Operationalization of a Public Works AM Strategy Pious Maposa Senior Advisor – Asset Management, Halton Region Pious.Maposa@halton.ca Dan Olsen CH2M, AM Consultant Daniel.Olsen@ch2m.com

Presentation Objectives Understand how we developed a line of sight between AM objectives and the 2018 capital plan Understand our approach to fostering a culture of AM across the organisation

Our Customers The Public Works department is responsible for delivering water, wastewater, waste, and road services to approx. 530,000 customers across 4 municipalities Describe the customers and the system (i.e. assets)

Our Assets To delivery services to customers, Halton Region owns and operates: Water Wastewater Roads Waste 12 water purification plants 15 booster stations 22 reservoirs 2,218 km of water main 7 wastewater treatment plants 88 pump stations 1,806 km of sewer main 1,013 lane km of roads 225 bridges and major culverts 1 open landfill 11 closed landfills Describe the customers and the system (i.e. assets)

Our AM Strategy Framework

Building the Line of Sight

Line of Sight Monitor Customer LOS Monitor Technical LOS Update 10-year Capital Plan Update Life Cycle Models (LCMs) Perform Risk Assessment

Line of Sight Monitor Customer LOS Monitor Technical LOS Technical LOS used as early warning mechanism for customers impacts Monitor Technical LOS Update 10-year Capital Plan Update Life Cycle Models (LCMs) Perform Risk Assessment

Levels of Service (LOS) Customer LOS objectives were developed for each service area that aligned to 8 customer values: Availability Cost Effectiveness Reliability Responsiveness Safety Suitability Sustainability Technical LOS key performance indicators were selected that measure asset and operational factors needed to achieve each customer objective.

Levels of Service (LOS) – Water Example % of trunk mains that have system redundancy or emergency SOP # of hours of treated water storage capacity at average summer day demand # of main breaks/100km # of inoperable or leaking critical valves Reliability (e.g. unplanned service interruptions are minor) Asset factors Operational factors % compliance with valve preventative maintenance program of critical valves % compliance with Condition Needs Assessment Plan

Line of Sight Monitor Customer LOS Monitor Technical LOS Technical LOS used as early warning mechanism for customers impacts Monitor Technical LOS Technical LOS data used as input for LCMs Update 10-year Capital Plan Update Life Cycle Models (LCMs) Perform Risk Assessment

Lifecycle Management 8 Life cycle models were developed for different asset types across the four service areas. Life cycle models used to forecast long-term asset renewal needs to maintain service to customers.

Lifecycle Management – Water Example Water mains - based on historical break data and a target # of breaks per 100km per year, statistical model was developed.

Line of Sight Monitor Customer LOS Monitor Technical LOS Technical LOS used as early warning mechanism for customers impacts Monitor Technical LOS Technical LOS data used as input for LCMs Update 10-year Capital Plan Update Life Cycle Models (LCMs) LCM used to identify asset issues for Risk Assessment Perform Risk Assessment

Asset Risk Management Consequence of Failure on Customers Customer LOS Attributes include: Cost Effectiveness Safety Availability/Reliability Suitability Sustainability Responsiveness Consequence Categories include: Cost Health & Safety Availability/Reliability Legislation Environment Technical LOS Likelihood of Asset Failure Factors include: Asset factors Operational factors Root causes of failure include: Asset factors – e.g. main breaks Operational factors – e.g. inadequate preventative maintenance

Asset Risk Management – Water Example Failure Mode break in a 350mm DI main under a major highway. Consequences Cost - Highway could wash out which would have significant repair costs and traffic diversion. Availability/Reliability - Loss of supply to 500 properties and service would be out for 2 months. Some redundancy in system. Safety - 407 has high volume so potential for serious injury. Likelihood 50 year old pipe, no recorded breaks, moderate likelihood

Line of Sight Monitor Customer LOS Monitor Technical LOS Technical LOS used as early warning mechanism for customers impacts Monitor Technical LOS Technical LOS data used as input for LCMs Capital Plans are validated by monitoring Technical and Customer LOS LCM informs Years 5 to 10 of plan Update 10-year Capital Plan Update Life Cycle Models (LCMs) Asset issues that have highest risk (based on likelihood of asset failure and consequences to customers) are prioritized in Years 1 to 4 of plan LCM used to identify asset issues for Risk Assessment Perform Risk Assessment

Results - 2018 Capital Plan

Fostering an AM Culture in Halton

AM System - Stakeholders I want a capital plan with no surprises. Finance I want planners and management to listen to my concerns about the asset base. O&M Stake-holders Senior Mngt. I want to be confident in the decisions being made on assets. I want the AM processes to not create additional work for me and that will add value to me role. Asset Planners

Steps Taken to Gain Internal Stakeholder Buy-In Build Team Assembled an AM Team, comprised of champions within each internal stakeholder group Train Conducted an AM training session to create common language around AM Develop Developed the Tools/Processes with the Team Implement Implemented the Tools/Process to develop the 2018 capital plan Sustain Embedded the Tools/Framework within Halton

Stakeholder Buy-in Finance O&M Stake-holders Senior Mngt. I now see how the AM processes can enhance the transparency of the capital plan and manage unknowns. I now see how the risk process will enable my voice to be heard and my concerns to be documented. Finance O&M Stake-holders Senior Mngt. I now see how I can align my current approach to the AM system to enable better decision making without additional work. I now see how the risk process can be a strong tool to support my decision making. Asset Planners

Look Ahead

Look Ahead Sustain existing momentum Continue to develop components of the AM Framework Optimized Decision Making Asset Information Strategy

Questions? Contact Us: Pious Maposa Senior Advisor – Asset Management, Halton Region Pious.Maposa@halton.ca Dan Olsen CH2M, AM Consultant Daniel.Olsen@ch2m.com