HomeMy WebLinkAbout03. Draft Asset Management Implementation PlanThis document is released
for the purpose of
information exchange
review and planning only
under the authority of Dan
Vizzini, Principal Analyst,
dated January 20, 2015
CENTRAL CONTRA COSTA SANITARY DISTRICT
ASSET MANAGEMENT IMPLEMENTATION PLAN
SUMMARY REPORT
DRAFT
January 2015
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CENTRAL CONTRA COSTA SANITARY DISTRICT
ASSET MANAGEMENT IMPLEMENTATION PLAN
SUMMARY REPORT
TABLE OF CONTENTS
Page
1.0 PURPOSE, POLICY, AND APPROACH TO PLAN DEVELOPMENT .........................1
1.1
Purpose and Overview ........................................................ ..............................1
1.2
Asset Management Policy ................................................... ..............................2
1.2.1 Data and Knowledge ........................................... ...............................
2
1.2.2 Information Systems ........................................... ...............................
2
1.2.3 Contracting ........................................................... ..............................2
1.2.4 Processes and Practices .................................... ...............................
2
1.2.5 People .................................................................. ..............................3
1.2.6 Organization ......................................................... ..............................3
1.3
Approach ............................................................................. ..............................3
2.0 GAP
ANALYSIS AND ASSET MANAGEMENT NEEDS ASSESSMENT ....................5
2.1
Areas of Strength (Satisfactory Performance) ..................... ..............................5
2.2
Areas of Improvement (Deficient Performance) .................. ..............................7
2.3
Recommended Quick Starts ................................................ ..............................8
3.0 RECOMMENDED
PLAN ............................................................... .............................10
3.1
Element Descriptions .......................................................... .............................10
3.1.1 Element 1 — AM Organization, Policies and Key Strategies to
Support Asset Management ............................. ...............................
10
3.1.2 Element 2a — Asset Hierarchy and Data Standards ........................
11
3.1.3 Element 2b — Complete Asset Register for Pump Station and
Treatment Plant Assets ..................................... ...............................
12
3.1.4 Element 2c — Complete Utility Locating and Drafting to
Consolidate As- Builts ........................................ ...............................
12
3.1.5 Element 2d — Complete Asset Register for Treatment Plant
Piping................................................................ ...............................
12
3.1.6 Element 3 — Reliability Centered Maintenance Pilot Program .........
12
3.1.7 Element 4 — Business Process Mapping ........... ...............................
12
3.1.8 Element 5 — Knowledge Management Strategy ...............................
14
3.1.9 Element 6a — Failure Modes and Condition Assessment
Protocol............................................................. ...............................
14
3.1.10 Element 6b — Condition Assessment of Pump Station /
Treatment Plant Assets ..................................... ...............................
14
3.1.11 Element 7 — Risk Assessment .......................... ...............................
14
3.1.12 Element 8 — Failure -Based Maintenance Strategies ........................
15
3.1.13 Element 9 — Asset Valuations ........................... ...............................
15
3.1.14 Element 10 — Program and Project Management Standards ..........
15
3.1.15 Element 11 — Asset Commissioning and Handover .........................
15
3.1.16 Element 12 — Capital Improvement Program Business Case
Evaluations....................................................... ...............................
15
3.1.17 Element 13 — Update the AMP ......................... ...............................
16
3.2
Schedule ............................................................................. .............................16
3.3
Resources .......................................................................... .............................16
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APPENDIX A — ASSET NEEDS ASSESSMENT MEMORANDUM
APPENDIX B — DETAILED PLAN ELEMENT DESCRIPTIONS
LIST OF TABLES
Table 1 Recommended AMIP Plan Elements .............................. ............................... 10
Table 2 Estimated Labor Costs by Plan Element and Calendar Quarter .................... 18
Table 3 Estimated Labor Hours and Costs by Plan Element and Fiscal Year............ 19
LIST OF FIGURES
Figure 1
Asset Management Implementation Plan Development Process .................... 4
Figure 2
USEPA Asset Management Framework ........................... ...............................
6
Figure 3
Overall Primary Category Ratings ..................................... ............................... 8
Figure 4
Business Process Map for Asset Handover .................... ...............................
13
Figure 5
AMIP Five Year Schedule (11 x 17) ................................ ...............................
17
Figure 6
Estimated Level of Effort by Quarter ............................... ...............................
20
Figure 7
Estimated Labor Breakdown for Overall AMIP ................ ...............................
21
January 2015 - DRAFT
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Central Contra Costa Sanitary District
SUMMARY REPORT
1.0 PURPOSE, POLICY, AND APPROACH TO PLAN
DEVELOPMENT
1.1 Purpose and Overview
Central Contra Costa Sanitary District ( CCCSD) has invested significant resources in
physical assets, which range from above - ground equipment and structures to below - ground
gravity sewers and force mains. In the municipal wastewater sector, "asset management"
refers to the body of business principles aimed at reducing life cycle costs of asset
ownership while managing for an acceptable level of risk. CCCSD is embarking on a formal
asset management program (AMP) to implement best management practices. The ultimate
goals of this program are to minimize costs, maximize asset value, and manage risk to
serve customers at CCCSD's committed levels of service.
A strategic AMP will help CCCSD to accomplish these goals in the following ways:
Improve decision - making. Asset management principles will support key decisions,
such as project timing, project prioritization, and rehabilitation versus replacement
approaches. This is enabled via risk management, cost tracking, better capture of
institutional knowledge, and more. These steps will help make decisions about project
needs, budget, and timing clearer, more transparent.
Make business more efficient. Asset management improves the efficiency of daily
business to accomplish its overarching goals and service levels over the long term.
Mapping, design, and communication of business processes is needed to understand
how the activities, responsibilities, and sequence of different workgroups leverage
each other to accomplish the mission at -hand efficiently and effectively.
Improve information management. Asset management will enhance understanding
what data is needed for which assets, where the data is sourced, when the data must
be obtained, how it is stored, how it is accessed, and how it is updated.
Enhance project deployment. Efforts that CCCSD makes to improve business
functions will extend to contracted services to realize greater efficiencies in project
delivery, better quality control and accountability in related project budgets and
schedules.
Continue and enhance credibility with stakeholders. All of the ways to leverage a
strategic approach to asset management described above support the retention and
advancement of credibility with the CCCSD's various stakeholders, including the
Board of Directors and customers.
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The report contains the recommendations, schedule, and estimated level of effort for
implementing the five -year Asset Management Implementation Plan (AMIP). The AMIP will
serve as the guiding document for implementing asset management at CCCSD.
1.2 Asset Management Policy
CCCSD has developed and is currently adopting the following Asset Management Policy to
guide future goal- setting, planning, decision - making and implementation of asset
management program elements and projects.
Asset management is a broad strategic framework that encompasses many disciplines and
involves the entire District. In support of its Mission, Vision, and Strategic Plan, CCCSD
sets forth the following directives related to asset management.
1.2.1 Data and Knowledge
CCCSD shall maintain a comprehensive asset register to facilitate management over the
asset's lifecycle. CCCSD shall continually identify, collect, and provide overall quality
assurance/ quality control (QA/QC) screening of relevant data, and it shall apply sufficient
analyses to turn that data into knowledge that supports sound, evidence -based decisions
regarding assets. CCCSD shall maintain succession plans to sustain knowledge transfer.
1.2.2 Information Systems
CCCSD shall make capital and on -going investments sufficient to own, operate, and
maintain a reliable and state -of- the -art security - protected information management system
that supports timely, evidence -based decision making at all levels of the organization.
CCCSD's information systems shall be deployed to promote access and use by CCCSD
staff in fulfillment of their duties.
1.2.3 Contracting
CCCSD shall invest in contract personnel sufficient to support their internal asset
management practices. In addition, all professional and equipment/ construction contracts
related to facility assets shall include provisions for on -going financial, and operations and
maintenance tracking in the transfer of new assets.
1.2.4 Processes and Practices
CCCSD shall develop processes, procedures and practices for staff in support of this Policy
using industry accepted guidelines and practices to provide consistency across the
organization. CCCSD shall institute these processes and practices to prioritize expenditures
with the purpose of optimizing the quality, reliability, and affordability of services provided to
its customers.
CCCSD shall plan and provide for sustainable long term funding to appropriately utilize,
maintain, replace, renew, or decommission assets to deliver high quality and reliable
January 2015 — DRAFT 2
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service in a sustainable manner for customers with an acceptable level of risk. The analysis
of risk and priorities shall consider the lifecycle social, environmental and financial benefits
and costs of assets and services as well as the broader impact of individual asset
decisions.
1.2.5 People
CCCSD shall invest in staff and implement adequate education, training, and mentoring
programs to ensure that asset management practices are widely communicated,
understood, and implemented throughout the organization. A steering committee comprised
of representatives from various workgroups in the organization shall convene quarterly, or
as needed, to lead the asset management program.
1.2.6 Organization
CCCSD shall establish organizational responsibility to lead and manage a comprehensive
asset management program across the collection system, treatment plant, recycled water,
and general improvement programs. The program shall follow specific guidance set forth in
the Asset Management Implementation Plan regarding objectives, work plan, coordination
mechanisms, and resource requirements.
The Board shall be responsible for establishing levels of service, adopting and updating
policies and budgets, and exercising stewardship of assets. Staff shall be responsible for
assisting the Board with the above and implementing the policy, developing procedures and
practices, and operating, maintaining and replacing the assets.
1.3 Approach
CCCSD has followed an organized, evidence - based, and broadly- engaging process to
develop its AMIP. Figure 1 illustrates the development process. The process began with an
assessment of CCCSD's asset management capabilities. This assessment identified what
CCCSD was already doing well in making its asset management approach more strategic,
and what gaps existed that would need to be refined or improved.
Next, CCCSD also identified key strategic policies related to asset management that would
guide the formation of its asset management enhancement approach. The resulting AM
policy is presented in Section 1.2 of this document. A gap analysis was conducted that
defined the gap between current practices and target practices set forth in the policy. The
gap analysis resulted in recommendations for AMIP elements. The level of effort needed to
accomplish these elements was estimated and the appropriate sequence was developed.
The findings and recommendations were compiled to develop a five -year roadmap for
program implementation.
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ASSET MANAGEMENT IMPLEMENTATION PLAN
DEVELOPMENT PROCESS
FIGURE 1
CENTRAL CONTRA COSTA SANITARY DISTRICT
ASSET MANAGEMENT IMPLEMENTATION PLAN
SUMMARYREPORT
2.0 GAP ANALYSIS AND ASSET MANAGEMENT NEEDS
ASSESSMENT
CCCSD's asset management gap analysis and needs assessment were conducted using
USEPA's asset management framework (Figure 2), and measured against Best
Appropriate Practices (BAP). The gap analysis identified a set of improvement opportunities
that were evaluated, weighted and prioritized based on seven major asset management
practices; known as the Value Chain when integrated into a comprehensive and
coordinated asset management program.
The benchmarking process involved participants from multiple divisions within the
organization. Workshops were conducted to collect specific information about the current
status, strengths and weaknesses of each of the seven asset management practices. The
process produced the following lists of strengths, areas of improvement, and "quick start"
projects that may be performed in 6 to 12 months to produce early successes.
2.1 Areas of Strength (Satisfactory Performance)
• Demand Analysis — CCCSD has a very good understanding of the future demands
for services through: the treatment plant data; air and water permits; hydraulic
modeling; and by projecting the number of connections.
• Knowledge of Assets (Collection Assets) — The asset register for linear assets has
good data and is identified in the GIS with established data standards.
• Asset Management Information Systems — An IT Master Plan is currently being
developed, therefore an additional information systems assessment was not included
as part of this process. Improvements are currently being made to the GIS and GDI
applications used for the collection system assets, and soon the plant assets.
• Asset Creation and Acquisition — An Engineering Project Procedures Manual is
used by the Engineering Department for projects from the preliminary design stage,
the design process, the bid process, contract initiation process, and the contraction
administration / construction inspection stages. This was last updated in May 2014.
• Customer Information /Consultation — The Communications Services Group does a
notable job in communicating with customers and CCCSD staff through newsletters
and surveys.
• Training Programs — Cross - training is provided where applicable. Staff is
encouraged to obtain licenses and certifications for self - development and career
advancements.
January 2015 — DRAFT 5
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MManagement Strategies for the Assets
Best Lung -Tenn funding strategy
USEPA ASSET MANAGEMENT FRAMEWORK
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8/10 pt Arial Regular Upper ItalicsSUMMARY REPORT
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Attitude & Culture — The attitude and culture of CCCSD staff was supportive of the
asset management program.
Asset Management Strategic Goal— By making the asset management program a
part of the Strategic Plan, CCCSD displays the dedication and commitment in
advancing its asset management practices.
2.2 Areas of Improvement (Deficient Performance)
• Business Process Mapping — The business processes within CCCSD are limited or
outdated with a substantial reliance on self- managed work management processes.
• Business Risk Exposure (BRE) — A formal evaluation of its business risk as part of
the asset management decision - making process is not being utilized.
• Business Case Evaluations (BCE) — A formal CIP evaluation process is in place but
lacks the rigor in the decision making process with little consideration to the risk and
priority of the project to CCCSD.
• Asset Hierarchy — A high -level asset hierarchy is started for the entire District;
however it is only built for the plant assets in Mainsaver using parent /child IDs.
• Knowledge of Assets (Plant) — Data standards for the plant assets identified in the
CMMS has not been established.
• Valuation — A systematic process for valuing individual CCCSD assets does not
exist. This is needed to project long -term funding requirements for the replacement of
assets.
• Operation and Maintenance Data — Currently, maintenance hours are recorded on
maintenance work orders for collection system assets only. The collection of time,
parts, and equipment cost data and work order history is imperative for all assets.
• Failure Modes and Condition Assessment Protocol (Plant) — A pilot Reliability
Centered Maintenance (RCM) program will be started at the plant. As part of this pilot
program, condition protocols need to be established to assist staff with a process for
the ongoing determination of the physical condition of its infrastructure assets.
• Asset Management Information Systems — The Collection System Operations
Division has a current need for the replacement of its CMMS (Accela), which is no
longer supported. The new CMMS should also be evaluated to consolidate all assets
into one system.
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Contract Administration — Project Managers in the Engineering Department have
access to Microsoft Project for managing projects, but it is not consistently or
uniformly used by the engineering staff.
Knowledge Management — With the large turnover of staff over the last several
years, a program is needed for retaining the asset and organizational knowledge
before additional retirements and departures occur.
