Implementation of an Asset Management Program at …

1 Implementation of an Asset Management Program at colorado Springs Utilities David Totman, Manager Asset Management colorado Springs Utilities Asset Management Program Implementation of an Asset Management Program at colorado Springs Utilities The Asset Management system, tools, and planning process used to develop a sustainable CIP solution for colorado Springs Utilities buried infrastructure. Asset Management Program Presentation Indicators Definition/framework 7-Step Program Tools 3. Asset Management Program Why a CIP? Benefits of a Capital Improvement Plan: _____. Comprehensive list of projects Understand budget peaks and valleys flatten Infrastructure sustainability aging infrastructure Source of communication to customers Components: Business case Prioritized list with time lines Funding mechanism 4.

2 Asset Management Program Indicators 5. Asset Management Program Definition International Infrastructure Management Manual The combination of Management , financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost-effective manner.. A simple to follow 48-step Program . 6. Asset Management Program Definition Key words: Physical infrastructure assets A defined standard of service A whole-life cost approach Financial, social, and environmental sustainability Cause and effect Inventory Events 7. Asset Management Program 7 Step Program Inventory assets Inventory programs Service levels Roles and responsibilities Risk = (Probability of Failure) X (Impact of Failure).

3 Forecast Budget 8. Asset Management Program Inventory assets Asset classes Data collection Data integrity Data access 9. Asset Management Program Inventory programs programs that touch the Asset life cycle Integrate data into work flow Sustained funding mechanism 10. Asset Management Program Service levels LOS w/respect to Asset service life LOS w/respect to customer expectations LOS w/respect to customer rates (or taxes). Correlate Program effectiveness to LOS. 11. Asset Management Program Roles and responsibilities Functional duties w/respect to Asset life cycle Personnel providing those functions Correlate roles and responsibilities to service levels and Program delivery per Asset class 12.

4 Asset Management Program Risk Criticality Condition Probability of failure Impact due to failure Develop risk profile per Asset 13. Asset Management Program Risk - criticality Physical properties Functionality Value 14. Asset Management Program Risk - condition Quality - structural integrity Quantity - capacity 15. Asset Management Program Risk - failure Historical performance Industry knowledge Environmental conditions Operational demands 16. Asset Management Program Risk - impact Structural Loss of property Loss of life Triple Bottom Line Financial Social Environmental 17. Asset Management Program Forecast % useful life age % actual life condition Optimize preventative and corrective maintenance 18.

5 Asset Management Program Budget Optimize budget spending Accurate depreciation Asset level general ledger Asset level system value 19. Asset Management Program Tools Class Degradation Curves: Concept Example at colorado Springs Utilities Traffic Light Maps age vs condition Bath Tub Curve: Concept Example at colorado Springs Utilities 20. Asset Management Program Class Degradation Curves 100%. 100%. De la ye d Capability No Class B. r m al Ac ce le r at ed 100%. Class A. Class C. Failure Time 21. Asset Management Program Specific Degradation Curves 110. 100. 90. 80. 70. Line 60 Circle PolyLong 50 PolyMid PolyShort 40. 30. ' y = -ax^3 + bx^220 - cx + R. DegCurvePoly = 10(ValX3 * AssetVal ^ 3) + (ValX2 * AssetVal ^ 2) + (ValX * AssetVal) + 100.

6 0. 0 10 20 30 40 50 60 70 80 90 100 110. 22. Asset Management Program Aging Infrastructure - Water Per Material Potable Water CIP. DIP. Miles HDPE. OTHER. PVC. STEEL. 0 10 20 30 40 50 60 70 80 90 100. Age (Years). 23. Asset Management Program Driver? National Call to Arms in AM education 48 Step Program Internal Asset Management 7 Step Program Stakeholders Traffic Light Maps Enterprise RED = STOP = REPLACE / REHABILITATE. YELLOW = CAUTION = MONITOR. GREEN = GO = CONTINUE NORMAL O&M. 24. Asset Management Program Condition 1 Excellent Do Nothing 2 Good Maintain Condition Capability 3 Fair Rehabilitate 4 Poor CIP. 5 Very Poor Replace Failure 100% 0%. % Useful Time Life 25. Asset Management Program Base Map Woodmen Powers I-25.

7 26. Asset Management Program Water Depreciation Aggressive Gradual 27. Asset Management Program The Bath Tub Curve Startup Probability of Failure ut rO. a We How long? Useful Life Time 28. Asset Management Program Failure Model 29. Asset Management Program Failure Model 30. Asset Management Program Water Main Replacement Program Business case Prioritized list of projects (backlog). Statistical methods Funding mechanism Level of service Plan of action for Cast Iron Pipe . 31. Asset Management Program Questions?