Dec-27 $962,052 Total $4,924,409 Previously Approved Total $4,862,001 Increase/(Decrease) $62,408 The purpose of this project is to protect eleven properties and twelve residential structures from the one percent annual probability floodplain in the vicinity of the Menomonee River Parkway and Concordia Avenue. The project scope is to either floodproof or to purchase and remove the twelve residential structures. The increase in total project cost is due to additional deconstruction costs to remove an existing structure. Further evaluation is needed for ten of the structures and as the scope is developed, the total project cost will be updated in the 2018 budget. The operating budget impact is not known at this time. 150

164 ID #: Name: Phase Start Finish Cost W20021 Menomonee River Stream Management - CR Design Jan-10 Jan-11 $763,367 Construction May-13 Nov-14 $5,136,847 Post-Constr. Sep-16 Aug-19 $29,786 Total $5,930,000 Previously Approved Total $5,930,000 Increase/(Decrease) $0 The purpose of this project is to improve aquatic habitat and eliminate the migratory fish passage barrier for 17 miles of the Menomonee River and 20 miles of tributary streams. The project scope is to remove of 3,700 feet of concrete from the bed of the Menomonee River in two phases. Project W20021 is the first phase and includes design and construction of the upper 1,100 feet with the steepest gradient and highest velocities. Pools and riffles with a rock substrate will replace the concrete liner. Project W20023 is the second phase and includes design and construction of the lower 2,600 feet of the channel. There is no change in total project cost. No significant operating budget impact is expected. This project was awarded grants totaling $1,303,000 from the Fish and Wildlife Service and EPA Great Lakes Restoration Initiative. ID #: Name: Phase Start Finish Cost W20023 Phase II Menomonee River Stream Mgt Design Dec-12 Aug-14 $221,938 Construction Oct-14 Aug-16 $2,918,784 Post-Constr. Sep-16 Dec-18 $39,175 Total $3,179,897 Previously Approved Total $3,200,000 Increase/(Decrease) ($20,103) The purpose of this project is to improve aquatic habitat, reduce public safety risk, and replace deteriorating assets. The project scope is to design and construct replacement of concrete channel liner with a more natural channel for approximately 2,600 linear feet of channel. The concrete channel liner is also approaching its estimated life expectancy and will need to be replaced in the near future. The U.S. Army Corps of Engineers (USACE) will finance 65 percent of the project costs, up to a maximum contribution of $5 million. The decrease in total project cost is due to refined cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost W20027 Western Milwaukee Phase 2A Design Apr-14 Nov-14 $579,044 Construction Feb-15 Dec-15 $1,571,197 Post-Constr. May-16 Jun-21 $120,629 Total $2,270,870 Previously Approved Total $2,414,309 Increase/(Decrease) ($143,439) The purpose of this project, along with project W20017, W20028, and W20029, is to protect an estimated 62 structures from the one percent annual probability floodplain along the Menomonee River in the Western Milwaukee corridor. These projects are a component of the Phase II Watercourse Management Plan for the Menomonee River Watershed, which revealed overbank flooding in the vicinity of West State Street on the west side of Milwaukee. The project scope is to design and construct a floodplain levee and daylight the culvert containing Schoonmaker Creek on the old Sears Warehouse property. The floodplain levee will be constructed along State Street and will tie into the Hart Park levee previously constructed by the District. Daylighting the culvert and excavation of the Sears property will lower the floodplain. The combination of these activities will remove six properties from the one percent annual probability floodplain. The decrease in total project cost is due to refined cost estimates. The operating budget impact is not known at this time. 151

165 ID #: Name: Phase Start Finish Cost W20028 Western Milwaukee Phase 2B Design Jul-17 Mar-19 $1,440,993 Construction Jun-19 May-21 $19,703,761 Post-Constr. Jul-21 Jul-26 $816,827 Total $21,961,581 Previously Approved Total $21,746,671 Increase/(Decrease) $214,910 The purpose of this project, along with project W20017, W20028, and W20029, is to protect an estimated 62 structures from the one percent annual probability floodplain along the Menomonee River in the Western Milwaukee corridor. These projects are a component of the Phase II Watercourse Management Plan for the Menomonee River Watershed, which revealed overbank flooding in the vicinity of West State Street on the west side of Milwaukee. This project will complete the levee system in the corridor that starts just west of Hart Park at West State Street at the upstream end and extends east to just east of USH 41. The project scope is to design and construct a continuation of the floodplain levee and floodwall along West State Street, east from the N. 59th and State Pump Station to tie in to high ground just east of the USH 41 overpass. Approximately 2,000 feet of earthen levee and 1,200 feet of floodwall will be designed and constructed under this project, as well as 360 feet of 90 storm sewer with inlet and outlet structures. The increase in total project cost is due to refined cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost W20029 Western Milwaukee Real Estate & Environmental Design Apr-14 Dec-24 $8,060,368 Assessment Construction Apr-14 Nov-20 $363,721 Post-Constr. Jul-14 Jan-21 $18,506 Total $8,442,595 Previously Approved Total $7,412,008 Increase/(Decrease) $1,030,587 The purpose of the project, along with project W20017, W20027, and W20028, is to protect an estimated 62 structures from the one percent annual probability floodplain along the Menomonee River in the Western Milwaukee corridor. These projects are a component of the Phase II Watercourse Management Plan for the Menomonee River Watershed, which revealed overbank flooding in the vicinity of West State Street on the west side of Milwaukee. The project scope is to support to the Western Milwaukee and Hart Park projects, both of which provide protection for impacted structures from the one percent probability flood along the Menomonee River. The Commission approved an acquisition plat, allowing the purchase of 16 individual property rights from ten property owners. To date, 13 of the 16 property rights have been purchased. The scope also includes demolition of structures purchased as part of the property rights acquisition. The increase in total project cost is due to current acquisition estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost W20031 Menomonee River Estuary Study Planning Oct-15 Dec-17 $86,527 Total $86,527 Previously Approved Total $64,999 Increase/(Decrease) $21,528 This project is a watercourse management planning study for the Menomonee River estuary between S. 29th Street and Canal Street, which is the river-dominated section of the estuary. Approximately 24 structures have been preliminarily identified within the floodplain of the Menomonee River Estuary based on recent updated SEWRPC floodplain mapping. The increase in total project cost is for additional surveying of 10 cross sections of the Menomonee River. No operating budget impact is expected. 152

166 ID #: Name: Phase Start Finish Cost W21005 Phase I - Underwood Creek Reach 1 - CR Planning Jan-04 Jul-06 $464,468 Design Jul-07 Nov-07 $392,322 Construction Jun-08 Jul-10 $3,368,973 Post-Constr. Jul-10 Dec-19 $291,577 Total $4,517,340 Previously Approved Total $4,517,253 Increase/(Decrease) $87 The purpose of the project is to remove concrete from the channel for stream rehabilitation and safety. The scope of the project includes concrete channel liner removal from approximately one mile of Underwood Creek from near the confluence with the Menomonee River upstream to Mayfair Road. Removal is contingent on maintaining the current level of flood management protection that will be provided by completed and future flood management projects. The concrete liner creates a safety hazard during extreme rain events. Removing the concrete will rehabilitate the creek to a more natural state and reduce the danger associated with the fast river flows of concrete-lined river channels. The change in total project cost is de minimus. No operating budget impact is expected. ID #: Name: Phase Start Finish Cost W21006 Phase II - Underwood Creek Reach 1 - CR Design Sep-13 Feb-17 $1,339,678 Construction May-16 Dec-18 $6,087,795 Post-Constr. Dec-18 Mar-24 $359,018 Total $7,786,491 Previously Approved Total $11,595,993 Increase/(Decrease) ($3,809,502) The purpose of the project is to reduce public safety risk, provide wetland mitigation, improve aquatic habitat, and to satisfy Wisconsin Department of Natural Resources and USACE requirements for the Milwaukee County Grounds Floodwater Management Facility project. The project scope includes the design and construction of removing approximately 4,400 linear feet of concrete channel liner on Underwood Creek from Canadian Pacific Railway Bridge to the confluence with the Menomonee River, and replacing it with a bioengineered channel. The project will construct a series of pools and riffles in a low-flow channel to enhance the natural functions of Underwood Creek. The project also includes reconstructing channel in areas where the riparian floodplain was lowered to recreate a more aesthetic and natural watercourse corridor. The project maintains the current level of flood management. The District will partner with USACE who will finance 65 percent of the project costs, up to a maximum contribution of $10 million. The decrease in total project cost is due to the cost share commitment with USACE. No significant operating budget impact is expected. 153

167 ID #: Name: Phase Start Finish Cost W21007 Underwood Creek Reach 2 - CR Prelimin. Eng Jan-15 May-23 $5,734,585 Design Oct-23 Dec-24 $1,187,297 Construction Apr-25 Jun-28 $9,146,116 Post-Constr. Jul-28 Aug-33 $46,432 Total $16,114,430 Previously Approved Total $15,804,132 Increase/(Decrease) $310,298 The purpose of this project is to reduce public safety risk, provide wetland enhancement, and improve aquatic habitat of segments of both the Underwood Creek and South Branch Underwood Creek upstream of Mayfair Road to approximately Greenfield Avenue. The project scope includes a feasibility study of 12,400 lineal feet of Underwood Creek and South Branch of Underwood Creek that will recommend how to best remove the concrete channel lining and rehabilitate the area. This project will provide the District with a data-intensive study of this segment of the streams with 50 percent of the cost covered by the USACE. Additionally, it is the first necessary step in the determination of whether there is federal interest in the project. If this is the case, the USACE will provide 65 percent of the total project design and construction costs for the segment of Underwood Creek and South Branch Underwood Creek. The increase in total project cost is due to refined construction cost estimates. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost W22001 Underwood Creek S. Branch, Reach 1 - CR Prelimin. Eng Jan-19 Jun-23 $5,267,059 Design Nov-16 Dec-25 $1,442,674 Construction Sep-17 May-29 $5,857,484 Post-Constr. May-18 Sep-34 $50,009 Total $12,617,226 Previously Approved Total $11,980,996 Increase/(Decrease) $636,230 The purpose of the project involves both 5,700 feet of concrete removal and the design, construction and post construction costs and schedule of a WPDES Bacteria BMP Pilot project. The BMP Pilot project is being transferred from M03089 to this project (W S. Branch Underwood Creek Reach1) as part of the WPDES permit to reduce loadings of bacteria from stormwater runoff in the Menomonee River watershed contributing to identify recreational use impairments. This location along the South Branch of Underwood Creek was selected as BMP candidate based on an evaluation of bacteria sources. The project scope of the BMP Pilot project consists of design, construction, and post construction performance monitoring of a Bacteria BMP at an outfall on the east bank of the South Branch of Underwood Creek approximately 200 feet north of I- 94. Post construction water quality sampling will be performed to monitor the effectiveness. The concrete removal portion of this project is located between approximately W. Bluemound Road upstream to W. Schlinger Avenue and anticipated to be an USACE construction cost share in The primary purpose for removing the concrete from the channel is stream rehabilitation and safety. The increase in total project cost is due to the transfer of design, construction, and post construction costs into this project from M No significant operating budget impact is expected. 154

168 ID #: Name: Phase Start Finish Cost W24005 Honey Creek Watercourse Mgmt. Plan Prelimin. Eng Dec-09 Jun-17 $295,709 Total $295,709 Previously Approved Total $369,491 Increase/(Decrease) ($73,782) The purpose of the project is to identify any structures along Honey Creek that may be at risk of flooding and to restore the channel to a more natural condition. This project scope consists of updating an existing planning study to incorporate recently revised SEWRPC floodplain maps. This updated planning study will identify flooding areas within the District s jurisdiction, provide a recommended alternative that will remove approximately 12 structures from the floodplain and incorporate channel rehabilitation, and perform a construction cost estimate of the recommended alternative. The decrease in total project cost is due to refined cost estimates. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost W24006 Honey Creek USACE Habitat Improvement Prelimin. Eng Jun-15 Jan-19 $600,001 Feasibility Study Total $600,001 Previously Approved Total $320,546 Increase/(Decrease) $279,455 The purpose of this project is to assist USACE as a Non-Federal Sponsor with a Feasibility Study of the segment of Honey Creek located between Portland Avenue and the North Honey Creek Parkway crossing south of West Bluemound Road. This project will provide the District with a data-intensive study of this segment of Honey Creek with 50 percent of the cost covered by the USACE. Additionally, it is the first necessary step in the determination of whether there is federal interest in the project. If this is the case, the USACE will provide 65 percent of the total project design and construction costs for the segment of Honey Creek located between Portland Avenue and the North Honey Creek Parkway crossing south of West Bluemound Road. The concrete lining of this segment is a District asset that has reached the end of its useful life. This Feasibility Study will potentially lead to federal funding of a portion of the removal costs and overall rehabilitation of this segment of Honey Creek. Project scope was revised by adjusting the study length by extending the upstream boundary to I-94 for an extension of approximately 4,200 feet and a revised total study length of 7,900 feet. The increase in total project cost is for this additional project scope of internal surveying and environmental consultant services. No operating budget impact is expected. ID #: Name: Phase Start Finish Cost W26004 Grantosa Parkway Planning Jan-14 Jan-18 $79,716 Design Mar-25 Mar-26 $533,195 Construction May-26 Dec-27 $4,186,004 Post-Constr. Jan-28 Feb-31 $39,027 Total $4,837,942 Previously Approved Total $4,745,854 Increase/(Decrease) $92,088 The purpose of this project is to reduce flood risk to approximately four structures located in the one percent annual probability floodplain. The current project recommendation consists of constructing a levee along Grantosa Creek. A planning study is underway to reevaluate this recommendation based on SEWRPC s proposed floodplain update. The increase in total project cost is due revised construction cost estimates. No operating budget impact is expected. 155

169 ID #: Name: Phase Start Finish Cost W28002 Daylighting Schoonmaker Creek Construction Apr-15 Dec-15 $5,054,973 Post-Constr. May-16 Jun-21 $473,119 Total $5,528,092 Previously Approved Total $6,475,665 Increase/(Decrease) ($947,573) The purpose of the project is to reduce the number of flooded structures in the Menomonee River watershed. The project scope includes Schoonmaker Creek daylighting. Major elements of the project include the construction of approximately 1,000 feet of earthen levee; removal of approximately 500 feet of concrete box culvert conveying Schoonmaker Creek; channel construction; 110 feet of two-cell box culvert construction and outfall with flap gates; Menomonee River bank reconstruction; grading, topsoil, planting of vegetation and vegetation maintenance. The decrease in total project cost is due to construction being completed under budget. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost W29002 Burnham Canal Design Jul-12 Jun-18 $337,469 Construction Apr-24 Aug-29 $8,197,674 Post-Constr. Aug-29 Sep-34 $244,326 Total $8,779,469 Previously Approved Total $8,451,374 Increase/(Decrease) $328,095 The purpose of this project is to transform the Burnham Canal into a productive and attractive wetland to improve water quality by removing pollutants from combined sewer overflows if they occur. Other project benefits include providing a low-cost opportunity to beneficially reuse fill from other projects, improving public awareness of the functions and values of wetlands in an area where wetlands are absent, improving fish and wildlife habitat, and improving access for recreation and education. The project scope is to cap contaminated sediment within the canal and to design and construct a wetland within the canal. A public-private partnership will be used to fund the project. The District s private partner is Miller Compressing, who is required to resolve environmental issues within the canal and has allocated funding to the project. To supplement the work that Miller Compressing must do, the District will combine funding from Miller Compressing with funding from USACE, the US Department of Commerce National Oceanic and Atmospheric Administration (NOAA), the Fund for the Lake Michigan, and other sources. The District will manage the project s design, construction, and post-construction activities. District expenditures for the construction phase will not begin until outside funding sources, including grants, are obtained. Expenditures for this project that occurred prior to 2016 were expensed under capital project W62002 and in 2017 the expenditures are moved from the Lake Michigan Drainage to the Milwaukee River Project benefits include: - providing a low-cost opportunity to beneficially reuse fill from other projects - improving public awareness of the functions and values of wetlands in an area where wetlands are absent - improving fish and wildlife habitat, - improving access for recreation and education Watershed per the change in the District s Chapter 13 rules. The increase in total project cost is due to inflation, project staffing, or updated costs to reflect market conditions. The operating budget impact is not known at this time. 156

170 Kinnickinnic River Watershed The Kinnickinnic (KK) River Watershed drains an area of about 26 square miles. There are six streams in the watershed, all of which are under District jurisdiction: the KK River, Lyons Park Creek, Wilson Park Creek, South 43rd Street Ditch, Villa Mann Creek, and Villa Mann Creek Tributary. The watershed has a significant number of channels, and there are an estimated 650 structures within the one percent annual probability floodplain. Completed projects have removed 73 structures from the one percent probability floodplain. Projects funded in 2017 will help reduce the risk of flooding to properties in the KK River Watershed. ID #: Name: Phase Start Finish Cost W40002 KK River Flood Management - Mainstem Work Prelimin. Eng Oct-06 Dec-19 $8,137,777 Design Jul-14 Dec-20 $19,173,821 Construction Dec-17 Nov-24 $51,304,642 Post-Constr. Feb-25 Jul-33 $282,542 Total $78,898,782 Previously Approved Total $65,241,712 Increase/(Decrease) $13,657,070 The purpose of this project is to reduce the flood risk to structures located in the one percent annual probability floodplain and improve public safety along the Kinnickinnic River from South 6th Street to South 27th Street. The project scope will reduce flood risk to an estimated 300 structures located in the one percent annual probability floodplain and rehabilitate approximately 12,000 linear feet of concrete channel liner from South 6th Street to South 27th Street. The rehabilitation consists of concrete channel liner replacement, where feasible, with a bioengineered channel alternative. The project includes the acquisition of approximately 83 structures in order to widen the channel to convey flood flows within the rehabilitated channel. The project also includes improvements to five vehicular and three pedestrian bridges to increase flood flow capacity. The recommended alternative will consider improved fish passage for targeted species, improved channel aesthetics, maintenance costs impacts, future economic impacts, and riparian neighborhood social impacts into the final design. MMSD and the City of Milwaukee have started Intergovernmental Cooperation Agreement discussions for the proposed project impacts to City of Milwaukee owned infrastructure. It is anticipated that MMSD will fund a portion of the bridge replacement cost. The increase in total project cost is due to the added construction costs. Specific impacts to the operating budget will be determined after the channel rehabilitation method has been selected. It is anticipated that there will be increased vegetation management and channel maintenance costs. ID #: Name: Phase Start Finish Cost W40007 KK River Reach 3 - CR Prelimin. Eng Nov-12 Apr-29 $206,066 Design Aug-29 Oct-30 $1,408,922 Construction Feb-31 Aug-32 $8,938,094 Post-Constr. Sep-32 Sep-37 $135,346 Total $10,688,428 Previously Approved Total $7,050,070 Increase/(Decrease) $3,638,358 The purpose of this project is to improve aquatic habitat, reduce public safety risk, and replace deteriorating assets. The project scope is to remove concrete and rehabilitate the channel for approximately 5,800 linear feet of the Kinnickinnic River between South 27th St and upstream of the KK River Parkway in Jackson Park. The concrete lining is 50 years old and has reached the end of its useful life. The District will partner with USACE who will finance 65 percent of the project costs, up to a maximum contribution of $10,000,000. The increase in total project cost is due to the increase in length of the limits of the project by 1,600 feet. The operating budget impact is not known at this time. 157