Life Cycle Asset Management Roles and Responsibilities — A formal asset
management steering committee is needed to help promote and implement the
program. There is a lack of understanding of staff as to what their role is in the AM
program.
Figure 3 shows the ratings in the Primary Categories.
2.3 Recommended Quick Starts
The following recommendations are for areas of focus to quickly start the AM program:
Life Cycle Asset Management Roles and Responsibilities — CCCSD will benefit
from an asset management steering committee to help promote and implement the
program. The forming of an asset management leadership role helps to build a solid
foundation to construct the asset management program. There is a lack of
understanding how the AM portion of staff roles links with others throughout the
organization.
Information Systems — CCCSD should move forward with the procurement of a
replacement CMMS for the Collection System and potentially consolidate all
CCCSD's assets into this one system.
Asset Hierarchy and Data Standards — CCCSD should continue with development
of its asset hierarchy and data standards for all assets. All other project improvements
are dependent on a good framework.
Project/Program Management— There are currently four significant projects
underway within CCCSD (Cost of Service Study, IT Master Plan, Asset Management
Implementation Plan, and Succession Planning). A Project Manager is assigned to
each of the projects, however there is not a Program Manager assigned to coordinate
these initiatives. To provide this coordination, development of an internal Program
Manager role is recommended.
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Excellence
Proficient
Systematic Approach
Awareness
Innocence
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ioo
90
80
10
60
1)0
40
30
20
U
a 01:411
u BAP
0 1 -5 Yr Target
■ Current
OVERALL PRIMARY CATEGORY RATINGS
FIGURE 3
CENTRAL CONTRA COSTA SANITARY DISTRICT
ASSET MANAGEMENT IMPLEMENTATION PLAN
SUMMARY REPORT
3.0 RECOMMENDED PLAN
Following completion of the Asset Management Needs Assessment, Carollo worked with
CCCSD staff to identify elements for the five year AMIP that would close the gap between
current practice and CCCSD's AM goals. These elements link back to the strengths,
weaknesses, and quick start improvements that were identified CCCSD's gap analysis and
needs assessment. The elements are intended to close prioritized gaps in CCCSD's asset
management practices, strengthen overall performance, and improve investment decision -
making during the next five years. A summary of the prioritized asset management
improvement elements is presented in Table 1, and each element is described in the
following section. Table 1 also lists related projects that are currently underway.
3.1 Element Descriptions
The following sections present the objectives for each of the AMP elements. Detailed
descriptions of each element are provided in Appendix B.
3.1.1 Element 1 — AM Organization, Policies and Key Strategies to Support Asset
Management
Develop the guidelines for CCCSD to implement the adopted vision, objectives and
strategies. The guidelines should appropriately reflect the need for purposeful integration of
all essential elements of a fully functioning asset management program, including service
levels; performance monitoring; risk management; life cycle cost and performance
assessment; triple bottom line (TBL); asset data and data systems; roles, responsibilities,
and accountabilities; decision making processes; financial modeling, and benchmarking.
Table 1 Recommended AMIP Plan Elements
Asset Management Implementation Plan
Central Contra Costa Sanitary District
Planned
Duration
ID
Element Name
Start
(months)
Related Projects Already Underway
A
Cost of Service and Staffing Needs Assessment
Active
12
B
CMMS Replacement, District Project 8242
Active
18 -24
C1
IT Master Plan, District Project 8195
Active
12
C2
Financial ERP Replacement, District Project 8240
TBD
18 -24
C3
Electronic Content Management Evaluation, District Project 8240
Active
6 -12
D
Comprehensive Treatment Plant Master Plan. District Project 7315
2015 -Q3
12
Asset Management Plan Elements
1
AM Organization, Policies and Key Strategies
2015 -Q1
9(')
2a
Asset Hierarchy and Data Standards
2015 -Q1
6
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Table 1 Recommended AMIP Plan Elements
Asset Management Implementation Plan
Central Contra Costa Sanitary District
Planned
Duration
ID
Element Name
Start
(months)
2b
Complete Asset Register - Pump Station & Treatment Plant Assets
2015 -Q1
3
Complete Utility Locating and Drafting to Consolidate Treatment
2c
Plant Piping As- Builts
2015 -Q3
18
2d
Complete Asset Register for Treatment Plant Piping
2016 -Q3
6
3a
Reliability Centered Maintenance Pilot Program
2016 -Q3
24
3b
Expand Reliability Centered Maintenance Program (pending 3a)
2018 -Q3
24
4
Business Process Mapping
2016 -Q1
9
5
Knowledge Management Strategy
2016 -Q2
6
6a
Failure Modes and Condition Assessment Protocol
2015 -Q4
6
6b
Condition Assessment of Pump Station / Treatment Plant Assets
2015 -Q4
6
6c
Condition Assessment of Critical Treatment Plant Piping
2017 -Q1
6
6d
Consolidate CCTV Databases
2016 -Q1
3
7a
Develop Consequence of Failure Criteria and Apply to Assets
2016 -Q1
4
7b
Risk Assessment
2016 -Q4
6
8
Failure -Based Maintenance Strategies
2017 -Q1
6
9
Asset Valuations
2017 -Q3
6
10
Program and Project Management Standards
2018 -Q1
4
11
Asset Commissioning and Handover
2018 -Q3
4
12
Strategic Forecasting
2017 -Q4
6
13
Capital Improvement Program Business Case Evaluations
2018 -Q4
6
14
Update Asset Management Plan
2019 -Q2
9
Note:
(1) Element 1 is estimated to last nine months for the initial effort, followed by quarterly
meetings and some activity by the asset management steering committee for the duration of
the AMIP.
3.1.2 Element 2a — Asset Hierarchy and Data Standards
Provide a framework for CCCSD to enhance the asset hierarchy, define the Maintenance
Managed Item (MMI), and identify the data attributes required to support the asset
management decision - making process. Specifically, with implementation of this project,
CCCSD will be able to: develop an asset hierarchy, establish MMI, understand the data
framework and data gaps, and prioritize data collection strategy.
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3.1.3 Element 2b — Complete Asset Register for Pump Station and Treatment Plant
Assets
While much of this information has been collected for this element, effort will be made to
collect standard data for all assets and to populate the Mainsaver database with consistent
use of data fields. Key data to be collected for each asset are: parent facility, process, or
component, asset tag, equipment ID, nameplate data, basic design criteria (size,
horsepower, if not covered with nameplate data), location, and installation year.
3.1.4 Element 2c — Complete Utility Locating and Drafting to Consolidate
Treatment Plant Piping As- Builts
In accordance with the Asset Hierarchy and Data Standards developed in Element 2a,
complete the utility locating and surveying /drafting to consolidate treatment plant piping as-
builts. Key data to be collected for each treatment plant piping reach are: origin and
terminus, contents, diameter, material, and installation year. This information will be
prepared for import into the new ESRI geodatabase.
3.1.5 Element 2d — Complete Asset Register for Treatment Plant Piping
In accordance with the Asset Hierarchy and Data Standards developed in Element 2a,
complete the asset register for treatment plant piping. Import information from Element 2c
into the new ESRI geodatabase.
3.1.6 Element 3a — Reliability Centered Maintenance Pilot Program
Provide a framework for CCCSD to improve maintenance efficiency and results. RCM
supports business goals of reducing risk and overall costs of ownership. In conducting a
pilot study of RCM focused on one asset type, CCCSD aims to test the feasibility and
results of this approach before implementing RCM for all treatment plant and pump station
assets.
3.1.7 Element 3b - Expand Reliability Centered Maintenance Program
Upon the successful completion and evaluation of the RCM Pilot Program (Element 3a),
expand the program to all treatment plant and pump station assets.
3.1.8 Element 4 — Business Process Mapping
Provide a framework for CCCSD to continue with the development and improvement of
business processes for the overall efficiency and safe operation of the utility system. In
developing the business processes, the goal is to accomplish certain financial and
management objectives and to improve the overall efficiency and safe operation of the
utility system. An example business process map was prepared during the AMIP
development project. The work flow process selected was that for creating and disposing
assets, or "Asset Handover ". The business process map was developed in a workshop
setting with key participants from Engineering and O &M staff and is presented in Figure 4
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Design • • Handover
ACCOUNTING ACCOUNTING F i _ transmits close i calculates
out form depreciation
l
ADMIN files
notice of
completion
ENG
IENG bmits positi on releases ENG
to accept the retention completes
t work (GC -41) after and
required returns
time form
ENG manages: ENG distributes asset (GC -41)
• Asset installation reference manuals
ENG manages design phase, ENG receives, reviews, and
routes design submittals, and • Acceptance testing (Section 01620)
9 accepts record drawings and
incorporates comments
Training to operations and
p •Routine maintenance documents from contractor maintenance i ENG uploads
schedules departments electronic asset
reference manual
to Laserfiche
ENG transmits record ENG reviews
drawings to ESG ESG version of
(Section 01640) 1 drawings and
resubmits
r•
ESG reviews, EtheG
LN
ESG reviews finalizes, stores,
drawings and distributes
record drawings
MAINTENANCE reviews design submittals: MAINTENANCE reviews MAINTENANCE
• Assign asset numbers to new equipment contractor submittals: Lnber INTENANCE MAINTENANCE
• Maintenance /access • O &M manual for MAINTENANCE enters details, project reviews final Assets' turnover
s final asset
• Materials, spares spares reviews record number, and baseline manual and complete to MAINTENANCE
p draw s s al record performance data into and OPERATIONS
• Reliability •Routine maintenance g drawings CMMS updates CMMS
• Electrical and instrumentation schedules
OPERATIONS reviews design submittals:
• Controls concepts
_ • Field walk OPERATIONS reviews OPERATIONS
• Interface with ex facilities and contractor submittals: reviews final
equipment, shutdowns • Integration with manual and
• Layouts existing system updates operator
• Operability • Shutdowns information
• Construction constraints and sequence
BUSINESS PROCESS MAP FOR ASSET HANDOVER
FIGURE 4
CENTRAL CONTRA COSTA SANITARY DISTRICT
ASSET MANAGEMENT IMPLEMENTATION PLAN
SUMMARY REPORT
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3.1.9 Element 5 — Knowledge Management Strategy
Develop a corporate knowledge management strategy, and capture CCCSD staff's
corporate knowledge. This strategy will focus on knowledge related to the assets, including
history, current performance, and future requirements.
3.1.10 Element 6a— Failure Modes and Condition Assessment Protocol
Provide CCCSD with a framework for identifying the imminent failure mode. Develop a
protocol for condition assessment. Develop the failure mode based management strategies.
Optimize the condition assessment process.
3.1.11 Element 6b — Condition Assessment of Pump Station Assets
In accordance with the failure mode analysis and condition assessment protocol developed
in Element 6a, conduct a condition assessment for pump station assets. This assessment
will include visual as well as testing data suitable to the varied asset types at the pump
stations. The data gathered will be geared toward estimating the overall condition and
remaining useful life of each asset. This element will need to be repeated every three to five
years. A condition assessment of treatment plant assets will be included in the
Comprehensive Treatment Plant Master Plan, District Project 7315.
3.1.12 Element 6c — Condition Assessment of Critical Treatment Plant Piping
In accordance with the failure mode analysis and condition assessment protocol developed
in Element 6a, conduct a condition assessment for critical treatment plant piping. This
assessment will include visual as well as suitable testing data. The data gathered will be
geared toward estimating the overall condition and remaining useful life of each asset. This
element will need to be repeated every five to ten years.
3.1.13 Element 6d — Consolidate CCTV Databases
Consolidate existing CCTV databases into a single data resource to support regulatory,
compliance, system operations and maintenance, customer service response, risk
management, asset management and capital improvement planning.
3.1.14 Element 7a — Develop Consequence of Failure Criteria and Apply to Assets
Develop a comprehensive and integrated set of criteria for assessing and valuing the
consequences of failure for each asset. Once developed and tested for applicability,
appropriateness and accuracy, apply the criteria to each asset.
3.1.15 Element 7b — Risk Assessment
Determine the relative risks of the plant, structures, and collection system pipes based on
an assessment of existing conditions, and estimations of the probabilities and
January 2015 — DRAFT 14
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consequences of failure. Develop appropriate and cost effective risk -based management
strategies.
3.1.16 Element 8 — Failure -Based Maintenance Strategies
Develop and implement continuous improvement processes that involve periodic re-
examination of failure histories and of the effectiveness of maintenance strategies. For
example, the role of maintenance planners could be expanded to include the periodic
evaluation and updating of maintenance practices and strategies.
3.1.17 Element 9 — Asset Valuations
Provide CCCSD with a higher -level system valuation. Replacement cost of all managed
maintenance items (MMIs) in the asset register will be determined based on the information
made available. Replacement costs will be determined based on current year dollars,
current and historical cost data provided by CCCSD, and the consultant's asset
replacement cost database. General cost tables or curves will be developed for each major
asset class and will be used to represent the replacement cost for all assets belonging to
the relevant asset class.
3.1.18 Element 10 —Program and Proiect Management Standards
Improve CCCSD's ability to manage projects effectively and efficiently. The standards
should be prepared to provide staff with the appropriate tools and techniques to manage
projects while also developing consistency and rigor in approach across the organization.
3.1.19 Element 11 —Asset Commissioning and Handover
Ensure assets are handed over in a "fit for purpose" state reducing costly rework and a
smooth transition from project to operations and maintenance. Ensure commissioning and
handover are in accordance with CCCSD requirements and with sound engineering and
construction practice. Identify stakeholders in commissioning and handover and increase
awareness of communication requirements.
3.1.20 Element 12 — Strategic Forecasting
Develop long -range strategic forecasts of system demand, system capacity, and
investments in system operations and capital to meet acceptable levels of service.
3.1.21 Element 13 — Capital Improvement Program Business Case Evaluations
Develop a suitable CIP validation policy, framework and methodology for CCCSD that is
documented in user manual format. The methodology would include assessment of
confidence level ratings, BRE, life cycle cost analysis, options evaluation, business case
evaluation, and project ranking and prioritization.
January 2015 — DRAFT 15
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3.1.22 Element 14 — Update the Asset Management Program's Plan
Update the AM Program's plan using CCCSD's best available information. Cover all assets,
and specify which assets to assess in more detail in future AMPs. This effort will need to be
repeated every three to five years. Some plan elements may become discreet projects for
tracking purposes or incorporated into existing planned projects, such as Master Plans.
3.2 Schedule
The recommendations described above have been prioritized and distributed across a five -
year timeframe to allow adequate time for completion and for adoption of the significant
cultural changes inherent in the AMIP. Figure 5 shows the proposed AMIP five year
schedule and includes the timing of related projects already underway.
