Drinking Water Asset Management Programs Best Management Practice: Case Studies From the North American Drinking Water Community

Drinking Water Asset Management Programs Best Management Practice: Case Studies From the North American Drinking Water Community

About the Awwa Research Foundation The Awwa Research Foundation (AwwaRF) is a member-supported, international, nonprofit organization that sponsors research to enable water utilities, public health agencies, and other professionals to provide safe and affordable drinking water to consumers. The Foundation s mission is to advance the science of water to improve the quality of life. To achieve this mission, the Foundation sponsors studies on all aspects of drinking water, including supply and resources, treatment, monitoring and analysis, distribution, management, and health effects. Funding for research is provided primarily by subscription payments from approximately 1,000 utilities, consulting firms, and manufacturers in North America and abroad. Additional funding comes from collaborative partnerships with other national and international organizations, allowing for resources to be leveraged, expertise to be shared, and broad-based knowledge to be developed and disseminated. Government funding serves as a third source of research dollars. From its headquarters in Denver, Colorado, the Foundation s staff directs and supports the efforts of more than 800 volunteers who serve on the board of trustees and various committees. These volunteers represent many facets of the water industry, and contribute their expertise to select and monitor research studies that benefit the entire drinking water community. The results of research are disseminated through a number of channels, including reports, the Web site, conferences, and periodicals. For subscribers, the Foundation serves as a cooperative program in which water suppliers unite to pool their resources. By applying Foundation research findings, these water suppliers can save substantial costs and stay on the leading edge of drinking water science and technology. Since its inception, AwwaRF has supplied the water community with more than $300 million in applied research. More information about the Foundation and how to become a subscriber is available on the Web at www.awwarf.org.

Drinking Water Asset Management Programs Best Management Practice: Case Studies From the North American Drinking Water Community Prepared by: Gregory J. Kirmeyer HDR Engineering, Inc. 500 108 th Avenue NE, Suite 1200 Bellevue, WA 98004 and Andrew Graham and Jeffrey Hansen HDR Engineering, Inc. 626 Columbia St NW Suite 2A Olympia, WA 98501 and Doug Spiers Westin Engineering, Inc. 3100 Zinfandel, Suite 300 Rancho Cordova, CA 95670 Sponsored by: Awwa Research Foundation 6666 West Quincy Avenue Denver, CO 80235-7009 Published by the Awwa Research Foundation

DISCLAIMER This study was funded by the Awwa Research Foundation (AwwaRF). AwwaRF assumes no responsibility for the content of the research study reported in this publication or for the opinions or statements of fact expressed in the report. The mention of trade names for commercial products does not represent or imply the approval or endorsement of AwwaRF. This report is presented solely for informational purposes. Copyright 2008 by Awwa Research Foundation All rights reserved Printed in the U.S.A.

CONTENTS LIST OF TABLES... vii LIST OF FIGURES... ix FOREWORD... xi ACKNOWLEDGEMENTS... xiii EXECUTIVE SUMMARY... xv CHAPTER 1: SEATTLE PUBLIC UTILITIES CASE STUDY DECISION-MAKING FOR CAPITAL INVESTMENTS... 1 Introduction... 1 Background... 1 Organization and Management... 1 Capital Decision-Making at Seattle Public Utilities... 3 The Project Development Plan... 3 Participants in Capital Project Decision-Making... 4 Triple Bottom Line Evaluation... 5 Project Example... 5 Summary of Results... 8 CHAPTER 2: AMERICAN WATER CASE STUDY CONTINUOUS LEAK DETECTION TO MONITOR CONDITION OF WATER DISTRIBUTION PIPES... 11 Introduction... 11 Background... 11 Searching for Methods to Find Leaks... 11 Practice Demonstrated in Connellsville, Pennsylvania, USA... 12 Continuous Leak Detection Program... 12 Acoustic Monitoring... 13 Automatic Meter Reading (AMR) System... 14 Results from Connellsville... 14 Summary of Results... 15 CHAPTER 3: LAS VEGAS VALLEY WATER DISTRICT CASE STUDY USE OF ELECTRONIC MOBILE AND FIELD SOLUTIONS BY LAS VEGAS VALLEY WATER DISTRICT... 17 Introduction... 17 Background... 17 MIDAS Mobile Inspection Data Acquisition System... 17 ViryaNet ServiceHub Mobile Application Mobile Work Order Management... 19 Other Field Solution Systems Used at the District... 20 Summary of Results... 21 v

CHAPTER 4: EPCOR WATER SERVICES CASE STUDY THE USE OF GIS TO SUPPORT EPCOR S BUSINESS PROCESSES... 25 Introduction... 25 Background... 25 GIS Strategy in EPCOR... 26 GIS in Support of Asset Management at EPCOR... 27 Water Main Renewal Programs... 27 Hydraulic Modeling... 29 Modified Duties for Injured Staff... 29 GeoEdmonton Alliance... 30 Financial Benefits... 31 Summary of Results... 31 CHAPTER 5: LOUISVILLE WATER COMPANY CASE STUDY MAIN REPLACEMENT AND REHABILITATION PROGRAM... 33 Introduction... 33 Background... 33 Main Replacement and Rehabilitation Program... 34 History of MRRP... 34 Key Elements of the MRRP... 34 Selection Methodology... 35 Results of MRRP... 35 Other Related Programs and Activities... 37 Summary of Results... 38 vi

LIST OF TABLES 1.1 Roles of Specifiers and Service Providers... 2 1.2 Results of Cost/Benefit Analysis... 8 4.1 Timeline of the Technology Deployment and Asset Management Activities... 25 5.1 Louisville Water Company Categories of Criteria... 35 vii

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LIST OF FIGURES 1.1 Expected Frequency of Minimum Water Surface Elevations, Morse Lake Reservoir... 6 1.2 Cost and Benefits of the 3 Options (Without Social Benefits)... 7 2.1 MLOG Sensor Adjacent to a Water Meter... 13 2.2 Graphic Display of Acoustic Data... 14 5.1 Louisville Water Company Main Break and Joint Leak Frequency (1986-2006, 10-year Moving Average)... 36 5.2 Louisville Water Company MRRP Historical Mileage and Costs (1993-2007)... 37 ix

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FOREWORD The Awwa Research Foundation is a nonprofit corporation that is dedicated to the implementation of a research effort to help utilities respond to regulatory requirements and traditional high-priority concerns of the industry. The research agenda is developed through a process of consultation with subscribers and drinking water professionals. Under the umbrella of a Strategic Research Plan, the Research Advisory Council prioritizes the suggested projects based upon current and future needs, applicability, and past work; the recommendations are forwarded to the Board of Trustees for final selection. The foundation also sponsors research projects through the unsolicited proposal process; the Collaborative Research, Research Applications, and Tailored Collaborations programs; and various joint research efforts with organizations such as the U.S. Environmental Protection Agency, the U.S. Bureau of Reclamation, and the Association of California Water Agencies. This publication is a result of one of those sponsored studies, and it is hoped that its findings will be applied in communities throughout the world. The following report serves not only as a means of communicating the results of the water industry s centralized research program but also as a tool to enlist the further support of the nonmember utilities and individuals. Projects are managed closely from their inception to the final report by the foundation s staff and large cadre of volunteers who willingly contribute their time and expertise. The foundation serves a planning and management function and awards contracts to other institutions such as water utilities, universities, and engineering firms. The funding for this research effort comes primarily from the Subscription Program, through which water utilities subscribe to the research program and make an annual payment proportionate to the volume of water they deliver and consultants and manufacturer subscribe based on their annual billings. The program offers a cost-effective and fair method for funding research in the public interest. A broad spectrum of water supply issues is addressed by the foundation s research agenda: resources, treatment and operations, distribution and storage, water quality and analysis, toxicology, economics, and management. The ultimate purpose of the coordinated effort is to assist water suppliers to provide the highest possible quality of water economically and reliably. The true benefits are realized when the results are implemented at the utility level. The foundation s trustees are pleased to offer this publication as a contribution toward that end. David Rager Chair, Board of Trustees Awwa Research Foundation Robert C. Renner, P.E. Executive Director Awwa Research Foundation xi

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ACKNOWLEDGEMENTS The authors of this report are indebted to the following water utilities and individuals for their cooperation and participation in this project: Liz Kelly, Seattle Public Utilities, Seattle, Washington, USA David Hughes, American Water, Voorhees, New Jersey, USA Richard Hyte, Las Vegas Valley Water District, Las Vegas, Nevada, USA Susan Ancel, EPCOR Water Services, Edmonton, Alberta, Canada Greg Heitzman, Louisville Water Company, Louisville, Kentucky, USA In addition, the help of the Project Advisory Committee (PAC) including Jeff Leighton, City of Portland Water Bureau, Portland Oregon, USA; Larry A. Johnson, Palm Beach County Water Utilities Department, West Palm Beach, Florida, USA; Christopher J. Hebberd, City of Atlanta Bureau of Drinking Water, Atlanta, Georgia, USA; Wayne Green, Green Management, Mississauga, Ontario, Canada; Scott Haskins, Seattle Public Utilities, Seattle, Washington, USA; Stephen P. Allbee, United States Environmental Protection Agency, Washington, D.C., USA and the help of AwwaRF project officer, Maureen Hodgins, are appreciated. The authors wish to acknowledge the assistance of Julie Self for her efforts in assembling the final report. xiii

