Linking AMPs to Short-Term and Long-Term Investment Plans Billy Haklander LH & EAPWSS, Environmental Services Engineer bhakland@london.ca Dan Olsen CH2M, AM Consultant Daniel.Olsen@ch2m.com

Presentation Objectives Understand our journey to develop an Asset Management system Understand how the Asset Management system has been used to update our Asset Management Plan for 2016 Understand how the Asset Management system is integrating all aspects of our business

Our Customers Systems Supply drinking water to approx. 500,000 residents across 15 municipalities including the City of London Describe the customers and the system (i.e. assets)

Our Vision ”The Water Board strives to operate and to continually improve the sustainable, environmentally friendly utility that provides safe drinking water at stable and reasonable prices to current and future member municipalities.”

Our Asset Management System – Investment Planning Process Long-Term affordability of service Life Modelling Process – identifying long-term asset renewal needs AM Plan, Financial Plan Developed in 2016 2016 – Processes used to develop AM, Financial, & Capital plans Levels of Service Process Risk Process – identifying short-term asset renewal needs Business Casing Process Project Prioritization Process Developed in 2014 Developed in 2015 Developed in 2015 Capital & Operating Plan Growth & Enhancement –identifying legislative, growth, efficiency and enhancement needs Master Plan and Facility/Energy Optimization Study conducted in 2015 Short-term impact to service

2016 Asset Management Plan Development Levels of Service Asset Management Strategy Financial Strategy LOS trends were identified: Value Level of Service Measure Trend (2011-2015) Availability/ Reliability # of unplanned service interruptions Average Day Demand (% of capacity) Quality # of Water Quality Incidence reported Sustainability Energy Efficiency (kwh/ML) Chemical Efficiency (kg/ML) Legislative # of non-compliance

2016 Asset Management Plan Development Levels of Service Asset Management Strategy Financial Strategy Long-Term Capital Renewal Projection (6-30 years) Unconstrained Capital Forecast (1-30 years) Lifecycle Modelling Process Short-Term Capital Renewal Plan (1-5 years) Risk Process Growth and Enhancement Plan (1-30 years) Recommendations from Master Plan, Facility/Energy Studies

2016 Asset Management Plan Development Levels of Service Asset Management Strategy Financial Strategy Financial analysis performed to establish rate increases and reserve funds needed to fund the unconstrained capital forecast over the 30-year planning period Different funding scenarios were developed and a preferred scenario was approved by the Water Board

2017 – Asset Management System in Action Negative upward trend observed for energy efficiency. Energy efficiency identified as key strategic priority for the Lake Huron and Elgin Area Primary Water Supply Systems over the next 30 years Value Level of Service Measure Trend (2011-2015) Availability/ Reliability # of unplanned service interruptions Average Day Demand (% of capacity) Quality # of Water Quality Incidence reported Sustainability Energy Efficiency (kwh/ML) Chemical Efficiency (kg/ML) Legislative # of non-compliance Levels of Service Process

2017 - Asset Management System in Action Life Modelling Process – identifying long-term asset renewal needs Levels of Service Process Risk Process – identifying short-term asset renewal needs High Lift Pumps were installed in 1960s and require a rehabilitation intervention Identified as a risk to Elgin Area Water Supply System

2017 - Asset Management System in Action Life Modelling Process – identifying long-term asset renewal needs Levels of Service Process Risk Process – identifying short-term asset renewal needs Growth & Enhancement –identifying legislative, growth, efficiency and enhancement needs An energy optimization study determined that the High Lift Pumps at the Elgin Water Treatment Plant were operating at lower efficiency and were close to their life span

2017 - Asset Management System in Action Life Modelling Process – identifying long-term asset renewal needs Levels of Service Process Risk Process – identifying short-term asset renewal needs Business Casing Process Business case was developed for replacing High Lift Pumps at the Elgin Water Treatment Plant Growth & Enhancement –identifying legislative, growth, efficiency and enhancement needs

2017 – Asset Management System in Action Through the business case process, synergy with High Lift Switch Gear renewal project was identified and projects are being coordinated Life Modelling Process – identifying long-term asset renewal needs Levels of Service Process Risk Process – identifying short-term asset renewal needs Business Casing Process Project Prioritization Process Synergy with the high lift switchgear project and annual capital maintenance. Given the age and condition of the high lift pumps, there were plans through the capital renewal program to rebuild the existing pumps to extend the life of the pumps. However, from detailed modelling it was shown that the existing pumps are operating inefficiently given the recent twinning of the transmission line in 2012) and therefore rebuilding the pumps was not a preferred option. With plans for replacing the pumps to gain the higher efficiencies in the short-term, additional investment to extend the life of the pumps was not undertaken such that the budget for annual maintenance could be used elsewhere at the plant. The high lift switchgear replacement project had one of the highest risk scores and was a candidate for replacement in 2018. However, given the plans for the high lift pumps the size of the future high lift pumps needed to be confirmed prior to finalizing the design of the high lift switchgear. This resulted in advancing the design of the sizing of the high lift pumps in 2017 as part of the high lift switchgear design project in 2017. Growth & Enhancement –identifying legislative, growth, efficiency and enhancement needs

2017 - Asset Management System in Action Long-Term affordability of service Life Modelling Process – identifying long-term asset renewal needs AM Plan, Financial Plan High lift pump and switchgear project is being implemented in 10-year Capital Plan Once implemented, the asset inventory will be updated and renewal needs for new assets will be included in the next Asset Management/Financial Plan update to inform long-term projections and affordability of service Levels of Service Process Risk Process – identifying short-term asset renewal needs Business Casing Process Project Prioritization Process Capital & Operating Plan Growth & Enhancement –identifying legislative, growth, efficiency and enhancement needs Short-term impact to service

Integrating Asset Management into our Business Investment planning process is implemented: Annually through update to the capital/operating plans Every 5 years to update the Master Plan, Asset Management Plan and Financial Plan

Integrating Asset Management into our Business Investment planning process is now being integrated with other Asset Management business processes: Computerized maintenance management system (CMMS) being developed to provide information to better inform investment planning Consultant deliverables are aligning to the process e.g. Technical memos and reports are framed to consider business case processes Contractor deliverables are aligning to the process e.g. detailed information on new assets to feed into CMMS

Integrating Asset Management into our Business Asset Management System is shaping resource allocation and division structure: Changing job descriptions to reflect business case processes and projects Additional resources (new positions to support the investment planning process) Paradigm shift in staff thinking and practices

Questions? Contact Us: Dan Olsen CH2M, AM Consultant Daniel.Olsen@ch2m.com Billy Haklander LH & EAPWSS, Environmental Services Engineer bhakland@london.ca