EPA / WERF/ WaterRF Framework

Transcription

1 EPA / WERF/ WaterRF Framework 1. What is the current state of my assets? 2. What is the required LOS? System layout Data hierarchy Standards inventory Condition assessment Protocol Rating methodologies Expected life tables, decay curves Valuation, life cycle costing Demand analysis Balanced scorecard Performance metric Develop asset registry Assess Condition and failure modes Determine residual life Determine life cycle and replacement costs Set target Levels of Service (LoS) Determine Asset Risk Optimize Capital Investment Optimize O&M Investment Determine Funding Strategy Build AM Plan Failure mode and effects analysis Business Risk Desktop / Interviews Confidence level rating Strategic validation Optimized decision making Root cause analysis Reliability centered and Predictive maintenance Optimized decision making Renewal annuity Asset management plan Policies and strategies Annual budget 3. Which assets are critical? 4. What are my best CIP and O&M strategies? 5. What is my best funding strategy?

2 Capacity Projections Ohio Senate Bill 2 Asset Management Plan Requirements Presented by Sherry Loos State Coordinator

3 What is Approved Capacity? Approved capacity means the allowable rate at which water may be processed by a component of a water-supply source or a WTP. Approved capacity of a water-supply source or WTP is based on the limiting component. Approved capacity of a source/wtp system is the lesser between the approved capacity of the water-supply source and WTP.

4 Where do I find it? It should be in your Plan Approval letter. It should also be noted in your last Sanitary Survey report. When in doubt, call your OEPA Environmental Specialist or your engineer.

5 Draft AM Rules Requirements (a) Written approved capacity projections meeting the requirements of Ohio EPA's "Planning and Design Criteria for Establishing Approved Capacity for: 1) Surface Water And Ground Water Supply Sources, 2) Drinking Water Treatment Plants (WTPs), and 3) Source/WTP Systems" (2010 ). (b) Identification of infrastructure needed to meet written approved capacity projections.

6 New approved capacities will be determined by Ohio EPA only if the public water system is requesting a change in its water-supply source or WTP capacity otherwise the approved capacities from the most recent plan approval will be restated in the plan approval letter.

7 What components enable your approved capacity? And, what is their condition? If you aren t meeting it now, what improvements are needed?

8 How does your production compare? Close to capacity? What is your limiting factor? This should impact your planning for future capital improvement projects to increase capacity. Can you make improvements to distribution to reduce water loss? Does a neighbor have excess capacity? Be honest and realistic about future demand. Do you actually project increasing demand? Many places in Ohio have seen reduced demand.

9 How does your production compare? Too much capacity? Are you downsizing in future capital improvement projects? Are there opportunities to serve others? Restrain optimism for grand plans of growth and speculative development. Be realistic! Lost industrial users and population decline have left many communities with excess capacity. Some have also overestimated future demand and overbuilt hoping for new customers.

10 Comments or Questions?

11 Capital Improvement Plans & Long Term Funding Strategies Ohio Senate Bill 2 Asset Management Plan Requirements

12 Draft AM Rules Requirements (16) Capital improvement plan (CIP). (a) A CIP will include annual projections in five-year, ten-year and twenty-year planning horizons with detailed expenditures in each of those time frames. (b) The projects should be listed by the year in which they are planned and include, at a minimum, the following information: (i) Description of the project. (ii) Need for, and benefits of, the project. (iii) Estimate of project cost. (iv) Estimate of operation and maintenance. (v) Funding sources. (vi) Impact on Level of Service.

13 Draft AM Rules Requirements (17) Long-term funding strategy to support asset management plan implementation, including, but not limited to, the identification of sources and amounts of funds to finance the needed repair, rehabilitation, replacement or expansion of assets, including debt service and to provide for emergencies for each of the following ten years.

14 How do we define a Capital Improvement? Capital Improvement: A major, non-recurring physical expenditures for items such as equipment, tankage, structures, buildings, and collection system infrastructure.

15 Preventative & Predictive Maintenance in a CIP? The rehab/replacement has a long useful life (ex years). Exceeds a certain dollar threshold (ex. $25K, $50K, higher). Is not included in the annual O&M budget.

16 Managing Predictive Maintenance Predictive Maintenance is based on an estimated useful life, but the actual project is triggered when performance or condition dips below a specified threshold. Project financing is planned and ready for the estimated useful life.

17 When to finance? When to save? It comes down to the cost of borrowing vs. the cost of saving, and debt capacity. Near term projects (less than 5 years) it may not be possible to save enough. If the useful life of the project or purchase is less than 20 years, consider saving for 100%. Consider saving for 100% of replacement projects for things that have a shorter useful life and/or are less likely to qualify for subsidized loans. If you are eligible for low interest loans below the rate of inflation, consider planning to save 10-15% soft costs and borrow for the rest. Go after grants if you are eligible, don t count on them for the future.

