FROM: Donald J. Polmann, Director of Science and Engineering ( New Water Plan - Quarterly Report - Approve Submittal to SWFWMD

Transcription

1 TAMPA WATER Supplying Water To The Region DATE: February 1,2008 TO: J err y L. Maxwell, General Manager AGENDA ITEM C18 FROM: Donald J. Polmann, Director of Science and Engineering ( SUBJECT: New Water Plan - Quarterly Report - Approve Submittal to SWFWMD SUMMARY: RECOMMENDATION: Pursuant to the Partnership Agreement with SWFWMD, Tampa Bay Water will submit the final report describing the progress made toward implementation of the New Water Plan. The report contains current project information, costs, and schedules of milestone events for the remaining New Water Plan project. This is the final report on the New Water Plan. Approve required submittal of the New Water Plan Quarterly Report to the Southwest Florida Water Management District. DISCUSSION: Section 2.J. of the 1998 Partnership Agreement among Tampa Bay Water, the Member Governments, and the Southwest Florida Water Management District (SWFWMD) requires Tampa Bay Water to prepare and submit to SWFWMD quarterly and annual New Water Plan update reports. These detailed reports are required until the projects are constructed and fully operational. With acceptance of the plant on December 26, 2007, the Plant is operational and all of the Partnership projects are now completed. Therefore, this will be the final New Water Plan submittal. New Water Plan/Master Water Plan Project Enhanced Surface Water System Alafia River Pump Station Tampa Bypass Canal/Hillsborough River Pump Station C.W. Bill Young Regional Reservoir Tampa Bay Regional Surface Water Treatment Plant Re-Pump Station South-Central Hillsborough Intertie North-Central Hillsborough Intertie Brandon Urban Dispersed Wells Brandon/South-Central Connection Loop 72 Completion Date October 2002 September 2002 March 2005 September 2002 August 2003 January 2003 April 2002 January 2002 July 2004 December 2007 Replaced with System 2025 Infrastructure Projects T:\Sci_Eng_Board\2008\Feb08\NWP Dec 07 Qrtr Agenda Item.doc

2 Jerry L. Maxwell February 1,2008 Page 2 With new alternative water supplies serving the region since 2002, Tampa Bay Water met the objectives of the Partnership Agreement by reducing groundwater pumping from the 11 regional wellfields below the 2002 cutback requirements. Configuration I of the Master Water Plan is expected to meet the region's water needs through approximately Tampa Bay Water has investigated new projects to supply its Members in the year 2011 and beyond. In June 2006, the Board approved for consideration the Enhancements Project for future water supply. In October 2006, the Board approved Phases A/B of the Enhancements Project for System Configuration II to meet the region's water needs in the year 2011 and beyond. BACKGROUND: In June 1998, the Tampa Bay Water Board of Directors approved the submittal of our New Water Plan to SWFWMD. On August 25, 1998, SWFWMD's Governing Board unanimously approved the New Water Plan. Subsequently, in accordance with Section 2.J. of the Partnership Agreement, Tampa Bay Water has fulfilled the New Water Plan requirement, now that the Tampa Bay Water Desalination Plant is constructed and fully operational. Attachment T:\Sci_Eng_Board\2008\Feb08\NWP Dec 07 Qrtr Agenda Item.doc

3 New Water Plan Prepared for the Southwest Florida Water Management District October 2007 Aerial of Seawater Desalination Facility Final Report December 2007

4 FINAL NEW WATER PLAN Quarterly Report, December 2007 Table of Contents OVERVIEW 2 PROJECT UPDATE 4 TAMPA BAY SEAWATER DESALINATION SCHEDULE & COSTS 5 Exhibits Summary of Estimated Project Costs System Configuration 1 7 Milestone Events System Configuration 1 8 Tampa Bay Water!'New Water Plan Quarterly Report/December 2007

