asset management a story of integration wally wells p. eng
TRANSCRIPT
Asset Management A STORY of INTEGRATION
Wally Wells P. Eng.
What do we do?
•Provide Services! That’s it!!
•Level of Service defines everything
•Physical Infrastructure is only there to provide a service
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What are Local Government assets?
•Buildings/ sheds / garages•Fleet / vehicles/ mobile equipment•Water system and plant•Sewer system and lagoon•Drains/intakes/outfalls•Parks/trails/ bikeways•Roads/ parking lots and structures•Airports/harbours•Parks and street furniture•Cemeteries•Street lighting•Emergency resources
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What are going to about?•Heard – About program
•Will hear – case studies - applications
•Fill in the Blanks
•Based on many experiences
•Pot Pourri of issues !!!
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What is the Issue?• Sustainable Infrastructure provides
good living / working space and competitive economic climate
• So, we have managed assets for decades………….
• Here’s the Problem
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What is the Issue?• Municipal Budgets reflect current
operations • 100+ years of doing it wrong especially
since about 1950
• Not long term 5 year…really 2 +3 years • Never considered asset renewal /
replacement
• We have huge need and backlog with no plan
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Where to Start?• Don’t be overwhelmed – It will take time • Scalable – NOT one size fits all
• Start small – pick an area or an asset
• Get training – Understand the process • Know what you are doing – collectively * Asset SMART
• Have a good conversation between technical and financial
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Where to Start?• Develop your corporate team – have a
champion
• Use a committee or Working Group
• Use Resources • You have more data than you think
• Integrate existing plans • Have your plan of attack and timeline
• Communicate at all levels.
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Data• PSAB 3150 provided a base
• Included some approach to condition assessment
• Keep Inventory up to date * policies and procedures * timeline
• Condition assessment – Why do I need it?
• Adjust mindset – the 30% solution.
• Short term projects
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Financial• PSAB 3150 provided a base
• Understand that it is an accounting standard
• May need to defer to technical requirements
(expected life)
• Replacement value
• Adding / deleting to inventory
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Operations and Maintenance
•Depreciation and operations / maintenance * connection
•Budget process in municipal government does not differentiate
•Add criticality and risk
•Treat analysis as a guide – not absolute
•Adding / deleting to inventory
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Integrated Long Term Capital PlansObjective:Identify a longer term (50 – 100 years) view of linear asset renewal with costs by funding source to help evaluate our long term annualized funding requirements.
10 Sept 2009
Roads
Cost
Profile
Framework for Sustainable Service Delivery
Asset Management
Asset Management is an integrated process, bringing together
skills, expertise, and activities of People; with Information
about a community’s physical Assets; and Finances; so that informed
decisions can be made, supporting Sustainable Service Delivery.
It REALLY is a change in business process!
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(c) Asset Management BC, 2015(c) Asset Management BC, 2015 www.assetmanagementbc.cawww.assetmanagementbc.ca
The Calgary Story “In particular, an accurate inventory and
value of assets is critical to properly respond to a disaster situation and is core to the city’s asset management system.”
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The Gamètì Story• Keeping records
• Water plant
• Administration building
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The District of North Vancouver Story
• Make it our day job
• How to save time and money
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The High River Story• A good inventory really
helps
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Kitimat• $2.0++ billion investment – large
construction camp
• Consuming assets with no increase in maintenance money
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SINGULAR OBJECTIVE
TO CREATE AND FACILITATE OPPORTUNITIES TO SHARE KNOWLEDGE, TOOLS AND
INFORMATION RESPECTING “INTEGRATED” ASSET MANAGEMENT.
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By using the tools and resources that Asset Management BC has developed: - AssetSMART - Framework - AM Policy - Workshops - NAMS training - Newsletter 12th Edition - Website(resources) - Case studies
ASSET MANAGEMENT BC
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Growing Network
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Framework for Sustainable Service Delivery
People
Information
Assets
Finances
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Framework for Sustainable Service Delivery
Assess
Plan
Implement
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Resources• Asset Management BC
• Asset Management policies
• Standards (PAS 55000)
• References IPWEA
• Case studies (12)
• Financial – LTFP
• Asset Management Plan
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(c) Asset Management BC, 2015(c) Asset Management BC, 2015 www.assetmanagementbc.cawww.assetmanagementbc.ca
AssetSMARTAssetSMART to assess their capacity to manage theirassets.
•Evaluate their asset management capacity in a wide range of areas
•Identify particular areas of strength and areas for improvement
•Establish priorities
•Build awareness of the many dimensions of asset management
•Generate productive discussion with organization
•Measure progress over time
•Set short-, mid-, and long-term objectives in specific areas
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An Asset Management Governance Framework for Canada
OOObbbjjjeeeccctttiiivvveeesss ooofff AAAsssssseeettt MMMaaannnaaagggeeemmmeeennnttt Sustainability of communities – building environmental, financial and social resilience and adaptability to face a changing world
KKKeeeyyy PPPrrriiinnnccciiipppllleeesss fffooorrr MMMaaannnaaagggiiinnnggg IIInnnfffrrraaassstttrrruuuccctttuuurrreee Infrastructure needs to be managed as assets with value that needs to be
protected
Assets need to be defined within the context of community goals for level of service
Assets need to be managed on the basis of full lifecycle assessments
Assets need to be managed as inter-connected systems considering the relationship between various categories of assets
Asset management activities themselves need to be managed as integrated processes to optimize investment decisions
Are you ready (AssetSmart)Inventory (PSAB 3150)Condition assessmentAsset Class assessments
Level of ServiceRisk / Criticality ProfileIntegrated Strategy
From PSAB 3150
Asset Identity
Asset Valuation
Asset Depreciation
Asset performance.
