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NEORSDAsset Management Assessment

Agenda

• NEORSD history / responsibilities• Project drivers• Overview of this project• Strategic insights• Lessons learned

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

NEORSDKey Responsibilities

• WWTP Operation - Easterly, Southerly, Westerly

• Combined and Separate Interceptors - Construction, Operation and Maintenance

• Combined Sewer Overflow (CSO) Control

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

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

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

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?

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

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

• 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

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!

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Questions?

Thank you.