City of Olympia Water System Plan Update

Transcription

1 Appendix 12- City of Olympia Water System Plan Update Technical Memorandum: October 8, Columbia Street NW Suite 2 Olympia, WA 981

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3 Table of Contents Introduction Approach to Developing the Asset Management Program Utility Business Management Evaluation... Gap Analysis, Criticality, and Prioritization Asset Management Plan: Immediate Actions Asset Management Vision and Support Asset Management Organization Asset Management Program Communication Asset Management Plan: Near-Term Actions Asset Knowledge Asset Operation and Maintenance Asset Condition Monitoring Asset Management Systems Asset Management Plan: Long-Term Actions Asset Management Program Development Asset Planning Asset Rehabilitation and Replacement (R&R) Asset Development Asset Financing Asset Financial Reporting Implementation Costs...2 List of Tables Table 1. Asset Management Plan Cost Summary... 2 Table 2. Gap Scoring System... 4 Table. Gap Closure Prioritization Categories and Definitions... 4 Table 4. Business Process Priorities... 5 Table 5. Implementation Costs...25 List of Figures Figure 1. Creation of the Asset Management Action Plan... 1 Figure 2. Asset Management Strategies and Asset Risk...12 List of Attachments Attachment A Asset Management Industry/Practice Standards Evaluation City of Olympia Water System Plan Update i

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5 List of Acronyms AM Asset Management AMP Asset Management Plan AMT Asset Management Team CM Corrective Measures CMMS Computerized Maintenance Management System CMO Constructability, Maintainability, and Operability EAMP Enterprise Asset Management Plan GASB 4 Governmental Accounting Standards Board, Statement 4 GIS Geographic Information Systems O&M Operations & Maintenance PM Preventative Maintenance R&R Rehabilitation and Replacement RSI Required Supplemental Information City of Olympia Water System Plan Update iii

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7 Introduction Asset management is a key element of the City s Water System Plan Update (Plan) that will improve stewardship of the water system infrastructure and assure customers money is spent responsibly and effectively. Stated briefly, asset management ultimately ties the City s expenditures to customer service levels. Through increased accountability, it aims to ensure all asset decisions reflect the lowest life cycle cost needed to meet customer needs at responsible levels of risk. This has been prepared as follows: The Public Works Leadership Team determined that key business processes related to life cycle management of assets are important to the sustainability of the Plan specifically in the areas of planning, design, construction, operations and maintenance, capital refurbishment, and replacement. The water utility s business processes in each of these areas were compared with best practices. Through several sessions, the Drinking Water Coordination Team defined, area by area, the level of performance the City should aim to achieve over the next several years. The resulting gaps (between current and desired performance) were prioritized by the size of the gap and by the natural order of progression for developing a comprehensive asset management program. The resulting needs were classified as immediate, near-term (two to five years), and long-term (five to ten years). The process followed is shown in Figure 1. Figure 1. Creation of the Asset Management Action Plan City of Olympia Water System Plan Update 1

8 This document presents the tactics for meeting those needs. The costs to meet level of performance needs identified by the gap analysis are presented in Table 1. The development of these implementation cost estimates is detailed in the subsequent sections of this document. Table 1. Asset Management Plan Cost Summary Immediate (-2 years) Near-Term (2-5 years) Long-Term (5-1 years) Full Implementation Olympia Staff $,16 $75,74 $257,285 $6,185 Total Cost $59,45 $164,925 $489,27 $71,6 The Drinking Water Coordination Team likely will re-prioritize needs, define new goals, revise strategies, and change or add tactics as progress is made toward desired performance. These activities will result in continual updates to this asset management strategy, which is considered a living document. 1 Approach to Developing the Asset Management Program This tech memo presents the City s analysis of its current asset management business processes; its view of improvements needed over the next several years; and a plan for achieving those improvements through development of an asset management program. The asset management program s goal is to provide a structured approach to minimize asset ownership life cycle costs while meeting required service levels and providing long-term confidence in the condition of system infrastructure. The expected outcomes are lower ownership costs, assets in better condition with longer lives, and more efficient use of the City s human and capital resources. Previously, the City had already completed some fundamental efforts related to asset management program implementation such as an update of the levels of service and implementation of the Vueworks computerized maintenance management system (CMMS).The City has an established Leadership Team to steer the overall planning of asset management and the asset management program development. The focus for the Leadership Team s activities in the update of the Water System Plan was to evaluate the City strengths and weaknesses in the major asset management business process areas. These areas are: Management Vision and Support Organization Program Development Asset Knowledge Asset Planning Program Communication City of Olympia Water System Plan Update 2

9 Asset Development Asset Operations and Maintenance Asset Condition Monitoring Asset Rehabilitation and Replacement (R&R) Asset Financing Asset Finance Reporting Asset Management Systems The Leadership Team completed the following project tasks: Participated in interviews with other City staff to identify the City s strengths and weaknesses as compared to existing standards for asset management programs. Analyzed and rated the City in each of the business process areas and individual topic areas. Prepared target goals for the City s asset management program for the near-term (approximately three years out). Compared current strengths and weaknesses with the target goals to provide a gap analysis. Prioritized the gaps to create performance targets. Reviewed levels of service and related actions critical to long-term asset management success. These tasks led to the preparation of this tech memo. The tech memo s objective is to guide the City through the process of developing an effective and sustainable asset management program. The City recognizes the need to improve existing asset management business practices. An asset management plan will define the required business practice improvements necessary to improve stewardship of water system assets. To fully understand the required operation and maintenance business practice modifications and associated costs, asset inventory and condition assessment procedures will need to be established. This will allow for coordinated asset tracking, assessment, maintenance, and financial resources to be efficiently managed. To support this effort, an Asset Tracking System is also being developed as part of this Water System Plan Update. 2 Utility Business Management Evaluation Business processes were evaluated through interviews with various City departments that provide drinking water utility related services. Interviews involved identifying current asset management gaps and prioritizing asset management needs. The current status of asset management within the City compared to current best practices is discussed further in Attachment A. City of Olympia Water System Plan Update

10 Gap Analysis, Criticality, and Prioritization Comparing the City s current business practices through the interview process established the benchmark score for each asset management business process best practice. A scoring system was developed for five categories with numeric scores assigned as shown in Table 2. Table 2. Gap Scoring System Benchmark Category Description Score Optimizing Managed Defined Approach Approach is practiced, measured, fully controlled and has improvement cycle focused on results Defined documented approach, practiced, and measured, but not controlled Defined approach with no controlled documentation and not practiced consistently Initial Aware but no systematic approach 1-2 Unaware Total unawareness within organization -1 A workshop was held to review the benchmark categories and scores. Once the benchmark was agreed upon, a workshop was held by the Leadership Team to establish the near-term target goals (the desired performance level to be reached over the next three years). Based on evaluating City strengths and weaknesses, and the desired near-term target goals, a gap analysis was completed showing the relative gaps between where the City is now and where it would like to be in three years to be consistent with City Vision and Goals. The Leadership Team held additional workshops to prioritize and assign criticality to each business practice. The criticality was established in a descending numeric system with 5 being the highest criticality and 1 being the lowest criticality. The established gap number was multiplied by the criticality to establish the weighted gap. The weighted gaps were sorted and used as the focus for the final workshop to establish the priorities for gap closures. The developed gap analysis, prioritization, and criticality are included in Attachment A. The gap closure priorities were established to fall into one of three categories as shown in Table. Table. Gap Closure Prioritization Categories and Definitions Prioritization Category Definition Immediate Near Term Long Term Key activities over the next 1-year Key activities over the next 2 to 5-years Key activities over the next 5 to 1-years The Leadership Team prioritized each best practice and summarized the 1 business processes as shown in Table 4. City of Olympia Water System Plan Update 4

11 Table 4. Business Process Priorities Business Process Priority Vision and Support Organization Program Development Asset Knowledge Asset Planning Asset Program Communication Asset Development Asset Operation and Maintenance Asset Condition Monitoring Asset Rehabilitation and Replacement Asset Financing Asset Financial Reporting Asset Management Systems Immediate Immediate Long Term Near Term Long Term Immediate Long Term Near Term Near Term Long Term Long Term Long Term Near Term In addition to prioritizing the business process and best practices, five early action items were established that the Leadership Team determined were immediately critical to the long-term success of the Asset Management Program. These action items are: 1. Assign the role of Asset Management Leader to an existing position and define the requirements and skills for this effort. 2. Develop a Program Charter endorsed by top management that communicates the City s commitment to Asset Management.. Assign specific resources that will enable a permanent Asset Management Team. 4. Determine the needs and benefits of each Utility with respect to Asset Management. 5. Communicate the goals and objectives of Asset Management to City Council in order to obtain their support. 4 Asset Management Plan: Immediate Actions The City Leadership Team has completed the following work leading to development of the AMP: Evaluated City performance in twelve major areas and 89 specific topic areas related to asset management. Compared City performance in each area to best practices as provided by consulting services. Reviewed current performance and defined desired performance in each area, calibrating the vision against what seems reasonably achievable over the next five to ten years. Prepared a gap analysis to identify where the most work is needed to move the water utility to effective practice of asset management. City of Olympia Water System Plan Update 5

12 The information from this process has enabled the Leadership Team to prioritize the major asset management areas in terms of immediate, near term, and long term. The Drinking Water Coordination Team realizes asset management can seem somewhat abstract. This means substantial groundwork must be laid within the organization and culture in order to provide for a sustainable program. Therefore, the Leadership Team prioritized the following gaps that need to be filled immediately in order to provide a sound foundation for asset management: Vision and support Setting up and communicating the goals of asset management and communicating to all involved employees. Establishing goals with measurable objectives. Organization Maintaining the Public Works Leadership Team as the Asset Management steering team and allocating the resources necessary to carry the program forward. Work across the City to build stronger asset management principles. Program communication Focusing on communication and education of staff and how the work they perform links to the services provided to customers and stakeholders. Identifying stakeholders and stakeholder groups, defining stakeholder interests, and developing and maintaining communication vehicles to educate stakeholders and keep them informed of progress in asset management. 4.1 Asset Management Vision and Support An asset management program is a comprehensive and deep effort cutting across many organizational boundaries. One of its aims is to increase accountability in all areas of asset stewardship. In a fundamental sense, it is a new way of doing business. Programs of this nature require, especially at their early stages, clear direction and support from top management. They also deserve the early understanding and support of the policy body. Accordingly, the goals, strategies, and tactics in the area will aim to obtain the active participation of both top management and the City Council in the development of the City s asset management program. Because the City s program will ultimately be calibrated based on its customers required service levels, this area also includes the opening stages of definition and dialog that will lead to an understanding by both customers and the City itself of the relationship between the City s service levels delivered and the costs of service. Throughout their work in this area, the City staff will solicit the views of management, policymakers, customers, and others as to their perceptions of the potential benefits of asset management. This will support the development of communication plans. Goal: Obtain understanding and support from City Council and the Utility Advisory Committee. Tactics: Prepare PowerPoint presentation on asset management at the City. Include benefits found from other utilities and how experiences from others might impact the AM Program at the City. City of Olympia Water System Plan Update 6

13 Discuss the nature of an asset management program at the City with top management in a separate roundtable. Keep top management well informed through a structured communication program (see Asset Management Program Communication, below). Schedule a special City Council Workshop to discuss the asset management program. Subsequently, keep the City Council well informed through a structured communication program (see Asset Management Program Communication, below). Goal: Establish relationships between service levels and costs. Gain agreement with customers as to the service levels they require and are willing to pay for. Tactics: Hold a meeting (or meetings) with representative customer groups to introduce the City s asset management initiative. Solicit input as to how customers view the City s services and how service levels might be defined. Begin to get some indication of the levels of service customers expect from the City and their views of the values of various levels of service. Internally, begin the process of better understanding how the City s overall costs are related to the service levels provided in all areas where service levels can be defined. 4.2 Asset Management Organization Public Works is taking a leading effort in developing AM programs within the City through this Water System Plan Update. The City s asset management program should be centrally directed and coordinated by a cross-functional and formally recognized Asset Management Team (AMT) at the City level. Ideally, the AMT would have senior representation of each Department including Administrative Services (Finance); Community Planning and Development; Parks, Arts and Recreation; and Public Works (Engineering and Construction, Transportation, and Water Resources). The AMT would: Continue to develop the City s AMP that is, later versions of this document. Develop goals and measurable objectives for the program, to be reflected in the AMP. Manage the development of business processes and associated procedures required to improve the City s asset management practices. Continue the work of the Drinking Water Coordination Team in identifying and prioritizing areas for improvement. Goal: Establish asset management as part of the City culture and build the program organically through strategic efforts. Tactics: Prepare a Program Charter, describing the asset management program s overall purposes and establishing an AMT, for top management to issue. City of Olympia Water System Plan Update 7

