SSWA has a Capital Improvement Program (CIP) to replace all existing system components and add new components to meet the ultimate water demand of SSWA customers. Some portions of the program are fairly specific because of the imminent need to replace obsolete components and detailed studies to determine how to rehabilitate them. Other portions of the program are more general due to the relative long remaining useful lives and low maintenance costs of the components.
The basis of the current CIP is the 2016 CIP Update which is a 10-year projection of projects and estimated costs; this was the basis of the 2016 Bond issuance. Unless changes to the 2016 CIP Update are necessary to meet operational requirements, project schedules or scopes, the projects chosen for the next fiscal year follow the Update.
Policy assumptions relating to the CIP budget include:
- Utilize bond funding - $9.5 million - for rehabilitation projects at the Cement Hill Water Treatment Plant based on condition assessments of the water treatment plant and the distribution system.
- Utilize New Capacity funds, which are accumulated connection fees paid by developers, to construct projects to add treatment, storage, pumping, and transmission capacity to the water system to meet increased demand. Cost sharing with bond and replacement funds is permitted when the new capacity increases the available capacity for existing customers as well as for new customers.
- Use Replacement Reserve funds for Board-authorized sole-source projects to be done by preferred contractors on specific, specialized facilities. These include the CHWTP control, security and telephone systems and mechanical repair of the clarifier drives.