What is the State of Asset Management? Canadian Network of Asset Managers Ontario Asset Management Working Group September 27, 2016

Introduction City of Brampton- Facts City of Brampton’s CAM Vision Corporate Asset Management Office ISO55000 State of Asset Management Methodology Next Steps- Journey of CAM 2

City of Brampton

Mobilizing Stakeholders AM Policies & Strategies Brampton CAM- Goals AM Plan AM Roadmap State of AM City-wide Mobilizing Stakeholders AM Network CAM Program AM Governance AM Policies & Strategies

Vision Providing sustainable service to our customers Minimizing asset lifecycle costs Balancing risks with levels of service The CAM program is the method by which the City will: Ensure sound stewardship of public assets Meet its customer service commitments to present and future citizens in the most effective and efficient manner At the core, the CAM program focuses everyone in our organization on fundamental goals such as:

Focus Coordinated activity of an organization to realize value from its assets Source: ISO 55000 Source: Sustainble Asset Management, R. Lutchman, 2006 Asset Management Ensures the Right Balance of : Strategy, Assets (Physical & Technology), People and Business Processes to Deliver Established Levels of Service through an optimized risk based decision making approach. LAVINA- Please modify the diagram

ISO 55000 New Global Standard for Asset Management Value Does not focus on the asset itself but on the value that the asset can provide to the organization Alignment Asset management decisions (technical, financial and operational) collectively enable the achievement of organizational objectives Leadership Leadership and commitment from all managerial levels is essential for successfully establishing, operating and improving asset management within the organization Assurance Assurance that assets will fulfill their required purpose via effective governance Source: CH2M

Institute of Asset Management - ISO 55000

Asset Management Initiative December 3, 2010 Current Situation Vision for the Future Presentation to EPC planning 9

Key Building Blocks – Asset Management Program Corporate Asset Management Plan Departmental Asset Management Plans Organizational Strategic Plan Asset Management Policy Sets out the vision, mission and high level goals and business objectives for the organization Articulates senior management commitment to Asset Management and Continual Improvement Provides “top down” direction regarding expectations and mandatory requirements for Asset Management and defines the key principles that underpin Asset Management within the Utility. Sets out overall approach to implementing Policy Sets out how the organizational objectives relate to asset management objectives and how the management system will implement the AM Policy Outlines long term plan for the assets including service expectations, timelines and funding, and resource requirements Sets out the specific lifecycle activities to deliver the AM objectives Source: CH2M

Elements of CAM Roadmap Strategy & Planning AM Decision Making Lifecycle Delivery Asset Information Organization & People Risk & Review

Current Regulatory Drivers Federal Gas Tax Funding Requirements – CAMP (Deadline 2016)

Developing the Optimum Capital Program Total Benefits Per Project Cost-Benefit Ratio Best Value Capital Program Total Benefits Per $ spent Source: CH2M

Minimizing cost of ownership and averting financial crises Major Financial Crisis Point Minor Capital Needs - $ Balanced Approach= Levels of Service & Risk Prioritization Time - years Source: CH2M

CAMP feeds into Long-Term Financial Plan What is the Long-Term Financial Plan (LTFP)? Software based financial model (Riva FP) Designed for sensitivity testing and continual updating Written report that assesses the City’s financial condition and polices CAMP Integration Capital replacement component of LTFP will be based on CAMP CAMP will inform capital forecast that will be used in subsequent LTFP updates

Long Term Financial Plan and CAMP LTFP Capital CAMP Capital Considers many plans and polices besides replacement capital One of key inputs that feed into LTFP Considers initial round capital (DC) projects and repair and replacement projects Emphasis is on the repair and replacement of existing and new infrastructure Replacement requirements provided at the service area level Detailed project by project exercise Process and policy issues to be considered are flexible based on City priorities More formalized process consistent with ISO and AMO requirements To be continually updated Includes a Financing Strategy Feeds into Capital (and operating) Budget

Long-Term Financial Plan Considerations Council Goals and Objectives Asset Management Plans Capital and Operating Budgets Service Delivery Reviews Master Plans Development Forecasts

Leadership CAM Means Change…. and people generally resist change… …until the vision is so compelling that people want to go to the “new place,” or until the pain of staying the same exceeds the pain of change

ISO 55001 – Alignment of Questions

State of Asset Management (SAM)

Questions? Vanessa Chau Manager, Corporate Asset Management Corporate Services vanessa.chau@brampton.ca T:905-874-3658