ATTACHMENT B - STRATEGIC ASSET MANAGEMENT PLAN.pdf

Hazen and Sawyer • 155 East Boardwalk Drive, Suite 300 Fort Collins, CO 80525

Selections from One Water SAMP

Selections from the One Water Strategic Asset Management Plan The Strategic Asset Management Plan (SAMP) is the foundation of One Water’s maturing Asset Management Program. Formalization of the asset management strategy in a written SAMP is a transformative accomplishment for One Water, building on 15 years of work, while adapting to current vision and industry best practice. It defines the people, processes, and tools necessary to ensure that One Water continues to provide reliable, safe, high-quality, and cost-effective service to customers.

Table of Contents

1. Asset Register

1.1 Business Critical Attributes

1.2 Asset Hierarchy

1.3 One Water’s Asset Hierarchy

1.4 Asset Naming Convention

1.5 Commissioning of Physical and Digital Assets

2. Risk

2.1 Overview

2.2 Application

2.3 Consequence of Failure Framework

2.4 Likelihood of Failure Framework

2.5 Quantification of Risk

3. Capital Improvement Planning

3.1 CIP Planning Process

3.2 Identification of Needs

3.3 Prioritization Approach

ATTACHMENT B

June 9, 2025

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1. Asset Register

A complete and accurate asset register gives utility managers an understanding of the system, assets within it, and their associated attributes. Having a centralized inventory of record serves as the basis for managing core and operational data. Additional sets of related information such as condition scores, inspection data, operating status, and work order history are linked to the asset inventory to create the asset register.

One Water’s asset register for vertical and linear assets is contained in the EAM (Maximo) and GIS, respectively.

1.1 Business Critical Attributes

Business critical attributes are assigned to every asset. These attributes provide important information at the asset level that can be leveraged during asset management decision making.

Data Type Attributes Data Type Attributes

Identification ID Name Description Location Owner GPS Coordinates (X, Y, and Z*)

Lifecycle Information Estimated Useful Life Remaining Useful Life

General Operating Status Install Date Warranty Period Warranty Start Date Maintained By Failure Mode

Financial Capital Funding Source Original Cost Replacement Cost Lifecycle Cost

Reference Information Drawing Number Sheet Number General Comments

Safety Lock Out – Tag Out Right-of-Way Flag Confined Space (Y/N)

Physical Attribution Varies by Asset Class, but may include:

Nameplate Data Material Size Capacity

Risk Information LOF Score COF Score Risk Score

Operating Attribution Utilization (Hours, Mileage) Maintenance Rehab Type Rehab History

*New assets only beginning 2Q, 2025

1.2 Asset Hierarchy

An asset hierarchy provides a structured framework for organizing an asset inventory within an asset register. The hierarchy provides a structured relationship among assets, which allows One Water staff to efficiently access asset information to support decision-making and optimize efficiencies in work management activities. Asset information can be queried and managed at any level desired by the user.

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Having a well-defined hierarchy provides the following benefits:

Ability to aggregate and summarize costs to determine the full cost of ownership at multiple levels, including asset, sub-process, process, location, and system levels.

Ability to assess the impact of an asset failure and asset risk on related assets.

Improved reporting capabilities (e.g., financial, performance, work order management).

Improved decision making with the ability to filter down to analyze assets as individuals, groups or an entire process area or location.

Consistency in identifying assets and tracking work completed against those assets.

Ability to provide a consistent protocol for contractors / engineers supplying asset data to be entered into the asset management system to be tracked.

1.3 One Water’s Asset Hierarchy

Level Name Description/Example

1 Organization One Water

2 Division Water Production, Water Reclamation and Biosolids, Water Field Operations

3 Facility/Service WTF, SOS, Drake WRF, Water Distribution

4 Process/System Filtration, Reservoir, Headworks, Foothills Pressure Zone, Basin #

5 Subsystem Filter #, Pipe train #, Michigan Ditch, Transmission, Collector

6 Class Pump, motor, valve, well, meter, manhole, catch basin

7 Asset Unique Asset ID

1.4 Asset Naming Convention

Establishing an asset naming and numbering convention assures consistent application across the organization and supports data querying and work management activities. Effective naming and numbering conventions concisely indicate the location, class, function, sequencing, and asset-specific numbering. The outcome of this convention is a unique identifier for all assets.