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EXECUTIVE SUMMARY The Awwa Research Foundation (AwwaRF) documented innovative practices in asset management by five North American drinking water utilities for the Global Water Research Coalition s (GWRC) international Compendium of Asset Management Case Studies. AwwaRF is a founding member of the GWRC, a global partnership of water research organizations. The Compendium will include drinking water and wastewater case studies from four or five countries. The Compendium will be compiled by the Water Research Commission (S. Africa) and will be available to all of the participating organizations. There are five North American Case Studies related to Drinking Water that serve as Best Management Practices in the area of utility Asset Management. The Case Studies represent utilities that are geographically diverse, vary in size from small to large, have different types of governance structures, and are all quite active in some or all parts of the Asset Management continuum. Seattle Public Utilities, Washington, USA, located in the Pacific Northwest of North America has one of the more mature Asset Management Programs in the USA. The focus of this Case Study is on the use of the Triple Bottom Line approach, which uses financial, social and environmental evaluation criteria to rate and select projects or actions. The capital decision making process is described with an example of how the Triple Bottom Line approach is used. American Water, a private utility, operates a small water utility in Connellsville, Pennsylvania, in the eastern USA. This Case Study focuses on an innovation approach for identifying leaks early in their development so that they can be repaired on a scheduled, non-emergency basis, before they become large enough to do significant damage. Acoustic sensors are used in conjunction with Automatic Meter Reading (AMR) systems to locate leaks and transmit the information to a central computer for evaluation and response. Las Vegas Valley Water District, a non-profit governmental subdivision of the State of Nevada, USA, is a quasi-municipal corporation. This Case Study describes how Las Vegas Valley Water District is using mobile technology best practice solutions to support specific areas of their Asset Management business processes. The focus of the Case Study relates to efficiently responding to rapid growth of the water system using mobile technology. The interaction of internal utility staff and systems with external users (developers) is described. EPCOR Water Services, Canada, provides water and wastewater services to more than 1 million people around Edmonton, Alberta, and Western Canada. This Case Study provides an overview of 30 years of development of EPCOR s Asset Management program, including key components and principles of their Geographic Information System. Key business processes and application areas that support effective asset management are described. Information on GIS development, hydraulic modeling, and water main renewal programs is summarized. Louisville Water Company, Kentucky, a medium sized utility, located in the southeastern USA, has been implementing a Main Replacement and Rehabilitation Program for the past 15 years. The Case Study describes the success and lessons learned from that long standing program. xv

Some 425 miles (684 kilometers) of pipe have been addressed since the program began. A pipe evaluation model with twenty-three criteria is used to decide whether a pipe is replaced or rehabilitated and what priority it will have with in that category. xvi

CHAPTER 1 SEATTLE PUBLIC UTILITIES CASE STUDY DECISION-MAKING FOR CAPITAL INVESTMENTS INTRODUCTION Seattle Public Utilities operates water supply, wastewater collection, drainage and solid waste collection utilities for the City of Seattle and surrounding communities in King County, Washington State, USA. The organization collectively serves a population of approximately 1.5 million people. Seattle Public Utilities owns assets valued at over US$4.5 billion (year 2007), including piping systems, large water reservoirs, water treatment plants, pump stations, roads and buildings. Since 2002 Seattle Public Utilities has put in place an ambitious program to manage these assets. The program now permeates the organization s decision-making processes. Although Seattle Public Utilities program has many noteworthy features, this case study will focus on the utility s organizational structure and on their process for defining, reviewing and approving capital projects, including application of a procedure for triple bottom line evaluation of costs and benefits. The triple bottom line addresses financial, social and environmental considerations in decision-making. BACKGROUND Seattle Public Utilities launched a major effort to apply asset management principles beginning in 2002. There were several drivers for this program, including: Concerns over the organization s financial position; Increased needs for spending on capital projects, operations and maintenance; Significant regulatory requirements in each of the utility s service lines; Continued aging of infrastructure; and Public interest in environmental protection. Seattle Public Utilities forged contacts with several utilities that had developed extensive asset management programs. These programs were adapted to meet Seattle Public Utilities own needs, regulatory environment and administrative context. In order to develop its program, the utility engaged in exchanges with Hunter Water Corporation in Australia that enabled staff from each utility to cross the Pacific for extended on-site interactions. Seattle Public Utilities developed a number of guidebooks and other materials posted on its intranet system to support the decision-making process. Staff charged with contributing to the process have access to detailed procedures, examples and information. ORGANIZATION AND MANAGEMENT In building its asset management program, Seattle Public Utilities gave careful consideration to how the organizational structure and management processes could support the program effectively. Under the leadership of the utility s Director, a reorganization was 1

undertaken, in part to advance this objective. One of the basic organizing principles was definition of two distinct roles: Specifiers and Service Providers. Specifiers plan, specify and are accountable for the delivery of utility and corporate services. They are responsible for making sure Seattle Public Utilities establishes and meets service levels, consistent with financial constraints and life cycle principles. In addition, Specifiers are responsible for ensuring that asset management principles are applied in making or recommending resource allocation decisions. Service Providers deliver the services defined in negotiated Service Agreements. They are accountable to the Specifier for producing all agreed deliverables and meeting the agreedupon scope, schedule, budget and performance requirements. Service Providers also work with Specifiers to determine appropriate work objectives, outcomes and/or options. Table 1.1 further describes these roles. Table 1.1 Roles of Specifiers and Service Providers An Asset Management Committee (AMC) was formed, comprised of senior management from across the organization. The AMC has review authority over service levels that are formally defined and monitors key performance indicators on a quarterly basis. The AMC also provides funding approval for all capital investments, and provides direct approval for all 2

projects costing over US$250,000. AMC has delegated funding approval to other committees and individuals for projects less than this amount. An asset management group was also formed within the Director s office to support the program, provide cross-functional integration and assist with translating concepts into actual operations. This group provides the following functions: Reinforces and institutionalizes asset management principles and advises senior management Creates consistent processes and accountabilities; Supports Specifiers in developing business cases and other products; Contributes analysis to optimize management of assets. Over the course of the past several years, the group has also had other functions, including: Conducting economic analysis; Developing performance management systems; Assisting with development of service levels and Service Agreements; Coordinating between utility lines of business and other branches of the organization; and Establishing a Facilities Assets Management group. These functions support asset-management planning and decision-making throughout the organization, including assistance in developing the Project Development Plans described below. Seattle Public Utilities views this as a process of culture change within the organization. Leadership from the Director and senior management has been essential in accomplishing this change. It is a multiple year process that hinges on effective communication of objectives and clear definition of roles and expectations throughout the entire organization. CAPITAL DECISION-MAKING AT SEATTLE PUBLIC UTILITIES The capital decision-making process includes a well-defined format for developing and presenting information, a structured review process involving the organization s senior management, explicit consideration of risk factors, and consistent application of triple-bottom line methodology. This section presents those elements and provides an example of how a project was analyzed. The Project Development Plan The capital decision making process is highly structured to ensure sound decisions are made using the best available information, consistent with Seattle Public Utilities policies. At the heart of this process is the Project Development Plan. 1 A Project Development Plan contains a number of elements including: 1 Seattle Public Utilities, undated, Quick Start Guide, Project Development Plans (unpublished internal document). 3

Project background and objective of the capital project. The objective includes two elements: 1) the function of the project in terms of the problem or opportunity it will address; and 2) the type of value created by solving that problem or realizing the opportunity. Discussion of the base case without the proposed project; and of other options for achieving the objective. Among other purposes, this discussion enables comparison of more capital-intensive solutions compared with solutions that have higher operational or maintenance costs. Economic analysis of the project options. Cost-effectiveness analysis is sufficient if the function is an absolute requirement (e.g., for regulatory compliance). For all other projects, a more extensive analysis is required to compare costs and benefits. Both types of analysis utilize full life-cycle costs. In addition, the cost-benefit analysis uses a triple bottom line evaluation and a review of how sensitive results are to differing assumptions. Identification and characterization of risk factors for each option, including the noaction option. Risk factors are quantified where possible (e.g., range of effects, number of people affected, etc.). In addition a risk cost is estimated and incorporated in the cost-benefit analysis. Recommendation of a single project option, together with budget impacts and recommended implementation schedule. Seattle Public Utilities has developed standard templates for the analysis and Project Development Plan document to provide a common basis for the many staff involved in preparing and reviewing them. Participants in Capital Project Decision-Making The process for developing and reviewing Project Development Plans is also highly structured. The Project Development Plan (PDP) is initiated and directed by a Specifier. Each PDP is assigned an Executive Sponsor. The written PDP documents the problem statement and business case for the proposed investment. In the process of developing the problem statement, the business case, and the PDP, the Specifier receives assistance from staff representing different functions within the organization. These include a financial performance manager, field operations liaison, economist and corporate asset management reviewer. Other reviewers may also play a part, such as scientists, security specialists and risk analysts. Each of these contributors has a defined role in shaping the PDP. Once prepared, all Project Development Plans for investments exceeding US$250,000 are reviewed by Seattle Public Utilities Asset Management Committee, comprised of senior management within the organization. The committee first reviews the Project Development Plan prior to the preliminary engineering stage. If it is approved, the committee reviews an updated and more detailed version of the Project Development Plan again prior to the design and construction stage. 4

Triple Bottom Line Evaluation Economic analysis of proposed projects is structured to address three categories of costs and benefits: financial, social, and environmental. These three categories have become known as the triple bottom line. Traditional analysis of capital projects by public agencies focused primarily on the financial component and functional benefits internal to the utility. In contrast, the triple bottom line evaluation incorporates social and environmental effects in the project evaluation. This can be challenging, as costs and benefits in the social and environmental arenas are inherently hard to define and quantify. At Seattle Public Utilities the economist supporting each Project Development Plan assists the project Specifier to identify and evaluate these effects. Guidance on cost/benefit analysis at Seattle Public Utilities directs staff to include both internal and external costs and benefits. Internal costs are those incurred by ratepayers of Seattle Public Utilities in carrying out the project. Internal benefits are those achieved for Seattle Public Utilities customers. External costs and benefits are those affecting other parties, such as the public at large, other City departments, other jurisdictions or Indian tribes, as well as the natural environment. This comprehensive analysis enables Seattle Public Utilities to make wellinformed choices that support efficient allocation of both its own resources and societal resources, and also to address equity issues in its decisions. Seattle Public Utilities develops a risk signature for each project, which is also incorporated in the evaluation. Risk analysis may be used to quantify risks in any of the three categories: financial, social, or environmental. For all risk signatures, a risk cost is developed and included in the cost/benefit comparison. Problems assigned a high or critical risk signature require more thorough analysis, as well as consideration of risk mitigation strategies. Seattle Public Utilities uses various techniques to quantify costs and benefits, and to translate them into monetary values. Monetization techniques must be matched with the type of cost or benefit involved. Techniques include direct market valuation; indirect market valuation such as hedonic estimation, travel-cost methodology and other techniques; and contingent valuation using surveys for non-market values. Risk cost is also monetized using an analysis of possible outcomes and the probabilities of those outcomes. Not every project warrants microscopic examination of all costs and benefits. The level of analysis must be matched to the cost of the investment, and the value of the information needed in the project evaluation. For example, in some cases the analysis can be completed and decisions made without converting certain costs and benefits to monetary values. This simplifies the procedure considerably. PROJECT EXAMPLE One of the many projects analyzed using this procedure in recent years was the proposal to modify temporary pumping facilities used in dry years to utilize inaccessible storage capacity within Seattle Public Utilities Morse Lake impoundment. Under normal operating conditions, the water level in Morse Lake fluctuates between 1532 feet (466.9 meters) and 1563 feet (476.4 meters) above sea level. Water stored below 1532 feet (466.9 meters) cannot be accessed using gravity flow. Seattle Public Utilities operates two sets of pumps mounted on barges to access water below 1532 feet (466.9 meters). However this practice has proven problematic for a number of reasons. Activating the pumps requires significant lead time, and it is difficult to know in any given year whether they will actually be needed. As a result, mobilization of the 5

