Denver International Airport Facility Management Performance Audit

Transcription

1 Denver International Airport Facility Management Performance Audit February 2012 Office of the Auditor Audit Services Division City and County of Denver Dennis J. Gallagher Auditor

2 The Auditor of the City and County of Denver is independently elected by the citizens of Denver. He is responsible for examining and evaluating the operations of City agencies for the purpose of ensuring the proper and efficient use of City resources and providing other audit services and information to City Council, the Mayor and the public to improve all aspects of Denver s government. He also chairs the City s Audit Committee. The Audit Committee is chaired by the Auditor and consists of seven members. The Audit Committee assists the Auditor in his oversight responsibilities of the integrity of the City s finances and operations, including the integrity of the City s financial statements. The Audit Committee is structured in a manner that ensures the independent oversight of City operations, thereby enhancing citizen confidence and avoiding any appearance of a conflict of interest. Audit Committee Dennis Gallagher, Chair Maurice Goodgaine Leslie Mitchell Rudolfo Payan Robert Bishop Jeffrey Hart Timothy O Brien, Vice Chair Audit Staff John Carlson, Deputy Director, JD, MBA, CIA Dawn Hume, Internal Audit Supervisor Marcus Garrett, Lead Internal Auditor, CIA, CGAP Emily Sheets, Lead Internal Auditor, MS Travis Henline, Senior Auditor You can obtain copies of this report by contacting us at: Office of the Auditor 201 West Colfax Avenue, Department 705 Denver CO, (720) Fax (720) Or download and view an electronic copy by visiting our website at:

3 City and County of Denver 201 West Colfax Avenue, Department 705 Denver, Colorado FAX Dennis J. Gallagher Auditor Ms. Kim Day, Manager Department of Aviation City and County of Denver Dear Ms. Day: February 16, 2012 I would like to acknowledge the strong partnership between my office and the Denver International Airport (DIA). Over the last few years, working in collaboration with my audit staff, DIA has engaged in meaningful assessment of potential risks to airport operations and the City. DIA leadership has repeatedly shown that they understand the value of a strong audit function and the benefits that concrete audit recommendations can provide. This audit is the most recent example of this mindset. The purpose of this performance audit was to assess current and proposed facility management plans utilized by the DIA Maintenance Division (Division). A well-maintained airport will facilitate economic growth not only for the City but also for the state and surrounding region. While we praise DIA s proactive approach and its desire to implement a comprehensive facility management plan, we must note that significant work is required to make this a reality. Our work indicated that key elements are missing in the current facility management program. Specifically, the Division does not have an adequate asset management strategy and does not consistently track all assets. The Division can improve its workforce succession planning by utilizing best practice strategies identified in the report. Finally, the maintenance approach should be augmented to address impediments that prevent the Division from transitioning to a more cost-effective maintenance program. The success of DIA is largely dependent on passenger satisfaction, which is directly linked to how well facilities are maintained and managed. As a result of the issues identified in our audit, we offer several thoughtful recommendations to assist DIA when planning necessary maintenance activity. If you have any questions, please contact Kip Memmott, Director of Audit Services, at Sincerely, DG/th Dennis J. Gallagher Auditor cc: Honorable Michael Hancock, Mayor Honorable Members of City Council Members of Audit Committee To promote open, accountable, efficient and effective government by performing impartial reviews and other audit services that provide objective and useful information to improve decision making by management and the people. We will monitor and report on recommendations and progress towards their implementation.

4 Ms. Janice Sinden, Chief of Staff Ms. Stephanie O Malley, Deputy Chief of Staff Ms. Cary Kennedy, Chief Financial Officer Mr. Doug Friednash, City Attorney Mr. L. Michael Henry, Staff Director, Board of Ethics Ms. Janna Bergquist, City Council Executive Staff Director Ms. Beth Machann, Controller Mr. Ken Greene, Deputy Manager of Operations, Public Safety, and Security Mr. Ron Morin, Interim-Deputy Manager of Aviation, Field Maintenance Director Mr. Patrick Kelly, Interim-Deputy Manager of Aviation, Technical Maintenance Director To promote open, accountable, efficient and effective government by performing impartial reviews and other audit services that provide objective and useful information to improve decision making by management and the people. We will monitor and report on recommendations and progress towards their implementation.

5 City and County of Denver Dennis J. Gallagher Auditor 201 West Colfax Avenue, Department 705 Denver, Colorado FAX AUDITOR S REPORT We have completed a performance audit of the Department of Aviation s Facility Management program. The purpose of this performance audit was to assess facility management plans utilized by Denver International Airport s (DIA) Maintenance Division (Division), to ensure an effective maintenance approach is utilized by the Division, and to identify possible inefficiencies and opportunities for improvement. This performance audit is authorized pursuant to the City and County of Denver Charter, Article V, Part 2, Section 1, General Powers and Duties of Auditor, and was conducted in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The audit revealed that the Division has not taken the necessary steps to implement a robust asset management plan. Our work identified multiple opportunities for improvement including developing a comprehensive facility management planning strategy, consistently and accurately tracking assets, preparing an effective succession strategy to address a retirementeligible workforce, and transitioning to a maintenance approach suitable for a facility the age of DIA. By addressing these areas moving forward, DIA should be well situated for future success. We extend our appreciation to the Department of Aviation staff that assisted us during the audit. Audit Services Division Kip Memmott, MA, CGAP, CICA Director of Audit Services To promote open, accountable, efficient and effective government by performing impartial reviews and other audit services that provide objective and useful information to improve decision making by management and the people. We will monitor and report on recommendations and progress towards their implementation.

