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CAPITAL ASSET MANAGEMENT
 

CAPITAL ASSET MANAGEMENT

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    CAPITAL ASSET MANAGEMENT CAPITAL ASSET MANAGEMENT Presentation Transcript

    • MMAH Southwestern Regional Conference November 19, 2004 Fiscal Leadership CAPITAL ASSET MANAGEMENT Reg Andres, P.Eng. R.V. Anderson Associates Limited
    • 1. Current challenges in Fiscal Leadership managing municipal infrastructure CAPITAL ASSET 2. Infrastructure management – a current perspective MANAGEMENT 3. Sustainable asset management - what is it? 4. AM framework / process - Capital Asset Management Plan (benefits, components) - Do you know where you are on the AM scale?
    • FINANCIAL CHALLENGES The life of municipal officials, decision-makers and staff has become a complex world in the context of managing municipal infrastructure impacted by a long list of “drivers” challenging day-to-day and long term decisions, including: Growth Regulations Deterioration Public Expectations Quality of Stewardship Revenue Shortfalls Budget Demands Amalgamation Quality of Service Technology Advances
    • FINANCIAL CHALLENGES Municipal infrastructure managers have become managers of “change” …but change from what into what, and why and how? More money – how much? * The challenge from a financial perspective is to be able to identify the demand for more investment in capital works - how much, and when and where? This is needed to make a business case on which sound decisions can be made.
    • FINANCIAL CHALLENGES Municipal infrastructure managers have become managers of “change” …but change from what into what, and why and how? Corporate Culture * The need to change historical “low expenditure” practices if the amount of spending has been below levels needed to sustain facilities. This is not easy to do – especially with political changes every 3 years
    • Infrastructure Management How is the process managed today? Set tax and rates based revenue to identify how much money is Revenue available to invest (Rates, taxes) Identify and approve capital Approved projects that are needed to Projects maintain infrastructure Capital Works Program Prepare annual Capital Works Program based on projects that can be completed within available revenues
    • CURRENT INFRASTRUCTURE MANAGEMENT …from the perspective of a municipal organization Organization Managing Decisions Practices Capital Works Budget • Financial allocations Finance Corporate Revenue Services (Rates, taxes) Council Approved Decision Projects Planning Capital Works Program Capital Works Plan • Prioritize projects list Engineering Public Works Growth Regulations Deterioration Drivers
    • Infrastructure Asset Management Management Public demand for fiscal accountability and transparency of decisions and the physical deterioration of the infrastructure has resulted in a need to change the process of managing infrastructure This change is captured in the concept of “SUSTAINABILITY” Infrastructure Management is now referred to as Asset Management – we need to understand the difference! Asset Management 101 – a Short Course
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT It is about managing What is municipal infrastructure infrastructure systems with respect to: management? • customer needs - reliability, quality … • financial needs - capital, operations … • operational needs - state of repair … • maintenance program - proactive … … we have been doing this since the concept of “public” infrastructure systems was first introduced. It is not new, but it is evolving.
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT What about Sustainability adds a new sustainability? dimension to the business of managing infrastructure … the dimension of TIME
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT Therefore, it is also about: PLANNING & • understanding system PLANNING & DEVELOPMENT DEVELOPMENT assets and the long-term, investment needs of the RENEWAL & RENEWAL & REHABILITATION REHABILITATION DESIGN & DESIGN & CONSTRUCTION CONSTRUCTION infrastructure (life-cycle assessment) OPERATIONS & OPERATIONS & MAINTENANCE MAINTENANCE • managing the assets to Life cycle assessment protect the investment made constructing it in the first place
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT 1. Consider all components of system infrastructure as assets (i.e. they have value) 3 principles for 2. Consider assets to end of their useful life sustainability 3. Integrate technical and financial decision-making Financial Technical
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT 1. What do we have? 2. What is it worth? How do you 3. What condition is it in? implement? 4. What do we need to do to it? … answer 6 5. When do we need to do simple questions it? 6. How much money do we need?
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT 1. What do we have? 2. What is it worth? The result of answering these 3. What condition is it in? questions is a 4. What do we need to do “sustainability to it? model” 5. When do we need to do - a tool to assist in strategic management it? decisions to sustain 6. How much money do we infrastructure need?