pumps, with significant costs, is necessary even in many years when final water supply conditions do not require use of inaccessible storage capacity in Morse Lake (Figure 1.1). 1548 1546 Morse Lake Minimum Elevation (Feet) 1544 1542 1540 1538 1536 1534 Minimum Water Surface Elevations and Their Probabilities Given 150 MGD Average Annual Demand Begin Pumping Mobilize Pumps Notice to Proceed 1532 0% 2% 4% 6% 8% 10% 12%14% 16%18% 20%22%24% 26%28% 30%32% 34%36% 38%40% Probability Note: 150 MGD = 568 megaliters per day Figure 1.1 Expected Frequency of Minimum Water Surface Elevations, Morse Lake Reservoir There are several other risks associated with the current system for tapping inaccessible storage capacity. Fuel storage needed for pump generators poses risks to water quality. The use of barge-mounted pumps poses inherent hazards on a large lake situated in a mountainous area where high winds can occur. Moreover, the pumps themselves are aging and could fail at a time when they are needed. Given this situation, Seattle Public Utilities has examined a range of alternatives. After initial consideration of nine options, the following four were analyzed in the most recent Project Development Plan: Option 0: Retain status quo; Option 1: Improve Existing System; Option 5: Land-based Pump Station and Land Discharge; and Option 7: Submersible Pumps with Underwater Discharges to Existing Dike. Costs and benefits of each option were analyzed, and net present value was calculated to allow for comparisons. Benefits that were key to making a choice among options included the avoidance of false mobilization costs, and reductions in risks. In addition, as a result of the risks associated with the current system, Seattle Public Utilities water managers are forced to call for voluntary curtailment of water usage much more frequently than they would with more 6

reliable pumping facilities. Therefore, consideration of the value of reducing unnecessary curtailments became a key factor in the cost/benefit analysis. This value hinges largely on social costs imposed on the public during curtailments, a consideration that is captured in the triple bottom line methodology. Figure 1.2 displays how costs and benefits of the three action options (excluding status quo) compare, without considering the social costs of curtailment. When this factor is not included, the capital costs associated with improving the facilities outweigh the calculated benefits by US$9 to 16 million (Table 1.2). Present Value CIP Costs of Pumping Alternatives (Over and Above "Status Quo" CIP Costs) $25,000,000 Present Value Benefits of Pumping Alternatives (Benefits = Avoided Costs) $25,000,000 $20,000,000 $21,802,869 $21,524,191 $20,000,000 Benefits consist of reductions in: $15,000,000 $15,000,000 Component Failure Risk Costs $10,000,000 $12,475,281 $10,000,000 Pumping Costs $5,000,000 $5,000,000 $3,026,359 $5,780,646 $5,138,856 Mobilization Costs O&M Costs $0 Option 1 Option 5 Option 7 $0 Option 1 Option 5 Option 7 Note: All Cost in US$ CIP Capital Improvement Program Figure 1.2 Cost and Benefits of the 3 Options (Without Social Benefits) However, incorporation of social benefits yields a substantially different result. Curtailments require customers to make sacrifices such as accepting brown lawns at residences and public parks, not washing cars at the desired frequency, reducing showering, etc. New landscaping projects are deferred and the landscape industry experiences economic losses. SPU s economists analyzed this in terms of loss of consumer surplus based on the utility s demand curve for water. Taking into account the expected frequency of curtailments (one year in eight) the analysis estimated that Seattle Public Utilities customers faced an annualized cost of US$2.7 million from curtailments. Projected over 50 years and discounted at five percent, this translated into a present value cost of US$53 million. This factor alone was enough to offset the apparent differential between costs and benefits discussed above. With this factor included, the net present values of both Options 5 and 7 are approximately US$37 million (Table 1.2). 7

Table 1.2 Results of Cost/Benefit Analysis, US$ PV of Costs* CIP O&M Mobilization Pumping Risk of Component Failure Unnecessary Curtailments Status Quo Option 1 Option 5 Option 7 $63,328,186 $3,363,624 $4,784,584 $1,240,097 $285,138 $581,431 $53,073,312 $72,777,109 $15,838,905 $1,782,536 $1,240,097 $285,138 $557,121 $53,073,312 $26,277,097 $25,166,493 $588,150 $194,123 $192,041 $136,291 N/A $26,640,209 $24,887,815 $775,899 $416,744 $228,749 $331,001 N/A Costs Net of Status Quo CIP $0 $0 $12,475,281 $12,475,281 $21,802,869 $21,802,869 $21,524,191 $21,524,191 Benefits (Avoided Costs) Reduced O&M Reduced Mobilization Reduced Pumping Costs Reduced Failure Risks Eliminate Curtailments $0 $0 $0 $0 $0 $0 $3,026,359 $3,002,048 $0 $0 $24,310 $0 $58,853,957 $4,196,434 $1,045,974 $93,097 $445,140 $53,073,312 $58,212,168 $4,008,685 $823,354 $56,388 $250,430 $53,073,312 NET PRESENT VALUE $0 -$9,448,923 $37,051,089 $36,687,977 NPV Excluding Curtailment** $0 -$9,448,923 -$16,022,223 -$16,385,335 * Includes the cost of unnecessary curtailments. ** i.e., the Net Present Value excluding the benefits of eliminating unnecessary curtailments. N/A Not Applicable The Project Development Plan summarizing this analysis also provided a discussion of unquantified risk costs. If curtailment were not considered in the analysis, decision makers could see that the value of avoided risk would need to be at least US$9 to 16 million in order to justify the investment (Table 1.2). The Project Development Plan also includes a sensitivity analysis, that shows the results are robust to changes in assumptions regarding discount rates, the frequency of curtailments, and other factors. As a result of this analysis, Option 5 was selected for implementation. SUMMARY OF RESULTS The procedure outlined in this case study offers Seattle Public Utilities a consistent and transparent process for making decisions on capital projects. All capital investments greater than US$250,000 now are required to go through this process prior to approval. The AMC, comprised of senior management at Seattle Public Utilities, is able to make sound decisions based on a well documented business case. Project expectations are well defined and alternatives are thoroughly examined. As demonstrated by the example above, consideration of the full range of costs and benefits using triple bottom line concepts leads to better decisions that are fully supported with facts and analysis. Putting this program in place has not been without challenges. It has taken considerable effort to train staff in multiple branches of the organization in the techniques described here. 8

However, Seattle Public Utilities management believes the payoffs from this approach are worth the effort. Together with other aspects of the utility s asset management program, this procedure has enabled Seattle Public Utilities to reduce capital costs. Capital spending needs covering the period from 2003 to 2008 were reduced approximately 20 percent while remaining within acceptable risk tolerances. Together with reductions in costs of operations and maintenance, this has also reduced the predicted growth in customer rates. In 2002 the monthly bill for all four utility services for a typical single-family residence was projected to reach US$127 by year 2010. A new forecast compiled in 2004 when the asset management program had been developed showed the 2010 average residential rate to be US$120, or 5.5 percent less than originally forecast 2. For more information on triple bottom line, see the report sponsored by Awwa Research Foundation (AwwaRF) and Commonwealth Scientific and Industrial Research Organisation (CSIRO) (http://www.awwarf.org/research/topicsandprojects/execsum/3125.aspx): Kenway, S., C. Howe, and S. Maheepala. 2007. Triple Bottom Line Reporting of Sustainable Water Utility Performance (Project #3125, Report 91179). USA: Awwa Research Foundation and American Water Works Association and United Kingdom: International Water Association. 2 Martin, Terry, May 2006, Asset Management at Seattle Public Utilities, the Australian Approach (unpublished presentation). 9

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CHAPTER 2 AMERICAN WATER CASE STUDY CONTINUOUS LEAK DETECTION TO MONITOR CONDITION OF WATER DISTRIBUTION PIPES INTRODUCTION This case study involves American Water, a private company delivering water and wastewater services to over 300 water systems throughout the USA. American Water has been pilot-testing a new approach to monitoring the condition of buried water distribution piping. The practice utilizes acoustic technology to detect leakage, coupled with daily data transmission using a fixed-network automatic meter reading (AMR) system. This enables continuous data collection and immediate detection of small leaks in system piping. Continuous leak detection enables American Water to identify small leaks before they become major main breaks, and also enables proactive scheduling of repair or replacement of problem mains. This reduces the cost of managing water mains as they age. This case study reviews American Water s experience in Connellsville, Pennsylvania, where the demonstration of technology occurred. 3 BACKGROUND Searching for Methods to Find Leaks Main breaks drive up maintenance costs, disrupt customer service, and waste water. A typical practice in most water systems is to react to main breaks when water is noticed at the surface or becomes evident in some other way. However, leaks can occur for a long period of time before being detected. Continuous low level water leakage often erodes adjacent soils and damages utilities and roads, raising the cost of repair and restoration once the leak becomes large enough to be found. In some instances leaks also lead to soil movements that damage property and present public safety hazards. In addition, main breaks identified through traditional methods can require an immediate response, with repair work performed after hours or on weekends or holidays when labor costs are higher than normal working hours. Some utilities conduct periodic leak surveys. However American Water has found these programs to be expensive, often bearing poor results and providing only a snapshot of leaks identified at that time. Asset managers at American Water became interested in developing an improved predictive approach because this offers a potential to achieve several benefits: 1. Reduce the damage caused by main breaks, thereby reducing costs of repair and restoration; 2. Permit early action to repair failing pipes and extend their lifespan; 3. Allow planned scheduling of repairs to failing mains, reducing labor costs for these repairs; 3 While initiated independently by American Water, the work documented in this case study is also being utilized in a tailored collaboration project funded by AwwaRF in partnership with the National Research Council, Canada. (AwwaRF Project 3183.) 11