6 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 To Fully Execute its Facility Management Program, DIA Needs to Develop a Comprehensive Asset Management Plan 1 INTRODUCTION & BACKGROUND 5 SCOPE 9 OBJECTIVE 9 METHODOLOGY 9 FINDING 11 To Fully Execute its Facility Management Program, DIA Needs to Develop a Comprehensive Asset Management Plan 11 RECOMMENDATIONS 24 APPENDICES 25 Appendix A DIA Maintenance Division Organizational Chart 25 AGENCY RESPONSE 26

7 EXECUTIVE SUMMARY Denver International Airport (DIA) opened 17 years ago in The facility spans nearly 34,000 acres and includes one main terminal, three separate concourses, and six runways. DIA s Maintenance Division (Division) is tasked with maintaining the DIA facility, including both indoor and outdoor areas. The success of the airport largely depends on how well the facilities are maintained and managed by the Division. Top-ranked airports in the world, based on passenger satisfaction, prioritize maintenance fundamentals such as clean surroundings, comfortable waiting areas, and ease of movement through the airport. 1 In addition, satisfied passengers are likely to spend more money at airport retail establishments, which generates sales tax revenue for the City. To Fully Execute its Facility Management Program, DIA Needs to Develop a Comprehensive Asset Management Plan The current facility management program at DIA does not have fundamental elements in place. Specifically, the Division does not have an adequate asset management strategy, is not fully maximizing its asset management software, and must sufficiently plan for succession within its workforce. These issues all hinder the Division from utilizing cuttingedge and cost-effective maintenance strategies. Facility Management Strategy is Inadequate to Effectively Plan for Maintenance Needs There are three issues noted with respect to the Division s forecasting and budgeting process that demonstrate the ineffectiveness of the current planning strategy. Ability to Address Sudden Equipment Failures can be Enhanced DIA s central plant the heating and cooling system has recently experienced failures, which the Division was unprepared to address. More specifically, a chiller in the central plant failed in July 2011 and remained inoperable as of January Prior to the failure of this chiller, it had exceeded its useful life, but the Division had not planned for replacement. Inadequate Planning for Unexpected Costs The Division does not plan for unexpected maintenance costs. Based on a review of the Division s budget and 1 Incheon International Airport named Best Airport Worldwide, Airports Council International, accessed September 22, 2011, J.D. Power and Associates, Although Technology May Help Improve the Airport Experience, the Basics Have the Greatest Impact on Passenger Satisfaction (2010): accessed September 22, 2011, 2 A chiller is a major component of the refrigeration system that provides water-cooled air throughout the airport. P a g e 1 Office of the Auditor

8 interviews with key personnel, contingency funds are not maintained for highdollar assets, such as the tent roof or the chillers. Unknown Condition of Assets The Division does not know the condition of all assets when budgeting for maintenance costs. Asset condition should play a major role in determining the priority of maintenance needs and amount of resources needed for maintenance. The Federal Real Property Council supports asset-condition assessment as a best practice. 3 Further hindering the planning and budgeting process, the Division does not track many key performance measures that assist management in measuring the effectiveness of their maintenance strategies. This includes one key measure used by the Airport Cooperative Research Program, the International Facility Management Association (IFMA), and other airports: maintenance cost per square foot. Tracking and monitoring key measures provides a methodology for Division management to tie decisions to concrete data, and allows the Division to better justify expenditures and prioritize maintenance needs. Asset Management Program Best Practices An important component of facility management is an effective asset management program, which emphasizes managing an asset throughout its full life-cycle planning, acquisition, maintenance, renovation, and disposal. Federal Executive Order instructs federal agencies to implement a comprehensive asset management program for all real property. 4 In addition, three of five respondent airports to our benchmarking survey reported using a comprehensive asset management program. Division management recognizes asset management programs as a best practice; however, such a program has not been implemented. The Division has launched an asset management pilot program by utilizing a consultant to conduct a baseline condition assessment of the passenger loading bridges. The Division is not Fully Maximizing Asset Management Software The Division has not input all capital assets into its asset management software program, Maximo, and primarily utilizes Maximo to generate preventative maintenance and service call work orders, which does not maximize the software s asset management capabilities. Further, while Maximo has the ability to track a multitude of data elements identified as best practice, the Division does not consistently enter this information. Underutilization of Maximo has several negative effects including the inability to identify the types and the number of assets the Division possesses, to The Division should fully utilize its existing technology prior to investing in a new system. determine the value of an asset, and to rely on data and internal reports used for decision making. The Division has expressed interest in using Building Information 3 Executive Order 13327, Federal Real Property Asset Management, 69 Fed. Reg (Feb. 4, 2004) established the Federal Real Property Council. The Council is responsible for creating asset requirements for federal agencies. For more information refer to 4 Ibid. City and County of Denver P a g e 2

9 Modeling technology, which can enhance facility management practices; however, the Division should fully utilize its existing technology prior to investing in a new system. Workforce Succession Plan Must Include Additional Key Elements Due to a large number of retirement-eligible employees and a lengthy, difficult hiring process, the Division faces significant challenges developing workforce planning strategies. Division management, in conjunction with the Career Service Authority (CSA), conducted an analysis and determined that twenty-five percent of Division personnel will be eligible to retire in three to five years. In addition, CSA 2011 recruitment data shows that it took the Division an average of 103 days to fill an open position. 5 The technical nature of many of the Division s positions makes it challenging to find qualified candidates, further prolonging the hiring process. Although the Division has created a succession plan, it has not fully incorporated all available workforce planning strategies as identified by federal and industry best practice, including implementing internal crosstraining activities. A Lack of Information in Maximo is Preventing DIA from Transitioning to a More Cost-Effective Maintenance Program The Division relies heavily upon a reactive maintenance approach which focuses on responding and fixing problems and asset failures as they occur rather than preventing and predicting problems. A reactive maintenance approach is more costly and less effective for facility maintenance. IFMA suggests that relying on a reactive strategy is more appropriate for new facilities, since the risk of equipment failure is low. Now that DIA is 17 years old, the Division s maintenance strategy should be adjusted to a more comprehensive approach. Transitioning to a predictive maintenance approach, one that determines maintenance tasks based on asset condition, has many benefits. A functional predictive maintenance program increases a facility s return on investment and provides, on average, the following savings to 30 percent reduction in maintenance costs 70 to 75 percent reduction in breakdowns 35 to 45 percent reduction in downtime Research indicates the most cost-effective maintenance program is a reliabilitycentered maintenance program (RCM), which has many of the same benefits as a pure predictive maintenance approach. Typically, RCM uses a mixture of all three types of approaches reactive, preventative, and predictive and takes into account that not 5 A copy of the Career Service Authority Recruiting Report, was provided to the Audit Team on November 7, The report measured the time between the certification date to the effective date that a promotion or new hire was confirmed. In 2011, section manager final approval to posting (forty-four days) plus average of select DIA Maintenance Division sections recruiting period (fifty-nine days) totaled 103 days. 6 U.S. Department of Energy, Operations & Maintenance Best Practices: A Guide to Achieving Operational Efficiency, (August 2010): accessed December 14, 2011, P a g e 3 Office of the Auditor

