Asset Management at BES Jennifer Belknap Williamson PE

Asset Management at BES Jennifer Belknap Williamson, PE Asset Systems Management Division Mgr. City of Portland Environmental Services Portland Utility Board, May 3, 2016 Environmental Services l Asset Management 2016 1

Questions from Public Utility Board • How do Bureaus use Asset Management (AM) principles? • How do Bureaus track and inventory assets? • How do Bureaus prioritize investments in infrastructure? • What are current and future priorities? Environmental Services l Asset Management 2016 2

BES uses Asset Management Principles to efficiently manage life cycle costs of systems to meet level of service goals Plan Evaluate Design Maintain Construct Operate Environmental Services l Asset Management 2016 3

Watershed Engineering Wastewater Plan Pollution Prevention Business Services Plan Design Operate Construct Evaluate Environmental Services l Asset Management 2016 Evaluate Maintain 4

BES uses Asset Management Principles to efficiently manage life cycle costs of systems to meet level of service goals Plan Evaluate Design Maintain Construct Operate Environmental Services l Asset Management 2016 5

Services BES provides to customers • Protect public health, water quality, and the environment • Collect and treat stormwater and sewage • Implement actions that promote healthy ecosystems in our watersheds Environmental Services l Asset Management 2016 6

Stakeholder input into strategic priorities informs service goals and performance measures PUB, Customers Strategic Priorities City Council Level of Service Goals Performance Measures Environmental Services l Asset Management 2016 What actions are needed to meet Level of Service Goals cost effectively? 7

Current Strategic Priorities in BES Protect, Rehabilitate and Maintain our Existing Infrastructure for Long-Term Reliability Invest in New Natural & Built Systems to Protect Public Health & Improve Watershed Health Build and Expand Partnerships to Better Meet our Mission and Vision Environmental Services l Asset Management 2016 Responsibly Manage Ratepayer Funds to Provide Services That Address Community Needs Now and in The Future Strategic Priorities Level of Service Goals Performance Measures Cultivate Leadership and Excellence in our Workforce 8

Performance Measures are tracked within 12 Level of Service Goals - Wastewater and Stormwater are managed to protect public health and safety - Regulatory compliance - Water quality is protected and enhanced - Habitat is protected and enhanced - Services are performed to restore the hydrologic cycle - Services are provided equitably to the whole community - BES is a good community partner and engages the community in decision making - BES procurement practices provide equitable business opportunities Environmental Services l Asset Management 2016 - Resources are managed to provide acceptable, affordable service & long-term cost effectiveness - Service requests responded to promptly and reliably resolved - Resource conservation & reuse are optimized Strategic Priorities Level of Service Goals Performance Measures - BES employs a safe and productive workforce that provides environmental leadership and excellent customer service 9

BES uses Asset Management Principles to efficiently manage life cycle costs of systems to meet level of service goals Plan Evaluate Design Maintain Construct Operate Environmental Services l Asset Management 2016 10

Sewer and Stormwater Assets Diverse assets Widely varied lifespans and management techniques July 2015 Environmental Services l Asset Management 2016 11

Condition of assets Over $2 billion in assets in poor or very poor condition Over $2 billion in assets in unknown condition One-third of the 2, 500 miles of sewer pipes are over 80 years old Environmental Services l Asset Management 2016 12

Asset Management Practices are used to track and inventory assets • Asset Inventories, Work Order Systems • Hansen (Collections) and Synergen (WW) • Track. It (PBOT / Collections) • Detailed Condition Assessments • Collection System, Green Streets • Condition Assessments being updated • Wastewater Treatment and Pumping, Stormwater Environmental Services l Asset Management 2016 13

Planning – data analysis, alternatives evaluation, benefit/cost analysis, and prioritization WATERSHED PLANS Environmental Services l Asset Management 2016 SYSTEM PLANS Combined and sanitary collection system FACILITY PLANS Columbia Blvd and Tryon Creek plants 14

Prioritizing investment – Asset management • Risk = likelihood of failure x consequence of failure Environmental Services l Asset Management 2016 15

BES planning aims to understand minimize risk of failures • Asset not usable • Minor to catastrophic failure • Asset doesn’t meet level of service • Insufficient pipe capacity (basement backup, street flooding) • Stream habitat • Permit requirements Environmental Services l Asset Management 2016 16

Asset condition data of pipes is in Hansen Maintenance Management System from TV Inspection Data 32, 000 Current Inspections Green inspected within last 5 years Orange inspected within last 10 years Environmental Services l Asset Management 2016 17