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT 1. What do we have? Using the 2. What is it worth? example of a 3. What condition is it in? municipal water 4. What do we need to do system, this is demonstrated to to it? be a fairly straight- 5. When do we need to do forward exercise it? 6. How much money do we need?
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT Water supply assets: 1. What do we have? • pipe distribution system (including valves, hydrants, etc) 2. What is it worth? VALUE: $ per km (mile)
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT Water supply assets: 1. What do we have? • pipe distribution system 2. What is it worth? • system storage facilities VALUE: $ per m3 (gal.)
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT Water supply assets: 1. What do we have? 2. What is it worth? • pipe distribution system • system storage facilities • booster stations VALUE: $ per lps (gpm)
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT Water supply assets: 1. What do we have? 2. What is it worth? • pipe distribution system • system storage facilities • booster stations • water treatment plants VALUE: $ per m3/d (gpd)
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT In the absence of any other data age can be an indicator for condition 3. What condition is it in? Age Profile of Buried Water Infrastructure (Based on Ontario Population Growth Profile) 18.0% 16.0% 14.0% (of total infrastructure) 12.0% Percent 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 10 20 30 40 50 60 70 80 90 100 +100 Age of Infrastructure (years)
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT Actual field information is used in 3. What condition conjunction with a condition rating is it in? system 5 Condition Rating 4 3 2 1 0 0 10 20 30 40 50 60 70 80 90 100 Age (years)
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT Replace One time event 4. What needs to PLANNING & PLANNING & DEVELOPMENT DEVELOPMENT be done ? Build Initial RENEWAL & DESIGN & event RENEWAL & DESIGN & 5. When is it REHABILITATION REHABILITATION CONSTRUCTION CONSTRUCTION needed? One time event Rehabilitate OPERATIONS & OPERATIONS & MAINTENANCE MAINTENANCE Annual Event Maintain
    • SUSTAINABLE Asset Management 101 ASSET … a short course MANAGEMENT 6. How much money ? $175.0 COSTS PER DECADE (billion $) O&M $150.0 Capital $125.0 $100.0 $75.0 $50.0 $25.0 $0.0 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 - 2009 - 2019 - 2029 - 2039 - 2049 - 2059 - 2069 - 2079 - 2089 - 2099 DECADE
    • Life-cycle Cost Profile – Analysis Infrastructure System - SUSTAINABILITY MODEL REHABILITATION, REPLACEMENT & OPERATIONS $1,400,000,000 Average annual full cost budget Operating required to sustain water service Rehabilitation $1,200,000,000 Replacement COSTS PER DECADE $1,000,000,000 $800,000,000 Investment $600,000,000 Gap $400,000,000 $200,000,000 Existing annual budget (investment) $0 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 DECADE
    • Sustainable Asset Management How is the process changed? Identify “sustainable” revenue needs based on Cost of Service Report Sustainable Revenue Identify and approve capital Approved program needed to sustain Programs infrastructure Capital Works Program Prepare annual Capital Works Program based on programmed projects required for sustainability
    • A new approach …for accountability and transparency SUSTAINABLE ASSET MANAGEMENT Consider infrastructure as assets – they have Introduce new value principles for sustainability Consider full life expectancy of assets Integrate financial and technical assessments and management between asset groups PLANNING & PLANNING & DEVELOPMENT DEVELOPMENT This requires a RENEWAL & RENEWAL & REHABILITATION REHABILITATION DESIGN & DESIGN & CONSTRUCTION CONSTRUCTION change in the way infrastructure is managed … OPERATIONS & OPERATIONS & MAINTENANCE MAINTENANCE
    • A new approach …for accountability and transparency SUSTAINABLE ASSET MANAGEMENT Consider infrastructure as assets – they have Introduce 3 value principles for sustainability Consider full life expectancy of assets Integrate financial and technical assessments Organization Managing Decisions Practices Capital Works Budget Corporate • Financial Plans (Bill 175) Services Sustainable Revenue Finance Council Approved Decision Programs Planning Capital Works Program Engineering Capital Works Plan Public • Infrastructure Plan Works Growth Regulations Deterioration