10 all assets are equally important to the overall mission, prioritizing maintenance tasks accordingly. The Division has expressed interest in moving towards a more cost-effective approach, but lacks the basic information necessary to do so. This information includes having a master list of all assets maintained by the Division, assigning a priority to each asset, and knowing the condition of each asset. City and County of Denver P a g e 4

11 INTRODUCTION & BACKGROUND History of Denver International Airport The City and County of Denver owns the Municipal Airport System, which includes Denver International Airport (DIA) and the former Stapleton International Airport (Stapleton). 7 Construction on Stapleton began in Although Stapleton expanded multiple times, air traffic reached full capacity in the late 1980s. In 1994, the Department of Aviation became an independent City department tasked with operating the Municipal Airport System, and the Manager of Aviation began reporting directly to the Mayor. Once DIA officially opened in 1995, Stapleton was decommissioned and redeveloped into a multi-use area. 8 DIA was built on nearly 34,000 acres of land and includes one main terminal, three separate concourses, and six runways. The four busiest airports in the United States Hartsfield-Jackson Atlanta, Chicago O'Hare, Los Angeles International, and Dallas/Fort Worth International Airport could fit inside the 53-square-mile DIA parcel. 9 When Stapleton was decommissioned, a number of assets were transferred from Stapleton, including some passenger loading bridges and components of the heating and cooling system. Accordingly, DIA s Maintenance Division (Division) found itself maintaining both old and new airport assets. One of the more well-known and visible features of the airport is the Jeppesen Terminal tent roof. The unique covering consists of 15 acres of credit-card thin Teflon-coated fiberglass material draped over 34 masts. The tent roof uses a cable system similar to that of the Brooklyn Bridge and is 126 feet from the terminal floor to its highest point. DIA Maintenance Division The Division has an annual operating and maintenance budget excluding capital improvements of approximately $125 million. 10 The Division employs over 500 full-time employees and is responsible for managing $38 million in contract services. Appendix A contains the Division s organizational chart. The Division s work is critical to the success of the airport because of the wide range of stakeholders who are affected by 7 Department of Aviation Revenue Contract Management, City and County of Denver Auditor s Office, March 2011, 8 Denver International Airport Finance and Administration Division, City and County of Denver Auditor s Office, September 2011, 9 Do You Know DIA? Denver International Airport, 10 Operating and maintenance funds are used to maintain existing assets. Capital improvement projects (CIPs) provide a significant addition, upgrade, or extend the useful life of an asset. CIPs are funded separately. Specific funding sources and allocations are determined through collaborative discussions between the Maintenance Division, the Planning and Development Division, and Financial Planning and Analysis. P a g e 5 Office of the Auditor

12 maintenance practices: air carriers, airline employees, retail establishments, and travelers. The Division s objective is to maintain all city owned facilities, airport operating areas, and equipment at DIA in the most effective and efficient manner. 11 The Division also ensures that all airport facilities remain compliant with Federal Aviation Administration certification. The Division comprises six sections, each of which plays a role in helping DIA meet its objectives. One activity the Division performs is snow removal, which significantly impacts operations. The responsibilities of the individual sections are described in greater detail below. Facilities Maintenance The Facilities Maintenance section maintains and repairs all DIA facilities, which include several million square feet of roofs, walls, ceilings, floors, and doors. The Facilities Maintenance workforce comprises multiple professional trades such as carpenters, plumbers, and painters, as well as heating, ventilating, and air conditioning personnel. Field Maintenance In accordance with rules and regulations promulgated by the Federal Aviation Administration (FAA), the state, and the City, Field Maintenance maintains the 53-square-mile airport site which includes the airport operating area and the functional areas surrounding DIA, such as Peña Boulevard. Field Maintenance completes all repairs and resurfacing of the runways and taxiways in accordance with FAA guidelines. Further responsibilities include airfield painting and landscaping. Fleet Maintenance This section services and maintains all airport-owned vehicles and certain equipment. The goal of Fleet Maintenance is to provide internal customers with safe and reliable equipment repaired in a timely and costeffective manner. Services performed include oil changes, alignment, and diagnostics. Fleet Maintenance oversees one of the largest alternative-fuel and snow-removal-equipment fleets in the United States. Life Safety The Life Safety section maintains the operation of all fire alarm and fire suppression systems at DIA. This responsibility includes the inspection and maintenance of all emergency power equipment including generators, uninterruptable power supply units, and lighting inverters. Life Safety also inspects and services approximately 1,600 fire extinguishers. Maintenance Services The Maintenance Services section provides support for the entire Division, including fielding internal maintenance requests. In addition, Maintenance Services is responsible for the Maintenance Control Center, contract administration, the asset management system, and overseeing contract snow removal. Technical Maintenance This section maintains and supports multiple electrical and electronic systems such as facility and runway lighting, passenger loading 11 Denver International Airport Maintenance Division intranet, accessed July 7, City and County of Denver P a g e 6

13 bridges, closed circuit security cameras, and emergency power systems. 12 The graphics shop, which fabricates and installs most of the signage throughout the airport, is also housed within the Technical Maintenance section. 13 The Concept of Facility Management The International Facility Management Association (IFMA) studies all aspects of facility management and considers the topic the integration of processes within an organization to maintain and develop the agreed services which support and improve the effectiveness of primary activity. 14 In other words, facility Success of the airport is dependent on how well the facilities are maintained and managed by the Division. management is a multi-disciplinary approach, which acts as a support function to ensure that the organization can effectively carry out its primary activities. In the case of DIA, facility management aims to support the primary activity of air travel, and, as discussed above, draws upon the skills of many different professions. The success of the airport is dependent on how well the facilities are maintained and managed by the Division. Both the Airport Council International and J.D. Power & Associates conduct annual passenger satisfaction surveys and have linked facility management directly to customer satisfaction. The most recent results published by both organizations note that top-ranked airports prioritize maintenance fundamentals such as clean facilities, comfortable waiting areas, and ease of movement throughout the airport. In addition, both organizations note that satisfied passengers are likely to spend more at airport retail establishments. In 2011, Business Traveler Magazine awarded DIA the Best in Business Travel Award for the Best Airport in North America. DIA has received this award for the last seven years. Maintenance Program Approach Research identifies four common approaches to administer a maintenance program: corrective, preventative, predictive, and reliability-centered. Corrective Corrective, or reactive, maintenance programs focus on performing maintenance after a problem or failure occurs. Preventative Preventative maintenance programs focus on performing routinely scheduled maintenance tasks to prolong useful life and prevent failures. Predictive Predictive maintenance programs focus on utilizing technology and standards to determine what maintenance is needed and develop maintenance schedules based on the actual condition of the asset, rather than on pre- 12 A passenger loading bridge or jetway is a walkway linking the concourse gate to the aircraft, allowing passengers to board and exit an aircraft. 13 Denver International Airport intranet, accessed July 7, FMpedia, International Facility Management Association Foundation, accessed December 5, 2011, fmpedia.org/gv.aspx. P a g e 7 Office of the Auditor