14 Prepare a short proposal for top management consideration to approve the asset management Program Charter. Goal: Gain the resources necessary to conduct the AMT s work through the first full year. Tactics: Prepare a City-wide asset management program budget for fiscal year Review the budget at a full meeting of the AMT. Revise the budget as necessary and submit per normal procedures. 4. Asset Management Program Communication Subsequent to the initial solicitation of top management support for the City s asset management program, the Drinking Water Coordination Team sees the need for ongoing communication with stakeholder groups, all of whom will benefit from improved asset management. Candidate groups might include City management, City staff in general, City Council, the general public and environmental interest groups, and regulatory authorities. Because each group may have interests different from the others, it will be necessary to better understand what these interests are and structure communication programs accordingly. Goal: Identify key stakeholder groups and identify their interests. Tactics: Request that the AMT determine key stakeholder groups and prepare a list of candidate stakeholder groups, ranked by their importance for informing AM program development. Use stakeholder list to develop communication programs. Review and compile results of prior work and compile interests lists for each stakeholder group. Review and discuss interests lists at AMT meeting, and define communications vehicles, responsibilities, and schedules. 5 Asset Management Plan: Near-Term Actions Following the immediate actions recommended by the Drinking Water Coordination Team for establishing the foundations for the City s asset management program, the next steps will be focused on improving asset knowledge and using this knowledge more effectively to manage the infrastructure. The City is a mature agency with asset infrastructure largely constructed. The most recent goals for the Drinking Water Utility are: Adequate supplies of water are available for the Olympia community while protecting instream flows and sustaining long-term capacity of aquifers. Olympia s water supplies are used efficiently to meet the present and future needs of the community and natural environment. City of Olympia Water System Plan Update 8

15 Groundwater quality is protected to ensure clean drinking water for present and future generations and avoid the need for expensive replacement and treatment facilities. Infrastructure is sustainably constructed, maintained and operated to ensure reliable delivery of high quality water to a growing community. Drinking Water Utility finances are managed responsibly, with costs recovered equitably by customer use. The near-term actions are designed to provide a foundation for sound asset management practices that will help the City meet the strategic goals. Near-term action items include: Asset Knowledge Asset Operation and Maintenance Asset Condition Monitoring Asset Management Systems 5.1 Asset Knowledge Asset knowledge can be defined as quantified asset information readily available for asset management purposes. This definition implies that the information is available electronically in a clear and structured way. The Leadership Team has determined that current asset knowledge requires additional refinement. Improving asset knowledge will assist in lifecycle asset management. Current asset knowledge is reasonably good for the underground infrastructure, but there is limited data associated with condition and failures. The linear asset information is largely limited to data available in GIS. Goal: Define the minimum level of detail for an asset. It can be difficult to determine the level at which assets should be tracked. Replacement planning, for example, may require a different level of asset detail from maintenance. The normal procedure is to track assets at the lowest level of detail required by any asset management function, but to manage assets at the level of detail appropriate to the purpose. Organization of assets in a hierarchical manner (see below) allows managing assets at varying levels of detail. A starting point for determining the appropriate level for tracking assets is to define an asset as a physical object meeting any of the following criteria: Cost equal to or greater than the capitalization level. Defined as an asset by regulations or regulators. Requires periodic maintenance. Proper functioning is important to provision of service, City finances, safety, health, or the environment. City of Olympia Water System Plan Update 9

16 Tactics: Establish a City-wide financial practice for defining assets Based on the initial stakeholder meetings, review their requirements for asset identification to measure service level criteria. Review the level at which Vueworks tracks assets. Prepare a standard that supports the definition for the minimum level an asset will be identified. Goal: Establish a uniform asset coding system. The City s assets need to be classified in a hierarchical manner, both to allow management at different levels and to facilitate accumulation of costs by asset, by facility, by infrastructure segment, and so forth. Additionally, assets need to be assigned to asset classes so cost and life histories of similar assets can be compared, both to improve life cycle planning and to facilitate cost savings. Neither concept is unfamiliar. Most maintenance management systems allow assets to be organized hierarchically and assets are routinely assigned to asset classes for various purposes including replacement funding analysis. However, the Drinking Water Coordination Team proposes that the hierarchical scheme and class assignments be consistent, documented, and inherent in the asset management process from design forward. As an example, design engineers should be able to assign asset numbers during the design process and reflect these numbers on their drawings. Construction contractors should accumulate costs and provide final billing in the same manner, by asset. This will greatly improve the ability to effectively manage new facilities and to accurately report financial results. Tactics: Review the Vueworks system for asset hierarchies. Review the Vueworks system for asset class definitions. Review the City s GIS system to identify water distribution system classes. Prepare standard nomenclature for the asset classes. Establish standard plant, distribution system, and piping hierarchies. Develop asset class definitions (ideally, embedded in the hierarchical numbering scheme). Prepare standard requirements for design and construction contracts for drawings and billings to conform to the City s asset coding system. Goal: Identify existing assets and related attributes. Once the appropriate levels of detail for asset identification and final hierarchical numbering systems are defined, the City should review and update its asset management systems to conform. The primary systems affected will be Vueworks, the financial system, and the GIS system, although other systems may be affected as well. City of Olympia Water System Plan Update 1

17 In parallel with this effort, the City will need to record appropriate asset data, if it is not recorded already. Such asset data will fall into two classes: 1. Identifying information such as serial number, date installed, original cost; and 2. Parametric information such as horsepower, flow capacity, length, diameter, etc. Required parametric information will need to be defined by asset class. Tactics: Review all asset databases for conformity with the defined level of asset detail, hierarchical numbering system, and asset class assignments. Re-inventory, re-number, and add/change class assignments as required. Investigate and determine which assets should be physically tagged with asset numbers. Define and carry out a program to tag assets. Define parametric data required for each asset class. Review databases and add required parametric data where not present. Goal: Establish the consequence of failure for assets. Analysis of the consequences of failure ( criticality ) of assets is essential to a sound asset management program. Criticality will determine how intensively an asset is managed, and how it is managed. The City should establish indicators of criticality, including: Financial consequences of unplanned failure (both internal and community costs). Environmental consequences. Health and safety consequences. Other service level consequences. Based on the criticality analysis, determine how to calibrate the level of resources assigned to assets and systems. Tactics: Research accepted industry standards for risk management which use consequences of failure to establish asset criticality. Perform a hierarchical risk analysis of facilities and conveyance systems, using a top down approach similar to that used in vulnerability analysis. The existing hierarchical asset coding system will facilitate this. Establish a standardized risk management matrix for the City assets. The matrix would be a look-up table for asset criticality. Goal: Establish the level of asset management performed Once assets are identified and coded and their criticalities are determined, they can be assigned to appropriate levels of management ( regimes ). The intent is to assign the most critical assets to the more intensive management regimes, so that City resources can be City of Olympia Water System Plan Update 11

18 focused where they will have the greatest effect. Intensity of management will be a continuum, with key reference points being: Condition-based management Some assets are so critical that unplanned failures will have serious consequences. These assets will be monitored closely and replaced or repaired upon early indication to prevent unplanned failures. History-based management Some assets are less critical in that unplanned failures, while undesirable, can be experienced without serious adverse consequences. These assets will be watched less closely although they will still receive periodic maintenance as applicable. Replacements and major repairs will largely be based on economic analysis for example, replacement when the replacement cost is less than the present value of the expected incremental maintenance costs. Capturing reliable historical maintenance cost information by asset is key to managing assets based on cost. Run to failure Assets with low criticality and no periodic maintenance requirements will simply be used until they break or cease to function as needed. Analysis may even identify assets with preventive maintenance (PM) requirements where running to failure is cheaper than performing the periodic PMs. This concept is shown graphically in Figure 2. Figure 2. Asset Management Strategies and Asset Risk Assigning assets to the various management regimes in a way that matches customer service requirements helps ensure those requirements are met at the least cost. City of Olympia Water System Plan Update 12

19 Tactics: Review asset listings and assign preliminary numerical cut-off points for divisions among condition-based management, cost-based management, and run-to-failure management. Review results and note assets that should be assigned to different regimes (higher or lower intensity) or have special requirements (such as remote condition monitoring via predictive maintenance for cost reasons, even where condition-based monitoring is not indicated by criticality). Based on the second review (previous bullet item), establish additional management regimes if substantial groups of assets need management methods different from the three regimes discussed above. Formalize the reviews by documenting the management regimes the City will use and the criteria that determine which regime an asset will be assigned to. Establish procedures to ensure assets are managed according to the appropriate regimes. 5.2 Asset Operation and Maintenance The Leadership Team identified several gaps to close for operations and maintenance (O&M) in the following areas: Preventive maintenance (PM) definition Defining required PM activities. PM scheduling Performing defined PM activities at the prescribed intervals. Corrective maintenance (CM) Perform corrective maintenance on a timely basis. Management of maintenance using the PM/CM balance Measuring the balance between PM and CM, and managing the maintenance process to achieve the optimum ratio between the two. Maintenance cost recording Recording maintenance costs on an activity basis, by asset. Consideration of operational requirements Management of operational methods to minimize the combined costs of operations and maintenance. Predictive maintenance Using indirect condition assessment where cost effective. Goal: Prioritize workload by risk. Preventative maintenance should be defined to mitigate the risk of asset failure. Staff needs to have consistency in setting up, scheduling and performing PMs. Work orders should be prioritized based on risk to system reliability. While such a prioritization can be done automatically if assets have criticality attributes (as recommended above), priorities will need to be manually reviewed. For example, a certain pump may be highly critical, but if it has been physically removed from service while a reliable spare is put in its place, its maintenance priority may be lower than its normal criticality would indicate. City of Olympia Water System Plan Update 1

20 Tactics: Prepare procedures for defining maintenance in a proactive plan that includes a schedule and expected costs. The procedures should specify criticality as the starting point for prioritization. Goal: Track asset failures consistently. In asset management, most learning comes from asset deterioration and failure. Experience in these areas, if properly recorded over time and analyzed, helps refine maintenance programs and improves prediction of R&R timing. The same experience can support pilot programs to extend service intervals in some cases, a practice that has led to significant savings in some organizations (although unavailable at the City due to the operating contract). Tactics: Review failure codes in Vueworks and make sure they correctly identify failure modes in all significant asset classes. Update as required. Prepare procedures to require that root-cause analysis be performed for all assets requiring unscheduled maintenance or removal from service, and that failure codes be used to record the event in the CMMS. There should also be a requirement to record a brief failure evaluation. 5. Asset Condition Monitoring Goal: Define condition monitoring methods. Asset Condition Monitoring was identified as a significant weakness compared with some other business processes. The Leadership Team s review found a systematic approach was lacking to perform condition monitoring or determine which assets required such monitoring. In general, condition monitoring will be used only for the most critical assets because monitoring is often expensive. Thus, the program depends on a sound criticality analysis, discussed above. Methods of monitoring asset condition vary according to the asset class. For example, water pipes are expensive to monitor whereas sewer pipes can be televised and are easier to access. Rotating equipment such as motors may be monitored by bearing temperature, oil analysis, vibration analysis, etc. In all cases, the determination of method begins with root cause failure analysis. Once the ways in which an asset can fail are defined, then monitoring methods can be chosen to predict failures. Tactics: Review asset classes and, for those classes with assets likely to require monitoring, perform root cause failure analysis. Based on the failure analysis, define likely condition monitoring methods and quantitative assessment scales. Reflect these methods and scales in procedures to ensure that assets requiring monitoring are assessed at the appropriate frequencies and in consistent ways. City of Olympia Water System Plan Update 14

21 Goal: Define condition monitoring program. Defining an appropriate condition monitoring program is fundamental to establishing a costeffective asset management program. Condition monitoring must be used where, and only where, it makes economic sense or protects customer service levels. The assets to be monitored and the frequency of monitoring will be governed by asset criticality, asset replacement cost, and degree of uncertainty involved in predicting failure for the particular asset involved. Tactics: Prepare and review an asset listing rank-ordered by criticality. Select a sample of critical assets, representing major asset classes, for a pilot assessment program. Prepare procedures to implement the program and use the results of the pilot program in normal operations where possible. Based on results, expand the program over time to all assets qualifying for assessment. Goal: Integrate condition monitoring with other business processes. Condition assessments, and trends in assessments, are normally used to support maintenance scheduling, prediction of R&R timing, and deciding on R&R actions. For condition monitoring to make its best contribution, it needs to be reliably used for these purposes. Tactics: Prepare procedures to ensure assessment information, along with criticality, is used to evaluate overall risk and prioritize corrective maintenance schedules. Prepare procedures for using trend analysis of assessed condition, along with criticality and performance measures, to analyze and forecast R&R needs, timing, and costs. 5.4 Asset Management Systems Goal: Prepare a system use plan for Vueworks. The existing Vueworks system is fundamental to the success of the asset management program. Vueworks integrated with the financial system will be key to forecasting long-range R&R needs and providing funding analysis. Tactics: Develop a technology roadmap for how Vueworks is going to be maintained, used by staff, and integrated with other systems. Develop a configuration management document to track the configuration and system requirements. City of Olympia Water System Plan Update 15