3.3 Resources
Tables 2 and 3 show the estimated level of effort of each plan element by calendar quarter
and fiscal year, respectively. Figure 6 illustrates total labor costs by calendar quarter.
Figure 7 shows total hours of effort distributed among consultants and CCCSD
departments. The total AMIP is estimated to require two full time equivalent (FTE) staff
positions, based on 120 hours of effort per month per FTE. The overall Asset Management
development program is estimated at $5,000,000, including $375,000 in estimated CCCSD
expenditures from July to December 2014. The estimated consulting costs for the total five -
year AMIP is $1,397,760 based on a range of $180 to $220 per hour for this time.
January 2015 — DRAFT 16
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Left
Margin
0.75"
c
No.
Plan Element
Planned
Start
Duration
(mos)
2015
Q1 Q2 03 Q4
2016
Q1 Q2 Q3 04
2017
Q1 Q2 Q3 04
2018
Q1 Q2 Q3 Q4
2019
Q1 Q2 Q3 Q4
Related
Projects - Underway and /or Prerequisite to the Asset Management Implementation Plan
A
Cost of Service & Staffing Needs Assessment
Active
12
B
CMMS Replacement
Active
21
C1
IT Master Plan
Active
12
C2
ERP Replacement
2016 -Ql
30
C3
Electronic Content Management
Active
12
D
Comprehensive TP Master Plan
2015 -Q3
12
Asset
Management Plan Elements
1
AIM Org, Policies and Key Strategies
2015 -Ql
9
2a
Asset Hierarchy and Data Standards
2015 -Ql
9
2b
Complete Asset Register for Pump Station
i Tffia LV nt Plant Assets and
Complete Utility Locating, Drafting to
Consolidate Plant Piping As- Builts
2015 -Ql
2015 -Q3
9
18
RL
2c
2d
Complete Asset Register for Plant Piping
2011
6
3a
Reliability Centered Maintenance Pilot
2015 -Q3
24
3b
Expand RCM Program (pending 3a)
201743
24
4
Business Process Mapping
2016 -Q1
9
5
Knowledge Management Strategy
201642
6
6a
Failure Modes & Condition Asmt Protocol
2015 44
6
6b
Condition Asmt of Pump Station Assets
2015 -Ql
6
6c
Condition Asmt of Critical Plant Piping
2017 -01
12
6d
Consolidate CCTV Databases
2016 -Ql
6
7a
Develop Consequence of Failure Criteria
and Apply to Assets
2016 -Q1
4
7b
Risk Assessment
21 16-Q4
6
8
Failure -Based Maintenance Strategies
2017 -Q1
6
9
Asset Valuations
21 17-Q3
6
10
Program /Project Management Stds
2018 -Ql
6
11
Asset Commissioning and Handover
201843
6
12
Strategic Forecasting
201744
6
13
Capital Improvement Program Business
Case Evaluations
2018 -Q4
6
14
Update Asset Management Plan
2019 42
9
Number of Active Projects by Quarter
8
7
8
5
9
9
7
5
5
4
4
5
4
3
2
3
2
2
1
1
Carve ®®®
V: \CI ient80 \CCCSD \9564 \cccsd 1114 \cccsd 1114f5 -9564. ai
ASSET MANAGEMENT IMPLEMENTATION PLAN
FIVE -YEAR SCHEDULE
14116 pt Anal Bold Upper Case
FIGURE 5
10/12 pt Anal Regular Upper Case
CENTRAL CONTRA COSTA SANITARY DISTRICT
8110 ptAtWAWu~ZWNT IMPI FMFNTATtON PLAN
8110 pt Anal Regular UppeNAWARY REPORT
E c Title Block
a c Bottom
a m o 0.125"
m�
Right
Margin
0.5"
v
0
D
v
a
0
x
w
C
v
N
O
M
D
;Cl
D
Table 2 Estimated Labor Costs by Plan Element and Calendar Quarter
Asset Management Implementation Plan
Central Contra Costa Sanita District
Total
2015
2016
2017
2018
2019
Planned
Duration
Hours
Total
No.
Plan Element
Start
mos )
(est)
Cost est
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
1
AM Org, Policies and Key Strategies
2015 -Q1
9
1,200
$212,700
$73,500
$73,500
$65,700
2a
Asset Hierarchy and Data Standards
2015 -Q1
9
840
$148,800
$43,750
$61,250
$43,800
2b
Complete Asset Register for Pump Station
and Treatment Plant Assets
2015 -Q1
9
424
$69,112
$8,150
$8,150
$52,812
2c
Complete Utility Locating, Drafting to
Consolidate Plant Piping As- Builts
2015 -Q3
18
2,240
$408,800
$61,320
$61,320
$61,320
$102,200
$61,320
$61,320
2d
Complete Asset Register for Plant Piping
2016 -Q3
6
808
$147,460
$66,430
$81,030
3a
Reliability Centered Maintenance Pilot
2015 -Q3
24
4,104
$748,980
$74,825
$74,825
$112,420
$112,420
$112,420
$112,420
$74,825
$74,825
3b
Expand RCM Program (pending 3a)
2017 -Q3
24
2,200
$401,504
$50,188
$50,188
$50,188
$50,188
$50,188
$50,188
$50,188
$50,188
4
Business Process Mapping
2016 -Q1
9
1,208
$220,461
$77,198
$77,198
$66,065
5
Knowledge Management Strategy
2016 -Q2
6
888
$162,061
$72,818
$89,243
6a
Failure Modes & Condition Assessment
Protocol
2015 -Q4
6
800
$146,000
$80,300
$65,700
6b
Condition Assessment of Pump Station
Assets
2015 -Q1
6
320
$52,160
$26,080
$26,080
6c
Condition Assessment of Critical Treatment
Plant Piping
2017 -Q1
12
1,280
$233,600
$58,400
$58,400
$58,400
$58,400
6d
Consolidate CCTV Databases
2016 -Q1
6
320
$58,400
$29,200
$29,200
7a
Develop Consequence of Failure Criteria
and Apply to Assets
2016 -Q1
4
640
$116,800
$58,400
$58,400
7b
Risk Assessment
2016 -Q4
6
1,016
$185,420
$83,585
$101,835
8
Failure -Based Maintenance Strategies
2017 -Q1
6
1,160
$211,700
$95,265
$116,435
9
Asset Valuations
2017 -Q3
6
1,096
$200,020
$90,155
$109,865
10
Program /Project Management Stds
2018 -Q1
6
992
$181,041
$81,578
$99,463
11
Asset Commissioning and Handover
2018 -Q3
6
896
$163,521
$73,548
$89,973
12
Strategic Forecasting
2017 -Q4
6
640
$116,800
$58,400
$58,400
13
Capital Improvement Program Business
Case Evaluations
2018 -Q4
6
880
$160,600
$72,270
$88,330
14
Update Asset Management Plan
2019 -Q2
9
1,528
$278,861
$83,585
$97,638
$97,638
Total Labor Hours
25,480
$4,624,801
$151,480
$168,980
$298,457
$216,445
$404,238
$452,236
$395,478
$338,355
$330,325
$249,660
$198,743
$276,853
$190,166
$149,651
$123,736
$212,431
$138,518
$133,773
$97,638
$97,638
7!
M3
a
0
x
v
c
v
N
O
D
Table 3 Estimated Labor Hours and Costs by Plan Element and Fiscal Year
Asset Management Implementation Plan
Central Contra Costa Sanita District
Total
FY 2014/15
FY 2015/16
FY 2016/17
FY 2017/18
FY 2018/19
FY 2019/20
Hours
Total Cost
No.
Plan Element
(est)
(est)
Est Hours
Est Cost
Est Hours
Est Cost
Est Hours
Est Cost
Est Hours
Est Cost
Est Hours
Est Cost
Est Hours
Est Cost
1
AM Org, Policies and Key
Strategies
1,200
$212,700
840
$147,000
360
$65,700
2a
Asset Hierarchy and Data
Standards
840
$148,800
600
$105,000
240
$43,800
Complete Asset Register for
2b
Pump Station and Treatment
Plant Assets
424
$69,112
100
$16,300
324
$52,812
Complete Utility Locating, Drafting
2c
to Consolidate Plant Piping As-
Builts
2,240
$408,800
1,568
$286,160
672
$122,640
2d
Complete Asset Register for Plant
Piping
808
$147,460
808
$147,460
3a
Reliability Centered Maintenance
Pilot
4,104
$748,980
2,052
$374,490
2,052
$374,490
3b
Expand RCM Program (pending
3a)
2,200
$401,504
1,100
$200,752
1,100
$200,752
4
Business Process Mapping
1,208
$220,461
846
$154,396
362
$66,065
5
Knowledge Management Strategy
888
$162,061
399
$72,818
489
$89,243
6a
Failure Modes & Condition
Assessment Protocol
800
$146,000
800
$146,000
6b
Condition Assessment of Pump
Station Assets
320
$52,160
320
$52,160
0
$0
6c
Condition Assessment of Critical
Treatment Plant Piping
1,280
$233,600
640
$116,800
640
$116,800
6d
Consolidate CCTV Databases
320
58,400
320
$58,400
7a
Develop Consequence of Failure
Criteria and Apply to Assets
640
$116,800
640
$116,800
7b
Risk Assessment
1,016
$185,420
1,016
$185,420
8
Failure -Based Maintenance
Strategies
1,160
$211,700
1,160
$211,700
9
Asset Valuations
1,096
$200,020
1,096
$200,020
10
Program /Project Management
Stds
992
$181,041
992
$181,041
11
Asset Commissioning and
Handover
896
$163,521
896
$163,521
12
Strategic Forecasting
640
$116,800
640
$116,800
13
Capital Improvement Program
Business Case Evaluations
880
$160,600
880
$160,600
14
Update Asset Management Plan
1,528
$278,861
458
$83,585
1,070
$195,276
Totals
25,480
$4,624,801
1,860
$320,460
7,549
$1,371,376
7,199
$1,313,818
4,468
$815,413
3,334
$608,458
1,070
$195,276
Left
Margin
0.5"
$500,000
$450,000
$400,000
.5 pt Black Border
$350,000
0 $300,000
0
J $250,000
m
c�
$200,000
w
$150,000
$100,000
$50,000
$0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017 2018 2019
V: \C1ient80 \CCCSD \9564 \cccsd 1114 \cccsd 1114f6- 9564.ai
E �
o din
FIVE YEAR ESTIMATED LEVEL OF EFFORT
14116 pt Anal Bold Upper Case
FIGURE 6
10/12 pt Anal Regular Upper Case
CENTRAL CONTRA COSTA SANITARY DISTRICT
8 110 ptArial RefiglgrE14PA#A , TION PLAN
8110 ptArial Regular Upper ItalicEUMMARY REPORT i
Title Block
Bottom
0.125"
Right
Margin
0.5"
Finance and Administration
8%
O &M
22%
Information Technology
6%
VAC1ient80 \CCCSD\ 9564 \cccsd1114 \cccsd1114f7- 9564.ai
Engineering
28%
,nsultants
30%
:CCSD Management
6%
Percent Total Hours
ESTIMATED LABOR BREAKDOWN
FOR OVERALL AMIP
FIGURE 7
CENTRAL CONTRA COSTA SANITARY DISTRICT
ASSET MANAGEMENT IMPLEMENTATION PLAN
SUMMARYREPORT
Central Contra Costa Sanitary District
APPENDIX A - ASSET NEEDS ASSESSMENT MEMORANDUM
January 2015 — DRAFT
pw: / /Carollo/ Documents /CIienUCA/CCCSD /9564A00/AM I P /Deliverables /AM IP_SummaryReport.docx
�cs I
Asset Management
Needs Assessment Memorandum
Prepared for: Central Contra Costa Sanitary District
October 2014
Project Team
This Draft Asset Management Needs assessment Memorandum was completed through the
combined efforts of staff from Central Contra Costa Sanitary District (CCCSD), Radkin Services,
and Carollo Engineers. The report was prepared under the direction of Dana Lawson. The
Asset Management Needs Assessment participants are acknowledged below.
Person
Andrew Antkowiak
Capital Projects Division Manager
Roger Bailey
General Manager
Thomas Brightbill
Environmental Services Sr. Engineer
Danea Gemmell
Environmental Services Division Manager
Tom Godsey
Environmental Services Sr. Engineer
David Heath
Director of Administration
Stephanie King
Purchasing /Materials Manager
Carolyn Knight
Capital Projects Engineering Support Supervisor
Dana Lawson
Capital Projects AM Sr. Engineer
Roy Li
IT Administrator
Doug Little
Plant Operations Superintendent
Sasha Mestetsky
Capital Projects Collection System Sr. Engineer
Edgar Lopez
Capital Projects Treatment Plant Sr. Engineer
Neil Meyer
Plant Maintenance Division Manager
Nate Morales
Plant Ops. Process Control Sr. Engineer
Teji O'Malley
HR Manager
Jean -Marc Petit
Director of Engineering
Don Rhoads
Collection Sys. Field Operations Superintendent
Dave Robbins
Plant Maintenance Superintendent
Lupe Saldana
Administrative Services Supervisor
Michael Scahill
Communication Services Manager
Paul Seitz
Collection System Operations Division Manager
Thea Vassallo
Finance Manager
Alan Weer
Plant Operations Division Manager
Steve McDonald
Carollo Engineers
Rebecca Overacre
Carollo Engineers
Randy Weaver
Radkin Services
Asset Management Needs Assessment Memorandum
Table of Contents
EXECUTIVE SUMMARY I
SECTION 1: INTRODUCTION AND SUMMARY 1
1.1 Background Information 1
1.2 AM Needs Assessment Objectives 2
SECTION 2: ENTERPRISE ASSET MANAGEMENT 5
2.1 Asset Management — A Different Way of Doing Business 5
2.2 Asset Management — Best Practice Description 6
SECTION 3: NEEDS ASSESSMENT METHODOLOGY 9
SECTION 4: CURRENT CCCSD AM PRACTICES 14
4.1 Asset Management Needs Assessment Results for CCCSD 14
4.2 Summary of Findings 17
SECTION 5: NEXT STEPS 22
Asset Management Needs Assessment Memorandum
List of Figures
FIGURE 1 USEPA ASSET MANAGEMENT FRAMEWORK............
FIGURE 2 PRIMARY LEVEL NEEDS ASSESSMENT CHART...........
FIGURE 2 -1 ASSET HIERARCHY ................. ...............................
FIGURE 3 -1 ASSET MANAGEMENT VALUE CHAIN .....................