4. Reduce unplanned water supply interruptions, improving customer service and fire protection; and 5. Reduce water losses, reducing the cost of supply and supporting overall resource management objectives. Various proactive approaches to predicting main breaks can be applied. However there is no system that can really predict where and when a given pipe will fail. Predictive approaches depend on a variety of local factors such as soil type, pipe material, water chemistry and temperature. These factors hamper the prediction accuracy of available techniques. Statistical models require considerable data and are difficult to transfer from one locale to another. A monitoring program for pipe leaks was selected for pilot demonstration testing at full scale because of continuing improvements in the necessary technologies and the strong relationship between pipe leaks and complete pipe failure. Practice Demonstrated in Connellsville, Pennsylvania, USA Connellsville is located in the southwestern corner of Pennsylvania in a steep valley. Water supply for Connellsville is purchased from an adjacent system, at a cost that is relatively high in the US context: US$1.94 per thousand gallons (US$0.51 per thousand liters). The water source is the Youghiogheny River. This source can experience sharp changes in temperature throughout the year. Rapidly falling temperatures in the source water can introduce stresses in the metal distribution pipes, thus leading to a higher incidence of water main leaks in the fall and winter months. American Water serves approximately 12,000 people in Connellsville. The distribution system has about 57 miles (91.7 kilometers) of water main. The town was established approximately 200 years ago and has a history of coal mining and related industries. Two-thirds of the pipe network is over 100 years old and includes a high proportion of galvanized, two-inch diameter piping. Prior to the pilot demonstration program described in this case study, non-revenue water was approximately 27 percent of total water purchased. Non-revenue water included leakage as well as intentional uses such as fire flows, flushing and blowoffs used to alleviate aesthetic problems with water quality. CONTINUOUS LEAK DETECTION PROGRAM There are two key elements to American Water s continuous leak detection program in Connellsville. First, the program uses continuous acoustic monitoring devices and associated data processing software. Second, the program uses an AMR system to relay data from the field to a central computer where analysts can process and interpret the acoustic data. Both of these elements are described here. 12

Acoustic Monitoring The Connellsville pilot system uses an acoustic monitoring system called MLOG, provided by Flow Metrix of Maynard, Massachusetts. While this case study describes MLOG, other acoustic monitoring systems can also be tailored to this type of application. Figure 2.1 displays an MLOG sensor. Figure 2.1 MLOG Sensor (at left) Adjacent to a Water Meter The acoustic sensors were attached to a subset of service lines in close proximity to service meters. Approximately 500 sensors were placed at regular intervals throughout the Connellsville distribution system, which has about 5,000 service connections. With a listening range of 300 to 500 feet (about 91 to 153 meters), this enabled acoustic coverage of most of the distribution system. The sensors record acoustic data each night. Data from the sensor network is compiled daily and analyzed at a central computer to identify possible leaks and assist field crews in determining locations for field visits. A crew comprised of an analyst and two field staff was formed to investigate suspected leaks. Careful analysis is required to distinguish noise emitted from leaks and noise emitted by water uses, leaking plumbing fixtures on the customer s property, and background noise from non-water equipment such as power transformers, heaters, compressors and air conditioners. However, American Water operations staff were quickly able to learn how to distinguish acoustic characteristics that represented leaks, and no formal training on this was needed. A leak investigator was assigned to distinguish actual leaks from false positives through a data correlation procedure involving data from several acoustic sensors as well as AMR data that helped distinguish leaks on the customer property. A brief field visit for remaining candidate leaks serves to confirm whether excavation is warranted. Once a leak is confirmed, a repair crew excavates and fixes the leaking pipe, usually within 24 to 72 hours of initial detection. Figure 2.2 displays typical data from the acoustic sensor. The graph shows a leak detected on December 7 and repaired December 19. The yellow line represents a full range of frequencies detected by the sensors, while the gray and blue lines depict specific frequency ranges that correlate with different types of sounds detected. A dotted red line displays 13

background noise. These patterns help the analyst distinguish leaks from other noises, and determine what type of leak to look for. Figure 2.2 Graphic Display of Acoustic Data The sensors are capable of detecting leaks as low as one gallon per minute (3.785 liters per minute). Batteries are used to power the sensors. Sensor life is limited by battery life, expected to be 15 years. Automatic Meter Reading (AMR) System The Connellsville pilot demonstration uses an AMR system to transmit acoustic data to a central computer. The Connellsville system is a fixed network AMR provided by Hexagram (Cleveland, OH). Mobile radio-read systems can also be deployed. One advantage of coupling the acoustic system with an AMR system is that metered flows related to on-site water uses and plumbing fixture leaks can be readily separated from other acoustic data. This is because high-resolution data on customer use (flow through the meter) can be compared directly with the acoustic record. Results from Connellsville The number of leaks identified for repair during the pilot demonstration increased by 83 percent, compared with a pre-pilot period. There were 119 leaks detected during the pilot period, compared with 65 over the pre-pilot period. This comparison covers the same number of months and same seasonal conditions. 14

More than half of the leaks identified in 2005 (24 of 46) were repaired before leaking water surfaced. Another 10 leaks were identified by the acoustic sensors, but surfaced before repairs were made. Twelve leaks surfaced without being identified by the acoustic sensors. Some of these apparently surfaced almost immediately after the leak occurred. Similar results were experienced in 2006. Non-revenue water has been reduced by 16 percent (from approximately 27 percent before the pilot began, to only 11 percent now). This has resulted from a combination of leak reduction (13.5 percent) and an effort to reduce system flushing for water quality purposes (2.5 percent). This has reduced the operational cost of purchasing water from an adjacent water authority by nearly US$180,000 used per year. One important advantage of the program is that leak repairs can be scheduled to be performed while leaks remain small. This reduces damage to road substrate, adjoining utilities, and properties, which reduces restoration costs. Scheduling repairs also reduces overtime labor and helps to control disruption experienced by water customers. In addition, by permitting identification and repair of leaks earlier, field repairs during the coldest months can be reduced. This helps to reduce repair costs that tend to be higher under freezing conditions and more limited daylight hours. As a side benefit, the acoustic monitoring has also been useful in identifying leaks occurring on the customer s property. This can allow notification to customers of leaks they are experiencing, prior to the customer receiving a large water bill. This improved customer service is expected to reduce customer complaints related to unexpectedly high water bills. There are limitations to this program. Even with careful analysis, false positives can still occur. However, virtually all false positives are eliminated from consideration based on either careful data analysis or a brief field visit. In addition, not every leak that surfaced in Connellsville was detected by the acoustic system. Also, the acoustic signal is less robust when plastic piping is present. With the detailed leak information available from the acoustic monitoring system, more intensive analysis of main breaks is being explored. Since leaks can be identified as soon as they occur, the timing and location of leaks can be correlated with transient factors such as changes in water temperature and surge conditions, as well as static factors such as pipe material, age and soil type. With more leak repairs, data can also be gathered on the physical characteristics of the leaking pipe. These data also permit more in-depth analysis of the economics of allowing leaks to continue versus making immediate repairs. All of these elements contribute to improved management of aging water mains within American Water s system. The utility plans to continue evaluating competing equipment and vendors, for both the acoustic sensors and AMR system. SUMMARY OF RESULTS The pilot demonstration project in Connellsville has been quite successful in improving condition monitoring of water mains. American Water has reduced its unit cost for repairing main breaks by an estimated US$400 for each break repaired. In addition, the utility s estimates show costs associated with expensive purchased water have been cut by nearly US$180,000 per year by reducing water losses. The utility estimates that a full system for AMR and acoustic monitoring would cost approximately US$750,000 for this system. This includes the cost of meter replacement. The savings in purchased water resulting from reduced water losses provide a financial benefit and 15

lowers the payback period for installing AMR from approximately twelve years to three years in the Connellsville system (the payback calculation incorporates additional cost savings from reduced meter-reading and customer service). In addition, the program now provides an improved understanding of system-wide main condition and the specific static and transient conditions that cause main breaks. The system is not 100 percent accurate and undetected main breaks occur. Research indicates that about 25 percent of the leaks in Connellsville come to the surface too quickly for acoustic detection to permit advance warning. This is especially true of circumferential breaks in cast iron water mains. Despite these limitations, American Water sees considerable advantages to using continuous acoustic monitoring as an element of its condition monitoring program for buried water mains. The utility is now experimenting with transferring this technology to larger water systems, and will continue evaluating financial payoffs and other benefits for systems with different piping and service area characteristics. For more information on this project by American Water, Awwa Research Foundation, and National Research Centre (Canada), please refer to: Awwa Research Foundation (AwwaRF). 2008. Project Snapshot: Continuous System Leak Monitoring--From Start To Repair #3183. [Online]. Available: <http://www.awwarf.org/research/topicsandprojects/projectsnapshot.aspx?pn=3183>. Cited April 1, 2008] 16

CHAPTER 3 LAS VEGAS VALLEY WATER DISTRICT CASE STUDY USE OF ELECTRONIC MOBILE AND FIELD SOLUTIONS BY LAS VEGAS VALLEY WATER DISTRICT INTRODUCTION The Las Vegas Valley Water District (District) was formed as a non-profit governmental subdivision of the State of Nevada, USA, and is a quasi-municipal corporation that was created by special act of the Nevada Legislature in 1947. The District was established to acquire and distribute water to customers in the Las Vegas Valley, including the unincorporated metropolitan area of Clark County and the City of Las Vegas. The District began operations on July 1, 1954 and helped build the City of Las Vegas water delivery system. The District now provides water to more than one million people in Southern Nevada. This area is growing rapidly, and responding efficiently to development interests is an important aspect of the District s day-to-day operations and long term asset management program. BACKGROUND The District formed their Asset Management (AM) group in early 2003. The AM group is a stand-alone entity that resides within the District s operations department. The department s strategic plan states that the asset management goal is: To develop, communicate, and integrate a management strategy for assets and maintenance that emphasizes return on investment and sustainability of infrastructure while achieving desired levels of service to our customers over the lifecycle of District assets. A successful AM program relies on efficient data collection during the entire lifecycles of assets. The District has initiated numerous mobile and field initiatives utilizing both wireless and docking technologies to assist in AM and customer service. The focus of this discussion is on the Mobile Inspection Data Acquisition System (MIDAS) and the ViryaNet System, which are an integral part of the daily work of District field staff. In addition to these two mobile solutions, four field applications are briefly discussed. The District s mobile and field solution systems described in this case study are used to collect many pieces of data that support related utility functions. These include acceptance of developer construction improvements, inspection processes, meter reading and services, management information, risk assessment and risk management. MIDAS Mobile Inspection Data Acquisition System MIDAS was jointly developed by the District and the private company, Gatekeeper Systems of Pasadena, California using today s technology for both system development and system use. MIDAS facilitates the documentation required as District inspectors perform more than 100 field inspections through the development life of a single, new subdivision or commercial property. On average, the utility staff conducts 300 inspections per day. At any 17