22 6 Asset Management Plan: Long-Term Actions Following the near-term actions recommended by the Drinking Water Coordination Team, the next steps will be focused on improving asset knowledge and using this knowledge more effectively to manage the infrastructure. This includes: Asset Management Program Development Asset Planning Asset Development Asset Financing Asset Financial Reporting 6.1 Asset Management Program Development Goal: Communicate the AMP s purposes and goals to the City organization through the Communication Program discussed in Section 4.. The further development of the City s asset management program will be the responsibility of a City-wide AMT. Some of the work in this area has already been completed; further work of the AMT in the immediate future will be aimed at completing the tasks outlined above, implementing the AMP and updating and improving it. 6.2 Asset Planning Asset planning refers to the preparation of the expected life cycle costs of ownership of an asset. Such costs typically include costs of short-interval activities such as maintenance, condition assessment, cleaning, calibration, and so forth. These costs are usually reflected in O&M or operating budgets, and the plans themselves are reflected in the maintenance job plans in the CMMS. Ownership costs also include the larger and longer-interval expenditures for acquisition, refurbishment or major repairs, and replacement of assets that are usually reflected in capital budgets. Asset planning is important for two reasons: A key goal of asset management is reducing asset ownership costs. This is accomplished through the classic plan / act / measure / control cycle. Asset management works by preparing plans for assets, carrying out the plans, measuring the results of our actions, and updating the plans accordingly. Having cost of ownership plans for all assets means the City can accurately forecast aggregate ownership costs well into the future, giving a solid foundation for long-range funding plans. The second reason implies the asset listing must be comprehensive and include substantially all infrastructure assets of value. Asset types may go well beyond those typically found in maintenance management systems, which are primarily concerned with mechanical, rotating, and electrical equipment. Asset management must also consider assets such as process City of Olympia Water System Plan Update 16

23 structures, buildings and roofs, roadways and parking lots, etc. These assets appear to be reflected in the City s financial information system, although not necessarily in the CMMS. Asset planning normally starts with generic asset plans developed by asset class. These are then applied to relevant assets and used for planning purposes until better plan information is developed through condition assessment, cost tracking, and so forth. So the process of asset planning is not as onerous as it may at first appear. Goal: Establish short-interval portions of asset plans. Short-interval actions are those that occur repeatedly within the asset s life-cycle, such as maintenance, condition assessment, cleaning, calibration, and so forth. Some short-interval actions will be defined within the CMMS. Others (primarily preventive maintenance) are not fully defined in the CMMS. These should be developed to assure they are asset-specific so cost data can be gathered in accordance with the asset hierarchy defined above. Where necessary, additional activities (primarily condition monitoring) can be added and maintained in the CMMS. Tactics: Review the CMMS to ensure all PM activities are represented at the appropriate level and with standard costs. Add condition monitoring activities when these are defined (see below). Review procedures for gathering costs at the asset level. Review capability of extracting both plan and historical cost data from the CMMS database for further analysis. This will be required since the CMMS has only limited analytical capability. Goal: Establish long-interval portions of asset plans. The CMMS is not used to maintain plans for long-interval activities such as rehabilitation and replacement, nor does it gather and report costs for these activities. Pending further system review, it is unclear at this time whether these activities can be maintained in the CMMS or whether they should be stored in a separate database and combined with short-interval information via extraction from the CMMS. Tactics: Review the CMMS to determine if plans for long-interval activities can be recorded there and costs gathered. Prepare generic long-interval plans using class-based plans. Enter into the CMMS (or alternative) database by asset. Modify the generic plans where specific timing and/or costs of long-interval activities are known for example, such as planned asset replacements. Goal: Develop procedures to update asset plans. Asset plans need to be updated regularly based on changes in the asset database and on improved knowledge of costs of ownership either at the class level or the individual asset level. City of Olympia Water System Plan Update 17

24 Improved knowledge will become available through regular reviews of asset condition, criticality, performance, and ownership costs versus plans. Tactics: Review current procedures to ensure the asset database is maintained to accurately reflect assets in service. Prepare procedures to analyze asset histories versus plans so plans can be updated to reflect best current knowledge on maintenance frequencies and activities, as well as expected rehabilitation and replacement needs. 6. Asset Rehabilitation and Replacement (R&R) One of the focuses of asset management is the improvement of asset R&R decisions. Goals will vary from risk avoidance, in the case of highly critical assets, to risk management, for less critical assets where unplanned failures can be accepted. Improved asset knowledge is the key to better R&R decisions criticality, condition, cost, and performance need to be considered in the analysis. Improved R&R decisions may go well beyond questions of timing, however. Where any major re- investment in an asset is required, the entire process for asset creation (needs analysis, alternatives formulation, etc.) should be revisited. Improved R&R planning arising from asset knowledge greatly improves the quality of capital funding strategies. Goal: Improve R&R planning. The maintenance of asset plans (see section directly above) fulfills this goal. To the extent that the long-range portions of the City s asset plans reflect good asset knowledge, then R&R plans for individual assets and for assets in aggregate will be dependable. This will support maintenance of adequate reserves or other funding mechanisms for upcoming R&R costs. Goal: Improve R&R analysis. Proper R&R analysis requires that the same type of investigation is made when an asset is created this ensures sub-optimal decisions made in the past are not repeated. Tactics: Prepare procedures for first cause needs analysis to be performed and documented prior to approving major R&R decisions. Prepare procedures for benefit-cost analyses of all reasonable alternatives for meeting the identified needs. Goal: Ensure R&R actions are properly reflected for financial reporting. Rehabilitation (and sometimes replacement) actions are often improperly recorded in the fixed asset register used to report asset value and depreciation. Common problems include failure to retire assets that rely on service and failure to extend the life of the underlying asset. The effect of errors may be cumulative over time and lead to material misstatements of financial condition. City of Olympia Water System Plan Update 18

25 Also, the costing of R&R actions should include all appropriate direct and indirect costs of the City, as required by the Governmental Accounting Standards Board, Statement 4 (GASB 4) on financial reporting by state and local governments. The Leadership Team did not specify any required gap closure in this area of asset R&R. However, the AMT may determine that additional action is required in this area in the long term. Tactics: Prepare guidelines for classifying R&R transactions for financial reporting purposes. Prepare procedures for analyzing and reporting R&R transactions as retirements, replacements, and improvements. In the case of the latter, the procedure should involve increasing the cost basis of the improved asset rather than adding the cost of a new asset. For refurbishments that affect the useful life of the underlying asset, procedures should ensure that the fixed asset register is updated to reflect the new remaining useful life. Prepare procedures for costing R&R actions that ensure appropriate internal City costs are included in R&R costs transferred to the fixed asset register. A standard percentage is often used for this purpose. 6.4 Asset Development The role of asset management in asset creation is to assure the City optimizes its investment in new infrastructure. That means the City always makes investments that are appropriate, are the best alternatives to meeting the identified needs, contribute to meeting required service levels, and have the lowest life cycle costs for the customer. Asset creation is a critical role for asset management because the initial choice of an asset is where the greatest opportunity for savings exists. Goal: Develop a systematic approach to creating assets. Utilities adhering to programmatic asset management have developed procedures to ensure capital investment is minimized consistent with required service levels. Typically, life cycle benefit-cost analyses are required for all new projects. While these analyses may not be able to quantify some sorts of benefits, such as regulatory or safety benefits, they can highlight the costs of such benefits and thus facilitate a far more rational approach to capital investment. Tactics: Prepare procedures for determining the need for new assets. These procedures will govern needs analysis (problem definition), alternatives formulation and analysis, benefit-cost analysis, and ultimate selection of the preferred alternative. Define life cycle costing in such a way that the life cycle cost of the preferred alternative becomes the initial asset plan for that alternative. Require consultants, if they perform such analyses, follow City standards. City of Olympia Water System Plan Update 19

26 Goal: Formalize constructability, maintainability, and operability standards (CMO) in the design process. One key to controlling life cycle costs of ownership is to stress constructability, maintainability, and operability (CMO) during the design process. This is normally done by early and frequent review by knowledgeable personnel from the affected parts of the organization. Tactics: Prepare procedures to maximize the value of the CMO process. This will normally require different levels of CMO effort depending on the size and nature of the project. Goal: Require asset coding schemes be followed by designers and contractors. The City will have developed a hierarchical asset coding scheme that will be shared by all asset-based systems and allow cost analysis by process, facility, infrastructure segment, etc. To save money and time, the City s consultants and contractors should use this coding scheme through the design and construction cycle. Tactics: Add asset coding requirements to the standard language for design contracts. Require all drawings be delivered with assets numbered accordingly. Add similar requirements to construction contracts. Require final pay notices be rendered in detail according to the coding scheme. This will ensure the original cost of each asset is known and can be recorded in the fixed asset reporting system. Goal: Maximize contractor contribution to asset plan development. For new or rehabilitated assets and facilities, contractors can substitute for City or consultant labor in providing asset planning and related information. It will be worth the effort to prepare standardized electronic forms for capturing these data so they can be easily transferred to the City s asset-based systems. Tactics: Prepare procedures and forms for contractors to submit. All data elements should be organized by asset, numbered per the City s asset hierarchy. Data elements required might include: o o o o o o Maintenance information (activity, frequency, parts and materials, for each preventive maintenance type). Estimated useful life of the asset note that a legal release might be required to protect the contractor against premature, but out-of-warranty, failure. Cost of the asset. Nameplate information. Attribute information (see discussion regarding asset classes, above). Warranty information. City of Olympia Water System Plan Update 2

27 Add language to any construction contract boilerplates to require contractors provide the information in the defined form. Additionally, require contractors deliver all O&M manuals and similar documentation in hard copy. Goal: Prepare condition monitoring requirements coincident with facility delivery. Contractors typically will not or cannot provide adequate condition monitoring procedures. City staff will need to do this. This will require a criticality analysis of the new facility in accordance with the hierarchy. Tactics: Prepare procedures governing hierarchical criticality analysis of new facilities upon delivery and assign asset to appropriate asset management regimes. (See Section 5.1, under goal titled Establish the level of asset management performed. ) For assets requiring monitoring, prepare the monitoring plan and add it to the associated asset plan (see Section 5.). 6.5 Asset Financing The Leadership Team did not identify any gap closures required in the following areas: Prepare funding plan Prepare and maintain a long-term capital funding plan of ten years or more with sources of capital, costs, and rate impacts identified. Prepare funding policies Document guidelines for capital funding that might include differentiation between R&R and new projects/improvements, debt service coverage limits (probably higher than specified in bond covenants), non-covenant capital reserve policies, etc. The Leadership Team did identify a need to more accurately reflect future long-term R&R needs in the City s capital funding plans. Goal: Improve use of cost trending for long-range capital funding plans. Capital funding plans are based on future capital needs, which are made up of two main categories of expenditures: New facilities/improvements and capital reinvestment (or R&R). The Leadership Team determined that knowledge of long-range R&R needs could be improved with better cost trending and better knowledge in this area will improve the quality and dependability of the City s funding plans. Tactics: Prepare software to project R&R needs over a longer time frame than is currently the case. (The Asset Tracking System currently under development at the City will accomplish this). Incorporate projected R&R needs, along with known near-term needs, into the City s capital funding plans. City of Olympia Water System Plan Update 21

28 Maintain the currency of plans by re-forecasting R&R needs as asset knowledge improves and updating the plans. 6.6 Asset Financial Reporting Financial reporting, especially fixed asset reporting, is an important element of asset management. Given that the City intends to comply with the depreciation approach of GASB 4, it is important that representations of asset value and depreciation be accurate and based on best asset knowledge, knowledge that is shared with other functions within the organization. Goal: Improve consistency of the financial information system asset database. The City needs to take steps to coordinate its financial reporting database with CMMS asset records. There should be an annual update procedure to keep the two systems synchronized and consistent. Tactics: Review the fixed asset list, Vueworks CMMS, the GIS system, and financial information system databases. Prepare more comprehensive procedures to ensure they reflect the same asset knowledge at the same level of detail. Review fixed asset records and re-define them according to the asset hierarchy. Review of GIS records may help with this. Allocate acquisition costs of grouped assets as required to specific assets and define useful lives of classes so depreciation can be calculated based on the new structure. Goal: Improve procedures to keep the fixed asset records up-to-date. For accurate financial reporting, the fixed asset records must be kept current. This means accurately reflecting in the records all additions, retirements, partial retirements, augmentations, and improvements in the City s capital assets. It also means the fixed asset records must reflect current best forward-looking asset knowledge. Tactics: Review procedures for inter-department communications and creating asset transactions, particularly for retirements, refurbishments, and augmentations. Ensure such activities are known and are used to update the fixed asset records and, in the case of augmentations or refurbishments, that useful lives are updated as necessary. Prepare procedures to ensure that, as asset knowledge improves - and especially as expected replacement years are better known by class or for specific assets - the City s fixed asset records are updated accordingly. Goal: Improve comprehensiveness of financial reporting. Complying with the depreciation approach of GASB 4 does not mean the City s financial reporting cannot disclose higher quality and more comprehensive infrastructure knowledge. For agencies reporting depreciation, GASB 4 encourages the disclosure of further information in City of Olympia Water System Plan Update 22

