1. KLEINFELDER CONFIDENTIAL Integrated Planning and Combined Sewer Overflow Program Development Workshop for CSO Permittees Thursday, June 27, 2013 Princeton, NJ

2. KLEINFELDER CONFIDENTIAL Topics Covered How is Integrated Planning different from traditional CSO Permit programs? Program Tool Box – Building a Program Other Applications: the Stormwater Challenge Applying the Framework in New Jersey

3. KLEINFELDER CONFIDENTIAL Key Facts Population Served: 250,000 500 miles of sewer and combined sewer 220 miles of storm drains 23 CSO regulator structures 7 Flood Control pump stations 27 Sanitary pump stations Bondi Island SRWTF: Serving Springfield and 7 Satellite Communities Introduction of Case Study Springfield System

4. KLEINFELDER CONFIDENTIAL Comparative Context – Sample CSO Communities in NJ

5. KLEINFELDER CONFIDENTIAL There has to be a better way…. Prior to Development of Final Long Term Control Plan SWSC Spent $88M on CSO Reduction in 12 Years Resulting in the Elimination of 3 CSO Outfalls and 84 MG +/- of CSO Removed in the Typical Year Spent $1,050,000 +/- Per MG Removed Little to No Money Was Spent on Other Obligations Results were not cost effective and the program was not sustainable

6. KLEINFELDER CONFIDENTIAL Traditional vs. Integrated Planning Model Traditional: “Adversarial” Regulatory Enforcement silo through AO’s Definitive, retrospective (“stationarity”) Affordability basis: CSO Implementation Plan Only Grey Infrastructure BMPs CSO Impacts on WQ metrics Integrated Plan Model : Collaborative Permitting/Enforcement coordination Adaptive/Iterative (climate change) Affordability basis: considers all CWA reqmts Green Infrastructure & Hybrid Solutions Dev. Plan for best WQ improvements Holistic Asset Management Approach

7. KLEINFELDER CONFIDENTIAL Benchmarking : What are YOUR program’s goals? CSO Control SSO’s FOG Issues I/I Issues Development of an Asset Management Program Nutrient Issues at Plant Stormwater Management Vulnerability Assessments (i.e. Security; Redundancy; Climate Change) Sustainable Infrastructure (Upgrades and/or Repair/Rehabilitation/Replacement) etc Approach to Compliance: Steps and Timeframes Collect Data to Support Analysis Develop Work Plan Perform Benchmarking Data Collection Input to Analysis Framework Update Models Develop weights and scoring Develop alternatives scenarios Evaluate the Scenarios Include “Green” elements Water Quality Impacts Human Health Impacts Financial Requirements Timeline to Implement Select the Best Scenario OUTCOME: Recommended CSO Control Plan Maximum environmental and system benefits with limited resources Duration : 9 Months Duration : 6 Months Duration : 9 Months Data Collection : To Support the Analysis Framework that support YOUR Goals: Flow Metering Pipe Assessment (Structural and O&M) Other Field Investigations Socio-Economic Data Other Asset Condition Assessments (Pump Stations; Treatment Plant) WWTF Process and Capacity Data Water Quality Data GIS and Existing Conditions Records etc Models : System Hydralic Model Water Quality Model Treatment Plant Hydraulic and Process Models Risk Model Benefits Model Financial Model etc

8. KLEINFELDER CONFIDENTIAL Steps and Timeframes – Cont.’d Stakeholder Outreach Community Driven Involves key community groups Involves Stakeholders and Partnerships Implement Projects Phase implementation over 20, 30 or 40 year time frame (or as appropriate) Monitor & Communicate Success Monitor and measure results Share lessons learned with the community, EPA, and other municipalities Adapt controls as indicated Finalize the Recommended CSO LTCP Environmental Economic Water Quality Social OUTCOME: accepted plan, path for implementation Start: as projects completed Throughout project (or as preferred by client) with public meetings and hearings included Duration : 3 Months Submit CSO Draft/Final LTCP: Public Comment Period Negotiated and memorialized in permits or AOs

9. KLEINFELDER CONFIDENTIAL Integrated LTCP Screening of Recommended Hybrid Alternatives for Control of CSOs: Sewer Separation Was Screened Out Due to High Cost Storage and Satellite Treatment Was Less Expensive Than Separation But Was Screened Out Due to Less Desireable O&M Implications 0 Activations Was Screened Out Due to High Cost

10. KLEINFELDER CONFIDENTIAL Integrated LTCP LEAVING: The Preferred Hybrid Alternative with 4 Activations was Determined – Cost = $312M The Preferred Hybrid Alternative with 8 Activations was Determined – Cost = $196M