BES uses Asset Management Principles to efficiently manage life cycle costs of systems to meet level of service goals Plan Evaluate Design Maintain Construct Operate Environmental Services l Asset Management 2016 18

CSO/Sanitary System Plan Prioritization • 45, 000 sanitary & combined pipes • 3, 800 grade 4 & 5 pipes (expected to fail within 0 - 27 years) • $524 million to replace all grade 4 & 5 • $142 million to replace all laterals • 1, 100 are in rehab program • $121 million prioritized worst condition and highest consequence of failure Environmental Services l Asset Management 2016 19

Net Benefit/Cost Ratio for Pipe Rehab is an example of how BES Prioritizes Investments Environmental Services l Asset Management 2016 20

Using data to develop cost effective plans and designs Net Benefit / Cost Ratio (n. BCR) is used to identify pipes to work on (Jelly Beans) and Recommended Actions: - Spot Repairs - Liners - Whole Pipe Dig / Replace - Monitor and Inspect Environmental Services l Asset Management 2016 Grade 4 and 5 Pipes 21

Failure of pipe predicted by condition ratings translates to present worth of the future risk of failure and emergency repair Environmental Services l Asset Management 2016 22

Combined and Sanitary System Plan • Phase 1 & 2: 16 project areas to be completed in 8 years • Estimated capital cost - $121 Million • Currently half way through design and implementation of Phase 1 & 2 • Starting Phase 3 (downtown, large diameter) 23 Environmental Services l Asset Management 2016 23

Green Infrastructure Natural or engineered systems that use soil and plants to provide stormwater management, water quality, public health and safety, open space, and other ecosystem services BUILT Environmental Services l Asset Management 2016 NATURAL 24

Condition Assessment of Green Infrastructure • Stormwater systems, green streets – inspection protocols and data in Hansen • Watershed Health Index • Stream surveys – habitat, vegetation, channel morphology • Water quality data • Upland stressors (untreated stormwater) Environmental Services l Asset Management 2016 25

Stormwater System Plan will provide risk assessment and prioritization of action areas Water Quality Sanitary Overflow Storm water System Flooding Erosion Environmental Services l Asset Management 2016 Habitat Conveyance Hydrology 26

Many Stormwater System Plan actions will be collaborative with PBOT Environmental Services l Asset Management 2016 27

Tools we use to track asset function and prioritize actions Plan Evaluate Design Maintain Construct Wastewater Treatment Plant Operations Operate Environmental Services l Asset Management 2016 28

Monitoring for optimization of system operation 41 Rain Gauges 70 Sewer Monitors 84 Pump Stations Environmental Services l Asset Management 2016 29

i. Fix system provides realtime data on CSO collection system flow Environmental Services l Asset Management 2016 Monitoring of the flow in the tunnels to optimize system operation 30

Rehab Tracking GIS Tool provides integrated data between Maintenance Engineering, Asset Planning, and Design • Inspection videos • Review notes Environmental Services l Asset Management 2016 31

System Cost Estimator GIS tool used for alternatives analysis and cost optimization for planning and design Environmental Services l Asset Management 2016 32

Detailed hydraulic models allow for in-depth alternatives analysis to reduce risk and optimize system components 10 -Year Storm 10% likelihood Risk ($) = Likelihood x Consequence ($) Environmental Services l Asset Management 2016 33

BES Explicit Modeling System Pipes flowing normal Very bad Pipes “surcharging” Environmental Services l Asset Management 2016 34

Alternatives analysis – using models to identify design that reduces traffic impacts of work and expands stormwater benefits Alt. 1 – pipe upsizing on busy streets like MLK Blvd Alt. 2 – flow transfer, stormwater facilities, pipe lining on busy streets Environmental Services l Asset Management 2016 35

Upcoming Priorities – Managing Asset Risk and Resiliency within Financial Strategy • Ongoing rehabilitation of aging pipe • Superfund – Portland Harbor • Increased condition assessment • Resiliency and rehab of Stormwater, • Earthquake Wastewater and Pump Stations • Climate change • Aging system with • Stormwater System Plan new development • Update to Sanitary/ pressures CSO System Plan • Regulatory • Reduce Sanitary Sewer Overflows, • Support Equity and other approach for service laterals City initiatives (e. g. housing) Environmental Services l Asset Management 2016 36

BES CIP 10 -Year Projection ($ Millions) 140 Sewage Trtmt Maint & Reliability Surface Water Systems Dvlpmt 120 100 80 60 40 20 0 FY 2017 FY 2018 FY 2019 FY 2020 Environmental Services l Asset Management 2016 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 37

