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HomeMy WebLinkAboutAgenda Packet 01/30/2018 Utility Advisory Committee Special Meeting City Council Chambers Port Angeles,WA 98362 January 30,2018 3:00 p.m. AGENDA This is a special meeting for the purpose of orientation and training for Utility Advisory Committee members. I. Introduction: (King) What is the UAC and what does it do? What does the UAC review? UAC membership H. City Utilities: (Fulton) Summary of the different utilities, what they do,and some statistics. M. Responsibilities of Public Officials: (Bloor) IV. Loosely Using Robert's Rules of Order: (King) Modifying and using Robert's Rule of Order for a smooth and transparent meeting. V. How Does the City Decide What to Repair, Rehabilitate,or Replace: (Fulton) VI. Next Meeting Date: February 13, 2018 VII. Adjournment O W t1A .E O � V 1 ro 0 o ro .v 0 E 151 - (Z. .cn co O � E � E Ul �-' — O a� N � l� Q r Q �o � � E o c� o Q O '— C: C) o .° � � J o Z7, 0- o 0. 4- � 400 '� v - 4--' (� O U 0- `- N - Q •V v Ul O •O U U C- oO ro� — Q o6 U Q N U - U o 5 i Q> U 4 > Q4 U +�-1 tiQiO �- CL to ate-+ to a-j E tn tn N O +-+ +j O O 4-J •+-' p i cn U Q) O D 4-J O O m O y U c� U .— O _ Ov = � U 0 Q= U � p 0 o p O O �--+ � � •Ln � ate-+ � O O p +-+ — � QJ U E C: U � v Emcl- > � -a p Q .� N L cn +-+ O U .v J O cNn Q) — O Ln co 4, ca : O Ln O O �, U ca X O N -� 4— +' C: Q O E 4-j O cn O 4 > O O +-J U •ca •- 'U 00 E 1 U � >- E Q.1 � 0 Ln p U .0 :3 U Q v CO 0 Q U -0 U 4--) fII L U N 4- C6 C- U to O c� t�A C'IL• Q) _0 cri Q) � cv +J . � V; U U QJ U 4-J ) (6 C) Q ` C: to 4-J V Q� •- - V (1) U o i CO CO >o U U 4) v •> r O 0. N Q) (U N Q > + Z, >O ca JZ- M L. Q1 E N O EL. N Ln U E L. Ln 4-j vi w Q O N J E N f� }' U � N c E •V L.. O - 4-J L N }' � O N N •� Co O 4- � m � - N .0 O 4- c c N E E 0 -C Q EA A A A 0 H U0 f� 4--J E V Q U CU E E •C6 O U U aJ � y' U O Co O Q i Li C •ca CU O - 4-J U Ln cn O ' > 4-j E •� E •u 4-J O U �► i Q O ca U Lf) V O U O Q � U V) C) V N _I-_ dJ V) f- c CHAPTER 2.68 - UTILITY ADVISORY COMMITTEE 2.68.010- Purpose. The declared purpose of this chapter is to provide a mechanism for the City Council of Port Angeles to obtain the benefits of recommendations, advice, and opinions on those matters affecting City utility policy and operations from a committee which may devote the necessary study to careful consideration of such matters and which will increase citizen participation and input to local government. (Ord. 2489 § 1, 5/27/1988) 2.68.020-Committee created. There is hereby created a Utility Advisory Committee which shall consist of eight members. (Ord. 3588 § 3, 9/5/2017; Ord. No. 3437 § 1, 9/20/2011; Ord. 3255 § 1, 9115/2006, Ord. 2489 § 1, 5127'1988) 2.68.030- Membership. A. Procedures. 1. Three Council members of the Utility Advisory Committee shall be appointed by the Mayor from the seven members of the City Council. 2. Five citizen members of the Committee shall be selected and appointed in accordance with Chapter 2.25. One of these members shall represent the industrial customers of the City's utilities; the second member shall represent the licensed care facilities in the City; and three members shall represent all other customers of the City's utilities. For purposes of this chapter, "industrial customers" means those customers who are served under the City's industrial transmission electric rate classification. For purposes of this chapter, "licensed care facilities" includes adult family homes, boarding homes/assisted living facilities, and nursing homes. The representative of the licensed care facilities shall vote only on issues concerning fees authorized by Part C of PAMC 13.73.300. 3. Citizen members may be removed from office for reasons deemed appropriate by the appointing authority, including, but not limited to, malfeasance in office or neglect of duties. B. Criteria. Criteria used in selecting citizen members shall include, but not be limited to, the following: 1. Members shall be residents of the City, except the member representing the licensed care facilities need not be a City resident but must own or manage a licensed care facility in the City. 2. Members shall have displayed an interest in the work of the Committee. 3. Members shall be selected in accordance with the equal opportunity guidelines. 4. Members shall be appointed without regard to political affiliation. 5. Members shall not be City employees. C. Terms. Terms for citizen members shall be as follows: 1. A full term of office shall be four years. 