Asset Management Answering the 5 Core Questions
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1 Asset Management Answering the 5 Core Questions by Timothy Taber, PE Barton & Loguidice Page 1
2 Drivers Asset Management Case Study 1. What is the current state of my assets? 2. What is my required sustainable level of service? 3. Which assets are critical to sustained performance? 4. What are my minimum life cycle costs? 5. What is my best long-term funding strategy? Page 2
3 Asset Management 3 Page 3
4 What is the current state of my assets? What do I own? Where is it? What condition is it in? What is its remaining useful life? What is its remaining economic value? Page 4
5 What is the current state of my assets? Page 5
6 Page 6
7 Asset Type Estimated Useful Life Buildings 37.5 Charger 12.5 Computer Equipment / Software 5 Concrete & Metal Storage Tanks 45 Disinfection Equipment 10 Distribution Pipes 37.5 Door 37.5 Galleries and Tunnels 35 Hydrants 45 Hydropneumatic Tanks 10 Intake Structures 40 Lab / Monitoring Equipment 6 Land 300 Meters 12.5 Asset Type Estimated Useful Life Motor Controls / Drives 10 Pressure Pipework 60 Pumping Equipment 10 Security Equipment 7 Sensors 8.5 Service Lines 35 Sewers 100 Tools and Shop Equipment 12.5 Transformers / Switchgears / Wiring 20 Transmission Mains 37.5 Transportation Equipment 10 Treatment Equipment 12.5 Valves 30 Wells and Springs 30 Page 7
8 What is the current state of my assets? Page 8
9 What is the current state of my assets? Page 9
10 Which assets? What information? How used? Page 10
11 Page 11
12 What is my required level of service? What is the demand for my services by my stakeholders? What do regulators require? What is my actual performance? Page 12
13 13 Page 13
14 Copyright GHD 2010 Page 14
15 Employee health and safety" Competitive rates / taxes" Public image" Compliance with effluent discharge permits" Zero Injuries" Within 5% of New York State average" No adverse media reports" 100%" Page 15
16 ENVIRONMENTAL Key Performance Indicators 1. OCSD will comply with effluent quality standards. a. Compliance with all Ocean Discharge Permit Limits, % 100% b. Concentration of Emerging Chemical Constituents of Concern, Plant No. 1 Secondary Effluent c. Ef fluent total coliform bacteria after initial dilution, mpn <1,000 d. Source Control permitee compliance with permit conditions, percent 2. OCSD will manage flows reliably Target Level of Ser vice NDMA < 150 ppt 1,4 Dioxane <2ppb >90% a. Frequency of use of emergency - 1 mile outfall 0 per year during dry weath er < once per 3 years in peak wet weather b. Sanitary sewer spills per 100 miles < 2.1 c. Contain sanitary sewer spills within 5 hours 100% 3. OCSD s effluent will be recycled. a. Treated effluent reclaimed, % (flow) 4% (10 mgd) 4. OCSD will impleme nt a sustainable biosolids management program. a. National Biosolids Program Certification for Environmental Management System b. Percent of biosolids beneficial reuse Class "B" Class "A/EQ" 5. OCSD will improve the regional wa tershed. Maintain 100% 40% 60% a. Dry weather urban runoff collected and treated 4 mgd b. Rainfall induced inflow and infiltration, wet weather peak factor <2.2 c. Stormwater management, % of treatment process area runoff treated on - site 100% d. Per capital wastewater flo w rate, gallons per person per day < OCSD will protect the air environment. a. Odor complaints: Reclamation Plant No. 1 Treatment Plant No. 2 Collection System b. Air emissions health risk to: Community, cancer risk per 1 million Em ployees 5 4 <25 <25 c. Air mass emissions permit compliance, % 100% SOCIAL 2005 Target Level Key Performance Indicators of Service 1. OCSD will be a good neighbor and will be responsive to its customers. a. Off site Biosolids nuisance complaints 0 b. Odor complaint response Treatment Plants within 1 hour Collection System within 1 working day 100% 100% c. Restore collection service to customer within 8 hours 100% d. Respond to public complaints or inquiries regarding construction >90% projects within 1 working day e. Respond to collection system spills within 1 hour 100% f. New connection permits processed within one working day >90% g. Dig Alert response within 48 hours 100% 2. OCSD will provide public access to OCSD information. a. Public Records Act requests within 10 working days 100% b. Post Board/Committee Agenda Packages 72 hours prior to 100% meeting c. Post studies and reports on OCSD website within 1 week of 100% receive/file. 3. OCSD will take care of its people. a. Training h ours per employee 45 b. Employee Injury Incident Rate <3.75 ECONOMIC 2005 Target Level Key Performance Indicators of Service 1. OCSD will exercise sound financial management. a. New borrowing Not more than annual Capital Improvement Program requirem ents b. COP coverage ratio Between 1.25 and 2.0 c. COP service Principal and Interest < than O&M expenses d. Annual SFR user fee increase not more than 15% e. Annual user fees Sufficient to cover all O&M requirements f. Annual increase in collection, treatment, and disposal costs per < 10% million gallons g. Annual variance from adopted reserve policy <5% Page 16
