Transcript Document

Integrated Project Delivery:
Built to Last
CMAA Water Summit
July 20, 2010
James A. Parrott
Executive Director
MSDGC Background
• Population Served
– 850,000 in Hamilton
County, Ohio
– 220,000
connections
• Double Governance
– Hamilton County
Sewer District
– Operated by City of
Cincinnati
MSDGC Challenges
• Aging Infrastructure
– About 50% combined sewers
– Some 150 years old
• Multi-Billion $Consent Order
– Plan submitted in 2006
– Conditional approval in 2009
• Phase 1 = $1.2B by 2019
• Stagnant/Failing Local and National
economy
– Unprecedented local layoffs
(especially in government)
– Affordability issues with residents
Key Facts
• MSD is among the top 5 CSO
dischargers in the US
• MSD must submit a plan to USEPA by
December 2012 for the Lower Mill Creek
Remedy (location of our largest CSO)
• MSD has until 2017 to submit Phase II
Schedule
MSD’s Environmental Challenge
Must control
by 85%
How to Build a Consent Order
Wet Weather Strategy
Strategy
Flexibility
Affordability
Source Control
Conveyance & Storage
Product Control
Phased Approach
Phase 1: 2009 – 2019
Phase 2: Schedule to be submitted by 2017
Controlled Spending
Phase 1: $1.145B
Credit for $300M of projects already built
Phase 2: To Be Determined
Clock is Ticking
2017
2009
2011
MSD received
conditional approval of
the Wet Weather Plan
after three years of
negotiations
Evaluate alternatives
to achieve overflow
reductions of 2BG
2009
2010
2011
2012
Submit Plan for
Phase 2 including
schedule and costs
2017
2018
2010
2012
2018
Final legal action
anticipated
MSD will integrate
results to arrive at a
recommended plan
to submit to USEPA
MSD must achieve 2
BG overflow
reduction in Lower
Mill Creek
$200.0
$1,800.0
$180.0
$1,600.0
$160.0
$1,400.0
$140.0
$1,200.0
$120.0
$1,000.0
$100.0
$800.0
$80.0
$600.0
$60.0
$40.0
$400.0
$20.0
$200.0
$-
$2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Years
Total Cost (M$)
Annual Cost (M$)
Phase 1 Costs (2006$)
Annual
Total
WWIP Phases & Workload
250
D evelo p m en t P h a se
P eak P ro d u ctio n P h as e
C o n stru ctio n
D esig n
P lan n in g
200
N u m b e r o f P ro je c ts
M o b ilizatio n
P erio d
150
WWIP Phase I
100
R am p D o w n P h ase
70 Completed
45 New Projects
8 Annual Allowances
WWIP Phase II
Total167 Projects
Schedule will be negotiated
50
0
2007 2008 20 0 9 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Wet Weather Strategy Determines Capital Portfolio
Other
5%
Source Control
0%
Product Control
35%
Conveyance &
Storage
60%
WWIP as Currently Approved
MSD Wet Weather Strategy
Determines the Project Portfolio
• Source Control
– Removal of natural drainage from
entering the system
– Regional BMPs, Separate storm
sewer installation
• Conveyance & Storage
– Tunnels, parallel interceptors, storage
facilities
– Real-Time control
• Product Control
– EHRT and peak flow enhancements
to existing WWTP’s
MSD Wet Weather Strategy
Implementation
Hydraulic Grade Line
How We Got Started
• Three phased PMC
– GAP Analysis
• Highlighted project risks, resource and
process needs
– Developing Process to Bridge the GAP
• Master Program Management Plan
– Implementation Plan and Monitor Progress
MSD Organization in 2006
County
Program Mgt
Director
Deputy Director
Administration
Treatment
Engineering
City
Chief Engineer
Wet Weather
Strategy
Collections
Laboratory &
Industrial
Program
IT
Engineering Division
Program Mgt
Superintendent
Administration
Planning
Project
Management:
Design
Project
Management:
Construction
Public Services
Conventional “Cradle to Grave” Project Management
Program Management and Monitoring operates in own silo
What We Know Now
That We Didn’t Know Then…
• Organizational structure change
inevitable
– What we did…. Tried to make
incremental change
– What we should have done…. Slash
and Burn
– Staff must:
o Have sense of urgency
o Be open to change
o Obtain new skill sets
o Or GET OUT OF THE WAY!
How We Needed to Change
• MSD Manages Integrated Program
– External Monitoring
– Incentive based embedded staff
• Business Case Evaluations
– Project selection by Triple Bottom Line
analysis
• Separated Planning from
Design/Construction
– Where the rubber hits the road
– Allows priority focus for Project Delivery
MSD Organization in 2010
Director
Deputy
Director
Chief
Engineer
Stormwater
Management
Admin
Treatment
Engineering:
Project
Delivery
Engineering:
Planning &
Development
Collections
Laboratory &
Industrial
Program
IT
Wet Weather
Strategy
Capital Programs
Management
Financial
Planning &
Analysis
Engineering:
Project Delivery
MSD
Executive
Leadership
Engineering:
Planning &
Development
Environmental
Programs
Wet Weather
Strategy
Enterprise
Management
Project
Controls
Design &
Construction
Management
Quality
Assurance
Cross-Functional Responsibility and Imbedded
Program Management Support with External Monitors
Environmental Programs
EP Manager
Sustainable
Project
Construction
Delivery
Sustainable
Watershed
Planner
Demonstration
Programs
Concentration on Sustainable Watershed Management
Current WWIP Profile
Product
Control
35%
Other
5%
Source
Control
0%
Other
5%
Product
Control
25%
Conveyance
& Storage
60%
Source
Control
35%
Conveyance
& Storage
35%
Potential
Sustainable
Approach
Other Lessons Learned
• Financial System Inadequate
– Multiple systems needed to be integrated
– Need analysis and decision support tools
• Let Risk Management Drive Decisions
– Justify projects and alternative selection
inside a risk framework
– Strengthen Asset Management principles
• Communication
– Internal and external tools necessary
MSD Risk Management
• Comprehensive
process
integrating all
enterprise risks
–
–
–
–
Corporate
Asset
Operational
Project
Implementation
• Process driven by
MSD Financial
Policies
– Owned by
Finance Manager
Other Lessons Learned
• Let Risk Management Drive Decisions
– Justify projects and alternative selection
inside a risk framework
– Strengthen Asset Management principles
• Financial System Inadequate
– Multiple systems needed to be integrated
– Need analysis and decision support tools
• Communication
– Internal and external tools necessary
Sharing the Vision
Technology Drivers
Where We Are
Tactical
• Activity-Based
• Document
Management
• Construction
Coordination
Where We Are Going
Strategic
• Integrated Management
• Workflow Integration
through Document Control
• Watershed Management
Required Systems
•
•
•
•
•
Fully functional DMZ
Scheduling tool
Integrated financial management system
Forecasting and Earned Value tools
Asset management system
Built to Last Formula
1. Consent Order with Flexibility
2. Wet Weather Strategy that leverages infrastructure investments to
create factor conditions that support community
development/urban infill
3. Organization Structure that support integrated project
management
4. Renewed focus on environmental programs that support the wet
weather strategy
5. Financial and Risk Practices linked with strategic organizational
performance
Sustainable Organization – Financially and operationally stable
Sustainable Infrastructure – Does not create future liabilities
Sustainable Community – Maximizes benefits for all residents
Value Creation
Leveraging MSD Investments
Questions?
James A. “Tony” Parrott
513-244-1212
[email protected]