171 ID #: Name: Phase Start Finish Cost W40008 KK River S. 6th to S. Chase Flood Mgt Design Sep-08 Apr-10 $934,552 Construction Jul-10 Mar-12 $4,669,434 Post-Constr. Apr-12 Jul-17 $210,499 Total $5,814,485 Previously Approved Total $5,815,455 Increase/(Decrease) ($970) The purpose of this project is stream rehabilitation work for the Kinnickinnic (KK) River from S. 6th St to S. Chase Ave within the City of Milwaukee. The scope of work includes stream rehabilitation for the river reach between S. 6th St and S. Chase Ave and reconstruction of the S. 6th St bridge crossing the KK River to convey floodwaters. The stream rehabilitation work consists of removing approximately 500 feet of concrete channel immediately downstream of the S. 6th St Bridge and rehabilitating the rest of the approximately 750 feet of river reach to Interstate 94 (I-94). The S. 6th Street Bridge was reconstructed to create a bridge opening that conveys flood waters. An Intergovernmental Cooperation Agreement (ICA) was drafted with the City of Milwaukee which outlines cost sharing for the reconstruction of the S. 6th St Bridge. The change in total project cost is de minimus. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost W40010 KK River Watershed Prelimin. Eng Mar-17 Jan-20 $1,965,900 Total $1,965,900 Previously Approved Total $1,923,127 Increase/(Decrease) $42,773 The purpose of this project is to conduct a study for the recommendations developed in the Kinnickinnic River Watershed Management Plan update. The study will include all project areas within MMSD s jurisdictional limits in the Kinnickinnic River Watershed with the exception of the section of the Kinnickinnic River between 6 th Street and 27 th Street. The project scope consists of an alternatives analysis for the components of the conceptual plan recommendations, the obtainment of public and stakeholder feedback, the development of preliminary permits and environmental reports, a limited subsurface investigation, and an engineering report. The increase in total project cost is due to inflation. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost W40011 KK River I-94 to Becher Prelimin. Eng Jun-14 Aug-18 $331,069 Design Dec-25 Feb-27 $940,509 Construction May-27 Jul-30 $6,024,883 Post-Constr. Aug-30 Aug-35 $267,013 Total $7,563,474 Previously Approved Total $311,186 Increase/(Decrease) $7,252,288 The purpose of the project is to improve water quality within the Kinnickinnic (KK) River. The project scope is to determine the feasibility of improving water quality within the KK River between the I-94/43 Freeway Overpass and West Becher Street. This area of the KK River is in between 1,200 linear feet of channel reconstructed by the District and a Great Lakes Legacy Act remediation project that removed contaminated sediments. The feasibility study will provide an alternative for design and construction of improvements that will link the two previously mentioned projects, leading to improved water quality. The District submitted a request to USACE to pursue a feasibility study under the USACE s section 206 program. If the USACE agrees to pursue a feasibility study and determines a federal interest in the project, then the USACE will fund 65 percent of the design and construction costs for the project. The increase in total project cost is due to the inclusion of design and construction work based on the preliminary draft recommendations from the study. Operating budget impact is not known at this time. The District has been awarded a $200,000 project grant to fund this work from the National Oceanic and Atmospheric Association s Great Lakes Habitat Program. 158

172 ID #: Name: Phase Start Finish Cost W45002 Wilson Park Creek Reach-3 Prelimin. Eng Sep-08 Oct-16 $1,836,195 Design Oct-16 Jan-20 $1,216,121 Construction Apr-20 May-22 $15,387,885 Post-Constr. Jun-22 Sep-23 $218,320 Total $18,658,521 Previously Approved Total $17,396,456 Increase/(Decrease) $1,262,065 The purpose of the project is to reduce flood risk on Wilson Park Creek in the vicinity of S. 6th Street and W. Armour Avenue for over 50 residential and commercial structures located in the 1% annual probability floodplain. The project scope also replaces 2,800 linear feet of concrete channel lining with a more naturalized channel. The concrete lining is a District asset that was installed in the 1960 s and is reaching the end of its useful life. The increase in total project cost is the result of refined cost estimates and expedited project schedule. No significant operating budget impact is expected. Oak Creek Watershed The Oak Creek Watershed drains an area of about 28 square miles. Approximately 64 percent of the area is within the City of Oak Creek, 9 percent in the City of Franklin, 4 percent in the City of Cudahy, 10 percent in the City of Milwaukee, 1 percent in the City of Greenfield, and 12 percent in the City of South Milwaukee. An estimated 13 structures are within the one percent annual probability floodplain. ID #: Name: Phase Start Finish Cost W50005 Oak Creek Flood Management - Floodproofing/Acquisition Planning Apr-09 Oct-16 $314,110 Design Oct-12 Jan-24 $6,296,251 Total $6,610,361 Previously Approved Total $6,328,746 Increase/(Decrease) $281,615 The purpose of this project is to reduce the risk of flood damage to 13 structures within the one percent probability floodplain. The project scope consists of designing and constructing floodproofing for 13 structures as recommended by SEWRPC. Floodproofing was found to have the highest cost-benefit ratio when looking at options such as eliminating points of flow restrictions within the watershed, adding regional floodwater storage, structure acquisition and demolition, channel cleanout, and no action. Floodproofing is any combination of structural or nonstructural changes or adjustments incorporated in the design, construction, or alteration of individual structures or properties that will reduce flood damages for structures and their contents. The increase in total project cost is due to refined construction cost estimates. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost W50006 Oak Creek Watershed Restoration Plan Planning Oct-15 Apr-19 $394,586 Total $394,586 Previously Approved Total $394,583 Increase/(Decrease) $3 The purpose of this project is to conduct a study to yield data needed to plan and implement future improvements to the watershed area. The project scope will be to support SEWRPC to develop a restoration plan for the Oak Creek watershed. It will focus on areas such as water quality, recreational access and use, habitat conditions, and targeted stormwater drainage and flooding issues. The change in total project cost is de minimus. The operating budget impact is not known at this time. 159

173 General Watercourse Projects Projects grouped into this category are projects that do not fit into the various watersheds. The types of projects can be associated with: various studies for planning future watercourse projects; projects that protect or restore natural drainage to prevent future flooding; all other nonspecific items. Projects funded in 2017 will also identify and map floodplains. ID #: Name: Phase Start Finish Cost W91001 Phase II Corridor & SEWRPC Studies Planning Dec-99 Jan-01 $36,431 Prelimin. Eng Mar-01 Dec-17 $2,714,558 Design Dec-99 Apr-00 $14,023 Total $2,765,012 Previously Approved Total $2,765,011 Increase/(Decrease) $1 The purpose of this project is to develop tools that will assist the District in removing structures from the one percent probability floodplain. The project scope includes completing digital floodplain maps that identify the one percent probability floodplain for major rivers within Milwaukee County. The maps will assist in identifying flooding problem areas within Milwaukee County and will help in setting funding priorities. The project is being completed by SEWRPC staff. The change in total project cost is de minimus. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost W96001 Fresh Coast Implementation Planning Nov-15 Jan-22 $8,890,494 Total $8,890,494 Previously Approved Total $5,898,001 Increase/(Decrease) $2,992,493 The purpose of this project is to deploy green infrastructure strategies that help to keep stormwater out of the combined and separate sewer systems, reducing the volume and frequency of combined and sanitary sewer overflows and basement backups during significant storms. The project will work in conjunction with key District initiatives, such as the Private Property Infiltration and Inflow (PP I/I) Reduction project, by providing partnership funding to address stormwater before it flows into or infiltrates the District s system. This project will also address the District s 2035 Vision and Strategic Objectives approved by the Commission in January The project scope includes several initiatives: Development of an overall, cost-effective green infrastructure program to supplement the District s PP I/I program and meet the goals of the District s WPDES Permit, infiltrate stormwater away from conveyance pipes, and keep stormwater out of the District s sewerage system. Recommendations for solutions such as demonstration and scaled-up implementation projects are central to this program. An aggressive green infrastructure capture and infiltration program that, together with partners, establishes and meets targeted levels of performance. Green parks and green schools initiatives that would help fund visible, high-impact green infrastructure strategies in the region s parklands and at schools. The change in total project cost is due to an additional year added to the duration along with the addition of funds associated with Zoo Interchange stormwater green infrastructure strategies. Costs included herein were originally included within project M03064 that will now focus on green infrastructure planning, design, and related foundations. Project W96001 was created for implementation of solutions identified via M The operating budget impact is not known at this time. 160

174 ID #: Name: Phase Cost W97002 Greenseams Six-Year Forecast Total $7,200,000 Total $7,200,000 The purpose of this project is to purchase natural wetlands to retain stormwater to reduce the risk of future flooding problems. First of the many benefits of this program; avoiding development in floodplains and wetlands reduces the potential exposure of persons and property to harmful flood impacts. Second, conserving the natural functionality of wetlands and floodplains can help to ensure that the District s capital investments in flood management do not become overtaken, ineffective, and obsolete. Third, conservation of floodplains, wetlands, and other environmentally sensitive areas results in effective protection of natural resources and wildlife. The project scope is to acquire land intended to assist in the prevention of future flooding issues in four of Milwaukee s watersheds and includes the purchase of linkages or gaps within existing corridors protecting linear greenways along or tributary to jurisdictional waterways. The District either purchases or acquires conservation easements for privately owned parcels consisting of hydric soils in order to prevent the properties from being developed. The project, which includes the Menomonee River, Root River, Oak Creek, and Milwaukee River watersheds within the District s planning area, will support activities to research, identify, acquire, maintain, preserve, and defend natural flood storage on lands within the District s planning area. Since the program began, a total of 3,197 acres have been preserved. The District works collaboratively with non-profits, land trusts, governmental agencies, and municipal staff to identify properties in high priority areas, pool resources together, and to contact landowners. Some of these partners are able to own and become the steward of these properties, saving the District time and maintenance costs. The District continues its efforts to acquire grant funding to offset acquisition costs, primarily from the WDNR Stewardship Fund. The Greenseams Program is a capital program and does not have an approved total project cost. The 2017 expenditures are budgeted at $1.2 million; the six-year long-range financing plan includes $7.2 million. In terms of operating budget impact, Greenseams is a capital program which supports the District s capital infrastructure by reducing the risk of flooding and keeping excess water out of the District s conveyance system. Consequently, the District s capital expenditures on the program generally do not result in changes to the current level of O&M expenditures (as the land is not operated or maintained by the District) but instead help to preserve the capacity and long-term cost-effective operation of the District s System. ID #: Name: Phase Start Finish Cost W97003 Working Soils Program & Milwaukee River Planning Jan-15 Mar-21 $3,201,585 Watershed Conservation Partnership Total $3,201,585 Previously Approved Total $2,106,272 Increase/(Decrease) $1,095,313 The purpose of this project is to work with agricultural producers and landowners to place voluntary easements on undeveloped, privately owned properties along streams, shorelines and wetlands in areas expected to have major growth in the next 20 years. This limited-time, innovative flood management program permanently protects key lands containing water-absorbing soils. Through the 2014 US Department of Agriculture (USDA) Farm Bill s Natural Resources Conservation Service (NRCS) and the Regional Conservation Partnership Program (RCPP); federal funds match local financial and in-kind contributions. The RCPP Agricultural Conservation Easement Program (ACEP) allows for MMSD s financial support on agricultural easements to be matched. MMSD will obtain a property right with the permanent easement that requires land owners to permanently protect private property as open space for agricultural use. Each easement is greater than $25,000 in value. These local partnerships through RCPP ACEP simultaneously support and protect MMSD's water quality and structural flood management projects. In 2016, MMSD was awarded federal allocations of over $1.5 million to utilize over a five-year period on Working Soils easement acquisitions and landowner conservation practices. The District is coordinating among 20 different organizations working to complete the NRCS-approved MRWCP project scope throughout the Milwaukee River Watershed to achieve: flood protection, water quality improvements in impaired river reaches, and improved soil health. The increase in total project cost is due to an increase in Working Soils and NRCS RCPP program awarded funding. Partner contributions valued at $3.5 million help to offset the increase in staff time required for management of grant funding and in-kind contributions from Milwaukee River Watershed Conservation Partnership contributors. No significant operating budget impact is expected. 161

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176 Other Projects and Programs Other Projects is a budgetary grouping of projects that support overall District planning, management, and infrastructure assets and investments. These projects typically precede design and construction work, providing a solid foundation for future projects in the Water Reclamation Facilities, Conveyance Facilities, and Watercourse Projects capital program groups. $30,000 $25,000 $20,000 $15,000 The 2017 Capital Budget includes $25.0 million for $10,000 work on Other Projects. Please refer to project detail on the following pages for information on $5,000 each project s purpose, scope, cost estimate and impact on the O&M budget. $0 Total Expenditures (dollars in thousands) Other Projects Actual EstimateBudget Forecast 163

177 Facilities Management Facilities Management capital projects are those projects that are related to providing structural upgrades or replacements at District headquarters, Central Laboratory, and other land and building assets. ID #: Name: Phase Start Finish Cost M01011 NFPA Study Planning Jan-10 Jan-19 $730,566 Total $730,566 Previously Approved Total $710,193 Increase/(Decrease) $20,373 The purpose of this project is to evaluate risk at District facilities related to the National Fire Protection Association (NFPA) 820 standard for fire and explosions. This project scope will conduct a NFPA 820 audit of existing treatment and collection facilities and create a risk mitigation plan. This mitigation plan will include identifying costs and benefits associated with compliance. This facilities audit will evaluate the physical characteristics of District assets and management practices; assess fire and explosion risk; and include engineering support for interpretation, clarifications, meeting preparation and coordination between District, Veolia and future capital improvement design consultants for projects that have NFPA 820- related issues. The increase in total project cost is due to refined cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost M01012 Milw River Flushing Station Building Rehab Design Jan-11 Aug-16 $286,970 Construction Sep-15 Dec-16 $611,871 Post-Constr. Dec-16 May-17 $7,293 Total $906,134 Previously Approved Total $906,134 Increase/(Decrease) $0 The purpose of this project is to ensure the Milwaukee River Flushing Station can operate as designed by restoring the building s structural integrity. The project scope will evaluate the Milwaukee River Flushing Station building s settlement issues. From this evaluation, the project will evaluate alternatives and construct the preferred solution. After a geotechnical exploration, the preferred solution is to use a chemical grout to support the foundation. The Milwaukee River Flushing Station is located at the intersection of Lincoln Memorial Drive and Lafayette Hill Road and is used to increase the level of dissolved oxygen (DO) in the Milwaukee River when the level of DO in the river falls below three parts per million. There is no change in total project cost. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost M01019 Safe Atmosphere Monitoring Planning Jan-13 Aug-18 $277,951 Prelimin. Eng Aug-18 Jul-19 $271,993 Construction Oct-19 May-20 $730,841 Total $1,280,785 Previously Approved Total $1,280,784 Increase/(Decrease) $1 The purpose of this project is to provide a comprehensive evaluation of actual field hazards and conditions so that future improvements can be prioritized in the most important areas with highest potential for fire and explosion risk. This project will install monitoring equipment that will be used to evaluate actual field hazards and conditions that will allow the District to make recommendations for facilities improvements to mitigate or prevent the risk of potential fire and explosions. The change in total project cost is de minimis. The operating budget impact is not known at this time. 164

178 ID #: Name: Phase Start Finish Cost M01023 Wharf Wall Improvements Prelimin. Eng Jan-14 Jun-14 $328,231 Design Jun-14 Nov-15 $308,601 Construction May-15 Dec-16 $1,038,272 Post-Constr. Feb-17 Mar-20 $30,162 Total $1,705,266 Previously Approved Total $1, Increase/(Decrease) $72,831 The purpose of this project is to stabilize the wharf wall on the southwest corner of District Headquarters (HQ) and to extend its useful life. This project scope has taken measures to stabilize the wharf wall and construct the solution. The increase in total project cost is due to bids received for the construction work being higher than estimated. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost M01024 ADA Improvements to HQ & Lab Planning Jan-13 Oct-16 $34,000 Construction Jan-17 Dec-17 $250,000 Total $284,000 Previously Approved Total $34,000 Increase/(Decrease) $250,000 The purpose of this project is to upgrade facilities to Americans with Disabilities Act (ADA) compliance. The project will upgrade and reconfigure the entryway of HQ to ADA compliance, including a heated element in the ramp to reduce the impact of rock salt on the environment. As applicable, the project will address other ADA accessibility in the Laboratory and the HQ buildings. The change in total project cost is due to refined cost estimates, an increase in the ramp reconfiguration cost, and increased scope. The operating budget impact is unknown at this time. ID #: Name: Phase Start Finish Cost M01026 HQ & Lab Heat & Power Generation System Prelimin. Eng Jan-16 Nov-17 $510,223 Total $510,223 Previously Approved Total $3,168,371 Increase/(Decrease) ($2,658,148) The purpose of the project is for the District to further extend its leadership position in reducing its carbon footprint while reducing electrical and HVAC operating costs. The project scope is to implement a Combined Heat and Power Generation System at the HQ and Laboratory buildings that will self-generate electrical power while utilizing the waste heat recovered for heating, and possibly cooling, and producing essentially near-zero greenhouse gas emissions. The decrease in total project cost results from eliminating design, construction, and post-construction phase costs until completion of the feasibility study. The operating budget impact is not known at this time. 165

179 ID #: Name: Phase Start Finish Cost M01029 North HQ Wharf Wall Evaluation Planning Dec-16 Dec-17 $174,927 Total $174,927 Previously Approved Total $0 Increase/(Decrease) $174,927 The purpose of the project is to ensure the long-term stability of the remaining areas of wharf wall on District HQ property. The scope of this project includes: potholing to locate, measure, and evaluate deflection of the existing tie rods; a geotechnical investigation to characterize existing subsurface conditions and evaluate risk of soil settlement; and preparing a technical memorandum. This is a new project. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost M01030 Headquarters and Laboratory Office Remodel and Reconfiguration Construction Jul-16 Dec-17 $330,000 Total $330,000 Previously Approved Total $0 Increase/(Decrease) $330,000 The purpose of this project is to address increased staffing and office space needs that have been created over the past several budget cycles. The project will improve the workspaces on the second floors of the Headquarters and Laboratory buildings, as well as implement safety features in sections of the first floor of the Headquarters Building. It will also reconfigure the main mailroom at MMSD. Specifically, this project will reconfigure existing offices, add additional work spaces, reconfigure and expand conference rooms, reconfigure copy rooms and departmental libraries, increase efficiencies in work spaces and work groups, and provide additional security measures in work spaces. This is a new project. The operating budget impact is unknown at this time. ID #: Name: Phase Start Finish Cost M01031 Replace Laboratory Chiller Construction Jan-17 Dec-17 $200,000 Total $200,000 Previously Approved Total $0 Increase/(Decrease) $200,000 The purpose of the project is to replace the chiller associated with the HVAC system in the District s Laboratory. The current chiller has experienced multiple problems during its service life. Repairing and replacing compressors in the chiller unit have been costly, whereas replacing the entire unit will provide better energy efficiency and improved technology. This is a new project. The operating budget impact is unknown at this time. 166

180 Facilities Planning Facilities Planning is an ongoing process addressing all District facilities. The process includes: 1) evaluation data reflective of system conditions before and after major system upgrades to validate the performance expectations of previous facility improvements, 2) data collection to provide a consistent time series of data adequate for evaluation of system performance, and 3) modeling and evaluation of the real-time operation of the systems constructed under a Facilities Plan. Ultimately, assumptions made under a facilities plan must be evaluated on an on-going basis to determine if facilities plan identified projects should be built as planned. The District s capital improvement program is primarily driven by a facilities plan that is formalized and published roughly every ten years. Once the plan is formally published, staff routinely analyze and evaluate the plan to ensure that the recommendations and projects are current. The development of the plan requires ongoing data collection and analysis as well as staff resources. The projects associated with this effort address plan development, data gathering, and data analysis issues. Activities funded in the 2017 Capital Budget will identify and plan future improvements to District facilities. ID #: Name: Phase Start Finish Cost M03016 Post 2020 FP Implementation Evaluation & Planning Planning Jan-05 Aug-20 $34,960,580 Total $34,960,580 Previously Approved Total $34,960,582 Increase/(Decrease) ($2) The purpose of this project is to evaluate 2020 Facilities Plan (FP) recommendations as implementation proceeds. The current FP identifies system capital improvements necessary for wastewater, conveyance, treatment, and watercourse management needs through Since projects recommended in the FP are expected to take several years to implement, under this project the initial FP recommendations will be evaluated as implementation proceeds to determine whether plan updates or modifications are needed. The project scope includes, but is not limited to: Continuous collection, investigation, and evaluation of wastewater flow data (including infiltration and inflow), water quality data, population, land use, and development patterns; System performance tracking to measure the effectiveness of the FP recommendations in terms of system operational benefits, infiltration and inflow reduction, return on investment, cost, and water quality improvement. Performance tracking provides data that will ultimately drive decisions regarding timing and sizing of FP projects yet to be undertaken; Continuous modeling, using the above-mentioned data, in order to further refine sizing of projects identified in the FP; Public involvement efforts related to population and land use project adjustments (with advisory committees) as well as general public awareness-raising activities when recommended projects will change (schedule, scope, or budget) as a result of new data or the status of specific sets of capital projects; Efforts related to rulemaking, policy changes, ordinance provisions and the like to allow or facilitate FP recommendations; Establishing partnerships that result in capital cost avoidance otherwise recommended in the FP; Updating the FP when data indicate a need; Monitoring of changes in state or federal regulations that may impact FP projects, and further analysis of the impact of these regulations on the recommended FP projects; Amending the FP; Investigating new technology to address District conveyance, storage, and treatment processes; Investigating the status of all MIS connections. The change in total project cost is de minimis. The operating budget impact is not known at this time. 167