5 OVERVIEW In 1998, Tampa Bay Water and its Member Governments (Hillsborough, Pasco and Pinellas counties and the cities of New Port Richey, St. Petersburg and Tampa) committed to developing new sources of water that would produce at least 85 million gallons per day (mgd) by the end of In addition to developing new supplies, the agency committed to reducing groundwater pumping at 11 regional wellfields in the Northern Tampa Bay region. This commitment was written in the contracts that created Tampa Bay Water as well as in the Northern Tampa Bay New Water Supply and Groundwater Withdrawal Reduction Agreement (Partnership Agreement) with the Southwest Florida Water Management District (the District). Partnership Agreement As approved on May 14, 1998, the Partnership Agreement between Tampa Bay Water, its members and the District includes the following key objectives: development of new water supplies, phased reduction of groundwater withdrawals from the existing 11 wellfields in Northern Tampa Bay, financial assistance from the District for new water supply development, and water conservation. The phased reductions included in the Agreement specify combined production from the 11 wellfields limited to an average daily quantity of 158 mgd on a running 36-month basis through December 31, 2002, reduced to 121 mgd on a running 12-month basis as of As of December 31, 2007, the permitted annual average quantity from the 11 wellfields shall be further reduced to 90 tngd. Section 2.A. of the Partnership Agreement requires Tampa Bay Water to prepare and submit to the District a New Water Plan that describes the proposed water supply projects that, upon construction, will provide at least 85 mgd of new supply to the region by the end of In August 1998, the District Governing Board unanimously approved Tampa Bay Water's New Water Plan. Section 2.J. of the Partnership Agreement requires submittal of quarterly and annual New Water Plan update reports to the District. Section 2.J. requires that annual reports be submitted to the District that describe in detail the progress that has been made toward implementation of the approved New Water Plan until the projects are constructed and fully operational. The following chart shows that all the projects covered by the Partnership Agreement are constructed and fully operational: New Water Plan/Master Water Plan Project Enhanced Surface Water System Alafia River Pump Station Tampa Bypass Canal/Hillsborough River Pump Station C.W. Bill Young Regional Reservoir Tampa Bay Regional Surface Water Treatment Plant Re-Pump Station South-Central Hillsborough Intertie North-Central Hillsborough Intertie Brandon Urban Dispersed Wells Brandon/South-Central Connection Loop 72 Completion Date October 2002 September 2002 March 2005 September 2002 August 2003 January 2003 April 2002 January 2002 July 2004 December 2007 Replaced with 2025 System Infrastructure Projects Tampa Bay Water/New Water Plan Quarterly Report'I'December 2007

6 With new alternative water supplies serving the region since 2002, Tampa Bay Water met the objectives of the Partnership Agreement by reducing groundwater pumping from the 11 regional wellfields below the 2002 cutback requirements. Configuration I of the Master Water Plan is expected to meet the region's water needs through approximately Tampa Bay Water continues to investigate and implement new projects to supply its members in the year 2011 and beyond. Partnership Funding Under the Partnership Agreement, the District is providing $183 million of ad valorem tax revenues from the region to offset the cost of developing new water supply projects. These funds are to be used for projects that the District deems "eligible", and shall be used for "eligible" project costs. Eligible project costs are identified in the Agreement as those for design, engineering and construction. Five of the Board-approved Master Water Plan projects are eligible for District co-funding: the Enhanced Surface Water System,, North-Central Hillsborough Intertie, Brandon/South-Central Connection and Loop 72 Transmission Main. The Enhanced Surface Water System is eligible for a maximum co-funding of $120 million. The Tampa Bay Seawater Desalination project is eligible for a maximum co-funding of 90 percent of the total capital cost up to $85 million. The North-Central Hillsborough Intertie and Brandon/South-Central Connection are each eligible for 50 percent District co-funding. As presented at the November 26, 2007, joint board meeting between Tampa Bay Water and the District, Tampa Bay Water will be meeting the requirements during 2008 to close out the financial requirements under the Partnership Agreement. The following is the production and reimbursement milestone schedule identified in the "Second Amendment to New Water Sources Funding Agreement Between the Southwest Florida Water Management District and Tampa Bay Water for the Seawater Desalination Water Supply Project of the Master Water Plan" to close out the project: January/February % payout following 30 days from the "In Service" date May/June % payout following four (4) consecutive months at 25 mgd November/December % payout following twelve (12) consecutive months at 12.5 mgd average and payout of the interest following 12 months at 20 mgd average Upon completion of these milestones, the Partnership Agreement projects and reimbursement requirements will be closed out. Howevet, because the Plant is now constructed and fully functional, this is the final New Water Plan report. Tampa Bay Water/New Water Plan Quarter!) "ReportI December 2007

