Asset Management, not a Scary or Costly Concept Prepared for: West Virginia GIS Conference May 9, 2012 Presented by: Lou Garcia

First : What is Asset Management ? ? Of various definitions, this is the one defined by and for the water and wastewater utility industry: Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk. Managing Public Infrastructure Assets, AMSA, AMWA, WEF, AWWA, 2001

Minimize the Total Cost Life-cycle costs Construction and installation costs Operating costs Maintenance costs Rehabilitation costs Replacement costs Decommission and salvage costs Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk.

Delivering the Service Levels that Customers Desire Understanding customer expectations Determining level of service Establishing performance indicators Measuring performance Balancing the tradeoffs between levels of service and future investments Communicating with the customers Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk.

At an Acceptable Level of Risk Determining criticality of assets Defining failure Predicting likelihood of failure Quantifying risk Reducing risk based on cost implications Prioritizing risk-reduction actions Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk.

Managing Assets has always been a part of managing a utility But…. More often than not the focus has not been on minimizing life-cycle costs Service levels have not been established Risk has been a nebulous concept Maintenance and R&R have been intuitive or politically driven and not fact based Actions have been stand-alone Methods have not been integrated Information & data decentralized and unverified Decisions based on perception rather than fact Tools are basic or non-existent Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk.

GIS is a logical place to view, query, analyze and communicate Asset Management Existing GIS is a perfect place to begin Viewing capabilities unsurpassed Ability to query data & display results on maps Analysis tools unparalleled Ability to communicate program via maps, desktops tools and internet

So why should Asset Management be important to you? Good management practice & customer service Aging infrastructure Numerous demands of expenditures Increasing maintenance, versus Rehabilitation, versus Replacement, versus Regulatory, versus Growth demands, versus Security Improved Bond Rating GASB34

Asset Management provides a Strategic and Knowledge Based Approach for management

Asset Management does NOT have to be Complicated & Scary! Strategic and Knowledge-Based Approach Allows a Utility to Begin Anywhere Entire system or individual assets One or more geographic areas Liner or vertical assets One or more facilities Portion or several portions of the distribution or collection system And with whatever information and data is available Extrapolate and project with statistical models More information & data improved decision-making

Asset Management – are you really ready Asset Management – are you really ready? Some key questions to consider: What does Asset Management really mean? Why can’t you simply install an Asset Management system? Which best practices are appropriate? How do you even get started?

How do you start?

Why not just buy an asset management tool and install it ? Proper planning prevents …. Don’t want to create stove pipes No user buy in… No one tool does it “all” GIS CMMS SCADA CMS Billing Inspections/Permits CIP/Budgeting

Understand it What will the role of asset management be for your organization Define what asset management means for you Create an achievable vision for your organization Make the “change” as easy as possible Start small, find a “champion” Create and sustain interest Make the tool’s introduced indispensable

Asset Management Basic Principles Know what assets you own and what you are responsible for Establish service levels considering customer expectations Incorporate both systematic maintenance as well as planned capital investment Prioritize and make decisions on risk, life-cycle costs and benefits Integrate database and applications Involve stakeholders

Know your assets! Data! Indentify a single database to serve as the primary repository for asset information Compile data from all sources (e.g. fixed asset inventory, GIS, PM records, etc.) and verify accuracy Eventually the database should include asset attributes Type of asset Location Manufacturer Material Size/capacity Costs (original & replacement) Installation/construction date Service life (initial & remaining) Condition grade Performance grade

Copyright © 2012 Azteca Systems, Inc Condition Assessment Limited Budgets, Tailor Assessment Tools to Risk Maintenance History (100% of assets) Visual Inspections Monitoring Non-destructive Testing Smoke/Dye CCTV Sonar/Radar Digital Imagery Destructive Testing Material Analysis Copyright © 2012 Azteca Systems, Inc All rights reserved.