181 ID #: Name: Phase Start Finish Cost M03029 Water Quality Studies Planning Apr-06 Dec-18 $6,031,676 Total $6,031,676 Previously Approved Total $6,031,839 Increase/(Decrease) ($163) The purpose of this project is to fund research studies for improving water quality in the Greater Milwaukee Watersheds. The studies are a resource for the continued evaluation and implementation of the District s 2020 Facilities Plan. The studies are designed to answer specific questions or needs of the District as it pertains to planning requirements. The project scope will take the information generated in these studies and disseminate it to those water resources managers and engineers who are responsible for the design, construction, and operation of various collection systems or have water resource management responsibilities. The decrease in total project cost is de minimus. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost M Facilities Planning - Ultimate Build-out Planning Oct-13 Jun-18 $8,961,033 Total $8,961,033 Previously Approved Total $8,736,025 Increase/(Decrease) $225,008 The purpose of this project is to ensure the District facilities will address future needs in an operationally sustainable and cost-effective manner. The project scope covers the District s facilities, policies, operations, and programs to meet the Clean Water Act, permit requirements, 2035 Vision goals, and ultimate build out of the District s planning area. This effort uses an asset management format and will result in a facilities plan consisting of five asset management plans for treatment, conveyance, watercourse, administrative facilities, and green infrastructure. This effort is required to update and replace the 2020 FP as a result of the District s WPDES permit, issued in The increase in total project cost is due to additional time required for data collection and air emission testing. No significant operating budget impact is expected. ID #: Name: Phase Cost M03044 I/I Reduction on Private Property Phase II Six-Year Forecast Total $30,000,000 Total $30,000,000 The purpose of this project is to provide a funding mechanism for municipalities to complete project work intended to reduce the risk of basement backups, sanitary sewer overflows, and combined sewer overflows. This project scope provides funding to municipalities for planning, design, investigation, and construction of projects intended to reduce infiltration and inflow (I/I) on private property. Expenses for actual work to reduce I/I implemented by the municipalities that is consistent and compliant with the approved District Policy and Guidelines will be reimbursed through this project to the limits of the municipality allocation according to the Policy. Annual reimbursement for the Private Property I/I (PP I/I) program are based on the preceding year s equalized value of each municipality. This is the means by which the tax levy is collected. Using this equation ensures that each municipality will get their proportionate share. The PP I/I Program is a capital program and does not have an approved total project cost. The 2017 expenditures are budgeted at $5 million; the six-year long-range financing plan includes $30 million. With regards to the operating budget impact, I/I Reduction on Private Property Phase II is a capital program that supports the District s capital infrastructure and mission through improvements to municipal or privately owned infrastructure. As a result, the District s capital expenditures on the program would generally not result in changes to the current level of O&M expenditures (as the resulting improvements are not operated or maintained by the District) but instead help to preserve the capacity and long-term cost-effective operation of the District s System. 168

182 ID #: Name: Phase Start Finish Cost M03048 Regional Green Roof Initiative Planning Jan-10 Dec-17 $4,992,395 Total $4,992,395 Previously Approved Total $5,079,500 Increase/(Decrease) ($87,105) The purpose of this project is to implement a District-wide Green Roof Program. Green roofs provide a significant reduction in the rate and volume of runoff of rainwater and snow melt, reducing the risk of flooding and sewer overflows. An average extensive green roof is capable of capturing 60 percent of the annual precipitation that falls on it. This technology provides the additional benefits of a significant reduction in energy usage for heating and cooling as well as extension of the lifespan of a conventional roof by double and more. The Regional Green Roof Initiative project scope is administered through an incentive program providing base funding of $5 per square foot. The budgeted funding specifically provides $5 per square foot of base funding for green roofs in the MMSD service area. The decrease in total project cost is due to a transfer of remaining funds to W96001 for Green Infrastructure Partnership Program funding. ID #: Name: Phase Start Finish Cost M03051 Alternative Energy Planning Planning Jun-10 Jan-18 $980,460 Total $980,460 Previously Approved Total $980,460 Increase/(Decrease) $0 The purpose of this project is to evaluate alternative and renewable sources of energy for operations at District facilities, consistent with the District s 2035 Vision in regard to pursuing a higher percentage generation and use of renewable sources of energy. The District has relied on alternative or renewable energy in the form of anaerobic digestion at South Shore and landfill gas and solar power at Jones Island, and this project would further enhance the District s energy position, gradually moving toward an alternative energy future. The project scope includes the evaluation of energy sources including but not limited to wind, solar, and sewer thermal projects. Based on evaluations of emerging technologies, recommendations may be made for related facilities or facilities improvements. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost M03059 TMDL Studies Planning Feb-11 Dec-17 $1,885,784 Total $1,885,784 Previously Approved Total $1,885,784 Increase/(Decrease) $0 The purpose of this project is to develop and support WDNR implementation of third-party fecal coliform, phosphorus, and sediment Total Maximum Daily Loads (TMDL) for various watersheds in southeastern Wisconsin. The results of the TMDL are the load and wasteload allocations by pollutant source that must be met to achieve the water quality standards and targets for each pollutant. This project addresses six beneficial use impairments within the Milwaukee Estuary Area of Concern. The operating budget impact is not known at this time. 169

183 ID #: Name: Phase Start Finish Cost M03062 Integrated Regional Stormwater Mgt Plan Planning Jan-11 Dec-19 $2,254,838 The purpose of this project is to evaluate and make recommendations for an integrated regional approach to stormwater management. Since sewersheds and sub-watersheds do not follow municipal boundaries, a regional approach to planning is necessary to begin to manage stormwater issues during large storm events. Currently, stormwater drainage in the region is mostly managed by municipalities, with stormwater pipe systems or roadway ditches generally designed for five- to 25-year storm events. The District has historically provided flood risk reduction only for structures in the 100 year floodplains along the rivers. Runoff from storms that exceed pipe system capacities usually flow down streets that may not have adequate slope or outlet relief to the rivers. When this happens, stormwater runoff can create surface flooding of homes and businesses and Total $2,254,838 Previously Approved Total $2,254,729 Increase/(Decrease) $109 Effective stormwater practices are integrated into the urban landscape to improve their function and performance. exacerbate inflow and infiltration into sanitary sewers. The project scope is to develop a plan to improve stormwater management within the District s region by integrating stormwater runoff issues with flood management to improve both drainage and water quality. The plan will identify and inventory noted drainage problem areas that are near potential floodplain relief locations, evaluate alternatives that provide both a water quality improvement and a water quantity drainage solution, and then suggest a recommended plan with costs. Solutions may include b ut are not limited to: home solutions, such as implementing green infrastructure; local storage solutions such as roadway storage, new or more underground conveyance, storage and neighborhood storage with water quality benefits; and relief solutions such as gravity outlets to floodplains or pumping. Solutions may also include an overall framework to allow or require stormwater management through coordination of permits, changes to zoning, and various point - of-sale approaches. The increase in total project cost is de minimus. No significant operating budget impact is expected. ID #: Name: Phase Start Finish Cost M03063 Private Lateral Inspection and Engineering Planning Apr-10 Dec-21 $9,810,188 Total $9,810,188 Previously Approved Total $8,003,714 Increase/(Decrease) $1,806,474 The purpose of this project is to work in conjunction with project M03044 to provide a funding mechanism for the inspection, engineering, and public information and education outreach associated with Private Property Infiltration and Inflow (I/I) reduction. This project scope provides for District work and associated costs for research of existing programs and policies related to publicly funded Private Property I/I (PP I/I) programs and creation of policy and guideline documents for use in District administration and management of th e District PP I/I program. The project also provides for District staff and contracted consultant services for guidance to the member municipalities to create their individual programs. The project provides for District staff and consultant services in administrative, management, District-level public involvement, and continuing research for the municipal PP I/I activities funded through M The increase in total project cost is due to the extension of the project by one year. The District s capital expenditures on the program would generally not result in changes to the current level of O&M expenditures (as the resulting improvements are not operated or maintained by the District), but instead help to preserve the capacity and long-term cost-effective operation of the District s system. 170

184 ID #: Name: Phase Start Finish Cost M03064 Fresh Coast Green Solutions Planning Jan-12 Jan-20 $8,140,874 Total $8,140,874 Previously Approved Total $6,840,873 Increase/(Decrease) $1,300,001 The purpose of this project is to plan, design, and provide related foundations for individual green infrastructure strategies and wider implementations that help to keep stormwater out of the combined and separate sewer systems, reducing the volume and frequency of combined and sanitary sewer overflows and basement backups during significant storms. The project will work in conjunction with key District initiatives, such as the Private Property Infiltration and Inflow (PP I/I) Reduction project, by funding for studies and plans to address stormwater before it flows into or infiltrates the District s system. This project also addresses the District s 2035 Vision and Strategic Objectives approved by the Commission in January The project scope includes several initiatives: Development of an overall, cost-effective green infrastructure program to supplement the District s PP I/I program, infiltrate stormwater away from conveyance pipes, and keep stormwater out of the District s sewerage system. Recommendations for solutions such as demonstration and scaled-up planning and design projects are central to this program. Expansion of a Menomonee River watershed municipality project throughout the region to consider how green infrastructure can supplement already-planned municipal projects listed in their capital improvement plans. Consideration of how green infrastructure can supplement watercourse improvements planned in the Kinnickinnic River watershed, complement and expand on green infrastructure efforts being undertaken by other entities, and provide for resiliency as climate change continues to alter historical precipitation patterns. The increase in total project cost is due the addition of scope that includes capital equipment necessary to maintain green infrastructure and to consider how GI can complement future TMDL compliance. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost M03072 Energy Plan Planning Jan-13 Mar-18 $599,642 Total $599,642 Previously Approved Total $599,643 Increase/(Decrease) ($1) This project will undertake planning for energy conservation projects that will aid progress toward ac hieving the 2035 Vision goals. The short-term focus of this project will be on facility lighting upgrade projects with relatively short return on investment periods. The change in total project cost is de minimus. The operating budget impact is not known at this time. 171

185 ID #: Name: Phase Cost M03076 Green Solutions Six-Year Forecast Total $14,792,719 Total $14,792,719 The purpose of this project is to help the District meet its permit requirement to capture 12 million gallons of stormwater over five years via green infrastructure by incentivizing municipalities within the District to implement green infrastructure. The project scope is to provide a funding mechanism to municipalities within the District service area that implement green infrastructure techniques. For those municipalities that chose not to use the funding on municipal property, the funds will become available to private property, non -profit, and non-municipal public property owners. The funding will annually be allocated to municipalities based on equalized value. The project is also consistent with the District s 2035 Vision and Regional Green Infrastructure Plan. Green Solutions is a capital program and does not have a total project cost. The 2017 budget includes $2,000,000 and the six-year forecast includes $14,792,719. As a result, the District s capital expenditures on the program would generally not result in an operating budget impact (as the resulting improvements are not operated or maintained by the District) but instead help to preserve the capacity and long-term cost-effective operation of the District s system. ID #: Name: Phase Start Finish Cost M03088 Corridor Study, Phase 5 Planning Dec-15 Apr-22 $2,238,845 Total $2,238,845 Previously Approved Total $2,238,846 Increase/(Decrease) ($1) The purpose of this project is to provide valuable information and baseline data from the Milwaukee Estuary, which the MMSD Commission is discussing incorporating under the MMSD watercourse jurisdiction. The data will provide inputs into the 2050 Facilities Plan as well. The project scope is a cooperative water quality research effort between MMSD and the United States Geological Survey (USGS) that will continue to expand research from previous phases and respond to new areas of interest as identified by regulation, facilities planning, and Executive Director requests. The proposed Phase 5 will focus on ecology, restoration evaluation, micro plastics, trace organics, optical properties of water, pathogens, water quality trends, alternative deicers, polyromantic hydrocarbons (PAHs), streamflow gauging, and other needs identified as the study progresses. The change in total project cost is de minimus. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost M03091 Ad Hoc Water Quality Studies Design Jan-17 Dec-21 $6,479,624 Total $6,479,624 Previously Approved Total $0 Increase/(Decrease) $6,479,624 The purpose of this project is a continuation of M03029-Ad Hoc Water Quality Studies under a new capital project number for operational efficiencies. Research projects identified from issuing RFPs are prioritized on how they will benefit the District s 2035 Vision, strategic plan, facilities plan, and operational needs. There is no change in total project cost as this is a new project. The operating budget impact is not known at this time. 172

186 ID #: Name: Phase Start Finish Cost M03092 Regional Resiliency Infrastructure Plan Planning Jan-17 Aug-18 $750,000 Total $750,000 Previously Approved Total $0 Increase/(Decrease) $750,000 The District evaluates its infrastructure needs in a variety of ways, including repair versus replace, green vs gray, short-term vs long-term in order to provide infrastructure recommendations to the District s system that serves the 28 municipalities. This plan will expand on these analyses by adding a resiliency and sensitivity analysis to a variety of factors that impact District infrastructure. This plan will help make the District s system more resilient to unanticipated events, particularly those related to weather. This effort will ultimately help develop effective strategies to foster a more resilient region. This is a new project. The operating budget impact is not known at this time. Workforce & Business Development Resource Program In an effort to address the shortage of qualified, non-traditional workers and firms in the engineering and construction industries, the District funds and manages the Workforce & Business Development Resource Program. ID #: Name: Cost M04002 Workforce & Business Development Resource Program The four key goals of the Workforce & Business Development Resource program are: Six Year Forecast Total $3,000,000 Total $3,000, Train and retain more minorities and women as apprentices in the construction trades. 2. Recruit, identify, and place talented college students from the region that are studying construction management, engineering, or science, with internships with District contractors and consultants. 3. Increase the capacity of small, minority and women-owned businesses to compete and succeed as primes and subcontractors on the District s construction and engineering projects. 4. Build the managerial capacity of non-traditional participants employed by District engineering consultants and construction contractors. The Workforce & Business Development Resource Program consists of four program components: pre-apprenticeship training and placement, consulting and construction management training, business development training, and the Regional Internships in Science and Engineering (RISE) program for college students. The District will continue to focus on three key strategies: integration, collaboration, and evaluation. The scope will continue to integrate this program with the long-term needs of the District s six-year Capital Improvement Program. The District needs to build on the growing collaborations with other public and private funders to strengthen the programs and leverage scarce resources. Additionally, the District needs to continue to evaluate and measure its short and longterm success at ensuring that the workers, contractors, and consultants that work on its capital projects reflect the diversity of the region we serve. The Workforce & Business Development Resource Program does not have an approved total project cost. The 2017 expenditures are budgeted at $500,000; the six-year long-range financing plan includes $3 million. The Workforce and Business Development Resource Program is a capital program which supports the District s Capital Improvement Program by training and developing the local workforce so that they are better able to compete for and sucecedd as prime and sub-contractors on the District s construction and engineering projects. As a result, the District s capital expenditures on the program would generally not result in an operating budget impact (as the resulting improvements are not operated or maintained by the District). 173

187 Information Technology Systems ID #: Name: Phase Start Finish Cost M06013 Capital Program Management System Planning Aug-14 Dec-18 $1,485,899 Total $1,485,899 Previously Approved Total $737,000 Increase/(Decrease) $748,899 The purpose of the project is to preserve and expand efficiencies and effectiveness in managing the District s ongoing Capital Improvement Program (CIP). The District s current Oracle Primavera software used to prepare, evaluate, and manage Capital Improvement Program projects and contracts is sixteen years old. The current software is either without support or soon to be unsupported. The scope of this project is to replace the current software and, in the process, take advantage of opportunities to enhance project, portfolio and overall capital improvement program management and administration practices. A goal of the new system is to provide user-friendly ability to create, budget, track, and manage capital projects from planning through to completion, in addition to providing information to support asset management. The District anticipates being able to realize efficiency gains with new software via improved role-based internal and external stakeholder access to project, portfolio, and overall capital improvement program information and by increased utilization of process workflows. The increase to total project cost is due to the actual contractual cost of the selected solution. The operating budget impact is an annual license fee. ID #: Name: Phase Start Finish Cost M06014 WRF Building Information Modeling Design Nov-14 Feb-19 $742,808 Total $742,808 Previously Approved Total $729,352 Increase/(Decrease) $13,456 The purpose of this project is to evaluate a scalable and maintainable solution for sharing Water Reclamation Facilities data that integrates with other District systems. Project scope will create a Building Information Model (BIM) which consists of 3D renderings (computer based models) of facilities and assets at Jones Island and South Shore WRFs that may also associate record drawings, contracts, photos, inventories, and other asset information directly to the 3D models. The goal of the project is to evaluate the cost and benefit of a BIM system would have to improve decision-making, increase efficient emergency response, and support efficient access to information for the District s two Water Reclamation Facilities. The change in total project cost is due to refined cost estimates. The operating budget impact is not known at this time. ID #: Name: Phase Start Finish Cost M06015 Real Estate Software Planning Jan-17 Dec-17 $150,000 Total $150,000 Previously Approved Total $0 Increase/(Decrease) $150,000 The purpose of this project is to procure a new tool to enable all District stakeholders to have access to the location and attribute data associated with real estate holdings of the District. The current software is no longer supported and does not meet the needs of the end users. In addition, the new solution will help manage the real estate acquisition process and better communicate the status of the acquisition process to stakeholders. This is a new project. The operating budget impact is unknown at this time. 174

188 Financial Planning ID #: Name: Cost M07002 Financial Planning Six Year Forecast Total $1,550,000 Total $1,550,000 The purpose of this project is to reduce the cost of borrowing through: Favorable bond ratings, An appropriate mix of borrowing and cash financing, with at least 25 percent cash financing of project expenditures over the six-year plan, Below-market rate loans from the State Clean Water Fund Program, and Capture of grant funds. The project scope aims at specialized financial planning services to support the District s objective of limiting the proportion of the regional economy needed to finance capital projects. The 2017 Capital Budget will fund financial planning efforts performed by internal staff and outside consultants as the District prepares for a competitive bond sale, grant and loan applications and reimbursement requests, and lobbies for favorable funding legislation. The 2017 Capital Budget includes the six-year long-range financing plan to the year 2022, reflecting implementation of projects included in the District s 2020 Facilities Plan. Financial planning provides funding for internal staff time and outside professional services necessary to obtain financing for capital projects, including: Bond Counsel Escrow Trustee Lobbying Activities for Grant Legislation & Award Arbitrage Rebate Calculation Financial Advisor Rating Agencies Clean Water Fund Program Application & Closeout Bond Registrar Grant Applications The financial planning account does not have an approved total project cost because it is an ongoing capital project support program. The 2017 expenditures are budgeted at $300,000; the six-year long-range financing plan includes $1,550,000. There is no significant operating budget impact. Risk Management Program ID #: Name: Cost M09002 Risk Management Program Six Year Forecast Total $7,861,774 Total $7,861,774 The purpose of the program seeks to reduce the risk of losses associated with the District s Risk Management Program. The program scope of the District s Risk Management Program includes the following elements: Contractual requirements with consultants and contractors to ensure specified amounts and types of insurance coverage for each design and construction contract. The District has contracted with its insurance broker to monitor compliance with contract insurance requirements. The purchase of insurance by the District to address the potential for losses in excess of limits required from contractors and consultants, including professional liability insurance and environmental liability insurance. Construction safety program, including construction contractor requirements and oversight by District staff and safety professionals. A District Consultant Activity Review Committee to identify, analyze, and determine costs of incidences of deficient work products prepared by consultants. The Risk Management Program does not have an approved total project cost because it is an ongoing construction support program. The 2017 expenditures are budgeted at $1,958,252; the six-year long-range financing plan includes $7,861,774. Costs of the Risk Management Program are allocated to capital projects on the basis of construction contract expenditures. There is no significant operating budget impact. 175

189 General Other Projects ID #: Name: Cost M99001 Allowance for Cost & Schedule Changes Six Year Forecast Total $12,759,120 Total $12,759,120 The purpose of this account is to provide a source of funds to address unanticipated contract changes and changes in project cash flows. By planning for the payment of these expenditures, this account supports the District s goal of maintaining a stable tax rate over the planning horizon. Commission policy requires the Allowance for Cost and Schedule Changes to be funded at no less than two percent and no greater than five percent of capital expenditures. The Allowance for Cost and Schedule Changes in the six-year plan is budgeted at two percent per year. Allowance accounts do not have an approved total project cost. The long-range financing plan includes $12.8 million with $1,762,461 budgeted for There is no significant operating budget impact. ID #: Name: Cost M99002 Operator Contribution to CIP Six Year Forecast Total $300,000 Total $300,000 The operating contract with Veolia Water Milwaukee (VWM) includes provisions for VWM to participate in current and planned District capital projects. VWM reviews the annual capital budget, reviews and creates requests for new projects, attends meetings, and participates in the implementation of capital projects. Operator contribution to CIP accounts do not have an approved total project cost. The long-range financing plan includes $300,000 with $100,000 budgeted for There is no significant operating budget impact. ID #: Name: Phase Cost L09002 Replacement Laboratory Equipment Construction $93,000 Total $93,000 Previously Approved Total $0 Increase/(Decrease) $93,000 The purpose of this account is to replace laboratory equipment. The equipment requested to be replaced is not supported by new technology or is worn from constant use. The equipment has been properly maintained, but continued maintenance is not as cost effective as replacement. The project scope includes replacement of a microscope and laboratory grade dishwasher. The current microscope used in the microbiology section was purchased in The replacement instrument will be capable of reproducing images digitally and will have photographic capabilities, bringing the section up to speed with current technology. The current laboratory grade dishwasher is at the end of its useful life. The change in total project cost is for the addition of these capital purchases. The impact on the operating budget will be lowered maintenance costs for the equipment. 176

