Catt May 2006 Vanier

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Outline of the Municipal Infrastructure Investment Planning project (MIIP)

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  • Welcome to the BSI Seminar on “Sustainable Infrastructure: techniques, tools and Guidelines”. I am Dana Vanier and I am the Technical Coordinator for the 2006 series. NRC has held these Lectures for 30 years, visiting 15 cities and hosting approximately 1000 people each year. It is our opportunity to meet with practitioners across Canada, to present the results of our research, and to listen to your concerns related to research issues about construction and infrastructure. Hopefully, at the end of the day we can all leave understanding each others’ capabilities and identify opportunities for collaboration or future research.
  • Catt May 2006 Vanier

    1. 1. Municipal Infrastructure Investment Planning Project (MIIP) Niagara Falls May 30, 2007 Dana Vanier National Research Council
    2. 2. Outline <ul><li>Background </li></ul><ul><li>Municipal Infrastructure Investment Planning Project (MIIP) </li></ul><ul><li>Deliverables </li></ul><ul><li>Public Sector Accounting Board </li></ul><ul><li>MIIP Phase II </li></ul><ul><li>Conclusions </li></ul>
    3. 3. Problem Statement: Managing Canada’s Aging Infrastructure <ul><li>Aging Infrastructure (and growth in some municipalities) </li></ul><ul><li>Limited Funding for Maintenance and Rehabilitation </li></ul><ul><li>Downloading to junior levels of government </li></ul><ul><ul><li>Municipalities run the Canadian Economy and own most of the Assets </li></ul></ul><ul><li>Small & medium municipalities need more help than larger </li></ul><ul><li>Lack of standards / guidelines for municipalities (performance indicators) </li></ul><ul><li>Little leadership at senior levels of government </li></ul>
    4. 4. Problem Statement: Managing Canada’s Aging Infrastructure Aging Infrastructure Decreased Capacity Health & safety concerns Economic & social impacts Increasing Demand Climate Change Inadequate Funding Ineffective Management
    5. 5. Asset Management 101 <ul><li>Definition from MIIP </li></ul><ul><li>Asset management is a business process and decision- </li></ul><ul><li>support framework that: </li></ul><ul><li>covers the extended service life of an asset ; </li></ul><ul><li>draws from engineering as well as economics, and </li></ul><ul><li>considers a diverse range of assets . </li></ul><ul><li>6 Whats (answer these and you are an asset manager) </li></ul><ul><ul><li>What do you OWN? </li></ul></ul><ul><ul><li>What is it WORTH? </li></ul></ul><ul><ul><li>What is the DEPRECIATION? What is DEFERRED? </li></ul></ul><ul><ul><li>What is the CONDITION? </li></ul></ul><ul><ul><li>What is the SERVICE LIFE? </li></ul></ul><ul><ul><li>What do you FIX FIRST? </li></ul></ul><ul><li>We have been doing it for thousands of years! </li></ul><ul><li>Now, do it: </li></ul><ul><ul><li>EQUITABLY, OBJECTIVELY AND REPEATEDLY </li></ul></ul>
    6. 6. BACKGROUND: What do you OWN? City of Edmonton
    7. 7. BACKGROUND: What do you OWN? City of Hamilton
    8. 8. BACKGROUND: What is it WORTH? $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 1960 1965 1970 1975 1980 1985 1990 1995 2000 $trillion Buildings Engineering Works Total Current $CDN Residential Public Infrastructure 20% of business sector Statistics Canada Total Constant $CDN 25 years old
    9. 9. BACKGROUND: What is the DEPRECIATION? Bridges: TAC $10 Billion ?? Roads: TAC $17.4 Billion ?? Water mains: FCM $10 Billion ?? Universities: CAUBO $ 3.6 Billion (10%) National Defence: $1.7 Billion (10%) All Civil Assets: ?? McGill $125 B. Wastewater: ????