14 determined timeframes as used in preventative maintenance. Predictive maintenance programs aim to predict equipment failures before they occur, allowing maintenance personnel to take mitigating actions sooner, and thereby reducing maintenance costs. Reliability-Centered Reliability-centered maintenance programs utilize elements from corrective, preventative, and predictive approaches, focusing on predictive elements and incorporating in-depth root-cause analysis of asset failure. When choosing an approach, facility managers often consider a variety of factors including budget, facility age, and facility size. Facility Asset Management System The Division uses IBM Maximo (Maximo), an asset management software tool, to track assets it is responsible for maintaining. Maximo has the ability to manage an asset from purchase to disposal. In addition, Maximo can track a variety of key asset data elements, including asset purchase price, condition, value, and work-order history. Maximo has a variety of other functions, including five important capabilities. Asset Operations Organizing asset operations, specifications, and tracking within a single system. Maintenance Schedules Generating comprehensive maintenance schedules for planned and unplanned activities, resource optimization, and identification of key performance indicators. Inventory Planning Inventory planning to meet maintenance demand. Vendor Management Vendor contract management with comprehensive support for purchase, lease, warranty, and user-defined contracts. Service Level Agreements Establishing service level agreements to help align service levels with business objectives. Division personnel are responsible for inputting items maintained by the Division into Maximo as either an asset or a location. Maximo is capable of tracking a multitude of data elements related to each asset and location contained in the system. When data elements are recorded consistently and accurately, the Division can utilize this information to plan for future asset replacement, budgeting, and maintenance cost monitoring. City and County of Denver P a g e 8

15 SCOPE This audit examined current and proposed facility management plans through November 20, 2011 to ensure that adequate and continuous maintenance occurs on facilities maintained at Denver International Airport. OBJECTIVE To determine how the Denver International Airport Maintenance Division (Division) maintains facilities, we assessed: How the Division plans for maintenance activities and manages its facilities Which maintenance programs the Division uses for long-term operations How a large facility plans for future growth and expansion without disrupting daily operations How a facility effectively transitions to a predictive maintenance strategy METHODOLOGY We utilized several audit methodologies to achieve the objectives. These evidencegathering techniques included, but were not limited to: Interviewing Division management and personnel Reviewing applicable local, state, and federal regulatory requirements Evaluating prior internal audits conducted at Denver International Airport (DIA) Reviewing internal and external facility management audits Evaluating the Division s approach to managing facilities Identifying facility management best practices Benchmarking and researching five other airports San Francisco International Airport (SFO) Dallas/Fort Worth International Airport (DFW) Cincinnati/Northern Kentucky Airport (CVG) Hartsfield-Jackson Atlanta International Airport (ATL) Minneapolis-Saint Paul International Airport (MSP) Reviewing Single Audit and Management Letter findings Touring the DIA facility Analyzing workers compensation data for the Division P a g e 9 Office of the Auditor

16 Reviewing financial information, including identifying budget trends and the Division s Capital Improvement Plan Evaluating the hiring process used by the Division Performing testing of data contained in Maximo City and County of Denver P a g e 10

17 FINDING To Fully Execute its Facility Management Program, DIA Needs to Develop a Comprehensive Asset Management Plan Denver International Airport (DIA) does not have the fundamental elements of a facility management program in place. Specifically, the Maintenance Division (Division) does not have an adequate asset management strategy, is not fully maximizing its asset management software, and must sufficiently plan for succession within its workforce. These issues all hinder the Division from utilizing cutting-edge and cost-effective maintenance strategies. Facility Management Strategy is Inadequate to Efficiently Plan for Maintenance Needs The Division does not have a comprehensive asset management program. Instead, the Division utilizes an informal strategy to plan for maintenance costs, prioritize maintenance needs, and track performance. Industry standards and The strategy currently used by the Division hinders its ability to efficiently plan, budget, and measure performance. best practices information provide specific methods that facilities can use to enhance their facility management practices and formalize their decision-making processes. For example, the federal government requires all its agencies to implement comprehensive asset management programs. Further, other airports have used asset management programs to improve facility management. The strategy currently used by the Division hinders its ability to efficiently plan, budget, measure performance, and implement critical improvements. Current Forecasting and Budgeting Process Leaves the Division Vulnerable to Equipment Failure Even though the Division recognizes asset management programs as a best practice, such a program is not in place. Instead, the Division s planning process involves informal discussions between various levels of DIA management. This process is not adequate to plan for maintenance needs. For example, DIA s central plant the heating and cooling system has recently experienced failures, which the Division was unprepared to address. The main components of cooling equipment consist of four chillers, one of which was relocated to DIA from Stapleton International Airport (Stapleton). 15 Division management provided an estimated useful life for the chillers of 30 to 35 years. Despite the criticality of this equipment and the fact that one of the chillers already surpassed its useful life, the Division did not initiate a formal replacement plan. 15 A chiller is a major component of the refrigeration system that provides water-cooled air throughout the airport. P a g e 11 Office of the Auditor