Combining a Bottom-Up with a Top-Down Approach provides increasingly Reliable Data Results Refinement of projections from additional data Asset by asset data Time and resource intensive Individual condition and performance assessments Detailed asset attributes Statistical Based on existing data & targeted studies Long-term projections Easily manipulated Relatively quick analysis of big picture Top-Down Bottom-Up Refined Output

A Review of current AM practices will Identify Gaps that need Addressing; an example Current utility Asset Management practices are compared against BEST Practices to determine gaps and target improvement efforts

Employ Risk Reduction : Cost Analysis to Identify Projects

Effective Decision Making for Managing Assets is all about Managing Risk Risk = ƒ(severity x likelihood) How severe are the consequences of asset failure? Require a significant investment to repair or replace? Impact the utility’s goals? Create a health or safety issue? Cause an environmental impact? Result in a permit violation or other regulatory/legal concern? Create negative publicity or undermine public confidence? How likely is it for the asset to fail? How is failure defined? What are the asset’s attributes? What is the condition? How is it performing? How will it meet future needs?

Effective Asset Management Includes both Systematic Maintenance & Capital Investment Capital Renewal Rehabilitation Replacement Maintenance Planned Reactive

Cityworks GIS-Centric Approach GeoDB Asset Repository Cityworks Server Cityworks Anywhere Cityworks Desktop GeoDB Asset Repository Cityworks Storeroom Cityworks Mobile Cityworks Dashboard Copyright © 2011 Azteca Systems, Inc All rights reserved.

Enterprise Solution! Cityworks Desktop Cityworks Desktop Cityworks® - Cross Compatibility Assurance Cityworks Desktop Cityworks Desktop Cityworks Anywhere Cityworks Anywhere Cityworks Permitting Cityworks Designer Cityworks Designer Cityworks Server Cityworks Server Cityworks is a true Enterprise solution. All our products are cross-compatible, working on the same platform, accessing the same database and workflow schema. Centralized Work Activity Configuration and Management Copyright © 2011 Azteca Systems, Inc All rights reserved.

Cityworks – Open Standards Non-proprietary, Interoperable Asset Database Address data Work activity data GIS-Centric checklist Geodatabase is the asset data Non-redundant asset database User definable asset data model Non-proprietary asset database Interoperable asset database Inherently spatial data structures Created and maintained by GIS tools Copyright © 2011 Azteca Systems, Inc All rights reserved.

Copyright © 2012 Azteca Systems, Inc Cityworks supports asset-based, address-based, & general work activities General Work order Address-based work order Because Cityworks is GIS centric, that doesn’t mean the only way you can use it is through the GIS. Here are the three basic work order types. Asset-based work order Copyright © 2012 Azteca Systems, Inc All rights reserved.

Permits, Licensing, and Land Management (PLL) Plan Review Application or any other type Application Process Building Construction Permits, Pool Permits, NPDES or any other type Permit Process Applications Permits Case Object Enforcement Code High Weeds and Grass, Trash in Yard or any other type Code Enforcement Process Alcohol License, Business License or any other type License Process Licenses Copyright © 2012 Azteca Systems, Inc All rights reserved.

Any GIS Database What is Cityworks PLL? Permits 2. Licenses 3. Land (Permits, Licensing, and Land Management) Buildings Furniture Permits - Building - Zoning - Engineering - Health 2. Licenses - Business Licenses - Contractor Licenses - Animal Licenses 3. Land - Community Development and Planning Activities - Engineering Construction Processes Code Enforcement Case Management 4. Streamlined tasks - Plan Reviews - Issuance - Inspections - Pre-Construction Meeting - Public Hearings - Notice of Violations Fee Processing and Management HVAC Fleet Street Lights Streets Parcels Signs Any GIS Database Trees Parks WW Plants Sewer Lines Manholes Pumps Water mains Hydrants Gas Mains Powerlines Copyright © 2012 Azteca Systems, Inc All rights reserved.

Questions? Lou Garcia EA Engineering, Science and Technology Mobile phone = 443.904.3897 Email = lgarcia@eaest.com