1. 1 Community Asset Management Program (CAMP) Asset Management GFOA Presentation April 3, 2007 Step 3 Visioning Step 4 Design Step 5 Pilot/Rollout “As Is”, “To Be” Definition Based on Best Practices Orientation on Best Practices Concepts Gap Analysis & Business Case Implementation, Support & Benefits Tracking Alignment, Vision, Mission, Mandate for Change Continuous Improvement Step 2 Review Step 1 Education Step 6 Sustainability

2. 2 What is Asset Management? An integrated set of process to minimize the life-cycle costs of owning, operating and maintaining assets, at an acceptable level of risk, while continuously delivering established levels of service.

3. 3 Asset Management Best Practices Knowledge of:  Levels of Service  Assets owned  Physical condition of assets  Performance of assets  Current utilization and ultimate capacity Ability to:  Predict future demand  Predict asset failure modes and risk analysis  Analyze alternative mitigation options  Rank options based on economic-risk analysis  Match options available budget  Optimize O&M activities

4. 4 Knowledge of: Asset owned  Asset hierarchy  Begin at a high level and group smaller assets  Eventually to lowest managed component  Asset numbering/ identification system  Logical & simple system  Unique IDs but linked to hierarchical assets  Single/dual database  CWMS – vertical/rolling assets  GIS - linear assets  Asset register  Identifier  Type  Location  Manufacturer  Size/capacity  Material  Costs (original & replacement)  Installation/construction/ in-service date  Service life (initial & remaining)  Condition & performance grade

5. 5 Proceed Top-Down along logical steps Implementation Plan Gather data by highest risk asset Run predictive model Refine maintenance actions Condition Assessment Populate Asset Register Select and prioritize CIP projects Establish Levels of Service Develop basic asset hierarchy Determine criticality and probability of failure Perform high-level risk assessment Prioritize assets by risk TopDownTopDown TopDownTopDown BottomUpBottomUp BottomUpBottomUp

6. 6 Develop basic asset hierarchy  Initially, stay at Level 4 (subcomponent) and above  Group subcomponents as appropriate  Develop hierarchy based on available information

7. 7 Asset Hierarchy Example Water System Treatment Plant Raw Water Clarification Clarifier 1 Flash Mixer 1 Clarifier 2 Filtration Disinfection Pumping Distribution Storage

8. 8 Asset Definition  Decision  What level is the asset defined at for capitalization  May be different for collecting costs for repair/replace decision making