The convention adopted by One Water is based on the hierarchy. Each hierarchical level represents a string in the naming convention. Tags and codes for process, subsystem, class, and unique ID are based on established standards and protocols and will be documented in an organization-wide data dictionary.

Example 1 – Butterfly Valve on Filter #1 at the WTF

Div Fac Process Subsystem Type Asset ID or SCADA Tag

WP WTF FLT 1 BFV 1

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Example 2 – Air Relief Valve on Piping in the High-Pressure Zone

Div Fac Process Subsystem Type Asset ID or SCADA Tag

WFO DST HPZ Tran ARV 1

1.5 Commissioning of Physical and Digital Assets

Asset onboarding and commissioning standards and workflows ensure the seamless integration of new assets into One Water’s asset management enterprise systems. The focus of this process is bringing the digital representation of new physical assets into Maximo and GIS. The process outlines the timing, responsibilities, and data for the onboarding and commissioning workflow.

Critical tasks associated with asset onboarding and commissioning include:

Development of the new asset inventory during the design and construction phase.

Assigning business critical attributes.

Applying asset naming convention.

Updating asset version when replacing an existing asset.

Linking critical operating information.

Once the database is complete, internal workflows will need to be established to manage migration of this data into Maximo. In addition to the physical, operating, and asset management data listed above, the preventative maintenance scheduled will also need to be created at the time of migration. At a minimum, the PM schedule must include all equipment manufacturer recommendations to ensure compliance with warranty terms.

All new assets should be assigned an appropriate lifecycle strategy and estimated useful life (EUL) based on the asset type. This information should be contained within an asset inventory provided by the project designer. Project Managers within the Engineering Project Management team should be coordinating with the Asset Manager, O&M, and Planner/Schedulers teams to assign appropriate values for lifecycle strategy and EUL.

New assets are initially entered into GIS or the CMMS (Maximo) during the design and construction phase.

Data associated with new asset entry includes asset name, description, RUL, attributes, cost, lifecycle strategy, and operating requirements. During the construction phase, vendor-provided preventative maintenance schedules should be added to the CMMS to facilitate transition into the operations and maintenance phase. Vendor-provided PMs are critical to ensure that all warranty requirements are met. Any training videos, operating instructions and SOPs specific to One Water should also be incorporated in the registry.

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2. Risk

2.1 Overview

The application of risk to drive organizational decision-making is a fundamental element of effective utility and asset management. The quantification of asset, and system-level risk provides a systematic approach for prioritizing asset maintenance and renewal activities. Implementing a consistent approach for quantifying risk supports data-driven and defensible approach for asset renewal planning.

The process for quantifying and managing risk is performed by One Water’s asset management leadership team and is supported through a collective effort of operations, maintenance, and engineering staff.

Individuals within those divisions are responsible for providing key data inputs to the risk calculation through internal and external performance tracking, inspection, and condition assessment.

Asset risk is quantified at the asset level through the product of an asset’s likelihood of failure (LOF) and Consequence of Failure (COF), where LOF and COF are defined as follows.

2.2 Application

The output of the risk analysis is used to drive asset decision-making through an asset’s lifecycle, which may include enhanced maintenance and performance monitoring activities while an asset is in operation and prioritizing rehabilitation and replacement when an asset is near end of useful life. The key inputs and outputs to the analysis are shown in the figure below. LOF inputs change over an asset’s lifecycle as it ages and degrades over time. COF typically stays fixed over an asset’s lifecycle, unless substantive changes are made to the operating environment of the asset. The calculated risk value based on those inputs provides a mechanism to quantify overall risk levels and drive decision-making based on where that asset resides within its risk matrix.