18 Justifying a Large Reserve Fund: Your AM Plan is Your Friend Your Asset Management Plan provides the justification for large reserve accounts or carryover balances. Documentation for your Auditor. Proof of Need if elected officials balk at your rates!

19 The Value of a CIP A CIP requires a systematic evaluation of all potential projects at the same time. A CIP requires a utility to prioritize, and should focus on preserving a utility s infrastructure while ensuring the efficient use of public funds A CIP allows the governing board to better project future revenue needs. A CIP can serve as a public relations and economic development tool.

20 Steps in Completing a CIP 1. Identify the team 2. Decide on a format 3. Establish rating criteria 4. Identify projects 5. Identify project costs 6. Complete a project list 7. Rate projects 8. Prioritize projects 9. Group projects 10. Complete a schedule 11. Complete the report 12. Implement the plan 13.Update the plan

21 Projects already in the works High priority projects Your CIP 5 Year Plan Consider consolidating or dividing projects to optimize grant opportunities if eligible. Hand-in-hand with 5-year detailed rate study. Pay attention to inflation. May be too late to save enough for projects that would ideally be paid for out of reserves.

22 Your CIP 10 Year Plan Time to consider other more economical alternatives. Start to use data-driven decision making. Build reserves for out-of-pocket projects. Very important to factor inflationary trends. Start to realize long-term cost savings of Asset Management Plan implementation.

23 Your CIP 20 Year Plan Following a Master Plan. Adjusting remaining useful life and adjusting CIP schedules based on condition assessments. Flexibility to adopt new technology or methods. Saving for pre-determined reserve fund goals for each project. Ensuring rates and reserves keep up with inflation.

24 Resources AWWA M29 Water Utility Capital Financing (4 th Edition), UNC Environmental Finance Center Plan to Pay Scenarios to Fund Your CIP (free Excel spreadsheet download).

25 Resources Especially for small systems: RCAP Funding Grid and RCAP Funding Scenarios Spreadsheet. Visit for latest version.

26 Recorded RCAP Asset Management Webinar Series: Completing a Capital Improvement Plan Resources Link provided on AM page of Ohio RCAP website. e04310huxsoj1m/capital%20improvem ent%20reshoot.mp4

27 Comments or Questions?

28 Operation & Maintenance Plans Ohio Senate Bill 2 Asset Management Plan Requirements

29 Draft AM Rules Requirements (11) Operation and maintenance programs. (a) Implementation procedures and standard operating procedures (SOP s) for daily operation of the facility. (b) Performance testing protocols and maintenance schedules for each of the following: (i) Wells, reservoirs and intakes. (ii) Pump stations. (iii) Electrical equipment and controls. (iv) Water treatment facilities. (v) Water storage tanks. (vi) Distribution system components. (vii) Auxiliary power.

30 Draft AM Rules Requirements (11) Operation and maintenance programs (continued ) (c) Maintenance schedules shall be based on the following: (i) The maintenance frequencies recommended by the manufacturer, for those components for which such recommendations exist. (ii) For all other components, the maintenance frequency commonly used in the water works industry such as recommendations by the American Water Works Association s performance testing. (iii) The public water system will determine other acceptable bases for operation and maintenance if paragraphs (a) and (b) of this section are not applicable. (d) Demonstrate an adequate maintenance log is maintained.

31 Many of These You Have Wells, reservoirs and intakes Pump station manuals Electrical equipment and controls Water treatment facilities O&M Manual Water storage tanks Distribution system components Auxiliary power

32 Some SOP s you probably need Wells, reservoirs and intakes Pump stations Electrical equipment and controls Water treatment facilities Water storage tanks Distribution system components Auxiliary power

33 Distribution Core SOP s 1. Hydrant Flushing (corrective) 2. Hydrant - Inspection and maintenance 3. Disinfectant Residual Sampling 4. Responding to low chlorine residual 5. Responding to low pressure 6. Storage tank inspection 7. Taking a coliform sample 8. Valve exercising 9. Water Main Break 10. Issuing a boil water order 11. Safety a. Personal Protective Equipment b. Traffic Control c. Confined Space d. Excavation and Trenching

34 Distribution: Next Level SOP s 1. Nitrification response 2. Handling a total coliform positive 3. Potential contaminant in the system 4. Customer inquires & response 5. Leak detection 6. Water loss determination 7. Location of water mains 8. Meter replacement 9. Meter testing 10. Tapping (large taps, small taps) 11. Pump station inspection, operation, and maintenance

