Rehabilitation Program impact on Sewer Management Harry Krinas City of Hamilton CNAM 2014 Conference Toronto, Ontario May 20-23, 2014

City of Hamilton Population 530,000

City of Hamilton Wastewater Collection 2800km (1740 miles ) of Sewer Pipe 138,000 lateral connections (~ 1300km or 858 miles) 2 Treatment facilities Sewers date back as far as the mid 1800’s 100mm(4”) – 3000mm(120”) & some larger

Linear Network Stats (2014)

Rehabilitation History in Hamilton Early 1990’s – first uses of rehabilitation technologies 2000 – Infrastructure Asset Management 2002 – Rehab program development 2006 – Incorporation of sewer lateral 2008 – Incorporate large diameter pipe 2013 – 300,000 metres (1 million feet ) 2014 – 320,000 metres, $77.3M spent

Rehabilitation Program Structure Project Based Contracts Program Based Contracts

Tender Type & Award RFP (Request for Proposal) Evaluated Best Value Multi Year Performance Based Term The RFP was for the bidders to propose the service level they were willing to provide and at what cost!! Due to the significant of bidding process both for the City and the bidders and to try and leverage the best economics we also chose to issue this as a 3 year term contract

Best Value Award $13,611.11 Criteria Evaluation Points Maximum Score Bid “A” Bid “B” Ability to perform the work 35 34 30 Financial Capability 15 Staff Experience 14 12 Work Plan, Organization, Customer Service, 13 Materials/Method 20 Total Points 100 90 82 Bid $ $ $1,225,000 $1,150,000 Price/Point $13,611.11 $14,024.39 The RFP was for the bidders to propose the service level they were willing to provide and at what cost!! Due to the significant of bidding process both for the City and the bidders and to try and leverage the best economics we also chose to issue this as a 3 year term contract

Program Stats

Program Stats $77 million from 2003 -2014 320 km from 2003 -2014 Avg of $6.3 Million annually 16 miles or 26 km annually

Lateral Rehabilitation History Council amended by-law effective February 15, 2006. Approximately 250,000 laterals city-wide Most are Vitrified Clay Tile Sizes are typically 4”, 5” and 6” Estimate 100,000 required some type of rehabilitation, repair or replacement

Lateral Rehabilitation Requirements Provide a long-term, continuous one-piece solution for both the Lateral and the Connection Address structural and infiltration issues Entry to Private property is not permitted Minimize disruption to surrounding infrastructure

Lateral Structure Lateral and Connection Standard Specifications and Design Lateral Pipe Plus connection Installed as one piece Lateral Pipe Plus Full Circle Sleeve Installed as one piece

Lateral Program Stats 3,180 laterals Lined 10,800 laterals Inspected Approx. 31,500m 10,800 laterals Inspected 6 years (2008-2014)

James St. CIPP 12 buses every half hour Major north south arterial road Significant deterioration (two emergency repairs) Special Design

Dundas Community Oldest community in the City Significant Sewer deterioration issues 13 miles (21 km) rehabilitated in two year Additional 2km this year 149 laterals (2.2km or 1.3 miles)

Deteriorated Sewer? 525mm sewer 3 Segments (178m total length) Wrc Condition Grade 5 Approx. 25% ovality 6.8 m depth Good to Very Good Road Condition

Decision Factors: Condition Risk Financial Decision: Replacement Severely Deteriorated Ovality > 10% Risk Financial Decision: Replacement Beyond normal technical envelope for CIPP Elimination Affordability Not a wrong decision given the philosophy of the past

Decision to Rehabilitate Factors: Condition Severely Deteriorated Ovality > 10% Risk Financial Decision: CIPP Rehabilitation Technically Possible Management Maximum ROI We consider these factors differently today Condition: what is technically possible ? Risk: Management vs Elimination Financial: Not just to day’s cost but the future costs These all must be equally considered in decision in order to be as effective as possible Manage risk maintain service level through the most cost effective means

Life Cycle Costs (Capital Investment) Financial: Replacement Cost: $700,000 CIPP Lining Cost: $68,000 Savings: $632,000 Impact of Savings: 5.2yrs (2% interest) Equivalent Annual Cost (EAC) Cost of Capital 4% (discount rate)   EAC Concrete CIPP Investment $ 700,000 $ 68,000 $ 68,000 Exp. Lifetime 100yr. 2.55yr. 10yr. $ 28,565 $ 28,579 $ 8,383 So what do these savings really mean ? If the lining only lasts 10 years have you really saved anything ?? $632,000 Savings Today In 5.2 years the interest earned on the savings has paid for the Lining. Life Cycle Cost: This CIPP was installed in 2003 (ALMOST 11 YEARS AGO !!) THIS DOES NOT CONSIDER THE SOCIAL & ENVIRONMENTAL COSTS OF REHABILITATION CIPP was carried out in a matter of days while maintaining traffic flow Replacement would have taken weeks and would have likely closed the road for a good portion of that time.

Results Before Lining After Lining 6 Yrs

Benefits $77,282,000 spent on CIPP from 1992 to 2014 $231,846,000 estimated replacement cost $154,564,000 direct cost savings

Benefits Backlog & Future Needs 2014 CCTV Inspection Program Zoom Camera Inspection Program Capital Programming – Replacement & Rehabilitation Total Failure Prevention

Benefits Deficit elimination Significant cost savings Significant reduction in contract administration costs Reduced social impact Reduced economic impact to businesses Reduced carbon foot print

Lessons Complimentary QA/QC Partnership with Contractor Shared Risk Standardize Design Specifications Importance of Programing

QUESTIONS Harry Krinas Harry.Krinas@hamilton.ca