RECOMMENDATION DISCUSSION:

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1 AGENDA ITEM I1 DATE: June 2, 2014 TO: Matt Jordan, General Manager FROM: Alison Adams, Chief Technical Officer SUBJECT: Comprehensive Asset Management Program - Status Report and Presentation SUMMARY: A comprehensive asset management program is key to maintaining a reliable water supply and delivery system. A status of all program activities underway is provided in this item. RECOMMENDATION: Receive status report and Presentation DISCUSSION: Asset management is the systematic integration of sustainable management techniques into a management paradigm that are applied to the entire portfolio of assets at all levels of the agency. In October 2013, staff retained the services of CH2M Hill, Inc. to develop the Asset Management Assessment Report and Implementation Plan and to continue assisting staff in developing maintenance strategies that would be required prior to implementing a new computerized maintenance management system. The Asset Management Assessment Report and Implementation Plan were completed in April 2014 (see attachment). These products detail a five year formal approach to asset management through integrating and enhancing existing data, systems, business processes, and practices into a comprehensive asset management program. The Implementation Plan charts a set of 17 projects beginning January 2014 through December 2018; the majority of costs occur within the first two years of implementation. The current estimated total funding to complete the Asset Management Assessment Report and to implement the Plan is $2,298,27. The FY 2014 budget included $0,000 for procurement of a new computerized maintenance management system (CMMS) software package and professional services for integration of this new software program. The Board approved the use of rate stabilization funds from FY 2013 to provide additional funding in FY 2014 of $300,000 to develop the Assessment Management Program and assist staff in implementing the initial phase of the program. Staff shifted internal priorities to allocate $194,97 of existing FY 2014 funds to support development of maintenance strategies and deployment of new CMMS. Staff will be allocating an additional $127,000 of FY 2014 funds to support implementation of several of the asset management program projects. This results in an estimated total cost for FY 2014 of $1,171,97. This cost includes software purchase, professional services to integrate the new software, and professional services to support staff in the initial steps of Asset Management Implementation Plan. Staff has included an additional $619,00 of funding for this program in the proposed FY 201 budget, for a total two year projected cost of $1,791,007.

2 Matt Jordan June 2, 2014 Page 2 An incremental approach is being used to address completion of the 17 projects with the intent to involve and train staff during the earlier project implementation steps and then transition the work away from consultant services to staff. The completion of the implementation plan is dependent upon staff availability and budget. Staff and consultants will further refine expected implementation costs as the Phase I Maximo implementation reaches the go-live stage in November Asset Management Plan Development In October 2013, staff retained the services of CH2M Hill, Inc. under contract , to assist in the development of an Asset Management Program and support first phase program activities. The scope of services includes three tasks which are program development, first phase program implementation, and support for asset management teams. The Plan was completed in April 2014 and implementation has begun with the formation of cross functional teams. Implementation Phase The Implementation Phase includes development of cross functional teams to complete the 17 projects identified in the Implementation Plan of the Asset Management Assessment Report. Three projects were initiated prior to completion of the Asset Management Assessment Report. These include project 2, (Asset Hierarchy), project 3 (CMMS implementation), and project (maintenance strategies). In October 2013 a second task order was issued to CH2M Hill under contract to assist staff in the procurement of Maximo integration services and to further develop maintenance business practices required to fully implement Maximo. This task order is on schedule and budget. Included in the implementation plan is the purchase and integration of Maximo, the agency s new computerized maintenance management software system. At the December 2013 Board of Directors meeting, the Board approved procurement of Maximo as the agency s new Computerized Maintenance Management System software. At the April 2014 Board of Directors meeting, the Board approved contract with EDI, Inc. to implement and integrate Maximo into the agency s information technology system and work processes. Phase I Maximo implementation is scheduled for completion in November Completion of this Phase I integration project, which also includes completion of the agency s asset hierarchy, development of maintenance business practices and job plans and integration of Maximo with the agency s enterprise data base, GIS, and Munis financial system, is the highest priority in the Asset Management Implementation plan. Table 1 summarizes the current estimate for fiscal year 2014 and the proposed and projected expenditures for fiscal years 201 and Table 2 summarizes the teams, projects and implementation start year. BACKGROUND: Since Tampa Bay Water s inception in 1998, its infrastructure has increased dramatically. In April 2011, the Board adopted the 2011 Strategic Plan. In support of the Board s mission to provide water now and for future generations, the vision to be a

3 Matt Jordan June 2, 2014 Page 3 leader in innovation and best practices, the value to strive for continuous improvement in everything we do, the goal to achieve a reliable water supply and delivery system, and the strategy to implement a framework for long term regional system reliability, Tampa Bay Water staff are implementing a comprehensive asset management program, similar to several of our member governments, in accordance with the water utility industry best practices. Asset Management is maintaining a desired level of service at the lowest life cycle cost with limited resources and at an acceptable level of risk. Lowest life cycle cost determines the best appropriate cost for rehabilitating, repairing or replacing an asset. Asset management is implemented through as Asset Management Program which includes a written Asset Management Plan. Implementation of a comprehensive Asset Management Program is the foundation for long-term water supply planning. Attachment available on CD

4 Matt Jordan June 2, 2014 Page 4 Table 1. Asset Management Program Asset Management 2014 Current Program Element Budget Estimate 201 Proposed Budget 2016 Projected Budget Total Plan Development $139,000 $139,000 Maximo Purchase $169,97 $4,000 $0,000 $264,97 & Maint. Maximo Phase I Integration Services $39,000 $14,00 $49,00 Implementation $468,000 $30,000 $37,20 $1,17,20 Plan Services Maximo Phase II $70,000 $100,000 $170,000 Total $1,171,97 $619,00 $07,20 $2,298,27 Note: FY 2016 Projected Budget is subject to further refinement following completion of Phase I Maximo integration activities, progress on implementation plan projects, and staff availability.