    • Sustainable Asset Why? Management Hawkes Bay, New Zealand Example 500 km road network and drainage system – a 10 year intensive asset Sustainable management programmed approach Revenue demonstrated the following results: Approved • an improved asset costing significantly Programs less to maintain Capital Works • reactive repairs reduction from ~$1.2 Program million to ~$0.2 million annually • total expenditure reduction of 25% with improved asset condition
    • Asset Management Program A process of change … from current management practices … to sustainable management practices
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES AM Program Includes INFRASTRUCTURE MANAGEMENT Capital Construction, O&M, Technology Implementation • Planning / Master Plans / Needs Studies • Organizational reviews (about structure and capacity) • Preliminary Engineering Studies • Operational reviews (quality of operations, accountability) • Detailed Design • Information technology plans • Construction Administration and Inspection • Technology acquisition and implementation (MMS, GIS)
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 Capital Works Budget • Financial allocations Revenue (Rates, taxes) Council Approved Decision Projects Capital Works Program Capital Works Plan • Prioritize projects list Growth Regulations Deterioration
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 Capital Works Budget • Financial allocations Revenue (Rates, taxes) Council Approved Decision Projects Capital Works Program Capital Works Plan • Prioritize projects list Growth Regulations Deterioration
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 Capital Works Budget • Financial allocations Revenue (Rates, taxes) Council Approved Decision Projects Capital Works Program Capital Works Plan • Prioritize projects list Growth Regulations Deterioration
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 Capital Works Budget • Financial allocations Revenue (Rates, taxes) Council Approved Decision Projects Capital Works Program Capital Works Plan • Prioritize projects list Growth Regulations Deterioration
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 “point source” Asset activities Management vs Activities “enterprise” solutions
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 Organization and • Review departmental activities ASSET MANAGEMENT Operational Review • Staff levels PROGRAM • Business process analysis and workflow ACTIVITIES • Benchmarking • Systems and data (information and tools) Capital Construction, O&M, Technology Implementation
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 Organization / Operations • Functional scope and program inventory ADDITIONAL CONSULTING Compliance Review • Gap analysis and benchmark assessment SERVICES • Current practices and procedures FOR • Regulatory requirements ASSET MANAGEMENT • Corrective program and related costs PROGRAM Capital Construction, O&M, Technology Implementation
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 • Review existing business systems and data Organization Review ADDITIONAL • Business drivers and requirements Compliance Review CONSULTING SERVICES • Develop strategies and architectures FOR Technology Planning ASSET • Recommend new systems and data bases MANAGEMENT (MMS/ RIVA/ others) PROGRAM • Organizational impact and change management • Business case and implementation plan Capital Construction, O&M, Technology Implementation
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 • System inventory Organization Review ADDITIONAL • Asset valuation Compliance Review CONSULTING SERVICES Technology Planning • Condition assessment FOR ASSET Cost of Sustainable • Life cycle cost profiles MANAGEMENT Service PROGRAM Capital Construction, O&M, Technology Implementation
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 • understand functionality of systems Organization Review ADDITIONAL • Identify pressures (growth, regulation, Compliance Review CONSULTING deterioration) SERVICES Technology Planning FOR • Identify capacity of systems / organizations Cost of Sustainable Service ASSET MANAGEMENT • Gap analysis PROGRAM Awareness Session • Problem definition (system wide /systemic) • Recognition of need for change action plan Capital Construction, O&M, Technology Implementation
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 • Review existing practices, funding, Organization Review ADDITIONAL resource allocations Compliance Review CONSULTING • Confirm appropriate service levels and SERVICES Technology Planning legislative requirements FOR Cost of Sustainable Service ASSET • Gap analysis MANAGEMENT Awareness Session PROGRAM • Report (rate) performance of municipality with recommended improvement actions Report Card (Varies from 5 - 100 days) Capital Construction, O&M, Technology Implementation
