How to Implement Asset Management
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1 How to Implement Asset Management Without Breaking the Bank Pat Miller, Director, Utility Services, Sun Peaks Utilities Co., Ltd. & Wade Turner, Community Infrastructure Consultant, Urban Systems Ltd. Additional Contributors: Rick Collins & Peter Coxon Urban Systems
2 The Reality is that Infrastructure is vital to our communities There is infrastructure nearing the end of its useful life You are faced with many difficult decisions regarding when and how to maintain, repair, improve and expand facilities/services There is not enough money to deal with the issues
3 Why do Asset Management? We have infrastructure that is deteriorating We have limited funds A current Asset Management Plan is required for infrastructure grant applications
4 Why do Asset Management? Building Canada Fund Small Communities Fund For the asset class that you are applying for: Do you have an asset inventory/registry complete? Up to date? Condition assessment? An asset management plan? If yes, is the plan linked to a long term financial plan? Gas Tax Strategic Priorities Fund Explain how this project fits into or is supported by an asset management planning process.
5 Key Questions What we own? What is it worth? Where is it? What is its condition? What renewal is needed now? What do we do to get it to last longer? How much will it cost and how will it be funded?
6 This image cannot currently be displayed. This image cannot currently be displayed. Asset Management at Sun Peaks
7 Developing the Asset Inventory Location (GIS) Attributes Installation date Historic cost Replacement cost Data management systems Start with the information that is readily available
8 Developing the Asset Inventory Water System 15.4 km of watermain 3 water treatment plants 98 Fire Hydrants Sewer System 19.1 km of sanitary main 1 sewage treatment plant 1 composting facility
9 Asset Management Look to Others City of Nanaimo s Goals 1. To provide levels of service that meet the needs of the community. 2. To provide an Asset Management process that is effective, achievable and efficient. 3. To enable the collection, coordination, sharing and communication of information. 4. To develop operating, maintenance and capital financial plans that support the defined level of service. 5. To manage the assets in a sustainable manner. Ref:
10 Asset Value What s the Value? Installed costs or replacement costs? What about land value?
11 Valuing Assets at Sun Peaks Water Utility How do we use the value of the Utility s Assets to build future reserves? How we do it using Asset Management?
12 Asset Management at Sun Peaks Asset Water Source - Wells Water Treatment Plants Water Facilities Summary (estimates only) Year Installed or Renewed Replacement Value Expected Remaining Life All System Infrastructure Deficit (Backlog) Average Annual Life Cycle Investment 1999 $ 3,490,550 34% $ 818,550 $ 181, $ 1,618,000 58% $ 130,000 $ 58,617 Reservoirs 1978 $ 4,688,500 59% $ 5,000 $ 99,520 Booster Stations 2004 $ 842,000 57% $ 50,000 $ 29,643 PRVs 2004 $ 210,000 73% $ - $ 6,400 Distribution Mains, Valves, Etc $ 7,823,873 69% $ 1,721,252 $ 182,896 Total $18, 672,923 $ 2,724,802 $ 558,968
13 Asset Management at Sun Peaks REPLACEMENT VALUE Booster Stations & PRVs 6% Hydrants & Standpipes 6% Water Meters & Sampling Stations 1% Wells & Water Treatment Plants 27% Water Mains, Services & Valves 35% Reservoirs 25%
14 Investment Plan Results Asset Category Gas System Replacement Value $2.4 million ENGINEERING/ Sanitary System $24.1 million Storm System $7.3 million Water System $22.4 million Total $56.2 million (Includes 20% contingency)
15 Next Steps for Sun Peaks Utilities Incorporate condition Plan for and replace failing infrastructure Incorporate the rest of our assets Communicate current state of Assets Revisit our financial planning
16 Opportunities for Small Communities Getting information on a map increases understanding Centralize and share the information Tracking asset condition helps refine program Scan, file and back up important historic records Refine and build information over time
17 Summary of Recommendations Get started Start with information you have and is readily available tools Create an inventory of what you own Take stock of immediate needs and risk of deferring the renewal Determine the replacement cost in current dollars Assess current infrastructure spending Get staff, management and leaders on board
18 Yes, you can implement Asset Management without breaking the bank Thank you Enjoy the conference! Pat Miller Director, Utility Services Sun Peaks Utilities Co., Ltd. Wade Turner Community Infrastructure Consultant Urban Systems Ltd.
19 Utility Tours are free! For more information, visit us at
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21 Asset Management Resources
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