FIGURE 4 -1 PRIMARY LEVEL NEEDS ASSESSMENT CHART.........
FIGURE 4 -2 CURRENT, TARGET, AND BAP RATINGS FOR CCCSD
List of Tables
TABLE 1 VALUE CHAIN WEIGHTINGS ................ ...............................
TABLE 3 -1 PRIMARY ASSET MANAGEMENT CATEGORY WEIGHTINGS
TABLE 3 -2 AM CATEGORY WEIGHTINGS ............ ...............................
Asset Management Needs Assessment Memorandum
..................... .............................11
.................. ............................... IV
................... ............................... 6
................... .............................11
................... .............................15
................... .............................16
. .............................11
............................12
............................12
List of Acronyms
AM Asset Management
AMP Asset Management Plan
BAP Best Appropriate Practices
BCE Business Case Evaluation
BRE Business Risk Exposure
CMMS Computerized Maintenance Management System
CIB Capital Improvement Budget
CIP Capital Improvement Plan
GDI Geographic Data Interface
GIS Geographic Information Systems
IT Information Technology
IIMM International Infrastructure Management Manual
MMI Maintenance Managed Item
O &M Operations and Maintenance
ORDM Optimized Renewal Decision Making
PAS Publicly Available Standard (U.K.)
TAMP Total Asset Management Plan
USEPA United States Environmental Protection Agency
Asset Management Needs Assessment Memorandum
Executive Summary
Central Contra Costa Sanitary District ( CCCSD) has implemented various aspects
of asset management throughout the organization, but would like to move towards a
consistent, comprehensive, and strategic asset management program with
documented processes and procedures for data management, analysis, and
evaluation for the treatment plant, collection system, pumping stations, recycled
water distribution system, and general improvement assets.
The goal is to develop a 5 -year implementation plan with the intent that the asset
management practices that are developed will be absorbed into CCCSD's standard
business practices to provide a consistent approach across the organization to
manage the asset portfolio efficiently.
As the first step toward developing its asset management program implementation plan,
CCCSD contracted Carollo Engineers and Radkin Services (Carollo Team) to assist in
a strategic review of CCCSD's current asset management practices and benchmark
them against best appropriate asset management practices. The needs assessment
process identifies areas of good asset management practices as well areas for
improvement. The Carollo Team will assist in developing a set of Asset Management
(AM) improvement projects, which will help bring CCCSD's asset management
practices closer to established industry best practices.
The AM needs assessment process allows the quantification of CCCSD's
management practices by identifying the gaps between the current state and the
desired state of asset management activities.
Asset Management Needs Assessment Process
CCCSD's asset management performance was assessed using the USEPA's asset
management framework and measured against a set of Best Appropriate Practices
(BAP) to identify improvement opportunities. This assessment, combined with value
chain weightings for the seven major AM practice areas, formed the basis to identify and
develop prioritized improvement projects. The USEPA's asset management framework
is shown below.
Asset Management Needs Assessment Memorandum
Figure 1 USEPA Asset Management Framework
ad Current State of our Assets?
Required Sustained Level Of Service?
Which Assets are Critical to Sustained
Performance?
0 Management Strategies for the Assets
MBest Lang -Term funding strategy
The AM framework focuses on seven major asset management practice areas (referred to
as the value chain). Weighing factors were applied to each of the seven areas. The
weighting percentages were set to provide results for an organization desiring sustainable
practices in asset management. These value chain weightings were used to rank and
prioritize improvement projects. Value chain weightings are summarized in Table 1.
Table 1 Value Chain Weightings
Weighting
Asset Management Needs Assessment Memorandum ii
Current Practices
The Carollo Team's methodology assesses an organization's current state of asset
management in terms of more than 150 individual business practices, processes, and
systems that characterize best practice in asset management. The asset management
value chain comprises key categories which organizations must simultaneously manage
effectively to reach proficiency or even excellence in asset management practices. Each
category identifies and measures various organizational processes critical for asset
management decision - making.
Figure 2 represents the benchmarking chart for CCCSD at the primary level of the value
chain. This chart summarizes the current performance and BAP targets for each of the
elements in the AM framework. Current CCCSD asset management practices are described
numerically for each value chain category based on the information the Carollo Team
received during the Needs Assessment Workshops and follow -up interviews.
The assessment results are summarized in Figure 2.
• The top of the blue bars represents CCCSD's current asset management practice level
rating scores
• The top of each red bar in the figure represents the 1 -5 year improvement target for
CCCSD, and
• The top of the tan bars represents the BAP level for CCCSD.
A rating of 20 or less reflects little knowledge and /or poor business practices and a rating
level of 40 reflect good knowledge with ad hoc processes.
The majority of the current ratings fall within the "systematic approach" and "proficient"
ranges of current performance. This is typical for an organization in the early stages of its
AM Program. Short -term 1 -5 year targets have been set to identify where CCCSD should
be targeting its areas for improvement. The longer -term BAP targets have been set in the
"Proficient" and "Excellence" ranges. It should be noted that a low rating does not
necessarily indicate an area for improvement as the value chain weightings may steer
improvement in another area first.
Asset Management Needs Assessment Memorandum iii
Figure 2 Primary Level Needs Assessment Chart
Overall Primary Category Ratings
100
9U
Excellence
sa
10
60
Proficient so
Q u BAP
a 1 -s Yr 7a rget
ao
Systematic Approach r Current
xa
Awareness
30
Innocence
o
Based on the needs assessment results, the following summary of findings provides a
potential vision for progressively improving CCCSD's asset management program to a
"Proficient" and in some areas to an "Excellence" range in the coming years. Although this
vision is presented as a realistic picture of what CCCSD could do, CCCSD will ultimately
need to develop its infrastructure Asset Management Improvement Plan for managing its
assets well into the future.
Summary of Findings
From the needs assessment, CCCSD's areas of strength and areas in need of improvement
are identified. The main output of the needs assessment is the identification of the current
state of asset management activities and areas that warrant further analysis. It is important
to recognize that CCCSD is already undertaking asset management in many areas of the
organization. To date, asset management plans have been developed for the Collection
System, Force Mains, and the Treatment Plant.
The needs assessment used for this project was undertaken at the organization level, using
an approach where participants from multiple divisions were polled in workshops and
interviews on asset management activities. Although some divisions in CCCSD that would
have ratings in areas that would fall in the upper "proficient' and "excellence" ranges are not
reflected individually, because the ratings presented in this assessment are based on the
overall AM practices of CCCSD. This memorandum is not intended to provide a scorecard
for comparison of performance between CCCSD and other organizations.
Asset Management Needs Assessment Memorandum iv
Areas of Strength
The following areas where CCCSD is considered to be performing well include the following:
• Demand Analysis — CCCSD has a very good understanding of the future demands for
services through: the treatment plant data; air and water permits; hydraulic modeling;
and by projecting the number of connections.
• Knowledge of Assets (Collection Assets) —The asset register for linear assets has
good data and is identified in the GIS with established data standards.
• Asset Management Information Systems —An IT Master Plan is currently being
developed, therefore an additional information systems assessment was not included as
part of this process. Yet it is important to note the GIS and GDI applications used for the
collection system assets, and soon the plant assets.
• Asset Creation and Acquisition —A Project Procedures Manual is used by the
Engineering Department for projects from the preliminary design stage, the design
process, the bid process, contract initiation process, and the contraction administration /
construction inspection stages.
• Customer Information /Consultation —The Communications Services Group does an
notable job in communicating with customers and CCCSD staff through newsletters and
surveys.
• Training Programs — Cross - training is provided where applicable. Staff is encouraged
to obtain licenses and certifications for self - development and career advancements.
• Attitude & Culture —The attitude and culture of CCCSD staff was supportive of the
asset management program.
• Asset Management Strategic Goal — By making the Asset Management Program a
part of the Strategic Plan, CCCSD displays the dedication and commitment in advancing
its asset management practices.
Areas of Improvement
A number of areas of improvement have been identified. A brief summary of these
improvement areas is listed below:
• Business Process Mapping— The business processes within CCCSD are limited or
outdated with a substantial reliance on self- managed work management processes.
• Business Risk Exposure (BRE) — A formal evaluation of its business risk as part of the
asset management decision - making process is not being utilized.
• Business Case Evaluations (BCE) —A formal CIP evaluation process is in place but
lacks the rigor in the decision making process with little consideration to the risk and
priority of the project to CCCSD.
Asset Management Needs Assessment Memorandum
Asset Hierarchy — A high -level asset hierarchy is started for the entire District; however
it is only built for the plant assets in Mainsaver using parent/child ID's.
Knowledge of Assets (Plant) — Data standards for the plant assets identified in the
CMMS has not been established.
Valuation — A systematic process for valuing individual CCCSD assets does not exist
for the replacement of assets to project long -term funding requirements.
Operation and Maintenance Data — Currently, only maintenance hours are recorded on
maintenance work orders for collection system assets. The collection of time, parts and
equipment cost data and work order history is imperative for all assets.
Failure Modes and Condition Assessment Protocol (Plant) —A pilot Reliability
Centered Maintenance (RCM) program has been started at the plant. As part of this pilot
program, condition protocols need to be established to assist staff with a process for the
ongoing determination of the physical condition of its infrastructure assets.
Asset Management Information Systems — The Collection System Operations group
has a current need for the replacement of its CMMS (Accela) which is no longer
supported. The new CMMS should also be evaluated to consolidate all assets into one
system.
Contract Administration — Project Managers in the Engineering Department have
access to Microsoft Project for managing projects; however it is not consistently or
uniformly used by the engineering staff.
Knowledge Management— With the large turnover of staff over the last several years, it
is critical for CCCSD to develop a program for retaining the asset and organizational
knowledge before additional retirements and departures occur.
Life Cycle Asset Management Roles and Responsibilities — A formal asset
management steering committee has not been established to help promote and
implement the program. There is a lack of understanding of staff as to what their role is
in the AM program.
Quick Starts
Some "quick starts" have been identified that CCCSD may choose to implement in the
shorter term. These improvements generally take no more than a 6 -12 month period to
implement and provide immediate benefits to the organization. These "quick wins" are
discussed below:
Life Cycle Asset Management Roles and Responsibilities — CCCSD has drafted an
asset management policy, however this policy has not been formally adopted nor has an
asset management steering committee been established to help promote and implement
the program. The forming of an asset management leadership role helps to build a solid
foundation to construct the asset management program. There is a lack of
Asset Management Needs Assessment Memorandum vi
understanding how the AM portion of staff roles links with others throughout the
organization.
• Information Systems — CCCSD should move forward with the procurement of a
replacement CMMS for the Collection System and potentially consolidate all CCCSD's
assets into this one system.
• Asset Hierarchy and Data Standards — Continue with this work in progress as a
priority. All other project improvements are dependent on a good framework.
• Project/Program Management— There are currently four significant projects underway
within CCCSD (Cost of Service Study, IT Master Plan, Asset Management
Implementation Plan, and Succession Planning). In talking with staff, there seems to be
some confusion and frustration as to the coordination of efforts. A Project Manager is
assigned to each of the projects, however there is not a Program Manager assigned to
coordinate these initiatives. A recommendation would be to assign a Program Manager
to provide this coordination.
The major reason for the failure of asset management programs is the lack of organization
buy -in and the allocated responsibility for the implementation. In order to prevent this failure
and lose implementation momentum, it is recommended that the Organizational Structure
and Asset Management Training projects be implemented as soon as possible.
Asset Management Needs Assessment Memorandum vii
Section 1: Introduction and Summary
1.1 Background Information
Established in 1946, the Central Contra Costa Sanitary District (CCCSD) "is a special district
responsible for the collection and treatment of wastewater in a 146 square mile area of
central Contra Costa County." CCCSD collects and treats the wastewater of 462,000
residents and more than 5,000 businesses in 11 cities in central Contra Costa County.
CCCSD's mission is:
"To protect public health and the environment by:
• Collecting and treating wastewater
• Recycling high quality water
• Promoting pollution prevention."
CCCSD's vision is to "Be a high performance organization that provides exceptional
customer service and full regulatory compliance at responsible rates," and it has articulated
a series of goals including:
• Protect public health and the environment
• Maintain existing assets
• Respond to regulatory and community concerns
• Accommodate planned growth.
CCCSD is governed by a five member Board of Directors, each elected to a four -year term.
The General Manager, Secretary of CCCSD, and Counsel for the District report to the Board
while the managers' report to the General Manager include the Director of Administration,
Operations, and Engineering.
CCCSD is committed to improving its asset management program and has full support
from the Board of Directors and General Manager. CCCSD has implemented various
aspects of asset management throughout the organization, but would like to move
towards a consistent, comprehensive, and strategic asset management program with
documented processes and procedures for data management, analysis, and evaluation
for the treatment plant, collection system, pumping stations, recycled water distribution
system, and general improvement assets.
Asset Management Needs Assessment Memorandum 1
1.2 AM Needs Assessment Objectives
The intent of this memorandum is to document CCCSD's current asset management
practices, set improvement targets based on what best appropriate practices (BAP) should
be for CCCSD, and provide a plan and schedule to meet the recommended targets. BAP
targets are generally set less than the World's Best Practice rating of 100. In many cases,
the costs and implications of attaining World's Best Practice may be greater than the
achieved benefits.
This memorandum documents the current state of asset management practices within
CCCSD and serves as a guide for implementation of advanced asset management
practices for CCCSD. Through implementation of advanced asset management practices,
CCCSD intends to make data informed decisions to ensure only necessary work is
completed. Working closely with CCCSD, the Carollo Team has developed a set of
improvement recommendations and set the key business and operational practice targets
for improving asset management practices within CCCSD.
The purpose of this technical memorandum is to document the Asset Management (AM)
assessment process, present the findings, and provide recommendations for future actions
in the form of a series of improvement projects to advance CCCSD's AM Program. The
information for this assessment was drawn from inputs from key CCCSD staff. The reliability
of the results is as accurate as the input that fueled the analysis process. The main output
of this memorandum is to identify the current state of asset management activities and to set
improvement targets to improve asset management practices. This information will be used
to develop a set of projects and a roadmap to assist with the implementation of asset
management practices at CCCSD. Please note, this memorandum is not intended to
provide a "scorecard" for comparison of performance between CCCSD and other
organizations.
The Carollo Team reviewed past studies and reports, facilitated group meetings and
assessed the current performance of CCCSD with regards to each of the relevant quality
elements of the USEPA AM framework. The Carollo Team conducted workshops and
interviews with key staff to further supplement and verify the asset management processes
and practices identified during the needs assessment process. Examples of forms,
procedures and reports were either collected or photos were taken to document our
findings. Carollo selected interviewees based on their specific knowledge and experience.
