PACP® Based Asset Management Risk PACP® Based Asset Management

Objectives of Asset Management Maintain function or level of service as cost effectively as possible Maintain individual components (assets) at lowest life cycle cost possible The purpose of asset management is to maintain the intended function or level of service of a system as cost effectively as possible. This is achieved by maintaining the individual components of the system, known as assets, at the lowest life cycle cost possible without negatively impacting the performance of the overall system.

Asset Management in Wastewater Systems Key asset management questions: What pipes, manholes, and laterals do we own? Where are these assets located? What are their materials, dimensions, depth, and ground cover? What is the condition of each asset? What other community assets would be affected by failure of a particular asset? Which assets are critical to sustained performance? What are my best O&M and CIP investment strategies? What will be the rehabilitation cost? What effect will this have upon the utility budget? How should all of this be communicated to stake holders? These are the key questions that asset management helps answer. PACP is an integral part of asset management as it can be used to help answer a number of these questions (Next slide highlights which questions it can help answer).

PACP in Asset Management PACP can assist in developing an asset management plan by collecting asset information such as: Pipe segment length Relative location details Pipe size Pipe shape Pipe material Upstream manhole data Pipe segment lateral data Consequence of failure Defect codes (Structural and O&M) Condition grades Make it a point to discuss that CoF will be stored in Field 35 (PACP) and Field 22 (MACP) – no field for CoF in LACP.

Risk in Asset Management Risk = Calculation that takes into account Physical condition The impact of failure to System performance Stakeholders Not all assets are created equal. Risk helps us to assign a value to each asset to guide us on how to manage it properly.

Risk in Asset Management Likelihood of something bad happening and Severity of consequence(s) of failure

Risk in Asset Management Risk = LoF x CoF Likelihood of Failure (LoF) - Probability of failure of an asset Consequence of Failure (CoF) - Direct and indirect impacts that would result from an asset failure Not all assets are created equal. Risk helps us to assign a value to each asset to guide us on how to manage it properly.

Likelihood Of Failure (LoF) PACP condition grades can determine segment scores Segment scores can be used to calculate Likelihood of Failure for pipelines The Modified PACP Quick Rating based upon highest grade defect observed within a particular pipe segment The PACP Quick Rating is used to determine Likelihood of Failure values for pipelines. This rating is preferred since its derivation is based upon the highest rating scores and is not adversely skewed by the presence of multiple low condition grade scores. The… THIS IS WHY I am not sure we need to have the slides detailing the other methods.

Appendix C – PACP Condition Grading System PACP Grading System for Pipelines, Manholes and Laterals 5 – Most significant defect grade 4 – Significant defect grade 3 – Moderate defect grade 2 – Minor to moderate defect grade 1 – Minor defect grade

Appendix C – PACP Condition Grading System Pipe Broken

Appendix C – PACP Condition Grading System

Appendix C – PACP Condition Grading System

Pipe Rating System PACP Quick Rating

Pipe Rating System PACP Quick Rating 10 to 14 =A 15 to 19 = B 20 to 24 = C Etc. 10 to 14 =A 15 to 19 = B 20 to 24 = C Etc.

Likelihood of Failure Rules An asset’s Likelihood of Failure is determined based on the following scenarios: No condition assessment data is available Condition assessment data is available and there are no defects There are no more than 9 occurrences of the highest condition grade The second character is a letter (indicating more than 9 occurrences) The last two digits in the PACP Quick Rating will not be used in calculating the Modified Quick Score. Discuss what is meant by “result of the division” in the bullets above – taking the first two numbers of the PACP Quick Rating and dividing them by 10. In all cases we divide the first two digits of the quick rating by 10

Calculate LoF   Please note: A LoF of zero DOES NOT indicate that there is no likelihood of failure of this asset. Instead, any rating of zero is meant to be a flag that indicates that data is missing and should be promptly collected in order for this asset to be properly managed.

