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W ater Utility M a n a g e m e n t
n the 21st century, water util-
ity management professionals for
strive to implement asset management
programs in order to better manage
their aging wet infrastructure.
In 2012, a Black and Veatch survey1
on the US water industry found that
the top asset management issues were
all financially driven, namely address-
ing aging water and sewer infrastruc-
ture, managing capital costs, funding or
availability of capital, and energy costs.
In 2013, a McGraw Hill Construction
study, conducted in partnership with
CH2M Hill,2 confirmed that 75% of
utilities implementing asset manage-
ment programs did so because of their
concerns with aging infrastructure.
Major studies from the US Mayor’s
Water Council,3 the USEPA,4 the Con-
gressional Budget Office,5 US Govern-
ment Accountability Office,6 the Ameri-
can Water Works Association7and others
all conclude that the costs associated with
US water and sewer infrastructure — for
both replacement of aging systems and
for new development driven by growth
— is financially overwhelming, ranging
from $1 trillion to $4 trillion over the
next couple of decades.
The financial challenges faced by util-
ity, asset and financial managers have
intensified with the downturn of the
world economy, tapped out rate pay-
ers, unstable credit markets, wide-scale
downgrades and paralyzed project- and
rate-approving authorities. Some con-
sulting firms are responding by offering
financial services. For example, MWH
Global is an early adopter of wet infra-
Asset Management
Using Alternative Materials to Address Replacement
Cost and Maintenance Concerns
BY GREGORY M. BAIRD
I both water and sewer systems
structure asset management practices
worldwide. With its acquisition of Step-
wise Utility Advisors in 2012, it has
added the additional facet of providing
financial and risk services to support
infrastructure funding options and im-
proved investment decision making.
Regardless of basic funding sources,
existing rate charges for replacement
projects, and developer fees for new
growth projects, the primary goal is fig-
uring out how to manage and reduce
the costs of the infrastructure through
its entire asset life. As a result, traditional
paradigmsare giving way to new tech-
nologies, products, and methodologies.
According to the USEPA, nearly 60%
of the total pricetag lies with the un-
derground infrastructure. Many utilities
understand this reality, which has driven
wide acceptance of and advances in leak
detection, condition assessmentand
infrastructure replacement planning ef-
forts. A key assetmanagement trend has
emerged: new options in materialselec-
tion and project deliveryalternatives.
These critical options offer change,
which can be hard for a utility to ac-
cept. The benefit, however, is less main-
tenance and more cost savings, which
In the area of underground water and sewer pipes, a wide variety of pipe materials (such as
PVC shown here) can now be used to help address cost concerns.
Photo courtesy of Geneva Polymer
®
W ater Utility M a n a g e m e n t
ultimately protects the financial stability
of the organization and its staff.
ALTERNATIVE PIPE MATERIALS
Change hasspurred increasedcom-
petition and innovation, which contin-
ues to help reduce costs for the utility
and its ratepayers.In the areaof un-
derground water and sewer pipes, for
example, a wide variety of pipe mate-
rials can now be used to help address
cost concerns. In fact, the current cost
paradigm shift in pipe design applica-
tions has created a veritable “pipe war”
asproduct linesbattle for marketshare.
Modern hydraulicmodeling software
and improved water pressure operational
knowledge has expanded the use of alter-
native pipe materials over the traditional
ductile-iron-only option. For instance,
utilities are realizing a cost savings of
30%to 70%8in material costs by install-
ing PVC in residentialareas.In fact,
home builder associations are beginning
to urge municipalities to allow PVC to
be installed in larger diameters in order
to reduce the cost of newdevelopment.
While PVC and ductile iron are the
most prominent types of pipe materi-
als currentlybeing installed in water
distribution systems,there areother
materials, like polyethylene and PVCO,
each with unique characteristics for use
in various conditions in water, sewer,
storm and reuse applications. This of-
fers a significant potential benefit to
utilities if open procurement practices
are updated so the utility can employ
the use of different pipe materials suit-
able for various types of projects.