5 Matt Jordan June 2, 2014 Page Table 2. AM Implementation Plan Teams, Projects and Implementation Start Year Cross Functional Teams Projects Implementation Fiscal Year Asset Management Advisory Team Asset Management Program Review (Project 1) and Plan Development 2014 Asset Hierarchy Team Asset Registry and Inventory (Project 2) 2014 CMMS Implementation Phase I Maximo Implementation / EDI contract (Project 3) 2014 Phases 2/3 Maximo Implementation (Project 4) 201 Maintenance Workflows and SOPs (Project ) 2014 Maintenance Strategies Maintenance Strategies, FEMA, and PMs (project 6) 2014 Condition Assessment Process for Renewal and Condition Assessment Replacement (project 7) 201 Condition Assessment Process for Renewal and Replacement (project 8) 2016 Maintenance Strategies Implement Maintenance Strategies (project 9) 201 Development of LOS (project 10) 2014 Level of Service/Risk Risk Model development and implementation (project 11) 201 Continuous Improvement Continuous Improvement/Performance Measures (project 12) 2014 Financial Forecasting Review of Financial Forecasting tools, review of Renewal and Replacement model, CMMS data extraction for R/R model (project 13 & 14) 201 Development training programs related to asset management (project 1) 201 Organizational, Cultural and Development Incorporate Asset Management into Agency Strategic Plan and Update Strategic Plan (project 16) 2014 Develop internal communication strategies specific to asset management program (project 17) 201

6 Final Report Asset Management Assessment Report and Implementation Plan Prepared for Tampa Bay Water April Highwoods Blvd Suite 214 Raleigh, NC P: (919) F: (919)

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8 Executive Summary Having gone through nearly a decade of new capital project construction, Tampa Bay Water (Agency) is now concentrating on optimizing existing supplies and facilities, and there is a desire to focus more on enhancement of core operations. The transition from large scale construction activities to a focus on renewal and replacement (R&R) is allowing the Agency to consider ways to become more efficient and effective. Tampa Bay Water has formalized the implementation of its Asset Management (AM) Program. CH2M HILL was retained to develop the Asset Management Implementation Plan. Asset Management is an integrated set of processes to minimize the life cycle costs of infrastructure, at an acceptable level of risk, while continuously delivering established levels of service (CH2M HILL, 2002). It involves simultaneously improving the combined effectiveness and efficiency of an organization s assets its physical assets, its financial assets, its information assets, and its human assets. While AM principles can be applied to any dimension of the Agency, comprehensive AM recognizes the synergies created from looking at the Agency holistically across all business units. Tampa Bay Water is a sophisticated organization that invests heavily in advanced management and decision support practices. This assessment identified a number of discrete activities that are needed to improve the current asset management practices to a level commensurate with the Agency s industry leading status. At the same time, the assessment recognized the relative size of the Agency and its local operating environment to assure that the proposed activities were both relevant and scaled to the Agency s specific needs. Implementation of a new computerized maintenance management system (CMMS), IBM Maximo, is beginning in April It is a foundational change that is key to developing an effective AM Program at this point in time for Tampa Bay Water. Three broad categories of needed activity were determined: Improvements to the Operations & Maintenance (O&M) data collection, management, business processes, and reporting system. - This includes the implementation of asset inventory, asset hierarchy (functional structure able to rollup or roll down to levels that meet the needs of a variety of users), data modification and input of new data, work order tracking, closure and predictive use, and management reporting using Maximo. Enhancement of CMMS use is anticipated to provide the single greatest impact on improving operational efficiencies. Improvements to asset management practices. - This category includes such activities as level of service, risk analysis, review of maintenance strategies, use of O&M failure codes, condition assessment and use of predictive tools for the renewal and replacement of assets. The Agency has a high degree of focus on reliability and, at a planning and management level, understands and values the balance and tradeoffs that are needed among the effects of life cycle costs and risk on system reliability. Improvement in O&M data will support true lifecycle cost analysis decisions. Improvements to performance communication and change management processes - This category includes the communication of priorities and performance to allow for transparency and to assist in building a team based approach across the organization. Establishing clear, quantifiable, documented performance targets with a clear line of sight to the organization s Strategic Plan allows staff to track and measure successes, as well as providing guidance for where improvement is needed, and avoiding confusion about job priorities and goals. I

9 EXECUTIVE SUMMARY, CONTINUED The implementation framework developed for Tampa Bay Water includes a list of tasks, timelines, critical path, responsible parties, and budget estimates. The ultimate goal of implementing an AM Program is to augment existing business processes to allow the Agency to make informed decisions about maintaining its assets. An effective and sustainable program can provide improved financial modeling, accurate O&M cost predictions, and decision making tools for balancing R&R; this program must be embraced organization wide and adopted as part of the culture and may take years to reach maturity and yield maximum benefit. II

