Village of Ruidoso Water and Wastewater Systems Asset Management Village of Ruidoso Water and Wastewater Systems In a world of limited resources – helps focus investments on risk and service How do we extend the life of our public works assets? Survey of 450 water and wastewater utilities in US and Canada – small to very large Regarding adoption of AM practices I recently attended a conference attended by the investment community and agencies involved in overseeing PW infrastructure investment “The #1 credit risk in the US today is Deferred Maintenance” 11/13/2018 Asset Management Planning Scott Verhines | PE

Asset Management Planning Scott Verhines | PE Definition "Asset management is managing infrastructure assets to minimize the total cost of owning and operating them while continuously delivering the service levels customers desire."  -- from the publication, Managing Public Infrastructure Assets One of the common challenges we see around NM is infrastructure failing prematurely from inadequate maintenance or our struggles to prioritize. Investment in infrastructure has two main components – the capital investment in planning, designing and building an asset, and the investment in operating, maintaining and replacing the asset over years or decades. This can be many times the initial capital investment. And, what does your community expect in terms of service? Do citizens understand what it takes to provide it, and will they support you? 11/13/2018 Asset Management Planning Scott Verhines | PE

Main Elements of AMP Asset Inventory Level of Service Critical Asset Assessment Life Cycle Costs Long-term Funding Strategy Dr. Richard Rose was on our team for this effort, a fixture in NM with respect to infrastructure best management practices, until his recent health issues. This approach requires active participation by the Village’s public works team. These are your folks that know your systems inside and out, and must have the buy in to make this work long term. I must say, the VoR leadership and staff is fully engaged. 11/13/2018 Asset Management Planning Scott Verhines | PE

Asset Management Planning Scott Verhines | PE Why do this? Culture change Benefits > Costs Best Management Practice Future funding $ LOS that customers need / want Must engage the team We might think of it this way – If you are asking the rest of NM’s taxpayers to invest in your community and its assets, isn’t there a basic expectation of taking care of the that investment over the long haul? You are all doing this at some level today. With a little structure this becomes a basic best management practice. 11/13/2018 Asset Management Planning Scott Verhines | PE

Primary Benefits of AMP Understanding by governing body Focus on Priorities Risks / Consequences Non-cost savings Capital or Operational expenditures Cost / Levels of Service From the “Smart Market Report”: #1 - Improved ability to explain and defend budgets / investments to governing bodies #2 – Better able to define and focus on priorities #3 – Improved understanding of risks and consequences of alternative investment decisions #4 – Non-cost savings business benefits -> #5 – Increased ability to balance between capital and operation expenditures #6 – Reduced costs without sacrificing service levels 11/13/2018 Asset Management Planning Scott Verhines | PE

Drivers for Implementing AM Limited resources Capital and Maintenance Strategies and Budgets Need to Replace, Upgrade or Expand Asset Failure Risks and Consequences Regulatory Requirements Anticipation of Rate Increases For the VoR, all or most of these drivers apply. 11/13/2018 Asset Management Planning Scott Verhines | PE

Barriers to Implementing AM Staff capacity / skill sets Implementation takes effort Lack of adequate data Difficulty with useful targets and measures Potential staff resistance Perceptions regarding AM adoption 11/13/2018 Asset Management Planning Scott Verhines | PE

Main Elements of AMP Asset Inventory Level of Service Critical Asset Assessment Life Cycle Costs Long-term Funding Strategy Dr. Richard Rose is on our team for this effort, a fixture in NM with respect to infrastructure best management practices. And, this approach requires active participation by the Village’s public works team. These are your folks that know your systems inside and out, and must have the buy in to make this work long term. 11/13/2018 Asset Management Planning Scott Verhines | PE

Asset Management Planning Scott Verhines | PE Status Asset Inventory – underway VoR Focus on Water and WW Systems Good GIS basis for already “master meters” as Pilot Project VoR Level of Service – finalizing VoR and OEI 11/13/2018 Asset Management Planning Scott Verhines | PE

Asset Management Planning Scott Verhines | PE Questions? 11/13/2018 Asset Management Planning Scott Verhines | PE