2. Members of the Committee may be selected to serve consecutive terms; provided that no person, except one appointed to represent industrial customers, shall be allowed to serve more than two consecutive four-year terms. (Ord. 3588 § 3, 9/5%2017; Ord. No. 3437 § 2, 9/20-2011; Ord. 3316, 2/15/2008; Ord. 3255 § 1, 91152006, Ord. 3051 § 3, 5/26/2000; Ord. 2975, 11/28,4997; Ord. 2489 § 1, 5/2711988) Editor's note— It should be noted that the reference to TAMC 13.73.370" has been changed to TAMC 13.73.300" in subsection A.2. by the codifier. 2.68.040-Organization. A. The Committee shall elect its own chairman and vice-chairman from among its members and create and fill such other offices as it deems necessary for efficient operation. It shall adopt rules for the transaction of business and keep written record of its meetings, resolutions, transactions, findings and determinations, which record shall be a public record. B. The Committee shall hold meetings as deemed necessary by the City Council to carry out its duties. There shall be a fixed time and place of meetings which shall be made known to the public, and all regular sessions of the Committee shall be open to the public. Four members shall constitute a quorum for the conduct of official business. (Ord. 3588 § 3, 9/5/2017; Ord. 3255 § 1, 9115/2006, Ord. 2489 § 1, 5/27/1988) 2.68.050- Duties. The Committee shall be responsible to the City Council for its duties and actions. The duties of the Committee shall include, but not be limited to, the following: A. To give advisory recommendations to the City Council on matters relating to City utility policy and operation and all other matters as the City Council may deem appropriate. B. To adopt bylaws, rules and regulations consistent with the laws of the State of Washington for conducting the meetings of the Utility Advisory Committee. C. To maintain and preserve the confidentiality of information discussed in executive session pursuant to Ch. 42.30 RCW and the City Council's Rules of Procedure. (Ord. 2489 § 1, 5'27.1988) Public Works: Public Works & Utilities Department 360-417-4800 Director—Craig Fulton, P.E. Email: -. publicworks@cityofpa.us crnra�" Streets & Stormwater Division Streets Division maintains City streets, alleys, street and regulatory signs, sidewalks, public parking areas and traffic controls for public safety. Stormwater Division collects stormwater from residential, commercial, and industrial uses. The City system has more than 110 miles of stormwater pipe and operates in compliance with the National Pollution Discharge Elimination System (NPDES) Phase 2 Permit. STAFF: 12 Full Time / 1.2 Seasonal Employees (8 Streets; 3 Stormwater) BUDGET: Operations (Streets): $2.1 Million Operations (Storm Water): $1.6 Million STREETS (General Fund) SERVICES & PROGRAMS • 38.5 miles of arterial roadways • Signs and markings maintenance • 86 miles of residential streets • Pothole and pavement repair • 60 miles of sidewalk • Bridge maintenance • 35 miles of alleys • Snow and ice response • 6 bridges • Traffic signal operation and maintenance • 26 traffic signals • Traffic control and event support • 8,000 regulatory, warning and • Roadside shoulders informational signs • Pedestrian & bicycle Infrastructure maintenance STORM SYSTEM (Utility) Street sweeping • • 82.5 miles of storm drain pipe Tree and brush trimming for sight distance • • 28 miles of culvert Ditch and storm system cleaning • Stormwater pollution controls • 2,400 catch basins • • 855 manholes Flood response • Support to all other City Departments • 1 pump station or • 14 stormwater structures • New rain gardens STREETS&STORMWATER DIVISION - ; Eric Wheatley-Superintendent Phone: 360-417-4825/Email: ewheatle@cityofpa.us 1703 B Street/Port Angeles SID y Visit: www.cityofpa.us Nov.2017 vcwr Public Works: Public Works & Utilities Department 360-417-4800 ` or "' Director—Craig Fulton, P.E. Email: ��' publicworks@cityofpa.us Wastewater Division Provide safe, reliable collection and treatment of wastewater in compliance with National Pollution Discharge Elimination System (NPDES) Permit. STAFF: 12 Full Time / 1 Seasonal Employees (6 Plant Ops/Maint. 