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 • Linked to capital / O&M programs but Organization Review ADDITIONAL builds in life-cycle concepts Compliance Review CONSULTING • Review existing system performance SERVICES Technology Planning FOR • Deterioration curves Cost of Sustainable Service ASSET MANAGEMENT • Performance assessment PROGRAM Awareness Session • Short term and long term solutions / Report Card recommendations Renewal Plans Capital Construction, O&M, Technology Implementation
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 55 Asset Management Asset Management Strategic Plan Strategic Plan 1. Planning – scope, life cycle, funding Developing an requirements, performance measures Asset 2. Design and build the framework – Management practices, standards, processes, tools Strategy / 3. Implementation – manage infrastructure Plan (3 parts) through capital and O&M activities
    • ASSET MANAGEMENT PROGRAM – Developing Strategy 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 55 • Asset Inventory / Valuation THE PLAN THE PLAN • Asset Descriptions / Condition Asset Management • Future Demand Asset Management Strategy • Life-Cycle Plan(s) Strategy • Levels of Service / Standards --elements of elements of • Performance Measurement the plan… the plan… • AM Practices – best practices • Technology / software • AM organization • AM funding strategy and budget
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 5 6 Asset Management Asset Management Strategic Plan Strategic Plan Capital Works Budget • Financial Plan (Bill 175) Sustainable Revenue Council Approved Decision Programs Capital Works Program Capital Works Plan • Infrastructure Plan Growth Regulations Deterioration Capital Construction, O&M, Technology Implementation
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 5 6 7 Asset Management Asset Management Strategic Plan Strategic Plan Capital Works Budget • Financial Plan (Bill 175) Sustainable Revenue Council Approved Decision Programs Capital Works Program Capital Works Plan • Infrastructure Plan Growth Regulations Deterioration Capital Construction, O&M, Technology Implementation
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 5 6 7 8 Asset Management Asset Management Strategic Plan Strategic Plan Capital Works Budget • Financial Plan (Bill 175) Sustainable Revenue Council Approved Decision Programs Capital Works Program Capital Works Plan • Infrastructure Plan Growth Regulations Deterioration
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 5 6 7 8 9 Asset Management Asset Management Strategic Plan Strategic Plan Capital Works Budget • Financial Plan (Bill 175) Sustainable Revenue Council Approved Decision Programs Capital Works Program Capital Works Plan • Infrastructure Plan Growth Regulations Deterioration
    • ASSET MANAGEMENT PROGRAM 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES DECISION-MAKING PROCESSES 1 2 3 4 5 6 7 8 9 10 Asset Management Asset Management Strategic Plan Strategic Plan Capital Works Budget • Financial Plan (Bill 175) Sustainable Revenue Council Approved Decision Programs Capital Works Program Capital Works Plan • Infrastructure Plan Growth Regulations Deterioration
    • ASSET MANAGEMENT PROGRAM – PLAN COMPONENTS 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES 1 2 3 4 5 6 7 8 9 10 ASSET MANAGEMENT • Asset Inventory / Valuation PROGRAM • Asset Descriptions / Condition COMPONENTS AND • Future Demand ACTIVITIES • Life-Cycle Plan(s) • Levels of Service / Standards • AM Practices – best practices • Technology / software • AM organization • AM funding strategy and budget
    • ASSET MANAGEMENT PROGRAM – ACTIVITIES 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES • Decide what information is • Asset Inventory Asset Asset needed Management Management / Valuation Strategic Plan • Asset Descriptions / Condition Strategic Plan Implementation • Data collection / field surveys Implementation • Future Demand • Life-Cycle Plan(s) • GPS, CCTV, … • Levels of Service / Standards •AM Practices – best practices • Client data systems reviews • Technology / software • AM organization • Replacement valuation • AM funding strategy and budget • other
    • ASSET MANAGEMENT PROGRAM – ACTIVITIES 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES • Condition rating system(s) • Asset Inventory / Valuation Asset Asset Management • Asset Descriptions • Client data / infrastructure Management Strategic Plan Strategic Plan / Condition systems reviews Implementation Implementation • Future Demand • Life-Cycle Plan(s) • Data base development • Levels of Service / Standards •AM Practices – best practices • other • Technology / software • AM organization • AM funding strategy and budget
