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64 <br />WATER RATE STUDY I City of Santa Ana, CA <br />was then refined through collaboration with the City staff with system- specific familiarity, to reflect the <br />best appropriate information for use in the R &R analysis. The components of each of the asset classes <br />were presented in detail in draft form, then finailized based on discusion of the asset class details, and <br />any follow -up research on costs, types of assets and related information. Using this method, the <br />resulting class library developed for the City incorporates Black & Veatch's experiences with other <br />agencies, as well as City- specific experience with each asset class. <br />For the City's asset class library, Black & Veatch developed the following elements, which are available <br />forviewing within the Comprehensive Asset Management Prioritization System (CAMPS). <br />Expected useful lives <br />For each defined asset class, and for each specific asset where required, appropriate expected useful <br />lives were developed for these assets. Black & Veatch defines useful life as the number of years of <br />normal use that can be expected prior to replacement becoming necessary. It should be noted that <br />some assets would be expected to fail before and after the estimated useful life, however, this approach <br />provides planning level funding needs when averaged over a 5, 10, 15, or 20 year smoothing period. <br />These estimates are based on our industry experience, manufacturers' estimates, previous literature <br />research, and our work for other agencies. <br />Adjusted useful lives, based on Condition Monitoring <br />The expected useful life of the asset is an average expected life for that asset class, as described above. <br />The CAMPS database contains the functionality for the City to identify assets that are in need of <br />immediate or near -term (next 1 -2 years) replacement, by indicating a condition rating of '1' within the <br />asset registry. Similarly, CAMPS contains the functionality for Staff to indicate assets as being in very <br />good condition, using a rating of '3' within the asset registry. Presented below are examples of each of <br />these cases illustrating how users can adjust the expected useful life of a specific asset to reflect a more <br />detailed knowledge of the assets. <br />Case #1: Asset with an Assessed Condition Rating of 1 (Poor Condition) <br />A pump (associated with a pump station) was placed in service in 2002, with a class life of 30 <br />years. At the time of the analysis, 2012, the pump is 10 years old and should be expected to <br />operate effectively for another 20 years. If the pump has been assessed at a poor condition <br />(rating = 1), then an adjustment is made to indicate more urgent replacement, or analysis year+ <br />1 year. <br />Algorithm used by the CAMPS model: <br />tt If Condition Rating =1, then use current year + 1 for Replacement Year <br />Case #2: Older Asset with an Assessed Condition Rating of 3 (Excellent, or like new condition) <br />A pump was placed in service in 1987, with the same class life of 30 years. In this case, the pump <br />is 25 years old and expected to last until 2017. If the pump has been assessed at a like new <br />condition (rating = 3), then an adjustment is made to extend the life of the asset an additional <br />50% of its class life (or 15 years) to a target replacement of 2032. <br />65B -76 <br />NOVEMBER 2014 <br />