2 Field Crew) 1 Lab Tech; 2 Source Control - 1 is DOE Grant funded) BUDGET: Operations: $6.2 Million ASSETS SERVICES & PROGRAMS Collection System • 7,297 residential / 1,084 commercial • 1,796 manholes customers • 17 pump stations . Annual pipeline flushing and video • 12 miles of pressurized sewer inspection transmission line . Root and obstruction removal • 118 miles of gravity sewer lines • 2.6 million gallon annual septage Wastewater Treatment Plant treatment • Built 1970, Expanded 1993 • Combined Sewer Overflow (CSO) control • Primary and secondary treatment • Commercial waste pretreatment • 6.7 million gallons per day (MGD) • Pollution prevention & control capacity (permit) - Avg 2.5-3 MGD • Sewage spill and odor complaint response • Storm Events: Up to 13.4 MGD ;. I ' Flow; 20 MGD after CSO project . . ----�- completion V7, 4 WASTEWATER DIVISION t �A Jeff Young—Wastewater Treatment Plant .: . .:.•1 ej Superintendent Phone: 360-417-4690 Email: jyoung@cityofpa.us =- . . 1703 B Street/Port Angeles Jason Hart—Wastewater Field Superintendent Phone: 360-417-4855 Email: jhart@cityofpa.us 1703 B Street/Port Angeles Visit: www.cityofpa.us Nov.2017 Public Works: Public Works & Utilities Department 360-417-4800 Director—Craig Fulton, P.E. Email: `J publicworks@cityofpa.us Light Operations Division Operate and maintain reliable electric power for residential and commercial customers. Port Angeles is the fourth oldest electric utility in Washington State. STAFF 17 Full Time BUDGET Operations: $9.6 Million Annual Power Purchase: $19 Million (from Bonneville Power Authority) ASSETS Power Distribution • 70.5 megawatt hours (MWH) supplied daily SERVICES & PROGRAMS (excluding McKinley Paper Company) • 9,017 residential / 1,603 commercial • 56 mwh maximum demand customers (excluding McKinley Paper Company) • 99.995% Reliability • 9 miles of high voltage transmission lines • Over 700 electrical permits annually • 7 Substations • Annual power pole testing/replacement • 103 miles of overhead lines • Annual tree trimming program • 40 miles of underground lines • Annual underground cable upgrades • 9,000 wood and fiberglass poles • Electric meter replacement • All PCB transformers removed • Installation of downtown banners and holiday decorations Street Lighting • 1,100 Street Lights F: • Converting to energy efficient LED lights A, LIGHT OPERATIONS DIVISION Michael Cyr- Manager Phone: 360-417-4731/Email: mcyr@cityofpa.us 2007 S.0 Street/Port Angeles Visit: www.cityofpa.us !' Nov.Zc17 u .. Public Works: Public Works & Utilities Department 360-417-4800 Director—Craig Fulton, P.E. Email: publicworks@cityofpa.us Water Division Operate and maintain the 2009 Water Treatment Plant, and City water distribution system for clean, healthy drinking water. Source water is the Elwha River. STAFF 13 Full Time / 3.0 Seasonal Employee (5 Plant operators; 7 Field crew) BUDGET Operations: $5.0 Million ASSETS Water Treatment Plant • Ran ney well water intake 60 feet SERVICES & PROGRAMS below river surface w/radial well design 7,603 residential / 1,112 commercial • Level IV Actiflo Treatment Plant— 11 MGD customers treatment capacity • Annual water line flushing • Leak detection Distribution System • Backflow prevention • 5 reservoirs for up to • Biennial water line replacement 18 million gallons storage • Water meter replacement/upgrades • 4 booster stations for proper water pressure • 25 miles of transmission water mains • 175 miles of distribution pipe • Surface water intake (backup)—industrial line WATER DIVISION Jeff Young—Water Treatment Plant Superintendent Phone: 360-417-4690 Email: jyoung@cityofpa.us 1703 B Street/Port Angeles Jason Hart—Water Field Superintendent Phone: 360-417-4855 Email: jhart@cityofpa.us 1703 B Street/Port Angeles Visit: wa.portangeles.civicplus.com Port Angeles Water Treatment Plant/Opened 2009 Nov.2017 Public Works: Public Works & Utilities Department 360-417-4800 Director—Craig Fulton, P.E. Email: '� .. publicworks@cityofpa.us Solid Waste Division Operate residential and commercial curbside collection and recycling for City utility customers, and services to City and County residents at transfer stations, moderate risk waste and compost facilities. STAFF 8 Full Time / .75 Permanent Part Time / 0.5 Seasonal Employees BUDGET Operations: $13.3 Million (Includes Landfill Post-Closure) ASSETS 55 acre Solid Waste Facility SERVICES Operated by Waste Connections, Inc Curbside Collection • Regional Transfer Station (garbage disposal) • 7,100 residential garbage customers • Blue Mountain Transfer Station • 5 -garbage trucks • Moderate Risk Waste Facility • Collections 6 days per week • Recycle center . Special collections • Compost facility • 850 commercial customers Operated by City of Port Angeles 6,000 recycle customers • Scales and metal recycling pile • • Post closure maintenance • 2,860 yard waste customers • Leachate system • 9,750 tons/year garbage • Gas