1. Grace McLenaghan Asset Management Reporting at the Region of Peel
Advisor, Corporate Asset Management, Region of Peel
CNAM 2014 Conference
Toronto, Ontario
May 20-23, 2014

2. The Region of Peel • 1.3 million people
• Over $19B (2012 values) in capital assets:
Water & Wastewater vertical & linear assets
Roads infrastructure
Waste Management Processing
Long Term Care Centres
Paramedic Stations
Heritage museum
Affordable Housing
Regional administration offices
Works yards/Fleet
Shelters
Child Care Centre's

3. Peel’s Corporate AM Program
Peel’s AM governance is “top down/bottom up”
Peel’s AM program is 2-tiered
The Corporate asset management strategy is not full asset management
A high level process for organizational consistency in assessing & managing the infrastructure
Provides consistent & objective state of infrastructure reporting and priority setting by asset categories (classes)
Programs have the expertise for the “frontline” asset management

4. ROLE OF CAM Ensure consistency of organizational AM practices
Maintain AM policy
Life cycle strategies
Asset levels of service
Asset Risk management
Strategic evaluation of infrastructure needs & priorities
Investment needs
Infrastructure priorities & risks
Reporting
Corporate “challenge” function
Are Programs investing in the right areas/right levels?
Appropriate levels of service/risks?
Appropriate asset management planning?
Is data sufficient/accurate?
In short, CAM’s role is to ensure consistent organizational practices for consistency of reporting and better, more informed and object decision making. 4

5. Where are we in the Asset Management Journey?
Asset Management Policy and Strategy, endorsed by Council
Levels of Services defined for each asset class and approved by Council
Mature Risk Strategy, fully incorporated into analysis and reporting
Defined Lifecycle Strategies, tailored to different asset classes (Curve Based, Forward Works, Estimated Service Life, Performance)
Optimized Decision Model to incorporate Levels of Service, Risk and Lifecycle curves to yield recommended investments to meet Levels of Service
Ability to leverage data already collected and updated (CMMS, Pavement Management, Bridge Model)
Support from Programs had been formalized through the adoption from the policy – now fully part of the Region’s Business Processes
Organizational Data Management Plan

6. How The Process Works
As mentioned earlier – the programs are the infrastructure experts & accountable for managing their assets
They provide us with asset data, life cycle information, asset levels of service & risk targets
CAM processes the information through an ODM to determine at an asset class/category level:
the gaps between target LOS and Risk
The costs to close those gaps
The state of the infrastructure
Where the priorities are
What the risks would be under different funding scenarios
CAM reports 3 times annually in support of each Program’s annual programming of the 10-year capital plan & can do so ad hoc if required

7. Principles of Corporate Asset Management Reporting
Present information on a level playing field – risk-based model allows for comparison between different asset classes
Focus on the big picture, but present enough to enable decision making
Tailor information to audience – ability to ‘roll up’ same information to any level
Complex data and model results consolidated into simple and clear reports

8. Different Audiences Need Different Information
Programs
AMP serves as the Business Case for their State of Good Repair Capital Plan
Outlines critical issues and unmet needs for each asset class
Executive Management Team
Interested in overall view
Need to know the key issues, risks & priorities
Is the corporation's annual 10-year capital plan in line with CAM recommendations?
Infrastructure Gap/Long Term view

9. Different Audiences Need Different Information
Council and Public
General State of the Assets
Brief; focused on impact to Services
Why invest in the assets? What will you achieve?
Corporate Asset Management Plan
Tailored to satisfy the requirement of Provincial Guidelines

10. Asset Management Investment Plan
Overall Score and Sustainability Index
CAM SOGR Recommendations
Risk Profiles
Risk Maps – what can we improve
Analysis of issues and unmet needs
Program Response and Program SOGR Budget Comparison
Example that follows is for Waste Management Assets

11. Infrastructure Score
Scores (A to F) is based on the deviation from Risk Targets for an Asset Class
Risk is a direct correlation with how well Condition and Performance Levels of Service are met

12. Sustainability Index
Sustainability Index compares the Program’s State of Good Repair Investment to CAM’s Recommendations
Indicates areas of over or under investment (+ or – 20% deviation from CAM SOGR recommendations)

