1. Creating a SUSTAINABLE Utility
Sammamish Plateau Water

2. Presentation Outline About US Our process SP Water’s Approach
Using a cross-functional team
SP Water’s Approach
Our Results
Our Next Steps

3. Sammamish Plateau Water
Bellevue
Sammamish Plateau Water
Seattle

4. Sammamish Plateau Water
Parts of Sammamish, Issaquah and unincorporated King County
29 square miles
Population about 64,000
Median household income $147,000
Bachelor degree or higher: 72.5%

5. Sammamish Plateau Water
Water connections: 18,000 - Water sales 1.8 billion gallons a year
Sewer connections: 12,000
Replacement value: $1,017,414,000, includes assets above and below ground
2017 budget: $36,000,000

6. Our Mission
Sammamish Plateau Water will provide safe, efficient, and reliable water and sewer services by being a leader in the planning and the practice of fiscal and environmental stewardship

7. We Will Be The Best in Class Utility
Our Vision
We Will Be The Best in Class Utility

8. Our process Management process alignment removed silos
paired with cross-functional teams
removed silos
changed organizational culture
and enhanced decision making

9. Maturation of Systems for Better Decisions
Operating Plan
Capital Plans
GIS
CMMS
Budget
Prior investment in technology applications and tools

10. Functional Classifications
Water
Administration
Wells and Production
Water Treatment
Booster Stations
Storage
Mains and Appurtenances
Meters
SCADA
Sewer
Administration
Lift Stations
Mains and Appurtenances
Grinder Pumps
SCADA

11. Alignment of Processes
Asset Management Plan
Operating Plan
Budget
Capital Plan
Comp Plan
Asset Management Plan: Management of infrastructure to optimize operations and replacement for sustainability
Operating Plan: Procedures to deploy, operate, maintain, and dispose of assets to achieve the lowest life-cycle cost
Budget: Assign resources based upon asset condition and criticality, and intergenerational equity
Capital Plan: Use Business Case Evaluations to justify and prioritize projects
Comprehensive Plan: System-wide Infrastructure Planning
Business Metrics: Ongoing measurements to ensure continuous improvement and business performance
Business Metrics
Jillian

12. SP Water’s Approach
Embrace asset management - leadership and Board support required
Asset management is a priority, we added new staff
Deliberately create an asset management culture with training
Cross functional team
Start small use pilot projects
Right-size the program and involve the right people
Have the courage to try, then step back and redo
Reach out to others – experts and practitioners
Keep your program alive and evolving
Use asset management to tell your story

13. Stewardship and Sustainability
Sustainability with Asset Management (industry best practice)
Reserves set aside for future infrastructure replacement
Capital Replacement Reserve Formula
ASSET VALUE / USEFUL LIFE
X REPLACEMENT VALUE ASSUMPTION
= ANNUAL REPLACEMENT CONTRIBUTION
You can keep taxes or rates low, but can you afford the long-term cost of unfunded replacement liabilities?

14. 20-Year Capital Replacement Cash Flow Projection

15. Asset Management Long-term Perspective

16. Our Results A “working” asset management plan Infrastructure strategy
Asset management culture
Rates aligned with long-term goals
O&M Optimization
Business case for capital spending
Informed elected officials
Infrastructure strategy
Performance expectations
Satisfied customers
Continual improvement
Live fiscal model
We can tell the story

17. Our Next Steps Reliability Maintenance Management
Enhanced Condition Assessment Program
SMART Utility Applications – “GIS Centric” Enterprise Solution for a Comprehensive Utility Asset Management and Preventative Maintenance System
Had a peer review – implementing recommendations for continuous improvement

18. Utility Best in Class Practices
Can You Answer the following questions:
Do you have an asset registry?
Do you know the age, condition, replacement value and expected replacement year of your assets?
Does your rate model forecast out replacement needs until all assets have been replaced?
Do your rates recognize and fund future replacement costs?
If Not, LOOK OUT FOR THE CLIFF.
Not many utility asset management programs have matured to our level
Crumbling infrastructure, artificially low rates
True cross functional orientation

19. Words of Wisdom Make it a process not a plan
Involve Information Technology on the front end – They make things work
Not one person can do it – It takes a team
Use asset management to inform elected officials
Sooner or later someone will pay for unfunded liability
Not cross functional dysfunctional

20. Discussion