collection and flare system • 1,953 tons/year recycle materials • 1,350 tons/year yard debris Compost Blue Mountain and Regional Transfer • 3,400 cubic yards/year Class A compost Station Total Materials Handled Education and Outreach Program • 42,000 tons/year garbage • Offered to all county residents and organizations • 4,400 tons/year recycle materials on waste reduction, recycling, composting, • 2,400 tons/year yard debris and proper disposal of hazardous waste. SOLID WASTE DIVISION i rr r Tom McCabe-Superintendent 1 Phone: 360-417-4872/Email: tmccabe@cityofpa.us 1703 B Street/ Port Angeles — Visit: wa.portangeles.civicplus.com Newer garbage trucks use hybrid power for fuel economy Nov.2017 - Public Works & Utilities Department Public Works: -- 360-417-4800 i Director—Craig Fulton, P.E. Email: publicworks@cityofpa.us Equipment Services Division Provide fleet maintenance and replacement services for all City of Port Angeles municipal departments. STAFF 5 Full Time BUDGET Operations: $2.87 Million ASSETS 215 Fleet vehicles: SERVICES • 5 aerial bucket trucks • Preventative maintenance and repairs • 7 fire rescue (fire engines, ambulances, • Fuel system and parts inventory ladder truck, mobile air unit) • Plan annual equipment replacements, • 25 construction equipment (loaders, purchases and surplus sales backhoes, grader, mobile generators) • Generator maintenance • 2 portable electronic message boards • WISHA crane inspections • 20 heavy-duty trucks (more than 26,000 Ib GVW) • Keep snow and ice removal equipment 8 medium-duty trucks (14,001 to 26,000 Ib. GVW) operational during storm events. • 51 light-duty trucks (14,000 and under GVW) • Fabricate specialty parts and equipment • 3 forklifts • Mobile radio equipment • 36 police vehicles • Fire extinguisher maintenance &testing • 46 small equipment (mowers, power carts, etc.) t EQUIPMENT SERVICES DIVISION Brian Coburn-Manager Phone: 360-565-3860/Email: bcoburn@cityofpa.us 1703 B Street/Port Angeles i Visit: www.cityofpa.usIll Equipment display at Dry Creek Elementary School Nov.2017 v w► a a � W (1) 0 Lo m C)> 40 (A 0 O ++ fC M Q u f0 o Q ,=00 s � CL � �a O Lr) ceN X M N 7 ru U c ro c 17L Lf 4) (1) a--J (� C 4-'' O a� a � . U Q) U 4� C: 4) O 0 U � rn c �.a V � a � c 4w a) (D fl. a) Of yid V � � � L cn mo a � •- O •' 4�0 � Eru 0 4_ (3) p s Qom >- ar 1 f `41 `y • J ' 1 'r 4. J U .- '°` . V) -.� > (1) cn � L � O U Cu •r-, cu •to 0 ■ ■ ♦,. 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The Utility Advisory Committee Standard Order of Business: The City utilizes Robert's Rule of Order to conduct all City Council and Committee meetings. Robert's Rules gives a framework for all parties to be heard and to participate in the decision process.The UAC utilizes a standard agenda for all of its meetings: 1. Call to order 2. Roll Call 3. Reading and approval of minutes 4. Late Items (add to agenda) 5. Public Comment 6. Discussion Items a. Discussion b. Motion c. Further Discussion (if applicable) d. Revised Motion (if applicable) e. Vote 7. Information Only Items 8. Announcements/Next Meeting 9. Adjournment II. UAC Meeting and Chairman's Script: A UAC meeting takes preparation and planning. City staff research, organize and prepare materials for the UAC. UAC members review their UAC packets and come to meetings ready to discuss agenda items and ask questions. The following is an example of how a typical UAC meeting is conducted: No. Agenda Item Script 1. Call to Order Chairman: "Today's date is the time is . This meeting will come to order."Rap the gavel once (if gavel is present). Chairman to Staff: "Do we have a quorum?" If yes,then proceed. If no,then note that no voting can occur. 2. Roll Call Chairman: "The next item on the agenda is the roll call." Staff conducts the roll call. UAC members answer "Present" when their name is called.Staff finishes by stating "That concludes the roll call." 3. Reading and Approval Chairman: "The minutes of the last meeting were sent to you in of Minutes the UAC packet. Knowing you are all judicious minute readers, please let me know if you have found any errors." (Pause) Chairman: "Are there any corrections to the minutes as distributed?" Take corrections until there are no more Chairman: "Do we have a motion?" UAC Member#1: "1 move that the minutes stand approved as distributed/corrected." UAC Member#2: "1 second that motion." Chairman: '7t is moved and seconded that the minutes be approved as distributed/corrected. All in favor say Aye." Take count of all in favor. Chairman: "All opposed?" Take count of opposed. Chairman: "Minutes are approved as distributed/corrected." 