Massachusetts Water Resources Authority

FY21 Draft Final Capital Improvement Program

May 27, 2020

• Impact of COVID-19

• FY21 Draft Final CIP complies with the Cap requirements

• Focus on Asset Protection and Long-Term Redundancy

• Metropolitan Tunnel Redundancy

• CEB Impacts

FY21 Draft Final CIP

3

MWRA and its construction activities have been challenged by the COVID-19 pandemic:

• Governor’s Stay-At-Home Advisory

• MWRA non-essential employees teleworking and an A/B schedule in place for critical operations

• Impact on CIP projects and CEB Maintenance

COVID-19

4

FY21 Draft Final CIP - FY19-23 Base-Line Cap

5

FY19 FY20 FY21 FY22 FY23 Total FY19-23

Projected Expenditures $179.2 $276.1 $251.3 $194.9 $150.4 $1,051.8I/I Program (19.2) (25.7) (24.3) (27.9) (26.1) (123.2)Water Loan Program (8.3) (8.4) (7.2) (5.6) (2.8) (32.4)MWRA Spending 151.7 241.9 219.7 161.4 121.4 $896.2Contingency 9.9 15.9 14.5 11.0 8.2 59.4Inflation on Unawarded Construction 0.7 5.0 7.8 7.2 8.5 29.3Chicopee Valley Aqueduct Projects (0.0) 0.0 0.0 0.0 0.0 (0.0)FY19 Final FY19-23 Spending $162.3 $262.8 $242.0 $179.6 $138.1 $984.8

FY19 FY20 FY21 FY22 FY23 Total FY19-23

Projected Expenditures $142.9 $158.3 $266.2 $251.9 $236.0 $1,055.2I/I Program (39.6) (31.5) (32.0) (26.6) (22.3) (152.0)Water Loan Program (13.8) (5.8) (33.2) (9.7) 8.3 (54.2)MWRA Spending $89.4 $121.0 $201.0 $215.7 $222.0 $849.1Contingency 0.0 0.0 12.1 14.2 15.1 41.5Inflation on Unawarded Construction 0.0 0.0 1.4 5.2 8.1 14.6Chicopee Valley Aqueduct Projects (0.0) 0.0 0.0 0.0 0.0 (0.0)FY21 Draft final FY19-23 Spending $89.4 $121.0 $214.5 $235.0 $245.2 $905.1

FY19

-23

Bas

e-L

ine

Cap

FY21

Dra

ft Fi

nal

$s in millions

6

FY21 Draft Final CIP – Top Spending Projects Excluding Community Loans in FY19-23 Cap Period

Project ContractProjected FY19-23

Expenditures $s in millions

DI Treatment Plant Asset Protection Clarifier Rehab Phase 2 - Construction $75.3Corrosion & Odor Control NI Odor Control HVAC Improvement Construction Phase 2 $57.6Facility Asset Protection Chelsea Creek Upgrades - Construction $51.8Facility Asset Protection Prison Point Rehab - Construction $41.8SEH Redundancy and Storage Redundancy Pipeline Sect 111 - Construction 3 $20.4NIH Redundancy & Storage Section 89 & 29 Redun Construction Phase 2 $19.8DI Treatment Plant Asset Protection Gravity Thickener Rehab $19.5NIH Redundancy & Storage Section 89 & 29 Replacement - Construction $16.7DI Treatment Plant Asset Protection Fire Alarm System Replacement - Construction $15.8

Total Contracts > $15.0 million $318.6% of FY19-23 Spending 30.2%

Total Projected FY19-23 Spending $1,055.2

• Asset Protection and Redundancy are the principal drivers of future capital expenditures

FY21 Draft Final CIP – Asset Protection and Redundancy

7

Project Category FY14-18 FY19-23 FY24-28

Asset Protection $222.8 $570.5 $1,259.2Water Redundancy $174.6 $206.8 $386.6CSO $64.7 $10.0 $0.1Other $123.5 $267.9 $213.3Total $585.6 $1,055.2 $1,859.1 Asset Protection 38.0% 54.1% 67.7%Water Redundancy 29.8% 19.6% 20.8%CSO 11.0% 1.0% 0.0%Other 21.1% 25.4% 11.5%Total 100.0% 100.0% 100.0%

