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American Public Works Association presents…
How to Get BUY‐IN for Asset Management Programs Thursday, December 12, 2013: 11:00 am ET/ 10:00 amCT/ 9:00 am MT/ 8:00 am PT
SPEAKERS:
Bob Lowry P.E., PWLF Director of Public Works City of Colleyville
Bob Lowry became the Director of Public Works for the City of Colleyville on July 11, 2011. Prior to that, he served for nearly seven years as the Director of Public Works and Transportation in Arlington, Texas. He also served nine years as the Public Works Director for Overland Park, Kansas. Bob is a native Texan and received his bachelor’s degree from the United States Military Academy at West Point, New York. He began his municipal government service in 1991 in Leavenworth, Kansas, after a twenty‐six year career in the US Army Corps of Engineers. He holds masters’ degrees in civil
engineering and applied mechanics from Stanford University and a master’s degree in public administration from the University of Kansas.
In addition to numerous military awards and decorations, Bob was selected as the Federal Engineer of the Year by the US Army Training and Doctrine Command in 1986 and was designated a Top 10 Public Works Leader of the Year by the American Public Works Association in 2000. In 2003 he was awarded the Distinguished Leadership Award for a public sector employee by the Design‐Build Institute of America and in 2011 he was designated a Leadership Fellow of the American Public Works Association.
Tom Hickmann P.E. Engineering Director City of Bend
Tom is the City of Bend Engineering & Infrastructure Planning Department Director. His primary responsibility is oversight and implementation of all master plans for public infrastructure, and the City’s Capital Improvement Projects. This list includes the Surface Water Improvement Project (single largest CIP project to date), SE Interceptor Project, Water Reclamation Facility improvements, update of Collection System Master Plan, and a Transportation System Plan.
As part of his responsibilities with the City of Bend, he has been required to find innovative ways to deal with difficult issues. This includes being the first entity to have used low cost tank mixing technology to increase
chlorine contact time thus saving rate payers approximately $150,000; bringing forward the use of new hydraulic modeling techniques for developing a minimum investment required to meet existing and new demands and the use of enhanced modeling analyses which have been used nationally as an example for planning and assessing future infrastructure needs of a growing community. Leadership capacity at other associations: AWWA Member, Speaker at PNCWA, and AWWA National conferences Oregon Law Symposium Presenter APWA Member and APWA Accreditation Evaluator, APWA Water Resource Committee member ASCE Member, Speaker at local ASCE meetings
Kevin Ramsey Street Supervisor City of Bend, OR His current responsibilities are the Street Preservation Program including contract management, cemetery, and the Right‐of‐Way Vegetation Program. He oversees the budget and asset management for the Street Department. He has been with the City for 14 years. Kevin saw early the benefit in investing in an asset management program and was a proponent for its implementation at the City of Bend.
Adam Malinowski Program Technician City of Bend, OR Adam has been with the City for 12 years starting out as a street crew member and promoted to Program Technician. He is involved in the daily management and implementation of the City of Bend asset management program for the Street Department using it for tracking condition of the roads, street signs, landscaping, managing the City’s cemetery, and as a tool
to formulate and plan the next year’s construction schedule. MODERATOR:
Alysen Abel, P.E. Civil Engineer, Senior City of Overland Park, Kansas Alysen works as a Senior Civil Engineer for the City of Overland Park in the Planning and Development Department, Engineering Services Division. In this role, she reviews engineering issues associated with commercial and residential development projects, from concept through construction. Prior to working for the City, Alysen spent 9 years working for various consulting engineering companies around the Kansas City Metro area.
Alysen grew up in Indiana. She received a Bachelor's degree in Civil Engineering from the University of Evansville in Evansville, Indiana and holds a Masters' degree in Engineering Management from the University
of Kansas. She recently completed the Certified Public Manager program through the University of Kansas and will pursue a Masters' degree in Public Administration starting Spring 2014. Achievements: Named Young Engineer of the Year through Western Chapter Missouri Society of Professional Engineers (MSPE), as well as Young Engineer of the Year for the state Missouri Society of Professional Engineers (MSPE) ‐ Named Young Leader of the Year for Kansas City Metro APWA, as well as Young Leader of the Year for National APWA in 2009. ‐ Named Edmund Friedman Young Engineer Award for Professional Achievement from the American Society of Civil Engineers (ASCE) in 2009.
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How to Get Buy‐In for Asset Management Programs
APWA Click, Listen and LearnDecember 12, 2013
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Education Calendar
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www.apwa.net
How to Get Buy‐In for Asset Management Programs
APWA Click, Listen and LearnDecember 12, 2013
12/6/2013
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Our Moderator
Alysen Abel, P.E.Civil Engineer, Senior
City of Overland Park, Kansas
Polling Questions
If you are in full screen mode, you will need to minimize the screen to vote
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Our Speakers:
Bob Lowry, P.E., PWLF
• Director of Public Works
• Colleyville, Texas
Tom Hickmann, P.E.
