1. Asset Management Scott Matthews January 22, 2004

2. Recap: Infrastructure/ Mgmt  Infrastructure  The underlying, often hidden foundation of a society’s wealth and quality of life.  its system of public facilities, both publicly and privately funded, which provide for the delivery of essential services and a sustained standard of living  Infras. Mgmt.  Administrative process of creating, planning, and maintaining our infrastructures  An integrated, inter-disciplinary process that ensures infrastructure performance over its life cycle  Life cycle is entire time from design through decommissioning

3. Asset Management  More specific than Infras. Mgmt.  Focused on transport. Assets  Assets = $ + people + physical resources!  Guided by: performance goals, time horizons, engineering / economics  High-level assessment of trade-offs between alternatives  Quantitative and qualitative data  Source: ‘Asset Mgmt Primer’, DOT 1999

4. Why?  1960s-80s: Focus on building HIS  Since then: preserving/maintaining  More important: efficient govt (business)  System, Budget & Personnel Demands  Doing more with less

5. Government Acct Standards Board (GASB)  Asset approach for state financial reporting  Just like private companies do  Costs, revenues of providing services  Historical cost estimate or current replacement cost  Depreciation allowed (SL, condition)  Exempt if subject to Asset Mgmt AND in better than planned condition  Asset Mgmt system should contain:  Inventory  Updated condition assessment  Expected annual maintenance costs

6. Investment Decision Making Use Pavement and Bridge Management Systems

7.  Asset Mgmt is strategic rather than tactical

9. Bridge Management Systems  Inventory and condition ratings  Deteriorating prediction features  How and when to spend money on bridges to maintain/preserve condition  PONTIS Demo  Even though features exist, most states use it only for inventory/database  Economic prediction parts ignored - worst first mentality

10. For Next Time  Lemer (96) paper - obsolescence and service life  “Theory” of obsolescence, maintenance, etc.