$s in millions

• Wastewater Asset Protection is driving future capital expenditures

FY21 Draft Final CIP – Asset Protection by Utility

8

$199.0

$437.6

$928.9

$19.8

$119.6

$330.2

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

FY14-18 FY19-23 FY24-28

$s in

Mill

ions

Asset Protection by Utility

Wastewater Waterworks

Total Final FY21 Expenditures: $266.2 million

FY21 Draft Final CIP – FY21 Expenditures

9

$s in millions

Wastewater$153.5

58%

Waterworks$90.334%

BOS$22.4

8%

FY21 Spending

10

FY21 Draft Final CIP – Top Spending Projects Excluding Community Loans in FY21

Project ContractProjected FY21 Expenditures $s

in millions

Corrosion & Odor Control NI Odor Control HVAC Improvement Construction Phase 2 $20.0Facility Asset Protection Chelsea Creek Upgrades - Construction $17.7Facility Asset Protection Prison Point Rehab - Construction $15.7DI Treatment Plant Asset Protection Clarifier Rehab Phase 2 - Construction $14.5SEH Redundancy & Storage Redundancy Pipeline Section 111 - Construction 3 $7.3DI Treatment Plant Asset Protection Gravity Thickener Rehab $6.6

Total Contracts > $5.0 million $81.7% of FY21 Spending 30.7%

Total Projected FY21 Spending $266.2

Nut Island Odor Control & HVAC Improvements Construction

FY21 Budget : $20.0MTotal Contract: $57.6MNTP: February 2020SC: December 2022

FY21 Draft Final CIP – FY21 Top Spenders - Asset Protection

11

Chelsea Creek Headworks Upgrade Construction

FY21 Budget: $17.7MTotal Contract: $83.4MNTP: November 2016SC: November 2020

FY21 Draft Final CIP – FY21 Top Spenders – Asset Protection

12

Prison Point Rehabilitation ConstructionFY21 Budget: $15.7MTotal Contract: $41.8MNTP: September 2020SC: September 2022

FY21 Draft Final CIP – FY21 Top Spenders – Asset Protection

13

FY21 Draft Final CIP – FY21 Top Spenders – Asset Protection

14

Clarifier Rehabilitation Phase 2 Construction

FY21 Budget : $14.5M Total Contract: $137.2MNTP: September 2020SC: January 2025

Southern Extra High Redundancy Section 111 Construction 3

FY21 Budget: $7.3MTotal Contract: $20.4MNTP: August 2018SC: November 2020

FY21 Draft Final CIP – FY21 Top Spenders - Redundancy

15

Gravity Thickener Rehabilitation

FY21 Budget: $6.6MTotal Contract: $19.9MNTP: May 2018SC: February 2021

FY21 Draft Final CIP – FY21 Top Spenders - Asset Protection

16

12 new projects added to the CIP totaling $55.0 million

Projects > $1.0 million are as follows:

• Water Tank Painting Bellevue 1 & 2, Park Circle, Walnut Hill, Deer Island - $27.9 million

• Cosgrove Tunnel Rehab. Design - $10.0 million

• Beacon Street Line Rehabilitation - $9.3 million

• Deer Island Roof Replacement: $2.0 million

• Clinton Landfill Cell #1 Closure: $1.0 million

FY21 Draft Final CIP – New Projects

17

• 74 Contract Awards planned for FY21• Total Contract Value: $439.1 million

FY21 Draft Final CIP – FY21 Contract Awards

18$s in millions

Wastewater29

39%Waterworks

3446%

BOS11

15%

Contract Value Contract Awards

Wastewater$297.7

68%

Waterworks$125.1

28%

BOS$16.3

4%

FY21 Draft Final CIP - Projected Contract Awards ($’s in millions)

19

Project SubphaseNotice to Proceed

Total Contract Amount

$s in Millions

DI Treatment Plant Asset Protection Clarifier Rehabilitation Phase 2 - Construction Sep-20 $137.2Facility Asset Protection Prison Point Rehab - Construction Sep-20 $41.8DI Treatment Plant Asset Protection Fire Alarm System Replacement - Construction Jan-21 $28.8Facility Asset Protection Ward St & Columbus Park Headworks Des/CA Jul-20 $22.0NIH Redundancy & Storage Section 89 & 29 Repl - Construction Jul-20 $21.3New Connecting Mains-Shaft 7 CP3-Section 23,24,47, Rehabilitation Sep-20 $14.7Metro Redundancy Interim Improvements WASM 3 CP-1 Jul-20 $13.0Central Monitoring System CWTP SCADA Upgrade Construction Dec-20 $13.0DI Treatment Plant Asset Protection MCC & Switchgear Replace Construction Sep-20 $11.2Cathodic Protection Of Distribution Mains Cathodic Protection Metropolitan System Des/CA Jan-21 $9.2