    10. 10. BACKGROUND: What is the CONDITION? City of Edmonton
    11. 11. BACKGROUND: What is the CONDITION? City of Hamilton
    12. 12. BACKGROUND: What is the SERVICE LIFE? City of Edmonton
    13. 13. BACKGROUND: What do you FIX FIRST? Based on “Confidence Vote” for each 6 Whats (from MIIP Survey) HIGH LOW
    14. 14. MIIP Overview and Deliverables <ul><li>Municipal Infrastructure Investment Planning (MIIP) </li></ul><ul><li>Four-year joint research project with 10 Canadian cities, regional municipalities, DND and NRC </li></ul><ul><li>Approx. $1 million in cash contributions </li></ul><ul><li>Published client reports are available publicly on Web </li></ul><ul><ul><li>Provided by the MIIP Steering Committee </li></ul></ul><ul><ul><li>irc.nrc-cnrc.gc.ca/ui/bu/miip_e.html </li></ul></ul><ul><li>Partners: </li></ul><ul><ul><li>Region of Durham, Region of Halton, City of Hamilton, Region of Niagara and others. </li></ul></ul>
    15. 15. MIIP Overview and Deliverables <ul><li>Survey on Municipal Infrastructure Assets (B5123.2) </li></ul><ul><li>Primer on Municipal Infrastructure Asset Management (B5123.3) </li></ul><ul><li>Geographic Information Systems (GIS) and Interoperability of Software for Municipal Infrastructure Applications (B5123.4) </li></ul><ul><li>Case Studies on Municipal Infrastructure Investment Planning (B5123.5) </li></ul><ul><li>Evaluation of Condition Assessment Protocols for Sewer Management (B5123.6) </li></ul>
    16. 16. MIIP Overview and Deliverables <ul><li>A Framework for Municipal Infrastructure Management for Canadian Municipalities (B5123.7) </li></ul><ul><li>Social Cost Considerations for Municipal Infrastructure Management (B5123.8) </li></ul><ul><li>The State of Canadian Sewers – Analysis of Asset Inventory and Condition (B5123.11) </li></ul><ul><li>Open Forum on Opportunities for Research in Asset Management in Canada, (B5123.12) </li></ul><ul><li>Strategic and Sustainable Asset Management – Integrator (SSAM-I) Users Manual (B5123.13) – in Press </li></ul><ul><li>Details of a Framework for Municipal Infrastructure Management for Canadian Municipalities (B5123.14) in Press </li></ul>
    17. 17. Survey on Municipal Infrastructure Assets (B5123.2)
    18. 18. Survey on Municipal Infrastructure Assets (B5123.2)
    19. 19. Primer on Municipal Infrastructure Asset Management (B5123.3) <ul><li>Scope of Asset Management for Municipal Infrastructure </li></ul><ul><li>Related International and National Activities in Asset Management </li></ul><ul><li>Relationship between Asset Management and Information Technologies </li></ul><ul><li>An Asset Management Implementation Strategy for Municipalities: The Six “Whats” </li></ul><ul><li>Asset Management Implementation Plan </li></ul>
    20. 20. GIS and Interoperability of Software for Municipal Infrastructure Applications (B5123.4) <ul><li>First part on Geo-spatial Technologies and Research </li></ul><ul><li>Second part on Interoperability of GIS in AM </li></ul><ul><li>Summary of Research </li></ul><ul><ul><li>Robust 3D capability is required that meets engineering requirements </li></ul></ul><ul><ul><li>Time dimension is necessary to save versions of data during a project’s conceptual phases </li></ul></ul><ul><ul><li>GIS does not address temporal variations </li></ul></ul><ul><ul><li>Object orientation modeling is required to represent complex hierarchical structures and attribute inheritance typical of municipal assets </li></ul></ul>
    21. 21. Case Studies on Municipal Infrastructure Investment Planning (B5123.5) <ul><li>Developing a Strategic Asset Management Plan for the Region of Durham’s Pumping Stations: A Workable Approach </li></ul><ul><li>Pilot Implementations of an Integrated Decision Support System for Infrastructure (City of Hamilton and DND) </li></ul><ul><li>Utilization of Closed Circuit Television Inspection (CCTV) for Wastewater (Region of Halton) </li></ul><ul><li>Halton Region Facility Condition Assessments and Audits for Capital </li></ul><ul><li>Asset Accounting (City of Edmonton) </li></ul>
    22. 22. Evaluation of Condition Assessment Protocols for Sewer Management (B5123.6) <ul><li>Condition Assessment for Sewers </li></ul><ul><li>Existing Condition Assessment Protocols and Guideline </li></ul><ul><ul><li>WRc, NRC, Edmonton, Winnipeg, NAAPI, NASSCO </li></ul></ul><ul><li>Comparison and Discussion of Protocols </li></ul><ul><li>Discussion </li></ul>