10 Contents Section Page Executive Summary... i Acronyms and Abbreviations... v 1 Organizational Context Agency History Strategic Plan Goal 1 Reliability Goal 2 Efficiency Goal 3 Financial Stability and Sustainability Goal 4 Relationships with Stakeholders Existing Practices Governance Documents Strategic Plan Financial Long Term Demand Forecasting Model System Hydraulic Analysis Update Project Long Term Master Water Plan (December 2013) Optimized Regional Operations Plan Well Mitigation Program CIP Prioritization Renewal and Replacement Program Safety Policy and Procedures Manual Security Policy and Procedures Manual Energy Management Program Management and Performance Audit Customer Survey Maintenance Strategies Evaluation CMMS Evaluation Data Management and Information Technology (IT) Systems Project Overview Background Project Approach & Findings Methodology and Approach Evaluation of Current Practices Data Review Benchmarking with Similar Organizations Mission, Vision, and Values Workshop Data Management and Storage Maximo Integration with Existing Systems Safety Program Asset Management Practices Evaluation Preparatory Agency Staff Interviews Gap Analysis Workshop Most Important Assets ( Dot ) Exercise Data Analysis and Briefing Primary Assessment Observations & Conclusions III

11 TABLE OF CONTENTS 4.1 Organization Strengths Opportunities for Improvement Asset Management Implementation Focus Areas & Recommendations Computerized Maintenance Management System The Value of a CMMS CMMS Recommendations Maintenance Strategies Maintenance Strategies Recommendations Additional Comments on Condition Assessment....3 Level of Service and Risk Level of Service (LR 1) Risk (LR 2) Continuous Improvement Continuous Improvement/Performance Measurement (CI 1) Financial Forecasting Financial Forecasting Recommendations Organizational and Cultural Development Organizational and Cultural Development Recommendations Timing, Urgency, and Priorities Assessment Report and Implementation Plan Draft Asset Management Assessment Report Project Chartering and Implementation Roll Out References Appendices Appendix A: Gap Analysis Detail Appendix B: Most Important Assets Exercise Appendix C: Project Descriptions Appendix D: Preliminary Schedule Appendix E: Link to 2010 Management and Performance Audit Exhibits Exhibit 1: Summary of Tampa Bay Water s System Exhibit 2: Tampa Bay Water Regional Water Supply and Delivery System Exhibit 3: Potential System Interfaces/Integrations with Maximo Exhibit 4: Examples of Gap Assessment Scoring Result Examples Exhibit : Differing Sample Scoring Histograms and Importance Intensity Scale by Subgroup Exhibit 6: Similar Sample Scoring Histograms and Importance Intensity Scale by Subgroup Exhibit 7: Box & Whisker Diagram of All Gap Survey Responses Exhibit 8: Implementation Funding Summary Exhibit 9: Maintenance Strategies vs. Cost Exhibit 10: Practice Area 8c IV

12 Acronyms and Abbreviations Agency AM AMWA AUTHORITY BUDW CIP CMMS DSS EMMS EMS FMEA FTE GIS GNP HR ILA ISO IT KDR KPI LIMS LOS LTDFS MCDA mgd NACWA O&M OROP OSHA PM psig QA/QC RCM RPM R&R Tampa Bay Water Asset Management Association of Metropolitan Water Agencies West Coast Regional Water Supply Authority Brandon Urban Dispersed Wells Capital Improvement Program Computerized Maintenance Management System Decision Support System Enterprise Maintenance Management System Environmental Management System Failure Modes and Effects Analysis full time equivalent geographic information system Good Neighbor Policy Human Resources Interlocal Agreement International Organization for Standardization Information Technology Kerr & Downs Research key performance indicator Laboratory Information Management System level of service long term demand forecasting system multi criteria decision analysis million gallons per day National Association of Clean Water Agencies Operations and Maintenance Optimized Regional Operations Plan Occupational Safety and Health Administration preventative maintenance pounds per square inch gauge quality assurance/quality control Reliability Centered Maintenance Replacement Planning Model Renewal and Replacement V

13 ACRONYMS AND ABBREVIATIONS SCADA SOP SWFWMD Team WEF WUP Supervisory Control and Data Acquisition Standard Operating Procedure Southwest Florida Water Management District Asset Management Advisory Team Water Environment Foundation Water Use Permit

14 SECTION 1 Organizational Context 1.1 Agency History Tampa Bay Water (the Agency) was created by an Interlocal Agreement in 1998 to supply wholesale water to its six member governments: Hillsborough County, Pasco County, Pinellas County, and the cities of New Port Richey, St. Petersburg, and Tampa. Under the terms of the Amended and Restated Interlocal Agreement (ILA), it is the Agency s responsibility to provide quality water for county and municipal purposes in such a manner as will give priority to reducing adverse environmental effects of excessive or improper withdrawals of Water from concentrated areas (West Coast Regional Water Supply Authority, 1998b). The Agency has grown from a groundwater only system in 1998 to a much larger regional water delivery system that includes groundwater and surface water sources, an off stream storage reservoir, a seawater desalination plant, and a collection of pipes and pumps that distribute quality drinking water to the six member governments. Tampa Bay Water s regional network of water supply facilities includes the 120 million gallonper day (mgd) surface water treatment plant, the 2 mgd Tampa Bay Seawater Desalination Plant, a 1. billion gallon reservoir, and groundwater wellfields with a capacity of 120 mgd (permitted capacity). This use of river water, groundwater, and desalinated seawater makes Tampa Bay Water s system unique in the nation. The growth in the system is reflected in the data presented in Exhibit 1 and the system diagram presented in Exhibit 2. EXHIBIT 1 Summary of Tampa Bay Water s System Supply Sources Groundwater Groundwater, Surface Water, Desalinated Seawater Number of Delivery Points 7 19 Production Wells Water Plants 2 12 Pump/Booster Stations 4 14 Transmission Lines Miles Horsepower 28, ,02 Pumps Chemical Feed Systems Ground Storage Tanks 10 Reservoir Storage Billions of Gallons 0 1. Monitoring/Control Nodes Supervisory Control and Data Acquisition (SCADA) I/O Points 1,000 22,00 Communication Lines

