City of Vaughan | Corporate Asset Management Strategy Jack Graziosi: Director of Engineering Services, City of Vaughan Aman Singh: Lead Business Consulting, GHD Canada CNAM 2014 Conference Toronto, Ontario May 20-23, 2014

Agenda Background Business Drivers for AM AM Strategy Implementation Methodology Results Next Steps

Agenda Background Business Drivers for AM AM Strategy Implementation Methodology Results Next Steps

Background | The City of Vaughan Part of York Region Population ≈ 310,000 17th largest municipality in Canada Significant growth in last 25 years 99 spoken languages

Background | Organizational Structure

Background |The Assets Engineering and Public Works Roads Watermains Sewers Bridges Streetlights Storm Water Management Ponds Community Services Municipal Buildings Community Centres Libraries Fire Halls Parks Trees Playground Equipment Benches Fleet Vehicles Equipment Strategic and Corporate Services Information Technology Computers Servers

Background | AM Visioning & PAS-55:2008 Maturity Score Confidence Rating Innocent The organization is starting to learn about the importance of Asset Management 1 Aware The organization is aware of the importance of Asset Management and is starting to apply this knowledge 2 Establishing The organization is developing its Asset Management activities and establishing them as Business As Usual 3 Competence The organizations Asset Management activities are developed, embedded and are becoming effective 4 Enterprising The organization’s Asset Management activities are fully effective and are being integrated throughout the business 5 Excelling The organizations Asset Management activities are fully integrated and are being continuously improved to deliver optimal whole life value Low Indicates the organization is doing all that is required by the previous maturity level and has a plan in place to start implementing/ addressing the items list at this maturity level Medium Indicates the organization has implemented an action plan to address the items at this maturity level, however there is evidence of minor inconsistencies or non-compliances. High Indicates the organization is doing all that is required by this maturity level, but has yet to start addressing items listed in the next maturity level. There is evidence to support all activities to this level at a high standard.

Project Management Team Background | Program Governance Structure Senior Management Team Overall guidance on the AM Program Continuity and support for next phases of the AM Program AM Steering Team Project Steering Team Project Management Team Department Leads Overall direction of the AM Program Communications to wider organization City Project Manager Delivery and execution of AM Program

Agenda Background AM Business Drivers AM Strategy Implementation Methodology Results Next Steps

AM Business Drivers | What are they? The City … … currently manages its assets; … views this as an opportunity to improve AM practices. The City’s approach to AM will be … … integrated, i.e. include input from all Commissions and Departments; … structured and consistent, i.e. enable the City to make well- informed decisions and balanced trade-offs to benefit the City as a whole.

AM Business Drivers | The City’s Vision AM Vision Formal, transparent and structured approach to Asset Management across the Organization Maintain reliability, performance and levels of service Reduce overall cost of asset ownership, and … Integrate information across all commissions Provide confidence that the City is making the right decisions for the right reasons for the right costs at the right time

Improve asset reliability AM Business Drivers | Balancing Act Risk Cost of Service Value for Money Customer Service Level of Service Customer Needs Improve asset reliability 6

Agenda Background AM Business Drivers AM Strategy Implementation Methodology Results Next Steps

AM Strategy | The Process 2014 2013 AM Program Charter + Vision + Policy PAS 55 Gap Analysis Levels of Service & Performance Management Framework AM Roadmap Strategies & Initiatives Asset Management Plans IT Systems Strategy (CMMS & DSS) AM Governance Model Strategy 2014

AM Strategy | The AM Framework

AM Strategy | The AM Framework This is the T&ES Asset Management Framework: Plan, Do, Measure, Support Pilots will specifically target 5 planning processes (LOS, Failure Mode, etc.)

AM Strategy | AM Framework & Gap Analysis Components of Gap Analysis © Copyright 2011 GHD.

AM Strategy | AM Framework & Gap Analysis Components of Gap Analysis © Copyright 2011 GHD.

AM Strategy | AM Framework & Gap Analysis Components of Gap Analysis © Copyright 2011 GHD.

AM Strategy | AM Framework & Gap Analysis Components of Gap Analysis © Copyright 2011 GHD.

AM Strategy | AM Framework & Gap Analysis Components of Gap Analysis © Copyright 2011 GHD.