    23. 23. Evaluation of Condition Assessment Protocols for Sewer Management (B5123.6)
    24. 24. A Framework for Municipal Infrastructure Management for Canadian Municipalities (B5123.7) Inventory Performance Service Life Life Cycle Cost Criticality Alternatives optimize investment integrate needs forecast needs rate assets inspect assets itemize assets select protocols recommend resources
    25. 25. A Framework for Municipal Infrastructure Management for Canadian Municipalities (B5123.7) Performance Inventory Systems Facets Processes Select Protocols Itemize Assets Integrate Needs Inspect Assets Rate Assets Forecast Needs Recommend Resources Optimize Investment Review/Update Protocols Select IT Framework Select Facets Select Data Quality Select Asset Classes Select Inventory Protocols Select Asset Attributes Select Inventory System Select Benchmark Protocol Identify Client Needs Identify Administrative/ Political Needs Identify Legislative Requirements Select Levels of Service Select Performance Protocols Select Data Dictionary Review Itemization Protocols Select Itemization Protocols Categorize New Assets Supply Inventory Data to Others Collect Data Review Data Review Inspection Protocols Select Inspection Protocols Identify Inspection Protocols Update Inventory Data Collect Data Update Inventory Data Update Performance Data Update Inventory Data Review Rating Select Rating Calculate Performance Review Facets Select Prioritization Model Develop Sustainability Model Validate Inventory Predict Performance Accommodate Growth Identify Growth Propose Preliminary Budget Develop Decision Support System Normalize Asset Classes Identify Suitability Gap Harmonize Asset Classes Harmonize Performances Propose Budget Review Gap/ Funding Needs Maximize Performance Identify Functionality Gap Identify Condition Gap Identify New Requirements Categorize Data Update Model Data Fig. 3 Optimize Investment Recommend Level of Investment Update Metadata & Expedite M&R
    26. 26. Social Cost Considerations for Municipal Infrastructure Management (B5123.8) <ul><li>Three Categories of User Costs </li></ul><ul><ul><li>O rganizational (design, traffic control, parking, lost revenue) </li></ul></ul><ul><ul><li>Societal (actual costs to citizens and companies) </li></ul></ul><ul><ul><li>Environmental (????) </li></ul></ul>
    27. 27. The State of Canadian Sewers – An Analysis of Asset Inventory and Condition (B5123.11)
    28. 28. The State of Canadian Sewers – An Analysis of Asset Inventory and Condition (B5123.11)
    29. 29. Open Forum on Opportunities for Research in Asset Management in Canada, (B5123.12) International Agencies (World Bank, OECD, CIDA) Ontario’s PIM Ontario’s Bill 175 Research Policy Practice NRC - MIIP CATT INFC KOA TRM and AM Commit tees INFC State of Infrastructure INFC Strategic Infrastructure Fund InfraGUIDE Benchmarking (OMBI) Canada West Foundation CICA TAC Primer MIMS Alberta CERIU Horizontal Research Roundtable on Infrastructure Public Policy in Municipalities (PPM) NRC - IRC Universities (Civil) Universities (Urban Planning) ISIS CWN NRC - CSIR Municipalities CSCE CIP CEAB NRTSI Other NCE’s Federal Departments (PWGSC, DND, TC. Heritage, Parks, etc.) CMHC EPIC/CSCE OGRA/MIDS International AM Activities (IPWEA, IIMM, EPA) INFC MRIF COMRIF PPPForum ICMD StatCan AwwaRF McGill MPMP APWA CAUBO Edmonton PPM http://irc.nrc-cnrc.gc.ca/pubs/fulltext/b5123.12
    30. 30. Additional Deliverables: AM Software Review <ul><li>Software Review </li></ul><ul><ul><li>Municipal infrastructure asset management systems: state-of-the-art review ( irc.nrc-cnrc.gc.ca/fulltext/nrcc48339 ) </li></ul></ul><ul><ul><li>www.itcon.org/cgi-bin/works/Show?2006_16 (Journal Paper) </li></ul></ul><ul><ul><ul><li>Mahmoud Halfawy, Linda Newton, Dana Vanier </li></ul></ul></ul><ul><ul><li>Reviews the following: </li></ul></ul><ul><ul><ul><li>Synergen • CityWorks </li></ul></ul></ul><ul><ul><ul><li>Hansen • RIVA </li></ul></ul></ul><ul><ul><ul><li>Infrastructure2000 • Harfan </li></ul></ul></ul><ul><ul><ul><li>Municipal Infrastructure Management Systems (MIMS) </li></ul></ul></ul><ul><ul><li>Conclusions </li></ul></ul><ul><ul><ul><li>Evaluated well-known applications in Canada </li></ul></ul></ul><ul><ul><ul><li>Focused on collaborators’ interests </li></ul></ul></ul><ul><ul><ul><li>Stresses need for industry standards for interoperability </li></ul></ul></ul>
