Asset Management for Resiliency Presented by Heather Himmelberger, - PowerPoint PPT Presentation

Asset Management for Resiliency Presented by Heather Himmelberger, P .E. Director, Southwest Environmental Finance Center

The Southwest EFC Started in 1992

Work under contracts & agreements with federal, state, and local governments and private funders

Asset Management: At its core is a resiliency program ?

It’s most important that we do the basic functions well AM Helps us do that

Doing the basics well helps maintain resiliency to all kinds of outside stressors

Outside Stressors - Technical

How does AM help with technical resiliency?

Outside Stressors - Managerial

How does AM help with managerial resilience?

Outside Stressors - Financial

Change in Usage Patterns Financial Cancellation of Shut-Offs Impacts Unemployment Causing from Customers Inability to Pay COVID Lost Investment Income Business Closures

How does AM Help With Financial Resilience?

Valve Compliance Preventative Hydrant Repairs Exercising Sampling Maintenance Flushing Resources Daily/Weekly/ (money & Chlorine Replacement Meter Routine Monthly Residual of Assets Reading Inspections of Maintenance time) Measurement Equipment Available Capital Customer Rehabilitation Billing Improvement Operations Relations of Assets Planning Typical Situation

Valve Compliance Preventative Hydrant Repairs Exercising Sampling Maintenance Flushing Resources Daily/Weekly/ (money & Chlorine Replacement Meter Routine Monthly Residual of Assets Reading Inspections of Maintenance time) Measurement Equipment Available Capital Customer Rehabilitation Billing Improvement Operations Relations of Assets Planning So what happens?

Valve Compliance Preventative Hydrant Repairs Exercising Sampling Maintenance Flushing Resources Daily/Weekly/ (money & Chlorine Replacement Meter Routine Monthly Residual of Assets Reading Inspections of Maintenance time) Measurement Equipment Available Capital Customer Rehabilitation Billing Improvement Operations Relations of Assets Planning Financial Resiliency Comes From AM Helping You Make the Best Decisions About How To Spend Your Resources

We provide a safe, reliable, high- quality water supply with superior service and value.

Resources https://swefcamswitchboard.unm.edu/am/

https://swefc.unm.edu/home/ Resources

Resources heatherh@unm.edu

Questions or Requests for Assistance can be entered into Chat or Question Box

Becoming Resilient Through Asset Management EPA Capacity Development & Operator Certification Virtual Workshop 8/20/2020

Agenda • Overview of SJW’s Water System • Goal of Asset Management at SJW • Enterprise Risk Identification & Prioritization / AWIA • Work Activity Risk Evaluation During COVID-19 Pandemic

Overview of Water System • Established in 1866 • Provide water service to over 1 million people in the Silicon Valley and greater San Jose metropolitan area • 3 water treatment plants • 2,400 miles of pipe • 340 pumps and motors • 100 wells • 120 tanks and reservoirs • 20,000 fire hydrants • 34,000 valves • 234,000 meters and service lines

Goal of Asset Management at SJW Ass sset Management Program Goal: l: To maximize value derived from assets by optimizing the balance between Risk, Cost, and Level of Service.

Goal of Asset Management at SJW Ass sset Management Program Goal: l: To maximize value derived from assets by optimizing the balance between Risk, Cost, and Level of Service. Resilience, including Risk financial resilience, falls in the category of risk

Risk Pro robabili lity of of Con Consequence e of of x = Risk Ri Failu ilure Failu ilure 120 1,410 817 203 25 348 3,344 1,859 433 82 Probability of Failure 922 10,823 5,586 1,186 220 515 6,531 3,979 1,007 113 175 2,712 3,218 986 102 Consequence of Failure Pro robabili lity of of Con Consequence e of of Vuln lnerabili lity to to x x = Ri Risk Thre reat Occu ccurrence Thre reat Im Impact Thre reat

Types of Risk Evaluations Individual Asset Station Level Enterprise Level Risk Risk Risk In-Depth Risk Evaluation for High-Level Risk Evaluation Each Asset Considered Various Outside Threats Joint Effort Between Asset Management and Business Resiliency Depts