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Risk Level Risk Score

High 16 and Above

Medium 9 to 16

Low Less than 9

The COF and LOF Frameworks that follow are asset agnostic and will be tailored to specific asset classes when developing the respective TAMPs.

2.3 Consequence of Failure Framework

COF quantifies the economic, social, and environmental impacts of an asset failure. Unlike LOF, which is dynamic and changes over time, COF typically remains constant over the asset’s lifecycle. COF only changes when a substantive change regulatory requires, system capacity needs, or redundancy.

COF only changes when there is a substantive change to regulatory requirements, system capacity needs, or redundancy.

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COF Score

1 2 3 4 5

Negligible Low Moderate High Extremely High

Quality and Public Health

No impact to public health.

Failure will not cause regulatory/permit violation.

Minor impact to public health.

Failure will cause minor regulatory/permit violation moderate impact to public health.

Failure will cause moderate regulatory/permit violation.

Major impact to public health.

Failure will cause major regulatory/permit violation.

Extreme and widespread impact to public health.

Failure will cause serious regulatory/permit violation.

Facility Performance and Service Delivery

Negligible impact to system capacity or uptime

No direct impact to system capacity but requires extensive maintenance resources to keep system operable

Immediate impact to system capacity.

Uptime reduction of over one week.

Redundancy

Asset has full redundancy during peak demands

Partial redundancy during peak demands

No redundancy

Financial Impact

<$25,000 financial impact of failure

$25,000 to $50,000 financial impact of failure

$50,000 to $100,000 financial impact of failure

$100,000 to $250,000 financial impact of failure

>$250,000 financial impact of failure

Proximity to Environmentally Sensitive Areas, Critical Customers, or Critical Infrastructure

Little to no impact to environment, critical customers, or critical infrastructure

Short-term, localized, and minor impacts to environment, critical customers, or critical infrastructure

Moderate impacts to localized environment, critical customers, and critical infrastructure

Within 500-feet of environmentally sensitive areas.

Widespread moderate impacts to customers and critical infrastructure

Within 100-feet of environmentally sensitive area.

Widespread and major impact to customers and critical infrastructure

Public and Employee Safety

No injuries or adverse health effects First aide may be required No lost time

Medical attention likely required Potential for lost time

Loss of life or widespread outbreak of illness or permanent total disability Lost time results

2.4 Likelihood of Failure Framework

LOF is a measure of an asset’s condition and performative state and seeks to answer the questions of “What is the likelihood this asset will fail?” or “How urgent is the need to renew this asset?” LOF is a dynamic value, as it changes over an asset’s lifecycle as that asset ages and degrades. This dynamic nature stresses the importance of routine monitoring of the asset’s condition and performative state.

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LOF Score

1 2 3 4 5

Excellent Very Good Moderate Poor Very Poor

Physical Condition

Fully operable, well maintained, and consistent with current standards.

Little wear shown and no further action required.

Sound and well maintained but may be showing slight signs of early wear.

Delivering full efficiency with little or no performance deterioration. Only minor renewal or rehabilitation may be needed in the near term.

Functionally sound and acceptable and showing normal signs of wear. May have minor failures or diminished efficiency or increase in maintenance cost.

Moderate renewal or rehabilitation needed in near term.

Functions but requires a high level of maintenance to remain operational.

Shows abnormal wear and is likely to cause significant performance deterioration in the near term.

Replacement or major rehabilitation needed in the near term.

Effective life exceeded and/or excessive maintenance cost incurred. A high risk of breakdown or imminent failure with serious impact on performance. No additional life expectancy with immediate replacement needed.

Capacity

Optimal capacity to meet current and future functional requirements.

Appropriate utilization and function

Sufficient to meet current and future functional requirements.

Equipment is undersized or oversized, causing O&M issues

Sufficient to meet typical needs, but does not meet functional requirements, or severely over-utilized.