29 the Required Supplemental Information (RSI). Disclosure of such information may help the City maintain or improve bond ratings and will provide more transparent reporting to all stakeholders. Tactics: Prepare procedures to report additional infrastructure knowledge in the required supplemental information. Such knowledge will include current infrastructure condition, details of the City s asset management program, long-term financial needs to sustain the infrastructure, and plans for funding these needs. 7 Implementation Costs The Implementation Costs in Table 5 are estimates of internal City costs and potential services contracted to assist the City with developing the Asset Management Program. The hours are estimates of hours to complete the work for each of the gap areas. A fully loaded labor rate of $6 was used for the City labor cost and $1 per hour was used for the contracted work. The total implementation cost over the next five years for all gap closures is expected to be roughly $715, (in 214 dollars). City of Olympia Water System Plan Update 2

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31 Near Term Actions Gap Area Gap Implementation Plan Immediate Actions [Next 1-4 Months] Goal Table 5. Implementation Costs Olympia Staff Contractor / Consultant Staff Staff high $8 Cont. high $185 Staff mid $6 Cont. mid $1 Staff low $ Cont. low $8 Total Cost Staff hours Staff avg. rate Labor Staff Internal costs Expenses total cost Contractor Contractor Contractor Contractor Contractor hours avg. rate labor Expenses Total and Support Asset Management Organization Immediate Actions Asset Management Vision Obtain understanding and support from the City Council and Utility Advisory Committee. Establish relationships between service levels and costs. Gain agreement with customers as to the service levels they require and are willing to pay for. Establish asset management as part of the city culture and build the program organically through strategic efforts. Gain the resources necessary to conduct the AMT s work through the first full year. $9,215 $15,4 $11,75 $1,42 45 $6 $2,7 $25 $2, $6 $6,96 $25 $6, $6 $6,6 $25 $6, $6 $6,24 $25 $6, $1 $6,24 $2 $6,49 61 $1 $7,9 $125 $8,55 7 $1 $4,81 $ $5,11 1 $1 $4, $125 $4,155 Asset Management Program Communication Identify key stakeholder groups and identify their interests. $12, $6 $6,6 $1, $7,56 4 $1 $5,2 $25 $5,45 Total for Immediate Actions $59,45 $,16 $29,245 Gap Implementation Plan Near-Term Actions [Next 1-18 Months] Gap Area Goal Total Cost Staff hours Staff avg. rate Asset Knowledge Olympia Staff Contractor / Consultant Staff Staff high $8 Cont. high $185 Staff mid $6 Cont. mid $1 Staff low $ Cont. low $8 Staff labor costs Staff Expenses Internal total cost Contractor hours Contractor avg. rate Contractor labor Contractor Expenses Contractor Total Define the minimum level of detail for an asset. $15, $6 $9,66 $25 $9,685 4 $1 $5,2 $2 $5,4 Establish a uniform asset coding system. $18, $6 $1,8 $25 $1,45 6 $1 $8,19 $22 $8,41 Identify existing assets and related attributes. $18,66 12 $6 $7,2 $25 $7, $1 $11, $85 $11,45 Establish the consequence of failure for assets. $16, $6 $8,64 $25 $8, $1 $7,28 $225 $7,5 Establish the level of asset management performed. $16,5 168 $6 $1,8 $1 $1,18 45 $1 $5,8 $275 $6,125 Asset Operation and Maintenance Prioritize workload by risk. $6, $6 $2,7 $1 $2,8 2 $1 $4,16 $15 $4,175 Track asset failures consistently. $11,77 88 $6 $5,28 $25 $5,5 48 $1 $6,24 $225 $6,465 Asset Condition Monitoring Define condition monitoring methods. $24,5 151 $6 $9,6 $25 $9, $1 $15,8 $85 $15,465 Define condition monitoring program $8,66 9 $6 $2,4 $25 $2,65 48 $1 $6,24 $55 $6,295 Integrate condition monitoring with other business processes. $11,54 87 $6 $5,22 $25 $5, $1 $6,24 $55 $6,295 Asset Management Systems Prepare a system use plan for the Vueworks CMMS. $16,45 78 $6 $4,68 $1 $4,78 87 $1 $11,1 $255 $11,565 Total for Near-Term Actions $164,925 $75,74 $89,185 City of Olympia Water System Plan Update 25

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33 Long-Term Actions Long-Term Actions Gap Implementation Plan Long Term Actions [Next 1- Years] Gap Area Goal Total Cost Staff hours Staff avg. rate Asset Management Program Development Communicate the AMP s purposes and goals to the City organization. $2,62 Olympia Staff Contractor / Consultant Staff Staff high $8 Cont. high $185 Staff mid $6 Cont. mid $1 Staff low $ Cont. low $8 Staff labor costs Staff Expenses Internal total cost Contractor hours Contractor avg. rate Contractor labor Contractor Expenses Contractor Total 25 $6 $1, $55 $1,555 8 $1 $1,4 $25 $1,65 Asset Planning Establish short-interval portions of asset plans. $87,7 95 $6 $54, $225 $54, $1 $2,24 $95 $,175 Establish long-interval portions of asset plans. $111,7 1,145 $6 $68,7 $25 $69,25 16 $1 $41,8 $1,265 $42,45 Develop procedures to update asset plans. $25, $6 $12,6 $1 $12,16 14 $1 $1,52 $265 $1,785 Asset Rehabilitation and Replacement Improve R&R planning. $1,65 4 $6 $2,4 $1 $2, 8 $1 $1,4 $165 $1,565 Improve R&R analysis. $1,78 15 $6 $6, $1 $6,4 56 $1 $7,28 $1 $7,8 Ensure R&R actions are properly reflected for financial reporting. $21, $6 $9,6 $2 $9,8 88 $1 $11,44 $225 $11,665 Gap Implementation Plan Long Term Actions [Next 1- Years] Gap Area Goal Total Cost Staff hours Staff avg. rate Asset Management Program Development Communicate the AMP s purposes and goals to the City organization. $2,62 Olympia Staff Contractor / Consultant Staff Staff high $8 Cont. high $185 Staff mid $6 Cont. mid $1 Staff low $ Cont. low $8 Staff labor Costs Staff Expenses Internal total cost Contractor hours Contractor avg. rate Contractor labor Contractor Expenses Contractor Total 25 $6 $1, $55 $1,555 8 $1 $1,4 $25 $1,65 Asset Development Develop a systematic approach to creating assets. $4,8 17 $6 $8,22 $1 $8,2 192 $1 $24,96 $1,1 $26,6 Formalize CMO in the design process. $6,715 4 $6 $2,4 $55 $2,455 2 $1 $4,16 $1 $4,26 Require asset coding schemes be followed by designers and contractors. Maximize contractor contribution to asset plan development. Prepare condition monitoring requirements coincident with facility delivery. $2,62 4 $6 $24, $2 $24,2 64 $1 $8,2 $1 $8,42 $9,5 46 $6 $27,6 $255 $27, $1 $11, $1 $11,1 $27,75 16 $6 $8,16 $1 $8, $1 $19,11 $65 $19,475 Asset Financing Asset Financial Reporting Improve use of trending for long-range capital funding plans. Improve consistency of the financial information system asset database. Improve procedures to keep the fixed asset records up-to-date. $19, $6 $9, $1 $9,4 8 $1 $1,4 $55 $1,455 $2, $6 $1,74 $125 $1,865 1 $1 $1, $115 $1,115 $17,5 89 $6 $5,4 $1 $5,44 9 $1 $11,7 $165 $11,865 Improve comprehensiveness of financial reporting. $11,7 75 $6 $4, $25 $4, $1 $7,1 $55 $7,25 Total for Long Term Actions $489,27 $257,285 $21,985 Grand Total Implementation Costs $71,6 $6,185 $,415 City of Olympia Water System Plan Update 27

34 Attachment A Asset Management Industry/Practice Standards Evaluation

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36 Industry/Practice Standards Evaluation The HDR Team, under the Drinking Water Coordination Team s direction, conducted a review of the current status of asset management within the City. The review compared the City s asset management program with an ideal program as defined by best practices HDR has developed for utility management. The evaluation of business processes is based on group interviews of staff from the various City departments that provide services related to the drinking water utility. The following subsections summarize the information and staff observations provided in the interviews. The relative significance of each business process gap was identified as either none, minor, or significant. These significance designations represent the priority assigned to each business process. Priority values are based on the weighted gap determined by the criticality assigned to each gap, discussed further in Section 4. of the Water System Plan Update. Table A.1 outlines the corresponding weighted gap, priority, and significant designations. Weighted gaps and priorities for each business process are presented in the subsequent section of this Attachment. It should be noted that a significance designation of none does not necessarily imply there is no gap. Instead, a significance of none implies a weighted gap less than 8 (i.e., closing the gap is not a key priority). As such, although closing the gap for a particular business process may not be a priority a gap may still exist. Table A.1. Gap Significance Designation Weighted Criticality Priority Significance > 1 1 Significant <8 Asset Management Vision/Support Table A.2. Asset Management Vision/Support Best Practices Business Process Area Best Practice Gap Support from policy body Management direction Organizational Commitment Alignment with customer service Customer s perspective Corporate AM goals and objectives Allocation of resources The governing body understands the objectives of asset management and treats it as a policy priority. Top management strongly and visibly supports improved AM. All levels of management understand the importance of AM and agree on need for improvement. The relationships between service levels and costs are understood. Programs exist to help customers understand the costs of various service levels, and to gain agreement on the desired service levels. There is an understanding of the customer s level of service expectation, how AM will benefit them, and ongoing communication to manage those expectations. AM is a key part of the AMP and has associated goals, objectives, strategies, etc. Top management has authorized the resources to develop or sustain an AM program. Significant City of Olympia Water System Plan Update A-1

37 Top management within the Water Resources Group strongly and visibly supports incorporating AM into regular practices. Although the Drinking Water Coordination Team believes that top management supports a program for improved asset management, there has been no formal statement of policy or direction. All groups interviewed believed that improved asset management was warranted and appeared to welcome the prospect of an effort to improve practices in this area. There has been no formal definition of corporate asset management goals and objectives for asset management, but leadership has adopted levels of service and many of these have goals that relate to asset management. The relationships between the service levels and costs are not well understood and will need to be expanded. The levels of service have been defined, but the financial systems do not easily report the cost of the levels of service. The Water Quality reports are being prepared to communicate the levels of service on an annual basis, but there are no programs existing to help customers understand the costs of various service levels or to gain agreement on the desired service levels. Asset Management Organization Table A.. Asset Management Organization Best Practices Business Process Area Best Practice Gap Asset Manager Responsibility Establishment of AM Team AM Program Overview AM Program Development Resources and progress Top management has appointed an Asset Manager with the authority to lead an Asset Management Team (AMT) and the resources to develop and sustain an AM program. The AMT has been formally constituted with senior management representation from Planning, Design, Construction Management, O&M, Finance, and Customer Service at a minimum. The AMT has prepared a set of goals and objectives for moving ahead with AM. The AMT has developed a general outline of the desired AM program with defined schedules and preliminary responsibilities for performance. The AMT has allocated the initial resources needed to move ahead with program development, training, monitoring, controlling, reporting, auditing, and updating and improving the AM program. Significant The Public Works Leadership Team is tasked with managing the asset management process, starting with creation and maintenance of the AMP. An Asset Management Coordinator and Asset Management Team (AMT) have not been appointed. There are senior managers who drive the current asset register process and manage related procedures, but there is not a cross- functional AMT. A Program Charter has not been prepared, a City improvement plan has not been approved, and the necessary framework for executing the plan has not been put in place. There is no clear written management direction, but the City did hire a consultant to develop improvements and make changes to the Vueworks CMMS that will allow for tracking an asset s remaining useful life, acquisition cost, and some other attributes. The City has recently started City of Olympia Water System Plan Update A-2