18 In July 2011, one of the original chillers from Stapleton failed. The Division was assessing replacement strategies but as of January 2012, the chiller remained inoperable. This leaves DIA in a precarious situation: if another chiller fails, the ability to cool the airport will be significantly compromised. The long range strategy for upgrading the condition of the central plant is connected to the plans for the South Terminal Redevelopment Program (STRP). The hotel component of STRP will be serviced by the central plant. Upgrades or the expansion of the central plant are being planned in the context of what the overall needs of the airport will be when STRP is completed. Similarly, the Division does not budget for unexpected maintenance costs. For example, based on a review of the Division s budget and interviews with key personnel, the Division does not set aside contingency funds for high-dollar assets, such as the tent roof or the chillers. Thus, when an unexpected failure occurs with a high-dollar asset, significant monies must be appropriated from another fund for the cost of repair or replacement. Further, the Division does not know the condition of all assets when budgeting for maintenance costs. However, asset condition plays a major role in determining the priority of maintenance needs. The Federal Real Property Council (Council) supports asset-condition assessment as a best practice. Specifically, the Council requires regular condition assessments by all federal agencies for all assets. In addition, Dallas/Fort Worth International Airport (DFW) performs regular condition assessments as part of its asset management program. However, the Division does not track the condition of most of its assets, with the exception of the tent roof. 16 The Division is in the process of piloting a new baseline condition assessment program for all passenger loading bridges and plans to apply the lessons learned to the management of other airport assets. Components of each passenger loading bridge will be evaluated good, fair, or poor condition and cost estimates will be provided for recommended actions such as cleaning, replacing, or repair. This information will be used to determine the strategy for maintaining the passenger loading bridges in the future. While this is an initial step in completing a baseline condition assessment, a similar assessment of all assets is necessary for adequate maintenance planning. The Division Does Not Utilize Key Performance Measures to Monitor Success The Division does not track many of the key performance measures that can assist management in measuring the effectiveness of their maintenance strategies. This negatively impacts the Division s ability to successfully plan for maintenance needs and costs. The Division does measure performance in a number of ways, including meeting budget goals, fleet The Airport Cooperative Research Program, the International Facility Management Association, and other airports all utilize maintenance cost per square foot to evaluate success. availability, service calls and work orders completed, and safety statistics. Although these 16 DIA contractor, Bird Air, is retained once a year to evaluate the condition of the tent roof. City and County of Denver P a g e 12

19 are important measures, the Division does not track maintenance cost per square foot. The Airport Cooperative Research Program (ACRP), the International Facility Management Association (IFMA), and other airports all utilize this measure as a way to evaluate the success of a maintenance program. The ACRP also suggests including more detailed measures, such as measuring maintenance cost per passenger loading bridge or maintenance costs per runway. Other helpful maintenance planning performance measures include estimated useful life and the facility operating current replacement value index. The Council requires federal agencies to report on the estimated useful life of assets to help plan for maintenance needs. This measure is calculated by forecasting the annualized cost to replace an asset and the annual cost to maintain the asset. When the annual cost to maintain exceeds the annualized cost to replace, the useful life of the asset has ended. The graph entitled Calculating Estimated Useful Life demonstrates the relationship between the two measures. The Division does not have estimated useful life information for most assets, including the tent roof. As noted above, the Division is piloting a baseline condition assessment of the passenger loading bridges, which includes estimating useful life. However, the Division is using a contractor to perform the assessment, which comes at an expense. Utilizing this basic forecasting method would allow the Division to obtain estimated useful life information without the expense of a contractor. Yet, in order to utilize this method, the Division would first need to determine the asset replacement cost information, which it currently does not have. Finally, the facility operating current replacement value index is noted by IFMA as a way to gauge the appropriateness of maintenance spending. This measure can be arrived at by dividing total annual maintenance expenditures by current replacement value of all assets. The result represents the level of funding expended to maintain an organization's portfolio of assets. The National Research Council recommends a budget allocation for routine maintenance and repair to be in the 2-4% range when calculating an aggregate current replacement value. 17 Similar to useful life estimates, replacement value information is needed to determine the appropriateness of maintenance expenditures. 17 International Facility Management Association, Research Report #32: Operations and Maintenance Benchmarks (2009). P a g e 13 Office of the Auditor

20 Without monitoring these key measures, the Division lacks valuable information necessary to understand how the organization is performing and whether maintenance spending is appropriate. Further, the Division s planning and budgeting process is hindered. If the Division were to begin tracking and monitoring these measures, Division management would have a methodology by which to tie decisions to concrete data. Tracking this information would also create an audit trail for decision-makers and allow the Division to better justify expenditures and prioritize maintenance needs. Asset Management Program Best Practices are not Employed An important component of facility management is an effective asset management program, which emphasizes managing an asset throughout its full life-cycle: planning, acquisition, maintenance, renovation, and disposal. This management approach enables facility managers to maintain, operate, and upgrade assets using sound business practices, engineering principles, and economic rationale to make decisions. 18 Federal Executive Order instructs federal agencies to submit to the Office of Management and Budget (OMB) an agency asset management plan adhering to several requirements. 19 Identify and categorize all assets. Prioritize actions to be taken to improve operations and financial management of the assets. Make life-cycle cost estimations associated with prioritized actions. Identify and pursue goals, with appropriate deadlines, consistent with the support of the agency's asset management plan and measure progress against such goals. Establish performance measures to determine the effectiveness of asset management. Establish and maintain a single, comprehensive, and descriptive database of all assets. Although the Division is not required to follow this executive order, it prescribes valuable guidelines for implementing an effective asset management program. 18 FMpedia, International Facility Management Association Foundation, accessed December 5, 2011, 19 Exec. Order No , 69 Fed. Reg. 5897, 5898 (Feb. 4, 2004). City and County of Denver P a g e 14

21 This executive order established the Federal Real Property Council (Council), and tasked the Council with creating additional requirements for federal agencies. The Council issued guidance to clarify and build upon the executive order. 20 The guidance established ten principles that federal agencies must incorporate into asset management plans including promoting full and appropriate utilization of assets, providing appropriate levels of investment to maintain assets, employing life-cycle cost benefit analysis, advancing customer satisfaction, to accurately inventory and describe all assets, and that all actions must support agency mission and goals. The guidance outlines four significant steps. 21 A baseline condition assessment of all assets is suggested every two years. Identification of resources, including human capital, to carry out asset management plans. Development of continuous monitoring and feedback mechanisms. Creation of criteria by which to prioritize maintenance activities that could include customer urgency, physical urgency based on building conditions, economic justification, and projected timing and execution. In addition, three of five respondents to our benchmarking survey reported using comprehensive asset management programs: DFW, San Francisco International Airport (SFO), and Hartsfield-Jackson Atlanta International Airport (ATL). Two of these airports, DFW and SFO, were recently recognized for airport excellence. 22 In fact, DFW utilizes in its asset management plan many of the elements prescribed by the federal Executive Order. DFW s plan also includes performing regular condition assessments, using a fiveyear rolling plan for both capital improvements and operations and maintenance, and documenting key processes. Moreover, the survey response from Division management acknowledges that having a comprehensive asset management program is a best practice. DIA would experience many benefits from implementing an asset management program: increased management awareness of where the organization stands overall; a structure to help organize and solve issues; and a methodology by which management could improve its decision-making process and connect decisions to agency goals and priorities. 20 Federal Real Property Council Guidance for Improved Asset Management, accessed November 9, 2011, 21 Federal Real Property Council, Guidance for Improved Asset Management, (December 22, 2004): accessed November 9, 2011, Federal Executive Order (a) established the Federal Real Property Council within OMB to develop guidance and facilitate the success of federal agency asset management plans. The Council is comprised of Senior Real Property Officers, the OMB Controller, the Administrator of General Services, and other Federal officials deemed necessary by the Council Chairman. The OMB Deputy Director for Management chairs the Council. Executive Order became effective in Ibid. 22 Dallas/Fort Worth International Airport was ranked third in the world for airport service quality by Airport Council International in 2010 for airports with more than 40 million passengers annually. According to its website, San Francisco International Airport was voted North America s Best Airport in 2010 by passengers for its modern and efficient facilities and its multi-modal transportation systems. P a g e 15 Office of the Auditor