15 1 ORGANIZATIONAL CONTEXT The surface water treatment plant, Lithia H2S Removal Facility, and the desalination plant are currently operated by outside contractors, but may revert to Tampa Bay Water operation in the intermediate term ( to 10 year time frame). Tampa Bay Water has added additional water treatment facilities, an expanded surface water system, piping, and pumps to form a flexible and adaptable water supply system. These sources are sufficient to meet the region s drinking water demands over the next decade. EXHIBIT 2 Tampa Bay Water Regional Water Supply and Delivery System Source: Tampa Bay Water, 2013b 1.2 Strategic Plan In 2011, Tampa Bay Water adopted a Strategic Plan, which includes four main goals intended to guide the Agency in fulfilling the mission of providing clean, safe, and reliable water. The Asset Management Implementation Plan maintains a line of sight with the Strategic Plan. The plan included new Mission, Vision, and Values statements along with the four major goals: Goal 1: Achieve a reliable water supply and delivery system Goal 2: Continue to improve the efficiency of Tampa Bay Water's operations 1-2

16 1 ORGANIZATIONAL CONTEXT Goal 3: Maintain Agency's financial stability and sustainability Goal 4: Develop, improve, and maintain collaborative relationships with stakeholders Goal 1 - Reliability The key driver for Tampa Bay Water is its unequivocal obligation to provide quality water to the member governments now and in the future according to Section 3.03 of the Interlocal Agreement. In addition, Section 3.11 of the ILA requires service disruptions be remedied as quickly as technically feasible which are being met through the Agency s dedication to an AM program approach. The strategies set forth in the Strategic Plan under the Reliability goal are aimed towards meeting this obligation. The details of how Tampa Bay Water will meet this obligation are documented in the Agency s Long Term Master Water Plan (Tampa Bay Water, 2014), which is updated every years. The master plan considers: future demands; requirements for capital projects; staffing; and the reliability of present and future supply and treatment facilities. Other activities that support supply and delivery reliability include the Optimized Regional Operations Plan (OROP). The plan is part of the Tampa Bay Water Decision Support System (CH2M HILL, 2002), which uses forecasted surface water flows, current groundwater level conditions, and rainfall data to determine how to rotate production among available supplies to meet demands in an environmentally sound manner (Tampa Bay Water, 2014) Goal 2 - Efficiency Tampa Bay Water is a sophisticated organization that invests heavily in advanced management and decision support practices. The Agency has many existing practices and programs which incorporate principles of Asset Management (AM), such as: A Capital Improvement Program (CIP) plan, which incorporates a multi criteria evaluation for each proposed project and considers levels of service (LOSs) and life cycle cost. A Renewal and Replacement (R&R) Program, which estimates R&R funding requirements and incorporates risk assessment and condition assessment. An Energy Management Program, which includes the implementation of energy conservation and alternative/renewable energy capital projects. A Demand Forecasting system, which incorporates point forecast projections and manages uncertainty by considering probabilistic projections. These practices and programs support the goal of improving efficiency of operations Goal 3 - Financial Stability and Sustainability To meet the financial stability and sustainability goal, Tampa Bay Water looks to develop predictable rates that consider uncertainties, looks for innovative ways to reduce cost, and focuses on developing reliable budget models, which also considers uncertainty. Several of the programs and plans described above, such as the Long Term Master Water Plan, the R&R Program, and the CIP, combine to help meet the Agency s financial goals. These programs and plans are collectively aimed at understanding the short term, intermediate term, and long term needs of the Agency and its customers, which ultimately lead the Agency to well considered financial projections. 1-3

