APWA Asset Management Workshop Making the Case for Asset Management APWA Asset Management Workshop Linda E. De Boldt, P.E Director of Public Works August 10, 2017

Gaining support for asset management Why is it important to gain support from city officials? Why should city officials care? What are strategies and messages that can garner support? Redmond’s Asset Management Program Providing background and information on the Asset Management Program

Why Does it Matter? Asset Management is about how we manage Mayor/Council Asset Management is about how we manage physical assets: Police Finance - We all manage assets and are impacted by how well we manage them H.R. Public Works Establishes relationship between services we provide and cost Park & Rec. Developing the systems, data and software that allows us to make informed decisions Planning & Comm. Dev. We ARE referring to items such as buildings, utility infrastructure, transportation such as electrical cables, water pipes, rail lines and metro tunnels, - Focus on the skills we need, training and capturing intuitional knowledge. Fire T.I.S.

ASSET Management ASSET LIFE CYCLE Design Assess and Construct Plan Operate And Maintain

Asset Management The systematic and coordinated activities and practices to optimally manage assets, and their performance, risks, and cost over their life-cycle for the purpose of achieving its expected levels of service. This is one of many definitions of Asset Management, it gets a little wonky so I won’t read it. The key points are asset management is an organization-wide frame-work and there are three key concepts are Level of Service, Life-cycle cost and risk.

What is Asset management It’s About Balancing Competing Goals to Make Good Decisions Service Levels Resources Costs Information Risk In simple terms: AM is about making good decisions based on knowing our level of service, costs (over the L-C), timing based on risk and available resources.

Capital Investments are just part of the costs 35-40% 60-65% Costs Most of the capital costs get most of the attention, but usually make up 35%-40% of the total cost, where M&O, R&R and disposal make up the rest. Time Frame Asset Ownership Costs

Redmond’s Infrastructure constructed Profile of three Redmond infrastructure systems. In general half way through useful life. Important point, going forward M&O will increase and likely at a higher rate as assets age.

Projected maintenance Cost Lift station #3 costs LS #3 as example of costs over 20-years. Escalated numbers over that time and the cumulative cost.

Results Compared our Current practices Best Practices The results of the GAP analysis: -Gave us a snapshot of where we were compared to “Best Practices” -Explain 13 Categories and 110 Best Practices and Colors

Asset management program evaluation (Ampe) Process Where We are Now Resources Action Plan One year Three year Long-term GAP You also need to know Where you are now Where you want to be In 2015 an AMPE was done in a series of workshops Where We Want to BE One year Three year Long-term

five strategies focused on answering core questions 1.0 Asset Knowledge What do we own and what condition is it? 2.0 Asset Lifecycle What are our level of services? What are our long-term costs? 3.0 Risk Management What assets are critical for meeting our level of service? 1 Over the next three years what do we need to focus on. 2 Looked at five broad strategies on typical core questions of AM 4.0 Financial What is our long-term funding strategy? 5.0 Program Development What skills and resources do we need? How do we communicate effectively?

3-Year Roadmap If you think about it we are working establishing the two of the three part of build the program Structure and systems. Go back to earlier slide

Developing the Asset Management program Tying the AMP to the Public Works Strategic Plan AMP is a Strategic Objective in achieving the goals of the PW Strategic Plan Developing the AMP like all Programs includes:……

Asset Management is about delivering services Communication Creating Value It’s about delivering services that creating value Efficient Effective