22 The Division is not Fully Maximizing its Asset Management Software The Division has not input all capital assets into its asset management software tool, Maximo. For example, the tent roof is not contained in Maximo as an asset. The Division primarily utilizes Maximo to generate preventative maintenance and service call work orders, which does not maximize the software s asset management capabilities. While Maximo has the ability to track a multitude of data elements identified as best practice, the Division does not consistently enter this information. As a result, the Division is unable to rely on the accuracy of asset reports due to the inconsistency of information maintained. Underutilization of Maximo hinders DIA from moving forward with other available technology. Asset Management Test Indicates Data Elements Inconsistently Tracked As an asset management best practice, the Council requires federal agencies to track and report on specific data elements for all assets. Based on this research, we selected eleven data elements and tested if the Division was tracking the element within Maximo. 23 Six of the eleven elements warrant further explanation. 24 Asset Condition A general measure of the asset s condition at a specific point in time. Asset Mission Dependency Rating The value an asset brings to the performance of the mission as determined by the governing agency. Asset Operating Costs Includes recurring maintenance and repair costs, utilities, cleaning and janitorial costs, and road and grounds maintenance. Asset Status Indicates the operational status of the asset as one of the following categories: active, inactive, excess, or disposed. Asset Type Identifies the asset as one of the following categories: building, equipment, capital improvement, vehicle, or art. Asset Value The cost of replacing the existing constructed asset at today s standards. The test determined that the Division does not consistently monitor data elements considered significant by the Council in Maximo. 23 To determine whether or not the Division is tracking some or all best practice data elements in its asset management software system, Maximo, the audit team obtained the population of all DIA capital assets from DIA Finance and Administration. From this population, a judgmental sample was selected including buildings, equipment, capital improvements, vehicles, and pieces of art. The Division is responsible for maintaining 13 of the 44 assets selected in the sample. 24 Federal Real Property Council, Real Property Inventory User Guidance for FY 2011 Reporting, October 4, 2011, pgs City and County of Denver P a g e 16

23 Table 1: Maximo Asset Test Results Data Elements Tested Present Not Present Asset Condition 0 13 Asset Department 13 0 Asset Location 13 0 Asset Maintenance Costs 12 1 Asset Mission Dependency Rating 5 8 Asset Identification Number 13 0 Asset Operating Costs 0 13 Asset Purchase Price 11 2 Asset Status 12 1 Asset Type 0 13 Asset Value 1 12 Inconsistent tracking of asset information results in several negative effects on the Division. These include but are not limited to the Division s inability to achieve five important objectives. Asset Identification Identify what types and the number of assets the Division possesses. Asset Importance Evaluate the importance of each asset with regard to accomplishing the Division s mission. For example, the central plant is mission critical, while an inoperable lavatory is not. Asset Value Determine the value of an asset or the amount it would cost to replace the asset. Forecasting Identify how much assets cost when forecasting capital expenditures and maintenance costs in the future. Data Dashboard Rely on data and internal reports used for decision making. Based on the benchmarking of other airport asset management programs at DFW, SFO, and ATL, consistent tracking of asset information within a facility management system is a critical component of a comprehensive well-defined asset management plan. Within the Division, the Fleet Maintenance section proactively enters asset information into Maximo and uses it to develop custom data queries. The Division recognizes the reporting functions and data entry processes utilized by Fleet Maintenance as an internal best practice. Ability to Use Building Information Modeling Is Limited by Lack of Comprehensive Asset Tracking Building Information Modeling (BIM) is a building development tool that is used widely in the construction industry but has also proven useful in facility management. BIM is predominately used in the design phase of a construction project to create three- P a g e 17 Office of the Auditor

24 dimensional building models. Once the construction project is complete, facility managers may use these detailed models in a variety of ways, such as managing asset inventory, tracking maintenance history, and enhancing knowledge of asset location. The Federal General Services Administration has identified the use of BIM as a best practice. Most facility management software systems lack the capability to manage an asset throughout its life cycle, whereas BIM is intended for use throughout design, construction, operation and maintenance, and disposal. Despite the significant start-up costs associated with using this technology, facilities that use it ultimately realize both The use of Building Information Modeling has proven useful in facility management. efficiencies and cost savings. These cost savings are accomplished by consistently updating and changing the information model through construction, operation and maintenance, renovation projects, and modernizations. 25 The use of BIM technology will improve the ability to diagnose problems and plan repairs. The Division has expressed interest in utilizing BIM in the future. In fact, DIA is utilizing this technology to assist with the completion of the South Terminal Redevelopment Program. 26 Although it is evident that the use of BIM would assist the Division in both asset and facility management, the Division is not using Maximo to its full capability. Prior to investing in the integration of additional technology, the Division should fully utilize the capabilities of Maximo and ensure that all assets are contained within the system. Workforce Succession Plan Must Include Additional Key Elements Due to a large number of retirement-eligible employees and a lengthy, difficult hiring process, the Division faces significant challenges in developing workforce planning strategies. Although steps have been taken to create a succession plan, the Division has not fully incorporated all available workforce planning strategies as identified by federal and industry best practice. Replacement of a Significant Percentage of the Division s Workforce Approaching Retirement will be Difficult Division management recognized the need for the development of a comprehensive succession plan to prepare for future staffing requirements. Management, in conjunction with the Career Service Authority (CSA), conducted an analysis and found that 25 percent of Division personnel will be eligible to retire in three to five years. Due to budget shortfalls in 2009, the City offered retirement incentives to all employees who were retirement eligible. 27 Since the City continues to experience economic hardship, 25 Strategic Asset Management Solution (SAMS): BIM, CMMS and CAFM, FMLink, accessed November 16, 2011, 26 The South Terminal Redevelopment Program consists of a public transit center, an airport hotel, and a terminal plaza. 27 The City offered a voluntary retirement incentive program for all employees covered by the Denver Employees Retirement Plan who were at least 65 years old or who were at least 55 years old and met the Rule of 75, meaning their age and years of service to the City added up to at least 75. The incentive was meant to ease budget constraints and reduce the number of employees facing a potential layoff. City and County of Denver P a g e 18