17 1 ORGANIZATIONAL CONTEXT Goal 4 Relationships with Stakeholders Within the Strategic Plan, Tampa Bay Water considers both internal and external stakeholders. Current practices that support enhancement of relationships with external stakeholders include a public opinion survey, which explores public attitudes toward the Agency and its operations. Internally, Tampa Bay Water periodically reviews staffing through formal audits and pay plan and benefit package reviews. Tampa Bay Water has an active Communications Department. 1.3 Existing Practices In addition to the practices and programs described in Section 1.2, Tampa Bay Water incorporates many advanced practices into their operation, some of which are described below. These practices are highlighted as they specifically relate to the AM Program Governance Documents The West Coast Regional Water Supply Authority (Authority) was created pursuant to an Interlocal Agreement among Hillsborough County, Pasco County, Pinellas County, the city of St. Petersburg, and the city of Tampa dated October 24, Sections and , Florida Statutes, authorize the creation of regional water supply authorities. The Authority was created for the purpose of developing, recovering, storing, and supplying water for county and municipal purposes while giving priority to reducing the adverse environment effects of excessive or improper groundwater withdrawals from concentrated areas. New Port Richey was added as a non voting member in During the 1996 session, the Florida Legislature directed the Authority and its member governments to evaluate the Authority s operations to look for potential improvement opportunities. An independent report, entitled West Coast Regional Water Supply Authority Governance Study for the Florida Legislature, prepared by KPMG Peat Marwick LLP, analyzed and confirmed the strength of a regional solution. The Governance Study and its recommendations were approved for submittal to the Florida Legislature by the Authority s Board of Directors in January The Florida Legislature recognized the need for coordination between water management districts, regional water supply authorities, and local governments. Therefore, clear direction was provided as to each entity s respective role in ensuring that sufficient water is available for Tampa Bay area water users to meet reasonable beneficial needs and water needs of natural systems. The involved parties, including the Authority, its member governments, and the Southwest Florida Water Management District (SWFWMD), agreed that it was in their best interest to work together toward accomplishing their respective statutory responsibilities, including the coordination and development of new and additional water supplies to meet existing and future demands. On May 1, 1998, the Authority reorganized under the Amended and Restated Interlocal Agreement among Hillsborough, Pasco, and Pinellas Counties and the cities of St. Petersburg, Tampa, and New Port Richey. The reorganization changed the Authority from operating under an entitlement or subscription funding approach to operating as a true utility. Wellfields and associated infrastructure owned by the member governments were purchased by the new utility to create a true regional water supply and delivery system. As part of the transition, the utility assumed a new name: Tampa Bay Water (AwwaRF, 2006). The May 1998 contract documents the Authority s responsibility to sell and deliver sufficient Quality Water to the Member Governments to meet their needs in accordance with the terms of the Contract and the Interlocal Agreement (West Coast Regional Water Supply Authority, 1998a). In June of 1998, an Amended and Restated Interlocal Agreement was signed reorganizing the West Coast Regional Water Supply Authority for the purpose of developing, recovering, storing and supplying Quality Water for county and municipal purposes in such a 1-4

18 1 ORGANIZATIONAL CONTEXT manner as will give priority to reducing adverse environmental effects of excessive or improper withdrawals of Water from concentrated areas (West Coast Regional Water Supply Authority, 1998b). Exhibit C in the Contract defines design pressures at points of connection ranging from 20 pounds per square inch gauge (psig) to 80 psig. Exhibit D in the Contract defines supplemental water quality parameters at points of connection, including sulfides, total hardness, and alkalinity. The Interlocal Agreement includes three major components related to the reliable and sustainable delivery of finished water: If demand exceeds permitted capacity by 7% during any 12 month period initiate preparation of permit applications. If demand exceeds permitted capacity by 8% during any 12 month period file permit applications. Production Failure actual delivery during any 12 month period exceeds 94% of the aggregate permitted capacity. The Water Use Permits (WUPs) issued by the SWFWMD establish the maximum withdrawals from the various fresh water sources. Tampa Bay Water s desalination plant capacity is permitted through the Florida Department of Environmental Protection (FDEP) Strategic Plan In 2011, the Board adopted the 2011 Strategic Plan. The plan included new Mission, Vision, and Values statements, along with four major goals. Each goal included a number of individual strategies to guide efforts in achieving the goals. The strategies were further divided into objectives to support those strategies. In total, there were 6 objectives supporting 19 strategies. In the first quarter of 2013, the first report of progress against the Strategic Plan was presented to the Board (Tampa Bay Water, 2013a). This document was based on a group meeting where staff members assigned weighting factors to each goal, strategy and objective. A time based scoring scale was developed and scores were applied to each weighted strategy. The roll up of the scores gave an overall performance score by objective, which showed progress toward implementing the plan. The intent is to create annual updates going forward Financial Tampa Bay Water owns assets with a book value of $1.22 billion and has bond ratings of Aa2, AA+, and AA+ from Moody s, Standard & Poor s, and Fitch, respectively (Citigroup et al., 2013). In fiscal year 2012, the Agency had an average water production of mgd and revenue from sales of $166 million (FY2012) (Citigroup et al., 2013). The fiscal year 2014 budget for the Agency is $168.9 million (Tampa Bay Water, 2013g), which includes a CIP of $89 million. Overall, perceptions and opinions of staff indicate that the financial situation of the Agency is considered good, and the organization is investing in programs that will save money in the long run. Routine audits support this conclusion Long-Term Demand Forecasting Model In 2004, Tampa Bay Water developed a long term demand forecasting system (LTDFS) in response to the need to develop new water supply and reduce pumpage from existing wellfields (Hazen and Sawyer, 2004). The LTDFS quantifies how socioeconomic, meteorological, and policy conditions influence potable water demand. The forecasting models were updated to include an additional five years of water use data and to extend the water planning horizon to 203 (Hazen and Sawyer, 2010). 1-