190 District Green Infrastructure Implementations 177

191 178

192 Debt Service The Wisconsin State Statutes allow the District to finance capital improvements through the issuance of debt instruments, including: general obligation bonds and notes; bond anticipation notes; and revenue bonds and notes. Issuance of bonds and notes require a vote of at least two-thirds of all Commissioners except in the case of emergency borrowing which requires a vote of three-fourths of all Commissioners. The District s debt policy seeks to ensure the maintenance of sound debt position and the protection of the District s credit quality. The District s debt policy provides an appropriate balance between establishing limits on the debt program and providing sufficient flexibility to respond to unforeseen circumstances and new opportunities. Key limits in the debt policy include: The District s intent to keep outstanding general obligation debt to no more than 2.5 percent of its equalized property value of member communities. The District s intent to cash finance at least 25 percent of project expenditures over the six-year financing plan. No more than 15 percent of its outstanding general obligation bonds in variable rate form. Advance refunding for economic savings to be undertaken only when net present value savings of at least 2 percent. In acknowledgement of its financial management and planning strength, the District continues to receive strong credit ratings. In September 2015, Standard & Poor s Ratings Services affirmed the District s AA+ credit rating with a stable outlook. The rating report cited the District s large and diversified property tax base; sound fiscal operations with strong liquidity and strong financial management; and moderate overall debt burden with rapid amortization in affirming the AA+ rating which has remained unchanged since Also, in September 2015, Moody s Investors Service affirmed its credit rating Aa1. Moody s report noted that the District s Aa1 rating reflects sound financial operations that benefit from strong financial flexibility and adequate liquidity levels. Since July 2007 Fitch Ratings has rated the District as a AAA credit, most recently affirming the AAA rating in September As of August 31, 2016, the District has $904.7 million of general obligation debt outstanding. Principal Amount ($0) True Interest Cost (%) District Bonds $ % Clean Water Fund Program Loans $ % Total $904.7 The District is subject to a statutory debt limit of 5% in the Wisconsin Statutes Section but District policy further limits this to 2.5% Equalized Valuation (Estimate) $56,188,121, % Statutory Debt Limit Rate 5.00% Statutory Debt Limit $2,809,406,055 General Obligation Debt Outstanding at August 31, 2014 $904,702, % Legal Debt Margin $1,904,703,121 The debt financing strategy focuses on managing the District s debt capacity, operating the District in a fiscally prudent manner, contributing to the stability and growth of the region s tax base and customer base, by maintaining or improving the District s bond rating : Debt as a % of Equalized Value 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Estimate Budget Forecast 179

193 Total debt service payments in 2017 are budgeted at $126.6 million. Of this amount, $24.6 million is from debt service funds and $3.6 million is from available funds on hand. The remaining $98.4 million is funded by tax levy. In 2017, the District does not plan to issue general obligation debt but plans to receive an additional $33.8 million in low-interest loan funds from the State of Wisconsin Clean Water Fund Program. Debt Service Schedules All Amounts in $ Thousands Six Year Estimate Budget Forecast Forecast Forecast Forecast Forecast Total District Bonds 48,218 49,720 35,837 37,979 43,224 45,595 43, ,750 CWFP Loans 72,120 72,750 74,051 75,585 76,280 74,713 63, ,932 WEDC Loan 2, Intergovt. Loan 1,693 4,166 1,693 1,692 1,692 1,691 1,691 12,625 Total Debt Service $124,737 $126,636 $111,581 $115,256 $121,195 $121,999 $108,639 $705,306 NOTE: Totals may not add due to rounding. The debt service schedules in the table above summarize the District s existing debt and projected debt as indicated in the Long-Range Financing Plan on page 93. The chart below depicts the reduction over time of existing debt service and the incremental projected debt service for any new debt beginning in $140, General Obligation Debt Service $120,000 $100,000 Thousands $80,000 $60,000 $40,000 $20,000 $ Year Existing Projected District General Obligation Bonds District bonds supplement other revenue sources to fund the Capital Improvement Program. This project represents the budget year s repayment obligation of this funding. Timely principal and interest payments are critical in maintaining the District s bond rating. This project funds payments to holders of District bonds for principal and interest coming due in Seven District-issued general obligation bond series are currently outstanding. The District typically finances a major portion of its Capital Improvement Program with 20-year, level payment, long-term debt in the form of either its own general obligation bonds or low-interest Clean Water Fund Program loans from the State of Wisconsin. In 2015, the District the refunded most of its 2008 F issue to reduce future debt service cost. The District executed the refunding as the following parameters were met: the maxium true interest cost will not exceed 3.50% and the minmum present value savings will exceed 2.00 percent. The 2017 Capital Budget assumes an interest rate of 4 percent for this new money issue. No significant impact to the operating budget. 180

194 Budgeted debt service in 2017 for District-issued general obligation bonds is as follows: Series District Bonds 2017 Net Debt Service All Amounts in Thousands Gross Debt Service Less: Debt Service Fund Net Debt Service 2003I 6, , A 6, , A 22,442 18,325 4, F 3, , L 4, , A 3,700 3, C 1, ,290 New Bond 1, ,250 Total $49,720 $22,734 $27,636 NOTE: Totals may not add due to rounding. Estimated debt service requirements in the 6-year plan for District-issued bonds, including $255.8 million of new bonds projected to be issued through 2022 are as follows: District Bonds Debt Service Schedule All Amounts in Thousands Year Total , , , , , ,396 Total $255,750 NOTE: Totals may not add due to rounding. Clean Water Fund Program Loans Clean Water Fund Program loans are a funding source for most major conveyance and water reclamation facility capital projects. This project represents the budget year s repayment obligation of this funding to the State of Wisconsin. Timely principal and interest payments are critical in maintaining the District s bond rating. The Clean Water Fund Program, established under section and of Wisconsin Statutes, provides low-interest loans for the construction of wastewater treatment works, non-point source pollution projects and estuary projects. Each loan is for a period of 20 years with principal payment beginning within 12 months after the expected date of project completion. Since the beginning of the loan program in 1991, the District has received 118 loan awards totaling $1.343 billion at interest rates ranging from to percent. Projects for compliance maintenance receiving State fiscal year 2017 funding are eligible for loans at 70 percent of the Clean Water Fund Program market interest rate. No significant operating budget impact is expected. This project provides payments to the State of Wisconsin in 2017 for financial assistance received under the Clean Water Fund Program Clean Water Fund Program All Amounts in Thousands Gross Debt Service $72,750 Less Debt Service Fund $1,851 Total $70,899 In 2017, the District expects to receive $33.8 million in project expense reimbursements from low-interest, 20-year loans from the Clean Water Fund Program. Nine new loans are expected to be awarded from December 2016 through December Estimated debt service requirements for Clean Water Fund Program loans, including disbursements from new loans projected to be received through 2022 are as follows: Clean Water Fund Program Debt Service Schedule All Amounts in Thousands Year Principal Interest Total ,143 15,607 72, ,943 15,108 74, ,157 14,429 75, ,699 13,580 76, ,815 12,898 74, ,904 12,649 63,553 Total $352,661 $84,271 $436,932 NOTE: Totals may not add due to rounding. 181

195 Wisconsin Economic Development Corporation Loan In August 2010, the District entered into a State Energy Program Agreement with the Wisconsin Department of Commerce. Pursuant to 2011 Wisconsin Act 32, the Agreement was transferred to the Wisconsin Economic Development Corporation (WEDC), a public body corporate and politic succeeding the Department. The WEDC has provided the District $5.9 million for the purpose of economic development pursuant to the American Recovery and Reinvestment Act of The loan from WEDC provides partial funding for the Gas Turbine Replacement, Project J06037, at the Jones Island Water Reclamation Facility. The loan was interest-free through April The District repaid the remaining loan principal prior to May 1, Unlike most other District debt which is secured by a tax levy pledge, the security for repayment of the loan from the WEDC is in the form of a security interest on the equipment purchased with loan funds. No significant operating budget impact is expected. Debt service requirements for the WEDC loan are as follows: Wisconsin Economic Development Corporation Loan All Amounts in Thousands Year Principal Interest Total Prior 5, , Total $5,945 0 $5,945 Intergovernmental Loan In 2010, the District entered into an Intergovernmental Cooperation Agreement with the City of Franklin to design, construct, and finance the Ryan Creek Interceptor which will ultimately become an asset of the District. The City of Franklin has received a Clean Water Fund Program loan of $24,588,635 at 2.46 percent for the project. The District s obligation is to make payments to the City of Franklin, beginning in 2015, which will equal the total principal and interest on the CWFP loan. The CWFP loan will be paid off in Ownership of the Ryan Creek Interceptor will transfer to the District at that time. No significant operating budget impact is expected. Debt service payments to the City of Franklin are as follows: Intergovernmental Loan with City of Franklin All Amounts in Thousands Year Principal Interest Total Prior 2,286 1,101 3, ,288 1,878 4, , , , , , , , , , , ,635 1,565 15,200 Total $24,589 $6,623 $31,

196 Glossary of Acronyms and Terms BOD BMPs CAFR CMOM CNG COD CSO D&D DNR EPA FEMA GAAP GFOA GI GIS GBT H2S HHW I/I I&C IPS ISS IWI IWPP LEED LFG LID LIMS Biochemical Oxygen Demand Best Management Practices Comprehensive Annual Financial Report Capacity, Maintenance, Operation and Management Compressed Natural Gas Chemical Oxygen Demand Combined Sewer Overflow Drying and Dewatering Facility Department of Natural Resources United States Environmental Protection Agency Federal Emergency Management Agency Generally Accepted Accounting Principals Government Finance Officers Association Green Infrastructure Geographic Information System Gravity Belt Thickener Hydrogen Sulfide Household Hazardous Waste Infiltration and Inflow Instrumentation and Control System Interplant Sludge System Inline Storage System (Deep Tunnel) Index of Watershed Indicators Industrial Waste Pretreatment Program Leadership in Energy and Environmental Design Landfill Gas Low Impact Development Laboratory Information Management Systems M7 Milwaukee 7 MBE MCRR MGD MIS MMAC MMSD Minority Business Enterprise Material Capital Repair and Replacement Million Gallons per Day Metropolitan Interceptor Sewer System Metropolitan Milwaukee Association of Commerce Milwaukee Metropolitan Sewerage District 183

197 NACWA NS NPDES NWSRS OCIP P2 PCB PPII QA/QC RACM RAS SEWRPC SSES SSO SWMBE SWWT TAT TAS TMDL TSS VFD VWM WAS WDNR WII WisDOT WPAP WPDES WRF WRP National Association of Clean Water Agencies North Shore Interceptor National Pollution Discharge Elimination System Northwest Side Relief Sewer Owner Controlled Insurance Program Pollution Prevention Initiative Poly Chlorinated Biphenyl Private Property Infiltration and Inflow Quality Assurance and Quality Control Redevelopment Authority of the City of Milwaukee Return Activated Sludge Southeastern Wisconsin Regional Planning Commission Sewer System Evaluation Survey Sanitary Sewer Overflow Small, Women-, or Minority-Owned Business Enterprise Southeastern Wisconsin Watershed Trust Technical Advisory Team Thickened Activated Sludge Total Maximum Daily Loads Total Suspended Solids Variable Frequency Drive Veolia Water Milwaukee Waste Activated Sludge Wisconsin Department of Natural Resources Water Impact Index Wisconsin Department of Transportation Water Pollution Abatement Program Wisconsin Pollutant Discharge Elimination Systems Water Reclamation Facilities Watershed Restoration Plan 184

198 Abatement: The measures taken to reduce or eliminate pollution or the tax levy. Acre-Foot: A term used in measuring the volume of water that is equal to the quantity of water required to cover 1 acre, 1 foot deep; 43,560 cubic feet. Storage volumes are usually expressed in acre-feet. Accrual Basis of Accounting: A method of accounting in which revenues are recorded when measurable and earned, and expenses are recognized when a good or service is used. Activated Sludge (AS): The interaction of microorganisms, wastes, and oxygen to form sludge. Activation takes place during the aeration process. Activated Sludge Process: A biological process that removes pollutants by breaking down organic matter in raw sewage and converting it into sludge. AS process is the form of secondary treatment used by the District. Ad Valorem Tax: A tax levied according to the value of the property, merchandise, etc., being taxed. Agri-Life : An anaerobically digested, organic sludge formerly produced at the South Shore Water Reclamation Facility. It is injected into farmland as a soil conditioner and is also reprocessed into Milorganite. Anaerobic Digestion: The process by which sludge is stabilized by biological action in a temperature-controlled, oxygen-free (anaerobic) environment (digesters). The stabilized sludge is injected into farmland as a soil conditioner (Agri-Life ). The digester gas resulting from the biological action provides energy to run the South Shore plant. Appropriation: A sum of money or total of assets devoted to a special purpose. Average Flow: Average quantity of wastewater entering the treatment system over a given period of time. Balanced Budget: A budget in which current revenues equal current expenditures. Biochemical Oxygen Demand (BOD): A measure of the amount of oxygen used up in the anaerobic decomposition of organic matter. The BOD test utilizes the oxygen from air dissolved in water and reflects treatability or stage of decomposition. It gives a direct measurement of the strength of wastewater, usually expressed in mg/l (milligrams per liter). Bio-swale: Landscape designed to remove silt and pollution from surface runoff water. Bond: A written promise to repay debt on a specific date in the future, along with payment of a specified amount of interest at predetermined intervals while the debt is outstanding. Bypass: A flow relief device by which sanitary sewers, intercepting sewers or main sewers can discharge a portion or all of their flow, by gravity, into a receiving body of surface water to alleviate surcharging of intercepting or main sewers. Capacity assurance, Maintenance, Operation and Management (CMOM): A program where the District works with the 28 communities in its service area to control the degradation of the sewer systems and curtail infiltration and inflow. Capital Budget: A planned schedule of projects that acquire or improve land, waters, property or facilities to enhance sewerage services in the District s service area. Capital Expenditure: The costs of acquiring, purchasing, adding to, leasing, planning, designing, constructing, extending, and improving all or any part of a sewerage system and of paying principal, interest or premiums on any indebtedness incurred for these purposes. To be a capital expenditure project costs must be greater than or equal to $25,000, with a service life of ten or more years and must represent an identifiable addition to facilities or extend the service life of existing facilities. Equipment replacement costs must be greater than or equal to $25,000 and a service life greater than 20 years. Capital Improvement Program (CIP): A long-range plan of the District for the construction rehabilitation and replacement of the District-owned and operated infrastructure. Channelization: The artificial enlargement or realignment of a stream channel. Chlorination: Chlorine is added to the reclamation facility effluent before it is discharged into Lake Michigan to kill most of the bacteria. Clean Water Fund Loan: This program provides low-interest loans for the construction of wastewater treatment facilities, nonpoint source pollution projects, and estuary projects. Clearwater: Water entering the sanitary sewer system through infiltration or inflow. It reduces the sewer system capacity to carry sanitary sewage. 185

199 Coarse Screening: First step in preliminary treatment, which removes debris from the wastewater by screening. Collection and Transportation System: A series of sewers, manholes, pumping facilities, and force mains, which carry wastewater from residences, commercial establishments, public buildings, institutions, and industrial plants. It terminates at a reclamation facility. Bypasses are considered a part of this system. Collector Sewers: That portion of the collection and transportation system, which gathers wastewater from individual buildings and transports it through a network of sanitary sewers to interceptor sewers. Combined Sewers: Sewers that carry both, sewage and stormwater runoff. Compressed Natural Gas (CNG): A fossil fuel substitute for gasoline, Diesel fuel, and propane. CNG is an alternative to gasoline that is made by compressing natural gas to less than 1 percent of its volume at standard atmospheric pressure. It consists mostly of methane, and is odorless, colorless, and tasteless. It is drawn from domestically drilled natural gas wells or in conjunction with crude oil production. Conveyance System: The system of sewers designed and operated to intercept and carry sewage from local government collection systems to the water reclamation facility. Datalogger: An electronic device that records data over time or in relation to location. The District uses dataloggers to collect continuous groundwater level measurements at 30 minute increments. Debt Service: Payments of interest and principal on bonds or other long-term borrowing. Deep Tunnel: A major project of the Water Pollution Abatement Program that consisted of constructing 28.5 miles of tunnels 300 feet underground and designed to minimize sewer overflows. (Also see Inline Storage System) Depreciation: A measure of the decrease in value of an asset over a specific period of time. Design Flow: Average quantity of wastewater, which a water reclamation facility is designed to handle, expressed in millions of gallons per day (MGD). Dewatering: Any process that removes water from sludge, i.e., vacuum filtering, centrifuging, decanting, heat-drying, etc. The term is also used to describe the removal of groundwater during sewer construction projects. Dissolved Oxygen: Oxygen dissolved in water (as opposed to gaseous oxygen which occurs in water only as bubbles), available for respiration by most aquatic organisms. District: The area that is provided water reclamation services by the Milwaukee Metropolitan Sewerage District. Drop Shaft: A vertical shaft used to get wastewater from the surface to the Inline Storage System. Dryer Cyclone: The Dryer Cyclone is a piece of equipment used as part of the Milorganite process to remove dust particles from the dryer exhaust. Easements: A right to obtain access to property; can be temporary or permanent. Effluent Discharge: (1) A liquid which flows out of a containing space; (2) Sewage, water or other liquid, partially or completely treated, or in its natural state, flowing out of a reservoir, basin or reclamation facility, or part thereof. Effluent Limitations: The maximum amount of a pollutant that a point source may discharge into a water body. They may allow some or no discharge at all, depending on the specific pollutant to be controlled and the water quality standards established for the receiving waters. Enterprise Fund: Utilized to account for operations that are financed and operated in a manner similar to private sector enterprises where the cost of providing services to the general public is recovered primarily through user charges. Environmental Assessment: The aspect of the facility planning process and resulting report analyzing environmental, social, and economic implications of the proposed alternatives. Environmental Protection Agency (EPA): The federal agency responsible for regulating water quality and the Federal Clean Water Act. Equipment Replacement Fund: In accordance with Wisconsin Department of Natural Resources requirements, a reserve fund established by the District equal to 5 percent of the asset value of District equipment with a value over $25,000 and useful life between 10 and 20 years. 186

200 Extraterritorial Communities: Communities outside the Milwaukee Metropolitan Sewerage District boundaries that receive contracted service from the District. Fecal Coliforms: Euteric bacteria, primarily Eschericia coli, found in fecal matter and used as indicators of the presence of pathogenic bacteria. Filter Cake: Sludge that has been dewatered in the vacuum filters and is ready for heat drying into Milorganite ; it has a water content of 86 percent and looks like wet cardboard. Fine Screening: Final step of preliminary treatment at Jones Island, which removes fine particles and debris such as hair and cigarette butts not caught in coarse screening. Fiscal Year: The time period designated by the District signifying the beginning and ending period for recording financial transactions. Floodplain: Land which may be covered by flood water during the 1% annual probability flood event. It includes the floodway and the floodfringe, and may include other designated floodplain areas for regulatory purposes. Floodwall: A concrete or masonry embankment built to restrain the flow of water of a river bank and protect land from flooding. Full-time Equivalent: A unit that indicates the workload of an employed person (or student) in a way that makes workloads or class loads comparable across various contexts. Fund: A sum of money or other resources whose principal or interest is set apart for a specific objective. Fund Balance: The difference between a fund s assets and its liabilities. Portions of the fund balance may be reserved for various purposes, such as contingencies or encumbrances. Geographic Information System (GIS): An organized collection of computer hardware, software, geographic data, and personnel designed to efficiently capture, store, update, manipulate, analyze, and display all forms of geographically referenced information. Green Infrastructure: An adaptable term used to describe an array of products, technologies, and practices that use natural systems or engineered systems that mimic natural processes to enhance overall environmental quality and provide utility services. As a general principal, Green Infrastructure techniques use soils and vegetation to infiltrate, evapotranspirate, and recycle stormwater runoff. Green alleys, streets, and parking lots: Green alleys, streets and parking lots are typically in the public right-of-way and can provide a combination of different benefits designed to channel, infiltrate and evapotranspire rainwater. They include permeable pavement, sidewalk planters, landscaped medians and bio-swales, inlet restrictors, greenways and trees, and can also take advantage of recycled materials. Green Roofs: Green roofs (also known as eco-roofs) are either partially or completely planted with vegetation growing in soil (or a growing medium) to hold rainwater. They can be planted in waterproof trays or on top of a waterproof barrier, and can be intensive (like a rooftop park) or extensive (relatively lightweight). They function for stormwater management purposes when they are lush and green as well as when they are dormant. Greenways: Greenways include riparian and non-riparian buffer zones and strips that store and drain stormwater runoff into the ground naturally. As vegetated strips that help to infiltrate and evapotranspire both rainwater and snow melt, they can be placed along bike paths, sidewalks, riverbanks, and streets. They can be planted in native vegetation, in mowed grass, and as gardens. Heat Drying: Final step in the production of Milorganite. Rotary drum dryers tumble-dry filter cake into a dry granular product that can be packaged. Heat drying destroys pathogens in the sludge (filter cake). Hydrogen Sulfide: A colorless gas with the characteristic foul odor of rotten eggs. It is heavier than air, very poisonous, corrosive, flammable, and explosive. It results from the bacterial breakdown of organic matter in the absence of oxygen, such as in sewers. Impervious Areas: Any pavement or structural element including, but not limited to, roofs and paved roads, driveways, and parking lots, that prevents rain, surface water runoff, or melting snow from infiltrating into the ground below. Lack of infiltration can increase surface runoff and contribute to flood risk and pollutant transport. 187

