Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water

WATER
The lifetime budget for the Water Service Area (including Meter ReplacemenUAMR installation) is $1.2 billion, an increase of $192
million from last year's ClP. This is primarily driven by the increase of more than $300 million associated with the Water Facility Plan
Update that was competed in FY 2009, offset by a reduction of $97 million from the Lead Service Line Replacement Program. This
document provided the basis for a ramp up, beginning in FY 2010 with an increase of $14.5 million, of the replacement of one
percent of the water infrastructure per year. '
Key Findinqs of the 2009 Water Facilities Plan Update:
. Major infrastructure - storage, pumping stations, and transmission mains can meet curent and future water demands;
however, continued investment in upgrades to major infrastructure elements is needed.
. Based on current water quality testing, DC WASA is fully compliant with water quality regulations; however, tuberculation,
which is characteristic in old, unlined pipes, can result in discolored water, taste and odor problems, turbidity, low chlorine
residual and increases in potentialfor biofilms.
. The current median age of small diameter water mains is 74 years old, and 180 miles of pipe are greater than 100 years old.
. Unlined cast iron pipe accounts for 740 miles. ln 2008 dollars, this will require over $2.6 billion to replace/rehabilitate.
. Currently, DC WASA is replacing small mains at a renewal rate of 0.35% per year or about 4 miles per year. This needs to be
increased to a minimum replacement rate of 1o/o or about 11 miles per year at a cost of at least $30 million annually.
Key Recommendations of 2009 Water Facilíties Plan Update:
. Continue a two-pronged, parallel approach to the CIP program - implement identified projects resulting from ongoing system
condition and needs assessment and increase and continue an annualwater main renewal program. Based on a 2O-year
planning horizon, this will require over a $900 million increase (2008 dollars) in capital spending to address currently identified
projects ($2lZ million) and a minimum recommended water main renewal (1o/o replacemenUrehab) program ($700 million).
. Plan work holistically, e.9., plan valve, fire hydrant and lead service replacements in conjunction with location-specific water
main replacements as well as sewer needs and the work of outside agencies working in public space.
Another area worth noting is our current Automated Meter Reading (AMR) system. The batteries of these units are rapidly
approaching the end of their useful life and the units will need to be replaced beginning in FY 2012. The total costs associated with
this new program have not been completely identified in the ten-year CIP program at this time. This is due to the fact that the
overlapping lives of the water meters and AMR units (residential meters accuracy begins to diminish after about 12 - 15 years)
provide us with an opportunity to analyze the most cost effective manner in which to provide our customers with bills based on actual
reads as well as ones that reflect actual usage. While this CIP includes over $17 million over the next ten years for future meter
replacement, the estimated costs may increase depending on the outcome of the analysis to replace both the meters and the AMR
units.
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