1. 1 NEORSD Asset Management Assessment

2. Agenda NEORSD history / responsibilities Project drivers Overview of this project Strategic insights Lessons learned

3. NEORSD History Formed by Court Order in 1972 Independent Political Subdivision of State of Ohio Governed by 7 Member Board of Trustees Serves City of Cleveland and 59 Suburban Communities Service Area - 380 Sq. Miles Service Area Population – 1,000,000

4. NEORSD Key Responsibilities WWTP Operation - Easterly, Southerly, Westerly Combined and Separate Interceptors - Construction, Operation and Maintenance Combined Sewer Overflow (CSO) Control

5. Project Drivers District business sustainability drives this project Cleveland No.1 in big city poverty (31% of residents below poverty level) 11% population decrease over 20-30 yrs $1.6 Billion CSO Control Program $1.6 Billion WWTP/Sewer Rehabilitation Program

6. Project Drivers Projected capital investment of $3.2 billion over the next 30 years, which almost doubles the prior 30 years Capital Investments $1.8 billion 1972-2003 $3.2 billion 2004-2034

7. Project Drivers Future needs are not projected to benefit from the Federal Grants Program as past needs did Projected doubling of sewer rates in 10-years 2004-2034 Unknown - $0 Federal Grants $644 million 1972-2003

8. Project Drivers Significant personnel turnover and departmental reorganizations Maintaining our present efficiency will not be adequate for the future Do you know where is the knowledge going?

9. Overview of Project Define asset management in three areas: –Capital assets –People resources –Business culture Evaluate District current practices in each of these areas Perform a gap analysis Perform a pilot study of asset management tools Create an implementation plan for an Asset Management Program Obtain buy in from governing body Where we are currently

10. Overview of Project Implementation Plan will include: –Program structure –Asset management team organization –Multi-year resource estimates –Phased schedule and budget –Communication strategy –Stakeholder management plan –Tactical functionality –Performance measures

11. Our 2004-2008 Strategic Plan had 5 goals: –Maintain the District’s excellent service record and reputation –Improve our dynamic business culture –Improve use of our people resources –Determine our future business –Determine the most effective and equitable means of funding the future Strategic Insights

12. Lessons Learned.... So far Asset management is viewed as a cure-all system by some in the organization. In the beginning, be straight forward and explain what it WILL and WON’T do. Before embarking on an asset management project, make sure people understand that asset management provides the practices, but the PEOPLE have to do them!

13. 13 Questions? Thank you.