Ohio RCAP Methodology for Asset Management / CMOM Demonstration Projects
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1 Ohio RCAP Methodology for Asset Management / CMOM Demonstration Projects December 10, 2014 from 2:00-3:00 p.m. Presented by Wayne Cannon Ohio RCAP Rural Development Specialist, hwcannon@wsos.org
2 Why Asset Management? (Defining the Problem) Aging water infrastructure demands our attention. Without strategic reinvestment we are headed for a crisis.
3 Asset Management / CMOM Demonstration Project Phase I GIS Mapping / Desk Audit 1. Administrative Management Review (Rules / Regulations) 2. Asset Inventory (GPS Data Collection / GIS Mapping) 3. Problem Identification - Construction and Maintenance History 4. Operational Review (Historical vs. Best Practices) Phase 2 Field Investigations / Identification of Best Management Practices 5. Initial Condition Assessments (Sweat Equity) 6. Creating Asset Attributes Tables for CUPSS and GIS 7. Identify Performance Benchmarks / Best Practices 8. CUPSS / CMMS Software setup for Preventative Maintenance, Predictive Monitoring, and Rehabilitation / Replacement Escrow Phase 3 Report Preparation 9. Capital Improvement Plan to address Deferred Maintenance 10. Asset Management Plan (Long term capital budgeting) 11. Rate Analysis (Affordable and Sustainable Rate) 12. Public Meeting to discuss Asset Management Plan results
4 Administrative Review The Management Factor Legal Authority Rules and Regulations Organizational Structure Management Team Staffing / Job Descriptions Training & Safety Program Emergency Preparedness Customer Service & Public Relations Policy Management is the Key to Success
5 Administrative Review (Rules, Regulations, Policies & Procedures) Are written rules and regulations available? Are they legally enforceable? Can you locate the authorizing ordinances and bylaws? When were the rules and regulation last reviewed updated? Do they make sense? Are they compatible with current building standards and construction techniques? Do the regulations address private property issues. Who is responsible for service lateral leaks? What about delinquency collection policies? Do utility employees understand the rules and regulations which they are responsible to enforce? Do they understand how enforcement impacts other departments?
6 GIS Mapping Asset Inventory made EASY Maps are effective tools for storing and communicating information. Poor mapping makes distribution system maintenance and repairs very difficult. Each asset should be assigned a unique identifier or name. This identifier will be used to manage attribute information such as asset type, location, material type, size, capacity, condition, maintenance history, etc. The identifier can be used to link databases (GIS, CMMS, Billing Software, SCADA, Hydraulic Models). GIS Map created by the Ohio RCAP GIS Cooperative
7 Identifying Problem Areas (Water Distribution) RCAP acts as a facilitator for group discussion on asset condition and known maintenance concerns. Reference: Workshop in a Box! Pink to 1935 era cast and ductile iron Orange to 1950 era ductile iron Yellow to 1980 era ductile iron Green Concrete pipe Blue PVC Line breaks are indicated by X. Rocky area circled in red GPS data collection is sometimes completed by other entities. Asset attribute information was entered into CUPSS input worksheet manually. Very Slow Process. Pipeline failures were related to age (Pink pipeline segments) and corrosion (Green pipeline bolt failures on concrete pipe service connections).
8 Problem ID Meeting Map (Management / Operator Notes) Another map highlighted by utility operators and management during the Problem ID Meeting.
9 Problem ID Meeting Map (Map completed by RCAP GIS Team) The Ohio RCAP GIS Team has been able to automate the data entry process to make the GIS download to Excel more efficient.
10 Operational Review Inspection by RCAP operator & engineer Focus of the operational review is on equipment performance (capacity and energy efficiency). Most communities do a reasonably good job of managing treatment plants thanks to strong regulatory oversight. Distribution and collection systems are another story. We also focus on water loss with a lengthily discussion on water auditing procedures. Excessive inflow and infiltration contributing to SSO and CSO overflows are important wastewater topics. Street department staff view underground infrastructure differently. Condition is not a problem unless there is a danger of collapse. This completes the desk audit. The next step is field verification of condition assumptions. Information gained from the desk audit will be used to prioritize fieldwork.
11 Initial Condition Assessments (Management Training) Initial Asset Condition Assessment for: Hydrants Valves Water Mains Wells Pumps and Motors Storage Tanks Treatment Plants Condition assessments are performed by utility department staff with the assistance of coop students and volunteers. (SWEAT EQUITY) Condition assessments are very time consuming. Estimate 30 minutes per asset for a phase I assessment. Most communities will need several years to inspect ALL of their assets. Condition inspection and performance monitoring will therefore need to become an ongoing maintenance activity. The resulting asset management plan should be revised as the quality of information improves.
12 Data Collection for Initial Condition Assessments Excel worksheets have been developed to help utilities organize information on asset condition and performance.
13 CUPSS Input Worksheet (GIS Asset Attributes) Info from GIS Mapping Hydrant data collected by the community will be used to supplement age for asset condition assessment. This information can be then exported to GIS Information System.
