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Asset Management. Presented by: Heather Himmelberger, P.E. Director, NM EFC New Mexico Infrastructure Finance Conference. What is an Asset?. Something you own that has value There can be assets that gain value over time…. or lose value over time. What is Asset Management?.

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Asset management

Asset Management

Presented by: Heather Himmelberger, P.E.

Director, NM EFC

New Mexico Infrastructure Finance Conference


What is an asset
What is an Asset?

  • Something you own that has value

  • There can be assets that gain value over time….

  • or lose value over time


What is asset management
What is Asset Management?

Maintaining a desired level of service (what you want your assets to provide) at the lowest life cycle cost (best appropriate cost - not no cost)


However
However……

The main purpose of a Community or Utility is

customer service

not the management of the assets

We manage assets in order to provide the service!


Asset Management is a toolit can be used to help assure that utility services are provided in a sustainable, cost-effective way


Five core components of asset management

Current State of the Assets

Required Level of Service

Minimum Life Cycle Cost

Five Core Components of Asset Management

Asset Management

Long-term Funding Strategy

Critical Assets


Core component 1 current state of the assets
Core Component 1: Current State of the Assets

Where is it?

What is the useful

life?

What do I own?

What condition is it in?

What is its value?


Core component 2 what is the required level of service
Core Component 2: What is the required Level of Service?

Flushing

Pressure

Water Quality

Repairs


Considerations for level of service
Considerations for Level of Service

8 to 12 Good Items

Items that are Measurable

Track Progress: Measure how well you’re doing

Customer Involvement/Customer Communication


Core component 3 which assets are critical to sustained performance
Core Component 3: Which Assets Are Critical to Sustained Performance?

What is the likelihood of failure?

What is the cost of the repair?

How do my assets fail?

What are the consequences of failure?


Critical assets
Critical Assets

Probability of Failure

Which category of assets do I care the most about, the least?

Consequence of Failure


Core component 4 best minimum life cycle cost for cip and o m

Initial Capital Cost

Maintenance Cost

Replacement Capital Cost

Repair Cost

Operation Cost

Disposal Cost

Rehabilitation Cost

Core Component 4: Best Minimum Life Cycle Cost for CIP and O&M

Other $$: Legal, environmental, social, impact on other operations

Balancing O&M with Capital Costs


Core component 5 what is the best long term funding strategy
Core Component 5: What is the Best Long-term Funding Strategy

What funding do we need to properly operate the Utility?

O&M

Personnel

Fleet

Equipment

IT

CIP

Where will the funding come from?

Grants

Impact Fees

Customer Rates

Special Funds

Customer Fees

Bonds

Loans


Components are interrelated process can start anywhere

Level of Service

Critical Assets

Current State of the Assets

Long Term Funding Strategy

Minimum Life Cycle Cost

Components are Interrelated; Process Can Start Anywhere



What conditions make am so important
What Conditions Make AM so Important improvement

  • Inadequate Capital Funding

  • Aging Infrastructure

  • Inadequate Cost Recovery Over Time

    With these Conditions, Have to Be Smart About When to Do O&M, Repairs, Rehabilitation, and Replacement


A few key benefits

Financial

Technical

  • Inventory/Maps

  • Better Understanding of O&M Costs and What O&M to do

Managerial

  • Customer Communication

  • /Customer Service

  • Better Internal Communication

  • Greater Efficiencies in All Areas of Operation

A Few Key Benefits


Am is coming to new mexico
AM Is Coming To New Mexico improvement

  • CDBG Incentives: 10 points for Rates Setting Using AM

  • Funding Requirements and Incentives


Am is the future if it hasn t come to you yet it will
AM is the Future…. improvementIf it hasn’t come to you yet, it will!


Open discussion q a

Open Discussion/Q&A improvement


Contact info
Contact Info improvement

Heather Himmelberger

Director, NM EFC

2445 Alamo, SE

Albuquerque, NM 87106

(505)924-7028

[email protected]


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