sr-092209-1f (2)City Council Meeting: September 22, 2009
Agenda Item: J~~
To: Mayor and City Council
From: Lee E. Swain, Director of Public Works
Subject: Asset Management Plan
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a contract with GHD, Inc., in the amount of $625,164 and a 10 percent
contingency of $62,516 for a total of $687,680 for professional services to prepare a
Linear Asset Management Plan (AMP) for the water and wastewater systems.
Executive Summary
Existing master plans for the water and wastewater systems were completed in 1986
and 1992, respectively. Asset management planning provides an updated
programmatic approach to ensure the long term sustainability of the water and
wastewater utility, while meeting required levels of service in the most cost effective
and efficient manner. GHD, Inc., has been selected through a competitive process to
develop a Linear Asset Management Plan. The Linear Asset Management Plan will
provide an organizational assessment, evaluate future needs of the water and
wastewater infrastructure incorporating the Sustainable City Plan and the Land Use and
Circulation Element, analyze the business risk exposure of buried infrastructure, and
develop short term and long term capital improvement and cost projections. The project
was included in the 2008 water and wastewater rate studies. Funding is available in
existing CIP accounts.
Background
Presently, capital infrastructure planning for water and wastewater relies on a water
master plan developed in 1986, a wastewater master plan prepared in 1992, and
historical information developed and collected by operations staff. Although many
enhancements in mapping, data management, and work order management have been
implemented in recent years, a clear representation of capital investment and
infrastructure repair and replacement requirements is necessary for both short term and
1
long term planning horizons. The 2008 rate studies addressed this need and funding
has been included in the Capital Improvement Programs for the purpose of developing
a programmatic approach to future water and wastewater infrastructure system
improvements through development of an Asset Management Plan (AMP).
Discussion
The AMP will ensure the long term sustainability of the water and wastewater utility,
while meeting required levels of service in the most cost effective and efficient manner.
The benefits of an asset management approach to water and wastewater systems
management include:
• Improved operations and maintenance practices
• Better knowledge of location and condition of assets
• Greater ability to plan and pay for future repairs and replacements
• Definition of capital improvement projects which meet the true needs of the
system
In the development of an asset management plan, infrastructure assets are grouped in
a hierarchy which indicates an interrelationship of similar assets. Furthermore, it is
common to group water and wastewater assets into vertical and linear assets. Vertical
assets can be defined as those features of the system such as pumps, reservoirs, wells,
and related treatment facilities which are primarily above ground. Linear assets
describe the buried facilities of the water and wastewater systems -principally the
water and wastewater mains which form the backbone of the respective utilities.
Included with linear and vertical assets are the human assets of the organization -the
operators, management personnel, and support personnel of the systems which
together serve the public interest in addressing the social, economic, and environmental
demands of serving potable drinking water and collecting wastewater.
Presently, many pipelines (linear assets) in the City's buried infrastructure are nearing
the end of their useful life, while many of the treatment facilities and other vertical assets
are in the process of renovation or replacement. Consequently, it is appropriate to
2
develop an Asset Management Plan initially for linear assets. CIP funding is available
for both linear and vertical asset management plan development.
The City's water and wastewater utilities currently maintain many facets of a working
asset management program such as GIS mapping capabilities, work order management
systems, and financial tracking and reporting systems. Additionally, interdepartmental
cooperation remains strong and is a vital component of the successful development of
the water and wastewater AMP. The City's Finance Department and Givil Engineering
Division will be important contributors to both the development and the implementation
of a successful AMP. The AMP will be completed during Fiscal Year 2009-2010, and
will address the following elements during its development: organizational
development, strategy development, evaluation of future needs, asset hierarchy,
business risk exposure, development of a capital improvement program, and
preparation of a master plan document.
The proposed cost for professional services for the development of a Linear Water and
Wastewater Asset Management Plan is $397,891 for the water system component and
$227,273 for the wastewater system component for a total of $625,164.
Consultant Selection
GHD, Inc., has been selected through a competitive process to provide professional
services to develop a Linear Asset Management Plan for the water and wastewater
utilities. GHD, Inc., is an international management consultant firm with local offices in
Irvine, California, and has extensive experience in water and wastewater asset
management, having recently completed a comprehensive asset management program
for the Orange County Sanitation District.
A request for proposals was posted on Planet Bid in Fall 2008. A total of 11 proposals
were received, and nine prospective teams were invited to make a personal
presentation before a City panel comprised of staff from the Water Resources Division,
3
Civil Engineering Division, Information Systems Department, and Finance Department.
The proposing teams were evaluated on the basis of technical competence/past
pertormance, staffing capability to meet project timeliness, quality control, and cost of
services/cost control/reporting. Numerical scores were prepared and the teams ranked
by the individual members of the evaluation panel. GHD was the top ranked firm
resulting from this process. Other firms (listed alphabetically) participating in the
evaluation process included Black and Veatch, Brown and Caldwell, Carollo Engineers,
CH2MHill, MWH, Nexgen, RMC, and Willdan.
Financial Impacts & Budget Actions
Funds for this. project are available in the following CIP accounts:
Water: $397,891 plus $39,789 10% contingency for a total of $437,680 is
available in Account P259001.589000
Wastewater: $227,273 plus $22,727 10% contingency for a total of $250,000 is
available in Account P319007.589000
Prepared by: Gil Borboa, P.E., Water Resources Manager
Approved: Forwarded to Council:
~ ~.
Lee E. Swain, Director
Department of Public Works
Ewell
aer
4