1. Linking AMPs to Short-Term and Long-Term Investment Plans
Billy Haklander
LH & EAPWSS, Environmental Services Engineer
Dan Olsen
CH2M, AM Consultant

2. 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

3. 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)

4. 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.”

5. 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

6. 2016 Asset Management Plan Development
Levels of Service
Asset Management Strategy
Financial Strategy
LOS trends were identified:
Value
Level of Service Measure
Trend ( )
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

7. 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

8. 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

9. 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 ( )
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

10. 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

11. 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

12. 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

13. 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 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

14. 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

15. 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

16. 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

17. 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

18. Questions? Contact Us: Dan Olsen CH2M, AM Consultant
Billy Haklander
LH & EAPWSS, Environmental Services Engineer