25 additional retirement incentive programs may be necessary in the future. If all retirementeligible employees within the Division retired during a short period of time, the loss of critical institutional knowledge and experienced staff would impair the Division s ability to provide the high level of service required to maintain the airport. In addition to potential workforce retirements, the Division faces challenges in filling open positions due to a lengthy hiring process and the difficulty of identifying candidates who possess the necessary technical requirements. CSA recruitment data from 2011 shows that it took the Division an average of 103 days to fill an open position. 28 Factors such as Federal Bureau of Investigation required fingerprinting and criminal history background checks contribute to the length of the process. The technical nature of many of the Division s positions can further prolong the hiring process. 29 For example, it took the Division over nine months to fill an HVAC heating, ventilation, and air conditioning position, despite extending offers to numerous applicants. Additional Workforce Best Practice Strategies Should be Implemented The Division has performed some initial succession planning. In practice, a successful planning strategy provides a systematic approach to identifying the best candidates for key positions. 30 Specifically, the Division coordinated with CSA to develop a DIA Maintenance Division Succession Planning Initiative. Part of the initiative included a pilot supervisory training program to develop institutional knowledge internally, which could be lost due to retirement. This six-month program trained 25 Division employees, and, if successful, CSA discussed offering annual training opportunities for Division personnel. Currently, the trainees are waiting for a future supervisor position. The U.S. Office of 28 A copy of the Career Service Authority Recruiting Report, was provided to the Audit Team on November 7, The report measured the time between the certification date to the effective date that a promotion or new hire was confirmed. In 2011, section manager final approval to posting (forty-four days) plus average of select DIA Maintenance Division sections recruiting period (fifty-nine days) totaled 103 days. 29 According to October 2011 Census Bureau data, the unemployment rate in Denver was 8.6 percent. However, the DIA Maintenance Division Succession Planning Initiative reports that the technical requirements needed to fill Division positions continues to make it difficult to find and hire qualified candidates. 30 U.S. Office of Personnel Management, Human Capital Assessment and Accountability Framework: Succession Planning Process, (Washington, D.C.: United States Office of Personnel Management, 2005), 1. P a g e 19 Office of the Auditor

26 Personnel Management (OPM) recognizes offering internal trainings such as these as a best practice. 31 To enhance the current succession planning strategy, the Division should implement a structured cross-training program as a compliment to their succession plan. 32 Crosstraining provides flexibility for management, leverages limited resources, and allows employees to learn new skills. The Division has successfully cross-trained Department of Parks and Recreation personnel to assist with basic maintenance needs during the snowy months. Management from five of the six Division sections indicated they would be open to internal cross-training of non-trade-specific employees. However, the Division has not conducted an all-inclusive evaluation to identify crosstraining opportunities. According to the U.S. Government Accountability Office, "Leading organizations go beyond a succession planning approach that focuses on replacing individuals and engage in broad, integrated succession planning and management efforts that focus on strengthening current and future organizational capacity." 33 Although the Division has identified a pool of eligible supervisory candidates for training, this may not fully address all mission-critical positions. 34 According to OPM best practices, training, developing, and maintaining personnel are critical to the success of an organization. 35 Furthermore, established industry standards emphasize the importance of maintaining both an effective cross-training and succession planning strategy along with continuous monitoring of each to ensure successful workforce development and retention occurs. 36 In addition to the general measures identified by the Division s succession planning initiative, successful implementation should specifically measure: whether at risk or hardto-fill positions are clearly identified, candidates to fill these positions are designated early, vacancies are swiftly filled, Division leadership remains involved, and a consistent methodology is developed that effectively communicates the results of the program on an on-going basis. Consequently, the Division should implement these best practices into their succession planning initiatives to ensure adequate human capital resources are available to execute an asset management program and advance strategic goals. 31 U.S. Office of Personnel Management, Migration Planning Guidance Information Documents: Workforce Planning Best Practices, (Washington, D.C.: United States Office of Personnel Management, 2008), Cross-training is generally defined as classroom or hands-on instruction that covers several tasks within a department. The U.S. Office of Personnel Management also describes cross-training as mentoring. For example, planned job assignments, coaching and mentoring, and shadowing within a designated personnel position can occur. 33 U.S. Government Accountability Office, Selected Agencies Have Opportunities to Enhance Existing Succession Planning and Management Efforts, GAO , (Washington, D.C.: United States Government Accountability Office, 2005), A mission critical position is crucial to the successful completion of daily operations. 35 U.S. Office of Personnel Management, Migration Planning Guidance Information Documents: Workforce Planning Best Practices, (Washington, D.C.: United States Office of Personnel Management, 2008). 36 National Cooperative Highway Research Program, Strategies to Attract and Retain a Capable Transportation Workforce, Report 685, (Washington, D.C.: Transportation Research Board, 2011), 103. City and County of Denver P a g e 20