Prioritizing within the CIP • Human health and safety • Property/community impact • Impact on environment • Regulatory/contractual obligations • Business process (efficiency) • Accommodating growth and economic development Environmental Services l Asset Management 2016 38

BES Asset Management Practices Using data and analysis to prioritize actions for cost-effective delivery of services for our customers today and in the future Environmental Services l Asset Management 2016 39

Asset Management at BES Jennifer Belknap Williamson, PE Asset Systems Management Division Mgr. City of Portland Environmental Services Portland Utility Board, May 3, 2016 Environmental Services l Asset Management 2016 40

Additional information on: - Green Infrastructure and Stormwater Facility Condition Assessment - Stormwater System Plan - Collections System Prioritization - Past Asset Management work in BES Environmental Services l Asset Management 2016 41

Green Infrastructure Natural or engineered systems that use soil and plants to protect, support, or mimic natural systems to provide stormwater management, water quality, public health and safety, open space, and other complementary ecosystem services. BUILT Environmental Services l Asset Management 2016 NATURAL 42

Green Infrastructure | Green Streets ~1, 600 public green street facilities Environmental Services l Asset Management 2016 43

• • • Green Streets: Goal is Level of Service B or A for maintenance Vegetation is mostly healthy Good appearance Small quantities of weeds Limited grass encroachment Facility is relatively stable – not slipping toward Level C Environmental Services l Asset Management 2016 Levels of Service B - Good 44

LOS “B” Inlets Veg Cover & Health Sediment LOS “C” Environmental Services l Asset Management 2016 45

Inspection and Condition Assessment of GI • Standardized condition assessment of Green Streets – Created Observation and Severity Codes – Created document with photos for the various Observation + Severity combinations Environmental Services l Asset Management 2016 46

Green Street Maintenance Program • Integration of Green Street into the Collection System Maintenance Management System (CMMS) • Asset Information • Inspections • Maintenance Work Order Information • Created an Inspection and Condition Assessment Program • Based on Observation and Severity Codes • Field inspections performed on laptops Environmental Services l Asset Management 2016 47

Green Streets, Regional Facilities in O&M and Budget by FY $1, 234, 509 $1, 195, 565 2500 $1, 200, 000 2305 $1, 143, 716 $1, 100, 000 2155 $1, 024, 458 2000 $1, 000 1909 $953, 456 $900, 000 1710 $757, 752 $800, 000 1543 1500 $700, 000 1294 $657, 752 $600, 000 $500, 000 923 1000 Source: Services Bureaul of Environmental Asset Management 2016 GS Incr. 150 $3 8, 94 4 154 2017 -2018 -2019 $51 2015 -2016 -2017 Budget Bdgt Incr. 150 246 2014 -2015 $200, 000 153 , 849 8 $11 9, 25 , 002 $71 Rgnl. Fac. Count 152 GS Count 199 2013 -2014 151 2012 -2013 150 149 2010 -2011 167 148 249 146 2011 -2012 102 146 2009 -2010 140 2008 -2009 $300, 000 $19 5, 70 371 367 144 195 139 2007 -2008 119 128 44 0 75 314 $185, 287 4 681 $280, 077 $185, 287 $400, 000 821 $275, 287 500 $1, 300, 000 Services Wastewater Collection Systems Division February 2015 $100, 000 $0 48

Stormwater System Plan Environmental Services l Asset Management 2016 49

Stormwater System Plan Environmental Services l Asset Management 2016 50

CONSEQUENCE OF FAILURE – How we evaluate the costs associated with failure COSTS - Bypass Pumping - Traffic Control - Difficult Work Areas - Hazardous Materials - Utility Conflicts - Environmental Permitting Environmental Services l Asset Management 2016 51

Incorporating Equity into BES Planning – Valuing Basement Flooding Impacts Higher in Disadvantaged Areas Single Family Residential Zoning + Environmental Services l Asset Management 2016 52

Net Benefit Cost Ratio (n. BCR) – Shows the Balance of Cost and Risk • Evaluate benefit of doing something now (proactive) vs. doing something later (reactive) • Base risk - leave pipe with known defects alone, the consequence of failure is that it requires an emergency repair in the future (more expensive, more disruption to ratepayers) • Alternate risk – proactively fix pipe defects now and reduce consequence of failure n. BCR = Base Risk PW ($) – Alternate Risk PW ($) Environmental Services l Asset Management 2016 53

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