Stormwater Asset Management. Presented to SESWA By Ricardo Campos January 23, 2013
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1 Stormwater Asset Management Presented to SESWA By Ricardo Campos January 23, 2013
2 Agenda I. What is Asset Management? II. Why Asset Management for Stormwater Systems? III. How to Implement a Stormwater Asset Management Approach 2
3 I. What is Asset Management?
4 Asset Management is a process of maintaining and managing assets once they are acquired or built. 4
5 Overall Goal: Manage assets to get the most value, while providing the expected level of service to users/customers. Asset Management is a way of doing business. 5
6 Example: Your Car Acquire, Maintain, Repair, and Replace Acquisition Refurbish Refurbish Maintenance Disposal 6
7 Best Practice Approach to Asset Management AM Programs involve plans, technology, AM Program and people.
8 Asset Management Levels All Utilities manage their assets; they are Basic Intermediate just at different levels of complexity. Complex 8
9 Asset Management Saves $$ 5% Cost of Service Per Customer 0% -5% -10% -15% -20% -25% -30% Effective Asset Management programs average 20-39% savings in O&M costs. -35% -40%
10 Asset Management Saves $$ by Optimizing asset life Focusing maintenance efforts on most critical assets Achieving workflow and efficiencies Improving decision-making Optimizing data management Promoting strategic preventative maintenance 10
11 II. Why Asset Management for Stormwater Systems?
12 Stormwater Asset Management Issues Aging infrastructure NPDES / TMDL compliance Expectation Management Reporting Overdeveloped Watersheds Inadequate Funding
13 Asset Funding Issues Assets are approaching the end of their useful life. New assets are needed to control risk. New assets are needed support growth and development. Challenging economy. Low rates.
14 Even though there are issues facing Stormwater managers We have also been getting smarter.
15 Getting Smarter By: Prioritizing maintenance and repairs to meet Level of Service goals. Example LOS Goals: 1. Inspect 20% of stormwater infrastructure/year. 2. Respond to Customer Requests within 2 hours
16 Getting Smarter By: Determining what it actually costs to meet expectations.
17 Getting Smarter By: Thinking in terms of Risk
18 Getting Smarter By: Using Data to inform decision-making and track progress towards LOS goals.
19 Expanding Use of Data Management Technologies Customer Information Systems (CIS) Computerized Maintenance Management Systems (CMMS) GIS Business Intelligence Systems Hydraulic Models
20 Getting Smarter By: Developing an Asset Management Culture Education Training Assessing workflows Developing succession planning.
21 How to Implement a Stormwater Asset Management Approach Where do we Start?
22 Asset Management Progression What do we own and where is it? How should we maintain it? What condition is it in? What is the failure mode? What is the likelihood of failure? What is the consequence of failure? Basic Advanced Given the likelihood and consequence of failure, how do we manage our assets to sustain service at lowest cost?
23 Vision and Objectives To develop an effective asset management organization that reduces life cycle cost and impacts of asset ownership and enhances customer service Enhance decision making Unified vision and direction Manage risks Focus on critical equipment Equipment reliability Leverage technology
24 Developing Strategic Asset Management Plans (SAMPs) by asset type can better define future needs and justify needed funding. Brown and Caldwell 24
25 SAMPs typically include: 1. Strategic Goals (levels of service) 2. Key Performance Indicators 3. Description of Assets 4. Maintenance activities & strategies 5. Asset Rehab/Replacement needs 6. Funding Strategy 7. Data Management Tools 8. Standard Workflows 9. Action Items for Continuous Improvement
26 Levels of Service and Performance Measures Level of Service Key Performance Indicator Assigned To Effectively Maintain Assets Miles of pipe cleaned Andy Effectively Maintain Assets Planned Maintenance Ratio (%, hours) Bob Sustain Integrity of Stormwater System Structure failures per 100 miles of pipe James Improve Employee Core Competencies Training Hours per Employee Susan
27 Levels of Service and Performance Measures
28 Asset Inventory is the Foundation of an Effective Asset Management Program What Do You Own? How Are Your Assets Performing? How Long Will Your Assets Last? How Much Will Your Assets Cost to Replace? 28
29 Asset Inventory Gaps & Improvements Pipe Install Date Pipe Materials 60% 40% 20% 0% Aluminized Steel Concrete Corrugated Metal Pipe Plastic Unknown
30 Asset Data Management Plan Level of Detail What will the data be used for? Extent of pipe network Condition data Nameplate data Practicality Cost Data processing / management Data collection
31 Rehab/Replacement Strategy: Credible R/R Funding Estimates Built from Asset Inventory Asset inventory Years in service Condition Rating Replacement costs Useful lives Refurbishment programs Annual contributions Earnings rate Inflation rate RPM R/R costs by year Fund balances
32 R/R Strategy: Long-term Funding Needs & Replacement Value 25 Refurbishments Replacements Total System R&R Needs Year 2012 dollars, Millions
33 R/R Strategy: Long-term Funding Needs & Replacement Value Undepreciated Replacement Cost 700 Year 2012 dollars, Millions Total Value Over $1 Billion $487 M $580 M $175 M 100 $52 M 0 Stormwater System Pump Stations Collection System Distribution System
34 Prioritizing Capital Investments and Maintenance activities Asset investments and O&M activities should be prioritized based on criticality and to meet expected levels of service. 34
35 High Risk Pipe Example 60 aluminized steel pipe Installed in 1972 Corrosive soils Near impaired stream
36 Risk Prioritization of Asset Investments Low Risk Medium High Very High Risk
37 Risk Prioritization of Asset O&M Low Risk Medium Re-inspection Frequency, yrs 10 5 R&R Action None None High Very High Risk Repair or replace w/in 3yrs Prompt Repair
38 CIP Development Policies & Process
39 Coordinated CIP Process and Schedule Activity Schedule Responsible Party Compile list of projects/issues (criticality) November & December Division Managers Fill out Standard CIP Project Forms for each project November & December Division Managers Compile and review submitted forms January Finance Develop candidate PU Project List January Finance Use Prioritization Criteria to Rank Projects February CIP Team Business Case Evaluation for select issues/projects February & March BCE Team specific to project/issue Run RPM to determine funding levels February Asset Manager Opinion of probable cost February Engineering/Division Mgrs. Fill out Capital Project Budget Request Form for selected projects February Division Managers Develop Funding Plan February Finance Coordination with other Departments March Engineering & Director Develop Final Prioritized 5-Year CIP March CIP Team Final 5-Year CIP Submittal April Director 39
40 CIP Project Request Form
41 CIP Prioritization Criteria
42 Watershed Stormwater Sewer Collections Reclamation Facility Water Distribution Water Treatment Plant Master Plan Projects Asset Management builds the business case for Stormwater projects to receive the attention they deserve. 42
43 Stormwater Asset Management Ricardo Campos
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