The citywide asset management program was established in 2014 to establish a data-based, transparent and repeatable decision-making process to reduce business risk exposures and make good business decisions concerning the City’s infrastructure and resources. The program is designed to manage assets through their life by using approaches that are proactive and sustainable for the purpose of maximizing the value of its investment to meet the expected service levels at the lowest life-cycle cost and at an acceptable level of risk. This program ensures that the City develop long-term strategies through effective planning, design, continues optimization of operations and maintenance, and through incorporation of appropriate rehabilitation, replacement, repair and asset disposal.
Staff completed the water main asset management plan in 2017 and have utilized the financial model over the past fiscal years for water line CIP planning. In 2018, staff completed the lift stations asset management plan, and started on the asset management plans for wastewater treatment plants and the groundwater storage tanks. Staff is currently working with consultants to finalize the risk methodologies for these two projects.
The City owns and operates various groundwater plants and wells that serve residents and businesses. As like any other asset, their condition is deteriorating due to aging and other factors. Renewing and replacing the City’s groundwater plants and wells is an ongoing program. It is important for the City to understand how to maximize funding for operational and maintenance to maintain the expected levels of service (LOS).
This Groundwater Plant Assessment project is part of the City’s commitment to developing and implementing its Asset Management Program. This project consists of developing a Risk and Financial Model, that will assist the City in forecasting the groundwater plants in need of replacement/rehabilitation. The Consultant will perform a condition and performance assessment on all 12 groundwater plants and 23 wells to collect the necessary data required to populate and run the risk and financial model.
This model is a risk-based, life-cycle cost model that will apply service levels, consequence of failure, condition and replacement cost criteria in conjunction with budget alternatives to plan for replacement/rehabilitation of groundwater plants for short and long term funding considerations.
KPMG was selected in accordance with City policy PU-109, Procurement of Professional Services and Consulting. The fee was negotiated through a level of effort with KPMG and Engineering staff. The scope of work for this project includes the following services:
- Establishing Risk Methodology
- Performing condition and performance assessment
- Delivering the risk and financial model, results and staff training
Funding for the NCIP009 project is available within FY19 Public Works operating budget. The anticipated completion date for this asset management plan will be in Spring/Summer of 2020. At this future date, staff will have all of Utility asset system completed. However, it is important to note that the completion of all of Utility asset system does not mean that all individual Utility assets are assessed. Staff will work alongside with the consultant and shadow all assessments to ensure future assessments are repeatable in house for assets that have not been assessed as well as continue to evaluate and make improvement on an as needed basis.
The Engineering Department and Public Works Department recommend that the City Council authorize a professional services contract with available funding from FY19 Public Works operational budget in the amount of $369,963.00 with KPMG LLP for the Groundwater Plant Assessment Project, NCIP009.