Not able to handle future needs in peak situations

Achieving intended function on typical days, but does not meet functional requirements during peak events. Would not be able to handle future average or peak conditions

Does not meet its intended function or typical needs.

Would not be able to manage future requirements

Performance

Operates as designed, never has O&M issues, is reliable

Operates as designed, very infrequent / minor (bi-annually), O&M issues, has 95-99% reliable

Suitable, but not optimal operability, has infrequently (quarterly) O&M issues, 90-94% reliable

Unsuitable operability, frequent (monthly) O&M issues, 85-89% reliable

Inoperable, very frequent (weekly/daily) O&M issues, <84% reliable

2.5 Quantification of Risk

The quantification of risk is used to identify and prioritize asset interventions. The higher the risk score, the higher the priority to intervene, typically through renewal or replacement. A weighted average methodology for scoring LOF and COF is used to quantify risk. However, if any of the LOF criteria is scored a five, the asset will be given a score of five for LOF.

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3. Capital Improvement Planning

Risk analysis and quantification provides a data-driven and defensible approach to capital improvement planning and funding. It is important to note that this process allows for the prioritization of asset renewal needs only. Parallel efforts must be undertaken to prioritize renewal needs within One Water’s asset management program against other capital improvement drivers, such as regulatory changes, growth, process optimization, and sustainability.

3.1 CIP Planning Process

As discussed herein, risk is an industry standard tool for prioritizing rehabilitation and replacement needs, particularly in a resource-constrained environment such as a water utility. Risk couples the likelihood of an asset failing with the impact that failure has on One Water’s ability to perform core functions. As such, using the quantification of risk to prioritize capital expenditures is a defensible method for capital improvement planning. This method funds projects of greatest value to One Water’s mission in the early years of the CIP.

1. Identification of Asset-Level Needs. Assets with the highest risk scores are prioritized for renewal.

Lower risk assets are subject to other lifecycle management strategies.

2. Bundling Needs into Defined Projects. Looking at the full landscape of needs, combine asset-level needs into projects. The bundling of needs is typically based on geographical proximity, type of work, or funding stream.

3. Project Verification. Projects are vetted by a committee within One Water that represents a cross section of the workforce. The committee will decide whether to pursue each project in the year it is presented.

4. Funding. The evaluation of funding occurs multiple times during the CIP planning process – at the very beginning, while evaluating project feasibility, and upon compiling a draft of the full CIP. The ability to forecast future needs helps alleviate the need to cut and delay projects by having the funding available when it is needed.

5. Approval. Ultimate approval of the CIP each year.

3.2 Identification of Needs

Risk-based renewal projects are only one aspect of the full CIP; other project needs will be identified through on-going parallel efforts to the Asset Management Program, including, but not limited to, Master Planning, new/updated regulations, and strategic growth initiatives.

1. Master Planning: Usually occurs on a 5-year cycle and identifies the major capital improvement needs. This process often involves condition assessment of major assets.

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2. Asset Management Planning: holistic evaluation of portfolio risk to determine near term needs that make up a capital project.

3. Supervisor Consultation: Typically occurs annually and helps determine which assets will need to be replaced in the upcoming year. These are generally the smaller items that are covered by either the O&M or Minor Capital funds. This process will follow a risk-based replacement strategy, supported with data from Maximo.

3.3 Prioritization Approach

Within each utility service area, assets within that area will be queried and sorted by risk score. High risk assets, those with a risk score of 16 or more, will receive the highest priority for risk mitigation within the planning and budgeting cycle. Risk mitigation includes the following considerations:

Asset Replacement or Rehabilitation (Most Common)

Installation of Asset Redundancy

Enhanced Condition and Performance Monitoring

Enhanced Preventative Maintenance

Once high-risk asset are identified they will be packaged into projects. Often, economies of scale in work scope and taking advantage of plant shutdowns warrants packaging multiple assets into a CIP project. For example, a high-risk pump replacement may warrant replacement of other assets within that train, even if they are currently a lower priority.