    • ASSET MANAGEMENT PROGRAM – ACTIVITIES 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES • Deterioration curve Asset Asset • Asset Inventory / Valuation development Management Management • Asset Descriptions / Condition Strategic Plan Strategic Plan Implementation • Future Demand • Demand management plan Implementation • Life-Cycle Plan(s) (conservation) • Levels of Service / Standards • AM Practices – best practices • Data base development • Technology / software • AM organization • Capacity assessments / • AM funding strategy and budget modelling • other
    • ASSET MANAGEMENT PROGRAM – ACTIVITIES 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES • Physical conditions Asset Asset • Asset Inventory / Valuation Management Management • Asset Descriptions / Condition • Capacity performance Strategic Plan Strategic Plan • Future Demand Implementation Implementation • Life-Cycle Plan(s) • Asset condition • Levels of Service / Standards • Asset Valuation • AM Practices – best practices • Technology / software • Maintenance Plan • AM organization • AM funding strategy and budget • Renewal Plans • Disposal Plan • Financial Plan
    • ASSET MANAGEMENT PROGRAM – ACTIVITIES 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES • Customer expectations • Asset Inventory / Valuation Asset Asset Management • Asset Descriptions / Condition • Corporate goals Management Strategic Plan • Future Demand Strategic Plan Implementation Implementation • Life-Cycle Plan(s) • Legislative requirements • Levels of Service / Standards • Current level of service • AM Practices – best practices • Technology / software • Desired level of service • AM organization • AM funding strategy and budget • Gap analysis • recommendations for improvement
    • ASSET MANAGEMENT PROGRAM – ACTIVITIES 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES • review existing practices • Asset Inventory / Valuation Asset Asset Management • Asset Descriptions / Condition • research best practices Management Strategic Plan • Future Demand Strategic Plan Implementation Implementation • Life-Cycle Plan(s) • compare and assess municipal • Levels of Service / Standards practices • AM Practices – best practices • recommend improvement plan • Technology / software • AM organization • other • AM funding strategy and budget
    • ASSET MANAGEMENT PROGRAM – ACTIVITIES 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES • Review corporate systems and Asset Asset • Asset Inventory / Valuation information management needs Management Management • Asset Descriptions / Condition Strategic Plan Strategic Plan Implementation • Future Demand • Develop IT architecture plan Implementation • Life-Cycle Plan(s) • Levels of Service / Standards • Implement technology • AM Practices – best practices improvements • Technology / software • AM organization - Maintenance Management • AM funding strategy and budget Systems (MMS – Hansen, etc) - AM Strategic Planning software (RIVA, Harfan, RECAPP, …) - GIS
    • ASSET MANAGEMENT PROGRAM – ACTIVITIES 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES • Organizational review Asset Asset • Asset Inventory / Valuation Management Management • Asset Descriptions / Condition • Strategies for implementing Strategic Plan Strategic Plan Implementation • Future Demand corporate AM goals Implementation • Life-Cycle Plan(s) • Levels of Service / Standards • other • AM Practices – best practices • Technology / software • AM organization • AM funding strategy and budget
    • ASSET MANAGEMENT PROGRAM – ACTIVITIES 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES • Financial projections • Asset Inventory / Valuation Asset Asset Management • Asset Descriptions / Condition • Funding strategy Management Strategic Plan • Future Demand Strategic Plan Implementation Implementation • Life-Cycle Plan(s) • Valuation forecasts • Levels of Service / Standards • AM Practices – best practices • Financial Plan – revenues • Technology / software (rates) / expenditures • AM organization • AM funding strategy • other and budget
    • Where are you in the process? 2000 1 2 3 4 5 6 7 8 9 10 Current Change Management Sustainable Management Management ASSET EDUCATION DEVELOP AM IMPLEMENT TOOLS MANAGEMENT Decision-makers and PROGRAM infrastructure managers STRATEGIC PLAN & TECHNIQUES CLIENT STATUS w.r.t. Current Recognizes AM issues Plan Implementation SUSTAINABLE AM mode (Design and build solutions) At this point municipality has part or all of an AM Strategy WHERE IS YOUR MUNICIPALITY Identify where you are and the activities IN THE PROCESS? needed to proceed down the road to sustainability!
    • Fiscal Leadership CAPITAL ASSET Questions and MANAGEMENT Answers The End Beginning