KEY CONSIDERATIONS
When selecting a pipe material, key
considerations include trench conditions,
corrosion, temperature, safety require-
ments, and cost. Pipes are approved and
tested by the American Society of Test-
ing Materials (ASTM) and the Ameri-
can Water Works Association (AWWA),
and many have the presence of the NSF
designation on the pipe indicating that
it was tested for compliance with one or
more voluntary national standards and
undergoes continual rigorous testing.
Needless to say, these pipes are safe for
their intended purpose. Likewise, these
various pipes have been tested and dem-
onstrate expected useful lives at over
100 years if properly installed.
Comprehensive studies on pipe per-
formance, such as the “2012 US and
Canada Water Main Break Study” by
the Buried Infrastructure Laboratory
of Utah State University,9 continue to
help provide additional assistance on
pipe evaluation and selection. While
this study finds PVC to have the fewest
main breaks, it is interesting to note one
critical finding: the Canadian experience
with PVC failures per 100 kilometers is
nearly 76% below U.S. figures through
proper inspection and installation.
Proper pipe knowledge, installation
and inspections protect the public invest-
ment and avoid unnecessary and prema-
ture failures. No pipe material, however,
is exempt from failure in the absence
of proper design followed by adequate
inspection. A poorly informed inspec-
tor, or one who has not been properly
trained in the manufacture, inspection,
handling, installation and testing of the
type of pipe he or she is hired to inspect,
is often worse than no inspection at all.
CONTROLLING CORROSION
The two major C’s — cost and cor-
rosion — are predominant topics of dis-
cussion when it comes to underground
infrastructure. Corrosion, not necessarily
age, has frequently been the main culprit
in iron pipe failures. In a 2004 report,
corrosion experts NACE International
found that the cost of corrosion in the
US for all major infrastructure sectors is
$276 billion — or 3.1% of the GDP. The
direct costs of corrosion include:
• Cost of labor attributed to corrosion
management activities
• Cost of equipment related to corro-
sion activities
• Loss of revenue due to disruption in
supply or service
• Cost of reliability
• Cost of lost capital due to corrosion
deterioration
The cost of corrosion in drinking wa-
ter and sewer systems alone was statedin
2004 as $36 billion and has increased by
some estimates to as much as $50 bil-
lion. Corrosion prevention methods
and servicesinclude protective coating,
corrosion-resistantalloys, corrosion in-
hibitors, engineered plastics and poly-
mers, cathodic and anodic protection,
and corrosion control services. NACE’s
goal is to increase the awarenessof the
effects and cost of corrosion while also
building the awarenessof the potential
savings that can be reaped from pre-
ventative strategies. Nonetheless, non-
corrosivematerials must be a first-step
consideration in apreventative strategy.
Sewer infrastructure, in particular,
is exposed to highly corrosive and
acidic environments, requiring contin-
ual maintenance and cleaning. Despite
that level of care, sewer infrastructure
still incurs a high frequency of dete-
rioration and premature failures. Con-
crete is the most widely used construc-
tion material in wastewater collection
and treatment systems. Unfortunately,
concrete quickly erodes when subject-
ed to significant corrosion.
Concrete sewer manholes are no ex-
ception. Placed every 200 to 400 feet
for sewer maintenance activities, con-
crete manholes are often lined and re-
lined with protective coatings and plas-
tic liners. However, these processes are
temporary and continue to raise the
cost of the asset over time.
POLYMER MANHOLES
While non-corrosive pipes have the
benefit of extended performance, con-
crete manholes continue to pose a con-
tinual maintenance and cost drain due
to corrosion. By contrast to concrete,
polymer manholes, made of polyester
resin, sand and aggregate, present a
cost-effective replacement option.
Polymer manholes have no cement in
the product. Hence, the corrosion com-
monly found in precast concrete man-
holes is not a concern. Limitations that
exist in coated and lined manholes —
cracking, damage, delaminated welding
or lining containment — are eliminated.
