Capital Improvement Program
The Capital Improvement Program (CIP) is a planning and budgeting tool that provides information about SAWS' infrastructure needs. It identifies facility and equipment requirements for sustaining, restoring and modernizing the facilities and infrastructure that support water supply and delivery, wastewater collection and treatment, and heating and cooling requirements in the SAWS service area. It also prioritizes and schedules them for funding and implementation through a multi-year plan.
The CIP supports four core business areas: Heating and Cooling, Water Delivery, Wastewater and Water Resources. The 2013 program totals almost $350.2 million, broken out as follows:
|Core Business Area||Approximate Funding|
|Heating and Cooling||$6,170,296|
|A complete look at the program budget with planned award quarter information can be found in the CIP Program Budget (Adobe PDF).|
The Heating and Cooling Program is self-funded through revenues it generates from customers. The Water Supply Program funds the development of long term water supplies from surface and alternative groundwater sources through a fee assessed to ratepayers. The Water Delivery/Wastewater CIP funds the expansion, improvement and replacement of infrastructure required to generate, deliver, collect and treat water and wastewater through bonds, revenues and impact fees.
The overall funding split for the 2013 water delivery and wastewater collection and treatment program is 90% repairs and replacements and 10% additional capacity to support new growth and development.
The 2013 program was developed using a refined prioritization process started in 2006. Projects generated by Treatment, Production, Master Planning, Facilities Engineering, and Distribution and Collection departments were reviewed and scored by a CIP Planning Group consisting of submitting vice presidents, directors and managers. The scoring process addressed the business risk exposure, independent of available funds, through a derivative of the Failure Modes and Effects Analysis (FMEA) methodology. FMEA provides a structured approach to the analysis of risk through a composite index that considers potential impact of failure, probability of occurrence, and ability to mitigate the impact. Projects were totaled by dollar amount and compared to the long term funding strategy, and final selection was made by SAWS' Executive Management Team and approved by SAWS' Board of Trustees.
Other criteria used to prioritize projects included project coordination, savings to the annual Operations and Maintenance budget, improved customer service, regulatory mandates, criticality, priority in relation to other projects and availability of funds.
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