The Carollo Team's approach was to review CCCSD's technology, organization, and asset
management processes; compare CCCSD's current asset management practices to those
practices considered best appropriate in class, and set reasonable and relevant
improvement targets. Setting these future improvement targets is an important activity in
this assessment and is identified by determining the BAP for CCCSD. BAP is generally less
than best practice for each asset management category but does represent an achievable,
affordable target level for an organization and its business culture. BAP improvement
targets were set in the 1 -5 year range for CCCSD.
Asset Management Needs Assessment Memorandum 2
Asset Management Needs Assessment Memorandum
The following fundamental functions were evaluated for each potential area of improvement
in asset management:
Assess current asset management program against BAP
Highlight areas of strengths and opportunities for improvement
Recommend Asset Management improvement projects to be implemented in order to
close the gaps between current practices and BAP
Current business practice and BAP targets will vary by organization. Not every organization
will want to become the best in the world at asset management, so BAP practice targets are
set to guide the organization to the right level of asset management implementation for
them. The results of the CCCSD assessment, lower scores in many asset management
practice areas, are common for organizations in the early stages of developing an asset
management framework and culture for infrastructure management.
The Carollo Team will use the AM assessment to identify improvement projects for
implementation in detail for the next five years. The intent is that CCCSD will initially have a
clear roadmap for improved service delivery and AM program development, and then
reassess /update their program status by the end of year five. The improvement projects aim
to assist the CCCSD in the following:
Establish the framework and roadmap for building the AM program in -line with the
International Infrastructure Management Manual (IIMM), as well as the USEPA's 2008
Asset Management: A Best Practices Guide Evaluated existing business practices and
guidelines
Build on CCCSD staff involvement
Establish and document Levels of Service statements (i.e. Statement of Work)
Set a baseline for monitoring service delivery, providing a basis for demonstrating future
quantitative improvement
Provide a common language to help CCCSD understand, accept, and implement their
AM program
Implementation of this program will result in great strides towards using the principles and
practices of advanced asset management.
Asset Management Needs Assessment Memorandum 4
Section 2: Enterprise Asset Management
2.1 Asset Management — A Different Way of Doing Business
Asset management is variously defined as follows:
• A management paradigm and body of management practices, applied to the entire
portfolio of infrastructure assets at all levels of the organization, seeking to minimize total
costs of acquiring, operating, maintaining, and renewing assets, within an environment
of limited resources, while continuously delivering the service levels customers desire
and regulators require, at an acceptable level of risk to the organization. — (USEPA)
• An advanced asset management approach that seeks to optimize activities and
programs to meet agreed service standards through the development of management
tactics based on the collection and analysis of key information on asset condition,
performance, life -cycle costs, risk costs and treatment options — (IIMM, International
Infrastructure Management Manual)
• Systematic and coordinated activities and practices through which an organization
optimally and sustainably manages its assets and asset systems, their associated
performance, risks and expenditures over their life cycles for the purpose of achieving its
organizational strategic plan — (Publicly Available Standards (PAS) 55, UK Centre for
Asset Management)
All definitions describe a way of doing business that:
• Bases itself in performance
• Strives for optimal results through continuous improvement
• Involves comprehensive, systematic collection and analysis of asset information to drive
an organization's business activities
As such, asset management is a "means to an end," the "end" being:
• Improved transparency and accountability
• Increased financial performance
• Decreased risk that is identified and accepted by staff and stakeholders alike
• Adopted sustainable levels of service that balance service quality, risk, and cost
All of this aligns well with CCCSD's objectives, namely:
• Protect and enhance the quality of life and water resources
• Deliver outstanding performance in an efficient manner
Asset Management Needs Assessment Memorandum 5
CCCSD has yet to establish and institutionalize a performance -based management
framework that is critical for driving improved management of their assets. Such a
framework would demonstrate the purpose of improved asset management, but would also
provide staff with clear purpose and context for any necessary organizational change and /or
change in business practices.
2.2 Asset Management — Best Practice Description
An organization that is delivering BAP in asset management can make the following claims:
• We know the assets we own and /or for which we have responsibility or legal liability
because we have them recorded down to the maintenance managed item (MMI) level in
a structured, formal, up to date registry.
• We know the condition, performance, utilization, reliability and costs of our assets down
to the MMI level (as justified) because we regularly monitor and assess a broad range of
asset characteristics (as justified). We aggregate the data upwards to provide outputs
for cost and performance management using parent -child relationships such as:
• Facility
• Processes
• Systems
• Asset
• Components
NO
Figure 2 -1 Asset Hierarchy
Facilil.
Process
Systems
Assets
Components
9 h moil,
0al
R�
RIA
• We routinely use this information to develop an asset "condition" index that allows us to
integrate customer, user, and technically based requirements.
• Our managers have ready access to our asset data and knowledge through corporate
information systems that effectively enable our integrated asset management processes
and practices.
Asset Management Needs Assessment Memorandum 6
• We thoroughly understand the relationship between different levels of service and their
respective life -cycle costs. Our performance management process routinely strives for
the optimum balance between cost, risk, level of service, and customer /regulatory
expectations.
• We understand our long -term ( >_ 20 years) funding needs for capital and operating
programs. Our management practices result in the lowest life cycle cost that meets the
level of service and other performance requirements.
• Our current and future levels of service (quantity and quality) are documented, well
understood, and accepted by all levels of our organization and our stakeholders. This
includes service demand, asset condition, function /size /type (fit for use), reliability, repair
response times, and regulatory requirements.
• We use a structured and consistent performance -based asset management process. As
an ongoing part of that process, we identify gaps (positive and negative) between
current and desired performance and act accordingly.
• We thoroughly understand which assets are critical to our meeting our service levels.
We routinely monitor these assets and make every reasonable effort to avoid their
failure.
• We routinely monitor and assess the likelihood and consequence of asset - related risks,
in terms of our whole of business activities.
• We achieve best value for money spent through routine, structured, and consistent
organization -wide business processes for capital, operations, and maintenance
programs alike. We understand the total costs and benefits of projects and programs in
terms of our business objectives and costs before proceeding.
• We consider "full costs" in our asset investment decisions, including indirect costs arising
from social and environmental impacts.
• We only proceed with capital projects if there is sufficient money to operate and maintain
the resulting assets.
• We strive for continuous improvement through a routine, structured process. For
example, we routinely compare our performance against best in class and other
businesses, including needs assessment.
• Our organization is structured to enable effective asset management. Asset
management roles and responsibilities are documented and routinely communicated.
Our training programs are designed to proactively promote asset management skill
development.
Asset Management Needs Assessment Memorandum
Our corporate commitment to asset management is documented and routinely
communicated through our asset management policy(s).
We report comprehensively on our asset performance and cost at least every 5 -years
via the development of our Asset Management Plan.
We routinely and proactively seek input on our performance from our customers and
other stakeholders, including key individual projects and programs.
We report our asset management performance routinely in an infrastructure report,
called an Asset Management Plan.
Asset Management Needs Assessment Memorandum 8
Section 3: Needs Assessment Methodology
The Carollo Team's methodology assesses an organization's current state of asset
management in terms of more than 150 individual business practices, processes, and
systems that characterize best practice in asset management. To support the remaining
sections of this memorandum, key parts of that methodology are included in this section.
The Asset Management Value Chain
The AM Value Chain (shown in Figure 3 -1) comprises key organizational processes
(categories) that organizations must manage effectively to reach excellence in asset
management. Each category identifies and measures various organizational components
that are critical for asset management decision - making. The methodology follows the IIMM
methodology and USEPA AM Framework. It is organized into seven primary categories with
26 secondary categories and more than 150 categories at the tertiary level, thus obtaining a
detailed, wide spectrum assessment of an organization's AM practices.
The value chain categories are:
1. Life -Cycle Processes and Practices comprise:
1.01 Demand Analysis - assesses the way an organization understands customer and
other stakeholder demand for an asset; promotes construction and maintenance of
assets that neither exceeds nor fall shorts of expectations.
1.02 Knowledge of Assets - assesses an organization's processes, practices, and
policies for acquiring and maintaining asset information, including data standards.
1.03 Accounting and Costing - assesses the quality of processes used to determine
the "true" cost of service.
1.04 Strategic Planning (Life Cycle) - assesses the processes used to prepare and
maintain long -term strategic plans.
1.05 Capital Improvement Project (CIP) Evaluation and Approval Process -
evaluates the processes used to justify capital investments.
1.06 Corporate Business Risk Assessment and Management - assesses the
process for measuring risks associated with decisions related to commercial
business, levels of service, project delivery, and investment.
1.07 Asset Creation and Acquisition - assesses the processes used to create and /or
acquire necessary assets.
Asset Management Needs Assessment Memorandum 9
1.08 Asset Rationalization and Disposal - examines how an organization rationalizes
its asset investments and handles asset decommissioning and disposal.
1.09 Asset Operations — assesses operational practices.
1.10 Asset Maintenance —assesses maintenance practices.
1.11 Work /Resource Management - assesses the quality of processes and practices
used for work management.
1.12 Review Audit (Continuous Improvement Processes) - examines the processes
for reviewing development and implementation of the asset management program.
2. Information Systems involve:
2.01 Primary Information Systems - the finance information system, customer and
property records, asset register, geographic information system and the
maintenance management system.
2.02 Secondary Information Systems - the knowledge management, inventory
management, condition and capacity models.
2.03 Tertiary Information Systems - risk assessment, optimized renewal decision -
making, and life cycle cost system.
2.04 General Overall Information System Issues - assesses the level of integration,
user friendliness, system access, system strategy, and effectiveness of the asset
management information systems.
3. Data and Knowledge - measures the type and quality of asset management data:
3.01 Primary Data - asset categories, asset hierarchy, asset location / plans, primary
physical asset attributes, and valuation data.
3.02 Secondary Data - detailed asset attributes, condition assessment, performance
and utilization, maintenance data, operations and failure management data, and
works / resource data.
3.03 Tertiary Data - risk assessment and risk reduction data, cost histories, intervention
options and costs, optimized renewal data, and life cycle cost data.
4. Commercial Tactics - the organization's business processes to promote asset
management, including identification of core and non -core activities, packaging of
contracts, specification quality, contract supervision, contractor selection and work
quality control.
Asset Management Needs Assessment Memorandum 10
5. Organizational Issues - the way in which the organizational structure, roles, and
responsibilities support asset management. The assessment is judged against the key
success factors of sponsor, structure, policy, asset management roles and
responsibilities, asset management steering committee, corporate asset management
team, and overall commitment to the program.
6. People Needs - how an organization manages its employees and how it handles human
resource issues related to asset management, including skills and age profiles, attitude
and culture, change management activities, training programs, corporate knowledge
management, and equipment / support systems required to sustain asset management.
7. Asset Management Plan - draws together all categories of the value chain to assess
the organization's ability to produce an effective asset management plan.
Figure 3 -1
Asset Management Value Chain
Information
Systems
Lifecycle
Process & Data &
Practices Knowledge
o Asset
Plan
Organizational People
Needs Needs
Commercial
Tactics
Outcome: Sustainable, best value service delivery
Asset Management Needs Assessment Memorandum 11
The value chain categories are shown in Table 3 -1. For the purpose of this assessment,
relative weights were allocated to each of these categories as follows:
Table 3 -1 Primary Asset Management Category Weightings
Priority weightings were allocated to the secondary categories as shown in Table 3 -2.
These weightings were used to prioritize the needs assessment results and guide the
improvement initiatives.
Table 3 -2 AM Category Weightings
Primary Category Secondary Category
Weight
1.01
Demand Analysis
10
1.02
Knowledge of Assets
10
1.03
Accounting & Costing
5
1.04
Strategic Planning (Life Cycle)
12
1.05
Capital Improvement Project (CIP) Evaluation and
12
Approval Process
1.06
Corporate Business Risk Assessment and
15
Management
1.07
Asset Creation /Acquisition
5
1.08
Asset Rationalization & Disposal
0
1.09
Asset Operations
10
1.10
Asset Maintenance
10
1.11
Work/Resource Management
5
1.12
Review Audit (Continuous Improvement
4
Processes)
1.13
Development Administration
2
Asset Management Needs Assessment Memorandum
12
Scoring the Categories
The current state of asset management is assessed using information from the workshops
and scored for each of the 150 individual existing practices, processes and systems; the
following quality rating scale applies:
0 = Little or no knowledge
20 = Little knowledge & ad hoc processes
40 = Good knowledge & ad hoc processes
60 = Consistent processes & partially documented
80 = Extensive knowledge & partially documented
100 = Fully documented & externally audited
Life Cycle Process and Practices
The following section describes CCCSD's performance in terms of the Life Cycle Process
and Practices component of the Gap assessment.
Asset Management Needs Assessment Memorandum 13
Table 3 -2 AM Category Weightings
Primary Category Secondary Category
Weight
2.01
2.02
Primary Information Systems
Secondary Information Systems
100
50
30
2.03
Tertiary Information Systems
10
2.04
General Overall Information Systems Issues
10
100
3.01
Primary Data
40
3.02
9. . . • • - • . - Secondary Data
30
3.03
Tertiary Data
30
100
Scoring the Categories
The current state of asset management is assessed using information from the workshops
and scored for each of the 150 individual existing practices, processes and systems; the
following quality rating scale applies:
0 = Little or no knowledge
20 = Little knowledge & ad hoc processes
40 = Good knowledge & ad hoc processes
60 = Consistent processes & partially documented
80 = Extensive knowledge & partially documented
100 = Fully documented & externally audited
Life Cycle Process and Practices
The following section describes CCCSD's performance in terms of the Life Cycle Process
and Practices component of the Gap assessment.
Asset Management Needs Assessment Memorandum 13
Section 4: Current CCCSD AM Practices
4.1 Asset Management Needs Assessment Results for CCCSD
Current CCCSD asset management practices are described for each value chain category
based on the information the Carollo Team received from the needs assessment workshops
and interviews.
When interpreting the results, it is important to note that a low score does not imply CCCSD
AM practices are poorly managed. Rather, it indicates improvements can be made to the
asset management program to benefit CCCSD.
The assessment results are summarized in Figure 4 -1 at the primary level, and Figure 4 -2 at
the secondary level.
• The top of the blue bars represents CCCSD's current asset management practice level
rating scores
• The top of each red bar in the figure represents the 1 -5 year improvement target for
CCCSD, and
• The top of the tan bars represents the BAP level for CCCSD.
