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65B - PROPOSED WATER AND SEWER RATE ADJ
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65B - PROPOSED WATER AND SEWER RATE ADJ
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Last modified
12/1/2014 8:46:02 AM
Creation date
11/26/2014 3:35:13 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Public Works
Item #
65B
Date
12/2/2014
Destruction Year
2019
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City of Santa Ana, CAI Tii TC4'i <br />Development of the R &R Program <br />The analyses conducted above provide the City with good information on how to clean and maintain its <br />system. However, it does not create an R &R program. The methodologies employed in developing asset <br />management programs all revolve around managing risks. For example, while a Pipe "X" may have a <br />high probability of failure, the impact of its failure (the consequence) is very low. So, from a risk <br />perspective, would it be better to let Pipe "X" fail, or should you just go ahead and spend the money to <br />repair it? Implementing a robust asset management system can help answer these types of questions. <br />The City is starting to develop its own asset management system and as a first step, Black & Veatch <br />conducted a number of meetings to help assess the City's perspective on risk and failure. Combining the <br />condition reports prepared by an outside vendor and workshop results, Black & Veatch determined the <br />Probability of Failure (PoF) and the Consequence of Failure (CoF). The product of the PoF and the CoF <br />results in the Business Risk Exposure (BRE) — the higher the BRE score, the higher the likelihood that the <br />asset requires attention. <br />Black & Veatch cannot quantify the absolute risk of failure; instead, the analysis conducted herein <br />provides a picture of the relative risk of failure. In other words, the analysis indicates which assets are <br />more likely to fail in relation to other system assets. On its own, the BRE score is not sufficient to <br />develop CIP. Consequently, Black & Veatch developed R &R strategies reflecting how public agencies <br />tend to conduct work — grouping projects by area. Based on criticality criteria (PoF and CoF), Black & <br />Veatch developed a list of projects to address immediate system needs over the next 5 years. <br />As shown in Figure 4 and explained in more detail in Appendices A through D, the City's sewer system <br />has no extremely critical condition (red zone — highest risk of failure) lines. There is 0.1 miles ($0.1 <br />million) in highly critical condition (gold zone), 3.8 miles ($3.7 million) that are critical (yellow zone), and <br />another 3.8 miles ($4.1 million) in danger of imminent failure (green zone). <br />BLACK & VEATCH I Sewer Rate Study <br />[INTENTIONALLY LEFT BLANK] <br />65B -188 <br />29 <br />
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