27 A Lack of Information in Maximo is Preventing DIA from Transitioning to a More Cost-Effective Maintenance Program The Division relies heavily upon a reactive maintenance approach which focuses on responding to and fixing problems and asset failures as they occur rather than preventing and predicting problems. A reactive maintenance approach is more costly and less effective for facility maintenance. However, the Division lacks the basic information necessary to transition to more a cost-effective approach. Heavy Reliance on Reactive Maintenance is Costly Management reported that most Division maintenance activities are reactive in nature. According to the IFMA, reactive maintenance should not comprise more than 55 percent of all maintenance activities for a facility the same age as DIA. 37 We requested records to determine the percentage of reactive maintenance performed during the audit period. However, the Division was unable to provide such information and, as a result, we could not determine whether or not the Division is operating within IFMA recommendations. IFMA also suggests that relying on a reactive strategy is more appropriate for new facilities, since the risk of equipment failure is low. However, once a facility starts to age, this approach can become expensive. Therefore, maintenance activities should shift to focus more on preventative measures. Now that DIA is 17 years old, this information suggests that the Division s maintenance strategy should begin shifting from reactive to preventative. Once a facility begins to age, research indicates that reactive maintenance is the most expensive and inefficient approach. Specifically, the U.S. Department of Energy s Operations and Maintenance Best Practices Guide (Best Practice Guide) notes that there are many disadvantages to reactive maintenance strategies that far outweigh the benefits. The Guide suggests that an organization may believe it s saving maintenance and capital cost, [it is] really spending more dollars than [it] would have under a different maintenance approach because, while waiting for equipment to break, we are shortening the life of the equipment resulting in more frequent replacement. 38 Predictive and Reliability-Centered Maintenance Approaches Represent Significant Cost- Savings Transitioning to a predictive maintenance approach, one that determines maintenance tasks based on asset condition, has many benefits. The Best Practice Guide reports that proactive approaches to maintenance reduce costs. Savings are realized because failures usually require more extensive and complicated repairs, which are far more costly than mitigating maintenance measures. A functional predictive maintenance 37 International Facility Management Association, Research Report #32: Operations and Maintenance Benchmarks (2009). 38 U.S. Department of Energy, Operations & Maintenance Best Practices: A Guide to Achieving Operational Efficiency, (August 2010): accessed, December 14, 2011, P a g e 21 Office of the Auditor

28 program increases a facility s return on investment and provides, on average, significant savings to 30 percent reduction in maintenance costs 70 to 75 percent reduction in breakdowns 35 to 45 percent reduction in downtime One downside to a predictive maintenance program is that it requires high start-up costs. Because this program requires increased monitoring and testing of assets to properly determine asset condition, facilities that implement a predictive maintenance program must invest in training for staff and new technologies. Although predictive maintenance programs have many benefits, research indicates the most cost-effective maintenance program is a reliability-centered maintenance program (RCM). RCM has similar benefits to that of a pure predictive approach, but it accounts for the fact that most organizations do not have the type of resources to fully implement this pure approach. Typically, RCM uses a mixture of all three types of approaches: less than 10 percent of activities are reactive, 25 to 35 percent are preventative, and 45 to 55 percent are predictive activities. RCM recognizes that not all assets are equally important to the overall mission of the program and defines maintenance tasks accordingly. It also incorporates root cause analysis of equipment failures as a key element. Research indicates the most cost-effective maintenance program is a reliabilitycentered maintenance program. Both IFMA and the Smithsonian Institute have identified RCM as a best practice. IFMA reported that RCM represents a way to reduce downtime of assets, increase cost-effectiveness, and enhance risk management. The Smithsonian Institute began utilizing RCM and reported several benefits from the program, including measurable financial savings, more knowledgeable and efficient staff, reduced overtime spent on repairs, increased asset reliability, reduced maintenance backlog, improved decision making processes, and improved energy efficiency. Several Factors Prevent the Division from Adopting Cost-Effective Maintenance Strategies Prior to a transition to either a predictive maintenance or RCM strategy, several key pieces of information must be known about each of the assets to be maintained. This includes having a master list of all assets; assigning a priority to each asset; ensuring there is quality documentation of maintenance performed, especially in the event of asset failure; and knowing the condition of each asset. As previously stated, the Division does not know this information for many of its assets. Without this information, the Division cannot adopt better maintenance strategies or reap the benefits associated with those strategies. Further, as previously noted, the Division does not know what percentage of maintenance activity is reactive. Without knowing the breakdown of the types of 39 Ibid. City and County of Denver P a g e 22

29 maintenance activities performed, it is impossible to determine how big of a shift must occur. P a g e 23 Office of the Auditor

30 RECOMMENDATIONS 1.1 Central Plant The Deputy Manager of Aviation Maintenance should repair or replace the inoperable chiller immediately to prevent loss of cool air to the airport and a reduction in service to customers. 1.2 Asset Management Plan The Deputy Manager of Aviation Maintenance should identify next steps and a timeline to develop and implement an asset management plan. Within the plan DIA should: define the mission and goals of the Maintenance Division specifically, and align the asset management plan and its priorities with the mission and goals of the Division; ensure that adequate resources are available to carry out the asset management plan; explore methods to incorporate predictive and reliability-centered maintenance program components; and address how quality data will be obtained and tracked for each asset. 1.3 Five Year Plan The Deputy Manager of Aviation Maintenance should develop a fiveyear rolling operations and maintenance plan to coincide with capital planning. 1.4 Contingency Requirements The Deputy Manager of Aviation Maintenance should determine contingency needs and work with Financial Planning and Analysis to reallocate applicable budget funds. 1.5 Maximo Utilization The Deputy Manager of Aviation Maintenance should utilize Maximo to its full potential as it relates to asset management and input all maintained assets into Maximo. 1.6 Baseline Condition Assessment The Deputy Manager of Aviation Maintenance should perform a baseline condition assessment, assign a mission dependency rating, develop estimated useful life, and determine replacement values of all assets and track this information in Maximo, including the central plant and the tent roof. 1.7 Performance Measures The Deputy Manager of Aviation Maintenance should establish performance measures for continuous monitoring and utilize these measures to drive decision making for asset replacement, asset repairs, future budget, and prioritization of maintenance needs. At a minimum, maintenance cost per square foot should be tracked and monitored. 1.8 Succession Planning The Deputy Manager of Aviation Maintenance should identify mission critical positions. Working with CSA, the Deputy Manager should continue to improve and implement succession planning strategies to offset and minimize the risk to loss of employees and institutional knowledge. Measures of success should periodically report on: available internal candidates to fill mission critical positions, a measurable reduction in the time to fill vacancies, and develop a consistent methodology that effectively communicates the results of the program. 1.9 Cross Training The Deputy Manager of Aviation Maintenance should review specific maintenance positions for cross-training applicability in coordination with the DIA Maintenance Division s overall succession planning and strategic plan. City and County of Denver P a g e 24

31 APPENDICES Appendix A DIA Maintenance Division Organizational Chart P a g e 25 Office of the Auditor

32 AGENCY RESPONSE City and County of Denver P a g e 26

33 P a g e 27 Office of the Auditor

34 City and County of Denver P a g e 28

35 P a g e 29 Office of the Auditor

36 City and County of Denver P a g e 30

37 P a g e 31 Office of the Auditor

38 City and County of Denver P a g e 32