given time, the District may track about 1,150 developer projects. Thus, this is a substantial workload requiring rapid response and accurate record keeping. The District has deployed 30 mobile units on Panasonic Toughbook laptop computers. The District selected this ruggedized computer because inspectors spend a substantial amount of time on construction sites and need equipment that can endure tough environmental conditions. Each truck is equipped for wireless connectivity (via cell phone towers, using mobile wireless broadband services provided by telephone companies) and is capable of determining exact location using Global Positioning System (GPS). As the District service area is rapidly expanding, the number of inspections also increases. The MIDAS system enables each inspector to perform more inspections daily than they did previously since they do not need to spend as much time in the office at the beginning and the end of the day. The system did not eliminate the need to hire more inspectors but it did hold the required number of new inspectors down. Also, MIDAS helps ensure relevant inspection data is collected and documented in the field. This is accomplished by structured inspection forms that require completion of relevant inspection data fields before transmittal. MIDAS contains information on Pass-Fail status, alerts an inspector about the need for an inspection and is used to collect related additional data regarding the project such as the results of pressure and chlorine tests. MIDAS also enables the inspector to obtain information on other projects allowing them to fill in for absent inspectors when needed or address the needs of customers more responsively. MIDAS is also used by inspectors to schedule GPS data collection by the GPS/Survey staff. GPS data is collected the day following the inspection and is available for interested technical staff within 24 hours. As a result of having this timely GPS data, appurtenances can be located in areas of heavy construction where there are few monuments such as curb and gutter from which to locate facilities. Inspection data is evaluated to determine trends that may be associated with one or more contractors or developers. A trend in the frequency of failed inspections relating to some aspect of a construction job may indicate that a contractor or subcontractor needs to change the way work is done in future jobs. Development of MIDAS followed an initial project phase where system requirements were documented. Requirements recognized both technical considerations (e.g., interface with existing legacy system) and user s input. To ensure system longevity, scalability and adaptability to future needs, the District and Gatekeeper developed MIDAS using industry standard software. Some of the advanced technical solutions employed in MIDAS development and use are presented as follows: The system leverages wireless and store-forward technologies that accommodate potential loss of coverage. If the wireless connection is lost, the system retains the data gathered while the inspector continues work. When the wireless is reconnected, data is transferred between the laptop and the office system asynchronously without inspector intervention. The system was built with user-definable validation data fields (drop-down field selection tables), allowing for validation of data entered by field inspectors. When a particular inspection type is selected on the laptop, only the associated fields are displayed on screen. This dynamic data field display means that inspectors 18

need only view and complete fields required for the inspection they are currently performing. The system allows inspectors to download and view any inspection in the system and transfer any inspection data to another inspector as required. For example, an inspection that is not started can be reassigned to another inspector who will be onsite another day. The system is easy to use, as reported by the inspectors. The Infor Public Sector Essentials system (product name) supports the developer permitting and inspection process. Formerly, this system was called the Hansen Technologies Permitting System. Infor acquired Hansen Technologies in June 2007. When an inspection results in a failure or non-approval, the system automatically issues a follow-up quality assurance inspection. When the cause of a failing inspection is corrected, the system shows the quality assurance inspection is resolved. Prior to a project s acceptance, the Infor Public Sector Essentials system helps ensure that all of the project s quality assurance exceptions are settled. Facility View, the District s mapping application associated with MIDAS, provides infrastructure and facility layers for use in the field. The system uses Autodesk Map Guide (product name) and Gatekeeper s Navigate Software (product name) as the user interface. Inspectors may access digital drawings through an encrypted system tied to the Facility View system. This includes approved developer drawings and other drawings associated with the inspection. Complimentary to the MIDAS and Infor systems, contractors or developers can log into an Internet site and request inspections. In the month of April 2007 alone, there were approximately 1,000 developer hits on the system. Before this system was automated, developers had to schedule a request before 2:00 PM (1400 hours) the day before the inspection. The new system has no cutoff time. The District estimates that the return on their investment was achieved in six months. New Inspectors receive their training on the MIDAS system from more experienced inspectors who already use MIDAS. ViryaNet ServiceHub Mobile Application Mobile Work Order Management Approximately 200 users from eight work areas currently utilize the ViryaNet ServiceHub Mobile Application (product name) in their day-to-day operations. ViryaNet is a customizable off-the-shelf application. Meter Field Services uses ViryaNet for meter reading and field activity work sent from the customer care and billing system. Completion data is captured and the appropriate next action is queued in the customer care system. The Meter Shop uses ViryaNet to dispatch and provide completion data for preventative maintenance and unscheduled work orders sent from Avantis (product name), the District s CMMS (Computerized Maintenance Management System) and asset management system. The Facilities Maintenance and Grounds Maintenance area uses ViryaNet to dispatch and provide completion data for work orders created in the Avantis system. Fleet Services uses ViryaNet to dispatch and provide completion data for preventative maintenance and unscheduled work orders sent from the Avanitis system. Distribution field crews and preventative maintenance groups utilize 19

ViryaNet to report completion information which is routed through Avanits or through the customer care and billing system. Customer Service uses ViryaNet for investigations, bench tests and high consumption work types originating from the customer care and billing system. Water Waste staff, who address conservation measures and enforcement, uses ViryaNet for field activity work sent from the customer care and billing system as well as to create water waste investigation records resulting from their patrols. Links provided within ViryaNet to in-house developed applications provide mobile field employees with the ability to fully research historical information real-time in the field. District digital assets have been leveraged by integrating ViryaNet into host applications such as the customer care and billing system, Avantis and the time entry/time keeping system. The hardware used is a combination of Panasonic Toughbooks and the General Dynamics GoBook XR-1 rugged wireless notebooks. These units are mounted in the trucks and connected to the network through SecurID (product name) over a telephone company s wireless network with internal aircards or mounted brick modems. Other Field Solution Systems Used at the District In addition to the MIDAS and ViryaNet mobile solutions, the District uses a number of field solution systems which are briefly described below: Locator System Call USA The District uses Call USA (product name) to automate the location and marking of buried assets as required by Nevada revised statues (NRS) 455.080 455.180. The system automatically receives, maps and dispatches call before you dig tickets (requests for information) to facility locators in the field for disposition. FacilityView is also integrated with this application for access to maps and engineering record drawings in the field. Firefly AMR Mobile Solution The Automatic Meter Reading (product name) system is used to manage and read water meters. The District is currently deploying the Datamatic AMR radio system solution. Datamatic optical sensor Fireflies are being attached to all of the District's existing straight reading water meters. The Automatic Meter Reading system was piloted for nearly two years before implementing full deployment. The District's 352,000 residential, commercial and industrial meters should all be transitioned to mobile radio read capability by June 2008. The Fireflies not only enable the District to collect monthly meter reads for billing purposes but maintain 74 days of actual water consumption data on site for use in customer service and conservation efforts. Nine mobile receivers now perform the previous functions of 25 manual meter readers and the new system has eliminated all safety issues related to confined space entry. The system also notifies applicable staff of potential on site consumer leaks by identifying all accounts that record a minimum 10 gallons (37.9 liters) per hour usage for 24 hours prior to reading. The District indicates that a cost / benefit analysis identified some US$31 million in direct hard cost savings over the life of the hardware with an additional US$44 million in related benefits to its customer service and conservation divisions. 20

Distribution Permalog Logger System Preventive Asset Management Tool The Permalog (product name) units are deployed in areas of the distribution system to provide continuous monitoring of leakage. Easily installed onto a valve s operating nut inside a valve chamber, they are retained in place by a strong magnet. Each Permalog unit adapts itself automatically to its environment. As soon as a possible leak is detected, the Permalog unit enters an alarm state and transmits a radio signal to indicate a potential "LEAK" condition. These radio signals are collected using specially equipped vehicles and then uploaded into network applications for analysis. From there, work orders are created for suspected leaks and sent electronically to the ViryaNet mobile application to be assigned for investigation. Since 2004 when the city officially went on a stage 2 drought alert, the District detected just over 1,000 underground leaks using Permalog and by conservative methods through mid 2007. Assuming an average leak rate of two gallons (7.6 liters) per minute, the District estimates that it saved 282 acre feet (347,706 m 3 ) of water in that period. Wachs System Preventive Asset Management Tool for Valves The Wachs system (product name) is used to exercise valves and detect variance in torque during the exercising of the valves throughout the District s distribution system. The valve turning crank mounted on a truck senses the torque at 1/5 of a turn and records the torque in a data box. Readings are used to predict a valve failure enabling the District to be proactive in valve repair and replacement. In more detail, the valves are exercised (turned) on a regular basis throughout the distribution system. The District implements this preventative proactive maintenance program to help ensure that the valves will function to isolate a water main if it is breached. District valves are exercised at least once a year for critical valves, at least once every three years for semicritical valves, and at least once every five years for non-critical valves to keep them from seizing up. Several things can go wrong with a valve including bent shafts, worn seals, and unexpected corrosion, which can impair proper operation. As the field crew exercises the valve, they will open and close it several times, counting the turns. The possible number of turns is specified in the valve maintenance literature. As the valve turns, the required torque is measured in five equal points of a circumference. The torque is measured when opening and closing. Engineers then analyze the turning torque data to determine if there are any malfunctions with a valve. All of this information leads to a decision on whether to replace the valve or repair it. Torque patterns are often consistent with specific problems. If an engineer recognizes one or more of those patterns in the data, a fairly good diagnosis of a problem can be made. SUMMARY OF RESULTS The District has invested in and applied cutting edge, state of the art technology in both its day to day operations and its AM program. This investment coupled with the wide spread acceptance and use by District staff, has increased efficiency, will save millions of dollars in operating costs, and facilitates the collection and integration of data for use in improving AM programs. MIDAS enables District inspectors to manage their workloads efficiently and effectively in the field where they spend most of their time, as well as engender more effective business processes. The many benefits of MIDAS include: 21