11. KLEINFELDER CONFIDENTIAL Develop Integrated LTCP Evaluation of Alternatives (Benefits Modeling):

12. KLEINFELDER CONFIDENTIAL Non-CSO Plan and Cost – Asset Management 10 Steps DATA GATHERING PHASE PLANNING PHASE

13. KLEINFELDER CONFIDENTIAL Develop Integrated LTCP Develop Non-CSO Capital Improvements Plan

14. KLEINFELDER CONFIDENTIAL Develop Integrated LTCP Combine CSO and Other Non-CSO Costs: CSO Costs Ranged from $196M to $312M Non-CSO Capital Costs Were Approximately $315M Total Program Costs Ranged from $511M to $627M

15. KLEINFELDER CONFIDENTIAL Affordability Analysis – a Key Component Process Focused on Balancing Total Future Costs to Provide Wastewater Collection and Treatment With Rate Payers Ability to “Afford” Improvements Impact on Typical Households – Residential Indicator = Typical Household Bill as Percent of Median Household Income Also Consider Broader Financial Capabilities of Community such as Ability to Raise Capital, Unemployment, MHI Trends and Strength of Tax Base

16. KLEINFELDER CONFIDENTIAL Affordability Analysis Set a Boundary Condition of RI = 2% MHI Resulted in $225M - $266M Available Over 20-40 Planning Horizon Total Identified Costs $627M Exceeded Affordability by $361M Total Identified Non-CSO Costs $315M Exceeded Affordability by $49M Determined That Plan Needed to Prioritize Non-CSO and CSO Related Improvements within an Integrated Plan

17. KLEINFELDER CONFIDENTIAL What Does “Affordable” Mean? Affordability Considerations Indicated that 0 to 4 Overflow Scenarios Were Not Affordable Used Water Quality Modeling to Further Justify That there was Very Little Cost Benefit in Going from 8 to 4 Overflows

18. KLEINFELDER CONFIDENTIAL CSO Components Recommended Improvement Estimated CostDate Washburn CSO Control$15,000,0002012 - 2014 York Street PS and River Crossing $49,240,000 2015 - 2020 Locust Transfer $8,000,000 2015 - 2016 York to Union Box Culvert $30,400,000 2020 - 2027 Union/Clinton Conduit $14,400,000 2025 - 2029 Worthington/Clinton SWM and Separation $18,903,000 2027 - 2031 Totals$135,943,00020 years Recommended CSO and Wastewater Capital Program (>85% CSO Volume Reduction, >95% Water Quality Compliance) Existing Wastewater Components Recommended Improvement Estimated CostDate Capital PS Improvements$2,200,0002012 - 2021 Pre/Primary Treatment $17,250,000* 2018 - 2022 Bar Screen Facility $200,000* 2015 - 2017 Intermediate Term Treatment Plant $1,300,000* 2018 - 2020 Continued Pipeline Diagnostics $14,800,000 2015 - 2031 Pipe Rehabilitation $28,267,000 2012 - 2031 Additional Pipe Rehabilitation $56,700,000 2032 - 2041 Long Term Diagnostics $8,800,000 2032 - 2041 Long Term Treatment Plant $48,800,000* 2032 - 2041 Long Term PS Improvements $70,000,000 2032 - 2052 Totals$248,317,00040 years *Springfield portion of SRWTF work is 50%

19. KLEINFELDER CONFIDENTIAL Final Plan Achievements Integrated the CSO and Non-CSO Elements into a Prioritized Plan: 20 Year CSO Plan - $136M and 40 Year Non-CSO Capital Improvement Plan - $248M CSO Plan Included: Greater Than 89% Volume Reduction (EPA Goal = 85%) – Baseline Volume = 536 MG; Final Plan Volume = 58 MG; 478 MG Removed 95% Water Quality Attainment $136M Planned + $88M Spent to Date = $224M Spent on CSO Reduction $496,000 / MG Removed RI AT 2% MHI in < 20 Years CSO and Non-CSO Components Provide Renewal to Critical Infrastructure and CSO Control While Reducing Risk

20. KLEINFELDER CONFIDENTIAL Improvements to the Plan Adaptive Management Milestone pauses and reassessment DriverRequirement/Consideration AO RequirementsFLTCP May 2012, Washburn CSO Control September 2012 to September 2014, Remaining Plan Implementation, CMOM Non-CSO Capital Requirements Bondi Island SRWTF, Sanitary Pumping Stations, Wastewater Collection System, Wastewater O&M, Flood Control System Stormwater Collection and Management Stormwater O&M (City of Springfield) Future Regulatory Requirements Bondi Island SRWTF NPDES Permit, CSO Permit, MS4/Stormwater Permit, Nutrient Control, Blending Requirements

21. KLEINFELDER CONFIDENTIAL Program Findings Conclusions Proposed 20 Year CSO Plan meets Regulatory Criteria for CSO Control >85% CSO Volume Reduction System-wide. >95% Water Quality Attainment. CSO Plan Programmed over 20 years, Non-CSO Programmed over 40 years. RI at 2% in <20 years. CSO and Non-CSO components provide SWSC renewal to critical infrastructure and enhanced CSO control while reducing risk.