19 1 ORGANIZATIONAL CONTEXT The LTDFS incorporates both point forecast projections and probabilistic projections using Monte Carlo techniques to account for uncertainty in variables which influence demand projections. In 2013, Tampa Bay Water initiated the next update of the long term demand forecasting models to incorporate about five years of additional water use data, evaluate the most appropriate spatial scale for the econometric models, and to incorporate the effects of passive water use efficiency directly into the demand forecasting process System Hydraulic Analysis Update Project Tampa Bay Water is currently undertaking a project to update the regional system hydraulic evaluation using 203 average day water demand projections for the points of connection.. The evaluation includes Emergency Scenario Planning, facility level risk assessments and review of operating conditions Long-Term Master Water Plan (December 2013) Under the terms of the Interlocal Agreement, Tampa Bay Water is required to update the Master Water Plan every years. The third such update was completed at the end of 2013 (Tampa Bay Water, 2013e). The purpose of the document is to ensure that Tampa Bay Water meets the unequivocal obligation to provide quality water to its member governments both now and in the future. According to the Interlocal Agreement, the year update shall, to the extent deemed necessary or advisable by the Board: Identify current customers, projects, and future customers Review and generally inventory existing Tampa Bay Water facilities Identify a CIP(or a component of overall CIP) Review current Tampa Bay Water permits along with existing and projected regulations Identify proposed new water supply facilities Evaluate staffing Provide hydraulic analysis of both existing and proposed systems Evaluate present and future sources and treatment requirements in terms of capacity, reliability, and economy Update the list of water supply facilities required to meet the anticipated water quality needs of the member governments for the next 20 years In addition, the Board s goals for the Master Water Plan projects include: environmental stewardship, cost, and reliability. With the significant shift toward reliance on surface water, the most recent plan includes details on how the Agency will incorporate/address climate variability into water supply planning. Water demands and the quantity of available surface water supply can vary greatly between wet to normal rainfall years versus drought years and can also be different intra annually due to expected seasonal rainfall patterns. Tampa Bay Water has developed a system wide model which allows the entire regional supply and delivery system to be analyzed. Quantifying the performance of the regional system under varying demand and weather conditions is accomplished through the use of this simulation model. This approach incorporates both risk based decision making and adaptive planning. The Demand Management Plan, which is prepared as part of the Master Water Plan, investigates the benefits and costs of water demand management as a quantifiable, alternative water supply source. The Demand 1-6

20 1 ORGANIZATIONAL CONTEXT Management Plan is one way to further the Agency s strategic goal to achieve reliability of its water supply and delivery system. Tampa Bay Water regularly performs hydraulic analyses for its regional supply and transmission system to study current system operating conditions and to evaluate plans for projected future operating conditions (Section 1.3.). Tampa Bay Water uses a number of tools to perform modeling and analysis Optimized Regional Operations Plan The OROP, developed by Tampa Bay Water in compliance with permit conditions, utilizes an integrated hydrologic simulation model, surface water forecasting tools, and an optimization model to manage pumpage from the 11 wellfields under the Consolidated Permit, the Brandon Urban Dispersed Wells (BUDW), and surface water withdrawals (Hillsborough River/Tampa Bypass Canal system and Alafia River). The result is an interconnected regional water supply system through the development of an optimized production schedule. The hydrologic model, which is based on the physical characteristics of the surface water and groundwater system, simulates changes in water levels resulting from changes in pumpage and rainfall. The optimization model is used to schedule production from the wellfields, based on current hydrologic conditions, forecasted treated surface water available from the regional surface water treatment plant, and available desalinated seawater, to meet member government demands. The optimization model also seeks to maintain groundwater levels as high as possible at a selected set of surficial aquifer and Upper Floridan Aquifer monitoring wells known as control points. The pumpage/water level relationships are based on the hydrologic model providing a unit response for each production/monitoring well combination, which relates incremental pumpage changes to water level changes. The output of the optimization routine is a weekly schedule that directs pumpage from production wells (AwwaRF, 2006 and Tampa Bay Water,2011a). The OROP is part of the Tampa Bay Water Decision Support System (DSS) (Tampa Bay Water and CH2M HILL, 2002) that uses forecasted surface water flows, current groundwater level conditions, and rainfall data to determine how to rotate production among available supplies to meet demands in an environmentally sound manner (Tampa Bay Water, 2014). Tampa Bay Water is currently developing a daily systems operations model that will be integrated with OROP. Hydraulic and mechanical reliability analyses of systems, subsystems, and components are currently being developed through integrated efforts from the planning, engineering, operations, and maintenance groups Well Mitigation Program The Tampa Bay region has historically relied on groundwater wells as its major source of drinking water. As early as the 1970s and 1980s, and preceding the formation of Tampa Bay Water, there were increasing community and environmental concerns related to the sustainability and negative impacts of continued sole dependency on groundwater supplies. One of the core objectives of Tampa Bay Water since its inception in 1998 has been to reliably and sustainably diversify the region s raw water sources for drinking water uses. From 1979 to November 30, 1992, the Agency followed SWFWMD s WUP conditions as part of its well investigation and mitigation policy. The WUP conditions required the mitigation of any domestic well that was impacted by wellfield withdrawals. A water well contractor and a consultant investigated each domestic well complaint. A complete investigation and evaluation were conducted on each well to determine if the well was being adversely impacted by wellfield activities. The Good Neighbor Policy (GNP) for well complaints was approved in November 1992 and provided for domestic well complaints to be addressed with no need to determine the cause of the problem. Prior to this, the permit conditions required the Agency to mitigate any adverse impacts, related to wellfield water withdrawals, to a well owned by an existing legal user. As a result, the Agency would investigate whether or not wellfield activities were the cause of the complaint. This investigation in many cases took several days and often yielded results that were disputed by SWFWMD. 1-7

