How it helps your municipality
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1 What is Asset Management How it helps your municipality Presented to: UNSM Workshop: The Basics of Asset Management By: Daisy Foster, Managing Director Atlantic Infrastructure Management Network (AIM) 1 April 2016
2 What is Asset Management? Asset Management is the coordinated activities of an organization to realize value from its assets in the achievement of its organizational objectives. (Asset Management Primer: CNAM)
3 What is Asset Management? Asset Management is the process of making decisions about the use and care of infrastructure to deliver services in a way that considers current and future needs, manages risks and opportunities, and make the best of resources. (Alberta Handbook)
4 What is Asset Management Good Stewardship of Infrastructure
5 What s the Buzz?
6 Drivers for new approaches to AM PSAB (PS3150) 2009: Purpose: Improved understanding of future infrastructure funding needs Requirement: Account for capital assets on financial statements
7 Drivers for new approaches to AM National Asset Management Framework: 2009: Framework for Strategic Asset Management: By 2020 Canadian municipalities use full life-cycle analysis as basis for municipal infrastructure decisions Municipalities will have access to sustainable funding mechanisms.
8 Sustainable Service Delivery: Proactive vs. Reactive: fewer service disruptions more predictable results lower total life cycle costs the reactive approach to repair and replace.
9 Sustainable Service Delivery Systematic Consistent and repeatable process applied to all asset classes: Developing council policy, assessing state and condition, planning for renewal, replacement and financing, implementing plans, measuring, and reporting
10 Sustainable Service Delivery Comprehensive & Integrated Infrastructure People Finances Information
11 Asset Management: Whose Job Is It? Council Finance Planning Engineering Operations Management financial planning & budget renewal strategies level of service policies design standards risk management strategies optimization strategies asset valuation - PSAB long-term forecasting life-cycle costing service request & work orders preventative maintenance communications & education
12 Asset Management Process Who Does What?
13 Asset Management Process POLICY Service level for each Asset category ASSET MANAGEMENT PLAN A plan for each asset category MANAGEMENT REPORTS OPERATIONS Implementation of the Asset Management Plan CHECKING Evaluate KPI s against performance targets
14 Asset Management Planning: 1. Council Policy 2. Strategies 3. Service levels 4. Asset Inventory 5. Determine what it is worth 6. Condition assessment 7. Remaining service life 8. Cost to bring to desirable level of service 9. Prioritize Communication, Awareness, Education and Training
15 Getting Started Identify a champion and a team Assess capacity for AM Build support and buy-in Identify objectives Identify users/beneficiaries
16 1. Council Policy Demonstrates Commitment to AM Principles/guidelines to steer Asset Management activity Roles and responsibilities Council and Staff Directs and Engages staff to implement Asset Management
17 2. Establish Service Levels What services are being provided now? What services will be provided in the future? What level of service does your community value? What are they willing to pay for? Assess desired level of service and affordability. Establish minimum acceptable service levels for asset classes.
18 2. Establish Service Levels Elected officials require full understanding of: Service Risk Cost
19 Acceptable level of service..
20 3: Asset Inventory: What do we own and where is it?
21 4: Determine what it is worth Typical valuation methods: Construction cost (historic) Replacement value
22 5. Assess the condition How asset is likely to perform in future Condition assessment by: Age (install date) Engineering calculations Video assessment Subjective evaluations
23 6: Determine the remaining service life RSL:
24 7. Determine Cost to bring to desirable level of Service Cumulative Cost vs. Revenue
25 8: Identify what needs to be fixed first Prioritizing maintenance needs Subjective criteria technique Expert knowledge Age based rankings Condition based rankings Risk based rankings : Probability and Consequence of failure
26 Communication and Awareness Verbal Written Policies Strategies Plans Financial Info.
27 Communication and Awareness Ensuring the right people have the right information and sufficient information to make informed decisions. Who needs to know what When do they need to know How do we inform, engage and create awareness
28 Communication and Awareness Internal Communications:. What: What AM is - how it will be used to improve service delivery Summary of assets owned, key services, risks and risk management strategies Individual roles and responsibilities
29 Communication & Awareness Internal Communications: How: New staff or new council orientation Lunch and learn Organized AM information meetings (eg. Council to staff; department to department, AM committee to other municipal staff, )
30 Education & Training Staff Development: Asset management process Staff roles and responsibilities How to prepare an AM plan How to use AM Plan to get best value for community Technical skills Team integration Communications and awareness Sources: Conferences, workshops, networking, courses, webinars
31 Communication, Awareness, Education, Training External Communications Elected officials need to demonstrate accountability to taxpayers. what services have been provided at what cost; cost to maintain/enhance/add services Taxpayers need opportunities to become informed and provide input
32 Communication, Awareness, Education, Training External Communications How: Community Satisfaction Surveys (services & service levels) Annual Reporting Hold town hall meetings with taxpayers Distribute written report
33 How Does the AM Process Help You? Reduces risk Improves operating performance Reduces Capital Costs Provides a defensible way of planning and prioritizing projects & resources Atlantic Infrastructure Management Network (AIM)
34 How Does AM Help You? Financial: Balances service level expectations with affordability. Supports long term financial planning over the life cycle of the asset. Predictability for taxation Supports applications for funding from senior governments. Improves communications about infrastructure needs and funding requirements internally and externally. Means of demonstrating accountability to taxpayers.
35 Summary Asset Management is: A process for sustainable service delivery Assesses and manages risk financial and safety Supports good and informed decision making A team sport: Council, Financial staff, Planning staff and Operations staff. Part of everyone s day job not a special project It s a journey, not a destination Asset Management is a Mindset
36 Summary Good business practice Organized and integrated approach to managing infrastructure Supports better informed decision-making about services and assets Good financial planning Facilitates understanding among all stakeholders Council sets the course, staff steer the boat Accountability: Staff can demonstrate accountability to Council for policy compliance Council can demonstrate accountability to taxpayers Better information = Better decisions
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