Page 10 - Sept/Oct 2015 Vol.33 No.3
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capital improvement planning 101 By Marios Georgiou, PE
Planning for Your Utility’s Success
Introduction growth trends, land use utilization, and wastewater sectors. Within the water
environmental impact considerations and sector, the plan typically examines potable
Whether you are running a utility concerns, and service area boundaries water sources, water distribution and
with 100 or 100,000 customers, having (current and projected). water treatment. In the wastewater sector,
a strategic plan and a vision will place the plan looks into wastewater collection
you ahead of the infrastructure game A best practice use of the plan, and wastewater treatment. Areas of
and streamline your operations. The which allows the customer to receive importance within the wastewater sector
dynamic nature of today’s utility, the a direct benefit, is for each project or may include gravity lines, sanitary pump
amount of dollars spent on infrastructure major milestone to be followed by a stations, sewer line extensions, sewer
maintenance and improvements, and the more detailed study, such as a design rehabilitation, wastewater treatment plant
public scrutiny associated with any project, development or preliminary engineering expansion, individual package wastewater
have led many managers to embrace the report. This type of study investigates the treatment plants, and storm water, along
idea of having an outside professional project in detail, considering additional, with systems operations and management
assist their operations with systems current design practices and industry practices.
evaluations, future planning and funding standards, the manager’s and/or local
applications. Such planning is referred to operator’s preferences and provides The plan begins by collecting historical
as a Capital Improvements Plan, Master an updated project budget relevant at data and system information, along with
Plan, 201 Facilities Plan, or some other the time of the project. With careful establishing a planning and design team.
such term, depending on the local or evaluation of critical components during The team typically consists of engineers,
geographical preference. The purpose of the detailed study, additional potential the public works director, local planners,
this article is to shed some light on the savings and benefits can be identified to system operators and members of the
basic questions surrounding the creation make the project more effective and less local government. The role of each team
of a Wastewater Capital Improvements costly to construct and/or upgrade. member is to share information and
Plan and the important role it serves for ultimately provide vision and direction
the public works manager. Why do I need The Plan? for the community’s future growth.
What is a Capital Having a long-term plan or vision A detailed assessment of the current
Improvements Plan? is important because it helps you, as a infrastructure is achieved by collecting
public works official, to keep the flow system information and by conducting
A capital improvements plan is a of commerce and community moving visits and evaluation of various public
guidance document for a utility or forward for the residents and businesses works sites. System deficiencies
local government with respect to its living within your service area: and needs are identified in terms of
infrastructure and its future growth. • Careful planning of future projects infrastructure, manpower requirements,
The plan outlines the system’s potential water quality compliance and other
growth in a chronological order of can save the community and local similar areas of importance. With the
importance, establishes an appropriate taxpayers from unnecessary fees and help of local planners, developers and
project budget for each major milestone, capital expenditures that can have a local government officials, the future
identifying major items of importance or detrimental or negative impact. growth plan and direction are interpreted
concern. • The cost of developing and in terms of population growth, cost of
implementing the plan is offset by the growth and areas/direction of future
The plan encompasses short and long- benefits received measured by the rate growth and development.
term projects and is usually capped by a of investment return.
20-year term. Updates or amendments to • The plan provides continuity and What information is needed to
the plan are typically required whenever guidance between new and existing get started?