Does it meet current user requirements?
Are there current limitations? Safety? Capacity? Regulatory?
Environmental ?
Do you have a measurement for performance?
Can measurements be used for comparative “ benchmarking“ ?
Asset condition
Was the asset rehabilitated/replaced?
What is the asset’s life expectancy under ideal conditions ?
What is the current projected life of the asset ?
What is the present condition of the asset?
What assets are decommissioned or deleted?
Water System - Age Profile
Water System Challenges
• A moderate percentage of water infrastructure is reaching the end of its useful service life.
• Some material types are not performing as expected and are experiencing premature failure.
• The cost of repairing and replacing the water system has increased dramatically over the past several years (>inflation).
Storm Drain System - Age Profile
Sewer System - Age Profile
Infrastructure Replacement Cost
Infrastructure Type Current Replacement Cost
Civic Facilities $ 209,000,000
Water System $ 262,000,000
Storm Drain System $ 362,000,000
Sanitary Sewer System $ 312,000,000
Roads (inclusive) $ 465,000,000
Bridges $ 102,000,000
Street Lighting $ 13,000,000
Fleet and Equipment $ 16,000,000
All $1,742,000,000
Current Funding Levels and Deficits
Infrastructure Type2010 Actual
Funding(Millions $)
2010Recommended
Funding(Millions $)
2010FundingDeficit
(Millions $)
Civic Facilities 1.7 4.3 (1) 2.6
Water System 1.6 5.3 (2,3) 3.7
Storm Drain System 2.1 3.7(2,3) 1.6
Sanitary Sewer System 4.9 6.2(2,3) 1.3
Roads (paving only) 0.5 2.0 (4) 1.5
Total 10.8 21.5 10.7
(1) Amount required for systemic replacement and the mitigation of deferred maintenance.(2) Recommended funding level to have no deferred maintenance within 20 years(3) To be decreased to one percent of replacement value after 20 years(4) Recommended funding level to ensure maintenance of current system condition
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Nanaimo Numbers - Population about 88,5001. Water $ 719 Million
33%2. Sewer $ 402
18%3. Transportation $ 386
18%4. Drainage $ 405
18%5. Buildings $ 245
11%6. Parks and Amenities $ 16
1%7. Fleet $ 19
1%8. IT $ 8
0%9. Total $ 2,200 100%
City underspending for full replacement over $10.00m /YR Simple math for 70 year average life says spent $30.0m /year.
Linear Infrastructure Gap - SummaryProposed Dev Services Infrastructure reinvestment budgets based on RIVA simulation of the next 100 years of linear infrastructure renewal & replacement
InfrastructureArea
NLIA2008
RIVA2009
Linear
5-YearAverageLinear
Linear Infrastructure
Gap
Gen - Roads 4.6 4.83* 2.924 1.906
Gen - OtherIncl. Storm 4.76 1.06 0.374 0.686
Water 3.49 3.79 0.856 2.934
Sanitary 1.56 2.17 0.317 1.853
Total 14.41 11.85 4.471 7.379All amounts are in Millions
* Does not include the cost of Road Reconstruction for Utilities @ $9.14M
Long Term Financial Plan• Long-Term Financial Planning is a
process that combines strategies, policies, forecasts and assumptions to model projections of future financial results.
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(c) Asset Management BC, 2015(c) Asset Management BC, 2015 www.assetmanagementbc.cawww.assetmanagementbc.ca
Local Government Challenges
• Growing service demands (More with Less)
• Limited revenue sources• Unfunded Infrastructure
Replacement • Little control over cost structure
(contracts) • Downloading and regional pressures• Need to build trust and transparency • Incorporating Climate Change
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What’s Current
• Climate Change• Culture Change
• Measures
• Framework
Where we are going• Focus on communicating the
message
• Culture Change
• Performance measures
• Climate change
• Implementation – continuous process
(c) Asset Management BC, 2015(c) Asset Management BC, 2015 www.assetmanagementbc.cawww.assetmanagementbc.ca
(c) Asset Management BC, 2015(c) Asset Management BC, 2015 www.assetmanagementbc.cawww.assetmanagementbc.ca
Canadian Network for Asset Managers
• Vancouver May 11-14• Focus – integration• Governments and utilities
• Registration now open• www.cnam.ca
(c) Asset Management BC, 2015(c) Asset Management BC, 2015 www.assetmanagementbc.cawww.assetmanagementbc.ca