UIM Asset Management ConferenceUIM Asset Management ConferenceManagement Considerations for a Total

Asset Management Program

December 9, 2008

- 2

Presentation Overview Value Considerations

Financial

Condition

Performance

Business Processes

O&M

Capital Planning

Program Integration – Tying it all together

- 3

What is Current System Value? Financial

Provides investment baseline

Condition Assessment

Provides condition baseline

Performance Assessment

Financial + Condition + Performance = Program Baseline

- 4

Financial Baseline Reproduction

Cost

Provides current value of system assets

Depreciation

Deterioration and Obsolescence

Annual Renewal & Replacement $

Figure 5-5DWU Survival Curves

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

1900 1950 2000 2050 2100 2150 2200 2250

Year

Sur

viva

l (%

)

Pit cast (<=8")

Pit cast (>8")

Pre-1960 spun cast (<6")

Pre-1960 spun cast (6")

Pre-1960 spun cast (8")

Pre-1960 spun cast (>8")

Post-1960 spun cast (<=6")

Post-1960 spun cast (8")

Post-1960 spun cast (>8")

DIP (all diameters)

PVC (all diameters)

Galvanized (all diameters)

Asbestos (all diameters)

Other Materials

Missing data

- 5

Condition Baseline

Initial assessment

Continuous monitoring

Very Poor

Poor

Moderate

Good

Very Good

- 6

Performance Baseline Establish asset benchmarks

Regulatory performance

Efficiency benchmarks

Develop measurement procedures

Very Poor

Poor

Moderate

Good

Very Good

- 7

Things to Consider…..

Business Processes

O&M

Proactive or Reactive?

Asset Focused?

Capital Planning

Risk Management

Business Case

Prioritization

Financial PlanningMedium Business

Risk ExposureHigh Business Risk

ExposureLow Business Risk

Exposure

2007 2008 2009 2010 2011 2012 2013

0

10,000

20,000

30,000

40,000

50,000

Ca

pit

al

Co

st

($0

00

)

Budget Constraint

- 8

Things to Consider…..

Technology

Is it able to store information and produce meaningful reports

Can it interact with other systems?

Financial, CIS, O&M, GIS

DOES IT HELP YOU MEASURE AND IMPROVE??

- 9

Things to Consider…..

Culture

Are employees asset focused?

Do they go above and beyond?

Organization wide?

Administration

Financial

Operations

Maintenance

Training

- 10

Things to Consider…..

A constant process

Plan

Implement

MEASURE

Repeat

ASSET MANAGEMENTPROGRAM

- 11

Tying it All Together

V A L U E

Improving Performance

Increasing Financial Value

Affordable Rates

Asset Focused CultureDecreasing Asset Failure

Increasing CustomerSatisfaction

Improving AssetEfficiency

Improving AssetCondition

Decreasing Risk

DecreasingCosts

- 12

Increase Accountability to Stakeholders

Customers

Current

FUTURE!

Local Governments

Regulatory Agencies

Environmental Groups

Employees

Thank You!Thank You!