Asset Management and Industry Solutions - A Municipal Perspective
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1 Asset Management and Industry Solutions - A Municipal Perspective Saidur Rahman, Ph.D., P. Eng. Senior Infrastructure Project Manager Town of Oakville
2 Highlights Municipal Infrastructure in Canada Scope of Asset Management and State-of-Art Review Asset Management Initiatives International Canadian Industry Standards and Practices Asset Management Implementation Asset Management Operational Effectiveness Prioritization Asset Specific Performance and Service Levels Conclusion 2
3 Municipal Assets in Canada Approx Municipalities in Canada 444 in Ontario Municipal infrastructure assets Worth $1.1 trillion, approx. 20% of total built asset of $5.5 trillion (NRC) Spending $15B /year Infrastructure report card (2012) 123 municipalities data Four categories: roads, drinking water, sanitary and storm water Five-level rating system Ranks between fair and very poor Total replacement cost $171.8B $ billion Infrastructure Backlog
4 Congestion Watermain breaks Dealing in Everyday Water loss, Inflow/Infiltration Pothole repair Sewer overflow Basement flooding Natural disasters Funding shortfall 4
5 Is Asset Management Functioning? Asset Management Plan Implementation PSAB Reporting Investment Decision Evaluation/Analysis Capital Projects and Forecasts Finance Prioritization Optimization Condition Inspection Operation and maintenance Problem Identification Policy and Strategy Condition Evaluation Options Review Resource Allocation Work Administration Engineering Levels of Service Performance Risk Data Collection Tools and Techniques WBS Budget Materials Labour Life Cycle Cost Service Life Schedule Preventive and Corrective Work Work Order Management 5
6 Where Do I Start? How Do I Start? 6
7 Asset Management Initiatives Australia and New Zealand: Institute of Public Works Engineering Australia (IPWEA) International Infrastructure Management Manual, 2006, 2011 Asset Management Quarterly International (AMQI) Commonwealth Scientific and Industrial Research Organization (CSIRO) Asset Management Council (AMC) Asset Management Body of Knowledge (AMBOK) 7
8 Asset Management Initiatives US initiatives: American Public Works Association (APWA) AMSA Managing for Public Infrastructure Assets AWWA Publications and reports Federal Facilities Council (FFC) - Investments in Federal Facilities AASHTO, TRB and FHWA (Federal Highway Administration) Asset Management Office: Primer on Asset Management, LCCA, GASB and Case Studies Transportation Asset Management Manual Software: LCCA, BMS and PMS etc. National Association of College and University Business Officers (NACUBO) Others: WIN, NASSCO (PACP and MACP), WERF and EPA 8
9 Canadian Initiatives Canadian initiatives: FCM (Federation of Canadian Municipalities) Green Municipal Funding (GMF) LAMP (Leadership in Asset Management Program) National Guide (IC, FCM, NRC) Canada wide network of $25.7 million budget Over 56 best practices in 7 target areas Infrastructure Canada Knowledge - Building, Outreach and Awareness (KOA) program Infrastructure Canada Program Canada Strategic Infrastructure Fund Building Canada Fund Infrastructure Ontario NRC - Municipal Infrastructure Investment Planning (MIIP) 10 municipalities consortium Evaluates tools and techniques for investment planning 15 best practices report 9
10 Canadian Initiatives Transportation Association of Canada (TAC) Primer on Highway Asset Management (1999) Bridge Management Guidelines (2004) Canadian Institute of Charted Accountants (CICA) Accounting and Reporting for Physical Assets by Governments (1990) Accounting for Infrastructure in the Public Sector (2003) Canada Mortgage and Housing Corporation (CMHC) Study reports on financial planning, alternative financing and municipal infrastructure Public Sector Accounting Board (PSAB) Tangible capital asset Reporting 2009 Canadian Standards Association (CSA) Municipal Infrastructure Data Standards (MIDS) Municipal Performance Measurement Program (MPMP) 10
11 Canadian Initiatives Ontario Municipal CAO s Benchmarking Initiative (OMBI) National Water and Wastewater Benchmarking Initiative (NWWBI) Municipal Infrastructure Management Systems (MIMS) Acts and Legislation (Federal, Provincial and Territorial) Asset Management BC Institute of Asset Management (IAM) Canada CNAM (Canadian Network of Asset Managers) 11
12 Asset Management Initiatives UK and Europe BSI (British Standards Institute) PAS (Publicly Available Specification) 55: 2008 Institute of Asset Management (IAM) Asset Management An Anatomy Competences Framework Certification and Diploma Program Global Forum on Maintenance and Asset Management (GFMAM) Asset Management Landscape 12
13 Industry Standards? BSI PAS 55:2008 o Standard for optimal management of physical assets o International benchmark o 28-point checklist in lifecycle planning and cost/risk/performance optimization o Developed with more than 6 years, by over 50 public and private organization o Applicable to all sectors and all asset types 13
14 IAM conceptual model: Six (6) facets 39 subjects Industry Standards 14
