Making the Case for Asset Management APWA Asset

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

WHY DOES IT MATTER? Mayor/Council Police Asset Management is about how we manage physical assets: Finance - We all manage assets and are impacted by how well we manage them T. I. S. Park & Rec. Planning & Comm. Dev. H. R. Public Works Fire - Establishes relationship between services we provide and cost - Developing the systems, data and software that allows us to make informed decisions - Focus on the skills we need, training and capturing intuitional knowledge.

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

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.

WHAT IS ASSET MANAGEMENT It’s About Balancing Competing Goals to Make Good Decisions Risk Service Levels Resources Costs Information

CAPITAL INVESTMENTS ARE JUST PART OF THE COSTS 35 -40% 60 -65% Costs Time Frame Asset Ownership Costs

REDMOND’S INFRASTRUCTURE CONSTRUCTED Wastewater Pipe Miles Road Sections 500 60 450 50 400 350 40 30 250 20 150 10 100 50 0 1950 1960 1970 1980 1990 2000 0 2010 1920 1930 1940 1950 Stormwater Pipe Miles 160 140 120 100 80 60 40 20 0 1960 1970 1980 1990 2000 2010

PROJECTED MAINTENANCE COST LIFT STATION #3 COSTS $20, 000 $350, 000 $18, 000 $300, 000 $16, 000 $14, 000 $250, 000 $12, 000 $200, 000 $150, 000 $8, 000 $6, 000 $100, 000 $4, 000 $50, 000 $2, 000 $0 $0

RESULTS COMPARED OUR CURRENT PRACTICES BEST PRACTICES

ASSET MANAGEMENT PROGRAM EVALUATION (AMPE) PROCESS Resources Where We are Now GAP Where We Want to BE • • • One year Three year Long-term Action Plan • • • 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? 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

DEVELOPING THE ASSET MANAGEMENT PROGRAM

ASSET MANAGEMENT IS ABOUT DELIVERING SERVICES Communication Creating Value Efficient Effective