Ensuring Value for Money Asset Management Project at American Samoa Power Authority By William Spitzenberg (ASPA) and Richard Taylor (Thomas Civil & Env. Consultants) 10 August 2016

What does Asset Management have to do with ensuring value for money? Because Water Utilities utilise assets in providing water and wastewater services. And it’s the assets that cost the money!

What is Asset Management? It links levels of service (what the customer wants) with asset inventory and condition assessment considers asset criticality and demand to identify the cost of asset renewals and long term funding requirements

What is Asset Management? This is all documented in an Asset Management Plan

What are Levels of Service? Levels of Service (LOS) are used to describe the service which the customer receives from the organisation. Performance Measures are indicators used to demonstrate how the organisation is doing in relation to delivering levels of service.

Proposed Levels of Service for ASPA – Water Supply (1)

Proposed Levels of Service for ASPA – Water Supply (2)

Why is Water Demand important? Because to design new infrastructure (which will last 50 years plus) you need to know what water demand you are designing for - to meet the required level of service long term. This applies to source, treatment, transmission and distribution (pumps & pipelines). The level of water use will also determine the storage requirements needed in the network.

Water Demand – Analysis

Water Demand – Trends

Water Demand – Looking Forward

Water Supply Asset Register

Water Supply Asset Lives

Risk and Critical Assets Consequence criteria have been agreed Likelihood Table and Risk Matrix Table included in AMPs Critical assets have been identified Renewal of critical assets should be ‘brought forward’ – and this has been implemented for water tanks

Risk Assessment – Criteria and Scoring

Risk Assessment – Likelihood Table and Risk Matrix

Climate Change Considerations Identify assets which are low lying and close to the coastline – at risk from sea level rise, cyclone and storm surge Aim to: Waterproof these assets to 2m height (with a structural element to withstand tsunami). Provide ventilation to these buildings. Also identify assets in flood prone areas and mitigate risk from flooding

Water Supply - Asset Renewal Expenditure Profile

Water Supply - Asset Renewal Expenditure Profile

Water Tanks Renewals - Details

Water Main Line Renewals - Details

Water Supply Asset Renewal Expenditure Profile - Key Issues Next 5 Years Wells (to replace GUDI Wells) - $2.7 mill Tanks – 7 tanks need immediate replacement, 11 within 5 years - $4.8 mill Water Main Lines – AC and PE pipes (including PE service main issues) - $99.4 mill Water Service Lines - $6.4 mill Customer Water Meters - $2.7 mill

Options for Water Tanks

Comments re Water Supply Renewal Expenditure in First Five Years Wells – Expenditure necessary for public health Tanks – Required to maintain service. Could reline some tanks to extend their life and reduce short term costs Water Main Lines and Service Lines – AC and PE pipes. Replacing badly leaking pipes will reduce leakage, pumping electricity costs, water extraction and reduce NRW. Need to prioritize works and look at procurement options to reduce costs. Customer Meters – replacing will increase billed volume and reduce NRW, but these issues are not a priority for customers

So what are the benefits of developing Asset Management Plans? Where is the ‘value for money’? By: Understanding what is needed to provide the agreed level of service Understanding what the priorities are for expenditure Making wise decisions on asset expenditure - which has the potential for significant cost saving – ensuring Value for Money

Any Questions