Budget Message / Highlights - Metropolitan Water Reclamation ...

METROPOLITAN WATER RECLAMATION DISTRICT OF GREATER CHICAGO
2009 BUDGET
ASSET MANAGEMENT
Government Accounting Standards Board (GASB), Rule 34 imposes financial rules with which municipalities and other
government bodies, including the Metropolitan Water Reclamation District of Greater Chicago must comply. There are two
options available under GASB 34 for reporting infrastructure assets. One option allows for depreciation of assets, the other,
“Modified Approach” requires asset condition assessments to be performed and reported on a regular basis. The District has
chosen to use the “Modified Approach”, in an effort to enhance our financial reporting position by demonstrating the
exceptional condition of our assets. Accountability under GASB 34 is both financial and operational. The District has
completed its five year plan, to be repeated every three years, to conduct GASB 34 assessments of its facilities.
The District is divided into seven distinct networks as listed in the schedule. Each network is further divided into Systems and
subsystems. The systems are, System 1000 – Collection, System 2000 – Treatment, System 3000 – Solids Processing, System
4000 – Flood and Pollution Control, and System 5000 – Solids Utilization. The reports contain network trees identifying the
sub-systems, components, and number of MMS Assets (AMU’s); a summary of current and future contracts/projects impacting
each individual AMU; a list of assets within each AMU; documentation of the preventive maintenance costs and the
maintenance cost trends over last three years. Each AMU is evaluated in terms of its maintenance history and physical
condition based on an established evaluation criteria. The evaluation team consists of one each licensed Mechanical, Electrical,
and Civil Engineer. The team is from a location other than the Plant being evaluated.
Following is a list of Plants, their respective evaluations, and year evaluated:
Year
Kirie
WRP
Hanover
Park WRP
2002 3 3
2003
North Side
WRP
John Egan
WRP
2004 3 2
Waterways
Stickney
WRP
2005 2 2 3
Calumet
WRP
2006 2 3 3
2007 3 2
2008 X X X
2009 X X X
Lemont
WRP
In 2009, we will conclude the second review of all networks. To date, those networks which have been audited for the second
time have either maintained their rating or improved their rating. Projects that address deficiencies may take several years to
complete, and thus not all facilities may see improvements during a subsequent rating cycle. Our facilities are operating
reliably and with the Master Plan project and GASB 34 audit resultant projects, they will continue to serve the District into the
future.
Rating Scale:
1 = Excellent Relatively new asset or recently rehabilitated or otherwise restored to a like new condition.
2 = Very Good Performance successful, operation reliable, no significant maintenance required beyond routine PM
or minor repair in foreseeable future.
3 = Good Performance successful, operation reliable, significant maintenance required in foreseeable future.
4 = Acceptable Performance successful, operation reliable, significant rehabilitation / replacement planned in near
future.
5 = Fair Performance marginal, operation not reliable without immediate repair / replacement.
6 = Poor Inoperable or operation significantly impaired.
X = Scheduled Review scheduled and/or results not currently available.
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