4. Late Items Chairman: "Do we have any late items to the agenda?" Add any late items to the agenda 5. Public Comment Chairman: "The next item is Public Comment. The Public may have up to three(3)minutes or less each to speak to the Committee about topics of their concern that is relevant to utilities. Will the first person on the sign-up sheet please come forward." Continue down the sheet until all public comment is completed or until 15 minutes has passed. 6. Discussion Items Chairman: "The next item of business is Discussion Items." Staff will provide presentation or report. Chairman after staff presentation or report and after UAC members have discussed item: "Do we have a motion?" UAC Member#1: "1 move that the UAC recommend to the City Council that they UAC Member#2: "1 second that motion." Chairman: "It is moved and seconded. Do we have further Discussion?" Discussion either continues and a revised motion made, or no additional discussion and the original motion stands. Chairman: "All in favor say Aye." Take count of all in favor. Chairman: "All opposed?" Take count of opposed. Chairman: "The affirmative has it." Continue until all Discussion items are complete. 7. Information Only Chairman: "The next item of business is Information Only Items Items." Staff will provide presentation or report. No vote is required although the UAC can ask staff to provide further information. 8. Announcements/Next Chairman: "The next item of business are Announcements.Are Meeting there any announcements?" After announcements are made, or if there are no announcements: Chairman: "The next meeting is on 9. Adjournment Chairman: 'This meeting is adjourned."Rap the gavel once (if gavel is present). An Asset Management Overview "How does the City determine what to repair, rehabilitate or replace, and when?" The City utilizes a number of means to determine what to repair, rehabilitate, and replace...and when. A critical means for making these decisions is through the use of Asset Management. Asset Management is a practice of monitoring and maintaining things of value, to achieve the greatest return (particularly useful for productive assets such as plant and equipment), with the objective of providing the required level of service in the most cost-effective manner. Asset Management assists a utility in maximizing the value of its capital as well as its operations and maintenance dollars, in order to execute the right proiect at the right time for the right reason. It drives the understanding of what we own; where it is; what condition it is in; what is its remaining useful life; and what is its value. It also focuses the utility on what are the critical assets (i.e. PA sewage plant belt press)...those assets which have high risk of failing (vulnerabilities) and those which will have major consequences if they do fail (emergency costs, legal issues, social and environmental impacts, collateral damage). Utilities are responsible for ensuring systems are in good working order, regardless of the age of its components or the availability of additional funds (the challenge!). Asset management uses system data —including asset attributes (e.g., age, condition, and mission criticality), life- cycle costing, proactive operations and maintenance, and capital replacement plans to achieve the most efficient method of meeting this challenge. Focusing on the stages of an asset's life-cycle, from purchasing, through maintenance, rehabilitation and finally replacement, asset management tools are used to develop and implement a strategy with the fundamental goal to preserve and extend the service life of long- term assets which are vital to maintaining the level of service and efficiency of the system. CAVEAT:When adequate funding is not available to properly maintain City Assets based on sound engineering practice (a reality across the country),the City must adjust by: • Reducing Level of Service (e.g. allow streets to degrade, allow pipes to be "maintained by repair" rather than rehabilitation, replacement, or upgrade) • Assume more risk(Hope the critical parts of a system don't fail until funding becomes available) o Cost of system failure (un-programmed emergency repairs) o State, Federal or third party lawsuits o Costs of collateral damage o Lost trust in City government • Be Reactive—Reacting to emergencies and greatest customer complaints, rather than proactively solving systemic problems. 