38 to use the methodology for tracking assets and utilizing the system. That process is well defined. There appears to be commitment at all levels for improvement of asset management and a good awareness of what asset management means to the City. There is a medium level of cross- functional commitment between technical services and operations with respect to asset planning, and possibly weaker top management commitment at this point due to lack of familiarity with the goals of asset management. Clear organizational asset management goals and direction need to be set. The current program lacks clarity and is largely undefined. In the near-term, an Asset Management Team (AMT) should be established and made responsible for driving the asset management program goals, allocating resources, assigning initial resources and determining medium-term availability of resources to develop the asset management program. The City is financially committed to the program but has not documented the long-term costs nor made an analysis of the long-term benefits and commitments. Asset Management Program Development Table A.4. Asset Management Program Development Best Practices Business Process Area Best Practice Gap Assessment of current practices Development of vision Analysis of gaps Preparation of EAMP Communication of EAMP AM Program Audit Current AM-related business processes are identified, documented, understood, and evaluated. The AMT has defined goals for achievement in each AM performance area, with associated periods. Comparisons have been made between the current status of business practices and the desired status, and gaps have been identified. An Enterprise Asset Management Plan (EAMP) has been prepared to close the gaps within the associated time frames, and all associated elements (resources, responsibilities, reporting, etc.) have been specified. The EAMP specifies the quantitative benefits expected from the AM program. The EAMP has been communicated to guide all parts of the organization involved in gap closure and general strengthening of AM. The overall AM Program is reviewed periodically for adherence to the plan goals and for measurements of actual benefits arising from AM. Current AM-related business processes are loosely identified with some of them documented and evaluated. There is an existing asset management strategy, but it is in need of an update. Within City facilities, they have been looking at building condition assessments. There are rating systems for buildings. There are also formal condition assessment programs within the transportation department. Water Resources is slightly lagging wastewater in formal AM practices. Public works would like to expand to pumping systems, for example, with more detailed documentation. Condition assessment has been difficult to do on the water system. City of Olympia Water System Plan Update A-

39 There is no formal process of determining the condition of the water assets. Water Resources is trying to use Vueworks as the asset database and for improving inventory of assets. Asset Knowledge Table A.5. Asset Knowledge Best Practices Business Process Area Best Practice Gap Asset detail Asset criticality Asset categorization Asset classes Asset hierarchies Asset identification Criteria are established for the level of detail at which asset identification takes place (maintenance requirements, date in service, acquisition cost, description, nameplate data, horsepower, length, diameter, etc.). Criticality is determined for each asset based on reliability and consequence of failure in terms of cost, service delivery risk, environmental risk, etc. Levels of AM are identified (full management, routine maintenance, run to failure, etc.) and criteria for assignment of assets to each category have been developed based on cost and criticality. Asset classes are identified for all assets and class definitions have been documented. Default estimates, formulas, or look- ups are established for R&R intervals, useful lives, and R&R costs by asset class. Asset hierarchies are defined for all facilities and assets and are used throughout the asset life-cycle, including design and construction. Assets have been identified at the appropriate level of detail, given criticality measures, categorized with respect to management regime, assigned to asset classes, and tagged per the asset hierarchy. Significant Most of the assets included in the CMMS are uniquely numbered. Pipe segments are intrinsically numbered and identified by the geographic information system (GIS) Facility ID. Asset hierarchies are defined for all assets except the pump stations. Asset classes are identified for water mains and valves, but not for pump stations and pumping equipment. Asset class definitions have not been documented. Default estimates, formulas, or look-ups have not established for Rehabilitation and Replacement (R&R) intervals, useful lives, or R&R costs by asset class. Water Resources applies asset hierarchies throughout the asset life-cycle, including design and construction The year of acquisition is carried in the CMMS in some cases, so asset age could be determined from this source in the future if this practice is maintained. The year of acquisition should always be included in the fixed asset database maintained by Finance. These two systems are not linked or reconciled annually, at the moment. The useful life of an asset is listed in the CMMS as well as the Finance database. The expected useful life is determined by asset class only and does not take application into account (critical City of Olympia Water System Plan Update A-4

40 equipment versus secondary or spare equipment), nor does it consider asset condition or performance. Asset Planning Table A.6. Asset Planning Best Practices Business Process Area Best Practice Gap Asset plans Short-interval activities Long-interval activities Asset plan maintenance Project prioritization Life-cycle asset plans exist for assets at levels defined by the hierarchy. Asset plans include short-interval activities along with standard labor hours, materials, etc., for preventive maintenance, calibration, adjustment, cleaning, and condition assessment. Allowances for planned levels of corrective maintenance are included. Asset plans include years and estimated costs of longinterval capital refurbishments and asset replacement, along with pricing years. Costs include salvage values (if any) and disposal costs. Asset plans are regularly updated based on deviation from planned ownership costs, unexpected changes in asset condition, etc. The asset planning process is used to establish project priorities. There is no lead drinking water engineer to manage the life-cycle asset plans. Such plans do not formally exist for assets at levels defined by the hierarchy. At the moment there is no standard asset hierarchy for Water Resources. There is an asset plan in place for small diameter pipes. Asset plans are carried out through regular short-interval activities and use of labor hours and materials. Activities include preventive maintenance, calibration, adjustment, cleaning, and condition assessment. Allowances are provided for planned levels of corrective maintenance. Short-interval asset planning is addressed through entering preventative maintenance requirements into the CMMS. This appears to apply only at McAllister Springs and pump stations. Preventive maintenance (PM) plans are not optimized over time and staff note that changing PM frequencies (for instance) requires an operating contract amendment in each case. There are maintenance management plans within each operation group, but staff has had problems organizing the information within the Vueworks system with both functionality and getting all the asset data into the system. The plan is for the maintenance management plans to be written down with maintenance tasks input into Vueworks. Criticality as part of the asset planning process is used to establish project priorities. There is a capital facilities project listing. Once in the project list, a group of people will look at reliability, regulatory and some informal risk priority. Any project that is more than $, will be capitalized. Project prioritization is done on an annual basis. The City of Olympia has a good capital project prioritization process with a citizen review. Engineering and O&M staff meet biweekly to track projects and status. City of Olympia Water System Plan Update A-5

41 Asset Management Program Communication Table A.7. Program Communications Best Practices Business Process Area Best Practice Gap Stakeholder confidence Service demands Environmental compliance strategy Communications plan AM strategy awareness Continuous improvement indicators Staff education Levels of service are measured and determined that process and programs are on track to meet the expectations of all stakeholders. Growth and level of service needs are identified and on scheduled basis and communicated as part of the AM planning process. Regulatory requirements and pending requirements are continuously monitored and communicated as part of the AM planning process. Communications plan is established and used to communicate goals and objectives to all staff and stakeholders. Staff are aware of the AM program goals and have specific knowledge of their level of involvement and responsibilities. Indicators of success are established to measure effectiveness of the AM program and used to develop corrective actions on a proactive basis. Training program consists of an education program that is developed to meet skills needed and enhancing staff growth potential. Significant There is currently no formal asset management communication program to educate staff on a continuous basis. The Leadership Team considers a communication program important to gaining the commitment and support of stakeholders in the asset management process. City of Olympia Water System Plan Update A-6

42 Asset Development Table A.8. Asset Development Best Practices Business Process Area Best Practice Gap Origination Scope for projects Alternatives Life-cycle costs Delivery methods Operability and maintainability Design requirements The need for new assets or projects is anticipated well in advance and arises from master plans or specific asset plans (not ad hoc, annual polling in engineering and operations, etc.). The need for assets or projects is documented in a way that leaves alternatives open to consideration. Alternative assets or projects are identified, including rerating or reconfiguration of existing assets. Life-cycle costs of alternatives are prepared according to defined formats and present-value analyses contribute to selection. All legally available delivery methods are considered, such as in-house, design and construct, design-build (DB), design- build-own (DBO), design-build-own-operate (DBOO), and selection made with due consideration of comparative life-cycle costs. Operations and Maintenance (O&M) personnel are involved in design from an early point with the objective of minimizing ongoing costs of asset ownership. Drawings identify assets by the standard hierarchical asset coding scheme. Construction requirements Facility is delivered with asset listings in accord with the asset coding scheme. Acquisition costs and life-cycle plan data at the asset level are delivered along with the asset listings. Asset reliability and assessment updates Operating manuals, procedures, and guarantees Asset tracking If a delivered facility includes new asset types, processes, or components outside the existing asset coding scheme, the scheme and condition assessment program are updated. Design and construction requirements include delivery of operating and maintenance manuals, guarantee information, and asset plan data. For all new assets, and in accord with the asset coding scheme, life-cycle asset plan, and asset data are entered into the AM system. Assets removed from service are retired. An outside consultant usually performs needs assessments for significant new capital assets as part of the planning efforts. The need for new assets or projects is anticipated well in advance and arises from master plans or specific asset plans (not ad hoc, annual polling in engineering and operations, etc.). When a capital project is funded there is a service agreement between the line of business program and the City s internal engineering service. The development community, through private developers, are also providing assets and submitting record drawings. City of Olympia Water System Plan Update A-7

43 Alternatives to new capital asset acquisition are considered as part of the design phase, but asset lifecycle costing is not usually undertaken. In some cases design consultants perform this task as a necessary part of their own design process and product selection. There are no defined procedures or standards for doing lifecycle costing at the City. Asset maintainability and operability are informally addressed through an effort to seek asset quality rather than the lowest possible initial acquisition cost. Lacking lifecycle costing, it cannot be confirmed that this approach always results in the lowest cost of asset ownership. Asset reliability and the associated condition monitoring protocols should normally be established at asset formation as part of each Asset Plan. The monitoring program depends on the condition assessment methodologies and the likely failure modes of each asset. Staff reports that asset failure modes are not defined for new assets or existing assets. No condition monitoring scales are prepared for these assets, nor are condition monitoring programs prepared. Asset Operations and Maintenance (O&M) Table A.9. Asset O&M Best Practices Business Process Area Best Practice Gap PM definition PM scheduling Corrective maintenance Maintenance costs Failure codes defined Analysis is done to update asset plans PM versus CM Risk and backlog Preventive maintenance (PM) activities are fully defined at the appropriate asset level and in accord with the assigned management regime. Intervals and resource information (standard hours, parts lists, etc.) are included. PM is scheduled and performed in accord with the specified intervals. Corrective maintenance (CM) usually arises from condition assessment and is performed prior to failure. Management measures CM work orders arising from assessment versus failure to improve performance in this area. Work orders are prepared on an asset-specific basis. Costs of fulfilling work orders are accumulated along with underlying details (hours used by craft, actual materials, etc.). Failure codes are tied to failure modes at the asset class level. Asset failures are recorded with appropriate codes and details. Asset failures are analyzed and used to update PM procedures and intervals as well as R&R schedules for similar assets. The balance of preventive versus corrective maintenance is periodically assessed, and the analysis is used to manage and improve the maintenance program. Maintenance backlogs are prioritized based primarily on the criticality and condition of the underlying assets. Operational considerations Operational procedures and performance are assessed periodically to minimize maintenance expenses caused by operational factors. Predictive maintenance The potential for predictive maintenance is continually assessed and such measures are used where economical or indicated by risk factors. Significant Significant Significant City of Olympia Water System Plan Update A-8

44 There are not written Operation and Maintenance Strategies, but staff report that they generally know what to do to maintain levels of system reliability. Preventive maintenance (PM) activities are defined for some but not all water assets. There are problems right now with the way staff use Vueworks. Work orders are done after the fact. Olympia needs to fully define the appropriate asset level maintenance requirements of water system assets in accord with the assigned management strategies. Intervals and resource information (standard hours, parts lists, etc.) should be included. Some maintenance work such as tank painting by contractors is not tracked in Vueworks Failure codes are used in Water Resources. However, they are not tied to any type of failure modes at the asset class level. Additionally, asset failures are not consistently recorded with the appropriate codes and details. Asset failures are not analyzed on a regular basis. Most of the work is reactive and so there is not a process to update PM procedures and intervals or make any alterations to the R&R schedules for similar assets. The CMMS has the capability to measure maintenance costs by asset. This includes data entry for parts, consumables, and employee time. Accuracy of maintenance cost information already gathered is unknown. Staff reports that it is possible to retrieve asset cost histories, but it is not regularly done by the City. Asset Condition Monitoring Table A.1. Asset Condition Monitoring Best Practices Business Process Area Best Practice Gap Condition monitoring methodology Condition rating and scoring Condition tracking Maintenance scheduling Corrective actions Appropriate procedures, intervals, and rating methodology for new assets are determined at or prior to delivery and allow for consistency in condition assessments. Rating scales, tied to potential failure modes, have been prepared by asset class. Methodologies assure replicable ratings (e.g., they support GASB 4 s modified approach ). Procedures exist for determining, recording, tracking, and updating condition assessments and intervals. Trends in assessed condition, along with cost and risk analyses, are used to update intervals for preventive maintenance. Trends in assessed condition, along with cost and risk analyses, are used to update long-term cost estimates and near- term schedules for corrective maintenance. Significant Significant Significant There are no written procedures for doing condition assessment. Condition monitoring is done informally and without a defined program. Any corrective actions that are needed are normally done per the manufacturer s recommendations. City of Olympia Water System Plan Update A-9