W ater Utility M a n a g e m e n t
The installation is similar to that of a
traditional concrete manhole. The ad-
vantage of polymer products is that the
high-strength material enables a thin
wall design (and consequently lighter
weight), which allows for easy handling,
reduced labor, and lower freight and in-
stallationcosts. Also, there isno need for
the welding of linings or for coating the
product, practices which only increase
the installation difficulty, time and costs.
Polymer manholes adhere to
the materialproperties specified in
ASTM D6783 (Standard for Poly-
mer Pipe). The high tensile strength
of polymers also negates the added
expense of reinforcing steel. Poly-
mer manholes are cost effective even
though the initial cost may be slightly
higher — perhaps a couple hundred
dollars over concrete epoxy-coated or
PVC-lined manholes — but, by avoid-
ing maintenance, relining and repair
costs over the life of the manhole, the
return on investment (ROI) is incred-
ible. A polymer manhole can have a 50-
year warranty and last 100 years or
more in a corrosive environment, cre-
ating a common asset life for the pipe
and the manhole together.
It’s important to note that a change
to procurement options may be needed
to include sustainable polices such as life
cycle cost considerations or a non-cor-
rosive specification for polymer man-
holes. A polymer manhole replacement
program over the next century will en-
sure both sustainability and lower sewer
rates. The most cost-effective strategy
to begin a sustainable replacement pro-
gram is to start with a pilot program.
Growing public pressure for im-
proved asset management practices and
long-term planning to reduce overall
risks and cost continues to increase.
This pressure will, in turn, force the
change necessary to capture current
and future benefits in the areas of open
procurement, material selection and
asset management best practices. This
type of change represents the continu-
ing improvement process for utilities to
achieve sustainable solutions that are
both cost effective and affordable.WW
About the Author: Gregory M. Baird,CFO of Aging Wa-
ter Infrastructure (AWI) Consulting (www.AgingWater-
Infrastructure.org) and president of The Water Finance
Research Foundation (www.WaterFinanceRF.org), is de-
veloping a one-stop information centerfor wet infrastruc-
ture while also directing efforts to establish an Ameri-
can public infrastructure–asset management association
combining traditional disciplines with technology and fi-
nance. Baird is an experienced municipal finance officer
and utility management professional, having consulted
at the state, county and local levels of government. He
has also served in the public sector working in California
and as the CFO of Colorado’s third largest water utility.
References
1. Strategic Directions in the U.S. Water Util-
ity Industry,Black & Veatch, 2012.
2. Water Infrastructure Asset Management:
Key Research Findings, McGraw-Hill Construc-
tion, 2013.
3. T
rends in Local Government Expenditures
on Public Water and Wastewater Services
and Infrastructure: Past, Present and Fu-
6. Clean Water Infrastructure: A Variety of
Issues Need to Be Considered When Design-
ing a Clean Water Trust Fund, U.S. Govern-
ment Accountability Office, 2009.
9. Water Main Break Rates in the USA and
Canada: A ComprehensiveStudy,Steven Folk-
man, Ph.D., PE,Utah State UniversityBuried Structures
Laboratory, April 2012.
ture, The U.S. Conference of Mayors – Mayors Wa-
ter Council, 2010.
4. “U.S. Water Infrastructure Needs & the Funding
Gap,” USEPA.
5. Future Investment in Drinking Water and
Wastewater Infrastructure, Congressional
Budget Office, 2002.
7. Buried No Longer:Confronting America’s
Water Infrastructure Challenge,American Water
Works Association, 2012.
8. “Pleasanton’s Underground Infrastructure: Sustain-
ability, Cost-Efficiency Through Better Materials Pro-
curement Practices,” Jennifer Hosterman, U.S. Confer-
ence of Mayors, May 2011.
Since polymer manholes have no cement in
the product, the corrosion commonly found in
precast concrete manholes is not a concern.