A rating of 20 or less reflects little knowledge and /or business practices and a confidence level
rating of 40 reflects good knowledge with an ad hoc processes.
In all cases, the Carollo Team suggests that BAP for CCCSD should be less than Leading
Industry Practice (100 rating). In many cases, the costs and implications of attaining Leading
Industry Practice in every category may be greater than the achieved benefits for any
individual Agency. As a result, even "best in class" operations are typically operating at less
than Leading Industry Practice.
Asset Management Needs Assessment Memorandum 14
Figure 4 -1 Primary Level Needs Assessment Chart
Overall Primary Category Ratings
100
90 .
Excellence
80
70
60
Prof=icient 50
40 LJ BAP
0 1 -5 Yr Target
30
Systematic Approach o Current
0 20
Awareness
10
Innocence
0
ey
Asset Management Needs Assessment Memorandum 15
Excellence
Proficient
Systematic Approach
Awareness
Innocence
100
90
80
ail
Gil
50
40
ail
20
10
Figure 4 -2 Current, Target, and BAP Ratings for CCCSD
Secondary AM Category Ratings
aca�Qa np� fiyyLQ�
ry 400 <J et o �o w
5
P
Asset Management Needs Assessment Memorandum 16
U BAP
■ 1 -5 Yr Target
0 Current
4.2 Summary of Findings
From the needs assessment, CCCSD's areas of strength and areas in need of improvement
are identified. The main output of the needs assessment is the identification of the current
state of asset management activities and areas that warrant further improvement. It is
important to recognize that CCCSD is already undertaking asset management in many
areas of the organization. To date, asset management plans have been developed for the
Collection System, Force Mains, and the Treatment Plant.
The needs assessment used for this project was undertaken at the organization level, using
an approach where participants from multiple divisions were polled in workshops and
interviews on asset management activities. Although some divisions in CCCSD would have
ratings in areas that would fall in the upper "proficient" and "excellence" ranges are not
reflected individually, because the ratings presented in this assessment are based on the
overall AM practices of CCCSD. This memorandum is not intended to provide a scorecard
for comparison of performance between CCCSD and other organizations.
Areas of Strength
The following areas where CCCSD is considered to be performing well include the following:
Demand Analysis — CCCSD has more than 5 years of plant data. Title V air and water
permits get QA/QC'd by the Plant Operation Division's regulatory group. The Planning
group has a static hydraulic model for the Collection System that is being upgraded to a
dynamic model for monitoring flows in the next wet season. The Environmental Services
Division also projects the number of new connections.
Knowledge of Assets (Collection Assets) — The asset register for linear assets seems
to be sound. The assets are identified in the GIS system with established data
standards. Collection System's tech services group is responsible for entering
maintenance data into the CMMS. When new assets are added they go more through
engineering support /GIS, then after some communication the CMMS gets updated with
GIS info.
Asset Management Information Systems — There is currently an IT Master Plan being
developed, therefore an additional information systems assessment was not included as
part of this process. However, it is noteworthy to highlight the GIS and GDI applications.
The GIS database currently contains data for the collection system assets, and the
records for plant assets are currently being developed. The GDI application is the
interface for storing and linking asset specific information.
Asset Management Needs Assessment Memorandum 17
• Asset Creation and Acquisition -The Engineering Department has a Project
Procedures Manual for projects from the preliminary design stage, the design process,
the bid process, contract initiation process, and the contraction administration /
construction inspection stages.
The design / construct process includes input from the operations and maintenance staff
to ensure the assets are operable and maintainable. Specifications for contractors are
well defined and documented.
• Customer Information /Consultation — The Communications Services Group conducts
internal /external surveys, all through print and internal /external newsletters. They are
currently in the process of developing a customer survey, with the help of a consultant,
which will be reviewed and approved by the Board of Directors. Weighing survey
against stakeholder focus groups. Have annual demographic data. Customer survey
may be complete by end of year. There are additional surveys for customers as a follow -
up to call -outs for sewer backups, and surveys for feedback during construction projects.
Marks are usually high.
• Training Programs — Cross - training is provided where applicable. Staff is encouraged
to obtain licenses and certifications for self - development and career advancements. The
Collections Division maintains a "yellow" book for staff training.
• Attitude & Culture —The attitude and culture of CCCSD staff was supportive of the
asset management program.
• Asset Management Strategic Goal - CCCSD has made the Asset Management
Program a part of the Strategic Plan in order to drive the asset management program.
By making asset management a strategic goal, it shows the dedication and commitment
in advancing its asset management practices. CCCSD is committed to improving its
asset management program and has full support from the Board of Directors and
General Manager.
Areas of Improvement
A number of areas of improvement have been identified. A brief summary of these
improvement areas is listed below:
• Business Process Mapping — The business processes within CCCSD are limited or
outdated. There is heavy reliance on self- managed work management processes. A lack
of structured, organization -wide business processes for asset management to enable
performance management and to promote continuous improvement. With the lack of
documentation, the understanding of job duties and responsibilities can become unclear
and business processes are not standardized.
Asset Management Needs Assessment Memorandum 18
• Business Risk Exposure (BRE) — Currently, CCCSD is not using a formal evaluation of
business risk as part of its asset management decision - making process. Understanding
Business Risk Exposure helps to prioritize available resources and budgets.
Risk assessment enables differentiation among assets and prioritization according to the
level of risk each asset represents to the organization. An organization should predict,
quantify, and use the business risk exposure to make appropriate management
decisions that will minimize risk across the asset portfolio.
• Business Case Evaluations (BCE) - Capital improvement projects are being generated
with little consideration to the risk and priority to CCCSD. There is a formal evaluation
process in place but it lacks the rigor in the decision making process. Incorporating
standard protocols to measure the confidence level of a given project, estimating
business risk exposure reduction for a given investment, utilizing life cycle costing to
determine the lowest total cost of ownership, and developing rigorous project
justifications (BCE's) all provide for improved quality of the overall CIP decision - making
process.
• Asset Hierarchy— Although this is a work in progress, a high -level hierarchy is started
for the entire District; however it is only built for the plant assets in Mainsaver using
parent /child ID's. An asset hierarchy should contain a complete listing of assets, with the
relationships to aggregate and rollup information on the asset portfolio. The information
held against the asset hierarchy can then be aggregated to reflect assets, facilities, sub-
systems, or the entire asset portfolio.
• Knowledge of Assets (Plant) — The assets identified in the CMMS system for CCCSD
plant assets have no data standards established. There is little or no condition and
performance data, or economic evaluation.
Asset data standards provide the relationship between the data and the decisions made
and identify data required for asset management. This provides a standard framework
for data collection and data maintenance. Asset data standards should be established
for every asset type and reflected in the CMMS.
• Valuation — Accounting tracks the aggregate value of projects to asset groups for
depreciation purposes and capacity fee calculations. A systematic process for valuing
individual CCCSD assets does not exist for the replacement of assets to project long-
term funding requirements. Asset valuations are an integral part of asset management.
The valuation process provides the organization with necessary asset knowledge to
make sound managerial decisions and to prepare for regulatory and funding
requirements. Apart from being a sound financial practice, asset valuation is a valuable
management tool. It assists in determining future budgets and allocating costs, and
provides measurements for performance.
Asset Management Needs Assessment Memorandum 19
• Operation and Maintenance Data - CCCSD currently only records staff time on
maintenance work orders for collection system assets. The collection of time, parts, and
equipment cost data is imperative for all assets. For all assets, develop a procedure for
undertaking life cycle costing analysis to ensure consistency of approach and increase
the efficiency of such analysis.
• Failure Modes and Condition Assessment Protocol (Plant) — The management
strategy of an asset can be optimized by understanding and identifying the failure mode
of the asset. For example, it is not beneficial to perform condition assessment on an
asset failing from capacity. CCCSD would like to start a pilot Reliability Centered
Maintenance (RCM) program at the plant. As part of this pilot program, condition
protocols need to be established. The purpose of developing a condition assessment
protocol is to assist staff with a process for the ongoing determination of the physical
condition of its infrastructure assets.
Condition protocols provide an organized method that will produce a consistent, relevant
and useful set of guidelines that can be used repeatedly for the development of an
effective CIP and, Operations and Maintenance plans. As with any new process the
organization structure should be evaluated as how to best support asset management,
such as reliability engineering to conduct root cause analysis.
• Asset Management Information Systems — There is a current need to replace the
CMMS for the Collection System since the current application (Accela) is no longer
supported. Additionally, the new CMMS should be evaluated to consolidate all assets
into one system (Accela, Mainsaver and a few random databases and spreadsheets).
The CMMS for the treatment plant ( Mainsaver) is not user - friendly and has not been
readily embraced by all levels of Maintenance staff.
Currently data needed to manage assets resides in multiple information systems (e.g.
GIS, GDI, CMMS, FIS, SCADA, CCTV). In order to allow the asset manager to extract
required data from any system to support the asset management decision - making
process, it is imperative to integrate all information systems. It is also noteworthy, that
with the amount of data and the number of applications that CCCSD is utilizing, there is
no database administrator.
• Contract Administration - The Engineering Department has a contract administration
manual and typically uses in -house project managers, contract administration, and
inspection staff. Project Managers have access to Microsoft Project for managing
projects; however it is not consistently or uniformly used by Engineering staff.
• Knowledge Management— CCCSD has experienced a large turnover of staff in the
last several years, with very few long -term senior or management level staff remaining.
It is critical for CCCSD to develop a program for retaining the asset and organizational
knowledge before additional retirements and departures occur.
Asset Management Needs Assessment Memorandum 20
• Life Cycle Asset Management Roles and Responsibilities — CCCSD has not formally
established an asset management steering committee to help promote and implement
the program. The forming of an asset management leadership role helps to build a solid
foundation to construct the asset management program. There is a lack of
understanding how the AM portion of staff roles links with others throughout the
organization.
Quick Starts
Some "quick starts" have been identified that CCCSD may choose to implement in the
shorter term. These improvements generally take no more than a 6 -12 month period to
implement and provide immediate benefits to the organization. These "quick wins" are
discussed below:
• Life Cycle Asset Management Roles and Responsibilities — CCCSD has drafted an
asset management policy, however this policy has not been formally adopted nor has an
asset management steering committee been established to help promote and implement
the program. The forming of an asset management leadership role helps to build a solid
foundation to construct the asset management program. There is a lack of
understanding how the AM portion of staff roles links with others throughout the
organization.
• Information Systems — CCCSD should move forward with the procurement of a
replacement CMMS for the Collection System and potentially consolidate all CCCSD's
assets into this one system.
• Asset Hierarchy and Data Standards — Continue with this work in progress as a
priority. All other project improvements are dependent on a good framework.
• Project/Program Management— There are currently four significant projects underway
within CCCSD (Cost of Service Study, IT Master Plan, Asset Management
Implementation Plan, and Succession Planning). In talking with staff, there seems to be
some confusion and frustration as to the coordination of efforts. A Project Manager is
assigned to each of the projects, however there is not a Program Manager assigned to
coordinate these initiatives. A recommendation would be to assign a Program Manager
to provide this coordination.
The purpose of this AM Needs Assessment is to provide the basis for a road map and
implementation plan which will eventually lead to the next production of the CCCSD's asset
management plans. By developing a robust and substantiated asset management plan,
CCCSD will improve asset knowledge, improve understanding of business risk exposure,
develop a balanced CIP and operations expenditure plan, and have a more rigorous
knowledge of future asset rehabilitation and replacement needs.
Asset Management Needs Assessment Memorandum 21
Section 5: Next Steps
This memorandum presents a set of recommendations and findings from the needs
assessment process. This assessment will be used to develop the Implementation Plan.
The methodology and recommended set of improvements will take CCCSD well down the
path to changing the culture to one that is more focused on long -term sustainable
infrastructure management. There are a number of considerations for CCCSD to take into
account as the impact of implementing the improvement projects is considered. The journey
of implementing asset management has been proven around the world to be a long -term
venture; many will say a five to ten year process. Most organizations consider this a process
of continuous improvement instead of a goal to fully meet all of the best practices in asset
management since trying to achieve may them not be appropriate or cost - effective for the
organization.
Asset management is more common sense than it is rocket science. It is important for
CCCSD to keep it simple, take a measured approach to implementation, and stay organized
and focused on the long -term goal. Successful organizations focus on the relevant decision
making processes that enable them to best manage their infrastructure portfolios, by starting
with the simple approaches that over time lead to appropriately applied sophisticated
approaches, where relevant. Asset management is ultimately about knowledge
management and making the best management decisions for the long -term sustainability of
the infrastructure.
Asset Management Needs Assessment Memorandum 22
Central Contra Costa Sanitary District
APPENDIX B - DETAILED PLAN ELEMENT DESCRIPTIONS
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Element 1 — AM Organization, Policies and Key Strategies to
Support Asset Management
Overview
CCCSD needs to clearly define and communicate the purpose (vision and objectives) of
improving asset management and the expected change in outcomes to be achieved
through improved business practices. This Element is designed to develop that context and
has a resulting high priority on the Improvement Roadmap.
The recently developed AM Policy documents the adopted vision, objectives, and desired
outcomes.
Effective implementation of asset management requires clearly documented and
communicated AM roles, responsibilities, and key strategies. Normally this includes
development of cross - functional asset management teams to enable improved decision-
making and work management.
Objectives
To develop the guidelines for CCCSD to implement the adopted vision, objectives and
strategies. The guidelines should appropriately reflect the need for purposeful integration of
all essential elements of a fully functioning asset management program, including service
levels; performance monitoring; risk management; life cycle cost and performance
assessment; TBL; asset data and data systems; roles, responsibilities, and accountabilities;
decision making processes; financial modeling, and benchmarking.
Benefits
• Clarity of purpose for improving AM.
• Clarity of AM roles and responsibilities — e.g., centralized vs. decentralized roles and
responsibilities.
• An organizational structure that will enable improved AM.
• AM teams that are adequately resourced and whose roles and outcomes are clearly
documented.
• A cross - functional approach that promotes AM improvements that benefit internal and
external stakeholders.
• Improved AM- related decisions, learning, and support for operations.
• Improved understanding of the resources required to improve AM and the related
organizational impacts.
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Outcomes
• A clear vision and related strategic management framework for asset management at
CCCSD.
• Clearly documented and communicated roles and responsibilities for AM within
CCCSD.
• Proposed organizational strengthening required, including changes to organizational
structure to more effectively enable AM.
• An adopted Roadmap for AM improvements.
• Proposed structure for improving AM, including management sponsors and cross
functional teams.
• A communications strategy for improving AM at CCCSD.