Criteria for High-Level Risk Evaluation Con Consequence e of of Threa eat to o th the e Asset (Co CoT) Equivalent Dollar Score Impact Level Social / Community Financial Environmental Amount Can safely operate system and provide safe water Minimal impact on business opeartions related to Low environmental impact. Impact localized, 1 Low Impact < $100,000 finance (1) , on brand, and on shareholders. service with minimal effort or coordination. not widespread. Med-Low Can safely operate system and provide safe water Noticeable but low impact on business operations related 2 Localized but moderate environmental impact < $1 M Impact service, but requires concerted effort and coordination. to finance, on brand, and on shareholders. Generally able to safely operate system and provide Moderate Moderate impact on business operations related to Moderately widespread environmental impact 3 safe water service, but requires difficult operations and < $10 M Impact finance, on brand, and on shareholders. (e.g. widespread in local creeks fishkill) puts notable strain on resources. Difficult to safely operate system and provide safe Notable impact on business operations related to finance, 4 High Impact Widespread environmental impact < $100 M water service, and high strain on resources. on brand, and on shareholders. Unable to safely operate system and provide safe Severe environmental impact (e.g. Severe impact on business operations related to finance, 5 Severe Impact water service. High chance of death or widespread uncontained wildfire to the extent of national >= $100 M on brand, and on shareholders. illness. coverage, like PG&E Camp Fire). Lik Likel elih ihood of of Threat Occu ccurrence (Lo LoT) Score Likelihood Description Notes Equivalent Likelihood Very Low Events that have never occurred in the history of 1 Unlikely for threat to occur in the next 100 years <= 0.01 Likelihood SJW, and have not come close to occurring. Low Reasonable for threat to occur in the next 100 Events that have occurred (or have come close to 2 > 0.01 Likelihood years (e.g. 1 in 100 year storm) occurring) once in the history of SJW. Moderate Reasonable for threat to occur in the next 50 Events that have occurred a few times in the history 3 > 0.02 Likelihood years of SJW. High Events that occasionally occur (typically once every 4 Most likely to occur in the next 10 years > 0.1 Likelihood 10 years). Very High Events that frequently occur (at least every few 5 Almost certain to occur in the next 5 years >= 0.2 Likelihood years).

Threat-Asset Pair Analysis (Station Level) 210 Station Level “Assets” • 31 Exemplar / Singular • 179 Non-Exemplar 840 TAPs Analy lyzed (2 (2,5 ,520 scores) • 124 Exemplar / Singular • 716 Non-Exemplar

Threat-Asset Pair Analysis (Enterprise Level) 21 Enter erprise Le Level l TAPs Analy lyzed

Threat-Asset Pairs of Highest Concern Station Le Level el TAPs Enter erprise Le Level el TAPs Contamination District Outage Power Outage Drought Groundwater Aquifer Contamination Contamination Pandemic District Outage - Santa Teresa WTP Fuel Shortage Earthquake District Outage - Rinconada WTP Cyber Attack - Asset Data Earthquake Wildland Fire Drought Wildland Fire Pandemic Fuel Shortage IT Sys Damage Earthquake - Distribution Mains Cyber Attacks District Outage - All WTPs Cyber Attack - Budgeting Data Wildland Fire - Widespread IT Systems Physical Damage Cyber Attack - SCADA Cyber Attack - Customer Data Cyber Attack - Employee Data Cyber Attack - Billing/Meter Data Cyber Attack - Accounting Data 0 5 10 15 20 25

Work Activity During COVID-19 Pandemic • Halted majority of field activity in March due to COVID-19; all office staff worked from home • Only mission-essential field activity resumed with changes to procedures to ensure safety of employees and the public • Needed a systematic and defensible way to resume work activities • Health & Safety department led a collaborative, enterprise-wide work activity risk evaluation effort • Risk evaluation framework was aligned with the asset management risk framework

Brief Overview of Activity Risk Evaluation • Work activity risk assessments were conducted for all work functions • Job Hazards Analyses conducted for work activities • Triple bottom line considerations • Risks evaluated: • Not To Do • To Do – Inherent • To Do - Residual

Brief Overview of Activity Risk Evaluation • Activities with high “Not To Do” Risk were considered first • Activities with low enough Residual Risk were implemented after approved by Threat Leveling Management Team • Activities re-evaluated on a weekly basis