Photo courtesy of Geneva Polymer
The installation of a polymer manhole is simi-
lar to that of a traditional concrete manhole.
Photo courtesy of Geneva Polymer
Eprinted and posted with permission to Uni-Bell PVC Pipe Association from WaterWorld
March © 2013 PennWell Corporation

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PVC VS. FIBERGLASS (FRP) GRAVITY SEWER - UNI BELL

  • 1. W ater Utility M a n a g e m e n t n the 21st century, water util- ity management professionals for strive to implement asset management programs in order to better manage their aging wet infrastructure. In 2012, a Black and Veatch survey1 on the US water industry found that the top asset management issues were all financially driven, namely address- ing aging water and sewer infrastruc- ture, managing capital costs, funding or availability of capital, and energy costs. In 2013, a McGraw Hill Construction study, conducted in partnership with CH2M Hill,2 confirmed that 75% of utilities implementing asset manage- ment programs did so because of their concerns with aging infrastructure. Major studies from the US Mayor’s Water Council,3 the USEPA,4 the Con- gressional Budget Office,5 US Govern- ment Accountability Office,6 the Ameri- can Water Works Association7and others all conclude that the costs associated with US water and sewer infrastructure — for both replacement of aging systems and for new development driven by growth — is financially overwhelming, ranging from $1 trillion to $4 trillion over the next couple of decades. The financial challenges faced by util- ity, asset and financial managers have intensified with the downturn of the world economy, tapped out rate pay- ers, unstable credit markets, wide-scale downgrades and paralyzed project- and rate-approving authorities. Some con- sulting firms are responding by offering financial services. For example, MWH Global is an early adopter of wet infra- Asset Management Using Alternative Materials to Address Replacement Cost and Maintenance Concerns BY GREGORY M. BAIRD I both water and sewer systems structure asset management practices worldwide. With its acquisition of Step- wise Utility Advisors in 2012, it has added the additional facet of providing financial and risk services to support infrastructure funding options and im- proved investment decision making. Regardless of basic funding sources, existing rate charges for replacement projects, and developer fees for new growth projects, the primary goal is fig- uring out how to manage and reduce the costs of the infrastructure through its entire asset life. As a result, traditional paradigmsare giving way to new tech- nologies, products, and methodologies. According to the USEPA, nearly 60% of the total pricetag lies with the un- derground infrastructure. Many utilities understand this reality, which has driven wide acceptance of and advances in leak detection, condition assessmentand infrastructure replacement planning ef- forts. A key assetmanagement trend has emerged: new options in materialselec- tion and project deliveryalternatives. These critical options offer change, which can be hard for a utility to ac- cept. The benefit, however, is less main- tenance and more cost savings, which In the area of underground water and sewer pipes, a wide variety of pipe materials (such as PVC shown here) can now be used to help address cost concerns. Photo courtesy of Geneva Polymer ®
  • 2. W ater Utility M a n a g e m e n t ultimately protects the financial stability of the organization and its staff. ALTERNATIVE PIPE MATERIALS Change hasspurred increasedcom- petition and innovation, which contin- ues to help reduce costs for the utility and its ratepayers.In the areaof un- derground water and sewer pipes, for example, a wide variety of pipe mate- rials can now be used to help address cost concerns. In fact, the current cost paradigm shift in pipe design applica- tions has created a veritable “pipe war” asproduct linesbattle for marketshare. Modern hydraulicmodeling software and improved water pressure operational knowledge has expanded the use of alter- native pipe materials over the traditional ductile-iron-only option. For instance, utilities are realizing a cost savings of 30%to 70%8in material costs by install- ing PVC in residentialareas.In fact, home builder associations are beginning to urge municipalities to allow PVC to be installed in larger diameters in order to reduce the cost of newdevelopment. While PVC and ductile iron are the most prominent types of pipe materi- als currentlybeing installed in water distribution systems,there areother materials, like polyethylene and PVCO, each