Top 10 Contracts $312.1% of Total Planned Awards 71.1%

74 Contract Awards Planned $439.1

Historic and Projected Capital Improvement Spending

20

$196

$304

$413

$504

$608

$580

$437

$377

$447

$498

$392

$333

$365

$297

$194

$168

$152

$178

$196

$182

$211

$139

$138

$155

$102

$104

$95 $1

33

$151

$143

$158

$266

$252

$236

$0

$100

$200

$300

$400

$500

$600

$700

$ m

illio

ns

Actual Projected

FY90-19 Average $273M/year

FY20-23 Average $228M/year

Historic and Projected Capital Improvement Spending by Utility

21

$79

$286

$389

$463

$590

$564

$395

$282

$273

$245

$199

$146

$143

$117

$92

$89

$102 $1

20 $147

$124 $1

53

$92

$76

$74

$56 $7

5

$64

$72

$65

$75 $9

7 $153

$143

$133

$117

$18

$24

$41

$18

$16

$43

$95

$174

$253

$193

$187 $2

22

$180

$102

$79

$50 $5

6 $46

$53 $5

0

$39

$55 $7

5

$41

$23

$27

$63 $8

3

$66 $5

4

$90 $9

8

$97

$0

$100

$200

$300

$400

$500

$600

$700

$ in m

illion

s

Wastewater Improvements Waterworks Improvements

Actual Projected

FY90-19 Water $83M/yr

Wastewater $188M/yr

FY20-23 Average Water $85M/yr

Wastewater $132M/yr

Capital Spending and Debt Service

22

$0

$100

$200

$300

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$500

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$700

FY86

FY88

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$ in

Mill

ions

MWRA Capital Spending &

Debt Service

Debt Service CIP - Actual CIP - Draft Final FY21

As of June 30, 2020, the total Indebtedness

is $4.9 billion

Debt Service

23

$0

$100

$200

$300

$400

$500

$600

$700

FY86

FY88

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$ in

Mill

ions

Current Debt Service vs. FY16 Debt Service

Current Debt Service 2016 Peak Years Debt Service

Current cap period debt service is projected tobe $513.7 mi l lion less than in FY16.

Level of MWRA Indebtedness

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$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

$4,000,000,000

$4,500,000,000

$5,000,000,000

$5,500,000,000

$6,000,000,000

$6,500,000,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Outstanding Debt on June 30 by Fiscal YearFY12-FY23

$5.85B$5.73B $5.60B

$5.39B$5.21B

$5.11B $5.07B $4.95B $4.91B $4.84B $4.72B

$5.94B

• Metropolitan Tunnel Redundancy• Lessons learned from Chelsea Headworks Upgrades• Continue Asset Protection• Continued impacts of COVID-19• Potential Federal Stimulus

Looking Ahead

25

FY21 Draft Final CIP

26

Thank You!

Massachusetts Water Resources Authority

May 27, 2020

Metropolitan Tunnel Redundancy

Preliminary Design, Geotechnical Investigation and Environmental Impact Report

Contract Awardand

Program Update

29

Metropolitan Tunnel Redundancy Program

Proposed Northern Tunnel

Proposed Southern Tunnel

Tunnel Alignment Study Area

• Project Management, Regulatory Agency, and Stakeholder Coordination

• Environmental Notification Form - MEPA

• Evaluation of Alternatives

• Environmental Impact Report - MEPA

• Geotechnical Subsurface Investigation and Evaluation

• Base Mapping and Survey

• Preliminary Design

30

Preliminary Design Scope of Services

31

Procurement Process

• Two Step RFQ/RFP Process

• RFQ Publically Advertised– Qualifications/Key Personnel (45 points)– Experience/Past Performance (35 points)– Capacity (20 points)

• Received Six Qualifications Statements

• Selection Committee Shortlisted Three Firms to Submit Proposals– AECOM– CDM Smith– McMillen Jacobs Associates

• Cost (20 points)

• Qualifications/Key Personnel (20 points)

• Technical Approach (20 points)

• Organization and Management Approach (20 points)

• Experience/Past Performance (15 points)

• MBE/WBE Participation (5 points)

32

RFP Evaluation Criteria

33

Cost Proposal Summary

Proposer Cost Hours

CDM Smith $15,692,527 58,301

McMillen Jacobs $16,993,155 67,995

AECOM $19,241,231 79,416

Staff Estimate $15,956,347 62,266

• CDM Smith – Prime Consultant

• Jacobs Engineering Group

• VHB

• Green International Affiliates

• CDW

• New England Boring Contractors

34

CDM Smith Proposed Team

35

CDM Smith Proposed Team

• Extensive and relevant experience in

– Evaluation of tunnel alignment alternatives

– Hydraulics and design of the MWRA water system

– Planning and design of deep rock tunnels

– MEPA documentation and compliance

36

Contract Schedule

• Completed Program-Wide Guidelines and Standards

– Program Quality Management Plan

– Program Risk Management Plan– Geotechnical Field Manual– Program Delineation Report– Existing Geotechnical Data Report

37

Update on Program Activities

• Ongoing Program-Wide Activities

– Expert Review Panel– Program Guide Specifications– Hydraulics– Program Budget and Schedule

Analysis– Project Controls– Geotechnical Data Management

Plan– Program Management Plan– Contract Practices