17 Which assets are critical to sustained performance? How does it fail? How can it fail? What is the likelihood of failure? What does it cost to repair? What are the consequences of failure? Page 17
18 Scoring Criteria 2 - Insignificant 4 - Minor 6 - Moderate 8 - Major 10 - Catastrophic Page 18
19 Page 19
20 Page 20
21 Capacity Volume of demand exceeds design capacity Growth, system expansion Redesign Level of Service Functional requirements exceed design capacity Codes & permits: NPDES, CSOs, OSHA, noise, odor, life safety; service, etc. O&M optimization, renewal Mortality Consumption of asset reduces performance below acceptable level Physical deterioration due to age, usage (including operator error), acts of nature O&M optimization, renewal Financial Efficiency Operations costs exceed that of feasible alternatives Pay-back period Replace Page 21
22 Consequence Category" Health &Safety" 0.20" Consequence by LOS Category" Weight" Negligible = 1" Low = 4" Moderate = 7 " Severe = 10 " No injuries or" adverse health" effects" No lost-time" injuries or medical attention Lost-time injury or medical attention" Loss of life" Compliance with" Regulation " 0.20" 100% compliance" with permits" Technical" violation but no" enforcement action" Violation with" minor enforcement" action" Enforcement" action with fines" Financial Impact " 0.10" Absorbed within" budget line item" Absorbed within" current budget" May require" transfer from" reserves" May require new" borrowing or" im pact rates" Disruption to" the Community " 0.15" No social or" economic impact" Minor disruption" (e.g., traffic, dust, noise)" Short-term impact;" substantial" disruption" Long-term" impact; area-wide" disruption Service Delivery " 0.20" No overflows," backups, or odors No dry weather" overflows" or backups;" infrequent odors" Short duration dry weather overflows or backups;" occasional odor" Numerous overflows," backups; widespread or" persistent odors" Ability to Respond" and Continue" Service " 0.15" < 2 hours" 2 to < 8 hours" 8 to < 24 hours" > 24 hours" Page 22
23 Likelihood of Asset Failure by Category Likelihood Category Weight Negligible = 1 Unlikely = 2 Possible = 4 Likely = 7 Very Likely = 10 Physical Condition 0.60 Very good (Condition Grade I) Good (Condition Grade 2) Fair (Condition Grade 3) Poor (Condition Grade 4) Very poor (Condition Grade 5) Performance 0.20 Sufficient capacity to meet average and peak flow requirements; appropriate utilization and function Under-utilized or oversized, causing O&M issues Sufficient capacity but does not meet functional requirements or over-utilized Able to meet current average capacity demands but not peak demands Unable to meet current average capacity needs O&M Protocols 0.05 Complete,. upto-date written/ online, easily accessible Complete, written/online, up-to-date, but not easily accessible Written/online but not complete, not up-to-date, or not easily accessible Written/online but not complete, out-ofdate, or location is unknown None Reliability: Planned maintenance as a % of total maintenance 0.15 > 75% SO% to 75% 35% to 50% 25% to 35% < 25% Page 23
24 What are my best O&M and CIP investment strategies? What alternative management options exist? Which are the most feasible for my organization? Page 24
25 Determine Proactive Maintenance Strategy Test proactive maintenance Is failure predictable Consider run-tofailure with planned corrective failure response Based on condition? Cost effective? Is failure preventable Consider condition-based maintenance (CBM) Based on usage? Cost effective? Is failure preventable Consider usage-based maintenance (UBM) Page 25
26 Description 2 Year Belt Filter Press Inspection/Maintenance 2 Year Chemical Feed System Maintenance 2 Year Sump Pump Inspection/Maintenance 2 Year UV Disinfection System Maintenance 3 Year Aeration Blower Maintenance 5 Year Chemical Feed System Maintenance 5 Year Maintenance of Grit Classifier 5 Year Sump Pump Inspection/Maintenance 6 Month Anoxic Zone Mixer Maintenance/Inspection 6 Month Belt Filter Press Inspection/Maintenance 6 Month Gravity Belt Thickener Inspection/Maintenance 6 Month UV Disinfection System Inspection/Maintenance Aeration Tank No. 1 Gates - 6 Month Inspection / Maintenance Aeration Tank No. 2 Gates - 6 Month Inspection / Maintenance Aeration Tank No. 3 Gates - 6 Month Inspection / Maintenance Aeration Tank No. 4 Gates - 6 Month Inspection / Maintenance Annual Clarifier Drive Maintenance Annual Air Diffuser Inspection/Maintenance Page 26
27 What are my best O&M and CIP investment strategies? Page 27
28 Page 28
29 29 Page 29
30 Page 30
31 What is my best long-term funding strategy? Page 31
32 What is my best long-term funding strategy? Page 32
33 Page 33
34 Rates ($Annual) /02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 Year 34 Page 34
35 An Asset Management Program Is All About Knowledge Management Wisdom Knowledge Information Data 35 Page 35
36 Timothy Taber, P.E., BCEE " Page 36
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