45 Asset Rehabilitation and Replacement Table A.11. Asset Rehabilitation and Replacement Best Practices Business Process Area Best Practice Gap R&R planning R&R alternatives R&R analysis Life extensions R&R costs Audit of R&R practices Most R&R decision points are known in advance through the asset planning process. Surprises are minimal. Alternatives are identified and fully considered including refurbishment, replacement, and re-rating or reconfiguration of existing assets. R&R alternatives are evaluated considering economics and risk factors. In the case of refurbishment, the life extension (if any) of the underlying asset is estimated. The capital asset plan for the subsequent life-cycle is updated. R&R costs, including indirect costs, are recorded in the asset history. R&R planning and execution processes are reviewed periodically. Benefits from these procedures are measured, and programmatic improvements are proposed. Major rehabilitation projects are known in advanced and planned as far out as six years. Smaller projects are normally performed as an operating expense. In either case, the useful lives of the improvements are not usually estimated. Capital projects and asset rehabilitation project are referred to Finance for inclusion in the fixed asset listing by groups or as a project line item. There is no consistency in how they are accounted for in the fixed asset register. Life extensions of the underlying assets are not defined in most cases. All staff involved in replacement decisions typically consider the following: Alternative replacement assets Increased utilization of existing assets Rehabilitation alternatives Technical alternatives These factors are not considered in a set procedure but are considered on a case-by-case basis. There is no formal lifecycle financial analysis, and there is no process documentation unless the replacement project is analyzed in a consultant s design report. When a new asset in the CMMS replaces the old asset, the old asset is removed from the fixed asset listing to the best extent possible by Finance. Comparisons between the CMMS and the fixed asset listing are not made on an annual basis. City of Olympia Water System Plan Update A-1

46 Asset Financing Table A.12. Asset Financing Best Practices Business Process Area Best Practice Gap Growth needs R&R needs Funding plan Funding policies Historical trending Systems to determine the system growth and necessary capacity are determined on a scheduled basis and used to determine the funding needs. Near- and long-term R&R needs are known or estimated through the asset planning process. Sufficient reserves exist to handle unexpected near-term needs. A funding plan for infrastructure sustenance exists and is maintained. Alternative sources of funding, including reserve accumulations, are considered. The governing body has approved formal long-term funding policies for infrastructure sustenance. Procedures to review the trend in funding plans and available funds are done to update the funding plan and policies. The City has several different systems for financial planning based on system growth and capacity needs. The WaterGEMS hydraulic model is the main tool used for determining future needs, but outside consultants also provide information. Data are used to determine the funding needs. Data from the growth expectations can also be used as part of a rate path model that is updated annually. The planning horizon is a 6- year R&R needs forecast with an additional 5% kept as reserve for unexpected near-term needs. Additional procedures to review the trend in funding plans and available funds should be carried out periodically to update the funding plan and policies as-needed. This could also include a number of scenario planning efforts with the rate model to optimize planning. City of Olympia Water System Plan Update A-11

47 Asset Finance Reporting Table A.1. Asset Finance Reporting Best Practices Business Process Area Best Practice Gap Consistency in reporting Change management Comprehensive reporting Budgeting with objectivity Cost forecasting The financial reporting asset database is identical to or synchronized with the engineering and operations asset listings. Asset additions, capital refurbishments, expansions, partial retirements, and full retirements are accurately reflected in the financial reporting database in a timely manner. The financial reporting database is updated to account for asset retirements, additions, and betterments. Key asset and AM data are reflected in the financial statement s Required Supplemental Information (RSI), if GASB 4 s modified approach is not used. Long-term capital needs for infrastructure sustenance and funding policies to meet those needs are reported. Depreciable lives are updated if appropriate. Budgets are developed in accordance with system needs and predefined levels of services. Budgets are measured against the goals and objectives. Periodic analyses are undertaken of the financial results and used to determine future costs of assets and asset operation and maintenance costs. The City prepares its financial reports using the depreciation approach and has no plans to change to GASB 4 s modified approach. The potential for reporting asset management information in the RSI was not addressed. Asset additions, capital refurbishments, expansions, partial retirements, and full retirements are recorded by the Financial Group in the financial reporting database HTE in a timely manner, but not synchronized with the Vueworks system The financial reporting database is updated to account for asset retirements, additions, and advancements. Depreciable lives of the assets are also updated if appropriate. Key asset and AM data are presented in the financial statement. Long-term capital needs for infrastructure sustenance and funding policies to meet those needs are reported. Water Resource budgets are developed in accordance with system needs and predefined levels of services. Budgets are measured against Water System Plan goals and objectives City of Olympia Water System Plan Update A-12

48 Asset Management Systems Table A.14. Asset Management Systems Best Practices Business Process Area Best Practice Gap Information system plan Data collection tools Forecasting tools Standards and protocols System integration plan The information system is planned and budgeted annually with a 5-year forward forecast of needs that were gathered from all divisions of the organization. Data collection tools are used to streamline the process of data input and improve accuracy of information in the databases. Forecasting of AM needs is done through the use of optimization tools (capacity planning, asset acquisition, maintenance analysis, R&R alternatives, etc.). Standards and protocols for asset information systems exist and are followed by all divisions of the organization and managed under a single party. Plan has been prepared to integrate the various asset information systems into a single point of data access and reporting. Linked to inventory/ stores The AM system is linked to the inventory and stores system. Linked to budget/ performance reporting Linked to F/A system GIS functionality Supports GASB 4 depreciation method Supports GASB 4 modified approach Change management process The AM system is linked to the budgeting and the financial performance reporting system. The AM system is linked to the financial accounting system. GIS support field maps and is used to access asset information through a graphical interface. The GIS is available to all necessary users. The AM Information system meets GASB 4 depreciation requirements. The AM Information system meets GASB 4 modified approach requirements. An integrated process ensuring that software issues, change requests, and bugs are managed and controlled in a formal and consistent manner. In addition to the evaluation of the City s asset management business processes, this review also addressed, at a summary level, the City s asset based information systems. The information systems are planned and budgeted annually as part of the regular budgeting process with a 6-year forward forecast of needs that were gathered from all divisions of the Public Works Department. There is no written IT Strategic Plan or forward looking goals for data integration to support asset management. An upgrade to OneSolution is planned for 214 and that may provide some additional opportunities for updating the way assets are tracked within the financial fixed asset register. The City has the following asset based systems: CMMS (Vueworks) is used primarily to support maintenance and accumulate costs for maintenance activities. City of Olympia Water System Plan Update A-1

49 Billing system (HTE) includes water meter information. GIS is an ESRI application used for map generation and spatial analysis The Vueworks CMMS has the capability to deal with asset hierarchies; that is, costs and other activities may be recorded at a top level (e.g., facility) or at subsidiary levels (e.g., individual pump, motor, electric system, etc.). Costs of subsidiary levels can be rolled up to the top level. The actual structuring of the CMMS data in this regard is inconsistent from one group of assets to another. Condition assessments are made of the assets but not in a programmatic way, nor are the assessments represented in the CMMS database. Inspection reports that show a need for immediate corrective action may be an exception, but this is unverified. The CMMS is integrated with GIS and has robust mapping functionality. The CMMS database contains limited financial and remaining useful life data, but its suitability for comprehensive asset management is poor. This is due to limited reporting of acquisition cost versus replacement cost, as well as remaining useful lives which are available only on an asset class basis and not supported by assessment of condition, criticality, or cost factors. In general, the City s asset knowledge is fragmented among several databases that are not linked or reconciled. The primary databases are the CMMS, Finance s fixed asset listing, the billing system, and the GIS mapping system. Asset Management Gap Analysis The gap analysis discussed in section 18.4 of the Water System Plan Update is summarized below in Figure A.1. The current status of asset management within the City compared to current best practices, as well as the resulting gap, for each utility business management evaluation topic is outlined below. City of Olympia Water System Plan Update A-14

50 Score Support From Policy Body Management Direction Organizational Commitment Customer's Perspective Corporate AM Goals And Objectives Allocation Of Resources Asset Manager Responsibility Establishment of AM Team Asset Management Overview Program Development Resources and Progress Assessment of Current Practices Development of Vision Analysis of Gaps Preparation of EAMP Communication of EAMP AM Program Audit Asset Detail Asset Criticality Asset Categorization Asset Classes Asset Hierarchy Asset Identification Asset Plans Short-interval Activities Long-interval Activities Asset Plan Maintenance Project Prioritization Stakeholder Confidence Service Demands Environmental Compliance Strategy Communication Plan AM Strategy Awareness Continuous Improvement Indicators Staff Education Origination Scope for Projects Alternatives Life-Cycle Costs Delivery Methods Operability and Maintainability Design Requirements Construction Requirements Asset Reliability and Assessment Update O&M Manuals, Procedures, Guarantees Asset Tracking Vision and Support Organization Program Development Figure A.1. Utility Business Management Evaluation Matrix Asset Knowledge Asset Planning AM Program Communication Asset Development Attribute Optimizing Managed 7 6 Defined Approach 4 Initial 2 Unaware 1 Notes: Priority (1) Develop appropriate score with AM Team 1 > 1 Optimizing Continual improvement, refinement of processes, standards and procedures (2) Establish current scores based on interviews 2 >8, <1 Managed Quantitative measurements are defined for processes and quality standards () Assume criticality weighing between 1 (low) to 5 (high) < 8 Defined Approach Defined repeatable approach that is documented and communicated within the organization Initial Reactionary and without a systematic approach Gap Unaware Total unawareness within organization Current Status City of Olympia Water System Plan Update A-15

51 PM Definition PM Scheduling Corrective Maintenance Maintenance Costs Failure Codes Defined Analysis Done to update Asset Plans PM versus CM Risk and Backlog Operational Considerations Predictive Maintenance Condition Monitoring Methodology Condition Rating and Scoring Condition Tracking Maintenance Scheduling Corrective Actions R&R Planning R&R Alternatives R&R Analysis Life Extensions R&R Costs Audit of R&R Practices Growth Needs R&R Needs Funding Plan Funding Policy Historical Trending Consistency in Reporting Change Management Comprehensive Reporting Budgeting with Objectivity Cost Forecasting Information System Plan Data Collection Tools Forecasting Tools Standards and Protocols System Integration Plan Linked to Inventory /Stores Linked to Budget/Performance Reporting Linked to F/A System GIS Functionality Supports GASB 4 Depreciation Method Supports GASB 4 Modified Approach Change Management Process City of Olympia Water System Plan Update A-16 Asset Operation and Maintenance Asset Condition Monitoring Asset Financial Reporting Asset R&R Asset Financing Asset Management System

52 UTILITY BUISNESS MANAGEMENT EVALUATION TOPICS Vision/Support Best Practice Gap Current Observation Support from policy body Management direction Organizational Commitment Alignment with customer service Customer s perspective Corporate AM goals and objectives Allocation of resources The governing body understands the objectives of asset management and treats it as a policy priority. Top management strongly and visibly supports improved AM. All levels of management understand the importance of AM and agree on need for improvement. The relationships between service levels and costs are understood. Programs exist to help customers understand the costs of various service levels, and to gain agreement on the desired service levels. There is an understanding of the customer s level of service expectation, how AM will benefit them, and ongoing communication to manage those expectations. AM is a key part of the strategic plan and has associated goals, objectives, strategies, etc. Top management has authorized the resources to develop or sustain an AM program. Significant The City Council has seen asset management presentations, but not as part of the Water System Plan. The City Council understands the concepts of asset management. The Mayor, for example, fully understands the objectives of asset management. Top management within the Water Resources Group strongly and visibly supports incorporating AM into regular practices. The City Council and Water Resources Group understand the importance of AM and recognize the need for and benefit of improving upon current practices. The relationships between service levels and costs are not well understood. Levels of service have been defined, but measuring the cost of the levels of service is not practiced. There are no programs existing to help customers understand the costs of various service levels or to gain agreement on the desired service levels. Water quality reports are being prepared to communicate the levels of service on an annual basis. There is an understanding of the customer s level of service expectation, but not how AM will benefit them. Customers have high levels of respect for the Water Resources Group. Levels of service are published in the Water System Plan and the updated as part of the budget process AM is a key part of the Water System Plan, which acts as the strategic plan. This includes the associated goals, implementation strategies, operational improvements, and resource planning objectives. Water Resources top management has authorized the resources to develop or sustain an AM program as part of the Water System Plan. Organization Best Practice Gap Current Observation Asset Manager Responsibility Establishment of AM Team AM Program Overview AM Program development Resources and progress Top management has appointed an Asset Manager with the authority to lead an Asset Management Team (AMT) and the resources to develop and sustain an AM program. The AMT has been formally constituted with senior management representation from Planning, Design, Construction Management, O&M, Finance, and Customer Service at a minimum. The AMT has prepared a set of goals and objectives for moving ahead with AM. The AMT has developed a general outline of the desired AM program with defined schedules and preliminary responsibilities for performance. The AMT has allocated the initial resources needed to move ahead with program development, training, monitoring, controlling, reporting, auditing, and updating and improving the AM program. Significant There is no plan to have or appoint an Asset Manager. The Water Resources Director has the authority to lead AM efforts through existing teams and will manage the resources to develop and sustain any AM related programs. There is no formal Asset Management Team. AM will be constituted with senior management representation from Planning, Design, Construction Management, O&M, Finance, and Customer Service. Public Works has prepared a set of goals and objectives for moving ahead with the Water System Plan. AM is a part of the Water System Plan. Public Works is in the process of developing the AM program as part of the Water Resources and has developed a general outline of the desired AM program with defined schedules and preliminary responsibilities for performance. There are dedicated resources allocated to move ahead with program development, training, monitoring, controlling, reporting, auditing, updating, and improving the AM program. There is no succession plan. Most of the training is done through on the job training. There is no standard performance review process. It is left up to the supervisor. Program Development Best Practice Gap Current Observation Assessment of current practices Development of vision Analysis of gaps Preparation of EAMP Current AM related business processes are identified, documented, understood, and evaluated. The AMT has defined goals for achievement in each AM performance area, with associated periods. Comparisons have been made between the current status of business practices and the desired status, and gaps have been identified. An Enterprise Asset Management Plan (EAMP) has been prepared to close the gaps within the associated time frames, and all associated elements (resources, responsibilities, reporting, etc.) have been specified. The EAMP specifies the quantitative benefits expected from the AM program. Current AM related business processes are loosely identified with some of them documented and evaluated. There is an existing asset management strategy, but it is in need of an update. Within facilities, they have been looking at building condition assessments. There are rating systems for buildings. There are also formal condition assessment programs within the transportation department. Water Resources is slightly lacking wastewater in formal AM practices. Public works would like to expand to pumping systems, for example with more detailed documentation. Condition assessment has been difficult to do on the water system. There is no formal process of determining the condition of the water assets. Water Resources is trying to use Vueworks as the asset database and for improving inventory of assets. There is no asset management team or asset manager. There is a desire to build an asset management team, but need to have defined goals for achievement in each AM performance area, with associated periods as part of the water master plan. Comparisons have been made between the current status of Water Resources AM practices and their desired status. The gaps between the current and desired status have been identified. The Water System Plan will serve as the Enterprise Asset Management Plan (EAMP). The plan specifies the quantitative benefits expected from the AM program. There are also annual plans for each staff and group. There is written feedback for each staff. The idea is to prepare an employ development program. Each group has there own performance measures. Every one uses a different process and is allowed autonomy in preparing their performance measures. Performance measures will City of Olympia Water System Plan Update A-17