• Engineering Director
• Bend, Oregon
Kevin Ramsey
• Street Supervisor
• Bend, Oregon
Adam Malinowski
• Program Technician
• Bend, Oregon
Learning Objectives
Explain why asset management is a critical function in any public works agency
Correlate why knowing the condition of your assets helps secure funding for operations and maintenance
Determine how an asset management system can benefit front line employees in their day to day work
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Why Is Asset Management A Critical Function In Any Public Works Agency?
• Public infrastructure (roads, bridges, water and sewer lines, public buildings, vehicles and equipment, etc.) comprise the largest investment made by local governments
• Public Works agencies are generally responsible for building, operating and maintaining public infrastructure
• There are never enough resources available to accomplish all that needs to be done
• GASB 34 requires that we do it!
What is an (Capital) Asset
Land, improvements to land, buildings, vehicles, machinery, equipment, works of art and
historical treasures, infrastructure, and all other tangible assets that are used in operations that have initial useful lives extending beyond a single (usually annual) reporting period
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What is Asset Management?
“Asset management is a methodology to efficiently and equitably allocate resources amongst
valid and competing goals and objectives”Findings of the APWA Task Force on Asset Management
August 31, 1998
The optimal management of physical asset systems and their life cycles to achieve best net, sustained
value for money in the selection, design/acquisition, maintenance and renewal/disposal of infrastructure
and equipmentThe Institute of Asset Management
Benefits of Asset Management
• Infrastructure has a significant impact on the economy. It has to function well.
• Provides data that can be used to explain the importance of maintaining existing infrastructure and the costs of not maintaining it
• Assists in the allocation of scarce resources to optimize their impact
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How Do We Do It?
• Develop asset inventory • Assess condition of assets • Determine residual life• Determine life cycle and replacement costs• Set targets for level of service• Determine business risk• Optimize operations and maintenance investment• Optimize capital investment• Determine funding strategy• Build infrastructure management plan
Where Do We Start?
• The first step in asset management is knowing what you have and where it is ‐
i.e., a complete (documented)
inventory and good maps
• Knowing the age and condition of the assets then allows us to determine the remaining useful life – and then the “fun” begins
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Then What?
• Every asset has a useful life and it differs depending on the asset– Underground pipes (water, sewer and drainage) tend to last the longest
– Computers and printers
have to be replaced much
more often
– Vehicles and equipment fall somewhere in between, and their life expectancy is often more dependent on usage than age
Sticker Shock
• Determining the replacement cost of a mile of road or a dump truck is a relatively simple task.
• Aggregating the replacement costs of all the assets for which Public Works is responsible, and communicating that to the decision makers results in really big numbers and often causes sticker shock $ 615,823,000
• Do you know how much it will cost to replace all of your infrastructure?
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How Good is Good Enough?
• Everyone wants good
streets
• Everyone EXPECTS water
to flow when the faucet is
turned on
• Everyone EXPECTS toilets to flush and not back up
• What happens when expectations are not met?
How Good is Good Enough?
• Some standards are mandated (i.e., sign
reflectivity, ADA, NPDES)
• Others are based on stakeholder/
customer expectations (i.e., pavement condition)
• Levels of service are often fiscally
constrained
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How Do We Decide Where to Put Our Resources?
• There are never enough resources to do all that needs to be done in terms of maintenance and reinvestment
• What are the greatest risks?
• Operations and Maintenance (O&M) or Renewal and replacement?
Operations and Maintenance
• Must be funded on a recurring basis
• Pro‐active maintenance reduces the likelihood of breakdowns
• O&M is the “bread and butter” of Public Works
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Renewal and Reinvestment
• Requires good long range planning – a strategic view
• Can be debt financed
Bottom Line
• We can’t wait for things to break before we have plans and resources allocated to fix/replace them.
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How Much is Enough?
Where Can We Find Money?
• Property Taxes
• Sales Tax
• Franchise Fees
• Utility Charges
• Savings from more efficient programs (energy conservation)
• Grants
• Bonds
• Under the mattress
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Summary
• Asset management is all about planning for the future
• “The more you sweat in the planning, the less you will bleed in the battle”
Admiral Hyman G. Rickover
If you are in full screen mode, you will need to minimize your screen view
the question pod.
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Case Study of Asset Management Implementation
• What was the process used ?
• Where did the process begin ?
• What the process was like ?
• How long did it take ?
• Where did it end ?
• What was the difference in the process for management vs. staff ?
• What went well ?
• What did not go well ?
• What would be done differently ?