with unique characteristics for use in various conditions in water, sewer, storm and reuse applications. This of- fers a significant potential benefit to utilities if open procurement practices are updated so the utility can employ the use of different pipe materials suit- able for various types of projects. KEY CONSIDERATIONS When selecting a pipe material, key considerations include trench conditions, corrosion, temperature, safety require- ments, and cost. Pipes are approved and tested by the American Society of Test- ing Materials (ASTM) and the Ameri- can Water Works Association (AWWA), and many have the presence of the NSF designation on the pipe indicating that it was tested for compliance with one or more voluntary national standards and undergoes continual rigorous testing. Needless to say, these pipes are safe for their intended purpose. Likewise, these various pipes have been tested and dem- onstrate expected useful lives at over 100 years if properly installed. Comprehensive studies on pipe per- formance, such as the “2012 US and Canada Water Main Break Study” by the Buried Infrastructure Laboratory of Utah State University,9 continue to help provide additional assistance on pipe evaluation and selection. While this study finds PVC to have the fewest main breaks, it is interesting to note one critical finding: the Canadian experience with PVC failures per 100 kilometers is nearly 76% below U.S. figures through proper inspection and installation. Proper pipe knowledge, installation and inspections protect the public invest- ment and avoid unnecessary and prema- ture failures. No pipe material, however, is exempt from failure in the absence of proper design followed by adequate inspection. A poorly informed inspec- tor, or one who has not been properly trained in the manufacture, inspection, handling, installation and testing of the type of pipe he or she is hired to inspect, is often worse than no inspection at all. CONTROLLING CORROSION The two major C’s — cost and cor- rosion — are predominant topics of dis- cussion when it comes to underground infrastructure. Corrosion, not necessarily age, has frequently been the main culprit in iron pipe failures. In a 2004 report, corrosion experts NACE International found that the cost of corrosion in the US for all major infrastructure sectors is $276 billion — or 3.1% of the GDP. The direct costs of corrosion include: • Cost of labor attributed to corrosion management activities • Cost of equipment related to corro- sion activities • Loss of revenue due to disruption in supply or service • Cost of reliability • Cost of lost capital due to corrosion deterioration The cost of corrosion in drinking wa- ter and sewer systems alone was statedin 2004 as $36 billion and has increased by some estimates to as much as $50 bil- lion. Corrosion prevention methods and servicesinclude protective coating, corrosion-resistantalloys, corrosion in- hibitors, engineered plastics and poly- mers, cathodic and anodic protection, and corrosion control services. NACE’s goal is to increase the awarenessof the effects and cost of corrosion while also building the awarenessof the potential savings that can be reaped from pre- ventative strategies. Nonetheless, non- corrosivematerials must be a first-step consideration in apreventative strategy. Sewer infrastructure, in particular, is exposed to highly corrosive and acidic environments, requiring contin- ual maintenance and cleaning. Despite that level of care, sewer infrastructure still incurs a high frequency of dete- rioration and premature failures. Con- crete is the most widely used construc- tion material in wastewater collection and treatment systems. Unfortunately, concrete quickly erodes when subject- ed to significant corrosion. Concrete sewer manholes are no ex- ception. Placed every 200 to 400 feet for sewer maintenance activities, con- crete manholes are often lined and re- lined with protective coatings and plas- tic liners. However, these processes are temporary and continue to raise the cost of the asset over time. POLYMER MANHOLES While non-corrosive pipes have the benefit of extended performance, con- crete manholes continue to pose a con- tinual maintenance and cost drain due to corrosion. By contrast to concrete, polymer manholes, made of polyester resin, sand and aggregate, present a cost-effective replacement option. Polymer manholes have no cement in the product. Hence, the corrosion com- monly found in precast concrete man- holes is not a concern. Limitations that exist in coated and lined manholes — cracking, damage, delaminated welding or lining containment — are eliminated.
