Common Ground: Benefits of AM

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Common Ground Benefits of Asset Management and
Emergency Response to a Community

Art Astarita Maine RCAP Tom Essig Pennsylvania
RCAP
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RCAP Network
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www.rcapsolutions.org
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Pre-Training Questions

• Take five minutes to complete
• the questionnaires

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Todays Agenda

• Review of Emergency Response Components
• How Does Asset Management overlap with
• Emergency Response Plans
• Vulnerability Assessments
• WARN
• Demonstrate Planning Implementations

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Efficiencies for Small Systems

• Motivations.
• Demonstrate the relationships of EPA forms to
  meet regulatory requirements.
• Create tools to streamline reporting.

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Water Sector Goals

• Provide safe, clean affordable water
• and/or wastewater collection, treatment and
  disposal.
• Maintain equipment - decrease service failures
• Prevent a breach in security
• Act efficiently in an emergency
• Preserve systems brain trust

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Fiduciary duties
a person to whom property or power is entrusted
for the benefit of another The primary
responsibility falls on operators, the board of
directors and local regulatory officials.
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Prudent Management

• Decisions based on best available information.
• Information to justify and explain cash needs

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Vulnerability Assessment
Asset Mgmt
Emergency Response Plans
Asset Inventory
Asset Use
GASB 34
Comprehensive Sanitary Survey
WARN
Capital Improvement Planning
Implementation
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Asset Safety Security Management

• Document critical equipment condition
• Determine assets at risk (for failure security)
• Install security measures
• Develop Rehearse emergency procedures
• Establish partnerships

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Purpose of a Sanitary Survey

• Identifies minor or significant deficiencies
• List required repair/rehab deadlines
• Documents required changes identified.
• Helps system track repairs
• Streamlines enforcement if no compliance

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Assessing Vulnerability

• Identify system components at risk
• Determine impact of a breach in security
• Quantify potential cost to detect, delay, and
  respond from a breach

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System Elements to Assess Vulnerability

• Physical components
• Control centers
• Maintenance and storage facilities
• Management and staff personnel
• Operating rules and procedures

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Levels of Security

• Balance of investing time and money against the
  relatively new security threats.
• Security responses range from stopping people at
  the gate, to hardening facilities.
• Should have input from LEPC CEMA

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What is an Emergency Response Plan (ERP)

• Preparation to handle an emergency.
• Response to an actual emergency.
• Recovery from an emergency.
• Mitigation to prevent future emergencies.

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Customers Critical ERP Component System
customers probably first to ID a problem

• Priorities and Procedures to reach customers.
• Schools, Hospitals, Nursing Homes, Prisons
• Elderly
• Immobile
• Immunity deficient
• Children
• Pregnancies

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WARN Utilities helping Utilities

• Increase Planning And Coordination
• Improved ERP Contact List
• Enhance Access To Specialized Resources
• Expedite Arrival Of Aid
• Reduce Administrative Conflict
• Increase Hope

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The WARN provides

• A mutual assistance agreement and process
• Consistency with other mutual aid programs and
  compliance with NIMS / FEMA
• Resources to respond and recover quickly.
• A forum for developing and maintaining emergency
  contacts and relationships.

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Relationships and Regionalization

• Water and wastewater industries can benefit
• from mergers by
• generating new skills, services and assets
• to ensure long term viability

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Small System Challenges

• Increasing costs for regulatory requirements
• Gap between infrastructure needs and decreasing
  governmental funding
• Equipment often requiring major upgrades
• Capital needs often exceed the local capacity

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Why Consider Regionalization?

• - Save Money
• Improve safe, dependable service
• Increase operational and managerial efficiency
• Access additional water sources
• Meet water quality requirements

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Benefits of Regionalization

• Cooperative purchasing
• Contract operations
• Billing and delinquent collections
• Shared equipment
• Physical interconnects
• Mutual aid agreements.

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Regionalization the Bottom Line

• Systems achieve better overall capacity
• Helps systems better manage their assets
• Achieves Full Cost Pricing to plan and fund
  system improvements over time
• Market forces will lead more systems towards
  considering regionalization

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RCAPs Role

• Facilitate meetings between struggling systems
  and systems that could partner with them
• Training as to the benefits and levels of
  regionalization
• Utilize public venues to discuss and learn
  creative approaches
• Provide education and outreach to elected
  officials and funders and seek financial
  incentives for systems to implement.