A Little Bit About The City Of Bend
• Population of over 80,000• Rapid growth through the 90’s and early 2000’s
1990 Population was approximately 30,000 By 2005 we hit 80,000 (Still Growing)
• Approximately 450 miles of linear assets Streets and Pipes
• Approximately 15,000 valves• Tens of thousands of signs• Thousands of curb ramps• More than 400 sewer pump stations• 11 Major water facility sites• Water Reclamation Facility• More than 7,000 stormwater assets
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Major Concerns in 2005
• Very little data on any of the infrastructure
• Majority of information was in peoples heads
• Nearly 50% of staff approaching retirement
• Budgeting was based on “reasonable” assumptions
• Major infrastructure investments were needed
• Economy began to slow and budget concerns began to grow
Asset Management is an Evolution
• For most entities, advancing their asset management is driven by outside forces
• Asset management change will begin in a single area and grow to other areas
• The path of evolution you choose will determine how rough the ride will be and how much buy in you get
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Our Story of Evolution in Asset Management
In the beginning……
Water and Sewer Utilities separately recognized the need to have better asset management
Drivers:• Budget Justification• Staffing Needs• Did not have good data for engineering decisions
• Difficulty isolating leaks• Condition assessment• No easy way to pull data
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What We Started With…..
Is it here?
Is it here?Is it here?
Why Was Our System A Problem?
How do I manage this?
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What We Did……
The Journey Begins……..
Data collection became the priority• Started collecting physical characteristics in a spread
sheet Valve locations and settings Pipe sizes Operability Date and age of equipment Pump information Flow information Pressure information Etc…..
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The Journey Continues…..Realized we needed something more systematic• Hired a GIS Consultant
Developed an architecture for the information within GIS Asked crews, supervisors, managers what information they were
looking for from the information Ensured integration with other software programs Developed a process for data input and modification
Went out with an RFP for an Asset Management Software Program• Worked with other entities who had already purchased programs• Worked with IT to develop a contract with vendor• Picked a vendor• Started with area that had the most information
• Water Reclamation Facility
A Parallel Path Develops
The Journey Continues…..
Data Collection and Updating of GIS Information• Verified Data• Compared information with older prior information• Watched two perspectives develop
Management and Engineers Everyone Else
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Change Begins and Grows
Change Continues• The project grew to incorporate street infrastructure
• Problems began to show because the original desire was focused on water and sewer assetsNeeds of information for water and sewer were different
Needs of information for streets was completely different
• Management changed what information they wanted Time tracking associated with maintenance Flow informationPump performance and run time informationDesire to integrate with SCADA
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Where Are We Today
Where Are We Today
• Majority of infrastructure assets are in the system• Maintenance is being tracked• Costs of maintenance are being tracked• Condition of assets are being tracked• Maintenance requirements are documented• Data verification continues
• Results of Asset Management is allowing better budgeting and budget justification
• Staffing needs are better understood
• Data quality is vastly improved allowing much better engineering
• Better integration of engineering with field crews
• More factual discussion between management and staff
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Where Are We Going With Asset Management
• Providing decision makers with real time information
• Learning new questions to be asked
• Developing new reporting
• Developing better business processes
• Providing information to the public
• Realization of constant learning
Upper Management Says Were Ready To Go!
Now The Real Work Of Implementation Begins!
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Now the Good,the Bad and the Uglyof Asset Management
UGLY
• Overconfidence in old existing data
• Not knowing where to start
– Utilities vs. Transportation business practices and work flows
• Not knowing what information management needed
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BAD
• Cost and manpower it takes to
implement programs and keep it running
• Avoid pitfalls that would trigger a reset
• Bad Data in=Bad Data OUT!
Good
• Accurate usable data
• Show upper mgt. and city council trends &
deficiencies to aid in budget decisions
• Help in scheduling and managing workload
• Crew accountability
• Goal setting targets
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BUY IN! Without crew buy in you are doomed to fail!
How do you get crew buy in? • Don’t use as a time card, accurate data for actual work performed
• Involve crews in setup of their individual work groups
• Show crews true real time costs for normal daily activities
• Assign responsibilities to certain team members for success of the program
• Acknowledge those programs and crews for increased efficiencies and production
Lessons Learned
• Time spent up front planning will pay off in the end• Time consuming
– Data Collection– Staffing– Maintaining
• Value of the ability to show how much work is actually accomplished
• Ability to see where dollars are being spent from budget, and make adjustments
• Crew efficacy! “What you do matters and has value” • ”You can’t manage what you don’t know you have”
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Contact Information
Tom Hickmann
514‐317‐3029
Bob Lowry
817‐503‐1096
If you are in full screen mode, you will need to minimize your screen view
the question pod.
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Please remember to fill out the online survey at:https://www.surveymonkey.com/s/asstmgt
This program is worth .2 Continuing Education Credits.To request your CEU’s you must complete the survey.
Thank you!
The American Public Works Association has been accredited as an Authorized Provider by the International Association for
Continuing Education and Training (IACET),
1760 Old Meadow Road, Suite 500, McLean, VA 22102; (703) 506‐3275.