35 Advanced and Site Specific SOP s Chlorine mapping Cross connection control plans Hydrant inspection and maintenance program Hydraulic modeling Leak detection/ water loss control program Mapping/GIS Data Management Pressure management program Valve exercising program Booster chlorination Cathodic protection inspection Cathodic protection monitoring/inspection Corrosion control Cutting AC pipe Filling a storage tank Finding valves Internal corrosion monitoring and control Hydrant repair PRVs Inspection, Maintenance, Repair Nitrification control Soil resistivity testing Storage tank - Cleaning Taps (large and small) Unidirectional flushing Valve operation 16" or larger Valve repair (not under pressure) Valve repair (under pressure)

36 Are You Using Best Practices? Following manufacturer preventative and predictive maintenance schedules and instructions. Tank inspections, cathodic protection, cleaning and coating Distribution System recommended preventative and predictive maintenance: o o o o Unidirectional hydrant flushing & testing twice per year Valve exercising 1-2x per year, & maintenance Water Audits &Active Leakage Control (ALC) Pipe condition/performance monitoring

37 Written SOP s won t mean much if they aren t practiced! How will you support your staff with training to understand and implement SOP s. Where will staff find them? For each maintenance or inspection task, what are the performance indicators or condition assessments that trigger follow up work?

38 Resources SOP s Cooperative o Costs between $120-$3K/yr based on population o AWWA Manuals o G Distribution Systems Operation and Management o M44 Distribution Valves: Selection, Installation, Field Testing, and Maintenance o Many others manuals and handbooks

39 Resources National RCAP How-To Videos o SOP training videos o Most are 3-8 minutes o

40 Has anyone completed assembling SOP s, Testing Protocols and Maintenance Schedules? Questions or Comments

41 Emergency Response & Contingency Plans Ohio Senate Bill 2 Asset Management Plan Requirements

42 Draft AM Rules Requirements (12) Emergency preparedness and contingency planning program. (a) Community public water systems shall prepare a written contingency plan meeting the requirements of Chapter of the Administrative Code including, but not limited to documentation demonstrating the resources and ability to implement a contingency plan as required under rule of the Administrative Code. Visit

43 Contents of the plan Map of the Distribution System Maps should include location of valves, well field, surface water intakes and emergency connections as applicable.

44 Contents of the plan Budgets for Emergency Use Funds for emergency repairs & alternative water supply Recommend minimum 45 days, ideally 90 days, working capital to operate Clear rules/policies about procurement during emergencies that enable response

45 Contents of the plan Determination of the most likely circumstances that will affect the public water system.

46 At a minimum, all public water systems shall address the following circumstances: Short term power failure (time of interruption is less than two hours). Extended power failure (two or more hours). Pump or motor failure. Loss of water from a well or other water source. Line breaks that affect the routine delivery or treatment of water. Natural disaster (e.g. tornado, flood and drought). Unplanned absence of operator. Contamination of source water including releases of oil and hazardous substances. Exceedances of a maximum contaminant level (MCL) or an action level (ALE). Violation of a treatment technique.

47 SOP s & The Plan Description of the procedures to be followed and actions necessary to maintain or restore service to customers. Public water systems that use automation to monitor or control the systems shall include plans to manually operate the public water system in the event of loss of automation. Public water systems that have auxiliary power shall include plans to operate the public water system on auxiliary power in the event of a loss of power.

48 Critical Users Keep a list of water users having critical needs for a continuous supply of water (e.g., hospitals, dialysis centers and nursing homes). Maintain list of consecutive systems which includes contact information. A description of the process used to determine the list of critical users.

49 Notifications Public water systems shall identify the method and timing of notification of water users, Ohio EPA, local health departments and local EMAs. The notification shall communicate that an emergency affecting the ability of the public water system to provide potable water exists.

50 Documentation Maintain records documenting the time and method of notifications. If depressurization has occurred, document the procedure used to return the public water system to normal service (SOPs).

51 Review & Revise At least annually, exercise responses to one or more of the circumstances identified in the plan. The exercise may be discussionbased, tabletop or live. Consult with the county EMA regarding participation in a hazardous spill exercise. Maintain documentation at the public water system the exercise happened. Document what went well and improvements needed.

52 Triggering the Plan If a circumstance triggers the activation of the contingency plan, public water systems shall do the following: Follow the contingency plan to the extent the circumstances allow. Notify Ohio EPA immediately, but no later than twenty-four hours from the beginning of the situation requiring activation of the contingency plan. Develop and maintain a written after-action report that includes an assessment of the plan's effectiveness and any changes that have been or should be made to the plan as a result of the assessment.

53 Other Requirements Contingency plans are not public records in accordance with section of the Revised Code. On an annual basis each public water system shall supply emergency contact who will ensure a response from the system within 30- minutes. In the event that emergency contact information changes, the owner, operator and operator of record of the facility shall be individually and jointly responsible for notifying Ohio EPA of the changes within 3-days.

54 How many of you are confident your Contingency Plan meets the requirements? Questions or Comments