Prerequisite Elements
CCCSD Board Policy 15, Asset Management, was adopted on November 20, 2014.
Relationship to Other AM Business Processes /Functions
Components of this Element — e.g., the AM vision, key strategies, policy and roles and
responsibilities — are typical prerequisites for developing and implementing all other AM
improvements.
This project provides the strategic context for all other AM business processes and
functions.
Element 2 — Asset Register
Overview
The Asset Register is the foundation for all asset management practices. It is a database
that contains a systematic recording of all assets managed by CCCSD.
For each asset class, data framework defines the data attributes required to support asset
management. Understanding the required data attributes will allow CCCSD to realize the
data gaps and focus on developing an optimized strategy to collect data.
The Asset Register is built around two basic concepts:
The asset hierarchy — the structured relationship among assets in the portfolio.
The record layout — the asset attributes that are recorded.
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An asset hierarchy provides a structured framework for organizing the data in the asset
register. It enables the organization to obtain the asset information (e.g., valuation, risk,
cost) required for management decisions at all levels in the hierarchy. Asset hierarchy
identifies the level at which work orders are generated and data is collected. It supports the
structure where the information system (e.g., CMMS, GIS, SCADA) records and provides
the asset data necessary for asset management.
The MMI identifies the level at which an asset is managed. Depending on the asset, MMI
could be at the system, asset, or component level. Management strategies (e.g., run -to -fail,
rehabilitate, replace) are developed at the MMI level. Numerous organizations have
difficulty in defining an asset. Some CMMS's are populated with low value assets that do
not require management. Establishing the MMI will assist CCCSD in differentiating between
tracking assets using the asset register versus the inventory database. Identifying assets to
manage promotes efficiency by reducing the work orders generated on assets that do not
require management.
The record layout identifies the asset data to be collected. The Asset Register provides the
core, common structure to be used by all related information systems — e.g., CMMS, GIS,
SCADA. CCCSD currently has a no single asset register. Development of a single asset
register is a vital early step towards an effective, organization -wide approach to asset
management.
Objectives
The objective of this project is to provide a framework for CCCSD to enhance the asset
hierarchy, define the MMI, and identify the data attributes required to support the asset
management decision - making process. Specifically, with implementation of this project,
CCCSD will be able to:
• Develop an asset hierarchy.
• Establish Maintenance Managed Item.
• Understand the data framework and data gaps.
• Prioritize data collection strategy.
Benefits
The key benefits from this project include:
A solid foundation for planning the Enterprise Asset Management System, and,
thereby, the CMMS.
Consensus on an appropriate MMI level(s).
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• A systematic list of all assets managed by CCCSD to the MMI level understanding the
data gaps and prioritization for data collection.
• Distinguishing between assets recorded in the CMMS versus in an inventory
database.
• Providing a foundation for implementation of future IT systems (i.e., CMMS).
• Developing a consistent approach towards data management.
Outcomes
• Data Framework Technical Standards Document - This document will identify and
document the required and recommended asset data attributes to support the asset
management decision - making process. The attributes will be provided at the asset
class level. Minimum data requirements will be defined for each asset class /type.
• Data gaps identification — This will summarize the review of current data and identify
the data gaps.
Relationship to Other AM Business Processes /Functions
The Asset Register is vital to providing a consistent, structured inventory of asset
information for all asset management practices, procedures and decision - making.
The CMMS Replacement, District Project 8242, is currently underway; similar stakeholders
should be involved in both projects to facilitate consistency and ensure data management
being defied for the GIS and CMMS databases is incorporated into this project to ensure
data attributes and framework meets the new systems' requirements and capabilities.
Element 2a — Asset Hierarchy and Data Standards
Develop an asset hierarchy, establish the MMI level, understand the data framework and
data gaps, and prioritize data collection strategy.
Element 2b — Complete Asset Register for Pump Station and
Treatment Plant Assets
In accordance with the Asset Hierarchy and Data Standards developed in Element 2a, the
asset register will be completed for the pump station and treatment plant assets. While
much of this information has been collected, effort will be made to collect standard data for
all assets and to populate the CMMS database with consistent use of data fields. Key data
to be collected for each asset are:
• Parent Facility, Process, or Component.
• Asset Tag.
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• Equipment ID.
• Nameplate Data.
• Basic Design Criteria (size, horsepower, if not covered with nameplate data).
• Location.
• Installation Year.
Relationship to Other AM Business Processes /Functions
In coordination with the CMMS Replacement, District Project 8242, data may be updated
prior to migration or after.
Element 2c — Complete Utility Locating and Drafting to Consolidate
Treatment Plant Piping As- Builts
In accordance with the Asset Hierarchy and Data Standards developed in Element 2a, it is
recommended that CCCSD complete the utility locating and surveying /drafting to
consolidate as- builts. This information will be prepared for import into the new ESRI
geodatabase.
Element 2d — Complete Asset Register for Treatment Plant Piping
In accordance with the Asset Hierarchy and Data Standards developed in Element 2a, it is
recommended that CCCSD complete the asset register for treatment plant piping. This
information will be prepared for import into the new ESRI geodatabase, which utilizes the
Local Government Information Model (LGIM) database schema. Key data to be collected
for each treatment plant piping reach are:
• Origin and terminus.
• Contents.
• Diameter.
• Material.
• Installation Year.
Element 3 — Plant Maintenance Strategy
Overview
RCM is a systematic approach to maintenance that tailors activities to an asset's
performance criteria and failure mode. It incorporates performance monitoring, assessment,
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and predictive maintenance activities. RCM is used to cost - effectively maintain assets to
achieve the intended service. This element involves a pilot study of RCM using electrical
assets as the focus of the study.
Objectives
The objective of this element is to provide a framework for CCCSD to improve maintenance
efficiency and results. RCM supports business goals of reducing risk and overall costs of
ownership.
In conducting a pilot study of RCM focused on one asset type, CCCSD aims to test the
feasibility and results of this approach before implementing RCM for all treatment plant and
pump station assets.
Benefits
The key benefits from this project include:
• A trial implementation of an improved approach to maintenance, using one asset type
as a pilot.
Outcomes
• Improved maintenance practices for electrical assets.
• Feedback on benefits and practicality of implementing RCM for other asset types.
Prerequisite Elements:
• Element 1 — e.g., the AM Policy, vision, mission and objectives.
Relationship to Other AM Business Processes /Functions
This element relates to Element 2a -d because it requires knowledge of assets, failure mode
analysis, and condition monitoring. This element also relates to the overall asset
management objectives defined in Element 1.
Element 3a — Reliability Centered Maintenance Pilot Program
Conduct a pilot study of RCM focused on electrical assets in the treatment plant to test the
feasibility and results of this approach before implementing RCM for all treatment plant and
pump station assets.
Element 3b — Expand Reliability Centered Maintenance Program
Upon the successful completion and evaluation of the RCM Pilot Program (Element 3a),
expand the program to all treatment plant and pump station assets.
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Element 4 — Business Process Mapping
Overview
Mapping business processes will provide step by step work flows, formalize the
relationships between tasks and responsibilities at which decisions are made and
understand the levels at which actions takes place.
Mapping business process flow is a fundamental step in reducing total cycle times.
Mapping the flow and tracking time for each of the events provides a basis for analysis. The
process is not difficult, however it is time consuming. It provides a step by step image of
work flow, systems, procedures, and volumes. It reveals the relationships between the
tasks.
Once work flow cycles are mapped, the opportunities to compress time can be pursued.
The goal in compressing time is not to devise the best way to perform a task, but rather to
either eliminate the task altogether or perform it parallel with other tasks so the overall
system response time is reduced.
Extending this approach to the entire business and focusing in on the mainstream activities
that add value is key. Each of the steps can be further decomposed into smaller activities.
By providing the output, such as transferring information, from smaller activities much
sooner to the subsequent smaller activities, time can be compressed.
Objectives
The objective of this project is to provide a framework for CCCSD to continue with the
development and improvement of business processes for the overall efficiency and safe
operation of the utility system. Develop and adopt a plan for implementing improved
performance -based management at CCCSD.
In developing the business processes, the goal is to accomplish certain financial and
management objectives and to improve the overall efficiency and safe operation of the
utility system. The key objectives are as follows:
• Establish the current processes for managing the business workflows using
organizational knowledge and information.
• Developed a set of best practice business processes.
• Create a more efficient, less costly system while providing excellent service quality.
• Continue to provide high - quality, uninterrupted service to all utility system users.
• Manage, maintain, and operate the utility system in a safe and efficient manner in
accordance with all applicable laws and regulations and in conformance with good
industry practice.
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A key component of the implementation plan is a process for ongoing performance
monitoring and for continually refining and improving the performance management
process over time based on experience.
Benefits
The key benefits from this project include:
• A more comprehensive description of the overall AM approach for CCCSD including a
documented description of individual business processes, their functionality, their
relationship to other business processes and related information requirements.
• A consistent approach to asset management through well- defined and communicated
business processes.
• Consistent, documented processes and procedures that line up with asset
management business and decision - making processes.
• Information and technology systems that are driven by clear business requirements
and not vice versa.
Outcomes
Update current business practices, along with workflow diagrams such as:
— Capital Improvement Budget process
— Asset acquisition through "developer jobs" or CCCSD capital projects, following
the design review process, permitting, construction and inspection, acceptance,
record drawings, CMMS & GIS updates and electronic document storage
— Asset disposal
A performance based management process for CCCSD, including relevant outcome
based objectives and key performance indicators (KPIs).
An implementation plan to improve performance -based maintenance management
and reporting processes.
Prerequisite Elements
Element 1 — e.g., the AM Policy, vision, mission and objectives.
Relationship to Other AM Business Processes /Functions
The interrelationships between business processes and functions will be developed through
this project.
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Element 5 — Knowledge Management Strategy
Overview
A knowledge management strategy will include an assessment of what relevant asset
knowledge currently resides outside of CCCSD's information systems and what process
should be followed to capture this knowledge. This assessment should also include
processes to prevent the future loss of knowledge from CCCSD. Following the assessment
of the existing CCCSD information systems the capture of the required information will be
determined.
Examples of knowledge that should be assessed as part of this strategy include
maintenance history, service history, known asset issues (capacity, level of service,
operational deficiencies, and operational systems quirks), and known sources of difficult to
find spare parts, condition and contractors.
Objectives
The objective of this project is to:
• Develop a corporate knowledge management strategy.
• Capture CCCSD staff's corporate knowledge.
This strategy will focus on knowledge related to the assets, including history, current
performance, and future requirements. Products and decisions for the District's internal
Succession Planning Committee shall be incorporated into this effort.
Benefits
Implementation of this project will allow CCCSD to realize the following benefits:
• Greater retention of corporate knowledge.
• Enhanced quality of data and historical management activities.
• Smoother transition of replacement staff.
• Reduced reliance on mortal knowledge.
Outcomes
• Corporate knowledge management strategy for CCCSD.
• Business flow charts for knowledge management activities.
• Review of current IT infrastructure and future strategies relative to knowledge
management activities.
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Technical memorandum documenting the review of current information technology
infrastructure and the future knowledge management strategies.
Prerequisite Elements
• Element 2a — Asset Hierarchy and Data Standards.
• Project A — CMMS Replacement, District Project 8242(can also be concurrent).
• Project C3 — Electronic Content Management (can also be concurrent).
• Succession Planning Committee recommendations (can also be concurrent).
Relationship to Other AM Business Processes /Functions
The Knowledge Management Strategy will enhance the improved asset management
business processes and facilitate succession planning.
Element 6 — Condition Assessments
Overview
Assets can fail in one of four ways:
Physical mortality.
2. Capacity.
3. Financial efficiency.
4. Level of service.
The management strategy must reflect the imminent failure mode of an asset. For example,
condition assessment only provides necessary information for assets failing due to age
(physical mortality). Spending valuable resources to collect condition data on assets driven
by other failure modes (e.g., capacity, financial efficiency, level of service) results in
inefficient use of resources.
Understanding the condition for assets with physical mortality failure mode is critical.
Obtaining condition data is very expensive. In order to optimize the condition assessment
process, it is beneficial to have a condition assessment protocol outlining the optimal
strategy.
Condition assessment protocol identifies the purpose, methodology, and program. It
presents a multi -level approach (i.e., Level 1, Level 2, and Level 3) for assessing the
condition. At the basic level (Level 1), the goal is to identify under - performing assets that
pose the greatest threat to the organization without performing field evaluations.
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The protocol will enable CCCSD to optimize the condition assessment process using risk
and current knowledge. This project will provide an efficient, systematic, and consistent
approach toward obtaining condition assessment data. In addition, this project will identify
internal capabilities for performing condition assessments and /or predicative maintenance
and outside vendors for assessments beyond staff capabilities.
Objectives
The objectives of this element are to:
• Provide CCCSD with a framework for identifying the imminent failure mode.
• Develop a protocol for condition assessment.
• Optimize the condition assessment process.
Benefits
With the implementation of this project, CCCSD will be able to:
• Identify the imminent failure mode.
• Develop an optimized strategy for condition assessment.
• Gain sound knowledge of current asset conditions.
• Understand the timing of failure.
Outcomes
• Condition assessment protocol technical memorandum including rating scales.
• A list of assets selected for higher -level (level 2) condition assessment.
Element 6a — Failure Modes and Condition Assessment Protocol
Develop a framework for identifying the imminent failure mode. Develop a protocol for
condition assessment. Optimize the condition assessment process.
Element 6b — Condition Assessment of Pump Station / Treatment
Plant Assets
In accordance with the failure mode analysis and condition assessment protocol developed
in Element 6a, a condition assessment is recommended for pump station and treatment
plant assets. This assessment will include visual as well as testing data suitable to the
varied asset types at the pump stations. The data gathered will be geared toward
estimating the overall condition and remaining useful life of each asset. This element will
need to be repeated every three to five years. A condition assessment of treatment plant
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assets will be included in the Comprehensive Treatment Plant Master Plan, District Project
7315.
Element 6c — Condition Assessment of Critical Treatment Plant
Piping
In accordance with the failure mode analysis and condition assessment protocol developed
in Element 6a, conduct a condition assessment for critical treatment plant piping. This
assessment will include visual as well as suitable testing data. The data gathered will be
geared toward estimating the overall condition and remaining useful life of each asset. This
element will need to be repeated every five to ten years.
Element 6d — Consolidate CCTV Databases
Consolidate existing CCTV databases into a single data resource to support regulatory,
compliance, system operations and maintenance, customer service response, risk
management, asset management and capital improvement planning.
