a new way of stormwater management - apwa-nc...
TRANSCRIPT
A New Way of Stormwater ManagementApplying Asset Management to Stormwater Programs
Speakers:Ed Othmer,PE, CPESC, CPSWQ, QSP/D, ToR
Co-author:Drew Kleis
APWANorth CarolinaStormwater Management Conference
September 14, 2015
Agenda
1. Emerging Business Conditions
2. Approach
3. Future Investment Needs (Example)
Emerging Business Conditions
http://www.colbertnation.com/
Emerging Business Conditions
Source: http://www.colbertnation.com/the‐colbert‐report‐videos/425692/april‐22‐2013/tiny‐triumphs‐‐‐infrastructure‐‐‐river‐pollution
• Increasingly stringent regulations
• Aging infrastructure
• Flood planning disconnected from water quality planning
• Customer base not aware of all services provided
• Changing Boards and Councils
• Limited resources
• Key employees are retiring
• Renewed focus on accountability
Emerging Business Conditions
Approach
What is Asset Management?
• Clearly communicates – What we need & why we need it– Long term funding needs to sustain the services– Consequences & risks
• Sound basis for prioritizing work
• Transparent, balanced
OLD
• Budget based on last year• Little knowledge of system
risks
Backward Looking
• Projects determined as problems arise during the year
Reactive
• Do as many projects as you can afford each year
Budget Constrained
• Money is spent but overall risk may not have been reduced much
Ignores asset and
system risks
NEW
• Based on asset risk scores and cost
Forward Looking
• High risk assets slotted for renewal before failure occursProactive
• Budget could be determined based on agreed risk targets for system
Risk or Budget
Constrained
• High risk assets addressed first• Budget may rise or fall to meet
risk targets
Focused on risk
management
Risk‐Based Planning Represents a New Focus
What Is Failure?
Desired Condition?
Minimum Standard?
Levels of Service
Step 6:Business Risk Evaluation
Steps 7, 8, & 9: Optimize Investments and Fund
Steps 1 – 5Asset Registry & Levels of Service
Mission, Goals, and Core Principles
Watershed Asset Management Plan
Cond. Assessment
TMDLs
Flood Risk Mgmt
Program Integration “Holistic Approach”
Best Available ScienceNPDES
Storm water as
Resource
Asset Management Overview1. What do we own / manage?2. What is its required level of service?3. Which assets are critical?
a. Conditionb. Business Risk Exposure
4. What are my optimized management strategies?a. What needs to be done?b. When?c. Costs?
5. What do I need to do to fund it?
InventoryAssets
DetermineResidualLife
Set TargetLevels of Service
AssignRisk Rating(Criticality)
DetermineManagement
Strategy
DetermineAppropriate
CIP
FundYour Strategy Build the AMP
DetermineReplacement
Costs
IdentifyFailure Modes
Asset Definition & Hierarchy
Right-of-Way
Asset Definition & Hierarchy
What’s More Important?
Source: City of Raleigh, Update on Integrated Stormwater Project Prioritization Model
Business Risk Exposure (BRE) Analysis:
• The most powerful element in asset management!
• Not all asset are equal!
• Used for prioritization of activities with limited funding
What Is The Risk Associated With My Assets?
Triple Bottom LineConsequences
of Failure
Consequenceof Failure (CoF)
CoF
BusinessRisk
Exposure
BRE=
Condition,Reliability,
Performance
Probabilityof Failure (PoF)
xPoF
Triple Bottom Line for CoF
• Balanced
• Transparent
• Recognizesall concerns
• Doesn’t borrow from future generations
Business Risk Exposure
Inputs and Outputs
Asset Management
Database
Watershed Asset Management Plans
Water Quality Improvement Plans
TMDL Compliance
Data
Natural Assets
Soft Assets
HardAssets
Staff
Future Investment Needs (Example)
Where’s the money coming from?
What’s this gonna cost me?
How am I going to pay for this?
The Operations Manager The Finance Manager
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
2064
2066
2068
2070
2072
2074
2076
2078
2080
2082
2084
2086
2088
2090
2092
2094
2096
2098
2100
2102
2104
2106
2108
2110
2112
Asset Type Summary
Hard Assets (including shared) Soft Assets Natural Assets Average
Long Range Capital Needs by Asset Type Year Asset Name Action Type Action Cost Risk Score
2014 Metal pipes LIN-HAS-78 Replace $340,000 25
2014 Metal pipes LIN-HAS-92 Replace $176,000 25
2014 Metal pipes LIN-HAS-114 Replace $49,000 20
2014 Pump #2 Oak St. PS Rehab $20,000 20
2014 GenSet Vine Rd. PS Replace $80,000 15
…
Average:$199.8 M
$7,460
$4,225
$2,603
$3,701
$854$1,134
$‐
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
San Diego Bay San Diego River Mission Bay Penasquitos San Dieguito Tijuana River
Total Investm
ent (Million)
Hard Assets Soft Assets Natural Assets Average Total
Long Range Capital Needs by Watershed
Funding Scenarios
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
2014 2019 2024 2029 2034 2039 2044 2049 2054 2059 2064 2069 2074 2079 2084 2089 2094 2099
Tota
l Bac
klog
($ M
illio
n)
Scenario 1 - Full Service Level Attainment Scenario 2 - Current Budget ($34.5M) Scenario 3 - Increase $2 M for 5 years
Scenario 4 - Increase $6 M for 5 years Scenario 5 - Increase $8 M for 5 years Scenario 6 - Increase $10 M for 5 years
How to get started…
1. A basic inventory can give enough data to justify investment
2. Asset management should not operate remotely
3. Senior management understanding the concept is critical to success
4. Staff should be involved and included in developing the program and compiling data
5. Software does not need be complex
6. You can manage the program
JUST GET STARTED
