Southeast Michigan Council of Governments

1. Southeast Michigan Council of Governments

2. Review of our path • Description of the problem • Components of the solution • Action steps

3. Conceptual Framework

4. Today's agenda • More on Energy • Water and Sewer • Level of service/cost example • Check on where we are and next steps

6. Case Study: Cost of different “levels of service”

7. Rouge River Combined Sewer Overflow Tunnel Original Design 200 million gallon storage tunnel Capital cost over 1 billion Expected performance: reduce overflows to 1 per year

8. Proposed Redesign Shorter, skinnier tunnel Extend schedule Incorporate Green Infrastructure Disconnections to reflect changes => Right sizing the infrastructure

9. Comparative Performance

10. Comparative Performance

11. Water Quality Compliance for Dissolved Oxygen <5 mg/l 91 hours/year 1.89% of time <5 mg/l 88 hours/year 1.82% of time New URT-2 Original URT >5 mg/l 4747 hours/year 98.11% of time >5 mg/l 4750 hours/year 98.18% of time

12. Comparison of Simulated In-Stream Bacteria Levels <200 #/100 ml 42 hours/year 0.87% of time <200 #/100 ml 42 hours/year 0.87% of time Original URT New URT-2 >200 #/100 ml 4796 hours/year 99.13% of time >200 #/100 ml 4796 hours/year 99.13% of time

13. Comparison of CSO Program Results2008 Original URT & 2009 Proposed URT

14. Back to Some Big Picture QuestionsNow We Have Some Answers

15. Big Picture Questions & Answers • How much could be saved if we changed the expected performance? About $500 million capital About $160 million per year

16. Big Picture Questions & Answers • Would the different environmental impact be significant? What’s the right yardstick?

17. Big Picture Questions & Answers • Who decides? Good question

18. Big Picture Questions & Answers • What is (should be) the basis of the decision? Another good question Should be multiple factors

19. Sidebar observation:What you see depends on where you look

20. Big Picture Questions & Answers • How will this decision affect funding available for other infrastructure needs? Significantly

21. Big Picture Questions & Answers • Should that matter? Yes

22. Big Picture Questions & Answers • Can we be more efficient and cost effective without more collaboration? No

23. Big Picture Questions & Answers • Can we be more efficient and cost effective w/o putting expectations of service on the table? No

25. Recap of where we are

26. Conceptual Framework

27. Conceptual Framework

28. Conceptual Framework

29. Conceptual Framework

30. Conceptual Framework

31. Conceptual Framework

32. Conceptual Framework

33. Conceptual Framework

34. Conceptual Framework

35. Conceptual Framework

36. Conceptual Framework

37. Conceptual Framework

38. Conceptual Framework

39. Conceptual Framework

40. Conceptual Framework

41. Conceptual Framework

42. Conceptual Framework

43. Description of the Problem…Thus Far

44. Description of the ProblemSummary • Rate/revenue base is declining • Inadequate revenue to maintain what we have • Underinvestment is an increased cost, not a savings • Outdated revenue formulas • We have more than we need, so right size

45. Description of the ProblemSummary continued… • Fiscal resources constrained…not temporary • Region’s fiscal capacity is declining • Needs and expectations drive costs

46. Are we missing anything?

47. Components of the Solution

48. Components of the Solution Restructured revenue collection systems Others: TBD Strategically invest funds to maximize all infrastructure performance Holistic view of needs and outcomes Cost of different levels of service Collaboration amongst providers

49. Components of the Solution Cost of different levels of service

50. Components of the SolutionCost of different levels of service Possible actions • Investigate changes to public expectations • Explore alternative approaches for meeting regulations • Examine costs of alternatives