Program Capital Budget ROAD / FACILITIES Program Capital Budget WATER / SEWER Applications, Databases MANAGEMENT SYSTEMS Prepare Capital Budget FINANCIAL SYSTEMS Project Manager - Surface Infrastructure Project Manager - Subsurface Infrastructure Project Manager - Infrastructure Management Systems Senior Project Manager - Infrastructure Programming Asset Management Project Analysts Manager Asset Management The Asset Management Team
The Role of Asset Management
We Do Not Operate, Maintain or Construct Anything
We Develop and Program Capital Projects
We Co-Ordinate Surface and Sub-Surface Needs
We Supply Life Cycle and Financial Analysis
We Try to Get the Most Asset for the Least Money
What do you have?
What is it worth?
What condition is it in?
What do we need to do to it?
When do we need to do it?
How much money do we need?
How do we achieve sustainability?
Sustainable Asset Management What do we have? What is it worth? What Condition is it in? What do we need to do to it? When do we need to do it? How much money do we need? How do we achieve sustainability? Levy Rates Roads/Bridges Waste Parks Forestry Facilities Central Fleet Transit Fleet Water Wastewater Storm
R.O.W – Integration & Coordination
High level of interaction between infrastructure networks
Coordination of rehabilitation/replacement activities
Strategically Optimize spending
Integration of Road, Sewer & Water Condition Ratings
A truly integrated approach will encompass all infrastructure types along with their associated risks, funding mechanisms and regulatory requirements.
Since the lifecycles for different asset types are dissimilar - individual asset groups will be faced with pressures at varying times in the Municipalities (decades)
True Co-Ordination = Integration of individual infrastructure condition ratings into a single right-of-way segment rating
Street right-of-way model concept developed with automated links assigned through GIS
Life Cycle Analysis
GIS Used To Integrate Data
Street Centreline Graphic was Starting Point
Created ROW Tables for Each Asset Type
Created Data Model With Resultant Tables
Socio - Economic Factors
Criteria Assessment alone is not enough
Budget Constraints Control Decision Process
Hospitals, Schools, Have Higher Priority
Land Use Data Evaluated and Added to Model
Socio-Economic Impact added to Project Decision
Integrated Decision Support System Capital Priority List
Co-ordination of Works
Integrated condition rating
Rehab & Replace
Prioritized Sewer Program Forecasting Model - Lifecycle Analysis $$ Funding Levels External Factors Optimized Capital Works Program Prioritized Water Program Prioritized Road Program Prioritized Bridge Program
STATE OF THE INFRASTRUCTURE REPORT
– PHASE 1
Began in early 2005
Public Works Department Assets
Department Management Team
Corporate Management Team
2006 – 2015 Capital Budget - Council
Objective of the Report
it is a financial plan
long-term & strategic
the basis of a communication tool
not a budget
not project specific
What it is What it is not It identifies trends and issues. Not solutions
Asset Groups Reviewed
Roads / Bridges
Parks and Open Space
Infraguide Best Practices
Asset Management Manual (NZ / AUS)
Based upon ASCE State of the Infrastructure Reports
Condition & Performance
Capacity vs. Need
Funding vs. Need
Assigns a letter Grade A thru’ F
Other Notable Points
Investment requirements were derived by adding allowances for:
Growth (0.5% per annum)
Overhead & Admin (10%)
Cost Allocations ($10 million over water, sanitary & roads)
Cost of borrowing - 50% of the total annual capital expenditure.
Operating investments - 2.5% of the total replacement value or current operating budget.
All values are calculated in current dollars (2005).
A SSET G ROUP R ATING 2005 C OMMENTS T REND 2020 Water B Wastewater B Water and wastewater are moving towards sustainable funding. Therefore, the assets are being maintained at an appropriate level of service. However in both asset categories there are significant increases in asset replacement/rehabilitation required over the next 20 years as a result of the aging of the underground inventory. Roads D A significant backlog exists in the road infrastructure and the assets continue to deteriorate. This backlog needs to be addressed to avoid a further slide in asset condition. Storm water C A long-range plan is currently being prepared for stormwater management. An asset management plan needs to be completed and its costs assessed in terms of impact on the water and sewer revenues, since this function was transferred to the rate program with little (if any) additional funding. Waste Management B - Many new facilities are being built and new programs being implemented over the next few years. Other facilities are older and will require attention. The challenge will be to immediately implement sustainable management practices in all areas, including funding for future replacement. Facilities C Many facilities are at the end of their useful lives, and the funding for maintenance and replacement is not at a sustainable level. This will have a negative impact on service levels if not addressed in the short term. Transit B Currently sustainable, but subject to the vagaries of senior levels of government for funding. System expansion will be a significant challenge in the future. Fleet C Cost recoverable operation as a result of a chargeback system for fleet services. Significant replacement backlog exists, which negatively impact operating costs.
Asset Management Planning Process
Not Project based, but Service based
Not fixed-term, but Life-Cycle based
1 to 3 Years Detailed Operating and Capital Budget OPERATIONAL PLANNING TACTICAL PLANNING 3 to 20 Years Budget Forecast STRATEGIC PLANNING Sustainable Asset Management Life Cycle 25 – 100
Total Value = $68,800 Asset Replacement Value (per 50’ frontage) Fleet - $775 Roads - $23,400 Solid Waste - $690 Public Buildings - $4,600 Water - $13,500 Sanitary & Combined - $13,600 Storm - $6,250 Parks & Open Spaces – $1,600 Transit – $950 Fleet $600 Roads $23,700 Solid Waste $1,700 Public Buildings $4,600 Water $13,300 Sanitary & Combined $13,600 Storm $8,500 Parks & Open Space $1,600 Transi t $1,200
Household Daily Cost 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 Transit (*excluding user fees) Newspaper Milk Bread Coffee Cable TV Internet Cell phone Gas (One Car Only) Electricity Water Wastewater Storm Roads Waste Mgt Facilities Fleet Sustainable Daily Cost per Household Current Daily Cost per Household
Review other assets in detail
Identify optimal O & M expenditure
Review O & M activities on a Business Case basis
Review ROI of rehabilitation alternatives
Review Capital debt financing
Additional funding identified to include staff, O & M and Capital
Develop and implement a plan to ensure community engagement
Develop plan to reach Sustainability
Continue to Adapt Our Processes and Programs
Develop Risk Assessment Data Models
Implement an Integrated Decision Support System
Integrated CIP – Return on Investment (GFOA)
State of the Infrastructure Report (Phase II)
SUSTAINABLE INFRASTRUCTURE = SUSTAINABLE COMMUNITIES “ MANAGE DEFICIT DO NOT CREATE ANOTHER ONE”
Gerry Davis, CMA Director of Capital Planning and Implementation Public Works Department [email_address] www.myhamilton.ca 905.546.2424 x4621 fax 905.546.4435