Element 7 — Business Risk Exposure
Overview
The management of inherent risks is increasingly viewed as an integral part of Best
Appropriate Practice in asset management.
Risk arises from the likelihood and potential consequence of asset - related events or
failures; the level of risk varies with location, capacity, age and condition of an asset. Risks
can be mitigated through appropriate and timely investment in maintenance, repairs and
renewal.
Best practice organizations prepare comprehensive risk management plans that identify
risks, identify the likelihood and potential consequence of the risk, and formulate
procedures for risk mitigation. Some organizations assess and report on risks in terms of
triple- bottom -line business principles.
Best practice organizations also develop and keep up to date a central, comprehensive
Risk Register that includes a prioritized listing of risks (and related assets) together with
planned mitigation and treatment approaches. The risk register is reviewed, monitored and
reported at least annually to senior management.
Currently, CCCSD has no organization -wide risk register or management plan that
addresses both the likelihood and consequence of failure.
To meet CCCSD operational needs, this project will provide a high level, organization -wide
risk assessment that considers both the likelihood and consequence of failure; will provide
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a high level risk framework, risk register and risk management strategies and priorities to
guide asset management in the short term.
For each asset, the project will consider the current asset condition, a decay profile, a mode
of failure, and the rehabilitation or replacement required to appropriately balance level of
service, cost, and risk.
Objectives
The objectives of this element are to:
Determine the relative risks of the plant, structures, and collection system pipes.
Develop risk -based management strategies.
Benefits
With implementation of this project, CCCSD will be able to:
Identify assets presenting the greatest risk.
Optimize resources and budget for future capital, operational, and maintenance
expenditures.
Develop a focused and optimized strategy for inspection, cleaning, and condition
assessment.
Outcomes
A high level asset risk assessment and initial risk profile for focusing efforts on the
highest risk assets first.
A detailed risk management business practice, including Risk Register, for CCCSD.
Management strategies for all high and medium risk assets.
Relationship to Other AM Business Processes /Functions
Risk is integral to most other asset management business practice and decision - making
functions. Risk is used to identify and prioritize rehabilitation and replacement projects for
capital improvement planning and maintenance management.
Element 7a — Consequence of Failure
Develop a comprehensive and integrated set of criteria for assessing and valuing the
consequences of failure for each asset. Once developed and tested for applicability,
appropriateness and accuracy, apply the criteria to each asset.
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Element 7b — Risk Assessment
Determine the relative risks of the plant, structures, and collection system pipes based on
an assessment of existing conditions, and estimations of the probabilities and
consequences of failure. Develop appropriate and cost effective risk -based management
strategies
Element 8 — Failure -Based Maintenance Strategies
Description
This work develops a set of practices to promote a maintenance culture that is based on
predicting and preventing asset failure.
The work will address key gaps for CCCSD in the areas of failure -based maintenance,
optimizing IT Tools, developing written maintenance strategies, linking performance
budgets and work planning, and implementing risk -based maintenance practices.
Objectives
To develop and implement continuous improvement processes that involves periodic re-
examination of failure histories and of the effectiveness of maintenance strategies. For
example, the role of maintenance planners could be expanded to include the periodic
evaluation and updating of maintenance practices and strategies.
Benefits
Develop maintenance budgets and work practices that are based on optimal
strategies.
Outcomes
• Staff training on failure -based maintenance.
• A written business process for failure -based maintenance that reflects Best
Appropriate Practice in asset management.
• A failure -based assessment of all CCCSD assets in the asset register.
A documented process for continuous improvement in failure -based maintenance.
Prerequisite Elements
Part of Element 1 — AM vision, mission and objectives; the AM Policy.
Element 2a — Asset Hierarchy and Data Standards.
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Element 3 — RCM Pilot Program.
Element 6a — Failure Modes and Condition Assessment Protocol.
Relationship to Other AM Business Processes /Functions
Failure -based management informs and is informed by data in the Asset Register.
Budgets for asset management can be optimized using information from failure -
based management.
Element 9 — Asset Valuations
Overview
Asset valuations are an integral part of asset management. The valuation process provides
the organization with necessary asset knowledge to make sound managerial decisions and
to prepare for regulatory and funding requirements.
Apart from being a sound financial practice, asset valuation is a valuable management tool.
It assists in determining future budgets and allocating costs, and provides measurements
for performance.
Objectives
The objective of this project is to:
• Provide CCCSD with a higher -level system valuation.
• Replacement cost of all MMIs in the asset register will be determined based on the
information made available.
• Replacement costs will be determined based on current year dollars, current and
historical cost data provided by CCCSD, and the consultant's asset replacement cost
database.
• General cost tables or curves will be developed for each major asset class and will be
used to represent the replacement cost for all assets belonging to the relevant asset
class.
Benefits
A consistent basis for valuing CCCSD assets.
A viable comparator to depreciated historical cost for identifying the organization's
"worth."
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More robust information for conducting optimized renewal decision making.
A more reliable basis for projecting funding needs, including multi -year capital cash
flows for renewal and upgrading.
Outcomes
• A documented business process for asset valuation according to Best Appropriate
Practice.
• Orientation training on the business process for CCCSD staff.
• Initial cost tables /curves for determining asset replacement cost plus a recommended
process for continuously improving the cost information.
• An initial valuation of all CCCSD assets at the MMI and aggregate levels.
• A report on the results of the asset valuation efforts including lessons learned and
suggestions for improvement.
Relationship to Other AM Business Processes /Functions
The CIP Process is informed by (for example) the asset register, condition assessments,
replacement valuations, levels of service, risk assessments, and optimized maintenance.
Element 10 — Program and Project Management Standards
Overview
Developing processes and practices using a standardized application, such as Microsoft
Project, establishes consistent program and project management practices.
Objectives
The objective is to improve CCCSD's ability to manage projects effectively and efficiently.
The standards should be prepared to provide staff with the appropriate tools and
techniques to manage projects while also developing consistency and rigor in approach
across the organization.
Benefits
Enhanced CCCSD project and program management to assist managers and staff to
link asset management through the capital investment processes.
Outcomes
Suggested processes and practices to assist in the improvement of CCCSD's project
management.
January 2015 — DRAFT B -16
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• Provide a documented process that is:
— Practical.
— Efficient — all processes MUST add value.
— Auditable.
— Concise and clear.
— Flexible enough for small & large projects.
• Training of CCCSD's staff in project management practices.
Relationship to Other AM Business Processes /Functions
The Program and Project Management Processes informs:
• Finance.
• The asset register.
• Condition assessment baselines.
• Asset valuations.
• Levels of service.
• Risk assessments.
• Optimized maintenance.
Element 11 — Asset Commissioning and Handover
Overview
It is vital that an organization does not allow assets to be created without all the necessary
logistics and support systems in place.
Asset data and knowledge should be handed over into information and knowledge
management systems.
All data and knowledge should be logged in accordance with the organization's data
standards and data flow / roles and responsibilities.
The key issues covered in commissioning are:
• Acceptance testing.
• Modification of the operational performance targets and reporting arrangements.
January 2015 — DRAFT B -17
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• Incorporate these in the data warehouse and reporting systems.
• Modify KPIs where necessary.
• The key issues in handover include:
Logistics:
— Spare parts inventory optimized to suit the supply chain issues.
— Service materials as required by the asset.
• Support systems including:
— Complete asset register and populate in accordance with policy / standards.
— Complete the necessary asset valuations and component break up in
accordance with the asset accounting standards including:
Add "as built" networked assets data into the GIS (or plans if not
available).
Complete 'as built' AutoCAD drawings for all structures and facility assets
and link to Asset Register.
Load the proposed maintenance plan and strategy into the CMMS,
including the resource management aspects and budgets.
Set up full operating budgets and resource management allocations.
Store all Operations & Maintenance Manuals items into an electronic
content management system.
Set up the necessary asset performance monitoring and reporting
systems.
Complete Emergency Response Plans where necessary and
economically viable.
Make the necessary entries into the organizations asset management
plans.
Objectives
The objectives of the Commissioning and Handover Process are to:
• Ensure assets are handed over in a "fit for purpose" state reducing costly rework and
a smooth transition from project to Operations & Maintenance.
• Ensure commissioning and handover are in accordance with CCCSD's requirements
and with sound engineering and construction practice.
January 2015 — DRAFT B -18
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Identify stakeholders in commissioning and handover and increase awareness of
communication requirements.
Benefits
• Reduces risk to all parties by requiring major decisions to be made as early as
possible and by facilitating the making and approval of such decisions.
• Reduces conflict by identifying and highlighting commissioning requirements to all
parties concerned.
• Minimizes the overall time required for commissioning and handover by clarifying
requirements as early as possible in the project.
• Ensures that projects employ common methods of commissioning and handover that
facilitates a complete understanding by CCCSD's staff.
• Ensures that all As -Built drawings, test and inspection certificates, checklist, reports,
and other document requirements are adequately planned and collated for ease of
use in commissioning and handover.
Outcomes
To provide new assets that perform as intended in a smooth and seamless transfer from
the project to Operations & Maintenance.
Prerequisite Elements
Project C3 — Electronic Content Management System.
Element 12 — Strategic Forecasting
Overview
Strategic forecasting will use asset condition and risk to project long -term rehabilitation and
replacement funding needs for CCCSD.
Objectives
The objective is to develop long -range strategic forecasts of system demand, system
capacity, and investments in system operations and capital to meet acceptable levels of
service. Develop a list of assets and projects, and associated costs, that are needed in the
long -term (over the next 20 -30 years) that includes not only replacements and repairs due
to aging infrastructure, but also new processes and equipment to accommodate planned
January 2015 — DRAFT B -19
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capacity increases, to improve energy /sustainability, and to meet anticipated regulatory
requirements.
Benefits
• Anticipate long -term funding and revenue sources to smooth rate increases.
• Increase confidence level of long -term projections.
• Ability to consider the financial impact of these projects on financing and budgeting
options.
• Responsibly inform the Board of Directors consider the financial impact of these
projects on District financing and budgeting options.
Outcomes
• Document the "basis of costs" describing the procedure, accuracy, and cost index
basis for the preparation of the planning -level costs.
• Develop planning -level project costs that include construction costs, and all "soft"
costs (i.e., planning, CEQA, piloting, design, construction, and commissioning)
required to deliver a complete project.
• Develop a CIP Expenditure Schedule that includes:
— Project Name.
— Project Start.
— Project Finish.
— Linkages to Other Projects.
— Annual Project Expenditures (by year).
Prerequisite Elements
• Element 1 — AM Organization, Policies and key Strategies.
• Element 2 — Asset Register.
• Element 6 — Condition Assessments.
• Element 7 — Business Risk Exposure.
• Element 9 — Asset Valuation.
January 2015 — DRAFT B -20
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Element 13 — Capital Improvement Program Business Case
Evaluations
Overview
This project defines a more structured, consistent business case methodology, with related
templates and case examples, for identifying and evaluating capital expenditures.
The methodology will:
• Consider levels of service, risks and costs.
• Use full life -cycle costs including costs for capital and operations and maintenance.
• Provide a consistent basis for setting expenditure priorities.
• Involve evaluation of multiple options to address the identified need (the problem
definition).
• Provide guidance on the scope of assessment for differing levels of investments —
e.g., for projects <$100,000, $100,000 - $500,000, and >$500,000 benefits.
• More rigorous, standardized, and consistent CIP validation processes.
• Improved ability to rank and prioritize projects, with justified timing and expenditure on
projects.
• Greater understanding of risk, allowing the organization to defer those projects with
acceptable risk levels.
• Higher confidence / justification in project validity allowing better funding mechanisms
for bond / funding approvals.
• A more logical and justified budget setting process.
Objectives
To develop a suitable CIP validation policy, framework and methodology for CCCSD that is
documented in user manual format. The methodology would include:
• Assessment of confidence level ratings.
• Business risk exposure.
• Life cycle cost analysis.
• Options evaluation.
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• Business case evaluation.
• Project ranking and prioritization.
Benefits
• More rigorous, standardized, and consistent processes validating and setting
priorities for capital investments.
• Greater confidence in the costs and benefits of an investment.
• A more comprehensive basis for project implementation (pre- design, design and
commissioning) and for comparing expectations with actual results.
Outcomes
• CIP validation methodology.
• A number of tools including:
— Confidence Level Rating tool.
— BRE tool.
• CIP validation training workshops.
• An improved Business Casing methodology with related user manual.
• Case study examples for CCCSD projects.
Prerequisite Elements
• Part of Element 1 — AM policy, vision, mission and objectives.
• Element 7 — Business Risk.
• Element 9 — Valuation.
Relationship to Other AM Business Processes /Functions
The CIP Validation Process informs and is informed by (for example) the asset register,
condition assessments, replacement valuations, levels of service, risk assessments, and
optimized maintenance.
January 2015 — DRAFT B -22
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Element 14 — Update the Asset Management Plan
Overview
An AMP is a consolidation of information currently available for infrastructure assets and
service delivery programs. This long -range planning document is used to provide a rational
framework for:
• Identifying the assets owned and managed.
• Defining current and proposed levels of service.
• Forecasting future financial commitments required.
• Analyzing the BRE.
• Linking between business objectives and service levels.
An updated AMP will assist CCCSD in developing a strategic plan for future actions. By
implementing core asset management processes, CCCSD gains knowledge of the assets
owned, the remaining useful life to manage, the amount of investment required, and the
business risk it faces. An AMP will provide CCCSD with information required to make the
right decision, at the right time, at the right cost, for the right reason.
Objectives
The objective of this project is to:
• Update the AMP for CCCSD. The project will develop an updated AMP using
CCCSD's best available information.
The AMP will:
• Cover all assets, and the findings will specify which assets to assess in more detail in
future AM Ps.
Benefits
• Improve CCCSD' knowledge of its assets.
• Improve understanding of the relative risks of all the assets.
• Develop a more rigorous knowledge of future asset rehabilitation and replacement
needs.
• Document the existing information /knowledge available on the assets.
• Improved confidence in the status of assets and resulting funding requirements.
January 2015 — DRAFT B -23
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• Improved confidence and transparency in establishing the selected balance between
service level, cost and risk.
• Improved confidence that sufficient capital is being invested in the assets to optimize
performance / Implementation.
Outcomes
• Improved confidence in the status of assets and resulting funding requirements.
• Improved confidence and transparency in establishing the selected balance between
service level, cost and risk.
• Improved confidence that sufficient capital is being invested in the assets to optimize
performance / Implementation.
Prerequisite Elements
• Elements 1 — 13.
• Projects A, B, C, C2, C3 (can be concurrent).
January 2015 — DRAFT B -24
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