UIM Asset Management Conference Management 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 $

- 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 Planning

- 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 MANAGEMENT PROGRAM

- 11 Tying it All Together V A L U E Improving Performance Increasing Financial Value Affordable Rates Asset Focused Culture Decreasing Asset Failure Increasing Customer Satisfaction Improving Asset Efficiency Improving Asset Condition Decreasing Risk Decreasing Costs

- 12 Increase Accountability to Stakeholders Customers Current FUTURE! Local Governments Regulatory Agencies Environmental Groups Employees

Thank You!