53 be used to hold people accountable. Communication of EAMP AM Program Audit The EAMP has been communicated to guide all parts of the organization involved in gap closure and general strengthening of AM. The overall AM Program is reviewed periodically for adherence to the plan goals and for measurements of actual benefits arising from AM. The Water System Plan has communicated to staff to guide all parts of the organization involved in gap closure and general strengthening of AM. Staff meetings are used to communicate the AM part of the Water System Plan to the staff. Public works planning is feeding into a city structure of comprehensive planning. The Framework will be developed in January 214. The comprehensive AM Program is reviewed periodically for adherence to the Water System Plan AM goals and for monitoring actual benefits arising from AM. Asset Knowledge Best Practice Gap Current Observation Asset detail Asset criticality Asset categorization Asset classes Asset hierarchies Asset identification Criteria are established for the level of detail at which asset identification takes place (maintenance requirements, date in service, acquisition cost, description, nameplate data, horsepower, length, diameter, etc.). Criticality is determined for each asset based on reliability and consequence of failure in terms of cost, service delivery risk, environmental risk, etc. Levels of AM are identified (full management, routine maintenance, run to failure, etc.) and criteria for assignment of assets to each category have been developed based on cost and criticality. Asset classes are identified for all assets and class definitions have been documented. Default estimates, formulas, or look ups are established for R&R intervals, useful lives, and R&R costs by asset class. Asset hierarchies are defined for all facilities and assets and are used throughout the asset life cycle, including design and construction. Assets have been identified at the appropriate level of detail, given criticality measures, categorized with respect to management regime, assigned to asset classes, and tagged per the asset hierarchy. Significant High level asset details have been identified, however criteria have not been established for the level of detail at which asset identification takes place (maintenance requirements, date in service, acquisition cost, description, nameplate data, horsepower, length, diameter, etc.). The WaterGEMS model is used to track system criticality. Criticality is determined for some but not all asset. Pipes are scored in the WaterGEMS tools. The City is planning on moving more toward a basis of ranking on reliability and consequence of failure in terms of cost, service delivery risk, environmental risk, etc. Levels of AM are not identified (full management, routine maintenance, run to failure, etc.) in the Vueworks systems and criteria for assignment of assets to each category have been developed based on cost and criticality. Asset classes are identified for water mains and valves, but not for pump stations and pumping equipment. Asset class definitions have not been documented. Default estimates, formulas, or look ups have not established for R&R intervals, useful lives, or R&R costs by asset class. Asset hierarchies are defined for all facilities and assets. Water Resources applies asset hierarchies throughout the asset life cycle, including design and construction. Assets have been identified at the appropriate level of detail, given criticality measures, categorized with respect to management regime, assigned to asset classes, and tagged per the asset hierarchy. Asset Planning Best Practice Gap Current Observation Asset plans Short interval activities Long interval activities Asset maintenance plan Project prioritization Life cycle asset plans exist for assets at levels defined by the hierarchy. Asset plans include short interval activities along with standard labor hours, materials, etc., for preventive maintenance, calibration, adjustment, cleaning, and condition assessment. Allowances for planned levels of corrective maintenance are included. Asset plans include years and estimated costs of long interval capital refurbishments and asset replacement, along with pricing years. Costs include salvage values (if any) and disposal costs. Asset plans are regularly updated based on deviation from planned ownership costs, unexpected changes in asset condition, etc. The asset planning process is used to establish project priorities. There is no lead drinking water engineer to manage the life cycle asset plans. They do not formerly exist for assets at levels defined by the hierarchy. At the moment there is no standard asset hierarchy for Water Resources. There is an asset plan in place for small diameter plan. Asset plans are built into the Water System Plan. Asset plans are carried out through regular short interval activities and use of labor hours and materials. Activities include preventive maintenance, calibration, adjustment, cleaning, and condition assessment. Allowances are provided for planned levels of corrective maintenance. The Water System Plan is done over a six year period and includes estimated costs of long interval capital refurbishments and asset replacement, along with pricing years. Costs include salvage values (if any) and disposal costs. Asset maintenance plans are not written for all water system assets. Plans are not updated regularly based on deviation from planned ownership costs, unexpected changes in asset condition, etc. There are maintenance management plans within each operation group, but staff has had problems organizing the information within the Vueworks system with both functionality and getting all the asset data into the system. The plan is for the maintenance management plans to be written down with maintenance task input into Vueworks. Criticality as part of the asset planning process is used to establish project priorities. There is a capital facilities project listing. Once in the project list, a group of people will look at reliability, regulatory and some informal risk priority. Any project that is more than $, will be capitalized. Project Prioritization is done on an annual basis. The City of Olympia has a rigid capital project prioritization process with a citizen review. Engineering and O&M staff meet bi weekly to track projects and status. City of Olympia Water System Plan Update A-18

54 Asset Program Communication Best Practice Gap Current Observation Stakeholder confidence Service demands Environmental compliance strategy Communications plan AM strategy awareness Continuous improvement indicators Staff education Levels of service are measured and determined that process and programs are on track to meet the expectations of all stakeholders. Growth and level of service needs are identified and on scheduled basis and communicated as part of the AM planning process. Regulatory requirements and pending requirements are continuously monitored and communicated as part of the AM planning process. Communications plan is established and used to communicate goals and objectives to all staff and stakeholders. Staff are aware of the AM program goals and have specific knowledge of their level of involvement and responsibilities. Indicators of success are established to measure effectiveness of the AM program and used to develop corrective actions on a proactive basis. Training program consists of an education program that is developed to meet skills needed and enhancing staff growth potential. Significant Levels of service are established and used to guide the Water System Plan. There are some measures used to determine if the strategy and associated processes and programs are on track to meet the expectations of all stakeholders. Growth and level of service needs are identified and on scheduled basis and communicated as part of the AM planning process. WaterGems has been used for several years. There are four different demand scenarios patterns for the system. The modeling process is very proactive and mature. Regulatory requirements and pending requirements are continuously monitored and communicated as part of the Water System planning process. All reports are generated in the Water Quality Database. There is a schedule for the monitoring. There is a Water Quality Monitoring Report. There is no communications plan for Asset Management. Plans are established and used to communicate goals and objectives based on specific programs or projects and sent out to all staff and stakeholders. Staff are generally aware of the AM program goals and have some knowledge of their role, but clear levels of involvement and responsibilities are not defined at all levels. The City of Olympia is currently looking at a system to tracking indicators of success are established to measure effectiveness of the City that could be used to track the AM program. This system could also be used to develop corrective actions on a proactive basis. The training program consists of an informal education programs to meet the skills needed and enhancing staff growth potential. Payroll codes are used to track amount of training. Field staff are doing about 9 hours of training per year. Most of the training is done through on the job training. There is no standard performance review process. It is left up to the supervisor. There is a ½ day new employee orientation, but no specific training program. Asset Development Best Practice Gap Current Observation Origination Scope for projects Alternatives Life cycle costs Delivery methods Operability and maintainability Design requirements Construction requirements The need for new assets or projects is anticipated well in advance and arises from master plans or specific asset plans (not ad hoc, annual polling in engineering and operations, etc.). The need for assets or projects is documented in a way that leaves alternatives open to consideration. Alternative assets or projects are identified, including re rating or reconfiguration of existing assets. Life cycle costs of alternatives are prepared according to defined formats and PV analyses contribute to selection. All legally available delivery methods are considered, such as in house, design and construct, design build (DB), designbuild own (DBO), design build ownoperate (DBOO), and selection made with due consideration of comparative life cycle costs. Operations and Maintenance (O&M) personnel are involved in design from an early point with the objective of minimizing ongoing costs of asset ownership. Drawings identify assets by the standard hierarchical coding scheme. Facility is delivered with asset listings in accord with the asset coding scheme. Acquisition costs and life cycle plan data at the asset level are delivered along with the asset listings. The need for new assets or projects is anticipated well in advance and arises from master plans or specific asset plans (not ad hoc, annual polling in engineering and operations, etc.). Anything over $65, has to go out for bid. When a capital project is funded there is a service agreement between the line of business program and the engineering service. A PM is assigned to the project and may have an engineering staff. There is a CFP coordinator that looks at the coordination of projects with other organizations and utilities. The development community, through private developer, are also providing assets and submitting record drawings. The City does not routinely survey or verify the measurements in the drawings. Inspectors will do a spot check. The need for assets or projects is documented in a way that leaves alternatives open to consideration. The Water System Plan defines the large projects. As individual plans are approved they incorporated into the annual city capital facilities plan (CFP). Projects are funded by various funding sources including, rates, grants, etc. Alternative assets or projects are identified, there is no formal process, but projects are look at on an as needed basis. There is no rating system for assets or projects. Life cycle costs of alternatives are prepared according to some loosely defined formats and PV analyses contribute to selection. Public Works is starting to look at the Lean Process. Design and construct is the main process delivery method. The does consider other legally available delivery methods are considered, such as in house, design and construct, design build (DB), design buildown (DBO), design build own operate (DBOO), and selection made with due consideration of comparative life cycle costs. Operations and Maintenance (O&M) personnel are involved in design from an early point with the objective of minimizing ongoing costs of asset ownership. The owner writes down the needs as part of a service agreement. O&M are involved throughout the project above and beyond the, 6 and 9 design processes. Drawings do not identify assets by the standard hierarchical coding scheme. There is no standard asset hierarchy. There are Electronic Engineering Design and Development Standards (EDDS). These are periodically updated based on operation and maintenance needs. Facilities are not delivered with asset listings in accord with the asset coding scheme. The City gets a copy of record drawings in CAD file electronic and signed hardcopy. Acquisition costs and life cycle plan data at the asset level are not prepared and not delivered along with the asset listings. Install date and record drawing number is also added to GIS. City of Olympia Water System Plan Update A-19