1 Section 1 - Introduction to Asset Management 1.1 What is Asset Management Asset management is a comprehensive approach that maximizes the performance of critical infrastructure capital assets for the goal of achieving a consistent level of service. Asset management tracks tangible items bought by the utility for the benefit overall operations(i.e., pipes, pumps, storage tanks, vehicles,etc.). It provides utility managers and decision-makers with critical information for timing investments through an asset's useful life, while also assisting in developing long-term funding strategies. Some key steps for asset management are: • Creating an inventory • Purchasing • Rehabilitation • Disposal or replacement 1.2 Benefits of Asset Management The benefits of asset management include: • Sound operational decision making o Meeting consumer demands with a focus on sustainability o Setting rates based on operational and financial planning o Increased acceptance of rates o Greater ability to plan and pay for future repairs and replacements o Capital improvement projects that meet the true needs of the utility • Increased knowledge of asset location and condition o Improved emergency response o Enhanced security and safety of assets o Increased knowledge of which assets are critical to the utility • Better communication with customers o Increased acceptance of rates o Ability to meet increasing demand for services • More efficient operation 1.3 Core Components of Asset Management There are five core components of asset management that provide the foundation for many asset management best practices: 1. Asset Inventory 2. Level of Service 3. Critical Assets 4. Life Cycle Costing 5. Long-term Funding Strategy 3 Section 2 -Asset Inventory 2.1 Introduction to Asset Inventory The first core component of asset management is the asset inventory. When information is difficult to find, estimates are used as necessary. In conducting the asset inventory the utility investigates five key areas: • What do we own • Where is it • What condition is it in • What is the remaining useful life • What is its value 2.1.1 What do we own? Although this is may be a straightforward question, it is not always easy to answer. Difficulties arise from several factors: assets may be underground; assets generally are put in over a long period of time; records regarding assets may be old, incomplete, inaccurate or missing; and staff turnover may limit historical knowledge. 2.1.2 Where are my assets? This component involves two steps: 1) mapping the assets and 2) putting a location in the inventory, especially for buried assets. 2.1.3 What is the condition of my assets?Asset condition can be determined through current and historical knowledge of the system (e.g.type of materials used and when installed), or through more advanced technological means (e.g. in-pipe videoing), and then placed in a condition ranking system. 2.1.4 What is the remaining life of my assets? All assets will eventually reach the end of their useful life. Some assets will reach this point earlier than other assets. In addition, depending on the type of asset, it will either reach that point through amount of use or length of service. Factors such as poor installation, defective materials, poor maintenance and corrosive environment will shorten an asset's life, while factors such as good installation practices, high quality materials, proper routine and preventative maintenance and non-corrosive environment will tend to lengthen an asset's life. 2.1.5 What is the Value of the Asset? The installation cost does not have a direct bearing on what it will cost to replace that asset when it has reached the end of its useful life. Costs of various assets may change drastically over time such that the cost of installing pipe in 1966 does not reflect the cost of installing pipe 50 years later in 2016. The real value of the asset is the cost it would take to replace today. 4 2.2 Organizing the Asset Inventory—Cityworks While gathering the information is critical, it is just as important to be able to retrieve and use the information quickly and effectively. For example, utilities need to understand the way individual assets affect service. There are many options to manage the asset inventory, including the use of pre-packaged Information Technology Software. The best option is a specifically designed asset management software program such as Cityworks. 