Halifax Water Five Year Business Plan 2015/16 to 2019/20 Approved by the Halifax Water Board October 30, 2014 HALIFAX WATER Five‐Year Business Plan 2015/16 to 2019/20 Glossary AM Asset Management AMI Advanced Metering Infrastructure AWWA American Water Works Association BMPs Best Management Practices BOD5 Biochemical Oxygen Demand (5 Day Period) BPF Biosolids Processing Facility CBOD Carbonaceous Biochemical Oxygen Demand CCC Capital Cost Contribution CCME Canadian Council of Ministers of the Environment CCS Customer Care and Service CCTV Closed Circuit Television CEU Continuing Education Unit CFIA Canadian Food Inspection Agency CIP Capital Infrastructure Program COSS Cost of Service Study COSM Cost of Service Manual CRM Customer Relationship Module CSIF Canada Strategic Infrastructure Fund CSO Combined Sewer Overflow CUPE Canadian Union of Public Employees DIA. Diameter DOE Department of Energy EM Environmental Management EMO Energy Management Opportunities EP Environmental Protection ERA Environmental Risk Assessment FCM Federation of Canadian Municipalities GTU Green Thermal Utility HIAA Halifax International Airport Authority HHSP Halifax Harbour Solutions Project I&I Inflow & Infiltration ICI Industrial, Commercial & Institutional IFRS International Financial Reporting Standards IRS Internal Responsibility System IS Information Systems IWA International Water Association JOHSC Joint Occupation Health & Safety Committee LSL Lead Service Line m3 Cubic Metre MRIF Municipal Rural Infrastructure Fund NGO Non‐Government Organization NSE Nova Scotia Environment NSERC Natural Sciences and Engineering Research Council 1 HALIFAX WATER Five‐Year Business Plan 2015/16 to 2019/20 NSPI Nova Scotia Power Incorporated NSUARB Nova Scotia Utility and Review Board PI Plant Information P2 Pollution Prevention RAM‐W Risk Assessment Methodology for Water RFP Request for Proposal RTU Remote Terminal Unit RWWFP Regional Wastewater Functional Plan. SCADA Supervisory Control and Data Acquisition SIR Stormwater Inflow Reduction SOP Standard Operating Procedure SNSMR Service Nova Scotia Municipal Relations SSO Sanitary Sewer Overflow TRC Total Residual Chlorine TSS Total Suspended Solids UV Ultraviolet WEF Water Environment Federation WRF Water Research Foundation WSC Wastewater and Stormwater Collection WSER Wastewater Systems Effluent Regulations WWM Wet Weather Management WWTF Wastewater Treatment Facility WQMP Water Quality Master Plan 2 HALIFAX WATER Five‐Year Business Plan 2015/16 to 2019/20 Table of Contents Glossary ........................................................................................................................................................................ 1 Table of Contents ...................................................................................................................................................... 3 1. EXECUTIVE SUMMARY ................................................................................................................................. 6 2. INTRODUCTION ............................................................................................................................................... 8 3. CURRENT RATE STRUCTURES .................................................................................................................. 9 3.1 Urban Core & Satellite Systems ...................................................................................................... 9 3.2 Airport/Aerotech System .............................................................................................................. 10 3.3 Regional Development Charge .................................................................................................... 11 4. COST OF SERVICE/RATE DESIGN ......................................................................................................... 12 5. WASTEWATER SYSTEM EFFLUENT REGULATIONS .................................................................... 15 6. FINANCIAL PROGRAMS & PRO FORMA BUDGETS ........................................................................ 17 6.1 Capital Program ................................................................................................................................. 17 6.1.1 Asset Management Program .................................................................................... 17 6.1.2 Five‐Year Capital Budget – General Overview .................................................. 22 6.1.3 Major Projects ................................................................................................................. 23 6.1.4 Integrated Resource Plan .......................................................................................... 30 6.2 Five‐Year Operating Budgets ....................................................................................................... 34 6.3 Debt Strategy ....................................................................................................................................... 38 6.4 Alternative Revenue ......................................................................................................................... 42 7. ENERGY MANAGEMENT ........................................................................................................................... 44 7.1 Energy Management Program ..................................................................................................... 44 7.2 Renewable‐Energy Generation ................................................................................................... 46 3 HALIFAX WATER Five‐Year Business Plan 2015/16 to 2019/20 7.2.1 Wind Energy .................................................................................................................... 46 7.2.2 Hydrokinetic Turbines ................................................................................................ 47 7.3 Energy Recovery ................................................................................................................................ 48 7.3.1 Energy from Biosolids ................................................................................................. 48 7.3.2 Wastewater Effluent Heat Recovery ..................................................................... 48 7.3.3 Bio‐Gas CHP Energy Utilization .............................................................................. 49 8. CONTINUOUS IMPROVEMENT ............................................................................................................... 50 8.1 Organizational Cultural Change .................................................................................................. 50 8.2 Water Quality Master Plan ............................................................................................................ 51 8.3 Wastewater Treatment Facilities Compliance Plan ........................................................... 53 8.4 Environmental Management System Expansion ................................................................. 53 8.5 Wet Weather Management ........................................................................................................... 54 8.6 National Water and Wastewater Benchmarking Initiative (NWWBI) ....................... 61 8.7 Succession Planning ......................................................................................................................... 62 9. SAFETY & SECURITY ................................................................................................................................... 63 9.1 Occupational Health & Safety Programs ................................................................................. 63 9.2 Corporate Security Program......................................................................................................... 65 10. BUSINESS RISKS & MITIGATION STRATEGIES ............................................................................... 67 10.1 Declining Water Consumption .................................................................................................... 68 10.2 Nova Scotia Environment (NSE) Regulatory Compliance ............................................... 68 10.3 Climate Change ................................................................................................................................... 70 10.4 CCME Wastewater Strategy and WSER Regulations .......................................................... 72 10.5 Pension Fund ....................................................................................................................................... 73 4 HALIFAX WATER Five‐Year Business Plan 2015/16 to 2019/20 10.6 Regional Plan ....................................................................................................................................... 75 10.7 Development Pressures and Obligations ................................................................................ 75 10.8 Biosolids ............................................................................................................................................... 76 10.9 Leachate Treatment ......................................................................................................................... 78 10.10 Halifax Harbour Solutions Project (HHSP) Facilities .................................................. 79 10.11 Aerotech Wastewater Treatment Facility ......................................................................