Developers can enter MIDAS from their own office or remote locations and request inspections automatically one day ahead. Dispatchers send inspection related information directly to inspectors in the field based on the location assignments of the inspector. GPS modem boxes in the inspectors trucks identify inspectors locations. The use of data field validation means inspector s reports contain more relevant details, are easier to understand (not subject to illegible hand writing), and are completed on time. Inspection results are stored on each inspector s laptop as well as the Infor system, so that the results are always available to the inspector. This saves time, as inspectors do not have to return to the office to find the needed results or forms. MIDAS built in business rules ensure that failed inspections requiring additional work is completed. Developers must pass a prerequisite inspection before a successor inspection can be requested. Because completed inspections are immediately uploaded from the laptop to the office system, real-time inspections are available for developer viewing almost as soon as the inspection is complete. While the Inspection Quality Assurance team executes quality control checks on completed inspections, they also gather GPS data points for each facility. The Inspection Quality Assurance team has been able complete many more quality checks since using the new system and the data are available quicker using the wireless communications. The field mapping integration enables inspectors to know the field location of all infrastructure nodes for a safer inspection process. Using GPS, allows all pipes, valves, vaults and hydrants to be positioned for each project. The system also allows verification and redlining (corrections) to be performed in the field to reduce errors on the as-built drawings. Before MIDAS was automated, developers had to schedule a request before 2:00 PM (1400 hours). The new system has no cut-off time. The District estimates that the return on their investment was achieved in six months. ViryaNet connects approximately 200 users from eight work areas with host system data and real-time access to the District s digital assets. Dispatchers, crew leads, supervisors and managers have access to real-time, meaningful data on the work being performed and on the workforce while they perform the work. The benefits of ViryaNet include: The field crews can stay connected to the mobile system to receive newly dispatched work and provide updates on completed work throughout the day without having to receive phone calls or return to the office in the middle of the day. The mobile user has control over how to receive and process work throughout the day. New work can be created and automatically dispatched by mobile field employees or can be created by office employees in the host system. The user also can download work, process the orders offline then reconnect to upload completed work and receive new orders. 22

The field solution systems used by the District have provided the following positive results: The Locator System has reduced the work time by two to three hours per location based on the ability to pre-sort drawings and display them in the field. The Wachs and Permalog logger activities are operations and maintenance practices oriented towards reducing the risk of system failure. The Wachs system is a tool used in preventive maintenance on the water main valves in the water system. The Permalog logger system is a tool to help identify leaks in the water mains while they are small. Both the Permalog logger and Wachs systems provide preventive asset management information that has enabled the District to resolve leaks and valve problems in a proactive, rather than reactive manner. The Firefly AMR system detects water meter problems early, and enables the District to proactively repair or replace the suspect meter. For more information on the use of field computing systems in the USA, please refer to the ongoing project funded by Awwa Research Foundation and the San Francisco Public Utilities Commission.: Awwa Research Foundation (AwwaRF). 2008. Project Snapshot: Field Computing Applications and Wireless Technologies for Water Utilities #3178. [Online]. Available: <http://www.awwarf.org/research/topicsandprojects/projectsnapshot.aspx?pn=3178>. Cited April 1, 2008] 23

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CHAPTER 4 EPCOR WATER SERVICES CASE STUDY THE USE OF GIS TO SUPPORT EPCOR S BUSINESS PROCESSES INTRODUCTION EPCOR Water Services provides water and wastewater services to over one million people in the more than 50 communities around Edmonton, Alberta, Canada and across Western Canada. EPCOR s 450 water professionals manage treatment plants and a network of pipelines that span more than 3,400 kilometers (2,112 miles). In addition to their Edmonton service area, EPCOR also serves: British Columbia, Canada: communities of Port Hardy, Sooke, White Rock, the French Creek area of the Regional District of Nanaimo, and the Britannia Mine; and Alberta, Canada: communities of Strathmore, Canmore, Okotoks, Chestermere, Picture Butte, Red Deer County, Wetaskiwin and the oil sands plants in Fort McMurray. BACKGROUND This case study provides an overview of the development, key components and principles of EPCOR s Geographic Information System (GIS), as well as their key business processes and application areas that support effective asset management. EPCOR was a key participant in AwwaRF Report 91164, Building a Business Case for Geospacial Information Technology A Practitioners Guide to Financial and Strategic Analysis, 2007, where more detailed information is available. Table 4.1 provides a timeline of the technology deployment and asset management activities from EPCOR s initial installation in 1978 to their third major platform and tool upgrade designed to leverage recent advances in geospatial technologies. Table 4.1 Timeline of the Technology Deployment and Asset Management Activities Year Technology Asset Management Activity 1978 1 st Generation GIS CAD based. All GeoEdmonton Alliance is established. users have the same viewing tools. Limited querying capabilities to locate addresses and assets. No analysis capabilities. 1985 Formal water main renewal program established based on break frequencies. 1990 Neighborhood Improvement Program (NIP) initiated coordinating water main renewal construction with sewer main and capital roadway improvement program based on an overall NIP ranking. 25

Year Technology Asset Management Activity 1992 2 nd Generation GIS CAD and database functionality. Ability to access information via CAD interface and export tables to other tools for analysis reviews. Thematic mapping available to assist with analysis of data. Water main renewal program candidate selection process automated. Limited work management functionality built into GIS for hydrants and valve maintenance. 1994 All mains hydraulic model developed from GIS, SCADA, and Customer Information Systems (CIS). 2000 Automated construction drawing preparation tools developed. Field computers deployed with view access only via CAD interface. 2001 Work management systems upgraded to open database architecture to allow linkage to GIS for analysis. 2006 3 rd Generation GIS Vendor neutral based approach for data entry and query tools built on an Oracle Spatial database. Hydraulic model update process automated. 2007 Live access and update capabilities for field staff to GIS and work management systems. Laboratory Information Management System (LIMS) upgraded to link with GIS to allow additional analysis capabilities. Water main renewal program expanded into two programs: 1. Reactive renewal (replacement based on higher break frequency); 2. Cathodic protection installation (based on low break frequencies). Hydraulic model used to optimize longrange plans, water transmission main shut downs, and optimal pumping strategies to reduce power costs. Proactive water main renewal program initiated focusing on hydraulic and water quality deficiencies. Water main lining program initiated for areas with good hydraulics, low break frequencies, but poor water quality. Modified duty program initiated for cross training of injured employees on GIS. GIS STRATEGY IN EPCOR EPCOR s enterprise GIS deployment is based on a GIS Strategic Plan that includes two key principles: 1. GIS technology improves efficiency and/or effectiveness; and 26

2. Accurate information should be available to utility employees when they need it, where they need it, and in a format that meets their needs. All potential system additions and modifications are evaluated against EPCOR s defined GIS strategy and these two principles. As such, these two principles drive EPCOR to excel in the following areas: Intuitive interfaces support users in doing their jobs. While users have a great deal of experience and expertise in their business areas, the users may not be knowledgeable of GIS concepts and existing system data structures. Best business practices and corporate standards ensure accurate and complete data, timely updates, secure data, and security in a user s data use. Users resolve problems in real-time. The structure supports enhancement requests and advanced usage. GIS data is shared with the GeoEdmonton Right of Way (ROW) Alliance Partners. For example, EPCOR s previous approach to GIS was based on a single system with extensive functionality to meet all user needs. The previous approach resulted in an overly complex system that was difficult to maintain and ineffective in training individual users in proper usage. Whereas, EPCOR s current approach aligned with the two key principles results in a structure that focuses on a core Oracle Spatial database and associated tools specifically designed for each user category that add and access data from the core database. The new approach allows modifications of individual tools if there is a change in business requirements without having to modify the entire system. GIS IN SUPPORT OF ASSET MANAGEMENT AT EPCOR Since EPCOR employed GIS almost 30 years ago, the use of GIS to support asset management is intrinsic in almost all of EPCOR s water distribution activities. EPCOR s staff has access to the full suite of GIS tools from their desktops and receives regular training on the use of these tools to meet their specific asset management needs. EPCOR is constantly evaluating advances in technologies and changing business needs to ensure that the optimum GIS tools are available to enable effective and efficient asset management decision making. For example, having GIS maps available in the field and linked with the work management system, support EPCOR s field activities in several areas including water distribution operations, maintenance and inspection. The following sections describe several of the asset management programs within EPCOR, and how GIS beneficially supports these activities. Water Main Renewal Programs In 1985, EPCOR instituted an extensive water main Renewal and Replacement (R&R) program. EPCOR leveraged this program to reduce annual water main breaks from a high of 1,600 to a current level of less than 400 per year. Since inception, approximately 490 kilometers (304 miles) of water main has been replaced or refurbished (e.g., cathodic protection or epoxy lining). The information contained within EPCOR s GIS plays an essential role in their decision process for correctly prioritizing and allocating the CAN$24 million annual R&R budget. 27

Historically, EPCOR s R&R program focused on renewal of cast iron water mains. Recently, EPCOR s R&R program has expanded to other pipe materials such as asbestos cement. The GIS model has been extended to also address these other materials as they age, and the characteristics and environments change. The following sections describe EPCOR s four main renewal programs and how GIS supports the candidate selection process. Reactive Renewal Program The on-going Reactive Renewal Program involves replacing deteriorating distribution water mains with PVC pipe. Specific locations requiring replacement are identified in order of decreasing priority through a GIS application that calculates break frequencies for candidate stretches between valves. All candidates with frequencies of 5 or more breaks/km/year (8 breaks/miles/year) are identified for replacement. Additional criteria include a minimum of at least 2 breaks in 5 years, more than 6 breaks in 5 years, and 12 or more breaks since 1982. After candidate water mains are selected, GIS is utilized to optimize the scope of each renewal project. For example, a candidate section may need to be extended due to the presence of a critical customer in the immediate vicinity who is located on the side of the candidate valve that is not identified as a replacement candidate. Also, an R&R project may need to occur concurrently with adding a loop to improve fire flows; thereby improving service to areas projected for increased development following land rezoning. If road improvements are planned in an area, consideration is given to advancing the water main replacement program to take advantage of economies of scale from doing two infrastructure upgrades at one time and to minimize impacts on the community by coordinating construction programs. Candidates selected for replacement are evaluated using the all mains hydraulic model (discussed below). Moreover, a hydraulic analysis is completed to confirm fire flows in areas affected by the construction and to provide advance notification to the fire department regarding potential problem areas. Proactive Renewal Program Standards have changed since much of the cast iron pipe was installed in Edmonton. EPCOR s proactive renewal program relies on both automatic and manual database GIS queries and data input. For example, data from numerous sources (work management system, hydraulic model, LIMS, Land use rezoning plans) is reviewed within EPCOR s GIS to identify and rank water mains that do not meet current design standards. The recommended renewal solution in these instances often requires replacement of water mains with larger pipe sizes, the addition of pipe looping in the area to increase the ability to deliver fire flows and eliminate dead end mains, or some combination of both. The identified projects are then grouped into geographic areas to reduce costs for mobilization and demobilization of the water main renewal contractors. Some factors used in ranking candidate areas for proactive renewal include land use, road type, number of customers, fire flow availability and requirements, water quality, and unidirectional flushing times (an indicator of stagnant water problems). Water Distribution Main Cathodic Protection EPCOR s Water Distribution Main Cathodic Protection project provides for the installation of sacrificial anodes on cast iron water distribution pipe to reduce or eliminate 28