Calculate LoF  

Consequence of Failure (CoF) Direct and indirect impacts on the vicinity and community due to a potential asset failure Expressed as “Triple Bottom Line” (TBL) Economic Impacts Social Impacts Environmental Impacts

Consequence of Failure (CoF) Social costs Economical costs Environmental costs Sustainability Pipe failure may be defined in multitude of ways that can vary from one agency to the next. For the purposes of this Appendix, pipe failure is defined as the inability to convey flow due to deteriorating asset condition. Consequence of Failure (CoF) is the combination of direct and indirect impact on the vicinity and community due to a potential asset failure.   In recent decades this type of impact has typically been expressed in “Triple Bottom Line “(TBL) terms – also known as People, Planet, and Profit. This concept emerged in the early 1980’s as a criterion for measuring economic, ecologic and societal success. The TBL expands the traditional organization's financial bottom line to view other non-traditional social and environmental factors. Consideration of these factors encourages an organization to also focus on social and environmental aspects rather than solely upon the (more visible) economic aspects of management. This also helps an organization to consider its stakeholders. TBL concept focuses not only upon direct Economical Costs, but also on Social Costs and Environmental Costs. The goal is sustainability of all the assets in a balanced manner.

Economical Impacts Impact of Direct and Indirect economic losses Direct costs Asset Repairs Legal Fees Fines Indirect costs Property Values Increased Insurance Rates Utility's Credibility Typically expressed in dollars and include property damage, repair cost, and production loss, etc. Regarding sanitary sewers, economical cost considerations may include those related to pipe material, diameter, depth, and length of the pipe segments; direct or indirect interaction with other infrastructure elements such as roads and bridges in the repair vicinity; effects of local topography on required access; and possible access restriction created by such barriers as walls and fences. Direct consequences of failures include such costs as those for asset repairs, legal fees, and fines. Indirect consequences include environmental cleanup costs and loss of business revenue to the community Consideration must be given to other external costs that are not directly measureable but result from of the failure - such as loss in property value and increased insurance rates

Social Impacts Impact on Society due to asset failure Factors include Number of properties/clients affected Types of affected properties (hospitals, schools, businesses, parks, “critical services”, etc.) Duration of Failure Utility’s Credibility Public Health and Safety In addition, there must be consideration for safety issues (i.e. public exposure to health-threatening problems, injuries, or even fatalities) Reduced firefighting ability can be added as an additional social cost

Environmental Impacts Impact to ecological conditions occurring as a result of asset failure Environmentally cost considerations based on Proximity to wetlands and waterways Federal Emergency Management Agency (FEMA) flood zones Possible contamination of potable water sources Sensitivity of nearby soils

Rating Methodology 56 inch combined trunk sewer 100 feet downstream of a Combined Sewer Overflow (CSO) that crosses a body of water Vs. 8 inch sanitary sewer at the upstream end of the system that only serves one resident Lower CoF Higher CoF

Rating Methodology Considers locational and demographical information Network Position Location of Pipe Proximity to Environmentally Sensitive Features Service to customer of significant importance Accessibility for maintenance and inspection A good GIS map helps to determine these considerations CoF assigned on a scale from 1 to 6 Assets with no CoF assigned are given a value of 0 (Zero) GIS databases/overlays can provide excellent supporting information…

To group MH defects by categories Sample GIS Data Example GIS Data GIS Integration To group MH defects by categories All defective benches All broken covers All missing covers All missing frames Structural defects on the bench and channel Structural defects above the cone Structural defects below the chimney Consider how we can use this to illustrate particular attributes that affect the CoF. http://maps.dublin.oh.us/dubscovery/

CoF Examples CoF Descriptions and Associated Factors Examples include Pipe Depth Relative Network Position of the Pipe Pipe Diameter Location of Pipe Distance between Pipe and Waterway Customers of High Importance Accessibility GIS databases/overlays can provide excellent supporting information… The system owner must decide upon CoF factors and weighting

Pipe Depth Typically an economic consideration since deeper pipe is generally more expensive to repair/replace These CoF factors are only reasonable illustrations of the types of factors that could be used. These factors must be thoroughly discussed with the utility or engineer and then used consistently throughout the entire asset management program at a specific utility. * Assets with no CoF assigned shall be given a value of 0 (Zero)

Relative Network Position of Pipe Pipe Diameter Economic – Costs more to repair, replace, and rehabilitate Social – Impacts more customers Environmental – impacts to sensitive geographical area Relative Network Position Sum of relative position of all pipes discharging to an upstream structure Some utilities are storing their data in advanced enterprise GIS databases. Typically a database will carry sewer pipe attributes like material, diameter, upstream and downstream inverts, upstream structure, downstream structure, length along with other attributes. Others have more limited capabilities. In general large diameter pipes are located at the downstream portion of the system while small diameter pipes are located at the upstream portion.