55 Asset reliability and assessment updates If a delivered facility includes new asset types, processes, or components outside the existing asset coding scheme, the scheme and condition assessment program are updated. Asset reliability is not tracked in Vueworks. WaterGEMS is used to look at criticality of assets at the system view. If a delivered facility includes new asset types, processes, or components outside the existing asset coding scheme, the scheme and condition assessment program are not updated. Operating manuals, procedures, and guarantees Design and construction requirements include delivery of operating and maintenance manuals, guarantee information, and asset plan data. Design and construction requirements include delivery of operating and maintenance manuals, guarantee information, and asset plan data. Most of the O&M manuals are delivered electronically. There is a room with paper O&M manuals, but right now they are not kept electronically. Only newer assets have electronic manuals. Asset tracking For all new assets, and in accord with the asset coding scheme, life cycle asset plan, and asset data are entered into the AM system. Assets removed from service are retired. Assets are not tracked in an Asset Plan and there is no asset coding scheme or life cycle asset plan. Asset data are entered into the Vueworks system as needed. Assets removed from service are retired. Asset Operation and Maintenance Best Practice Gap Current Observation PM definition PM scheduling Corrective maintenance Maintenance costs Failure codes defined Analysis is done to update asset plans PM versus CM Risk and backlog Operational considerations Predictive maintenance Preventive maintenance (PM) activities are fully defined at the appropriate asset level and in accord with the assigned management regime. Intervals and resource information (standard hours, parts lists, etc.) are included. PM is scheduled and performed in accord with the specified intervals. Corrective maintenance (CM) usually arises from condition assessment and is performed prior to failure. Management measures CM work orders arising from assessment versus failure to improve performance in this area. Work orders are prepared on an assetspecific basis. Costs of fulfilling work orders are accumulated along with underlying details (hours used by craft, actual materials, etc.). Failure codes are tied to failure modes at the asset class level. Asset failures are recorded with appropriate codes and details. Asset failures are analyzed and used to update PM procedures and intervals as well as R&R schedules for similar assets. The balance of preventive versus corrective maintenance is periodically assessed, and the analysis is used to manage and improve the maintenance program. Maintenance backlogs are prioritized based primarily on the criticality and condition of the underlying assets. Operational procedures and performance are assessed periodically to minimize maintenance expenses caused by operational factors. The potential for predictive maintenance is continually assessed and such measures are used where economical or indicated by risk factors. Significant Significant Significant Preventive maintenance (PM) activities are defined for some but not all water asset. There are problems right now with the way staff use Vueworks. Work orders are done after the fact. Olympia needs to fully define the appropriate asset level maintenance requirements of water system assets in accord with the assigned management regime. Intervals and resource information (standard hours, parts lists, etc.) should be included. Some maintenance work such as tank painting by contractors is not tracked in Vueworks. There are no PM s scheduled or performed in accordance with specified intervals. Most work is reactive and done after the work is complete. Corrective maintenance (CM) usually arises from condition assessment. Water Resources does not have prewritten CM job plans. CM work is usually performed after and not prior to a failure. CM are not defined as Management measures. Work orders are prepared on an asset specific basis. The costs of fulfilling work orders and underlying details (hours used by person, actual materials, etc.) are collected and recorded. Failure codes are used consistently in Water Resources. They are not tied to any type of failure modes at the asset class level. Activities are used, but not as the reason for failure. Some data will be in a text field. Asset failures are not recorded with appropriate codes and details. Asset failures are not analyzed on a regular basis. Most of the work is reactive and so there is not process to update PM procedures and intervals or making any alterations to the R&R schedules for similar assets. The balance of preventive versus corrective maintenance is not assessed. There is not proactive analysis to improve the maintenance program. Maintenance backlogs are prioritized based primarily on the criticality and condition of the underlying assets. There used to be a 1 9 ranking but that is not used any more Operational procedures and performance are assessed periodically to minimize maintenance expenses caused by operational factors. The hydrant crews manage a 14 month hydrant testing and flushing process. Additional data is being updated as part of hydrant testing and valve exercise program. There are 11 above ground steel Water tanks and 5 in ground concrete tanks. These are operated as part of a proactive program. In addition, there is an AMR/AMI project to install Itron Choice Connect that will also help with operational planning. The potential for predictive maintenance is rarely assessed. There are no proactive processes or measures to determine operation or maintenance needs. City of Olympia Water System Plan Update A-2

56 Asset Condition Monitoring Best Practice Gap Current Observation Condition monitoring methodology Condition rating and scoring Condition tracking Maintenance scheduling Corrective actions Appropriate procedures, intervals, and rating methodology for new assets are determined at or prior to delivery and allow for consistency in condition assessments. Rating scales, tied to potential failure modes, have been prepared by asset class. Methodologies assure replicable ratings (e.g., they support GASB 4 s modified approach ). Procedures exist for determining, recording, tracking, and updating condition assessments and intervals. Trends in assessed condition, along with cost and risk analyses, are used to update intervals for preventive maintenance. Trends in assessed condition, along with cost and risk analyses, are used to update long term cost estimates and near term schedules for corrective maintenance. Significant Significant Significant There are no written procedures for doing condition assessment. All tank condition assessment is contracted out. Appropriate procedures, intervals, and rating methodology for new assets are determined at or prior to delivery and allow for consistency in condition assessments. Rating scales are used for sewer pipes but not all assets. The condition rating is not tied to potential failure modes or organized for analysis by asset class. Some procedures exist for determining, recording, tracking, and updating condition assessments and intervals for sewer pipes and water valves. Additional methodologies need to be developed. Trends in assessed condition, along with cost and risk analyses, are not formally used to update intervals for preventive maintenance. Maintenance strategies are updated on an as needed basis. Trends in assessed condition, along with cost and risk analyses, are not used to update long term cost estimates and near term schedules for corrective maintenance. Asset Rehabilitation and Replacement Best Practice Gap Current Observation R&R planning R&R alternatives R&R analysis Life extensions R&R costs Audit of R&R practices Most R&R decision points are known in advance through the asset planning process. Surprises are minimal. Alternatives are identified and fully considered including refurbishment, replacement, and re rating or reconfiguration of existing assets. R&R alternatives are evaluated considering economics and risk factors. In the case of refurbishment, the life extension (if any) of the underlying asset is estimated. The capital asset plan for the subsequent life cycle is updated. R&R costs, including indirect costs, are recorded in the asset history. R&R planning and execution processes are reviewed periodically. Benefits from these procedures are measured, and programmatic improvements are proposed. Most R&R decision points are typically known 6 years in advance through the asset planning process. Surprise R&R needs are minimal. While making pre design and R&R decisions, alternatives are identified and fully considered including refurbishment, replacement, and re rating or reconfiguration of existing assets. R&R alternatives are evaluated considering economics and risk factors as part of a pre design process. When implementing refurbishments, the life extension (if any) of the underlying asset is estimated. This is a reasonably new process and still being developed. The capital asset plan for the subsequent life cycle is updated. R&R costs, including indirect costs are beginning to be determined, but they are not recorded in the asset history. R&R planning and execution processes are going to be reviewed for effectiveness. Benefits from R&R procedures are measured, and programmatic improvements are proposed. Asset Financing Best Practice Gap Current Observation Growth needs R&R needs Funding plan Funding policies Historical trending Systems to determine the system growth and necessary capacity are determined on a scheduled basis and used to determine the funding needs. Near and long term R&R needs are known or estimated through the asset planning process. Sufficient reserves exist to handle unexpected near term needs. A funding plan for infrastructure sustenance exists and is maintained. Alternative sources of funding, including reserve accumulations, are considered. The governing body has approved formal long term funding policies for infrastructure sustenance. Procedures to review the trend in funding plans and available funds are done to update the funding plan and policies. There are several different systems used to determine the system growth and capacity needs. The WaterGEMS model is the main tool used for determining future needs, but outside consultants also provide information. Data are used to determine the funding needs. A rate model is updated annually to forecast rates. 6 year R&R needs are known or estimated through the asset planning process. Sufficient reserves, 5% of CFP, exist to handle unexpected near term needs. The small diameter project is a good example of a program that proactively looks at replacement. A funding plan for addressing infrastructure sustenance needs exists and is maintained. Alternative sources of funding, including a small reserve accumulations, are considered. There is fixed asset register that originally followed NARUC. There is a rate model with FCS Group. There are operating funds, debt service and fund capital. Bonds are sold as a combined water works utility. The governing body has approved formal long term funding policies for infrastructure sustenance. The Advisory Committee will guide Public Works on the Water System Plan and any funding policy. Procedures to review the trend in funding plans and available funds are carried out periodically to update the funding plan and policies as needed. This is done through the annual rate model. City of Olympia Water System Plan Update A-21

57 Asset Financial Reporting Best Practice Gap Current Observation Consistency in reporting Change management Comprehensive reporting Budgeting with objectivity Cost forecasting The financial reporting asset database is identical to or synchronized with the engineering and operations asset listings. Asset additions, capital refurbishments, expansions, partial retirements, and full retirements are accurately reflected in the financial reporting database in a timely manner. The financial reporting database is updated to account for asset retirements, additions, and betterments. Key asset and AM data are reflected in the financial statement s Required Supplemental Information (RSI), if GASB 4 s modified approach is not used. Long term capital needs for infrastructure sustenance and funding policies to meet those needs are reported. Depreciable lives are updated if appropriate. Budgets are developed in accordance with system needs and predefined levels of services. Budgets are measured against the goals and objectives. Periodic analyses are undertaken of the financial results and used to determine future costs of assets and asset operation and maintenance costs. The financial reporting asset database is not identical or synchronized with the Vueworks system. Asset additions, capital refurbishments, expansions, partial retirements, and full retirements are recorded by the Financial Group in the financial reporting database HTE in a timely manner. The financial reporting database is updated to account for asset retirements, additions, and advancements. Depreciable lives of the assets are also updated if appropriate. Key asset and AM data are presented in the financial statement. Long term capital needs for infrastructure sustenance and funding policies to meet those needs are reported. Water Resource budgets are developed in accordance with system needs and predefined levels of services. Budgets are measured against Water System Plan goals and objectives. Financial results are periodically analyzed. Analysis is then used to determine future costs of assets and asset &M costs. Asset Management Systems Best Practice Gap Current Observation Information system plan Data collection tools Forecasting tools Standards and protocols System integration plan Linked to inventory/ stores Linked to budget/ performance reporting Linked to F/A system GIS functionality Supports GASB 4 depreciation method Supports GASB 4 modified approach Change management process The information system is planned and budgeted annually with a 5-year forward forecast of needs that were gathered from all divisions of the organization. Data collection tools are used to streamline the process of data input and improve accuracy of information in the databases. Forecasting of AM needs is done through the use of optimization tools (capacity planning, asset acquisition, maintenance analysis, R&R alternatives, etc.). Standards and protocols for asset information systems exist and are followed by all divisions of the organization and managed under a single party. Plan has been prepared to integrate the various asset information systems into a single point of data access and reporting. The AM system is linked to the inventory and stores system. The AM system is linked to the budgeting and the financial performance reporting system. The AM system is linked to the financial accounting system. GIS support field maps and is used to access asset information through a graphical interface. The GIS is available to all necessary users. The AM Information system meets GASB 4 depreciation requirements. The AM Information system meets GASB 4 modified approach requirements. An integrated process ensuring that software issues, change requests, and bugs are managed and controlled in a formal and consistent manner. The information system is planned and budgeted annually with a 6-year forward forecast of needs that were gathered from all divisions of the organization. There is no written IT Plan, but there is a list of projects and associated budget. Business process analysis is usually done on a project basis, but there is no consistent methodology. The Water System Plan should include a line item for Technology. Laptops are used as data collection tools for field staff to streamline the process of data input and improve accuracy of information in the databases. There are 96 sampling stations. Staff are required to take 7 system samples per month Monday Wednesday. All data is kept in Water Quality Database. Samples are sent to two different laboratories. All data is handled manually as part of the chain of custody form. There is a correlation between the source and sample. Phone calls are made to crews if a problem is identified. Staff would like to have an electronic form for the field. Need to get electronic data back from the labs. Standard operating procedures are being developed for Vueworks The WaterGEMS model is the only forecasting tool available to look at AM needs. There is a desire to have other optimization tools for maintenance analysis and R&R alternatives. Standards and protocols for asset information systems exist for some Divisions. Water Operations is in line for having standards developed. The GIS and Vueworks staff are responsible for developing the Vueworks standards. There is no plan to integrate the various asset information systems into a single point of data access and reporting. There is a forward planning goal of an enterprise solution. An upgrade to OneSolution in 214. The project will take 2 years. The Vueworks system is being used as the inventory system. The Vueworks inventory module is not up and running to meet Water Resources needs. There is a storekeeper but an honor system is the normal process. Cost of material is attached to the work order by the inventory specialist. There is no physical storeroom. POs are not required for purchases. Some staff can use a P Card to purchase. OlySupply account is also set up. The AM system is not linked to the budgeting and the financial performance reporting system. HTE Budgeting tools are primarily used by staff for tracking budgets The Vueworks system is linked to the HTE financial accounting system. GIS support field maps and is used to access asset information through a graphical interface. The GIS is available to all necessary users. 99% of all water assets are in GIS. ArcGIS 1.1 with a plan to move to 1.2. There are also field books. There is more training in place to help field staff to make better use of GIS. The Water Resources AM Information System meets GASB 4 depreciation requirements. The AM Information system does not meet the GASB 4 modified approach requirements and there are no plans to meet the modified approach. An integrated process is in place that ensures that software issues, change requests, and bugs are managed and controlled in a formal and consistent manner. City of Olympia Water System Plan Update A-22