Agenda Background AM Business Drivers AM Strategy Implementation Methodology Results Next Steps

CAMS as a Strategic Objective Implementation | The Approach Identified CAMS as a Strategic Objective Gap Analysis AM Roadmap  2009 2012 Developed RFP 2013 Secured Consultant ... 2016 CAMS Ph2 AM Roadmap Implemented  2018 AM Sustainability  CAMS Ph1 Complete 2014 Maturity Score (International Standard: PAS-55 / ISO 55000) Innocent The organization is starting to learn about the importance of Asset Management 1 Aware The organization is aware of the importance of Asset Management and is starting to apply this knowledge 2 Establishing The organization is developing its Asset Management activities and establishing them as Business As Usual 3 Competence The organizations Asset Management activities are developed, embedded and are becoming effective 4 Enterprising The organization’s Asset Management activities are fully effective and are being integrated throughout the business 5 Excelling The organizations Asset Management activities are fully integrated and are being continuously improved to deliver optimal whole life value 10

Implementation | Gap Analysis

Performance Indicators Supporting Technology & Processes Implementation| Performance Management Framework Steps to develop: Agree on objectives the program is contributing Establish service levels “logic model” or hierarchy Develop performance indicators Determine reporting requirements Community Objectives Service Levels Customer LOS (Outcomes) Technical LOS (Outputs) Reporting for: Accountability Continuous Improvement Performance Indicators Actual versus Target LOS Data Supporting Technology & Processes

Implementation| Performance Management Framework Logic Model Customer Service Objectives Outcomes Outputs Inputs Availability Cost Effectiveness Reliability Responsiveness Safety Suitability Sustainability City of Vaughan Strategic Plan Vision 20 | 20 Regulator Service Objectives Service Area Strategic Service Objectives Asset Service Objectives Program Service Objectives Services of sufficient capacity are convenient & accessible to entire community Services are provided at lowest possible cost for both current & future customers, for a required LOS, & are affordable Services are predictable & continuous Opportunities for community involvement; customers treated fairly & consistently, within acceptable timeframes Services are delivered such that they minimize health, safety & security risks Services are suitable for the intended function (fit for purpose) Services preserve & protect the natural and heritage environment Regulatory Responsiveness Requirements Regulatory Safety Requirements Regulatory Sustainability Requirements Council Approved Manage Growth & Economic Well-Being Ensure Financial Sustainability Ensure a High Performing Organization Promote Community Safety, Health & Wellness Lead & Promote Env’l Sustainability Preserve Our Heritage & Support Diversity, Arts & Culture Manage Corporate Assets Demonstrate Excellence in Service Delivery Service Area Availability Objectives Service Area Cost Effectiveness Objectives Service Area Reliability Objectives Service Area Responsiveness Objectives Service Area Safety Objectives Service Area Suitability Objectives Service Area Sustainability Objectives Asset Availability Objectives Asset Cost Effectiveness Objectives Asset Reliability Objectives Asset Suitability Objectives Program Availability Objectives Program Cost Effectiveness Objectives Program Reliability Objectives Program Responsiveness Objectives Program Safety Objectives Program Suitability Objectives Program Sustainability Objectives Organizational Excellence Service Excellence Administration

Implementation | Governance Model The structure resolves the two (2) basic tasks: Divides work in the organization into logical units Ensure the work gets done by providing work coordination and control

Buildings & Facilities Parks & Forestry Operations Implementation | Governance Model (At Maturity) Senior Management Team Asset Management Office External Experts Commissions AM Coordinator AM Coordinator AM Coordinator AM Coordinator AM Coordinator AM Coordinator Buildings & Facilities Fleet ITM Engineering Services Public Works Parks & Forestry Operations

Buildings & Facilities Implementation | Governance Model (Interim Model) Senior Management Team Establish AMO Fill the AMO Lead Keep AM Steering Team in place to support AMO Lead Asset Management Office AM Steering Team Informal AM Network Team External Experts Task Team Initiative # 1 Task Team Initiative #2 Task Team Initiative # 3 Task Team Initiative #4 Buildings & Facilities Fleet ITM Engineering Services Public Works Parks & Forestry Operations

We Need these Systems Now Implementation | IT Systems Strategy We Need these Systems Now 18

This aligns with the Ministry of the Infrastructure’s guidelines Implementation | The Asset Management Plan This aligns with the Ministry of the Infrastructure’s guidelines 19

Agenda Background AM Business Drivers AM Strategy Implementation Methodology Results Next Steps

Results | Asset Installation Profile Asset Installation Profile| Water Services (Total, 2012$)

Results | Asset Consumption Profile Example: Water Services (Total, 2012$)

Results | Future Investment Profile Future Investment Profile | Water Services (Total, 2012$)

Performance Management Implementation | The AM Program Roadmap Planning Core Service Delivery Performance Management Support Services

Key outcomes / benefits Internal Better understanding of corporate assets Consistency in financial reporting Informed decision making by Council External Maintain defined levels of service by reducing risk in assets More consistent taxation rates

Agenda Background AM Business Drivers AM Strategy Implementation Methodology Sample Results Next Steps

Next Steps | AM Program Data Collection CWMS AMS People 19

Questions? Contact Us: Jack Graziosi Director of Engineering Services, City of Vaughan jack.graziosi@vaughan.ca Aman Singh Lead Business Consulting, GHD Canada aman.singh@ghd.com Questions?