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Transmission and Water Main Asset Management Plan

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Transmission and Water Main Asset Management Plan CAPITAL REGION WATER WATER TRANSMISSION AND DISTRIBUTION SYSTEM ASSET MANAGEMENT PLAN July 2020 WATER TRANSMISSION & DISTRIBUTION SYSTEM ASSET MANAGEMENT PLAN Table of Contents 1. Introduction to Asset Management ......................................................................................................................... 2 Asset Management Defined .................................................................................................................................... 2 Benefits of Implementing Asset Management Principles & Practices ..................................................................... 2 Purpose of the Asset Management Plan................................................................................................................. 3 2. The Asset Management Program ........................................................................................................................... 4 Purpose of the Asset Management Program .......................................................................................................... 4 Goals and Objectives .............................................................................................................................................. 4 Stakeholders ........................................................................................................................................................... 5 3. Overview of the Water Transmission and Distribution System ............................................................................... 6 Asset Inventory as a Foundational Element for Asset Management ....................................................................... 6 Asset Classes and Relative Criticality ..................................................................................................................... 7 Inventory at a Glance .............................................................................................................................................. 8 Current State of the Assets ................................................................................................................................... 18 4. Lifecycle Management Strategies ......................................................................................................................... 56 Introductory Information ........................................................................................................................................ 56 Lifecycle Management Strategies: Purpose, Development and Best Practices .................................................... 56 Asset-Level Treatment Options ............................................................................................................................ 58 Strategies Defined by CRW .................................................................................................................................. 60 5. Levels of Service and Performance Management ................................................................................................ 63 Background Information ........................................................................................................................................ 63 Framework for Tracking Performance Metrics ...................................................................................................... 64 Water System Performance Metrics Tracked by CRW ......................................................................................... 65 6. Long-Term Funding Analysis ................................................................................................................................ 68 Introductory Information ........................................................................................................................................ 68 Methodology for Configuring Predictor.................................................................................................................. 68 Investment Scenario A: Business-as-Usual, Existing Funding Levels .................................................................. 70 Investment Scenario B: All Desired Treatments, Capped Funding Levels ............................................................ 72 Investment Scenario C: All Desired Treatments, Unconstrained Budget .............................................................. 74 7. Continuous Improvement Implementation Initiatives ............................................................................................ 76 Appendix A: List of Existing Performance Metrics ............................................................................................................... 80 Appendix B: Assetic Predictor Input Summary .................................................................................................................... 81 Water Transmission & Distribution System AMP Capital Region Water 1 WATER TRANSMISSION & DISTRIBUTION SYSTEM ASSET MANAGEMENT PLAN 1. INTRODUCTION TO ASSET MANAGEMENT Asset Management Defined Asset Management is a strategic approach to the process of planning, procuring, constructing, maintaining, upgrading, operating and disposing of physical assets to deliver a desired level of service at the most appropriate cost and with an acceptable level of risk. Since the water transmission and distribution system is already constructed, the Capital Region Water (CRW) Asset Management Program is predominantly focused on maintaining, upgrading and operating existing infrastructure. The asset management approach described herein is a way of conducting utility business that: • ensures CRW gets the most value from each asset throughout its lifecycle; • encourages ongoing planning and analysis of system condition and performance; • and ensures financial resources are available to rehabilitate or replace assets when necessary. Asset Management involves developing a written strategy to increase the efficiency and reliability of the system, while simultaneously maintaining a sustainable cost structure. Such a plan provides a holistic approach to utility operation and management, aiming to integrate planning, engineering, finance, operations, maintenance, and renewal activities. The scale, scope, age, and regulatory requirements related to CRW’s water system make ideal drivers for instilling asset management principles into current business processes. With time, proactive management of the transmission and distribution system will demonstrate clear benefits to the organization and its stakeholders. Benefits of Implementing Asset Management Principles & Practices Implementing an asset management plan, which includes high-level guiding principles as well as day-to-day best practices, provides long-term benefits that are critical for public utilities with aging infrastructure and limited financial resources. Asset Management provides utility managers with information necessary to make timely and informed decisions concerning asset investments by integrating risk models developed in Operational Insights, which works in tandem with Cityworks and GIS. These models utilize enterprise information including maintenance and repair history from Cityworks, spatial information from Geographic Information Systems (GIS), and financial data from Munis and MuniLink to drive decision making. Specific benefits of implementing asset management principles and practices include enhancements to: Asset Information • Maintains accurate knowledge of the location of assets and associated attributes. • Provides documentation and knowledge of the condition of assets over time. • Increases understanding of the criticality of the asset relative to the overall asset inventory. Utility Management • Helps to manage the demands for infrastructure improvement, service levels, reliability, and regulatory requirements and funding needs. • Provides a more formalized business-centric approach to developing future budgets. • Improves the ability to develop a long-term financial plan and funding strategy to pay for future repairs, rehabilitation projects and/or replacement efforts. Operation and Maintenance • Supports CRW’s ability to make sound and defensible operational decisions. • Maximizes the service life and ongoing reliability and performance of infrastructure assets. Water Transmission & Distribution System AMP Capital Region Water 2 WATER TRANSMISSION & DISTRIBUTION SYSTEM ASSET MANAGEMENT PLAN • Improves the balance between costly reactive maintenance and less costly proactive maintenance, incorporating formal inspections and preventive programs. • Enhances the operational efficiency of the infrastructure assets. • Supports the need for maintenance crews. Customer Relations • Enhances the quality of services. • Improves emergency response. • Generates enhanced communication with customers and improved and up to date information. • Increases the understanding of and support for the need for rate increases. • Educates the public about the infrastructure assets. Purpose of the Asset Management Plan The Water Transmission and Distribution System Asset Management Plan (AMP) serves as a guiding document for CRW employees by documenting the strategic intent for managing water system assets. This initial Asset Management Plan is intended to be an internal document that provides an opportunity to address incompatible priorities amongst organizational units by asking somewhat difficult or sensitive questions and formalizing an agreed upon
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