Brightwater cost estimates - on-target and within budget
Oct. 19, 2009*
The Wastewater Treatment Division would like to provide clarification to the Sightline Institute’s report that references Brightwater project costs.
The Brightwater project is not over budget by 24 percent as stated in the Sightline report. According to the updated 2009 Brightwater Cost Trend report that was released to the King County Council, Brightwater costs are currently estimated between $1.799 billion and $1.84 billion, which is consistent with the estimates prepared by R.W. Beck, the independent oversight monitoring consultant that reports to the King County Council. The current cost trend is consistent with the baseline of $1.48 billion plus 5 percent inflation (close to the rate of construction inflation seen during this period).
The Brightwater baseline budget of $1.48 billion was established in 2004 when the project was at 30 percent design.
When inflation is taken into account, the Brightwater project is less than 1 percent (0.6%) over the 2004 estimate.
While there have been some delays on the two central tunnels because of repair work currently under way on two tunnel boring machines, the cost impacts of these delays are unclear at this time.
However, construction of the other two Brightwater tunnels is progressing very well in terms of schedule and budget.
Tunneling was completed on the 2.7-mile Brightwater East Tunnel in November 2008 and construction is 90 percent completed. The four-mile-long West Tunnel from Point Wells to Ballinger Way in Shoreline is nearly 73 percent completed. Both of these projects are continuing to carry a significant amount of unused budgeted construction contingency of $9 million and $7.5 million respectively.
The project has also met other significant milestones. The Brightwater Marine Outfall was completed in late 2008, a year ahead of schedule at a cost of $29 million, 23 percent less than the original estimate of $38 million.
The project has been recognized with several local, national and international engineering awards.
Additionally, the Wastewater Treatment Division continues to be recognized as a financially responsible, well-managed agency. Moody’s and Standard & Poor’s recently affirmed the agency’s favorable credit ratings, which will reduce its costs to finance its capital improvement program.
Standard & Poor’s assigned a AA+ rating to the utility’s sewer revenue bonds, citing financial performance that exceeds policy targets, a consistent track record of progress on its major capital plan, and a commitment to strong management practices.
Moody’s Aa3 rating was based on the utility’s continued positive financial results and a well-managed system.
Finally, it is important to point out the level of oversight that exists for the Brightwater project. The Brightwater project quarterly oversight reports are prepared by independent monitoring consultant R.W. Beck to comply with the County Council's goal of strengthening the Brightwater Project's performance and accountability. The reports are presented to the King County Council Government Accountability and Oversight Committee.
The most recent oversight reports are available on the Web at http://www.kingcounty.gov/operations/auditor/Reports/Year/2009.aspx.
Contact us if you need more information about Brightwater.
King County Brightwater Project
22505 State Route 9
Woodinville, WA 98072
E-mail: Brightwater
Phone: 206-263-9453
TTY Relay: 711