21 1 ORGANIZATIONAL CONTEXT By implementing the governing board s GNP, Tampa Bay Water complies with the Florida Well Mitigation Policy. This policy includes investigating and resolving, normally at no expense to the owner, any water level issues regarding domestic wells within the mitigation area established in each wellfield s current WUP. Well Complaint Summary Reports are compiled and submitted monthly for each of the WUPs (Larson Allen, 2010) CIP Prioritization Tampa Bay Water s CIP is a comprehensive year plan of approved and proposed capital projects. It is updated annually to adjust for need and timing of projects. In developing and updating the plan, Tampa Bay Water staff take several actions to guide decision making and recommendations for projects being considered for inclusion in the CIP. These are: Identify and prioritize capital projects through a coordinated, Agency wide effort that considers planning and development, engineering, construction, financing requirements, and O&M costs. Develop a schedule for each project. Develop a funding scenario that identifies funding sources, projected cash flow, and future O&M cost estimates. The evaluation process includes a multi criteria evaluation for each proposed project against each of the following criteria: Compliance, LOS, Contractual Obligations, Security and Safety, Operating Costs, Maintenance Costs and R&R Urgency (Tampa Bay Water, 2013h) Renewal and Replacement Program The Tampa Bay Water R&R Program estimates annual R&R funding requirements, projects future funding requirements, determines asset condition, and prioritizes R&R projects and activities. The program provides Tampa Bay Water with a way to help manage its assets from installation through disposal. The R&R Program development process follows five steps: Data Collection, Risk Assessment, Sensory Condition Assessment, Desktop Assessment, and Replacement Planning Model. Risk is calculated by scoring each asset for Vulnerability and ity using defined metrics for each. The metrics consider aspects such as useful life of asset, water quality, financial impact, health and safety, and impact on the environment. The sensory condition assessment is completed for Tampa Bay Water facilities approximately every 3 years, and the Desktop Assessment is completed for underground assets, such as pipelines and buried power lines. The Replacement Planning Model (RPM) is a custom application used to forecast asset R&R needs over a given timeframe. The RPM considers type, useful life, renewal activities, probability of failure, condition, and utilization of assets to estimate timing of their renewal and replacement. The RPM is updated annually as new assets are added and as assets are renewed or replaced. R&R activities or projects arising from the RPM are considered for incorporation into the CIP or for funding through the operating budget R&R Fund. The RPM is significantly dependent on the internally developed Enterprise Maintenance Management System (EMMS). However, for numerous reasons, the asset lists, asset attributes, and work order histories have not been well maintained over recent years. In the fall of 2013, the decision was made to move to a robust commercially available computerized maintenance management system (CMMS). The new CMMS is currently in the process of being implemented; concurrently, best management practices are being implemented to better assure that the data contained in the CMMS, and which are required for meaningful use of the RPM, are in place. Not all asset data are currently included in the RPM. Plans for 2014 included continued program refinement, asset evaluation, and data entry into the program. 1-8

22 1 ORGANIZATIONAL CONTEXT Safety Policy and Procedures Manual A draft of the Tampa Bay Water Safety Plan, the Safety Policy and Procedures Manual, is currently in development (Tampa Bay Water, 2013d). This document outlines the Agency s overall plan for ensuring the safety of its employees and contractors by implementing the best practice of maintaining Occupational Safety and Health Administration (OSHA) compliance in all facets of its operations. The objectives of the Safety Plan are to: Ensure the safety of all Tampa Bay Water employees, contractors, and the general public who come in contact with Agency assets. Continually monitor, maintain, and periodically update engineering controls and work practices to ensure the safety of Agency employees, contractors, and the general public. Promptly evaluate and respond to accidents or incidents that endanger Agency employees, contractors, and the general public. Prioritize safety of Agency employees and contractors to minimize impacts on the ability to provide drinking water. Regularly communicate with Agency employees and contractors and maintain awareness and priority for safety Security Policy and Procedures Manual The Security Manual is a confidential document that outlines the Agency s overall plan to provide the reasonably necessary physical measures, management systems, security forces, information sharing, and protective measures to secure its facilities (Tampa Bay Water, 2013b). The objectives of the Security Policy and Procedures Manual are to: Proactively protect the Agency s facilities, property, and employees from criminal acts. Continually monitor, maintain, and periodically update physical and operational security systems and procedures. Promptly evaluate and respond to credible security threats. Prioritize security for critical assets to minimize impacts on the ability to provide drinking water. Regularly communicate with employees and maintain awareness and priority for security Energy Management Program Tampa Bay Water s Energy Management Program includes the implementation of energy conservation and alternative/renewable energy capital projects. This programmatic approach to improve energy efficiency through implementation of emerging technology and other opportunities is a top priority for the Agency. The Program follows a 10 year Energy Roadmap that looks at issues related to energy consumption. The Roadmap aligns with the Agency s overall Strategic Plan, identifies elements of technology and energy infrastructure to enhance financial stability and sustainability of operations, and identifies gap/key projects necessary to connect capital projects with the goals of the Roadmap (Tampa Bay Water, 2013c and 2013f). 1-9

