The citywide asset management program was established in 2014 to establish a data-based, transparent and repeatable decision-making process to reduce business risk exposures and make good business decisions concerning the City’s infrastructure and resources. The program is designed to manage assets through their life by using approaches that are proactive and sustainable for the purpose of maximizing the value of its investment to meet the expected service levels at the lowest life-cycle cost and at an acceptable level of risk. This program ensures that the City develop long-term strategies through effective planning, design, continuous optimization of operations and maintenance, and through incorporation of appropriate rehabilitation, replacement, repair and asset disposal.

Staff completed the water main asset management plan in 2017 and have utilized the financial model over the past few fiscal years for water line CIP planning. In 2018, staff completed the lift stations asset management plan, and started on the asset management plans for wastewater treatment plants and the groundwater storage tanks. Staff is currently working with consultants to finalize the risk methodologies for these two projects.

The City of Sugar Land has 72 vertical facility structures that house all of the various components to make our City function. Over time, each building or structure will require some type of renovation, maintenance, repair or replacement. Maintaining all of the City’s structures is an ongoing process. As such, it is important for the City to understand how to maximize funding for operations and maintenance.

This Facility Condition Assessment project is part of the City’s commitment to developing and implementing the citywide asset management program. This project consists of developing a Risk and Financial Model, that will assist the City in forecasting the facilities/structures/components in need of replacement/rehabilitation. The Consultant will perform a condition and performance assessment on 8 facility buildings and 6 utility plant buildings to collect the necessary data required to populate and run the risk and financial model. These initial projects will also be used as training for City staff to learn how to execute the building assessments and risk analysis, enabling staff to self-perform the tasks on the remainder of the City’s facilities, structures and various components.

This model is a risk-based, life-cycle cost model that will apply service levels, consequence of failure, condition and replacement cost criteria in conjunction with budget alternatives to plan for replacement/rehabilitation of the City’s facilities for short and long-term funding considerations.

Lockwood, Andrews & Newnam, Inc. (LAN) was selected in accordance with City policy PU-109, Procurement of Professional Services and Consulting. The fee of $350,000 was negotiated through a level of effort with LAN and Engineering staff. The scope of work for this project includes the following services:

• Establishing a Risk Methodology
• Performing condition and performance assessments
• Various workshops with staff
• Delivering the risk and financial model, results and staff training 

Funding for the project is available within the FY19 General Fund (Operation and Maintenance) and the Utility Fund (Water). The Notice to Proceed for the NCIP006 project is anticipated to be issued in May 2019 with the completion within 8 months from Notice to Proceed. The anticipated completion date for this asset management plan will be in Spring/Summer of 2020. Staff will work alongside with the consultant and shadow all assessments to ensure future assessments are repeatable in house as well as continue to evaluate and make improvements on an as needed basis.

The Engineering and the Environmental and Neighborhood Services Departments recommend that the City Council authorize a professional services contract with Lockwood, Andrews & Newnam, Inc., for NCIP006, Facilities Condition Assessment, in the amount of $350,000.