2.3 Summary As assets are rehabilitated, repaired or replaced, inventory will become more accurate. The data quality will increase over time as the inventory gathers more information and individuals become more comfortable with the concept of asset management. Section 3 - Level of Service 3.0 Introduction A Level of Service Agreement (LOS) defines the way in which the utility owners, managers and operators want the system to perform over the long term. The LOS can include any technical managerial or financial components the system wishes as long as all regulatory requirements are met. The LOS will become a fundamental part of how the system is operated. 3.1 Why a Level of Service Agreement There are two key facets to asset management—defining the level of service the system will strive to provide its customers over the long term and determining the most efficient and economical way to deliver that service (the least cost approach). Therefore, determining and detailing the level of service that the system is going to provide is a key step in the overall process. The LOS can be one factor in determining critical assets, it can also provide a means for assessing overall system performance. 3.2 What is the Minimum Starting Point for the LOS? All systems must operate within the state and federal regulations and requirements; (e.g. Safe Drinking Water Act and the Clean Water Act). The maximum level of the LOS is defined by the maximum capabilities of the assets. Section 4 - Critical Assets 4.0 Introduction Assets fail ! How the consequences of failure are managed is key to success. Not all assets are equally important to the system's operation; some assets are highly critical to operations and other are not critical at all. Because assets fail, how to manage the consequences of failure is vital. 4.1 Determining Criticality Not every asset presents the same failure risk, or is equally critical to a system's operations. Therefore, it is important to know which assets are required to sustain performance. For example, 5 passive assets (such as pipes) decay over time and active assets (pumps, motors)decay with use. Critical assets are those which have a high risk of failing and major consequences if they do fail. Things to consider in determining vulnerabilities include: • Asset age • Asset condition • Failure History • Historical knowledge • General Experiences with the Asset • Knowledge of How the Asset is Likely to Fail • Time vs. Use In determining the consequence of failure, it is important to consider possible costs, including: • Repair costs • Social Costs related to the loss of the asset • Repair/ Replacement costs related to collateral damage caused by failure • Legal costs related to additional damage caused by failure • Environmental costs related to the failure • Reduction in Level of Service • Other costs associated failure or loss of an asset 4.2 Assessing Criticality Assessing criticality requires and examination of the likelihood of failure and the consequence of failure as discussed. The assets that have the greatest likelihood of failure and the greatest consequences associated with the failure will be the assets that are the most critical. Section 5 - Lifecycle Costing 5.0 Introduction Asset Management enables a system to determine the lowest cost options for providing the highest level of service over time. An asset management program helps make risk-based decisions by choosing the right proiect, at the right time,for the right reason. Lifecycle Asset Management focuses on management options and strategies considering all relevant economic and physical consequences from initial planning through disposal. Lifecycle components include: • Planning • Creation/Acquisition/Design • Operation and Maintenance • Monitoring Condition and Performance • Rehabilitation/ Renewal • Disposal • Audit and Review 6 5.1 Options for Dealing with Assets over Time There are four basic options for dealing with assets over time: • Operate and maintain the existing assets • Repair the assets as they fail • Rehabilitate the assets • Replace the assets 5.1.1 Asset Operation and Maintenance Operation and maintenance (O&M)functions relate to the day-to-day running and upkeep of assets and are particularly relevant to short-lived dynamic assets(such as pumps), where deterioration through lack of regular maintenance may result in rapid failure. It is most advantageous to the utility to spend the greatest portion of its 0&M budget on assets that are critical to the overall operation of the utility. These assets have the greatest chance of costing the utility money if they fail. 5.1.2 Repair of Assets Systems need to consider how long they will keep an asset in service prior to replacement of the asset. To some extent,these two items—repair and replacement—are off setting. There is a balance between how much to spend in each category: maintenance, repair, and replacement to achieve the most efficient system. 