the plan reaches its projected term life, government officials helping to focus on
or whenever a proposed project deviates the immediate tasks at hand, providing Some of the most beneficial
from the previously identified path. better control and service to the information required in developing
Such updates are required to identify customer. an effective capital improvements plan
the importance of the deviation, and • A well-prepared and updated plan will includes: (1) an assessment of the current
to reassess the remaining projected help local officials respond better to an system, (2) a list of immediate needs and
timeframe and impacts to the previously unexpected event or need for service repairs to remain in compliance, (3) a
generated plan. Finally, the plan is growth. list of potential future projects and (4)
intended to cover a large timeframe and a • The plan may be required for the long term goals and objectives of the
broad type of projects such as treatment, compliance purposes on either local, utility or local government. The gathering
collection, distribution, rehabilitation, state or federal levels. of this information may include different
manpower needs, equipment, facilities, local offices or departments and it may
etc. The study considers population What does The Plan cover? take several weeks to do so. Information
that may not be available, but required
10 TPW September/October 2015 The plan is applicable to both water
Planning for Your Utility’s Success
Introduction growth trends, land use utilization, and wastewater sectors. Within the water
environmental impact considerations and sector, the plan typically examines potable
Whether you are running a utility concerns, and service area boundaries water sources, water distribution and
with 100 or 100,000 customers, having (current and projected). water treatment. In the wastewater sector,
a strategic plan and a vision will place the plan looks into wastewater collection
you ahead of the infrastructure game A best practice use of the plan, and wastewater treatment. Areas of
and streamline your operations. The which allows the customer to receive importance within the wastewater sector
dynamic nature of today’s utility, the a direct benefit, is for each project or may include gravity lines, sanitary pump
amount of dollars spent on infrastructure major milestone to be followed by a stations, sewer line extensions, sewer
maintenance and improvements, and the more detailed study, such as a design rehabilitation, wastewater treatment plant
public scrutiny associated with any project, development or preliminary engineering expansion, individual package wastewater
have led many managers to embrace the report. This type of study investigates the treatment plants, and storm water, along
idea of having an outside professional project in detail, considering additional, with systems operations and management
assist their operations with systems current design practices and industry practices.
evaluations, future planning and funding standards, the manager’s and/or local
applications. Such planning is referred to operator’s preferences and provides The plan begins by collecting historical
as a Capital Improvements Plan, Master an updated project budget relevant at data and system information, along with
Plan, 201 Facilities Plan, or some other the time of the project. With careful establishing a planning and design team.
such term, depending on the local or evaluation of critical components during The team typically consists of engineers,
geographical preference. The purpose of the detailed study, additional potential the public works director, local planners,
this article is to shed some light on the savings and benefits can be identified to system operators and members of the
basic questions surrounding the creation make the project more effective and less local government. The role of each team
of a Wastewater Capital Improvements costly to construct and/or upgrade. member is to share information and
Plan and the important role it serves for ultimately provide vision and direction
the public works manager. Why do I need The Plan? for the community’s future growth.
What is a Capital Having a long-term plan or vision A detailed assessment of the current
Improvements Plan? is important because it helps you, as a infrastructure is achieved by collecting
public works official, to keep the flow system information and by conducting
A capital improvements plan is a of commerce and community moving visits and evaluation of various public
guidance document for a utility or forward for the residents and businesses works sites. System deficiencies
local government with respect to its living within your service area: and needs are identified in terms of
infrastructure and its future growth. • Careful planning of future projects infrastructure, manpower requirements,
The plan outlines the system’s potential water quality compliance and other
growth in a chronological order of can save the community and local similar areas of importance. With the
importance, establishes an appropriate taxpayers from unnecessary fees and help of local planners, developers and
project budget for each major milestone, capital expenditures that can have a local government officials, the future
identifying major items of importance or detrimental or negative impact. growth plan and direction are interpreted
concern. • The cost of developing and in terms of population growth, cost of
implementing the plan is offset by the growth and areas/direction of future
The plan encompasses short and long- benefits received measured by the rate growth and development.
term projects and is usually capped by a of investment return.
20-year term. Updates or amendments to • The plan provides continuity and What information is needed to
the plan are typically required whenever guidance between new and existing get started?
the plan reaches its projected term life, government officials helping to focus on
or whenever a proposed project deviates the immediate tasks at hand, providing Some of the most beneficial
from the previously identified path. better control and service to the information required in developing
Such updates are required to identify customer. an effective capital improvements plan
the importance of the deviation, and • A well-prepared and updated plan will includes: (1) an assessment of the current
to reassess the remaining projected help local officials respond better to an system, (2) a list of immediate needs and
timeframe and impacts to the previously unexpected event or need for service repairs to remain in compliance, (3) a
generated plan. Finally, the plan is growth. list of potential future projects and (4)
intended to cover a large timeframe and a • The plan may be required for the long term goals and objectives of the
broad type of projects such as treatment, compliance purposes on either local, utility or local government. The gathering
collection, distribution, rehabilitation, state or federal levels. of this information may include different
manpower needs, equipment, facilities, local offices or departments and it may
etc. The study considers population What does The Plan cover? take several weeks to do so. Information
that may not be available, but required
10 TPW September/October 2015 The plan is applicable to both water