7 Configuration I - Stage C Projects (Construction) (October December 2007) October 2007 Tour with Peak Biety. Construction Completion Agreement meetings. "Run-In" Started and Ended. Acceptance Test Started. November 2007 Acceptance Test Ended. Tampa Electric Company (TECO) Shutdown meeting. NBC Nightly News Media Tour. AWP Submitted Acceptance Test plan. December 2007 DEP & EPC Annual Audit. Restart of plant following TECO outage. Preventative Maintenance Evaluation Report meeting. Sludge Hauling Meeting Mother's Organic. FDEP Tour. Operations Coordination Committee Tour. Operations, Maintenance, and Management Meeting. R.W. Beck Submitted Acceptance Test Report. Work continued on the following items throughout the quarter: Seawater Intake - Cooling Water Pump is in place and operational. Sea Water Pumps are operational. Chemical feed system for intakes is operational. Pretreatment - Sand filter and diatomaceous earth filter adjustments complete and operational. Reverse Osmosis - Membrane and Victaulic installation complete and operational. Post Treatment - Lime saturators and CO 2 installations complete and operational. Product Water Transmission - VFD building installed and operational; refurbished pumps installed and operational. Tampa Bay Water I'New Water Plan Quarterly Report/December 2007

8 TAMPA BAY SEAWATER DESALINATION (Remediation Phase) The facility is located by Tampa Electric Company's Big Bend Power Plant near Apollo Beach on Tampa Bay. Upon remediation, this plant will be capable of providing up to 25 million gallons per day (mgd) and could be expanded in the future to 35 mgd capacity. Tampa Bay Seawater Desalination is the largest seawater desalination plant in North America. The project was originally developed using a Design/Build/Own/Operate/Transfer (DBOOT) procurement method. Due to financial difficulty experienced by the DBOOT's engineering, procurement, construct (EPC) contractor, Tampa Bay Water elected to purchase the facility in May 2002 from the developer. In November 2004, the Tampa Bay Water Board approved a Construction Completion Agreement and an Operations, Maintenance and Management Services Agreement with American Water-Pridesa LLC. PROPOSED DESALINATION TREATMENT CAPACITY Nominal Capacity = 25 mgd; Peak Capacity = 29 mgd PROJECT SCHEDULE Project began June 1996 Issued request for proposals May 1997 Proposals received December 1997 Board ranking and approval to negotiate with four developers July 1998 Final Go decision November 1998 Board selection of top-ranked developer March 1999 Contract (Water Purchase Agreement) awarded July 1999 Developer Closed Interim Financing May 2001 Received NPDES Permit November 2001 Project construction - August 2001 September 2003 Tampa Bay Water purchased facility May 2002 Began water production March 2003 Tampa Bay Water Board pre-qualifies potential completion contractors November 2003 Tampa Bay Water Board approves settlement agreement with EPC contractor February 2004 Release of RFP to competing completion contractors J une 2004 Tampa Bay Water Board approves Construction Completion Agreement and Operations, Maintenance and Management Services Agreement November 2004 Anticipated Contractual Acceptance 2007 ESTIMATED PROJECT COSTS Previous Project Costs through September 2004 (1) $110,000,000 Remediation Project budget $48,430,000 Annual operation and maintenance (2) $21,480,250 Construction Completion Unit Cost ($/1000 gallons) {2) $3.19 EXPECTED CAPITAL COST FUNDING SOURCES Tampa Bay Water Remainder of cost SWFWMD (Funding agreements are approved for design and construction) $85 million Federal 0 % (1) Capital costs are based on Covanta bid (2001). First year unit costs are based on final February 2002 Water Purchase Agreement with Covanta. (2) First year average annual O&M cost estimate based on receipt of full SWFWMD $85MM capital contribution, CCOM&M final negotiated agreements adjusted for 2006 Electric Rates, 2006 Chemical Prices, and Contractual Inflation on services fees in 2006 dollars. Tampa Bay Water I New Water Plan Quarterly Report/December

