Conversation on Asset Management Tools,

Getting Started and

Pitfalls to Avoid

Art Astarita-RCAP SolutionsWayne Cannon-OHIO RCAPTom Fishbaugh-OHIO RCAP

Tools for Asset Management

Balance Sheet

Assets =Liabilities +

Equity

Fiduciary duties

“a person to whom property or power is entrusted for the

benefit of another”

The primary responsibility falls on operators, the board of directors and local regulatory officials.

A Long-term Prospective!

Focus is on Life Cycle Cost

and Sustained

Performance

Manage Performance Levels

Initial Asset “Design” Capacity

Minimal Asset Performance Level

Time

Perf

orm

an

ce Management Zone

Managed Deterioration“Inherent” Deterioration

Management Zone

User Rates Track Asset Decline

Initial “Design” Capacity

Minimal Performance Level

Time

Perf

orm

an

ce Management Zone

Managed Deterioration

GenerationX

GenerationY

GenerationZ

RATES

“P to F” Interval Monitoring

P1- Vibration

Time

Perf

orm

an

ce

Management Zone

P2-Oil

P3-Audible Noise

P4-Tactical Heat

F-Failure

X

X

X

X

X

X

P-Performance

When do O&M costs exceed Replacement Costs?

The majority of Life Cycle Cost are established during project planning!

Level of Service for a Pump Station

Typical General Pitfalls

Other Pitfalls to Getting Started Unclear Division of responsibilities

Unattainable Scheduling of Goals Mis-Communications between the

Team– Treasurer, Operator, Trustees

Unfunded maintenance programs Infrequent focused discussions

Inventory & Asset Attributes

Financials

Consensus

CIP

Treasurer

Trustees

User Approval

Operator

Asset Mgmt

EmergencyResponse

Plans

ComprehensivePlanning

User Rates

WARN

Asset Invent

ory

Asset Use

GASB34

SanitarySurvey

artartart

VulnerabilityAssessment

FACILITY

PARENT ASSET

ASSET

CHILD ASSET

Pump Station Diagram

Too General.Must Itemize.

Subjective.Should Quantify

Excel is limits details and

sorting

Too much information in one column

CUPSS Internet Link to Boise State Environmental Finance Center

User Rates

Current & FutureRevenues

Current & FutureExpenses Debt & Debt Limit

Capital Improvement Plan

Asset Management

Current User Categories Future User Categories

Asset Managementand

Capital Improvement Plans