13. Risk Measures by Asset Class
Current Asset Needs & $’s
Total Risk Mitigation per 10 Year AMP
Inherent (Unmitigated) Risk – Highest Estimated level of risk. No controls.
Target Risk – Desired risk after implementing all practical controls.
This is a typical measure for each asset class
Inherent risk sets the upper end of estimated risk – an estimate based on having no preventative controls (an indicator of the most critical assets to the service) could change with a Black Swan – e.g. a new virus immune to current disinfection processes
Target risk – the desired level of risk having implemented all practical controls
(harden critical bends in a stream to prevent wash out but can’t protect the entire stream from the risk of wash out/slide)
Current Risk – most assets fall within the minimum and maximum estimated risk. Many but not all ALOS may be met due to financial or human resources.
Projected Risk – based on lifecycle predicts the number of additional assets falling below target levels of service
Risk per 10-year plan – based on the financial resources and 10 year capital plan what the risk is projected to be at the end of the 10-year period
Current Risk – Estimated level of risk under present controls.
Projected 10-Year Risk (No Funding)
Risk per 10-Yr Capital Recommendation

14. Risk Profile Risk Profiles in conjunction with recommendations
How is the investment mitigating risk ?
Areas of greater reduction potential

15. Risk Maps Show potential deterioration with time
Differentiate between condition and performance risk

16. Service AMIPs – Why do we do them?
Assist Program in preparing their State of Good Repair Capital Budgets – Business Case
Tool for communications between CAM and Programs – What are the main issues? What do we recommend? What do we need to work on?
Look forward – what asset classes will be presenting the most risk? Where should we focus?

17. Executive Management Team
State of the Infrastructure Dashboard
Top Issues & Risks
Data Management Action Plan
Infrastructure Stewardship Report

18. State of the Infrastructure Dashboard

19. Top Infrastructure Issues & Risks
Aim to answer “What?”, “So What?” and “Now What?”
Key Assets which are reaching end of their lifecycle, and take up a significant portion of the requirements for an asset class (especially buildings)
Recommendations for further investigation or intervention

20. Data Management Improvements
Areas where additional data is required, and action plan to rectify gap
Areas where additional studies are required to quantify needs
Areas where CAM can leverage future information to improve lifecycle models
Programs are responsible for enacting the recommendations of the plan, and for timelines.
Areas where additional data is required, and action plan to rectify gap (e.g. additional information on storm sewer conditions)
Areas where additional studies are required to quantify needs ( e.g. Inflow and Infiltration in sewers, and possible fixes)
Areas where CAM can leverage future information to improve lifecycle models (e.g. risk assessment of transmission mains)
Programs are responsible for enacting the recommendations of the plan, and for timelines.

21. Long Term Projections
CAM Model run for longer term (over 30 years) and projected expenditures are calculated

22. Infrastructure Gap
Information is input into reserve models, and Infrastructure Gap is calculated – 10 years shown

23. Infrastructure Stewardship Report
Executive Level Report – keep it short!
Key information (Scores, Top Issues) make it into the Budget presentation and documents
What are the upcoming issues are areas of focus? What do we need to improve?
Are we sustainable? Where will our assets be in the future?

24. Council and Public Reporting
Report annually on the State of the Infrastructure – as per Asset Management Policy
Service Focus – states of the assets related to the service it supports
e.g. Good Roads = People and Goods Movement
Action-oriented: What are we doing about it?

25. Infrastructure Status and Outlook Report
Modified Legend – to get away from typical grades and focus more on the description
Kept colour scheme and grading criteria
e.g. Very Good = A (Green Background)

26. Infrastructure Status and Outlook Report

27. Infrastructure Status and Outlook Report
Aims to foster a sense of ownership of the Region’s assets – these are public assets
It’s goal is to inform a wide audience of the need for good state of repair
Incorporated into Budget Document – link between assets and need for capital funds to maintain them

28. Asset Management Plan – Building Together Provincial Guide
In the process of producing a report that will satisfy the requirements of the Guide for Municipal Asset Management Plans
All the information is there! Just needs to be put together.

29. What will go in?
Program Level Risk –Based State of the Infrastructure Scores - Public View Theme
Major Issues for each Program and Priorities
Council approved Levels of Service (Customer and Asset Class Level)
Asset Management Framework – how recommendations are made

30. What will go in?
Financial Section – Focus on Infrastructure Gap – Sustainability 10 year period and beyond
Financial Management Policy and Asset Management Policy
Individual Asset Management Plans for each service (Appendix)

31. Overall Benefits to Decision Making
Clear & defensible information:
state of the infrastructure
asset & service risks
organizational asset needs & priorities
financing requirements
Shifts the discussion from “where are we?” to “where do we go?”
Capital Plans are aligning with SoGR needs
We’re quickly closing the funding gap!

32. Questions? Contact Me: Grace McLenaghan
Advisor, Corporate Asset Management, Region of Peel