23 1 ORGANIZATIONAL CONTEXT Management and Performance Audit Every years, the Agency contracts with an independent auditor to assess the Agency as an entity and to report conditions and make recommendations. The two completed since the creation of Tampa Bay Water were published in 2010 (Larson Allen, 2010) and 200 (KPMG, 200). The aim of these management and performance audits is to review program results and make recommendations regarding its governance, structure and the proper, efficient, and economical operation and maintenance of the Agency s Water Supply Facilities. The audits include staff interviews, employee surveys, customer satisfaction surveys for the six member government utility directors, and peer benchmarking. The audits also include a review of relevant Agency policies, procedures, guidelines, plans, and reports. The Executive Summary of the 2010 performance audit states this performance audit has found specific areas where the Agency can now concentrate to enhance the services provided, while remaining cost effectiveness. Focus should be on (1) comprehensive strategic planning; (2) definition and adoption of a performance measurement and continuous improvement program at all levels of the Agency; (3) completion and implementation of the renew and replace (R&R) program; (4) methodical review of the cost effectiveness of the professional services currently outsourced; () proper succession planning; (6) strengthening the human resources function; and (7) increasing maintenance and operations field work productivity. In the spring of 2013, the Agency implemented a re organization that had been formulated over approximately 2 years. A new General Manager was hired in July 2013, and additional modifications to the organization structure are currently underway. Progress was made on the major aspects of the 2010 performance audit, including throughout the re organization period. The Human Resources (HR) manager position has been vacant since December 2013, and that position was filled in March Customer Survey Tampa Bay Water conducts regular customer surveys, the most recent one being in 2012 (Tampa Bay Water, 2012). For this Public Opinion Survey, Tampa Bay Water contracts with a third party whose personnel conduct telephone and internet surveys of randomly selected households in the Tampa Bay Water service area. The objective of surveys studies is to explore public attitudes regarding the following: Regional water supply issues Tampa Bay Water Water conservation Tap water Information sources for water issues The most recent report presented results from the 2012 survey aggregated for the entire service area and broken down by county (Kerr & Downs Research [KDR], 2012). Comparisons to results from 2003, 200, and 2007 were also shown in the survey summary reports when appropriate. The most recent customer survey included telephone and online surveys of 1,200 randomly selected households in the Tampa Bay Water area, the results of which are statistically valid for both the tri county region as a whole, as well as each county individually. Some key findings of the survey included: One half of respondents believe that public officials adequately address water supply issues; the public perception is that the water shortage has improved significantly since the last survey was conducted in

24 1 ORGANIZATIONAL CONTEXT Two thirds of respondents believe that Tampa Bay Water effectively supplies water to the region and 6 in 10 agree that the Agency is concerned about the environment. More than 0 percent of respondents think that Tampa Bay Water is concerned about finding new water sources and helps local governments cooperate on water problems. Half of respondents think that Tampa Bay Water listens to the community and accepts ideas this is up 16 percentage points since Around a third of respondents believe the Agency meets wholesale water needs, advocates for the protection of water sources, and plans, develops, produces, and delivers a high quality water supply. Half of respondents are not aware of where their water comes from. In addition, desalination (both brackish and seawater), as well as surface water, were listed as undesirable water resources. Water quality remains a priority with the respondents. Forty five percent think bottled water is safer to drink than tap water, and the number of respondents who believe tap water is safe to drink has decreased by percentage points since Respondents indicated they would be willing to pay an additional $2.81 per month on average to improve water quality Maintenance Strategies Evaluation Prior to the AM evaluation project, CH2M HILL worked with Tampa Bay Water to support their current Maintenance System and practices. In the evaluation of the CMMS, it became apparent that a number of workflows, business processes, and preventative maintenance (PM) work orders needed to be improved within the framework of the reorganized Agency. The project introduced the concepts of best industry practices, including Reliability Centered Maintenance (RCM) and Failure Modes and Effects Analysis (FMEA). In addition, the project included training and defining required roles and responsibilities within work processes and assignments within various departments. The training series consisted of 10 sessions addressing such topics as Reliability & Failure Modes; FMEA; Operator Driven Reliability/Maintenance; Predictive Maintenance Applicability; Predictive Maintenance Data Use/Trending; Development of Workflows; and Development of PM Programs. Staff level evaluation included review of the development of multi tier classification for maintenance workers, similar to those used by operators CMMS Evaluation Also prior to the AM evaluation project, CH2M HILL assisted Tampa Bay Water in evaluating the existing Enterprise Maintenance Management System (EMMS) and the associated business processes and practices. The evaluation is documented in the Technical Memorandum, Tampa Bay Water CMMS Review (CH2M HILL, 2013). The evaluation concluded that it was in Tampa Bay Water s best interest to replace the existing EMMS with a commercially available system. Tampa Bay Water subsequently selected IBM Maximo as the new CMMS, and is currently moving forward with that implementation Data Management and Information Technology (IT) Systems The following provides a summary of the major data management and IT systems, as related to the CMMS. A separate IT Master Plan is being developed concurrently with this AM Implementation Plan. MUNIS All financial transactions are currently performed in MUNIS. Creation of a Work Order in the existing CMMS creates a duplicate Work Order within MUNIS. This allows for costs from MUNIS to be assigned to Work 1-11