201 Industrial Cost Recovery: A provision in the 1972 Federal Water Pollution Control Act (FWPCA) that requires industries to pay back to the federal government the extra capital costs that their discharges impose on municipal treatment plants. (The 1977 Clean Water Act established an 18-month moratorium on Industrial Cost Recovery). Infiltration/Inflow (I/I): Total quantity of water entering a sewer system. Infiltration means entry through such sources as defective pipes, pipe joints, connections or manhole walls. Inflow signifies discharge into the sewer system through service connections from such sources as area or foundation drainage, springs and swamps, storm waters, street wash waters, or sewers. Influent: The wastewater entering the reclamation facility. Inline Storage System (ISS): The Inline Storage System (ISS) provides relief to the Metropolitan Interceptor Sewer (MIS) system during extreme wet weather periods by allowing excess flows from the MIS to be diverted to the ISS in both the separate sewer area and the combined sewer service areas. The excess flow is stored in the ISS until reclamation facility capacity is available. (Also see Deep Tunnel) Instrumentation & Control (I&C): Equipment used to monitor and control wastewater treatment processes such as flows, dissolved oxygen levels, valve positions, and equipment operations. Interceptor: A sewer that carries sanitary waste that is built by the District. These are large sewers that collect wastewater from local trunk sewers and convey it to the water reclamation facility. Intergovernmental Cooperation Council (ICC): Comprises 19 communities located within Milwaukee County. The mayors and village presidents meet on a monthly basis to discuss topics of common interest and regional concern. Laboratory Information Management System (LIMS): An automated system used by the District s Central Laboratory, Industrial Waste and Water Quality Research departments to manage data including test scheduling, case log-in, worksheets, instrument interfaces, reporting, research, test results, and dispersion of the results to designated areas. Lateral: That part of the horizontal piping of a drainage system which extends from the end of a building drain and which receives the building discharge and conveys it to the sewer system. Lift Station: A facility in a sewer system consisting of a receiving chamber, pumping equipment, and associated drive and control devices which collect and lift wastewater to a higher elevation when the continuance of the sewer at reasonable slopes would involve excessive trench depths; or that collects and raises wastewater through the use of force mains from areas too low to drain into available sewers. Low Impact Development (LID): Integrates ecological and environmental considerations into all phases of urban planning, design, and construction in order to avoid encroaching on environmentally fragile or valuable lands, and to decrease runoff volumes and peak flow impacts. Milwaukee 7 (M7): Milwaukee 7, launched in September 2005, was formed to create a regional, cooperative economic development platform for the seven counties of southeastern Wisconsin: Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington and Waukesha. Its mission is to attract, retain and grow diverse businesses and talent. Metropolitan Interceptor Sewers (MIS): Portion of the collection and transportation system, which receives wastewater from collector sewers from conveyance to the point of treatment and are owned and maintained by the Milwaukee Metropolitan Sewerage District. An interceptor sewer is designed to have a limited number of connections for receiving wastewater from the collector sewer system. Milorganite : An organic nitrogen fertilizer (6-2-0) produced from waste-activated sludge at the Jones Island plant that is an excellent lawn and turf, non-burning, slow release fertilizer. Minority Business Enterprise: An independent business concern that is at least 51 percent owned and controlled by minority members, that has undergone a pre-certification process that enables it to receive enhanced consideration on bids and proposals it submits to MMSD. Native Landscaping: The use of native plant species that can tolerate the drought and flooding cycles of an area. Native plants are those that evolved in a particular area and are adapted to local climate conditions. Nonpoint Source Pollutants: Pollutants which do not enter the water from any discernible, confined and discrete conveyance but rather wash off, run off or seep from broad areas of land. 188

202 North Shore Interceptor (NS): That portion of the Inline Storage System that connects to the Crosstown Interceptor and proceeds north to West Hampton and then west to North 51 st Street. Other drop shafts (NS 4, 5, 12, etc.) connect to the NS. NS 4, 5, 12, etc.: Drop shafts connecting to North Shore Interceptor. Operations and Maintenance (O&M) Budget: Annual budget for activities related to controlling, operating, managing, and maintaining the sewerage system. Overflow: A flow relief device by which sanitary sewers, intercepting sewers or main sewers can discharge a portion or all of their flow, by gravity, into a receiving body of surface water to alleviate surcharging of intercepting or main sewers. Peak Flow: The maximum volume of effluent expected to enter a treatment system over a given time period. Treatment systems are designed based on an estimate of the rate of peak flow to average flow for different segments of the system. Phosphorus Removal: Excess phosphorus in Lake Michigan can kill off fish life by stimulating the growth of excess algae. A small amount of iron sulfate (pickle liquor) is added to the wastewater. The iron combines chemically with the phosphorus and settles into the sludge that is removed. Pickle Liquor (Iron Sulfate): A chemical waste from local industries that is used to remove phosphorus from wastewater. Point Source Pollutants: Those that enter the water from any discernible, confined, and discrete conveyance such as a sewer pipe, culvert, tunnel, or other channel. Pollution Prevention Initiative (P2): Within the Industrial Waste Pretreatment Program, a point source control system that involves the elimination of hazardous material inputs, improvements to in-production processes, and the closed looping of residual streams. Porous Pavement: porous pavement can reduce and infiltrate surface runoff through its permeable surface into a stone or filter media below. Runoff then percolates into the ground, is conveyed offsite as part of a stormwater system, or is collected and contained for future use. Porous pavement can be asphalt, concrete or pavers, but differs from traditional pavement because it excludes fine material and instead provides pore spaces that store and pass water. Preliminary Treatment: The first stage of wastewater treatment that removes debris, sand, grit, and fine particles through use of bar screens, grit changes, and sedimentation tanks. Pretreatment: Any process used by local industries to reduce pollution load before wastewater is introduced into a main sewer system or delivered to a reclamation facility. Primary Treatment: The process following preliminary treatment at the reclamation facilities that allows solids to settle, thicken, and be removed. Primary effluent goes on to secondary treatment. The sludge is removed for processing by anaerobic digestion. Pumping Station: A relatively large sewage pumping installation designed not only to lift sewage to a higher elevation but also to convey it through force mains to gravity flow points located relatively long distances from the pumping station. Rain Barrel: A barrel that collects and stores rainwater from a rooftop to use later for lawn and garden watering. Rain Gardens: Gardens that are watered by collected or pooled stormwater runoff, slowly infiltrating it into the ground along root pathways. They are typically planted with wildflowers and deep-rooted native vegetation, which helps infiltrate rain channeled to them from roofs, driveways, yards and other impervious surfaces. Rainwater Harvesting: Rainwater harvesting encompasses the capture and storage of rainwater. It also includes the ability to reuse stored rainwater for appropriate uses, primarily gardening and lawn watering. Harvesting not only includes the collection systems, but also the rain barrels and cisterns used to store the water. Red Circle Rate: A pay rate that is above the maximum range assigned to the job grade. Employees are usually not eligible for additional pay increases until the range maximums exceed the individual pay rate. Relief Sewer: A sewer added to convey projected flow in excess of the flow that the existing sewer can effectively carry. Sanitary Sewers: Sewers that are designed to carry only domestic or commercial sewage. Secondary Treatment: Biologically removes dissolved solids and pollutants from the water by means of the activated sludge process. 189

203 Separated Sewer: A sewer system where sanitary sewers carry domestic and commercial sewerage and stormwater is carried in a separate sewer. Service Area: The area served by the District s wastewater treatment system. Sewage: Sewage refers to the wastewater flow from residential, commercial, and industrial establishments, which flows through the pipes to a reclamation facility. Sewerage: Sewerage refers to the system of sewers and physical facilities employed to transport, treat, and discharge sewage. Sinking Fund: A fund used solely for paying debt service on general obligation bonds or notes. General obligation bonds and notes include a pledge of tax levies to be deposited into a debt service sinking fund as provided in Section of Wisconsin Statutes. Any interest earned on monies placed in the sinking fund stays within the fund. Siphon: A tube through which a liquid is lifted over an elevation by the pressure of atmosphere and is then emptied at a lower level. Sludge: The accumulated settled solids deposited from sewage or industrial wastes, raw or treated, in tanks and basins, and containing more or less water forming a semi-liquid mass. Small Business Enterprise (SBE): Those businesses that adhere to guidelines of U.S. Small Business Administration that are afforded special opportunities, when feasible. Solids: The particulates contained in, or removed from wastewater (debris, sand and grit, sludge). Also, a synonym for sludge in cases where it can be reused in some beneficial way, i.e., Milorganite, Agri-Life. Solids Processing: After secondary treatment, the solids (sludge) are processed prior to being recycled. At Jones Island, the processing involves vacuum filtering (dewatering) and heat drying into Milorganite. At South Shore, the solids (sludge) are anaerobically digested into Agri-Life. Solids Utilization: Solids that can be recycled. At Jones Island, solids are converted into Milorganite ; at South Shore into Agri-Life. Southeastern Wisconsin Regional Planning Commission (SEWRPC): The advisory regional plan commission serving Milwaukee, Ozaukee, Racine, Kenosha, Washington, Walworth, and Waukesha counties. The commission is made up of 21 Commissioners, three from each of the seven counties. SEWRPC is not a state agency. It is responsible for producing the Area-wide Water Quality Management Plan. Southeastern Wisconsin Watershed Trust (SWWT): This is a voluntary, non-taxing partnership of independent government units, special purpose districts, other organizations, and individuals to achieve cooperation and collaboration within Greater Milwaukee Watersheds. Storm Sewer: A conduit that collects and transports rain and snow runoff back to the surface water. In a separate sewerage system, storm sewers are entirely separate from those carrying domestic and commercial wastewater. Stormwater Best Management Practices (BMPs): Any practices that reduce the adverse impacts of stormwater runoff. Stormwater Rule: A region-wide effort to manage future flooding in southeastern Wisconsin that will manage the volume and rate of stormwater runoff from new development and redevelopment so that peak flows in a watershed do not increase downstream flooding. Stormwater Trees: Stormwater trees can hold rainwater on their leaves and branches, infiltrate it into the ground, absorb it through root systems and evapotranspire it to the atmosphere. SWOT Analysis: A strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a plan. It involves specifying the project s objective and identifying the internal and external factors that will help or inhibit achieving that objective. Technical Advisory Team (TAT): A cooperative effort with District staff and members of the 28 communities served by the District. The group also includes representatives of the realtors and builders associations, the Wisconsin Department of Natural Resources, Milwaukee County, and the Southeastern Wisconsin Regional Planning Commission. Provides advisory level input for the development of the 2020 Facilities Plan and other MMSD projects, programs and initiatives. 190

204 Total Suspended Solids (TSS): Small particles of solids pollutants in sewage that contribute to turbidity and that resist separation by conventional wastewater treatment means Facilities Plan: A plan that identifies system capital improvements necessary for wastewater, conveyance, treatment, and watercourse management needs through User Charges: Fees levied upon residential, commercial, and industrial users of a wastewater treatment system based upon the volume and characteristics of the waste. User Class Codes: Certified Commercial; Non-Certified Industrial; Certified Industrial; Waste Strength Certified Industrial. These codes are used in compiling information for a pretreatment program for the industrial user. Waste Activated Sludge (WAS): Settled, activated sludge that is not returned to the process to seed incoming wastewater but is drawn off wasted. At Jones Island, WAS is heat dried to produce Milorganite. Waste Load Allocations: Distribution of total pollutant load permitted on a particular water body among the various dischargers to that water body. Watercourse System Maintenance Plan: System-wide plan that will monitor all watercourses within District jurisdiction to: (1) provide coordination on elements of maintenance; (2) establish a single agenda; and (3) promote safe and environmentally secure watercourses. Monitoring will be conducted on a cyclical basis, following a significant flow, and following receipt of a request. Determination will be made if action is required and, if so, who the responsible party is to undertake the action. Water Impact Index (WII): An interactive tool that is used to quantify the impact of both water quality and water quantity. Water Pollution Abatement Program (WPAP): A major program from 1977 to 1996 that repaired and expanded the entire metropolitan area wastewater conveyance and treatment system. Watershed: The contributing land area confined by topographic divides that drain into a lake or river. Also called catchment area, drainage area, or river basin, and expressed in acres or square miles. Wetlands: Areas that have soils that are inundated or saturated for part of the year or for the entire year, and are also known as bogs, marshes, and swamps. Under federal definition, the inundation or saturation of soil in a wetland is at a frequency and duration to sufficiently support a prevalence of vegetation typically adapted for life in saturated soils. Wetlands allow rainwater to pool and slowly infiltrate into the ground, but are also seeps that provide water at the ground surface. Wisconsin Pollution Discharge Elimination System (WPDES): Used by the DNR to regulate sewers and wastewater treatment plants. Woman s Business Enterprise: A business that is 51% owned, operated or controlled by women. Working Capital: The capital of an organization that is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities. 191

205 Pay Grades, Salaries, and Wages Pay Grades All staff positions are classified by a pay grade in one of the tables below. Pay grade assignments consider the job content and skill set needed for each job classification. The District strives to maintain a skilled and competitive workforce; thus, the District also considers the local market data and pay rates when determining pay grades. Prior to May 1, 2016, the District had one bargaining unit, AFSCME Local 366. The Wisconsin Employment Relations Commission (WERC) made permanent the rule requiring unions to annually recertify their status as the representative for general municipal employees. This required AFSCME Local 366 to file the appropriate fee with the WERC by February 1, 2016, to be eligible to continue representing the District s Local 366 employees. Local 366 members voted not to request a vote for recertification. Effective May 1, 2016, MMSD employees represented by ASFCME Local 366 became nonrepresented employees. The District is currently working with its compensation consultant to review and evaluate potential changes to the current pay ranges and salary administration policy. As recommended by the District s compensation consultant, Carlson Dettmann, the 2017 Operations & Maintenance Budget applies a structural adjustment as of 1/1/17 of 1.9 percent and a 2.75 percent flat in-lieu of merit, as applicable Pay Grades 8-21 Pay Grade Minimum Midpoint Maximum 21 $153, $191, $229, $139, $174, $209, $127, $158, $189, $117, $145, $172, $108, $133, $158, $99, $122, $145, $92, $112, $133, $85, $103, $122, $79, $95, $112, $73, $88, $103, $68, $81, $95, $63, $75, $88, $58, $70, $81, $54, $65, $75, Administrative & Support Staff Pay Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 7 $45, $48, $51, $54, $57, $60, $42, $45, $47, $50, $53, $56, $39, $42, $44, $47, $50, $52,

206 Pay Grade 2017 Pay Grades 4R 10R 1st Increment 2nd Increment 3rd Increment 4th Increment 5th Increment 6th Increment Facilities Technician I 4R $31, $32, $33, $33, $34, $35, Laboratory Helper 4R $31, $32, $33, $33, $34, $35, Receptionist 4R $31, $32, $33, $33, $34, $35, Facilities Technician II 5R $36, $37, $38, $39, $40, $41, Sample Boat Operator/Technician 6R $42, $43, $44, $45, $46, $47, Administrative Assistant 1 6R $42, $43, $44, $45, $46, $47, Account Specialist 7R $49, $50, $51, $52, $53, $54, CAD Technician 7R $49, $50, $51, $52, $53, $54, Customer Services Coordinator 7R $49, $50, $51, $52, $53, $54, GIS Technician 7R $49, $50, $51, $52, $53, $54, Payroll Specialist 7R $49, $50, $51, $52, $53, $54, Records Information Management Technician 7R $49, $50, $51, $52, $53, $54, Safety & Risk Mgmt Specialist 7R $49, $50, $51, $52, $53, $54, Survey Technician 7R $49, $50, $51, $52, $53, $54, Technical Services Coordinator 7R $49, $50, $51, $52, $53, $54, CAD Coordinator 8R $56, $57, $58, $59, $61, $62, Cost & Schedule Specialist 8R $56, $57, $58, $59, $61, $62, Desktop Technician 8R $56, $57, $58, $59, $61, $62, Engineering Aide 8R $56, $57, $58, $59, $61, $62, Laboratory Technician 8R $56, $57, $58, $59, $61, $62, Monitoring/Sampling Technician 8R $56, $57, $58, $59, $61, $62, GIS Data Coordinator 9R $63, $65, $66, $68, $69, $70, Lead Inspector 9R $63, $65, $66, $68, $69, $70, LIMS Database Analyst 9R $63, $65, $66, $68, $69, $70, Monitoring/Sampling Shop & Field Technician 2 9R $63, $65, $66, $68, $69, $70, Survey Crew Chief 9R $63, $65, $66, $68, $69, $70, System Monitoring Database Analyst 9R $63, $65, $66, $68, $69, $70, Accountant 10R $72, $74, $75, $77, $78, $80, Graphic Designer 10R $72, $74, $75, $77, $78, $80, Laboratory Chemist 10R $72, $74, $75, $77, $78, $80, Laboratory Microbiologist 10R $72, $74, $75, $77, $78, $80, Monitoring/Sampling Specialist 3 10R $72, $74, $75, $77, $78, $80, Quality Assurance Inspector 4 10R $72, $74, $75, $77, $78, $80, Senior GIS Data Coordinator 10R $72, $74, $75, $77, $78, $80, System Monitoring Database Analyst 5 10R $72, $74, $75, $77, $78, $80, Water Resources Specialist 10R $72, $74, $75, $77, $78, $80, New title and pay grade effective 10/10/16 per Job Content Evaluation. 2. New pay grade effective 11/14/16 per Job Content Evaluation. 3. New pay grade effective 10/10/16 per Job Content Evaluation. 4. New pay grade effective 11/14/16 per Job Content Evaluation. 5. New pay grade effective 11/14/16 per Job Content Evaluation. 193

207 194

208 Budget Policies Annual Budget Fiscal Year: The fiscal year of the Milwaukee Metropolitan Sewerage District begins on January 1 of each year and ends on December 31 of that year. The fiscal year is both the accounting and the budget year. Enterprise Fund: The District prepares its financial statements on an enterprise fund basis. Generally Accepted Accounting Principles (GA AP) require state and local governments to use the enterprise fund to account for businesstype activities activities similar to those found in the private sector. Business-type activities include services primarily funded through user charges. The National Council of General Accounting Standards (NCGAS) defines the purpose of enterprise funds as: to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Within the Enterprise Fund, District expenditures are funded within two adopted budgets: an Operations & Maintenance Budget and a Capital Budget. The O&M Budget and the Capital Budget are funded differently. Balanced Budget: It is required that the Milwaukee Metropolitan Sewerage District annually adopt a balanced budget in which District revenues and other sources of funds equal District expenditures and other uses in both the operating and capital budgets for the fiscal year. The District achieves this for the Operations & Maintenance Budget by offsetting total division expenditures and all other operating expenditures with funds from user charge billings, the User Charge Stabilization Fund, budget surpluses applied, and any other operating income. The District s Capital Budget achieves this by offsetting total project expenditures and net debt service with tax levy income, non-member billings, use of available funds on hand, and all other capital income. Budget Adoption The Executive Director, with approval of the Policy, Finance, and Personnel Committee, shall establish a calendar for public hearings and the Commission s review of the proposed budget. A summary of the proposed budget is made available for public inspection at least 15 days prior to the public hearing. (Commission Policy ) Operations & Maintenance Budget: The Executive Director shall present annually a recommended detailed budget of operating and maintenance expenditures and estimated revenue for the ensuing calendar year. These recommendations will be presented to the Policy, Finance, and Personnel Committee which will review and make recommendations to the Commission for adoption. Commission action is required to authorize the adoption of the annual Operations & Maintenance Budget (majority vote) (Commission Policy ). Capital Budget: The Executive Director shall annually submit to the Commission the following: A. Total Project Costs A list of all projects new to the current budget year with the estimated costs to complete each project, as well as a list of all existing projects that have changes in previously granted total project cost. Commission action on the Total Project Costs is the policy setting mechanism, not an authorization to expend funds. B. Capital Budget The annual financing plan for the current year s anticipated capital account expenditures. Commission action on the Capital Budget sets the level of taxing and other sources of funds for the current year s capital expenditures and authorizes staff to expend funds for the current year. C. Long-Range Financing Plan The six-year plan identifies anticipated sources of funds for anticipated capital expenditures in each year of the six-year plan. It will also include a summary of actual revenues and expenditures for the preceding calendar year and an estimate of revenues and expenditures based on the first six months (or most current actual data) for the current calendar year. Commission action on the Capital Financing Plan approves the financial plan for outyears capital financing and capital expenditures for the planning purposes only; it does not set the level of taxing and other sources of funds or capital expenditures in subsequent years. (Commission Policy ) Commission action is required to authorize the adoption of the annual Capital Budget (majority vote). (Commission Policy ) 195

