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26 <br />Figure - 3: Age of Pipe at Time of Break by Material <br />• <br />10 <br />io <br />`0 8 <br />d <br />E <br />E 6 <br />z <br />4 <br />2 <br />0 <br />WATER RATE STUDY I City of Santa Ana, CA <br />MAC MCI MCMLC MCYL ■DI aPVC <br />n °m m °m Z <br />AC= Asbestos Concrete CYL = Pre-stressed Concrete STL — Steel <br />Cl = Cast Iron DI = Ductile Iron UNK = Unknown <br />CIVIC = Cement Mortar -Lined & Coated Steel PVC = Poly Vinyl Chloride <br />In the next part of the work, Black & Veatch conducted further analyses to refine the conclusions <br />reached above and incorporated asset management methodologies to develop the suggested R &R <br />Program. <br />Refinement of Asset Evaluation <br />The methodologies employed in developing asset management programs all revolve around managing <br />risks. For example, while a Pipe "X" may have a high probability of failure, the impact of its failure (the <br />consequence) is very low. So, from a risk perspective, would it be better to let Pipe "X" fail, or should <br />you just go ahead and spend the money to repair it? Implementing a robust asset management system <br />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 and workshop results, Black & Veatch determined the Probability of Failure (PoF) and <br />the Consequence of Failure (CoF). The product of the PoF and the CoF results in the Business Risk <br />Exposure (BRE) —the higher the BRE score, the higher the likelihood that the asset requires attention. <br />Without detailed condition assessment information, Black & Veatch cannot quantify the absolute risk of <br />failure; instead, the analysis conducted herein provides a picture of the relative risk of failure. In other <br />words, the analysis indicates which assets are more likely to fail in relation to other system assets. On its <br />own, the BRE score is not sufficient to develop a Capital Improvement Program (CIP). Consequently, <br />Black & Veatch developed R &R strategies reflecting how public agencies tend to conduct work — <br />M \, • <br />NOVEMBER 2014 <br />