9 Tampa Bay Water/New Water Plan Quarter^ ^Report/December 2007 EXHIBITS

10 CONFIGURATION I SUMMARY OF ESTIMATED PROJECT COSTS (1) NEW WATER PLAN PROJECTS Enhanced Surface Water System -Alafia River -Tampa Bypass Canal / HRHW/Repump Station - C.W. Bill Young Regional Reservoir & Reservoir Transmission Main -Treatment Facility (surface water) -South-Central Hillsborough Intertie Water Treatment Facility (groundwater) Storage and High Service Pumping North-Central Hillsborough Intertie Brandon Urban Dispersed Wells Construction Completion Loop 72 Phase A & B Brandon/South-Central Connection ESTIMATED CAPACITIES (MGD) PRELIMINARY ENGINEERING & WUP ($) 1,229,450 1,341,484 (2) (3) 192,000 (3) 217, ,952 1,646,817 (4) FINAL DESIGN & CONSTRUCTION COSTS ($) 13,446,786 30,298, ,007,679 95,400,000 71,212,045 6,816,270 27,758,287 46,422,074 27,553, ,561,668 48,430,000 83,376,864 (6) 12,823,336 ESTIMATED ANNUAL O&M COSTS ($) 168, , ,800 8,648,858 (5) 167, ,803 2,990, , ,374 11,762,250 $21,480,250 (7) TBD 17,000 ESTIMATED UNIT COSTS ($/1000 GAL) 1.48(5) $3.19 (7) (1) Costs provided and verified by Jacobs Civil Inc. These are historic costs for report information only; actual O/M costs are subject to escalating operating costs for chemicals, power, labor and other materials. (2) The Stage A costs for the C.W. Bill Young Regional Reservoir are included in the Stage A costs for the Alafia River project. (3) The Stage A costs for the Regional Water Treatment Plant are included in the Stage A costs for the Tampa Bypass Canal Water Supply project. (4) Cost for the evaluation and ranking of proposals only. Design and permitting of facility done by Developer. (5) O&M and estimated unit cost based on 66 mgd capacity. (6) On April 21,2003, Tampa Bay Water Board authorized a hydraulic analysis, pipe diameter and route analysis for Phase A and B. (7) First year average annual O&M cost estimate based on receipt of full SWFWMD $85MM capital contribution, CCOM&M final negotiated agreements adjusted for 2006 Electric Rates, 2006 Chemical Prices, and Contractual Inflation on services fees in 2006 dollars. Following startup and run-in, annual O&M and effective unit costs will be revised based on operating experience. 'Tampa Bay Water I New Water Plan Quarterly Report/December 2007

11 MILESTONE EVENTS The milestone dates listed below provide a written schedule of dates for completion of designing, permitting, funding, contracting for and constructing the projects in the New Water Plan. These dates represent those that must be met as the projects progress in order for Tampa Bay Water to meet the objectives of the Partnership Agreement. By December 31, 2007, Tampa Bay Water must have the remaining projects in operation. These dates differ from the other schedule dates in this document because they represent the latest dates that the events can occur in order for Tampa Bay Water to meet the above objectives. Project Completion of Design June 2001 (1) Earliest date to initiate District co-funding process. Completion of Permitting June 2001 Completion of Contracting (Bidding) November 2004 Completion of Construction December 2007 Funding Agreement with District (1) September 1999 Tampa Bay Water/New Water Plan Quarterly Report/December 2007