209 The Commission has the authority to amend both the Executive Director s Operations & Maintenance and Capital Budgets at adoption. (Commission Policy ) Budget Amendments New Projects: Commission action is required to authorize the addition of a new project not authorized in the adopted annual Capital Budget. The resolution presented to the Commission for approval must describe the project, identify the estimated amounts to be spent in the current year and over the life of the project, and identify the amounts to be transferred from other project(s) or from working capital to fund the new project. If funds are transferred between projects within the same project group (capital account) without increasing total authorized spending in that account, then a simple majority vote is required. If funds are transferred between project groups (capital accounts), or from working capital, then a two-thirds vote is required in accordance with state law. (Commission Policy ) Carryovers: Carryover of unexpended funds authorized in the Operations & Maintenance Budget to the next fiscal year is permit- ted with the approval of the Commission as an amendment to the Budget. The Executive Director shall present annually in March a list of funds budgeted in the previous fiscal year recommended for a carryover to the next fiscal year. The list shall include the following information: cost center, account, dollar amount recommended for carryover, purpose of expenditure, summary explanation of reason(s) funds remain unexpended, and summary of continuing need for goods or services to be procured. Operations & Maintenance funds may not be carried over more than one fiscal year. (Commission Policy ) Budget Transfers The Office of Management & Budget will maintain both the Operations & Maintenance and Capital Budgets by monitoring expenditure levels and evaluating requests for all budget transfers to ensure compliance with Commission policies. Operations & Maintenance Budget: The Executive Director shall ensure that the annual expenditures of each of the operating divisions do not exceed the total funds budgeted for that division. When it is apparent that the total division budget for any of the divisions will be exceeded, a request for a fund transfer shall be brought to the Commission prior to an overrun. The total division budget for a division includes all monies budgeted for all cost centers within that division. Budget overruns in one division may not be used to offset overruns in another division without approval of the Commission. (Commission Policy ) Capital Budget: Commission action (two-thirds vote) is required to authorize the approval of amendments increasing the total authorized annual spending in the Capital Budget. (Commission Policy ) Within the limits of authority delegated by this or other Commission policy or action, the Executive Director may, without further Commission approval during the budget year, execute contract amendments and adjust project allocations within a single capital account to fund such amendments and to respond to actual project cash flows, provided that total spending in the affected capital account, as approved by the Commission, is not exceeded. (Commission Policy ). Budget Reserves Operating Reserves: Operating reserves are funds that have been segregated to meet legal requirements and/or have been segregated at the discretion of the Commission and are available only to the Operations & Maintenance Budget. (Commission Policy ) Equipment Replacement Fund: In accordance with the Wisconsin Administrative Code section NR (18), the District is required to maintain an Equipment Replacement Fund (ERF) that will be funded specifically from user charges. User charges collected for the ERF are required to be maintained in a separate and distinct fund. The ERF will be used to fund replacement equipment and maintained at a level no less than five percent of the historical cost of all equipment with a cost greater than $25,000 and a service life greater than 10 years and up to 20 years. User Charge Stabilization Fund: The User Charge Stabilization Fund (UCSF) was created after 1998, by the Commission to reserve some of the savings realized from the operation and maintenance contract with the first operating contract with the former provider United Water Services, for distribution to customers of the District in future years. The UCSF is maintained as a separate and distinct fund, and, within the fund, the balance is classified by the District s four user charge 196

210 billing parameters. Interest earned on the savings is to remain in the fund. In accordance with the District s objective of maintaining stable user charge billings, the UCSF will be maintained at a level no less than 2.5 percent of the current year s revenues (refer to policy ). Contributions to and withdrawals from the fund may be made by Commission action through the annual budget process. Capital Reserves: Capital Reserves are funds that have been segregated to meet legal requirements and/or have been segregated at the discretion of the Commission and are available only to the Capital Budget. (Commission Policy ) Debt Service Funds: In accordance with section 67.11(1) of the Wisconsin Statutes, the District is required to establish and maintain a debt service fund for the payment of principal and interest on bonds and notes used in financing its capital improvement program. The District maintains a separate account for each of its own outstanding debt issues and one account for debt obtained through the State of Wisconsin Clean Water Fund Loan Program. Annually, the District will levy an irrepealably tax sufficient to pay the principal and interest on the debt as it comes due in the following year. Taxes collected from this levy are placed into the debt service fund account and used to pay the annual debt service. Earnings from the investments in the debt service fund accounts remain until used as part of the debt service fund accounts. Money shall not be withdrawn from a debt service fund and used for any purpose other than the purpose for which the fund was created until that purpose has been accomplished. After all the outstanding debt has been paid and retired, any balance in any debt service fund account may be transferred out and used as directed by the Commission. (Commission Policy ) Working Capital The District needs unreserved cash balances as working capital to pay routine and non-routine operating and capital expenses. Annually as part of the determination of user charge billings and capital funding, the District will assess and budget as necessary any adjustments to the specific working capital levels, considering fund balances, investments, and cash flow requirements. Operating: The District shall attempt to maintain a working capital balance between 60 to 90 days of expenditures with a target of 75 days. (Commission Policy ) Capital: The District shall attempt to maintain a working capital balance between 90 to 150 days of expenditures with a target of at least 90 days. (Commission Policy ) Contingency Accounts Contingency accounts in both the Operations & Maintenance and Capital Budgets are used to ensure that adequate funds are available for unforeseen circumstances. Operating: The District shall annually fund an Unallocated Reserve. Recommended changes regarding contingency accounts allow funding at a level within a range between 2.0 percent and 3.5 percent of net division expenditures. (Commission Policy ) Capital: To ensure that there are adequate funds for cost and schedule changes, unforeseen projects, and other unexpected circumstances, the Capital Budget shall fund an Allowance for Cost and Schedule Changes maintained within a range between 2.0 percent and 5.0 percent of the current year s total budgeted project expenditures. One-Time Revenues One-time revenues are those funds that cannot be relied upon to fund the continuing operations or capital expenditures of the District. They may be used to fund non-continuing expenses, such as litigation, the study of new cost-saving initiatives, to fund reserves, or the achievement of targeted working capital balance. (Commission Policy ) Debt Limitations: Per Commission Policy , the District intends to keep outstanding general obligation debt within 50 percent (2.5 percent) of the limit prescribed by law (5 percent) and at levels consistent with its credit objectives and longrange financing plan goal of 25 percent cash financing. Annual debt service requirements anticipated in the long-range plan are funded from the tax levy and other revenues, including available funds on hand. 197

211 Types: The District has authority under Section of the Wisconsin Statutes to finance capital improvements through the issuance of debt instruments, including: - General obligation bonds and promissory notes; - Bond anticipation notes; and - Revenue obligation bonds and notes Even though the District also has authority to issue revenue obligations, the District shall issue general obligation bonds and notes to finance the capital improvements program, unless staff can demonstrate to the Commission that other, statutorily authorized debt instruments provide the District with a financial advantage. Maturity of Debt: Staff shall utilize the following considerations in structuring debt maturities: - long-range financing objectives; - the useful life of the project assets to be financed; and - a fair allocation of project costs to current and future customers benefiting from the project. Fixed and Variable Rate Debt: The District intends to issue debt on a fixed-rate basis. Staff, however, may propose that the District issue securities that pay a variable rate of interest determined in accordance with a pre-determined formula or that results from a periodic remarketing of the securities, consistent with State law and covenants of pre-existing bonds, and depending on market conditions. The District will have no more than 15 percent of its outstanding general obligation bonds in variable-rate form. Credit Objectives: The District will seek to maintain or improve its current credit rating with Moody s Investors Service (Aaa), Standard & Poor s (AA+), and Fitch Investors Service (AAA). The District will strive to maintain good relations with the rating agencies, routinely communicating with the rating agencies and keeping them informed of significant developments that could affect the District s credit rating. In order to achieve its credit rating objective, the District recognizes the need to integrate debt policy with its six-year capital improvements program and long-range financing plan. The District will also consider the debt marketing plans of other governmental units located within the District s boundary as provided in Section (7) of the Wisconsin Statutes. The following objectives for the District s capital improvement program and financing plan will be used to maintain debt service requirements at affordable levels and enhance the credit quality of the District: - At least 25 percent of project expenditures shall be cash financed over the six-year financing plan. - Changes to the annual tax levy throughout the long-range plan shall be limited to amounts that are necessary, affordable, and allow for tax levy stability into the future. - Responsible drawdown of accumulated reserve funds in a manner that does not cause destabilizing annual fluctuations in the tax levy. - Flexibility to fund future expenditures necessary to fulfill the District s responsibilities. Approval of Sale: Commission approval of the debt sale shall comply with the affirmative vote requirements of Section (2) of the Wisconsin Statutes and Commission Policy , Capital Budget. Selection of Outside Financial Consultants: The Controller shall be responsible for establishing a solicitation and selection process for securing outside professional services necessary to develop and implement the District s debt program. Selection of outside financial advisors, bond counsel, and underwriters and other service providers will comply with District procurement policies and state law. Section (2) of the Wisconsin Statutes requires the Commission to attempt to ensure that 5 percent of the total funds expended for financial advisory services and investment analysis shall be expended for the services of minority financial advisors. Refundings: Periodic reviews of outstanding debt will be undertaken to determine refunding opportunities. Refunding will be considered (within federal tax law constraints) if and when there is a net economic benefit of the refunding or the refunding is essential in order to update covenants essential to operations and management. In general, advance refundings for economic savings will be considered when net present value (NPV) savings of at least 2 percent of the refunded debt can be achieved. Current refundings that produce NPV savings of less than 2 percent will be considered on a case-by-case basis. Advance refundings with less than 2 percent savings may be considered when the Commission determines that there is a compelling public policy or long-range financing policy objective. 198

212 199

213 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Water Reclamation Facilities $159,675,072 $24,357,884 $44,936,635 Jones Island $122,566,596 $15,542,613 $24,007,069 Primary Treatment $27,755,122 $390,217 $501,909 J JI Preliminary Facility Upgrade $22,562,550 $9,265 $0 J Upgrade Primary Clarifier Mechanisms $4,707,750 $322,333 $301,929 J Preliminary Facility Electrical Upgrade $0 $0 $0 J JI Primary Clarifier Channel Improvements $423,972 $5,625 $34,847 J Primary Effluent Division Chamber Sampler $60,850 $52,994 $0 J JI Force Main Assessment $0 $0 $165,133 Secondary Treatment $21,500,346 $1,200,787 $572,286 J PACs Electrical Switch Gear $1,499,792 $21,677 $0 J Secondary Clarifier Drive Replacement $12,509,759 $22,946 $0 J JI Aeration System Enhancements $7,415,970 $123,097 $0 J Upgrade Secondary Clarifier Drain Valves $0 $0 $0 J Aeration System Diffusers Replacement $0 $137,468 $24,588 J East Plant RAS Header and Pump Replacement $74,825 $895,599 $547,698 Advanced Treatment $2,548,684 $356,402 $0 J JI Effluent Pump Replacement $2,548,684 $356,402 $0 200

214 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $38,746,887 $29,179,015 $29,523,617 $58,171,744 $39,319,529 $44,280,223 $468,190,606 Total Project Number $18,880,800 $13,213,052 $8,234,399 $16,032,345 $8,368,785 $30,569,226 $257,414,885 $589,564 $336,446 $632,407 $1,791,420 $1,373,929 $1,951,644 $35,322,658 $0 $22,571,815 J $882 $0 $0 $0 $0 $0 $5,332,894 J $17,397 $218,760 $632,407 $1,778,921 $1,253,858 $2,628 $3,903,971 J $102,432 $117,686 $0 $12,499 $120,071 $1,949,016 $2,766,148 J $0 $113,844 J $468,853 $0 $0 $0 $0 $0 $633,986 J $4,000 $0 $72,140 $260,051 $1,738,691 $2,096,294 $27,444,595 $0 $1,521,469 J $0 $12,532,705 J $0 $7,539,067 J $579,782 $579,782 J $0 $0 $72,140 $260,051 $1,738,691 $1,516,512 $3,749,450 J $4,000 $0 $0 $0 $0 $0 $1,522,122 J $0 $2,905,086 $0 $2,905,086 J

215 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Solids Processing $9,027,204 $5,008,825 $10,481,149 J D&D VFD's Replacement $1,623,148 $855 $0 J Milorganite Dryer Improvements $2,858,258 $65,782 $0 J E/B Tank Mixing Compressor Replacement $454,951 $137,634 $0 J Biosolids/Energy Instrumentation Upgrade $698,505 $7,968 $0 J Ferric Oxide System Improvements $0 $0 $0 J D&D Drainage Piping & Quench Chambers Rehabilitation $223,580 $780,356 $673,032 J Redundant Greens Grade Train $0 $0 $0 J Main Recycle Screw Conveyor #1 Replacement $1,257,189 $28,220 $0 J Wet Weather Gravity Belt Thickener $239 $43,959 $244,132 J D&D Dryers Guillotine Gate Replacement $0 $0 $0 J D&D Building Explosion Relief Panel Replacement $54,452 $345,296 $2,400,111 J D&D Freight & Passenger Elevator Rehab $41,673 $257,865 $1,262,325 J Milorganite Facilities Improvement - Phase III $224,436 $1,182,848 $4,107,196 J Replace Wet Recycle Screws 1 & 2 $1,578,733 $303,957 $0 J D&D Energy Conservation Efforts $4,478 $24,039 $149,944 J Install Winches at Chaff Load out Bay $3,331 $161,304 $96,169 J Dryer Feed and Discharge Screw Replacement $0 $173,333 $295,803 J MRAB Feed Screw Replacements $4,231 $121,388 $196,165 J Milorganite Facilities Improvements Phase IV $0 $188,442 $356,567 J Dryer Exhaust Evaluation $0 $0 $15,442 J Milorganite Product Cooler Replacement $0 $1,185,579 $473,511 J Sludge Cake Transport $0 $0 $186,579 J D&D PLC 5 Upgrades $0 $0 $24,

216 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $6,401,719 $6,478,983 $1,639,659 $7,046,664 $1,893,326 $2,133,287 $50,110,816 Total Project Number $0 $1,624,003 J $0 $2,924,040 J $0 $592,585 J $0 $706,473 J $0 $0 $0 $0 $82,085 $1,572,777 $1,654,862 J $21,035 $0 $0 $0 $0 $0 $1,698,003 J $0 $0 $0 $19,632 $85,149 $266,980 $371,761 J $0 $1,285,409 J $678,437 $246,761 $0 $0 $0 $0 $1,213,528 J $0 $0 $99,788 $402,785 $1,726,092 $293,530 $2,522,195 J $147,413 $0 $0 $0 $0 $0 $2,947,272 J $1,048,568 $0 $0 $0 $0 $0 $2,610,431 J $47,095 $0 $0 $0 $0 $0 $5,561,575 J $0 $1,882,690 J $901,747 $322,933 $0 $0 $0 $0 $1,403,141 J $0 $260,804 J $1,297,147 $1,252,233 $293,187 $0 $0 $0 $3,311,703 J $456,789 $3,855 $0 $0 $0 $0 $782,428 J $1,072,002 $1,446,731 $15,000 $0 $0 $0 $3,078,742 J $159,298 $40,126 $0 $0 $0 $0 $214,866 J $0 $1,659,090 J $355,996 $2,907,873 $972,570 $44,918 $0 $0 $4,467,936 J $216,192 $258,471 $259,114 $6,579,329 $0 $0 $7,337,279 J

217 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget General Jones Island $61,735,240 $8,586,382 $12,451,725 J Sitework Phase III, West Package (J009) $338,977 $0 $0 J Site Settlement $1,496,003 $243,936 $2,000 J JI Site Lighting Upgrade $18,516 $57,308 $12,078 J JI Geotechnical Structural Analysis $48,811 $529,690 $0 J Head Tank Wall Extension $885,860 $535,671 $661,555 J Gas Turbine Replacement $43,701,678 $166,073 $0 J W3 & W4 Water Strainer Improvements $586,410 $5,516 $0 J HVAC for Computer Room in Ops Building $57,718 $76,745 $261,102 J Implementation of Safety Recommendations $296,879 $14,776 $0 J JI Field Operations Building Rehab (#278) $672,760 $1,687 $0 J JI I&C Improvements $878,155 $596,863 $78,140 J JI Building Roof Replacement $5,686,825 $196,174 $0 J Building Piping Inventory & Rehabilitation $13,570 $88,179 $48,171 J ISS Crane Rehabilitation $132,170 $185,561 $2,130,650 J Alternative Power Feed to Operations Building $75,496 $125,867 $0 J Turbine Extended Service Agreement $2,802,731 $1,326,065 $1,404,554 J VFD's for RAS WP, Service Water & WAS Receiving $1,720,530 $70,962 $0 J JI Building Roof Replacement - Phase II $194,407 $981,596 $1,837,366 J Gas Turbine Replacement - Phase II $0 $0 $0 J Head Tank System Improvements $0 $0 $0 J Dryer Burner Conversion $266,516 $637,831 $2,395,564 J Re-Commission GE Turbine #2 $0 $42,347 $255,767 J Tunnel & Gallery System Hazardous Rating Improvements $0 $0 $4,369 J Gaseous Fire Suppression Systems $77,408 $143,500 $383,108 J Rolling Stock & Other Equipment $1,648,031 $2,371,362 $1,986,901 J JI Power Supply Optimization $135,789 $171,231 $55,994 J JI & SS Network Optimizations $0 $0 $122,117 J JI Building Roof Replacement - Phase 3 $0 $0 $0 J D&D Lighting Upgrade $0 $12,920 $158,254 J Harbor Siphons Area Settlement Mitigation $0 $4,522 $54,035 J Operator Contribution to CIP $0 $0 $600,

218 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $11,885,517 $6,397,623 $5,890,193 $6,934,210 $3,362,839 $24,388,001 $141,631,730 Total Project Number $0 $338,977 J $2,008 $744 $0 $0 $0 $0 $1,744,691 J $127,148 $384,203 $366,989 $0 $0 $0 $966,242 J $0 $578,501 J $11,671 $0 $0 $0 $0 $0 $2,094,757 J $0 $43,867,751 J $0 $591,926 J $0 $395,565 J $0 $311,655 J $0 $674,447 J $219,392 $0 $0 $0 $0 $0 $1,772,550 J $0 $5,882,999 J $166,781 $628,492 $0 $0 $0 $0 $945,193 J $1,209,404 $147 $0 $0 $0 $0 $3,657,932 J $0 $201,363 J $1,487,752 $1,575,942 $1,669,424 $1,768,514 $1,875,504 $1,564,345 $15,474,831 J $0 $1,791,492 J $4,553 $0 $0 $0 $0 $0 $3,017,922 J $18,110,561 $18,110,561 J $30,396 $168,363 $200,839 $297,499 $251,649 $2,594,674 $3,543,420 J $4,429,530 $1,071,164 $0 $0 $0 $0 $8,800,605 J $20,216 $0 $0 $0 $0 $0 $318,330 J $293,623 $298 $0 $0 $0 $0 $298,290 J $335,513 $5,536 $0 $0 $0 $0 $945,065 J $1,055,836 $1,300,000 $1,300,000 $1,180,812 $1,180,812 $2,118,421 $14,142,175 J $60,730 $308,285 $69,843 $0 $0 $0 $801,872 J $1,144,536 $0 $0 $0 $0 $0 $1,266,653 J $71,242 $273,499 $2,232,886 $3,637,385 $4,874 $0 $6,219,886 J $367,666 $623,527 $0 $0 $0 $0 $1,162,367 J $247,520 $57,423 $50,212 $50,000 $50,000 $0 $513,712 J $600,000 $0 $0 $0 $0 $0 $1,200,000 J

