Community Benefits
  • A Closer Look
  • Allowances
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Solutions: A Closer Look

Project Groundwork, the effort being made to address CSOs, SSOs, and sewer system capacity, is a multi-year initiative and is comprised of hundreds of sewer improvements and storm water control projects. It is one of the largest public works projects in the history of our community. This program is divided into two phases for purposes of implementation: Phase 1 (2010-2018) and Phase 2 (beyond 2018). Included in Phase 1 is the Lower Mill Creek Partial Remedy (LMCPR), a short, deep tunnel, and, an Enhanced High Rate Treatment Facility. This tunnel (including the EHRT, pumping station and near-surface facilities at specific CSO locations) is expected to cost approximately $244 million (in 2006 dollars) and will reduce CSO discharges by 2 billion gallons per year.

Project Groundwork is designed around affordability based on a percentage of household income.

Work Components

Work components of Project Groundwork are organized as illustrated in the following table (based upon the June 2009 conditional approval from the U.S. an Ohio EPAs and ORSANCO):

Project Groundwork
Wet Weather Improvements Asset Management

Defined projects (those projects identified in the Wet Weather Improvement Plan)

  • Valued at $620M
  • Does not include projects already completed valued at $218M

Projects funded by annual investment of capital funds for repair, replacement and renewal of MSD's facilities in order to maintain current levels of service.

  • Valued at $51M per year
  • Totaling $510M for years 2009 through 2018

County-wide "allowances"

  • Green Infrastructure
  • Repair
  • Sewer Assessments
  • Trenchless Technology
  • Urgent Capacity
  • Water-in-Basement (WIB)
  • Valued at $255M
  • Does not include projects already completed valued at $53M
Note 1: Completed project costs through 2009.
Note 2: All costs shown are in 2006 dollars.

Some of the Project Groundwork construction effort is better managed by executing projects in "bundles." Bundles are several projects grouped together based upon a number of factors, such as hydraulic dependency,
geographic location, common sewer capacity, and/or water quality issues. Also, the bundle concept allows activities expected from allowances to be incorporated.

Asset Management

The term "asset management" generally refers to a comprehensive and structured approach to the long-term management of assets as tools for the efficient and effective delivery of services. Asset Management (AM) for MSD involves capital expenditures that are not formally considered WWIP projects or Allowance expenditures.

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Project Categories

Project Groundwork solutions are divided into the following major categories of construction:

  • New Sewers
  • Enhanced High-Rate Treatment
  • Storage Facilities
  • Pump Station Improvements
  • Regulator Improvements
  • Upgraded Treatment Plants

A Note on Dollar Values

Project Groundwork's wet weather plan was guided by an EPA requirement to reflect costs "in current dollars, excluding inflation." The guidance requires MSD to convert actual expenditures to a 2006 dollar base to compare to the initial plan budget. The following table lists the conversion factors for dollars expended in the Phase 1 years to make the required calculation.

Actual Cost Conversions to 2006 Dollars
1998 1.046541
1999 1.043471
2000 1.039663
2001 1.036100
2002 1.033901
2003 1.031550
2004 1.015723
2005 1.008155
2006 1.000000
2007 0.942310
2008 0.911841
2009 0.898416
2010 0.868035
2011 0.838681
2012 0.810320
2013 0.782917
2014 0.756442
2015 0.730861
2016 0.706145
2017 0.682264
2018 0.659191

The factors listed for the years 1998 through 2009 were derived from a cost index developed by MSD. Research found that published indices seldom offer a perfect relationship with local conditions. In consultation with the University of Cincinnati, Department of Economics, MSD created an index that is consistent with MSD's business model goal of remaining a leader in its industry. The benefits of this customized approach include the following:

The factors listed for the years 2010 through 2018 assume the historic 3.5% inflationary increase. As data becomes available from the index, these future year factors will be replaced by the calculated values.

Through 2009, MSD has invested approximately $270M (in 2006 dollars) in Project Groundwork solutions.

A program of the Metropolitan Sewer District of Greater Cincinnati
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