Tactical Tools and Practices

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Jeffry Jenkins
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1 Going Beyond Asset Management: Tactical Tools and Practices GFOA 2015 Western Canada Conference Whitehorse, Sept 15, 2015 John Weninger P.Eng., MBA Urban Systems

2 What s the right choice for your community? This pool?

3 What s the right choice for your community? Or maybe this pool?

4 What s a higher priority? Paving this road?

5 What s a higher priority? Or maybe replacing this sidewalk?

6 What about your community finances? What s a sustainable funding level for your services? What level of reserves do you need? Can your community afford that new?

7 What is Asset Management?

8 Definitions can be found in many best practices and resources: ISO (PAS55) National Roundtable for Sustainable Infrastructure International Infrastructure Management Manual BC Asset Management Framework

9 Definitions ISO defines asset management as: A coordinated activity of an organization to realize value from assets. Realization of value will normally involve a balancing of costs, risks, opportunities and performance benefits. National Roundtable for Sustainable Infrastructure defines asset management as: Asset Management is an integrated business approach involving planning, finance, engineering and operations to effectively manage existing and new infrastructure to maximize benefits, reduce risk and provide satisfactory levels of service to community users in a socially, environmentally and economically sustainable manner.

10 Definitions cont d International Infrastructure Management Manual describes asset management: The goal of infrastructure asset management is to meet a required level of service, in the most cost effective manner, through the management of assets for present and future customers. The key elements of infrastructure asset management are: Taking a lifecycle approach Developing cost-effective management strategies for the long-term Providing a defined level of service and monitoring performance Understanding and meeting the impact of growth through demand management and infrastructure investment Managing risks associated with asset failures Sustainable use of physical resources Continuous improvement in asset management practice

11 Definitions cont d BC Framework for 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.

12 Making sense of many perspectives While these definitions are each unique in the words they use, they share some clear and important messages: Asset management is an ongoing process Asset management is an integrated approach Asset management is about sustainable service delivery Asset management is about balancing risk, cost and levels of service

13 Common Myths Asset Management is NOT: A project A plan A software program Ever finished Something that is done for you Just developing an inventory Just doing condition assessments TCA / PS3150

14 Asset Management is about making good decisions UNDERSTANDING RISK UNDERSTANDING SERVICE UNDERSTANDING COST MAKING GOOD DECISIONS

15 Asset Management provides An ability to evaluate and communicate tradeoffs between service, cost, and managing risk A defensible way of prioritizing projects and resources A path to long term sustainability of services in alignment with community values Demonstration of accountability to the community

16 Asset management is a means to an end, and not an end itself.

17 How is asset management implemented? Common Wants A generic checklist of activities or prescribed processes A set of templates to fill out A software silver bullet Someone to do an asset management plan for them To be the responsibility of someone else

18 Requires a tailored approach WHY HOW The why will drive the how What are the outcomes that you are aiming to achieve? The more specific, the better. Being clear about objectives helps you to use existing AM best practices and resources as guides Implement your own process tailored to your objectives and context

19 Common challenges for small communities Don t know where to start Staff don t have time Don t know what to do or how to use existing resources

20 Common challenges for small communities Don t know where to start Get a high level picture of your assets and long term needs for replacement and start to communicate the message Staff don t have time Build into existing processes (e.g. budget process), start small and improve incrementally Don t know what to do or how to use existing resources Undertake an assessment of practices and identify two or three priority areas.

21 AM at different levels Basic, intermediate, advanced Still have basic components, but complexity of information and decisions increases Continuous improvement It s better to make small steps that actually influence what is done, than big steps that result in documents that sit on the shelf.

22 Asset Management for Sustainable Service Delivery: A BC Framework Outcomes focused framework (i.e. identifies why and what, but not how) Developed in partnership by UBCM, Ministry of Community, Sport and Cultural Development, and Asset Management BC, with consulting support by Urban Systems Helps communities understand how to meet administrative requirements of the renewed gas tax agreement Short and long versions

23 Asset Management for Sustainable Service Delivery, A BC Framework

24 The Core Elements ASSETS Physical Infrastructure to enable Service Delivery INFORMATION to Support informed decision-making FINANCES Understanding Long Term Costs of Service Delivery PEOPLE Skills and Capacity

25 The Process Continuous quality improvement process Incremental and scalable 1. Assess Capacity, Demand and Results 2. Plan what needs to be done 3. Implement plans

26 Assess Assess asset management practices: Organizational capacity for asset management Current status in each of the core elements Assess the current state of assets: Inventory Asset conditions Levels of service Risk

27 Available Assessment Tools NAMS PAS 55 / ISO AssetSMART

28 Plan Policy: Coordinated principles and requirements. Strategy: Objectives for asset management, organizational approach, and connection to other plans and initiatives. Asset Management Plan: User-friendly, long-term document that identifies current assets, conditions, and risks, and the cost and timing of activities are required to maintain service levels. Integrate to Long Term Financial Plan: Identify gaps between long term investment requirements and revenue, and adjust revenue or service levels to address the gap.

29 Implement Implement asset management practices: implement actions in the plans, build the systems and processes required to continuously improve asset management. Measure and report: assess performance against asset management objectives (may use a set of indicators), and report results through annual and financial reports.

30 Available Planning and Implementation Tools BC Asset Management Roadmap BC Framework for Sustainable Service Delivery Infraguide E-Learning Tools International Infrastructure Management Manual (IIMM) PAS 55 / ISO South Australia Local Government Association Guidelines

31 Don t forget to - Communicate, Engage, Review Ongoing and throughout the process Develop alignment internally Understand expectations and priorities of the community Communicate risks, service level and cost trade-offs

32 Thank You John Weninger, P.Eng. MBA Urban Systems Ltd. Vancouver, BC

Sustainable Service Delivery

Asset Management for Sustainable Service Delivery A BC Framework Sustainable Service Delivery Sustainable Service Delivery ensures that current community service needs, and how those services are delivered