# Presentation: 424354

## NEORSD

**NEORSD**

- Asset Management Assessment

## Agenda

- NEORSD history / responsibilities
- Project drivers
- Overview of this project
- Strategic insights
- Lessons learned

## NEORSD History

- Formed by Court Order in 1972
- Independent Political Subdivision of
-    State of Ohio
- Governed by 7 Member Board of Trustees
- Serves City of Cleveland and 59 Suburban Communities
- Service Area - 380 Sq. Miles
- Service Area Population – 1,000,000

## NEORSDKey Responsibilities

- WWTP Operation
-    - Easterly, Southerly, Westerly
- Combined and Separate Interceptors
-    - Construction, Operation and Maintenance
- Combined Sewer Overflow (CSO) Control

## Project Drivers

- District business sustainability drives this project
- Cleveland No.1 in big city poverty (31% of residents below poverty level)
- 11% population decrease over 20-30 yrs
- $1.6 Billion CSO Control Program
- $1.6 Billion WWTP/Sewer Rehabilitation Program

## Project Drivers

- Projected capital investment of $3.2 billion over the next 30 years, which almost doubles the prior 30 years

**Capital Investments**

**Notes:**
Business sustainability drives this project
Over the last thirty years, the District invested about $1.8 billion
In the next 30 years, we will almost double that

## Project Drivers

- Future needs are not projected to benefit from the Federal Grants Program as past needs did
- Projected doubling of sewer rates in 10-years

**Federal Grants**

**Notes:**
During the past 30 years, the District received about $644 million in Federal grants, unfortunately
Future needs are not projected to benefit from the Federal Grants Program as past needs did.

## Project Drivers

- Significant personnel turnover and departmental reorganizations
- Maintaining our present efficiency will not be adequate for the future

**Do you know where is the knowledge going?**

**Notes:**
In addition, . . . There are/will be significant personnel . . . .
Maintaining our present efficiency will not be enough

## Overview of Project

- Define asset management in three areas:
- Capital assets
- People resources
- Business culture
- Evaluate District current practices in each of these areas
- Perform a gap analysis
- Perform a pilot study of asset management tools
- Create an implementation plan for an Asset Management Program
- Obtain buy in from governing body

## Overview of Project

- Implementation Plan will include:
- Program structure
- Asset management team organization
- Multi-year resource estimates
- Phased schedule and budget
- Communication strategy
- Stakeholder management plan
- Tactical functionality
- Performance measures

## Our 2004-2008 Strategic Plan had 5 goals:
Maintain the District’s excellent service record and reputation
Improve our dynamic business culture
Improve use of our people resources
Determine our future business
Determine the most effective and equitable means of funding the future

- Maintain the District’s excellent service record and reputation
- Improve our dynamic business culture
- Improve use of our people resources
- Determine our future business
- Determine the most effective and equitable means of funding the future

**Strategic Insights**

## Lessons Learned. . . . So far

- Asset management is viewed as a cure-all system by some in the organization.  In the beginning, be straight forward and explain what it WILL and WON’T do.
- Before embarking on an asset management project, make sure people understand that asset management provides the practices, but the PEOPLE have to do them!

## Thank you.

- Questions?

**Thank you.**