14 CUPSS Input Worksheet (GIS Asset Attributes) Data tables can be imported to CUPSS, GIS or both. The ability to transfer information between databases requires an unique asset name.
15 Identifying Best Practices (Preventative and Predictive Maintenance) Water Audits Leak Location and Repair Valve Condition Assessment & Maintenance Hydrant Condition Assessment & Maintenance Pipeline Condition Assessment Pressure Management Water Line Flushing Backflow Prevention Customer Education Best management practices are particularly important for water distribution since no owner s manual exist for this type of asset.
16 CUPSS Software (Set-up CMMS for Improved Maintenance) Improved Preventive Maintenance CUPSS Table 5-1 shows preventive maintenance and performance monitoring work orders with their associated cost. Presenting the maintenance budget in this format requires decision makers to consider cost and consequences of each maintenance task. Budget reductions are more difficult when consequences are understood. Goal: Maintain infrastructure and equipment for maximum economical life.
17 CUPSS Software (Set-up CMMS for Improved Maintenance) Predictive Maintenance Escrow Predictive maintenance involves renovation and replacement of short-lived components of long-term asset. An asset management goal of saving 100% of predictive maintenance cost may not be immediately achievable. An intermediate goal of funding predictive maintenance from savings within 5 to 10 years is more reasonable. Budget to phase in predictive maintenance escrow deposits. Small capital projects should be funded from savings. Preserve credit capacity for large projects.
18 Capital Improvement Program A water system rehabilitation program is necessary to defend the distribution system against the effects of time. Rehabilitation activities should be scheduled based upon information obtained from your performance monitoring program.
19 Capital Improvement Planning (Deferred Maintenance) Costs of overcoming DEFERRED MAINTENANCE is the greatest barrier to the successful implementation of Asset Management principles. Capital upgrades to correct deferred maintenance should also address the underlying management problems responsible for asset failure. CMMS and GIS mapping should be a component of any capital improvement project made necessary by deferred maintenance. GIS Mapping Those who fail to learn from the mistakes of their predecessors are destined to repeat them. George Santayana
20 Budgeting, Rates, and Funding Asset Replacement An asset management plan is used to document the reserve deposits necessary to provide long-term sustainability. Remaining useful life should be adjusted to reflect the results of condition assessments and improvements to preventive and predictive maintenance. Nothing lasts forever. Everything will wear out eventually. Self funding 100% of capital replacement cost is not a realistic goal.
21 Budgeting for Asset Replacement Asset Replacement Grant and low interest loan providers want to fund projects which are ready to proceed! (Shovel Ready!) By paying for preliminary engineering and design from savings your next project can be shovel ready. Shovel ready projects have a greater probability of securing low interest loans and grants thereby reducing asset replacement cost. Escrow deposits of 15% of asset replacement is a reasonable asset replacement goal for many utilities.
22 Budgets provide a Foundation for Rates When your outgo exceeds your income, your upkeep becomes your downfall Don Chaffin Ag. Econ 101
23 A rate increase is likely: Opposition usually declines if the customer: 1. Understands why the rate increase is necessary to operate the system on a financially sound basis. 2. Has a clear understanding of how the rate change will be implemented. How much and when! 3. Believe that each customer group is paying it s fair share of the cost. Share your calculations with your customers and emphasize the consequences of not enacting necessary rate increases?
24 Safeguarding Capital Reserves Specific escrow accounts should be established to help future decision makers understand the necessity of large escrow balances. Capital improvement escrow must withstand the political storms which will occur during the asset s lifecycle. Future decision makers must be trained to understand and respect the Asset Management accomplishment of their predecessors.
25 Public Meeting to discuss the Asset Management Plan Recommendations for Initial Asset Management Goals: Improve regulatory compliance (When necessary) Effective preventive maintenance program Establishment of predictive maintenance escrow Developing an asset replacement strategy Sustainable utility rate. These steps are necessary to establish an asset management philosophy within the utility. Specific level of service goals can be incorporated later.
26 Cost of Asset Management Costs were figured based upon services provided which makes it difficult to quote a typical fee. Price ranges from $10 to $50 per customer.
27 What have we learned! Community buy-in is critical. A rate increase will be necessary to pay for improved maintenance and recommended escrow deposits. These necessary commitments are politically easier on the heals of a major capital improvement project. Rates are going up anyway. Quality GIS Mapping simplifies data collection, organization and analysis. However, GIS is more than GPS locations on a map. Operator buy-in is necessary for successful implementation. Someone has to perform the recommended maintenance task. Most utilities are understaffed. Particularly for the maintenance of underground assets. Staffing needs must be considered. Funding for the maintenance budget, staffing and training are an obstacles for utilities of every size. Best Practice training is needed for the management and maintenance of aging assets. Replacement is unaffordable Implementation of asset management will be extremely difficult for small communities without shared services. (GIS Cooperative, Maintenance Contracts, Good Neighbors).
28 Your Asset Management Action Plan
29 The Ohio RCAP Method for Asset Management / CMOM Planning Questions?
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