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Home My WebLink About04. Proposed Board Policy BP 015 re: Asset ManagementCentral Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 20, 2014 Subject: CONSIDER ADOPTING BOARD POLICY (BP) 015 REGARDING ASSET MANAGEMENT Submitted By: Initiating Dept. /Div.: Dana Lawson Engineering/ Capital Projects Senior Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION: E. Lopez — Provisional Capital Projects Division Mgr. J.M. Petit — Director of Engineering Kent Alm Roger S. Bailey Counsel for the District General Manager ISSUE: The District established a goal to develop an asset management program and adopting this policy will formalize the District's commitment to that effort. RECOMMENDATION: Review the draft Asset Management Policy and make changes if desired. Adopt Board Policy (BP) 015 (ATTACHMENT 1) - Asset Management. FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS: The Board may choose not to adopt the Asset Management Policy or to make changes to the draft policy. BACKGROUND: On July 3, the Board of Directors adopted the Fiscal Years 2014 -16 Strategic Plan and Goals which stated in Goal 6, Strategy 1, to establish an asset management program. To support that effort, Carollo Engineers was contracted to draft an asset management policy, conduct a gap analysis, and develop an implementation plan. Carollo Engineers held a policy workshop with District managers on July 11. A draft policy was routed for review by managers in late August and comments were incorporated. The purpose of this Board Policy is to recognize that the District has invested significant resources in its physical assets and aims to optimize the management of these assets to deliver high quality and reliable services in a cost - effective manner. COMMITTEE RECOMMENDATION: The Engineering & Operations Committee reviewed the draft policy on October 27, 2014 and recommended approval. [APPROVAL WILL BE REQUESTED AT E &O MEETING] C:\ Users \cgee\AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \SZPPEJUP \PP -Adopt BP 015 AM Policy 10 -3 -14 revised2.docxDeeument2 Page 1 of 2 POSITION PAPER Board Meeting Date: November 20, 2014 suaiect: CONSIDER ADOPTING BOARD POLICY (BP) 015 RE ASSET MANAGEMENT RECOMMENDED BOARD ACTION: Review the draft Asset Management Policy and make changes, if desired. Adopt Board Policy (BP) 015 - Asset Management effective November 20, 2014. Attached Supporting Document: 1. Draft BP 015 C:\ Users \caee\Al)pData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \SZPPEJUP \PP -Adopt BP 015 AM Policy 10 -3 -14 revised2.docx1)aeument2 Page 2 of 2 Number: BP 015 Ura", Authority: Board of Directors Effective: JNovember 620, 20.14 Revised: Reviewed: Initiating Dept. /Div.: Engineering/ Capital Projects BOARD POLICY ASSET MANAGEMENT PURPOSE G _ SDI www.centralsan.org The purpose of this Board Policy is to recognize that the District • has invested significant resources in its physisal assets, and • aims to optimize the management of these assets to deliver high quality and reliable services in a vest -ef est;vesustainable manner for customers with an acceptable level of risk. DEFINITION An asset in this Policy refers to both physical and software assets and shall be defined as having a replacement value greater than $5,000 and a useful life of at least two years or being_ critical to operations, regulatory, and /or safety requirements. POLICY Asset management is a broad strategic framework that encompasses many disciplines and involves the entire District. In support of its Mission, Vision, and Strategic Plan, the District sets forth the following directives related to asset management: Data and Knowledge Attachment 1 Formatted: font color: Auto The District shall maintain a comprehensive asset register to facilitate management over the assets' lifecvcles. The District shall continually identify, collect, and provide overall quality assurance/;-quality control (QA/QG) screening of relevant data, and it shall apply _ _ - Formatted: strikethrough sufficient analyses to turn that data into knowledge that supports sound, evidence -based decisions regarding phys+sal assets. The District shall maintain succession plans to strengthen aR sustain knowledge transfer. Information Systems The District shall make capital and op; going investments sufficient to own, operate, and - _ - Formatted: Highlight maintain a reliable and state -of- the -art security - protected information management system that supports timely, evidence -based decision making at all levels of the Number: BP 015 ASSET MANAGEMENT Page 2 of 3 organization. The District's information systems shall be deployed to promote access and use by District staff in fulfillment of their duties. Contracting The District shall invest in contract personnel effe#s-sufficient to support its their in#ernat asset management practices. In addition, all professional and equipment/ - construction contracts related to facility assets shall include provisions for on -going financial, and operations and maintenance tracking in the transfer of new or renovated assets. Processes and Practices The District shall develop processes, procedures and practices for staff in support of this Policy using industry accepted guidelines and practices to provide consistency across the organization. The District shall institute these processes, procedures and practices to prioritize expenditures with the purpose of optimizing the quality, reliability, and affordability of services provided to its customers. The District shall plan and provide for sustainable long- -term funding to appropriately utilize, maintain replace renew, or decommission assets to deliver high quality and reliable services in a sustainable manner for customers with an acceptable level of risk The analysis of risk and priorities shall consider the life -cycle social, environmental and financial benefits and costs of assets and services as well as and GeRGO&F the broader impact of individual asset decisions. People The District shall invest in staff and implement adequate education, training, and mentoring programs to ensure that asset management practices are widely communicated, understood, and implemented throughout the organization. A steering committee comprised of representatives from various workgroups in the organization shall convene quarterly, or as needed, to lead the asset management program. Organization Number: BP 015 ASSET MANAGEMENT Page 3 of 3 The District shall establish organizational responsibility to lead and manage a comprehensive asset management program across the collection system, treatment plant, recycled water, and general improvement programs. The program shall follow specific guidance laid -set forth in the Asset Management Implementation Plan +t-is m d that the r- 'll hat 't ' Sh ld the t be defiRed- n44e nro�;a ec� cirac ci i",rreaaer aiw is v "� what v waic u ro cc "Definitien" seetime? rregarding objectives, work plan, coordination mechanisms, and resource requirements. The Board shall be responsible for establishing levels of service adopting and updatinq policies and budgets, and exercising stewardship of assets. Staff shall be responsible for assisting the Board with the above a44dby implementing the policy, developing procedures and practices, and operating, maintaining and replacing the assets in accordance with the policy. [Original Retained by the Secretary of the District] Formatted: Not Highlight Formatted: Not Highlight