22. KLEINFELDER CONFIDENTIAL The Stormwater Nexus CSO communities have taken the lead on Integrated Planning efforts due to heavy cost burden of wet weather solutions (e.g. sewer separation) NJPDES Stormwater Permits, TMDL pollutant reduction goals and non-point source (stormwater) mitigation are becoming a significant potential competitor for limited budget resources

23. KLEINFELDER CONFIDENTIAL Re-Calibrating The Cost of Stormwater Compliance September 2011Final Report: Sustainable Stormwater Funding Evaluation for the Upper Charles River Communities of Bellingham, Franklin and Milford, MA.

24. KLEINFELDER CONFIDENTIAL Escalating Costs – Capital and Operating Estimated between $30M - $75M in capital costs to meet phosphorus load reductions required in TMDL

25. KLEINFELDER CONFIDENTIAL Conundrums and Contradictions CSO Program Strategies vs. MS4 Regulations (Economic Reality 101) Sewer Separation predominant approach for CSO mitigation TMDL studies/allocations on the basis of “existing conditions” New separated flows equal to “New” or “Additional” Discharges subject to anti-degradation requirements

26. KLEINFELDER CONFIDENTIAL

27. The Hand-off Existing Stormwater Criteria Remove Infiltration/Inflow Mitigate 25 year storm peak discharge to 2 year 80% TSS removal Additional Stormwater Criteria Remove first 1” of rainfall Recharge 40% of runoff volume Remove 100% total phosphorous load

28. KLEINFELDER CONFIDENTIAL Intersection at Green Infrastructure Benefits of GI/LID Peak flow reduction (CSO and SW benefit) Pollutant load reduction (CSO and SW benefit) Groundwater recharge – base flow maintenance Community aesthetic/recreational value Greater adaptive capacity than piped systems (CSO and SW benefit)

29. KLEINFELDER CONFIDENTIAL The Challenge EPA guidance is clear on outputs and outcomes, but is not well developed regarding process: “When developing an integrated plan, a municipality/community must determine and define the scope of the integration effort, ensure the participation of entities that are needed to implement the integrated plan, and identify the role each entity will have in implementing the plan.”

30. KLEINFELDER CONFIDENTIAL The Challenge CSO and MS4 programs involve a high degree of technical and regulatory complexity. Scoping can be challenging. The CSO permit holder for a geographic area may not be the MS4 permit holder in that jurisdiction. Collaboration can be challenging. Multiple stakeholders with different backgrounds can have widely different notions of the problems and solutions, creating social complexity and the potential for controversy.

31. KLEINFELDER CONFIDENTIAL The Big Idea! Integrate state-of-the-art risk management process into CSO programs to consistently produce positive outcomes despite the technical and social complexities involved. Strategic application of effective problem solving processes that are: Technically informed, and Response to stakeholder’s needs and interests. Relationships Substance Process

32. KLEINFELDER CONFIDENTIAL The effect of uncertainty on objectives Involves both hazard and opportunity Objectively measured by probability, magnitude, and controls Perception is subjectively influenced by perspective What is Risk? What is Risk Management? Robust process for identifying and analyzing hazards and opportunities, and Consistent, explicit system of controls to optimize resource allocation.

33. KLEINFELDER CONFIDENTIAL Encourage proactive, collaborative management to identify opportunities and threats. Establish a consistent and transparent basis for decision making and planning Tailored to organizational need Uniform and explicit “risk appetite” Program and processes for monitoring, adapting, and improving Move from reactionary to planned spending and actions – i.e. optimize performance! Risk Management Benefits

34. KLEINFELDER CONFIDENTIAL ISO 31000:2009 Risk Management Principles and Guidelines. Australian–New Zealand 4360:2004 Risk Management Standard ICLEI, International Council for Local for Environmental Initiatives IAM, Institute of Asset Management EPA Asset Management Federal Highway Administration, Asset Mgt Industry Specific “How To” Information

35. KLEINFELDER CONFIDENTIAL Risk Management Principles used by permission Green infrastructure & sustainable technologies Reflect state requirements maximize effectiveness of $ Analysis of alternatives and project sequencing Evaluate and address community impacts