Pipe Diameter Affects Economic, Environmental and Social costs Larger diameter pipes generally Serve more customers Cost more to rehabilitate * Assets with no CoF assigned shall be given a value of 0 (Zero)

Relative Network Position of Pipe

Location of Pipe GIS based maps with layers including street network, buildings, waterways and other datasets can be utilized to assign Consequence of Failure based on surface location

Location of Pipe Disruption to the community and the cost of managing emergency repairs of a pipe Accessibility for repair, rehabilitation or replacement in case of emergency Pipe failure on a major road causes more disruption to traffic compared to failure of a pipe on a local road * Assets with no CoF assigned shall be given a value of 0 (Zero)

Proximity to Environmentally Sensitive Features Consequence of Failure factor is set based on the distance between a pipe and an environmentally sensitive feature Factor affected by the nature of the sensitive environment GIS can be set-up to assign CoF based on distance to environmentally sensitive features If… close to environmentally sensitive features…. LF=Linear Foot

This example shows a pipeline which runs next to a creek and river… -if pipe damaged by feature it gets assigned a CoF factor (Click…) This table shows sample values for the CoF factor based on distance from pipe… THIS SHOULD BE DISCUSSED from the perspective of the feature being damaged by the proximity of a potentially defective pipe. The closer a pipe is to a waterway the more likely is this consequence.

Service to Customer of Significant Importance Hospitals, schools, manufacturing facilities, emergency services, etc., as determined by utility Providing uninterrupted service to these facilities may be a priority for the utility I flipped these.

Accessibility for Maintenance/Inspection Response time for a service crew may be significantly higher if access is difficult Failure may cause significant damage to the environment as well as private properties due to delays in response

Sample Calculation of Overall CoF In this example, each of the various factors were equally weighted when considering the individual Economic, Social and Environmental rates. However, these could be weighted individually (i.e. diameter considered more important than depth). Or, a utility could decide to rate each based upon the single highest rated factor in each column or by what the utility considers the most crucial component of each. A table, such as this, along with its computation and weighting methods must be developed based upon sufficient consultation with the owner. This example shows just one possible method of how calculating the CoF may be accomplished. All of this must be thoroughly discussed with the engineer or utility. The approach must be tweaked to meet the needs of the specific utility and then CONSISTENTLY applied to all of the CoF calculations throughout the system.

Enter Consequence of Failure value in Field 22 of the PACP Inspection Form Header Section 4.03

High LoF High CoF Managing Asset Risk More aggressive maintenance Risk matrix provides a basis for a maintenance and rehabilitation program Overall risk a function of LoF and CoF More aggressive maintenance High LoF Increased assessment High CoF Another approach to managing risk is to implement mitigation or control measures such as investing in back-up truck-mounted or trailer-mounted pumps and having them readily available to support a failed pumping station.

Appendix D – PACP ® Based Risk Management Considers PACP Role Regarding Risk Management in Asset Management

Managing Asset Risk CoF and LoF have a range between 0 and 6 A score of 0 (LoF or CoF) represents a data gap Information should be promptly collected Do not use/graph 0 scores! On the graph The green area represents assets with lower risk The red area represents assets with higher risk; resources should be focused on rehabilitating assets that fall in the red area Non-zero risk scores can be used to prioritize projects

Sample Asset Management Plan Collect asset condition information Sample Asset Management Plan Graph this data to help set priorities

Managing Asset Risk (Examples) 5.1, 4.4 2.4, 4.0 2.1, 3.0 4.1, 2.8 The asset risk scores that plot the furthest towards the upper right-hand corner are the highest priority rehabilitation projects to complete. 2.1, 2.5 4.4, 2.1

Managing Asset Risk (Examples) $40,000 available for rehab $25,000 available for rehab $20,000 available for rehab 5.1, 4.4 2.4, 4.0 2.1, 3.0 4.1, 2.8 This figure illustrates how to prioritize rehabilitation projects depending upon how much money is available to do the work. Starting in the upper right-hand corner (darkest red area), select the number of projects that can be completed based upon the rehabilitation budget that is available. 2.1, 2.5 4.4, 2.1

Successful Asset Management Results Shift from emergency response to strategic risk-based management of critical assets Reduce the number of asset failures Minimize the negative impacts of failures when they occur Improve performance & reliability of the system Manage O&M costs more accurately Successful asset management implementation has many benefits. The purpose of assigning a risk score to each asset is to prioritize and rehab assets in a planned cost effective manner as opposed to responding to emergencies.

Questions? ?

More Information? Ted DeBoda, PE Director@nassco.org Jane Bayer Jane@nassco.org NASSCO, Inc. (410) 442-7473 WWW.NASSCO.ORG