corrosion of this metallic pipe. Cast iron pipe, like all other metals, deteriorates when buried. The soil conditions in Edmonton are conducive to external corrosion of buried metals. Application of cathodic protection extends the service life of the cast iron pipe network, thus maintaining an acceptable break rate and stabilizing the rate of future pipe replacement. Projects are selected based on the 5-year average break frequency value of between 1.0 and 2.0 breaks per kilometer per year (1.6 to 3.2 breaks per mile per year). EPCOR utilizes its GIS to review this program with the goal of further identifying any geographic factors that could help refine the selection criteria for installation of additional anodes. Water Main Internal Lining Program In 2001, Edmonton initiated a pilot project to line cast iron pipe with epoxy. This program continues today and is focused on areas where the primary deficiency is caused by water quality concerns due to low flow. These areas have no water main breaks and have sufficient hydraulic capacity. However, GIS and hydraulic models are utilized to plan each lining season considering adequate flows for fire protection and customer access during the program. The associated construction causes significant street disruption due to the number of access holes required for the lining machine and the number of streets impacted. As such, the program considers the efficient deployment of the lining rig in a short time span (i.e. moving from stretch to stretch in one geographic area). Hydraulic Modeling EPCOR effectively utilizes GIS to support hydraulically modeling of the performance of its water distribution system. As part of its asset management program, EPCOR uses its hydraulic model to: 1. Analyze peak hour and fire flow pressures to ensure that adequate assets are constructed to support future development activities. 2. Analyze the effects of planned shutdowns for any portion of the water system related to: a. Neighborhood Improvement Program initiatives that require EPCOR to ensure that there is minimum disruption to the City of Edmonton s customers; and b. Proposed transmission main shutdowns for asset management programs, including valve chamber refurbishment. 3. Identify Cast Iron Renewal Program improvement areas by upsizing or redesigning the water main configuration. 4. Analyze inquires from customers on low pressure concerns and the applicability or the effect of potential solutions. 5. Conduct special studies to assess and plan the water distribution system. EPCOR s hydraulic models are constructed based largely on the information contained within its GIS, as well other key data contained within a number of other information systems. 29

Modified Duties for Injured Staff EPCOR has modified duty business processes in place for enabling people who are injured. As required, the injured persons are placed on modified duty until they are cleared to resume their normal work. However, during this period, many of these employees are able to effectively work at less physically demanding positions, such as advancing EPCOR s GIS and asset management programs. For example, field crews are large users of the GIS systems. GIS input tools are designed so that EPCOR s personnel on modified duty can help update or record asset information. Some activities that can be completed in this manner include: 1. Updating attribute data for assets (i.e. hydrants, values or water mains); 2. Recording areas for proposed development; 3. Recording locations of main breaks or location of service lines; 4. Drawings/plans/details get linked to GIS; 5. General asset records filing; and 6. GIS data checking and field verification. Among the soft benefits achieved is the interaction between the drafting office and field staff. The employee on modified duty due to injury acts as a conduit, as they are able to effectively communicate with field crews to verify and validate key information. Concurrently, drafting technologists learn more about field activities and injured field staff members develop additional computer skills. Since employing this program, some field crew members have even expressed interest in exploring a GIS recording position as part of advancing their career path. GeoEdmonton Alliance One unique aspect of the EPCOR s GIS is the association with the GeoEdmonton ROW Alliance. By its nature, ROW facilitates extensive data sharing between municipal departments and the utilities in the region. The Alliance includes the City of Edmonton, Telus Communications, EPCOR, Atco Gas, AT&T Canada, Bell West, Shaw Cablesystems, NAIT and the Province of Alberta - Alberta Registries and Alberta Infrastructure and is regarded as one of the premiere municipal GIS systems in the world. ROW was established in 1978 when groups in the region were required to update their mapping systems to the metric system. Rather than updating records in isolation, ROW was formed to build and maintain a coordinated system. Initially, ROW members each provided a data layer to a common system that was then made available to all Alliance partners. Today, the Alliance mandates data standards, procedures, and compatible technologies to facilitate effective information sharing for an annual fee to support continued system development. The City of Edmonton maintains over 200 data sets that are available to ROW partners. Partners reciprocate by sharing their data sets; thereby, reducing duplicate efforts, increasing efficiencies and lowering costs. Other benefits realized by the partners of the GeoEdmonton Alliance include: Access to a cadastral map that is highly accurate, updated nightly, and common to all users; 30

Oil, gas and related underground utilities data is portrayed in the GIS for infrastructure planning and design; Aerial photos assist planning and design functions by providing a realistic view of site conditions; Topographic features such as bridges/overpasses, trees/groundcover and civic buildings are useful to planners, designers and those concerned with routing along the street network; Ground elevations required to plan drainage are available to planners and civil works designers; Locations of hazardous materials are available to emergency responders and those responsible for protecting the environment; and Address legal descriptions and statutory plans within those areas involved in land development and those who provide services to properties. Financial Benefits Financial benefits are directly attributable to a mature GIS program and participation in the GeoEdmonton Alliance. An example of this financial benefit is found in an application (ADAPT Automated Drawing and Preparation Tool) that automated the merging of GIS data layers and the addition of standard notes to create an initial construction drawing. This reduced the amount of time needed to prepare construction drawings by gathering and merging utility and base data layers, standardizing the graphic elements used on construction drawings, providing faster digital input and editing of design information. Implementation of ADAPT achieved a pay back in the first year and had an annualized return on investment of over 700 percent. It positioned EPCOR to absorb a workload increase of close to 50 percent without adding any new positions or compromising work quality. SUMMARY OF RESULTS EPCOR s deployment and use of GIS over the past 30 years has been extremely successful in supporting its business processes and application areas that support effective asset management. EPCOR constantly evaluates advances in technologies and changing business needs to ensure that the optimum GIS tools are available to enable effective and efficient asset management decision making and for correctly prioritizing and allocating its CAN$24M annual renewal and replacement budget. GIS tools are utilized to optimize the scope of each renewal project. EPCOR s proactive renewal program relies on both automatic and manual database GIS queries and data input to identify and rank water mains that do not meet current design standards. The identified projects are then grouped into geographic areas to reduce overall costs of the water main renewal contractors. Application of EPCOR s cathodic protection program extends the service life of its cast iron pipe network, thus stabilizing the rate of future pipe replacement. Water main breaks are at their lowest level since the 1960 s and the waterloss rate is less than one-half of the national average. There were 385 main breaks in 2005, down from over 1500 main breaks in 1986. EPCOR also utilizes GIS to support hydraulic modeling of the performance of its water distribution systems for a variety of beneficial uses; including fire flows, planned shutdowns, customer low pressure concerns, coordination with roadway capital improvement programs, and water distribution system master planning. Distribution services 31

staff have increased efficiency and work to a performance target of repairing 94 percent of all water main breaks within 24 hours of detection. EPCOR s modified duty processes allow personnel who are injured to help update or record asset information within the GIS until they are cleared to resume their normal work. EPCOR s association with the GeoEdmonton Right of Way Alliance further helps to eliminate duplicate efforts by sharing their data sets with the members, thereby increasing efficiencies and lowering total costs. For more information on GIS in N. America (especially EPCOR) see the report sponsored by Awwa Research Foundation (AwwaRF), Geospatial Information & Technology Association (GITA), GeoConnections Canada, and U.S. Federal Geographic Data Committee (http://www.awwarf.org/research/topicsandprojects/execsum/3051.aspx): Lerner, N., S. Ancel, M. Stewart, and D. DiSera. 2007. Building a Business Case for Geospatial Information Technology: A Practitioner's Guide to Financial and Strategic Analysis (Project #3051, Report 91164). USA: Awwa Research Foundation and American Water Works Association and United Kingdom: International Water Association. 32

CHAPTER 5 LOUISVILLE WATER COMPANY CASE STUDY MAIN REPLACEMENT AND REHABILITATION PROGRAM INTRODUCTION This case study involves the Louisville Water Company, which provides water treatment and distribution to a population of approximately 810,000 in the metropolitan area of Louisville, Kentucky, USA. Louisville Water Company utilizes an extensive distribution system comprised of approximately 3,750 miles (6034 kilometers) of mains to deliver Ohio River water to 271,900 service connections. In addition to serving retail customers, Louisville Water Company wholesales water to several nearby communities in Oldham, Bullitt, Shelby, and Spencer counties. Louisville Water Company has implemented an aggressive Main Replacement and Rehabilitation Program (MRRP) over the past 15 years. The purpose of the MRRP is to prioritize replacement and rehabilitation decisions on aging cast iron water mains that exhibit high failure frequencies and have characteristics that contribute to poor water quality and reduced hydraulic capacity. Over the course of this long-term program, Louisville Water Company has compiled a store of information that illustrates the costs and results of its efforts. In addition, the long history of the program contains highlights regarding challenges and successes that are likely of interest to other utilities considering similar strategies. BACKGROUND Aging and failing water mains pose a significant challenge to utilities, particularly those serving communities more than 100 years old. Main breaks and leaks place a strain on utility staff and financial resources. Historically, water systems have addressed main failures as they occur. Such was the case with Louisville Water Company prior to the late 1980s. Realizing the difficulties in continuing to keep up with increasing rates of main breaks, the utility began to develop long-term proactive strategies for asset management. A key program has been the MRRP. The stated goals for the main replacement and rehabilitation program are to: Improve water quality and customer service; Reduce maintenance; Improve hydraulic capacity and fire flow; and Improve coordination with economic development and paving programs. These goals are extensions of the utility s mission, which is founded on providing quality, service, and value to its shareholders. While Louisville Water Company has implemented a variety of programs related to asset management, the MRRP remains the most developed and mature of these efforts and is the focus of this case study. 33