219 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget South Shore $24,682,927 $7,118,289 $10,939,047 Primary Treatment $235,997 $482,530 $6,390 S Influent Bar Screen Improvements $5,219 $0 $0 S Scum System Improvements $1,892 $144,693 $0 S Influent Channel Sampler $224,754 $325,556 $6,390 S SS Influent Odor Control System $4,132 $12,281 $0 Secondary Treatment $15,556,884 $972,652 $1,201,208 S Secondary Clarifier Upgrade $11,087,292 $113,392 $0 S SS Capacity Improvements $1,494,800 $284,277 $512,648 S SS Aeration Control System Upgrade $1,694,993 $22,176 $0 S RAS VFD Replacements $1,116,598 $44,187 $8,069 S Biological Phosphorous Removal $106,839 $204,966 $208,967 S Aeration Galleries RAS Header Piping Rehab $55,577 $250,686 $426,676 S Secondary Clarifier Idling Control $785 $52,968 $44,848 Advanced Treatment $0 $173,966 $505,589 S SS Chloramination $0 $0 $0 S Post-Secondary Capacity Improvements $0 $173,966 $505,589 Solids Processing $5,289,114 $2,048,915 $2,808,147 S Thickening Process Capacity Enhancements $106,995 $184,858 $0 S Plate and Frame Press Upgrade $292 $0 $0 S Digester Mixing and Piping Replacement $4,982,997 $50,628 $927 S Aeration Basin Concrete Rehab - Phase II $69,257 $670,007 $1,246,705 S Digester Gallery Piping Rehab $42,797 $128,524 $2,640 S HW Boiler Control Systems Improvements $26,912 $329,845 $241,267 S WAS Digesting Study $30,417 $57,959 $0 S Remove Grass Cover at Digesters $0 $16,541 $0 S Digester Mixing II $0 $0 $0 S Aeration Basin Concrete Rehab - Phase III $1,845 $9,337 $0 S Digester Gas Treatment System $27,602 $601,216 $1,316,

220 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $13,634,989 $11,979,405 $11,966,881 $15,178,926 $12,638,159 $8,438,223 $116,576,846 Total Project Number $0 $11,314 $167,326 $175,227 $748,778 $2,361,685 $4,189,247 $0 $11,314 $167,326 $175,227 $674,361 $773,418 $1,806,865 S $0 $0 $0 $0 $74,417 $1,588,267 $1,809,269 S $0 $556,700 S $0 $16,413 S $2,472,897 $5,458,174 $2,003,281 $1,263,746 $25,895 $1,075 $28,955,812 $0 $11,200,684 S $224,937 $1,318,150 $1,323,402 $1,263,746 $25,895 $1,075 $6,448,930 S $0 $1,717,169 S $0 $1,168,854 S $782,228 $2,775,984 $671,231 $0 $0 $0 $4,750,215 S $1,363,863 $995,079 $5,606 $0 $0 $0 $3,097,487 S $101,869 $368,961 $3,042 $0 $0 $0 $572,473 S $356,891 $1,260,551 $1,274,192 $1,359,382 $1,544,862 $30,515 $6,505,948 $0 $0 $9,100 $108,382 $529,518 $11,252 $658,252 S $356,891 $1,260,551 $1,265,092 $1,251,000 $1,015,344 $19,263 $5,847,696 S $2,862,713 $2,245,352 $5,342,739 $8,425,920 $5,068,661 $388,938 $34,480,499 $0 $0 $149,429 $359,271 $1,766,792 $266,927 $2,834,272 S $205,561 $661,114 $1,563,142 $1,978,760 $1,663,083 $3,920 $6,075,872 S $0 $5,034,552 S $625,046 $751 $0 $0 $0 $0 $2,611,766 S $0 $396,915 $626,940 $0 $0 $0 $1,197,816 S $0 $598,024 S $0 $88,376 S $0 $0 $0 $0 $153,211 $118,091 $287,843 S $0 $313,291 $1,875,918 $2,079,407 $4,549 $0 $4,273,165 S $2,597 $173,010 $1,127,310 $4,008,482 $1,481,026 $0 $6,803,607 S $2,029,509 $700,271 $0 $0 $0 $0 $4,675,206 S

221 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget General South Shore $3,600,932 $3,440,226 $6,417,713 S Roadways and Walkways $95,565 $0 $0 S SS Site Lighting Upgrade $76,084 $10,122 $83,873 S SS Geotechnical Structural Analysis $0 $34,194 $158,728 S Replace W3 Flushing Water Pumps $76,440 $120,098 $247,929 S Building 326 Site Improvements $47,596 $514,740 $480,943 S SS Drainage Channel Improvements $324,566 $23,050 $0 S SS Building Roof Replacement $1,185,977 $240,955 $0 S SS Building Roof Replacement - Phase II $184,829 $275,210 $367,283 S Tunnels Concrete Rehabilitation $33,942 $182,419 $581,756 S Central Control Building H2S Removal System $36,053 $204,215 $500,019 S Med Voltage Switchgear Replacement $84,401 $391,997 $2,256,734 S Roadways and Walkways - Phase II $0 $0 $0 S SS Rolling Stock & Other Equipment $1,435,929 $1,138,049 $285,441 S Upgrade Medium & Low Voltage MCC's $19,550 $292,755 $1,112,915 S Building Roof Replacement Phase III $0 $0 $0 S Gas Compressor 5 DG Enhancements $0 $12,422 $42,092 S Operator Contribution to CIP $0 $0 $300,000 Interplant Pipeline $12,425,549 $1,696,982 $9,980,519 Interplant Pipeline $2,353,845 $1,050,702 $2,407,077 P Interplant Pipeline Improvements at South Shore $2,332,584 $354,069 $92,284 P Interplant Pipeline Improvements - Phase II $21,261 $696,633 $2,314,793 Energy Pipeline $10,071,704 $646,280 $7,573,442 P West Shore Pipeline $10,071,704 $105,943 $0 P LFG Pipeline Pigging Station $0 $59,291 $188,221 P Landfill Gas System - Metro Landfill $0 $481,046 $7,385,221 General Reclamation Facility Projects $0 $0 $10,000 Allowance for Plant Rehabilitation $0 $0 $10,000 J Allowance for Plant Rehabilitation $0 $0 $0 J Allowance for D&D Rehabilitation $0 $0 $0 J NFPA 820 Compliance Allowance $0 $0 $10,000 S Allowance for Plant Rehabilitation $0 $0 $0 208

222 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $7,942,488 $3,004,014 $3,179,343 $3,954,651 $5,249,963 $5,656,010 $42,445,340 Total Project Number $0 $95,565 S $88,132 $435,084 $26,087 $0 $0 $0 $719,382 S $159,363 $159,363 $32,972 $0 $0 $0 $544,620 S $543,392 $5,646 $0 $0 $0 $0 $993,505 S $308,501 $0 $0 $0 $0 $0 $1,351,780 S $0 $347,616 S $0 $1,426,932 S $2,963 $0 $0 $0 $0 $0 $830,285 S $967,909 $17,915 $0 $0 $0 $0 $1,783,941 S $288,394 $7,455 $0 $0 $0 $0 $1,036,136 S $1,798,916 $3,018 $0 $0 $0 $0 $4,535,066 S $0 $20,141 $726,630 $764,001 $4,128,254 $3,165,210 $8,804,236 S $1,539,287 $1,011,668 $1,141,067 $1,099,632 $1,117,168 $2,490,800 $11,259,041 S $1,847,972 $1,115,284 $1,490 $0 $0 $0 $4,389,966 S $97,659 $228,440 $1,251,097 $2,091,018 $4,541 $0 $3,672,755 S $0 $54,514 S $300,000 $0 $0 $0 $0 $0 $600,000 S $5,612,767 $3,067,522 $353,482 $692,396 $321,389 $7,339 $34,157,945 $5,099,819 $3,053,278 $253,481 $334,394 $104,712 $2,639 $14,659,947 $233 $0 $0 $0 $0 $0 $2,779,170 P $5,099,586 $3,053,278 $253,481 $334,394 $104,712 $2,639 $11,880,777 P $512,948 $14,244 $100,001 $358,002 $216,677 $4,700 $19,497,998 $0 $10,177,647 P $0 $13,498 $100,001 $358,002 $216,677 $4,700 $940,390 P $512,948 $746 $0 $0 $0 $0 $8,379,961 P $10,000 $10,000 $7,600,000 $22,700,000 $15,000,000 $0 $45,330,000 $10,000 $10,000 $7,600,000 $22,700,000 $15,000,000 $0 $45,330,000 $0 $0 $0 $7,500,000 $7,500,000 $0 $15,000,000 J $0 $0 $7,500,000 $7,500,000 $0 $0 $15,000,000 J $10,000 $10,000 $100,000 $200,000 $0 $0 $330,000 J $0 $0 $0 $7,500,000 $7,500,000 $0 $15,000,000 S

223 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget General Reclamation Facility Projects $0 $0 $0 Inflation $0 $0 $0 J Inflation $0 $0 $0 P P Inflation $0 $0 $0 S Inflation $0 $0 $0 210

224 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $608,331 $909,036 $1,368,855 $3,568,077 $2,991,196 $5,265,435 $14,710,930 Total Project Number $608,331 $909,036 $1,368,855 $3,568,077 $2,991,196 $5,265,435 $14,710,930 $301,319 $425,194 $769,852 $2,040,878 $1,306,601 $4,125,622 $8,969,466 J $89,527 $98,638 $17,186 $45,245 $26,462 $990 $278,048 P $217,486 $385,204 $581,817 $1,481,954 $1,658,132 $1,138,822 $5,463,416 S

225 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Conveyance $94,144,471 $11,833,214 $10,742,978 Metropolitan Interceptor Sewer $76,051,108 $5,172,759 $7,090,925 Subsystem 2- Southwest Branch $1,034,321 $1,506,543 $587,642 C Force Main Rehabilitations $1,013,885 $1,504,161 $297,725 C Franklin/Muskego Gravity MIS Chemical Addition $20,436 $0 $0 C Force Main Franklin Muskego Rehabilitation Project $0 $0 $64,393 C Force Main Greenfield Park Rehabilitation Project $0 $2,382 $225,524 Subsystem 3 - Northwest Branch $9,518,991 $824,075 $21,288 C Underwood Creek Force Main Rehab $9,092,659 $17,731 $0 C th St. MIS Improvement $267,346 $777,885 $15,203 C Wisconsin Ave MIS Rehab - Phase II $0 $0 $0 C ZIC MIS Lining & Manhole Reconfiguration $158,986 $28,459 $6,085 Subsystem 4 - Northeast Branch $3,709,176 $154,198 $1,034,074 C Honey Creek MIS Rehab $78,085 $0 $0 C Roosevelt Drive MIS Rehab $0 $0 $0 C State Street & Menomonee River MIS Rehab $0 $0 $0 C Martha Washington/Highlands MIS Rehab $147,912 $0 $0 C Vliet Street/100 Street MIS Rehabilitation $3,483,179 $17,366 $0 C Mill/Green Bay/Green Tree MIS Relief $0 $136,832 $1,034,074 Subsystem 5 - North Side High Relief $2,449,236 $235,201 $521,141 C Basin H MIS PCB Remediation and Rehabilitation $2,449,236 $235,201 $511,755 C Estabrook Park MIS Rehab $0 $0 $0 C Port Rd Pump Stations Grinders $0 $0 $0 C Edgewood MIS/NSC Extension $0 $0 $9,386 Subsystem 6 - South Side High Relief $1,488,079 $295,818 $102,230 C South 6th Street & Warnimont MIS Rehab $0 $0 $0 C Oklahoma Ave MIS Rehab $0 $0 $0 C Burnham St. 52nd to Electric Ave MIS Rehab $1,275,281 $3,715 $0 C S. 27th Howard to Euclid MIS Rehab $212,798 $292,103 $102,

226 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast Total Project Number $20,009,231 $14,028,536 $9,580,814 $19,110,346 $38,425,137 $124,539,328 $342,414,057 $18,075,541 $10,277,243 $8,286,924 $10,371,635 $25,501,981 $109,730,150 $270,558,266 $4,174,015 $4,989 $48,777 $285,220 $500,270 $4,438 $8,146,215 $10,004 $0 $0 $0 $0 $0 $2,825,775 C $0 $0 $48,777 $285,220 $500,270 $4,438 $859,141 C $938,615 $2,526 $0 $0 $0 $0 $1,005,534 C $3,225,396 $2,463 $0 $0 $0 $0 $3,455,765 C $7,097,922 $2,202,391 $1,647,689 $681,583 $0 $7,373,385 $29,367,324 $0 $9,110,390 C $7,097,873 $1,849,773 $0 $0 $0 $7,373,385 $17,381,465 C $0 $341,848 $1,028,631 $391,695 $0 $0 $1,762,174 C $49 $10,770 $619,058 $289,888 $0 $0 $1,113,295 C $705,374 $2,480,048 $2,606,851 $6,033,481 $12,902,682 $61,451,843 $91,077,727 $0 $184,668 $404,445 $2,313,561 $455 $0 $2,981,214 C $0 $0 $0 $155,789 $512,046 $5,888,376 $6,556,211 C $0 $0 $0 $427,115 $1,185,334 $15,339,523 $16,951,972 C $0 $0 $0 $126,622 $1,023,726 $3,260,879 $4,559,139 C $0 $3,500,545 C $705,374 $2,295,380 $2,202,406 $3,010,394 $10,181,121 $36,963,065 $56,528,646 C $1,587,722 $2,024,021 $597,371 $1,659,631 $5,355,611 $10,767,884 $25,197,818 $1,567,756 $2,004,373 $299,049 $241,635 $310,471 $603,522 $8,222,998 C $0 $0 $0 $166,459 $537,131 $9,054,875 $9,758,465 C $0 $0 $0 $91,704 $799,740 $603,865 $1,495,309 C $19,966 $19,648 $298,322 $1,159,833 $3,708,269 $505,622 $5,721,046 C $0 $1,912,239 $2,502,336 $3,168 $583,383 $27,188,061 $34,075,314 $0 $0 $0 $0 $367,846 $18,647,063 $19,014,909 C $0 $0 $0 $0 $215,537 $8,540,998 $8,756,535 C $0 $1,278,996 C $0 $1,912,239 $2,502,336 $3,168 $0 $0 $5,024,874 C

227 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Subsystem 7 - Low Level $45,238,654 $39,464 $277,217 C CMIS - Harbor Siphons [HS]: A, B, D, E, G, & H $45,077,867 $89 $0 C Menomonee River MIS Rehab $160,787 $39,375 $1,566 C Mitchell Park PCB Sewer Improvements $0 $0 $0 C Siphons Assessment/Inspection $0 $0 $12,764 C South Shore Force Main Assessment $0 $0 $262,887 General Interceptor Sewer System $12,612,651 $2,117,460 $4,547,333 C Conveyance Pump Station Upgrade Phase II $5,204,555 $473 $0 C SS Force Main Drainage Station Rehab $817,253 $5,471 $0 C MIS Abandonment $31,651 $120,000 $125,000 C Conveyance Gate Rehab $5,907,717 $952,499 $512 C Access Hatch Covers $469,298 $167,464 $475,655 C Gravity Overflow Conversion to Pump Overflow $57,936 $0 $0 C Conveyance Gate Rehab, Phase 3 $105,247 $644,887 $2,444,429 C Miscellaneous Sewer Rehab $1,119 $2,318 $16,755 C Conveyance Gate Rehab, Phase 4 $17,875 $224,348 $1,370,816 C Force Main Cathodic Protection $0 $0 $14,166 C Conveyance Equipment Replacement $0 $0 $100,000 Inline Storage System $297,528 $681,925 $316,100 CSO Structures $297,528 $681,925 $316,100 I CSO Rehab - Hawley Rd (C001) $271,729 $584,841 $0 I CSO102 Rehabilitation - Humbolt $25,799 $0 $0 I CSOs 125 & 134 Backflow Devices $0 $0 $94,499 I NS12 Collector System Improvements $0 $97,084 $221,601 General Contol System $17,795,835 $3,995,333 $2,946,387 Conveyance System Central Control $17,795,835 $3,995,333 $2,946,387 K SCADA Back-up Communication Systems $644,980 $115,549 $0 K Wet Weather Peak Flow Measurement System $16,048,257 $300,097 $5,972 K Conveyance SCADA Upgrade $639,456 $3,178,207 $2,775,257 K Replace Level Sensors in ISS Structures $427,120 $136,746 $0 K Replace Level Sensors in ISS Structures-Phase II $36,022 $264,734 $165,

228 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $1,788,544 $638,962 $75,816 $363,664 $3,408,630 $0 $51,830,951 Total Project Number $0 $45,077,956 C $0 $201,728 C $0 $0 $75,816 $363,664 $3,408,630 $0 $3,848,110 C $1,083,950 $638,962 $0 $0 $0 $0 $1,735,676 C $704,594 $0 $0 $0 $0 $0 $967,481 C $2,721,964 $1,014,593 $808,084 $1,344,888 $2,751,405 $2,944,539 $30,862,917 $0 $5,205,028 C $0 $822,724 C $125,040 $124,980 $66,591 $66,062 $66,326 $0 $725,650 C $0 $6,860,728 C $199,937 $199,329 $194,326 $104,122 $0 $0 $1,810,131 C $35,182 $184,498 $105,612 $686,223 $2,416,550 $2,944,539 $6,430,540 C $487,311 $0 $0 $0 $0 $0 $3,681,874 C $16,430 $14,539 $4,598 $388,481 $168,529 $0 $612,769 C $1,750,332 $4,409 $0 $0 $0 $0 $3,367,780 C $7,732 $386,838 $336,957 $0 $0 $0 $745,693 C $100,000 $100,000 $100,000 $100,000 $100,000 $0 $600,000 C $764,974 $3,314,252 $849,678 $66,541 $0 $0 $6,290,998 $764,974 $3,314,252 $849,678 $66,541 $0 $0 $6,290,998 $0 $856,570 I $0 $198,187 $831,236 $66,492 $0 $0 $1,121,714 I $216,008 $1,725 $307 $49 $0 $0 $312,588 I $548,966 $3,114,340 $18,135 $0 $0 $0 $4,000,126 I $660,969 $0 $0 $0 $0 $0 $25,398,524 $660,969 $0 $0 $0 $0 $0 $25,398,524 $0 $760,529 K $0 $16,354,326 K $660,969 $0 $0 $0 $0 $0 $7,253,889 K $0 $563,866 K $0 $465,914 K

229 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget General Conveyance $0 $1,983,197 $389,566 General Conveyance $0 $1,983,197 $389,566 C Operator Contribution to CIP $0 $201,606 $200,778 C Inflation $0 $0 $0 C Allowance for DOT Reimbursements $0 $1,128,235 $0 I Allowance for Closeout $0 $653,356 $188,788 General Interceptor Sewer System $0 $0 $0 C Allowance for Future Conveyance Rehab Projects $0 $0 $0 216

230 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $507,747 $437,041 $444,212 $8,672,170 $12,923,156 $14,809,178 $40,166,269 Total Project Number $507,747 $437,041 $444,212 $1,172,170 $2,923,156 $14,809,178 $22,666,269 $193,600 $0 $0 $0 $0 $0 $595,984 C $314,147 $437,041 $444,212 $1,172,170 $2,923,156 $14,809,178 $20,099,906 C $0 $1,128,235 C $0 $842,144 I $0 $0 $0 $7,500,000 $10,000,000 $0 $17,500,000 $0 $0 $0 $7,500,000 $10,000,000 $0 $17,500,000 C

231 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Watercourse and Flood Management $196,358,493 $29,014,453 $11,889,065 Milwaukee River Watershed $10,876,027 $12,348,799 $5,211,912 Milwaukee River $164,746 $26,037 $239,593 W Milwaukee River Flood Mgt $164,746 $26,037 $52,643 W Estabrook Dam $0 $0 $186,950 Lincoln Creek $3,483,101 $12,311,546 $4,907,721 W E - North 30th Street Corridor Wet Weather Relief - East $2,772,956 $7,403,718 $4,436,172 W W - North 30th Street Corridor Wet Weather Relief - West $710,145 $4,907,828 $471,549 Indian Creek $7,228,180 $11,216 $64,598 W Indian Creek (W020) Flood Management $7,228,180 $814 $0 W Indian Creek Improvements $0 $10,402 $64,598 Milwaukee River Lake Estuary $0 $0 $0 W Milwaukee River Lake Estuary Study $0 $0 $0 Menomonee River Watershed $141,580,699 $10,351,587 $1,538,170 Menomonee River - Main Stem $131,250,424 $2,697,027 $675,435 W Lower Wauwatosa Flood Control & Restoration Floodproofing - $29,660,825 $2,724 $0 W Milwaukee County Grounds (W017) Detention Basins $89,581,306 $39,526 $0 W Concordia Avenue $535,926 $208,338 $11,253 W Menomonee Valley Flood Mgt (Falk) $304,937 $673,343 $2,639 W Menomonee River Stream Management - CR $5,111,527 $791,856 $9,902 W Phase II Menomonee River Stream Mgt $2,672,798 $473,318 $16,857 W Removal of 5 Low Gradient Barriers $1,184,747 $293,040 $0 W Western Milwaukee Phase 2A $2,114,474 $91,824 $14,491 W Western Milwaukee Phase 2B $0 $23,154 $392,072 W Western Milwaukee Real Estate & Environmental Assessment $82,952 $47,246 $198,200 W Menomonee River Estuary Study $932 $52,658 $30,021 Underwood Creek $4,790,386 $7,042,073 $279,509 W Phase I - Underwood Creek Reach 1 - CR $4,341,325 $30,411 $48,406 W Phase II - Underwood Creek Reach 1, Phase II - CR $440,030 $6,908,563 $37,778 W Underwood Creek Reach 2 - CR $6,258 $101,302 $193,325 W Underwood Creek Reach 1 Phase II Wetland $2,773 $1,797 $0 218

