Asset Management is not a system nor a collection of data nor is it a GIS

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1 Relationship of PSAB 3150 and Asset Management David Watt Senior Asset Management Specialist Associated Engineering

2 Quote for the day We have more information now than we can use, and less knowledge and understanding than we need. Indeed, we seem to collect information because we have the ability to do so, but we are so busy collecting it that we haven't devised a means of using it. The true measure of any society is not what it knows but what it does with what it knows. Warren Bennis

3 Definitions Asset : Something I own and perform work on Resource: Something that I use to work on my assets Asset Inventory: A sustainable collection of current information on all my assets Level of Service: A quantifiable measure of the effectiveness of my management of assets using indicators.

4 Asset Management The Definitive Definition The management of assets to assess, improve, maintain or conceivably decrease a predetermined customer service level balancing available resources, legislative requirements, public expectations and asset sustainability. Asset Management is not a system nor a collection of data nor is it a GIS It is a rational and measurable decision making system that you have always used albeit in a non quantifiable, non digital manner

5 The Four PSAB Fallacies PSAB financial statement will allow me to Better manage my assets / infrastructure Benchmark my asset performance against others Accurately predict replacement and rehabilitation PSAB and Asset Management efforts are mutually exclusive

6 PSAB Will Provide a statement of what you own. Provide a simplistic lifecycle assessment of your assets. Provide a statement of the amortized value of your assets.

7 Asset Management Will Provide a realistic long term capital plan Allow focus on assets based on criticality not just age Coordinate replacements, better bang for the buck Allow for Level of Service Assessments Create a sustainable corporate memory

8 Why? Some definitive service level and performance indicators

9 PSAB TCA Inventory Valuation Amortize Financial Statement Manage contributions, disposal, write downs etc.. Asset Management Inventory Valuation Condition Assessment Manage Assets Manage additions, rehabilitation, replacements, removals etc..

10 PSAB TCA WHY? I have to do it I have no choice It will impact my future ability to access funding Everybody else is doing it

11 + Importance - Asset Management Why? Providing better service to your internal and external customers Staff retirements, changes Effective defensible capital and financial planning Rapid and efficient access to information Dwindling budgets aging systems Risk / liability mitigation Effective communication tool PSAB 3150 Because everyone else is doing it Benchmarking?

12 PSAB + AM Approach Approximately 5-10% more effort to add AM related information at inventory stage. PSAB inventory build without AM component is a missed opportunity. PSAB is an annual requirement AM is a tool to use everyday

13 Saskatchewan Example City of Yorkton Sidewalk Management and PSAB Valuation

14 City of Yorkton Sidewalk Inventory and Valuation PSAB Assignment Inventory of all sidewalk assets from historical records Determine current and historical value Replacement value ~ $21M

15 PSAB Deliverable

16 City of Yorkton Sidewalk Inventory and Valuation Asset Management Assess overall condition Prevent future financial loss Assess replacement service levels Provide a replacement planning tool

17 PSAB statement with Condition inspections. Mapping Criticality Asset Management Deliverable

18 Results Increase spending current budget is not sustainable Repair plan aimed at worst sidewalks in most travelled areas versus oldest sidewalks Better tracking of failure mechanisms Coordinate replacements with other infrastructure

19 Questions? Delivering a PSAB statement without at least considering asset management use is a missed opportunity Where will you spend future funding?