  • 3. W ater Utility M a n a g e m e n t The installation is similar to that of a traditional concrete manhole. The ad- vantage of polymer products is that the high-strength material enables a thin wall design (and consequently lighter weight), which allows for easy handling, reduced labor, and lower freight and in- stallationcosts. Also, there isno need for the welding of linings or for coating the product, practices which only increase the installation difficulty, time and costs. Polymer manholes adhere to the materialproperties specified in ASTM D6783 (Standard for Poly- mer Pipe). The high tensile strength of polymers also negates the added expense of reinforcing steel. Poly- mer manholes are cost effective even though the initial cost may be slightly higher — perhaps a couple hundred dollars over concrete epoxy-coated or PVC-lined manholes — but, by avoid- ing maintenance, relining and repair costs over the life of the manhole, the return on investment (ROI) is incred- ible. A polymer manhole can have a 50- year warranty and last 100 years or more in a corrosive environment, cre- ating a common asset life for the pipe and the manhole together. It’s important to note that a change to procurement options may be needed to include sustainable polices such as life cycle cost considerations or a non-cor- rosive specification for polymer man- holes. A polymer manhole replacement program over the next century will en- sure both sustainability and lower sewer rates. The most cost-effective strategy to begin a sustainable replacement pro- gram is to start with a pilot program. Growing public pressure for im- proved asset management practices and long-term planning to reduce overall risks and cost continues to increase. This pressure will, in turn, force the change necessary to capture current and future benefits in the areas of open procurement, material selection and asset management best practices. This type of change represents the continu- ing improvement process for utilities to achieve sustainable solutions that are both cost effective and affordable.WW About the Author: Gregory M. Baird,CFO of Aging Wa- ter Infrastructure (AWI) Consulting (www.AgingWater- Infrastructure.org) and president of The Water Finance Research Foundation (www.WaterFinanceRF.org), is de- veloping a one-stop information centerfor wet infrastruc- ture while also directing efforts to establish an Ameri- can public infrastructure–asset management association combining traditional disciplines with technology and fi- nance. Baird is an experienced municipal finance officer and utility management professional, having consulted at the state, county and local levels of government. He has also served in the public sector working in California and as the CFO of Colorado’s third largest water utility. References 1. Strategic Directions in the U.S. Water Util- ity Industry,Black & Veatch, 2012. 2. Water Infrastructure Asset Management: Key Research Findings, McGraw-Hill Construc- tion, 2013. 3. T rends in Local Government Expenditures on Public Water and Wastewater Services and Infrastructure: Past, Present and Fu- 6. Clean Water Infrastructure: A Variety of Issues Need to Be Considered When Design- ing a Clean Water Trust Fund, U.S. Govern- ment Accountability Office, 2009. 9. Water Main Break Rates in the USA and Canada: A ComprehensiveStudy,Steven Folk- man, Ph.D., PE,Utah State UniversityBuried Structures Laboratory, April 2012. ture, The U.S. Conference of Mayors – Mayors Wa- ter Council, 2010. 4. “U.S. Water Infrastructure Needs & the Funding Gap,” USEPA. 5. Future Investment in Drinking Water and Wastewater Infrastructure, Congressional Budget Office, 2002. 7. Buried No Longer:Confronting America’s Water Infrastructure Challenge,American Water Works Association, 2012. 8. “Pleasanton’s Underground Infrastructure: Sustain- ability, Cost-Efficiency Through Better Materials Pro- curement Practices,” Jennifer Hosterman, U.S. Confer- ence of Mayors, May 2011. Since polymer manholes have no cement in the product, the corrosion commonly found in precast concrete manholes is not a concern. Photo courtesy of Geneva Polymer The installation of a polymer manhole is simi- lar to that of a traditional concrete manhole. Photo courtesy of Geneva Polymer Eprinted and posted with permission to Uni-Bell PVC Pipe Association from WaterWorld March © 2013 PennWell Corporation