CITY COUNCIL AGENDA PACKET - Laserfiche WebLink

Page 3 of 6 Project Categorization The WSMP is being developed with a list of anticipated projects within the following categories. 1. Water Supply – Water Supply requirements generally fall within two categories, volumetric/available daily rates, and water quality. This includes the City’s recent action to proceed with developing an alternative water supply to replace the City’s PFAS contaminated sources (i.e., two new wells). 2. Distribution – Distribution system projects include system upgrades needed to improve performance to meet current City standards based on the City’s updated distribution hydraulic model. These projects mainly include pipeline replacement to address fire flow and other system deficiencies. 3. Rehabilitation and Replacement (R&R) – Based on physical assessment of the water system facilities condition, R&R projects fall into two categories, above ground facilities such as pump station and water storage tanks and below ground which are primarily pipelines renewal and replacement. There can be overlap between distribution improvements pipeline R&R; for the purpose of this analysis, priority is given to distribution pipeline needs. 4. Supervisory Control and Data Acquisition (SCADA) – The operations and management of supply and distribution on an hourly basis is controlled and monitored via the City’s SCADA system and the power supply to pumps and other equipment is managed within city-owned facilities. Improvement recommendations were developed based on a comprehensive study and involved input from City’s water O&M staff. Project Prioritization The Priority System ranks the level of importance of a project based on several factors, such as protection of health and safety and rate of return on the City’s investment. Risk of failure was assigned to each asset to help understand the criticality of the asset function to the overall system viability. A risk score was calculated based on the probability and consequences of failure scores, and the asset condition scoring is based on a 1-5 scale. Asset condition scores were developed for mechanical, electrical, and structural categories. Each facility was scored by asset type and assigned a reinvestment year. Consequences of failure score was developed based on a matrix of factors. Distribution pipelines were also evaluated based on the type of material, pipe age, criticality, and using available data and staff knowledge to the extent available. Recognizing that there are limitations in available funds and to ensure generational equity (where future generations have a legitimate expectation of equitable access to water resources) among paying customers, an additional layer of prioritizing was required to achieve more levelized annual capital spending. Only priority level A and B projects are included as funded amounts and are to be addressed within the City’s regular rate study process. To accomplish this task, CIP project prioritization was based on three categories that give some flexibility in the implementation timing of funded capital needs so as not to overburden ratepayers in any single or series of years when feasible: Priority Level A: These projects are ranked the highest if they are required for health and safety; required by law, regulation, or contract; are under construction; and/or are funded by applicants or outside funding sources. Examples of these types of projects include two new wells (as the approved water supply alternative project) and projects that increase water Page 236 of 270