232 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast Total Project Number $13,163,720 $36,432,641 $34,701,326 $34,970,401 $23,731,631 $350,754,625 $731,016,356 $1,038,292 $1,669,094 $86,979 $35,972 $14,018 $61,379,566 $92,660,659 $452,337 $1,413,050 $0 $0 $0 $44,624,238 $46,920,001 $52,337 $0 $0 $0 $0 $44,624,238 $44,920,001 W $400,000 $1,413,050 $0 $0 $0 $0 $2,000,000 W $518,604 $60,783 $36,259 $35,972 $14,018 $16,755,328 $38,123,332 $294,310 $34,401 $34,538 $34,264 $12,304 $34,756 $15,057,419 W $224,294 $26,382 $1,721 $1,708 $1,714 $16,720,572 $23,065,913 W $0 $7,303,994 $0 $7,228,994 W $0 $75,000 W $67,351 $195,261 $50,720 $0 $0 $0 $313,332 $67,351 $195,261 $50,720 $0 $0 $0 $313,332 W $1,939,280 $15,032,762 $12,060,094 $4,590,414 $457,671 $123,915,205 $311,465,882 $1,161,743 $5,169,088 $11,379,008 $4,425,093 $187,028 $11,594,120 $168,538,966 $0 $29,663,549 W $0 $89,620,832 W $32,828 $0 $0 $0 $0 $4,136,064 $4,924,409 W $0 $980,919 W $9,942 $6,773 $0 $0 $0 $0 $5,930,000 W $16,924 $0 $0 $0 $0 $0 $3,179,897 W $0 $1,477,787 W $14,549 $14,549 $14,607 $6,376 $0 $0 $2,270,870 W $797,449 $4,813,456 $10,843,389 $4,366,691 $167,038 $558,332 $21,961,581 W $287,135 $334,310 $521,012 $52,026 $19,990 $6,899,724 $8,442,595 W $2,916 $0 $0 $0 $0 $0 $86,527 W $285,178 $4,683,007 $529,926 $70,898 $71,182 $10,670,672 $28,422,831 $48,599 $48,599 $0 $0 $0 $0 $4,517,340 W $42,729 $70,868 $67,965 $67,425 $67,695 $83,438 $7,786,491 W $193,850 $4,563,540 $461,961 $3,473 $3,487 $10,587,234 $16,114,430 W $0 $4,570 W

233 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget South Branch Underwood Creek $0 $19,881 $242,501 W Underwood Creek S. Branch, Reach 1 - CR $0 $19,881 $242,501 W Underwood Creek S. Branch, Reach 2 - CR $0 $0 $0 Honey Creek $414,987 $210,867 $174,125 W Honey Creek Reach 6 - CR $0 $0 $0 W Honey Creek Reach 5 - CR $0 $0 $0 W Honey Creek Reach 4 - CR $0 $0 $0 W Honey Creek Watercourse Mgmt. Plan & BMPs $164,433 $64,765 $66,511 W Honey Creek USACE Habitat Improvement Feasibility Study $250,554 $137,159 $107,614 W Honey Creek Reach 2 - CR $0 $0 $0 W Honey Creek Streambank Stabilization $0 $8,943 $0 Woods Creek $0 $0 $0 W Woods Creek Reach 1 - CR $0 $0 $0 Grantosa Creek $34,110 $15,347 $28,764 W Grantosa Parkway $34,110 $15,347 $28,764 Schoonmaker Creek $5,090,792 $324,412 $94,539 W Schoonmaker Creek $146,537 $159,249 $0 W Daylighting Schoonmaker Creek $4,944,255 $165,163 $94,539 Menomonee River Lake Estuary $0 $41,980 $43,297 W Menomonee River Lake Estuary Study $0 $0 $0 W Burnham Canal $0 $41,980 $43,297 Root River Watershed $422,959 $19,019 $0 Root River $422,959 $19,019 $0 W N. Branch Root River Watercourse Management Plan $0 $0 $0 W W. Branch Root River Flood Management $366,653 $19,019 $0 W Lower Whitnall Park Creek Flood Mgt $56,306 $0 $0 W Lower Whitnall Park Creek Flood Mgt II $0 $0 $0 220

234 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $239,641 $5,020,699 $0 $0 $158,161 $14,906,482 $20,587,365 Total Project Number $239,641 $5,020,699 $0 $0 $158,161 $6,936,343 $12,617,226 W $7,970,139 $7,970,139 W $97,140 $7,534 $0 $0 $0 $51,385,615 $52,290,268 $11,556,096 $11,556,096 W $13,578,144 $13,578,144 W $11,070,899 $11,070,899 W $0 $295,709 W $97,140 $7,534 $0 $0 $0 $0 $600,001 W $13,189,419 $13,189,419 W $1,991,057 $2,000,000 W $12,593,594 $12,593,594 $12,593,594 $12,593,594 W $1,495 $0 $0 $0 $0 $4,758,226 $4,837,942 $1,495 $0 $0 $0 $0 $4,758,226 $4,837,942 W $94,918 $94,918 $95,296 $39,003 $0 $9,695,852 $15,529,730 $9,695,852 $10,001,638 W $94,918 $94,918 $95,296 $39,003 $0 $0 $5,528,092 W $59,165 $57,516 $55,864 $55,420 $41,300 $8,310,644 $8,665,186 $39,955 $39,955 W $59,165 $57,516 $55,864 $55,420 $41,300 $8,270,689 $8,625,231 W $1,769,020 $2,210,998 $1,769,020 $2,210,998 $749,687 $749,687 W $105,318 $490,990 W $0 $56,306 W $914,015 $914,015 W

235 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Kinnickinnic River Watershed $23,837,361 $3,884,837 $2,012,621 Kinnickinnic River $22,713,470 $2,840,165 $1,914,930 W KK River Flood Management - Mainstem Work (W026) - CR $16,775,304 $2,458,650 $1,396,818 W KK River Reach 3 - CR $152,553 $51,888 $1,625 W KK River S. 6th to S. Chase Flood Mgt $5,685,558 $106,642 $22,285 W Jackson Park $0 $0 $0 W KK River Watershed $0 $17,764 $478,514 W KK River I-94 to Becher $100,055 $205,221 $15,688 Lyons Creek $310,511 $21,386 $0 W KK River Flood Management - Lyons Creek (W026) $310,511 $21,386 $0 43rd Street Ditch Creek $0 $0 $0 W rd Street Ditch Reach 1 - CR $0 $0 $0 W Villa Mann Creek Tributary Culvert Improvement $0 $0 $0 Wilson Park Creek $813,380 $1,023,286 $97,691 W Wilson Park Creek Reach 3 - CR $813,380 $1,023,286 $97,691 W Wilson Park Creek Reach 1 - CR $0 $0 $0 W Wilson Park Creek Reach 4 - CR $0 $0 $0 W Wilson Park $0 $0 $0 Oak Creek Watershed $822,513 $190,907 $197,047 Oak Creek - Main Stem $822,513 $190,907 $197,047 W Oak Creek Flood Management - Floodproofing/Acquisition $815,646 $119,850 $60,720 W Oak Creek Watershed Restoration Plan $6,867 $71,057 $136,327 Lake Michigan Drainage Watershed $155,771 $0 $0 Fish Creek $155,771 $0 $0 W Fish Creek Flood Acquisitions $950 $0 $0 W Menomonee River Estuary Study $583 $0 $0 W Burnham Canal $154,238 $0 $0 General Watercourse Projects $18,663,163 $2,219,304 $2,929,314 System Improvement Plan - Phase II $2,688,628 $25,188 $51,196 W Phase II Corridor & SEWRPC Studies $2,688,628 $25,188 $51,

236 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $5,829,696 $13,006,024 $18,807,327 $26,994,195 $19,454,580 $153,482,718 $267,309,359 Total Project Number $5,817,182 $12,199,948 $16,735,657 $19,521,032 $13,211,623 $42,583,705 $137,537,712 $3,247,313 $5,548,827 $3,651,117 $7,862,433 $13,187,191 $24,771,129 $78,898,782 W $10,482,362 $10,688,428 W $0 $5,814,485 W $1,899,741 $5,993,358 $12,932,704 $11,658,599 $24,432 $97,809 $32,606,643 W $660,023 $657,763 $151,836 $0 $0 $0 $1,965,900 W $10,105 $0 $0 $0 $0 $7,232,405 $7,563,474 W $13,090,441 $13,422,338 $13,090,441 $13,422,338 W $12,990,595 $12,990,595 $9,951,858 $9,951,858 W $3,038,737 $3,038,737 W $12,514 $806,076 $2,071,670 $7,473,163 $6,242,957 $84,817,977 $103,358,714 $12,514 $806,076 $2,071,670 $7,473,163 $6,242,957 $117,784 $18,658,521 W $37,318,230 $37,318,230 W $5,771,391 $5,771,391 W $41,610,572 $41,610,572 W $134,611 $48,071 $0 $0 $0 $5,611,798 $7,004,947 $134,611 $48,071 $0 $0 $0 $5,611,798 $7,004,947 $1,860 $487 $0 $0 $0 $5,611,798 $6,610,361 W $132,751 $47,584 $0 $0 $0 $0 $394,586 W $72,581 $38,565 $0 $0 $0 $4,596,319 $4,863,236 $72,581 $38,565 $0 $0 $0 $4,596,319 $4,863,236 $72,581 $38,565 $0 $0 $0 $4,596,319 $4,708,415 W $0 $583 W $0 $154,238 W $4,149,260 $6,638,125 $3,746,926 $3,349,820 $3,805,362 $0 $45,501,275 $0 $2,765,012 $0 $2,765,012 W

237 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Green Infrastructure $15,974,535 $2,194,116 $2,878,118 W Fresh Coast Implementation $501,805 $644,715 $1,312,613 W Greenseams $15,343,241 $1,200,000 $1,200,000 W Working Soils Program & Milwaukee River Watershed $129,489 $349,401 $365,505 Conservation Partnership (MRWCP) Inflation $0 $0 $0 W Inflation $0 $0 $0 224

238 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $3,942,588 $5,503,112 $2,138,008 $1,204,843 $2,000,000 $0 $35,835,320 Total Project Number $1,581,790 $3,131,905 $917,666 $0 $800,000 $0 $8,890,494 W $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $0 $23,743,241 W $1,160,798 $1,171,207 $20,342 $4,843 $0 $0 $3,201,585 W $206,672 $1,135,013 $1,608,918 $2,144,977 $1,805,362 $0 $6,900,943 $206,672 $1,135,013 $1,608,918 $2,144,977 $1,805,362 $0 $6,900,943 W

239 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Other Projects $86,789,238 $20,619,180 $25,028,897 Facilities Planning $75,535,249 $18,349,816 $20,515,184 Facilities Improvements $3,118,744 $1,740,331 $1,504,346 M KK River Flushing Station Improvements $597,657 $0 $0 M NFPA Study $470,808 $57,038 $96,131 M Milw River Flushing Station Building Rehab $605,070 $294,357 $6,707 M Parking Lot Replacement at 13th & College $544,200 $3,270 $0 M Safe Atmosphere Monitoring $75,003 $69,577 $84,121 M Laboratory Safety Improvements $20,089 $0 $0 M Headquarters Security Improvements $8,574 $0 $0 M Enclose 3rd Floor Cubicles $60,605 $0 $0 M Wharf Wall Improvements $665,418 $1,009,686 $8,817 M ADA Improvements to HQ & Lab $1,755 $32,245 $250,000 M th Street Security/Card Reader System $33,645 $0 $0 M HQ & Lab Heat & Power Generation System $0 $115,625 $394,598 M Reconfigure 2nd Floor $35,922 $29,078 $0 M Laboratory Fume Hood Removal $0 $88,500 $0 M North HQ Wharf Wall Evaluation $0 $10,955 $163,972 M Headquarters and Laboratory Office Remodel and Reconfiguration $0 $30,000 $300,000 M Replace Laboratory Chiller $0 $0 $200, Facilities Planning $23,847,099 $2,371,034 $2,227,630 M Post 2020 FP Implementation Evaluation & Planning $23,847,099 $2,371,034 $2,227,

240 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast Total Project Number $19,290,616 $17,127,003 $20,260,143 $15,728,315 $15,622,237 $27,878,332 $248,343,961 $15,270,390 $12,913,623 $15,679,943 $10,478,835 $9,006,376 $27,878,332 $205,627,748 $306,684 $1,070,328 $2,857,431 $1,180,936 $1,651,244 $9,060,165 $22,490,210 $0 $733,977 $2,320,448 $1,180,936 $1,651,244 $9,060,165 $15,544,427 M $93,820 $12,769 $0 $0 $0 $0 $730,566 M $0 $906,134 M $0 $547,470 M $203,158 $313,876 $535,050 $0 $0 $0 $1,280,785 M $0 $20,089 M $0 $8,574 M $0 $60,605 M $9,706 $9,706 $1,933 $0 $0 $0 $1,705,266 M $0 $284,000 M $0 $33,645 M $0 $510,223 M $0 $65,000 M $0 $88,500 M $0 $174,927 M $0 $330,000 M $0 $200,000 M $2,232,453 $2,132,321 $2,150,043 $0 $0 $0 $34,960,580 $2,232,453 $2,132,321 $2,150,043 $0 $0 $0 $34,960,580 M

241 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Continuous Facilities Planning $23,746,714 $4,292,036 $4,122,185 M Corridor Study, Phase 4 $4,152,653 $834,794 $0 M Water Quality Studies $4,373,190 $732,558 $736,584 M Continuous Water Quality Monitoring Stations $309,707 $9,525 $0 M Real Time WQ Monitoring Stations $1,594,101 $296,296 $0 M Greenhouse Gas Planning Study $898,552 $479,307 $0 M Cross Connection Eliminations $963 $0 $0 M Regional Green Roof Initiative $4,725,620 $69,350 $197,425 M Alternative Energy Planning $327,583 $334,953 $296,169 M TMDL Studies $1,758,810 $78,387 $48,587 M Phosphorous Reduction Demo $435,714 $4,052 $0 M Fresh Coast Green Solutions $4,338,710 $970,661 $1,623,521 M Energy Plan $415,933 $60,056 $105,607 M MMSD Force Main Condition Assessment $343,913 $56,914 $0 M ZIC BMP $64,576 $0 $0 M Corridor Study, Phase 5 $64 $326,234 $357,887 M Bacteria BMP $6,625 $38,949 $0 M Ad Hoc Water Quality Studies $0 $0 $381,405 M Regional Resiliency Infrastructure Plan $0 $0 $375, Facilities Planning $2,038,033 $3,468,257 $3,454,743 M Facilities Planning - Ultimate Build-out $2,038,033 $3,468,257 $3,454,743 Capital Reimbursement Programs $21,886,659 $6,053,526 $8,127,403 M I/I Reduction on Private Property Phase II $14,843,646 $2,726,743 $5,000,000 M Stormwater BMP's $1,117,981 $222,306 $0 M Integrated Regional Stormwater Mgt Plan $1,321,328 $154,326 $259,502 M Private Lateral Inspection and Engineering $4,110,985 $950,151 $867,901 M Green Solutions $492,719 $2,000,000 $2,000,000 Information Technology Improvements $897,999 $424,632 $1,078,877 M Information Technology Software Systems $349,895 $70,000 $0 M Network Equipment Replacement $499,252 $100,000 $0 M Capital Program Management System $0 $158,198 $922,311 M WRF Building Information Modeling $48,852 $96,434 $6,566 M Real Estate Software $0 $0 $150,

242 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $3,751,124 $1,582,375 $2,898,586 $1,538,823 $340,865 $0 $42,272,708 Total Project Number $0 $4,987,447 M $189,344 $0 $0 $0 $0 $0 $6,031,676 M $0 $319,232 M $0 $1,890,397 M $115,308 $111,734 $13,407 $0 $0 $0 $1,618,308 M $92,929 $280,948 $32,441 $0 $0 $0 $407,281 M $0 $4,992,395 M $21,755 $0 $0 $0 $0 $0 $980,460 M $0 $1,885,784 M $0 $439,766 M $855,334 $181,108 $171,540 $0 $0 $0 $8,140,874 M $18,046 $0 $0 $0 $0 $0 $599,642 M $0 $400,827 M $0 $64,576 M $359,318 $359,318 $360,750 $357,887 $117,387 $0 $2,238,845 M $0 $45,574 M $1,724,090 $649,267 $2,320,448 $1,180,936 $223,478 $0 $6,479,624 M $375,000 $0 $0 $0 $0 $0 $750,000 M $0 $8,961,033 $0 $8,961,033 M $8,068,493 $8,043,889 $7,773,883 $7,759,076 $7,014,267 $18,818,167 $93,545,363 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $18,076,942 $65,647,331 M $0 $1,340,287 M $259,471 $258,903 $1,308 $0 $0 $0 $2,254,838 M $809,022 $784,986 $772,575 $759,076 $14,267 $741,225 $9,810,188 M $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $0 $14,492,719 M $911,636 $84,710 $0 $0 $0 $0 $3,397,854 $0 $419,895 M $0 $599,252 M $405,390 $0 $0 $0 $0 $0 $1,485,899 M $506,246 $84,710 $0 $0 $0 $0 $742,808 M $0 $150,000 M

243 2017 Capital Budget Line Item Prior 2016 Estimate 2017 Budget Workforce & Business Development Resource Program $9,243,213 $500,000 $500,000 Workforce & Business Development Resource Program $9,243,213 $500,000 $500,000 M WDTP $9,243,213 $500,000 $0 M WDTP $0 $0 $500,000 Financial Planning $0 $464,779 $300,000 Financial Planning $0 $464,779 $300,000 M Financial Planning $0 $464,779 $0 M Financial Planning $0 $0 $300,000 Risk Management $1,716,187 $1,204,585 $1,958,252 Risk Management $1,716,187 $1,204,585 $1,958,252 M Risk Management Program $1,716,187 $1,204,585 $1,958,252 General Other Projects $294,590 $100,000 $1,755,461 General $294,590 $100,000 $193,000 L Replacement Laboratory Equipment $294,590 $0 $93,000 M Operator Contribution to CIP $0 $100,000 $100,000 Allowance $0 $0 $1,562,461 M Allowance for Cost & Schedule Changes (M999) $0 $0 $1,562,461 Inflation $0 $0 $0 M Inflation $0 $0 $0 230

244 2017 Capital Budget Line Item 2018 Forecast 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast Future Forecast $500,000 $500,000 $500,000 $500,000 $500,000 $0 $12,743,213 Total Project Number $500,000 $500,000 $500,000 $500,000 $500,000 $0 $12,743,213 $0 $9,743,213 M $500,000 $500,000 $500,000 $500,000 $500,000 $0 $3,000,000 M $250,000 $250,000 $250,000 $250,000 $250,000 $0 $2,014,779 $250,000 $250,000 $250,000 $250,000 $250,000 $0 $2,014,779 $0 $464,779 M $250,000 $250,000 $250,000 $250,000 $250,000 $0 $1,550,000 M $1,161,734 $1,161,734 $1,162,859 $1,236,907 $1,180,288 $0 $10,782,546 $1,161,734 $1,161,734 $1,162,859 $1,236,907 $1,180,288 $0 $10,782,546 $1,161,734 $1,161,734 $1,162,859 $1,236,907 $1,180,288 $0 $10,782,546 M $2,108,492 $2,301,646 $2,667,341 $3,262,573 $4,685,573 $0 $17,175,676 $100,000 $0 $0 $0 $0 $0 $687,590 $0 $387,590 L $100,000 $0 $0 $0 $0 $0 $300,000 M $1,705,627 $1,768,076 $1,727,984 $2,297,847 $3,497,126 $0 $12,559,121 $1,705,627 $1,768,076 $1,727,984 $2,297,847 $3,497,126 $0 $12,559,121 M $302,865 $533,570 $939,356 $964,727 $1,188,447 $0 $3,928,966 $302,865 $533,570 $939,356 $964,727 $1,188,447 $0 $3,928,966 M

245 232

246 Milwaukee Metropolitan Sewerage District For more budget information please visit MMSD.com