1. Asset Management A STORY of INTEGRATION Wally Wells P. Eng.

2. What do we do? Provide Services! That’s it!! Level of Service defines everything Physical Infrastructure is only there to provide a service (c) Asset Management BC, 2015 www.assetmanagementbc.ca

3. 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 (c) Asset Management BC, 2015 www.assetmanagementbc.ca

4. 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 !!! (c) Asset Management BC, 2015 www.assetmanagementbc.ca

5. 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 (c) Asset Management BC, 2015 www.assetmanagementbc.ca

6. 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 (c) Asset Management BC, 2015 www.assetmanagementbc.ca

7. 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 (c) Asset Management BC, 2015 www.assetmanagementbc.ca

8. 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. (c) Asset Management BC, 2015 www.assetmanagementbc.ca

9. 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 (c) Asset Management BC, 2015 www.assetmanagementbc.ca

10. 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 (c) Asset Management BC, 2015 www.assetmanagementbc.ca

11. 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 (c) Asset Management BC, 2015 www.assetmanagementbc.ca

12. Integrated Long Term Capital Plans Objective: 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

13. 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! (c) Asset Management BC, 2015 www.assetmanagementbc.ca

14. www.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.”

15. (c) Asset Management BC, 2015 www.assetmanagementbc.ca The Gamètì Story Keeping records Water plant Administration building

16. (c) Asset Management BC, 2015 www.assetmanagementbc.ca The District of North Vancouver Story Make it our day job How to save time and money

17. (c) Asset Management BC, 2015 www.assetmanagementbc.ca The High River Story A good inventory really helps

18. (c) Asset Management BC, 2015 www.assetmanagementbc.ca Kitimat $2.0 ++ billion investment – large construction camp Consuming assets with no increase in maintenance money

19. (c) Asset Management BC, 2015 www.assetmanagementbc.ca

20. www.assetmanagementbc.ca SINGULAR OBJECTIVE TO CREATE AND FACILITATE OPPORTUNITIES TO SHARE KNOWLEDGE, TOOLS AND INFORMATION RESPECTING “INTEGRATED” ASSET MANAGEMENT.

21. (c) Asset Management BC, 2015 www.assetmanagementbc.ca By using the tools and resources that Asset Management BC has developed: - AssetSMART - Framework - AM Policy - Workshops - NAMS training - Newsletter 12 th Edition - Website(resources) - Case studies ASSET MANAGEMENT BC

22. (c) Asset Management BC, 2015 www.assetmanagementbc.ca NATIONAL AM BC AM Sask AM Nova Scotia AM Alberta AM Ontario Growing Network

23. (c) Asset Management BC, 2015 www.assetmanagementbc.ca

24. Framework for Sustainable Service Delivery  People  Information  Assets  Finances (c) Asset Management BC, 2015 www.assetmanagementbc.ca

25. Framework for Sustainable Service Delivery  Assess  Plan  Implement (c) Asset Management BC, 2015 www.assetmanagementbc.ca

26. Resources Asset Management BC Asset Management policies Standards (PAS 55000) References IPWEA Case studies (12) Financial – LTFP Asset Management Plan (c) Asset Management BC, 2015 www.assetmanagementbc.ca

27. www.assetmanagementbc.ca AssetSMART AssetSMART to assess their capacity to manage their assets. 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

28. www.assetmanagementbc.ca

29. (c) Asset Management BC, 2015 www.assetmanagementbc.ca An Asset Management Governance Framework for Canada

30. Are you ready (AssetSmart) Inventory (PSAB 3150) Condition assessment Asset Class assessments

31. Level of Service Risk / Criticality Profile Integrated Strategy

32. From PSAB 3150  Asset Identity  Asset Valuation  Asset Depreciation

33. 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“ ?

34. 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?

35. Water System - Age Profile

36. 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).

37. Storm Drain System - Age Profile

38. Sewer System - Age Profile

39. Infrastructure Replacement Cost Infrastructure TypeCurrent 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

40. Current Funding Levels and Deficits Infrastructure Type 2010 Actual Funding (Millions $) 2010 Recommended Funding (Millions $) 2010 Funding Deficit (Millions $) Civic Facilities 1.74.3 (1)2.6 Water System 1.65.3 (2,3)3.7 Storm Drain System 2.13.7(2,3)1.6 Sanitary Sewer System 4.96.2(2,3)1.3 Roads (paving only) 0.52.0 (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

41. (c) Asset Management BC, 2015 www.assetmanagementbc.ca Nanaimo Numbers - Population about 88,500 1.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.

43. Linear Infrastructure Gap - Summary Proposed Dev Services Infrastructure reinvestment budgets based on RIVA simulation of the next 100 years of linear infrastructure renewal & replacement Infrastructure Area NLIA 2008 RIVA 2009 Linear 5-Year Average Linear Linear Infrastructure Gap Gen - Roads4.64.83*2.9241.906 Gen - Other Incl. Storm4.761.060.3740.686 Water3.493.790.8562.934 Sanitary1.562.170.3171.853 Total14.4111.854.4717.379 All amounts are in Millions * Does not include the cost of Road Reconstruction for Utilities @ $9.14M

44. 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. (c) Asset Management BC, 2015 www.assetmanagementbc.ca

45. www.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

46. (c) Asset Management BC, 2015 www.assetmanagementbc.ca What’s Current Climate Change Culture Change Measures Framework

47. Where we are going Focus on communicating the message Culture Change Performance measures Climate change Implementation – continuous process (c) Asset Management BC, 2015 www.assetmanagementbc.ca

48. www.assetmanagementbc.ca Canadian Network for Asset Managers Vancouver May 11-14 Focus – integration Governments and utilities Registration now open www.cnam.ca

49. (c) Asset Management BC, 2015 www.assetmanagementbc.ca