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Break Time
Break Time
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Vulnerability Assessment
Asset Mgmt
Emergency Response Plans
Asset Inventory
Asset Use
GASB 34
Comprehensive Sanitary Survey
WARN
Capital Improvement Planning
Implementation
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How can Asset Management Help?

• Know what you have.
• Awareness of equipment condition.
• Understand what you can sacrifice.
• Conduct preventative maintenance.
• Plan for replacement.
• Fund replacement accounts.

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Run-to-FailureMentality

• ARRA money invested for construction.
• We must improve our long-term management of these
  installed assets!

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Manage Asset Deterioration
Initial Design Capacity
Managed Deterioration
Management Zone
Management Zone
Minimal Performance Level
Performance
Inherent Deterioration
Time
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Governmental Accounting Standards Boards
Statement 34 (GASB 34)

• Need a clean opinion from an auditor
• Report value of infrastructure assets
• Determine cost of deferred maintenance
• Establishes a good credit rating

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Asset Management Mantra

• Inventory
• Prioritize
• Plan
• Implement
• Review revise

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Tools for Management
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Sketch Maps
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Inventory Valve Asset Attributes
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Inventory Hydrant Assets Attributes
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Sources of Information

• Use All Sources to Identify Every Asset
• As-built drawings and Design plans
• Operation and Maintenance Manuals
• Maintenance records
• Capital Improvement Plans
• Comprehensive Performance Evaluations
• Staff knowledge

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Personnel and Security

• Personnel are an essential part of your system
• State police background checks now required for
  operator recertification
• Collect employee information/records
• Do not violate privacy laws!

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Inventory Asset Attributes

• Accurately Describe Asset (make/model)
• Installation Date
• Asset Condition
• Estimated Useful Life
• Cost to replace now
• Energy Consumption kwh/yr

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Consequence of Failure (CoF)
Estimated degree of impact on utility service
should asset fail. How bad would it be if
this asset failed unexpectedly?
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Inventory Assets Document Attributes
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CUPSS Internet Link to Boise State Environmental
Finance Center
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Develop Plans

• Understand critical assets performance (Asset
  Mgmt)
• Determine risk (Vulnerability Assessment)
• Develop response procedures (ERP)
• Budget for preventative maintenance (OM)
• Create Fund Capital Improvement Plan (CIP)

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Implement Plans

• Determine CIP impacts upon users rates
• Contribute to reserve accounts
• Formalize Mutual Aid Agreements (WARN).

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Inspect Assets and Policies

• Conduct a system audits (energy, I/I, water loss)
• Act on Vulnerability issues (security COF)
• Perform drills revise emergency response plan
• Revise system policies

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Energy Savings Calculation
Maintain Equipment at peak Performance

• Existing asset (kwh/yr) - Replacement asset
  (kwh/yr)
• kwh/yr x cost/kwh Savings per year
• Decide
• change immediately
• or
• Future change if power increases to x per kwh

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Implement Plans

• Create a multi-year plan (CIP).
• Phase Plan to lessen impact upon users.
• Contribute to reserve accounts.
• Formalize partnerships (WARN).

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Inspect Assets and Policies

• Fund conduct preventative maintenance
• Conduct a system audits (energy, water loss)
• Perform Asset Vulnerability assessment
• Execute drills revise emergency response plan
• Revise system budgets and policies

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Review and Revise Plans

• Quarterly Review
• Unanticipated changes (budget to actual)
• Pricing changes
• Change in Priorities
• Updating contact lists
• Impact On User Rates

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Next

• When all has been documented
• Asset Attributes, ERP, VA, WARN
• And studied
• Audit, Policy Reviews, Reducing Expenses, Formed
  Partnerships, Practiced response drills
• You have a good managerial financial plan

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artartart
Vulnerability Assessment
Asset Mgmt
Emergency Response Plans
Asset Inventory
Asset Use
GASB 34
Comprehensive Sanitary Survey
WARN
Capital Improvement Planning
Implementation
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• Activity

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Post-Training Questions Evaluation Sheet

• Take five minutes to complete
• the two questionnaires

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Questions Comments

• Art Astarita-Maine State Lead
• 207.766.3065
• Aastarita_at_rcapsolutions.org
• Tom Essig-Pennsylvania State Lead
• 717-766-0969
• TEssig_at_rcapsolutions.org