Concept to Construction: Asset Management In Project Design Highline Water District

1. Concept to Construction:Asset Management In Project DesignHighline Water District Matthew J. Maring, P.E. AWWA PNWS Conference May 1, 2008

2. Initial Project Design Concept • Transmission Capacity Improvements • 4600’ 16” Diameter Mains • Dead-End Main Looping Improvements • 6500’ 8” Diameter Mains • New Pressure Zone Creation • 7 PRVs and 12 Isolation Valves • $4.7M Total Estimated Capital Cost

3. Asset Management Project Approach • Asset Management Predesign Review • Business Case Evaluation • Hydraulic Modeling Analysis • Alternative Design Approaches • Identify, Optimize, Assess, Compare • Identify Preferred Design Solutions • Detailed Design • Construction

4. Business Case Evaluation Process • Form Expert Team – Highline and BC Staff • Problem Definition • Level of Service Definition • Data Collection, Problem Characterization • Alternative Development Brainstorming • Alternative Performance Evaluations • Hydraulic Modeling Analysis • Alternative Performance, Cost, and Risk Comparison • Preferred Solutions  Detailed Design

5. Business Case Difference • Lifecycle Cost – A dollar is a dollar • Capital, O&M, R&R, Risk Costs • Triple Bottom Line Lifecycle Costing • Financial • Community/Social • Environmental • Preferred Solution = Lowest Lifecycle Cost that Meets Level of Service • Decisions • Justified, Documented, Repeatable • Publically Defensible and Transparent

6. Problem Definition • Problem 1: Transmission Capacity • Low Pressures • Limited Fire Flow • Problem 2: Dead-End Mains • Water Circulation and Turn Over • Low Pressures • Limited Fire Flow • Problem 3: High Pressure Areas • Frequent Main Breaks

7. Level of Service Definition • Peak Hour Demand Pressures > 30-40 psi • Max Day Demand + Fire Flow > 20 psi • Dead-End Mains • Address Pressures and Fire Flows • Correct where Financially Preferable • High Pressures and Main Breaks • Distribution Leakage Standards • Correct where Financially Preferable • Goal: Max Static Pressures < 100 psi

8. Data Collection and Problem Characterization • Hydraulic Model System Performance • Minimum Pressures, Fire Flows • Water Main Breaks • 3 to 4 Times More Frequent in High Pressure Areas • $6K+ Average Cost per Break • Repair Labor, Materials, Equipment • Lost Water, Insurance Claims/Deductibles • Reduce High Pressure Breaks to “Normal” Levels = $18K Annual Savings • Dead-End Main Flushing is “Cheap”

9. Future Model Scenario: Existing System Pressure and Fire Flow Performance

10. High Pressure AreaRaw Main Break Data

11. High Pressure Area Main Break Comparison

12. Main Breaks: High Pressures or Acidic Soils?

13. Alternative Development • Problem 1: Low Pressures and Fire Flows • Pipe and Pump Improvements • Various Sizes and Combinations • Problem 2: Dead-End Mains • Looping • Alternating and Continuous • Problem 3: High Pressure Areas • New Pressure Zone • PRV Quantity and Locations • Isolation Valve Quantity and Locations

14. Alternative Performanceand Hydraulic Modeling

15. Alternative Performanceand Hydraulic Modeling

16. Alternative Performance New Zone Area Pressures, Before and After

17. Lifecycle NPV Cost Comparison • Lifecycle Net Present Value (NPV) Analysis • Capital (Design, Construction, CM) • O&M, R&R, Risk Costs • Amount Invested Today to Fund All Current and Future Asset Costs

18. Risk Cost Considerations • Risk Cost = (Probability) x (Consequence) • Example A:(Annual Number of Main Breaks) x (Average Break Repair Cost) • Example B:(Likelihood of Insurance Claim) x (Insurance Deductible + Staff Costs) • Benefit Cost = (Probability) x (Avoided Consequence) • Example C:(Avoided Number of Main Breaks) x (Average Break Repair Cost)

19. Preferred Solution for Detailed Design • Transmission Capacity Improvements • 1800’ 12” Diameter Mains • Pump Station Upgrades • Dead-End Main Looping Improvements • 2700’ 8” Diameter Mains (Alternating) • New Pressure Zone Creation • 3 PRVs Supply 50 psi Pressure Reduction • Existing Valves Provide Zone Separation

20. Preferred Solution Delivers Optimal Performance and Cost Savings

21. Avoided Risk Costs Demonstrate Project Value • High Pressure Areas Main Breaks • $0.5M Lifecycle NPV Repair Cost • New Pressure Zone Creation • $0.4M Lifecycle NPV Cost • $0.5M Lifecycle NPV Avoided Repairs • $0.1M Savings Over Status Quo

22. Asset Management Approach Success Business Case Evaluation and Hydraulic Modeling Analysis Approach Results: • Cost Savings • $2.6M Capital Costs = 53% • $2.3M Lifecycle Costs = 45% • Higher Overall Level of Service • Takes Advantage of Existing Assets • Pump Station Upgrades vs. New Water Mains • New Pressure Zone Pays for Itself • $0.4M Lifecycle Cost vs. • $0.5M Avoided Lifecycle Main Break Repair Costs

23. Acknowledgements Highline Water District: • Matt Everett, General Manager • Tom Keown, Engineering and Operations Manager • Mike Becker, Operations Supervisor • Dave Stanley, Field Supervisor • Dan Sleeth, Maintenance Lead

24. Questions?