AWWA ACE65217

In 2005, the Honolulu Board of Water Supply conducted a study of system needs and anticipated capital spending over a 20-year horizon, from 2006 through 2025. In the course of this study, the Board identified a range of capital investment needs in the categories of water source, transmission, and storage projects. In addition, investment needs were identified for the ongoing rehabilitation and replacement of the Board's existing system. With these spending needs defined, the Board developed a Capital Plan that prioritized projects for implementation over an initial 6-year planning horizon (calendar year 2006-2011) and a 20-year planning horizon (2006-2025). The 6-year Capital Plan calls for implementation of projects with a total cost of approximately $264 million (in 2006 dollars). Spending on these projects during the 6-year period is anticipated to total approximately $214 million (in 2006 dollars). These required investments will affect the costs of continued utility system operation and service. To manage these costs, the Board concurrently developed a Strategic Financial Plan that outlines financial and rate-making strategies for a 10-year planning horizon extending from 2006 through 2015. For the Board's capital planning purposes, it was necessary to divide Oahu into distinct areas that are served by integrated components of the Board's water system. For each of these Capital Plan Districts, the Board developed a Capital Plan that ties together population and water demand projections, resource plans, capital projects, and level-of-service standards. These Capital Plans identify future needs for each district in terms of source, storage, transmission, waterline replacement and system improvements. The paper discusses seven steps in the capital planning process that include: Step 1, Input to the Capital Planning Process; Step 2, Needs Assessment; Step 3, Project Definition; Step 4, Project Prioritization; Step 5, Financial Impacts Analysis; Step 6, Capital Plan Alternatives; and, Step 7, Financial and Rate Planning. Includes tables, figures, appendix.