15 Industry Standards IAM conceptual model: Six (6) facets Strategy and Planning Asset Management Decision Making Lifecycle Delivery Asset Information Organization & People Risk & Review 39 subjects 15
16 How Aligned Is Your Organization? PAS 55 Specifications (BSI Standards) and ISO Standards: ISO Overview, Principles and Terminology ISO Asset Management, Management Systems Requirements ISO Management Systems, Guidelines for Application of Integrating Asset Management within organizational culture Communicate change Gain commitment Develop policy and procedures Assign roles and responsibilities Monitoring progress Asset Management Line-of-Sight [Source: ISO ] 16
17 AM Plan A Communication Tool Step 6 Step 1 to 3 Data oriented Step 4 to 5 Methodology and policy issues Step 6 Decision-making Step 4 Step 5 Decision making Step 2 Step 3 Calculations Models Protocols Step 1 Asset knowledge 17
18 AM Implementation Strategy NRC MIIP (Municipal Infrastructure Investment Planning) Project FAST Model How? Why? Optimize Investment Recommend Resources Integrate Needs Forecast Needs Rate Asset Inspect Assets Itemize Assets Select Protocols 122 tasks verified for Six facets 18
19 Asset Management Maturity 19
20 AM Operational Effectiveness Three levels Corporate Customer Asset Approaches Traditional Approach Asset oriented Operations and maintenance (O&M) based on age and condition Limited optimization for service delivery and improvements Serviceability Approach Customer oriented O&M based on Levels of Service (LOS) and risk Considers system capability Optimized with costs, risks and service delivery level (performance) 20
21 Asset Condition and Performance Assessment Methods Subjective grading Most common, based on visual inspection, in-situ measurements, or expert opinion A score that is consistent with the level of distress Rating systems 0 to 5, 1 to 3, 1 to 7, 1 to 10 and 1 to 100 etc. Accuracy depends on inspector s experience Distress based evaluation Distress diagnosis is primarily done by observations A predefined protocol Identify the most severe conditions affecting the performance Weighted factors or deduct values Automated systems Condition Service Life 21
22 Sewer Asset Condition Evaluation [Logic Based Data Collection WERF s SCRAPS] 22
23 Service Life of Assets Factor method (ISO :2000) Six contributing factors: A - Quality of components in construction B - Design level C - Construction quality D - Maintenance level E - Environmental conditions (internal and external) F - In-use conditions Remaining service life (RSL) = Asset design life x A x B x C x D x E x F Probabilistic method (Markov) 23
24 Resources and Options Infrastructure economics The Triple-Two Rule (CWF 2006) Pay-as-you-Go or Debt financing Taxation or User pay Public sector or Private sector AFP Value for Money Infrastructure Bank 24
25 Asset Prioritization BCI 50 AADT 10 CRV 15 Performance deficiency 5 Maintenance needs 5 Total Repair/rehab cost 5 Detour length 10 Total
26 Asset Prioritization Asset Replacement Cost (ARC): ARC = (CRV + 23% of CRV) x Urban Cost Factor 26
27 Performance in the Life Cycle Key Performance Indicators (KPI) Asset information Stakeholders Condition and risk Service quality Financial Regulatory Measured Indicators (Wastewater) Target Levels I peak day /I average day <5 Hydraulic capacity Basement flooding Surcharge Number of blockages Service interruptions 100km/year Number of complains (pollution, odour, contamination etc.) Response time Repair cost /year (last 5 years) >0.3 m <20/year 20/year 50/year <40 <10/year <3 hrs $$ 27
28 Performance Measures for Services Services Service Goals (Road Network) LOS Targets - Technical Accessible Affordable Cost of maintaining, repair and rehabilitating the road network Safety Reliability Cost Meets the needs of all users The road network is safe to use The road network is reliable and predictable Reduce operational and maintenance costs Community believes that the road system is sufficient to meet their needs without restrictions Signs, traffic signals and road markings comply with standards (MTO, MUTCD etc.) Number of accidents (pedestrian, cycle and vehicles/lane km) Average travel speed for various road classifications (x km/hr) Average maintenance cost per lane-km Average costs for safety enhancements/km Regulatory Comply with MMS Road patrols, pothole repair, winter maintenance etc. Customer Service Responsiveness Customer satisfaction ( number of complains and response time) 28
29 Concluding Remarks In Reality Significant gap in knowledge, support, funding and policy Variable asset life, adaptability and resiliency Infrastructure condition deteriorates with time Asset network is expensive and interconnected Inconsistencies in tools and techniques Organizational structure need to support Asset Management business Lack of investments and decisions based on short-term business interests not long-term risks Standards, codes and practice policies adopt changes in slow process Benefits of adopting ISO Standards Consistent approaches Mitigate risks Maintain State-of-Good Repair (SOGR) 29
30
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