MAIN REPLACEMENT AND REHABILITATION PROGRAM History of MRRP The MRRP had its beginnings in a knowledge building phase that took place between 1985 and 1990. During this time, Louisville Water Company conducted extensive data and records analyses. A database was developed containing historical information regarding installation and maintenance histories for pipes, valves, hydrants, and service lines. This information was integrated into a facility management system. With the addition of an AutoCAD mapping system and upgraded work order system, the utility began to track closely the breaks, leaks, repairs, and testing of distribution system components. These databases were then used to develop a vintage/cohort analysis, in which the break and leak frequencies of different ages of pipes were compared over time. This provided the data needed to prioritize types and ages of pipe for replacement versus rehabilitation. This wealth of information made possible a detailed plan for future activities. In the early 1990s, main break modeling was conducted and resulted in recommendations for a 15-year infrastructure renewal and rehabilitation program. In 1993, the program was launched and a pipe evaluation model was developed to support decision-making processes. This enabled multi-year planning and coordination of projects, which resulted in efficient implementation of the program. Key Elements of the MRRP The primary focus of the annual MRRP has been the replacement and rehabilitation of aging, unlined cast iron water mains installed prior to 1937, and ranging in size from 4 to 20 inches (101.6 to 508 millimeter) in diameter. Pipe segments installed from 1862-1865 (typically unlined pit cast iron pipe) and 1926-1931 (typically unlined delavaud cast iron pipe) were targeted for removal from the system because of their high failure frequencies in excess of system-wide averages. These vintage pipes also exhibit characteristics that contribute to poor water quality (i.e., associated with high levels of red or rusty water complaints) and a reduction in hydraulic capacity, pressure and flow due to tuberculation. Thus, these pipes were scheduled for replacement. As of early 2007, the average cost to replace pipe was estimated to be US$380,000 per mile (US$237,500 per kilometer) or US$72.00 per lineal foot (US$237.50 per meter). By contrast, pipelines installed from 1866 to 1925 (typically unlined sand cast iron pipe) have proven to be very reliable and have been the focus of the rehabilitation portion of the program, with approximately 80 percent of those water mains targeted for rehabilitation and the remaining 20 percent for replacement. Rehabilitation efforts have focused on cleaning and lining the 1866 to 1925 unlined pipes, most often via the Perkins Process, which involves in-place cleaning and cement mortar lining. As of early 2007, the estimated cost to rehabilitate pipe was US$225,000 per mile (US$140,625 per kilometer), or US$42.60 per lineal foot (US$140.63 per meter). The MRRP project planning and estimating are directed by a planning engineer, whose primary work focus includes asset management for buried infrastructure. A team of design engineers works in a rotational fashion on the design, bidding, inspection, and construction elements of the program, so that each staff person becomes familiar with all project management aspects of the MRRP. 34

SELECTION METHODOLOGY The pipe evaluation model created in 1993 considers twenty-three criteria to aid in evaluating and justifying water main projects. The categories of criteria are provided below. Table 5.1 Categories of Criteria Category Geographical Hydraulic Maintenance Quality of Service Criteria Central Business District, Redevelopment Areas, and Roadway Classifications. Main size, fire flow availability, number of parallel mains, high pressure frequency, and low pressure frequency. Main break frequency, joint leak frequency, material samples, corrosive soil data, installation date, pipe type, joint type, and maintenance record. Taste and odor complaints, discolored water complaints, water quality data, number of domestic/fire services, lead service frequency, dead-end water mains, and paving age. Projects are scored according to all criteria, which in turn are weighted based upon degree of importance. Criteria with the highest weighting with regard to pipe replacement projects include location in the Central Business District, main size, and main break frequency. By contrast, criteria with high weightings with respect to pipe rehabilitation projects include type and age of pipe, and frequency of water quality complaints. The result of the scoring process is a prioritized list of rehabilitation and replacement projects. For example, a segment of pipe that is located in the Central Business District and that scores high in terms of main break frequency would typically be prioritized for replacement. A small diameter main that is located in a residential area and that scores high in terms of water quality complaints would likely be identified for rehabilitation. Currently Louisville Water Company uses a criterion of 200 breaks per 100 miles per year (124 breaks per kilometer per year) or two breaks per mile per year (1.2 breaks per meter per year) as the primary justification for replacement of pipeline segments. This threshold is approximately a factor of ten times greater than the utility s average break rate of 0.23 breaks per mile per year (0.14 breaks per kilometer per year). Results of MRRP Louisville Water Company has maintained extensive data regarding main breaks and joint leaks throughout the course of the MRRP. As shown in Figure 5.1, the combined 10-year moving average of main break and joint leak frequency has decreased over the past 20 years, from approximately 34 annual breaks/leaks per 100 miles (21 annual breaks/leaks per 100 kilometers) in 1986, to 24 annual breaks/leaks per 100 miles (15 annual breaks/leaks per 100 kilometers) in 2006. The MRRP s contribution to this improvement is illustrated by the downward trend of main break frequency between 1994 and 2006. The number of main breaks experienced annually by the system decreased by 25 percent, from 927 in 1994 to an average of 35

700 during 2001-2006. During this same period of time, the amount of piping in the system increased by 25 percent, from roughly 3,000 miles (4827 kilometers) to 3,750 miles (6034 kilometers). 40 Frequency (Breaks or Leaks per 100 miles of Main) 35 30 25 20 15 10 34.3 34.4 33.3 33.7 34.0 34.2 33.7 33.0 32.3 32.2 31.8 31.0 29.3 29.0 29.0 25.6 25.6 26.0 26.0 25.9 25.1 25.2 25.1 24.5 23.5 24.1 23.0 23.1 22.8 23.1 Combined MB/JL Freq. (10yr) Main Break Frequency (10yr) Joint Leak Frequency (10yr) 10.8 10.3 9.6 8.8 8.4 8.2 7.6 7.2 7.1 7.0 6.7 6.5 6.3 6.3 5.9 28.3 28.3 27.9 26.1 25.3 22.8 23.0 22.8 21.5 21.1 24.2 20.2 5.6 5.3 5.1 4.6 4.3 4.0 5 0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year Note: MB/JL indicates main break/joint leak. 100 miles = 161 kilometers. Figure 5.1 Louisville Water Company Main Break and Joint Leak Frequency (1986-2006, 10-year Moving Average) Other benefits of the MRRP include a reduction in red water complaints, upsizing of mains in fire flow critical areas as a part of pipe replacement, and full conversion to lined pipes for the cast iron portions of the distribution system, thus restoring hydraulic capacities in these older mains. During the 15-year program, 172 miles (277 kilometers) of main have been replaced, and 251 miles (404 kilometers) have been cleaned and lined. In total, the 423 miles (681 kilometers) addressed translates to an average of 28 miles (45 kilometers) per year. At the conclusion of the MRRP, all recorded or known unlined cast iron pipe will have been replaced or rehabilitated. The total cost of the program, through the early part of 2007, has been US$132 million. Figure 5.2 illustrates the investments in the program over time, in terms of mileage completed and costs per year. The dramatic decrease in 2004 in annual mileage completed represents the program nearing completion. 36

$140 $120 31.4 35.0 35.9 35.8 30.5 37.7 37.6 31.8 37.1 $108.3 $114.4 $124.2 $132.0 40 35 $100 27.3 $91.6 $100.3 25.4 30 $83.1 25 $80 $73.7 Million$ $60 $45.9 $53.9 $63.8 Annual Funding $6 to $10 million per year 13.1 18.6 16.0 20 15 Mileage $40 $20 $8.5 $17.5 $27.0 $9.0 $9.5 $36.5 $9.5 $9.4 $8.0 Cumlative Funding $132 million spent Annual Mileage 423 miles completed 10.0 $9.9 $9.9 $9.4 $8.5 $8.7 $8.0 $6.1 $9.8 $7.8 10 5 $0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 YEAR 0 Figure 5.2 Louisville Water Company MRRP Historical Mileage and Costs (1993-2007) Other Related Programs and Activities Many other asset management programs are closely tied to Louisville Water Company s MRRP. Condition assessment, in the form of visual inspection of above-ground facilities and periodic leak detection surveys, provides information for use in the pipe evaluation model. The utility has developed a robust GIS platform that contains information on the entire distribution system, which is used for a variety of analysis and planning purposes. Louisville Water Company maintains a separate renewal program for components of the distribution system other than pipelines. The Point Capital Program involves rehabilitation and replacement of fire hydrants, large meters, services, blow-offs, valves, and some discreet short sections of transmission and distribution mains. Particular attention has been paid to fire hydrants, the maintenance and renewal of which is the responsibility of a specific work team. The benefit of this program is that the utility reports a hydrant availability measure of 99.9 percent, meaning that 99.9 percent of all hydrants are in good, operating condition. The hydrant program is coordinated with the MRRP to ensure construction efficiency as is the replacement of lead service lines as described below. Louisville Water Company also continues to systematically remove the utility portion of lead services from the distribution system in order to reduce the potential for lead entering the tap water, and because of increasing awareness regarding public health issues and future regulatory compliance. So far, 20,000 lead service lines have been removed. The utility encourages the homeowner to remove their portion at the same time. The typical cost to remove the utility portion of a lead service line and replace it with an alternative material is estimated to be US$1,250. The Lead Service Renewal Program aims to remove the remaining 15,000 lead services from the distribution system by the year 2015. This effort is being conducted by 37

Louisville Water Company crews and contractors with an emphasis on coordination with local paving and construction programs. SUMMARY OF RESULTS Louisville Water Company s Main Replacement and Rehabilitation Program has been successful in reducing the frequency of main breaks and joint leaks throughout the utility s distribution system. The cumulative investment of US$132 million over the 15 years of the program life has reduced the annual number of breaks by 25 percent, resulting in substantial cost savings related to unplanned maintenance and water loss. Some of the lessons that Louisville Water Company learned throughout the development of the MRRP include: Data collection and management is foundational to the success of the program. Quantitative data can be used to build long term goals and objectives. Pipe age should not necessarily be the primary decision-making tool. Some of Louisville Water Company s older pipes are in sound structural condition and do not warrant replacement, unlike other mains installed more recently. Once measures and procedures are established, they must be maintained. This allows analyses and results to be generated in a consistent manner, which in turn allows success (or failure) to be readily tracked. Program accountability is key in maintaining relationships with utility management and investors. As the first 15-year MRRP comes to a close, Louisville Water Company is actively looking to the future and developing the next generation of the MRRP. The focus of this next phase will likely be replacement and/or rehabilitation of lined cast iron pipe and unwrapped ductile iron pipe installed prior to 1981, since these materials do not contain protection from possible external corrosion. There is approximately 2,000 miles (3218 kilometers) of such pipe, comprising more than half the distribution system. Louisville Water Company plans to incorporate risk assessment into its decision making process as it prioritizes projects and weighs rehabilitation options, including cathodic protection, against replacement. This will broaden the utility s current approach by allowing it to better capture concepts such as consequence of failure, in addition to the likelihood and frequency of failure. For more information on repair and rehabilitation in N. America, search the reports and projects funded by Awwa Research Foundation (AwwaRF) at www.awwarf.org. 38