5.1.3 Rehabilitation of Assets When an asset fails, or approaches failure, the typical thought is to replace it with a new asset. There is another option; rehabilitation rather than outright replacement. Rehabilitation brings the asset into a usable condition without actually replacing it. In many cases, it may be cheaper to rehabilitate and it may extend the life span of the asset while reducing impacts related to asset replacement. An example of rehabilitation is slip-lining a wastewater pipe that is nearing the end of its useful life. The pipe can be lined without having to dig the original pipe out of the ground, thus possibly reducing the costs of installation and the inconvenience of the construction. 5.1.4 Replacement Replaced assets can either be part of a replacement schedule or a capital improvement plan. A replacement schedule should be developed that indicates those assets that will be replaced within the next 20 years. This includes assets in smaller dollar amounts or routinely recurring and should include assets funded from system revenues. 5.2 Capital Improvement Planning A long-term capital improvement plan should be built to look at the utility's future needs. Ideally the planning period would be a minimum of 5 years. The categories of capital improvements to be considered include Capital needs related to: • Future/ upcoming regulations • Major asset replacement • System expansion 7 • System consolidation or regionalization • Improved technology At a minimum the following information should be identified for each item: • Description of the project • Brief statement regarding the need for the project • Year project needed—is it flexible or absolute • Estimated cost—and how the costs were derived • Funding source(s) • Changes in overall operations to occur as a result of the project (operator requirements, additional O&M costs, regulatory changes, efficiencies to be gained, etc.) • Impact of the project on LOS 5.3 Annual Review of Asset Replacement Projects Asset replacement projects will be included in the Repair and Replacement Schedule and the Capital Improvement Plan. It is a good idea to review both of these documents on an annual basis to determine if all the listed projects are necessary. The questions to examine in the review include the following: • Is the reason/need for the project still valid? • Have the costs changed since originally projected? • Is there a better approach or a better technology that can be used to address the need? • Can the project be safely delayed? • Does the project need to be completed earlier? • Is there a method of rehabilitation that could be used rather than replacement to save costs? • Would it be more reasonable to reduce the LOS than increase the asset's capability? • Will funding be available for the project? Section 6.0 - Long-Term Funding Strategies Sound financial decisions and developing an effective long-term funding strategy are critical to the implementation of an asset management program. Knowing the full economic costs and revenues generated by the utilities will inform the City financial forecast. The sources of funding for the overall operation and maintenance of a water or wastewater system, including asset repair, replacement and rehabilitation include the following: • System revenues • System reserve funds • System generated replacement funds • Non-system revenues 8 Section 7.0 - In Conclusion The framework consisting of the five core areas is the starting point for asset management • What do we own • Where is it • What is its condition • What is the remaining useful life • What is its value Beyond planning, asset management should be implemented to achieve continual improvements through a series of"plan, do, check, act" steps: • Plan: Five core area (short-term), revise asset management plan (long-term) • Do: Implement asset management program • Check: Evaluate progress, changing factors and new best practices • Act: Take action based on review results Much of the above discussion was taken from: "Asset Management:A Guide for Water and Wastewater Systems"by the Environmental Finance Center, New Mexico Tech (2006 Edition) https://www.env.nm.gov/dwb/assistance/documents/AssetManagementGuide.pdf 9