Asset Management Bowling Green Municipal Utilities Mike Gardner – Water/Wastewater Systems Manager Doug Kimbler – Treatment Plants Superintendent

Personal History with Asset Management Contract operations Europe

The Philosophy of Asset Management What is Asset Management? What does Asset Management do? What are we trying to achieve through Asset Management?

What is Asset Management? Infrastructure AM Financial AM Enterprise AM Public or Corporate AM

What About GASB 34? Government Accounting Standards Board Statement #34 – established 1999 Depreciation Method Modified Method

What Does Asset Management Do? Identifies major capital assets Documents condition of each asset Documents improvements that change the condition or value of each asset Provides a means of prioritizing investment in those assets

What Are We Trying to Achieve with Asset Management? Optimize the operation and maintenance of equipment and systems Extend equipment life Improve reliability of equipment and systems Reduce system operating and replacement costs

Elements of Asset Management Utilize a life cycle cost approach Include a proactive preventive maintenance program (CMMS) Utilize a geographic system (GIS) for tracking and management of assets

Implementation Issues With Asset Management Baseline Personnel Philosophy Execution/follow-through Buy-In

Where Do You Begin?

Application - Baseline/Format Treatment Plants Pump Stations (both Water and Wastewater) Tanks Pipelines Vehicles/Rolling stock

Capture Your Asset

Simple is Good Plant Equipment Current AgeCurrent ConditionInitial R&R WATER TREATMENT Low Service Old Building Low Service Pump #410Good Low Service Pump #4 VFD7Good Low Service Pump #540Fair $30,000 Low Service Pump #640Fair Traveling Screen40Fair Sluice Gate40Fair $5,000 Bar Screen and Bubbler System40Fair $2,500 Overhead Crane40Good $25,000 Building Structure40Fair $47,719 $20,000 Electrical and I/C40 +/-Fair

Evaluation Team Systems Manager Engineering Superintendent Project Manager GIS Specialist Operations Superintendent Chief Operators Maintenance Supervisor Systems Superintendent Crew Foremen Shop Foreman Admin Assistant

Evaluation Team Engineering Maintenance Operations

The Process Tour facilities and check your assets Review CMMS and Accounting records Round table discussion Update your Spreadsheet

Additional Issues Timing Tweaking Buy-In

Asset Management Uses Budget (Operational and Capital) Sanity Check

Benefits of Asset Management Direct Peripheral

Mission Creep What gets added unnecessarily? What doesn’t get added?

Additional Uses for Asset Management CIP Budget CMMS GIS Specifications

Turning Data Into Information Spreadsheets Graphics Budgeting software

Updating the Plan Frequency Binders? Electronic? Who Touches it?

Opportunities and Issues Champion Ownership Stewardship Making the business case OT SSO’s Call outs Maintenance Reactive   Proactive

Implications at BGMU BGMU Assets: o WTP – $100 million o WWTP – $55 million o Tanks - $15 million o WPS - $3 million o WWPS - $9 million o Water Lines - $118 million o Sewer Lines – $118 million TOTAL = $418 million Annual Operating Budget = $18,652,662

Summary The costs keep coming. Postponing investment only makes the problem worse. The “Replacement Era” is here. Ultimately, the cost of the renewal we face must come from local utility customers (through higher rates). We must, as utility managers, make difficult choices between competing needs if water and wastewater bills are to be kept affordable.

Questions?