    31. 31. Deliverable: Software Review - MIMS www.albertamims.org
    32. 32. Framework for Decision Support System (DSS) Life Cycle Costing Service Life Prediction (b) Asset Life Cycle  Condition Assessment Risk Assessment Alternative Evaluation Decision Analysis Paradigm  Cost Analysis (c) Benefit - Cost Analysis Benefit - (a) Asset Inventory Asset Inventory   Roads   Bridges   Buried Utilities   Buildings, etc. Geographic Information System (GIS) Funded Projects Deferred Maintenance Budgeting Decisions YES NO (e) Project Selection  Making Civil Infrastructure Needs Administrative Requirements Political Agendae (d) D ecision -
    33. 33. Discussion <ul><li>Ranking to date (only 7 projects, top 4, 5 criteria, scale of 1 to 5) </li></ul>Normal. Age Rank 1 2 3 4 6 4 7 Condition Rank 6 6 1 4 2 2 4 Risk Rank 7 1 3 2 3 5 5 LCC Rank 7 6 5 3 3 2 1 Normal. Cost Rank 7 6 5 3 3 2 1 5 Criteria Rank 7 6 3 2 3 1 5 3 Criteria Rank 7 6 2 2 1 2 5 Case 1 Rank 7 2 1 3 5 4 6 Case 2 Rank 7 6 5 1 3 4 2 Case 3 Rank 7 5 1 2 2 4 6 Case 4 Rank 7 6 1 5 3 2 4 MOO unweight. Rank 5 6 7 3 3 2 1 MOO Weighted Rank 7 6 5 4 3 2 1 FSE Rank 7 6 5 1 3 4 2 Project A B C D E F G <ul><li>NOT one project is selected consistently as a top four ranking </li></ul><ul><li>Age ranking is worst and probably the most used! </li></ul>
    34. 34. Paper copy <ul><li>Decision models to prioritize maintenance and renewal alternatives </li></ul><ul><li>Vanier, D.J.; Tesfamariam, S.; Sadiq, R.; and Lounis, Z. </li></ul><ul><li>Joint International Conference on Computing and Decision Making in Civil and Building Engineering (Montréal, QC. June 14, 2006), pp. 2594-2603, June 14, 2006 </li></ul><ul><li>http://irc.nrc-cnrc.gc.ca/pubs/fulltext/nrcc45571/ </li></ul>
    35. 35. SSAM-I <ul><li>Investigate GREEN and RED interventions </li></ul>$10,000 PV = $3066 $1000 (10%) $1000 (10%) $1000 (10%) PV of $4000= $2709 $1000 (10%) Ave. Cond. = 1.5 1 2 3 4 5 2005 2010 2015 2020 2025 2030 2035 2040 Condition 2050 Ave. Cond. = 3.0 1 2 3 4 5 2005 2010 2015 2020 2025 2030 2035 2040 Condition 2050 Look at average for next 10 years
    36. 36. Results – Geometric Deterioration 1 2 3 4
    37. 37. Results – Geometric Deterioration Looks OKAY Downhill Emergencies
    38. 38. BACKGROUND: PSAB – What and who are they? <ul><li>Public Sector Accounting Board </li></ul><ul><li>Canadian Institute of Chartered Accountants (CICA) </li></ul><ul><ul><li>PSAB comprises 12 volunteer members from senior levels of government, including federal and provincial auditors general, controllers, and deputy ministers, municipal finance officials, academics and other experts in government reporting. </li></ul></ul><ul><ul><li>Senior “Accountants” at all 3 levels of government </li></ul></ul><ul><ul><ul><li>Auditor General, Treasury Board </li></ul></ul></ul><ul><ul><ul><li>Provinces of SK, BC, NL, ON </li></ul></ul></ul><ul><ul><ul><li>Ottawa, Quebec City, Montreal </li></ul></ul></ul><ul><ul><ul><li>Others </li></ul></ul></ul><ul><ul><ul><ul><li>University of Saskatchewan </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Deloitte & Touche, Dominion Bond Rating Service </li></ul></ul></ul></ul>
    39. 39. Tangible Capital Assets (TCA) <ul><li>PSAB 3150 legislates that municipalities must report tangible capital assets on their annual financial statement and must record: </li></ul><ul><ul><li>Historical cost of these assets, transfers, betterments, impairment </li></ul></ul><ul><ul><ul><li>Can be estimate </li></ul></ul></ul><ul><ul><li>Net write-down of these assets, and </li></ul></ul><ul><ul><ul><li>Amortization method (Straight-line to “0” in 40 years is typical) </li></ul></ul></ul><ul><ul><li>Useful life of these assets </li></ul></ul><ul><ul><ul><li>shortest of physical, economical, technical, commercial or legal </li></ul></ul></ul><ul><li>This must be implemented in the fiscal years starting in January 2009. </li></ul>
    40. 40. Asset Management = PSAB 3150 <ul><li>What does AM have to do with PSAB 3150? </li></ul><ul><ul><li>Advocates “Proper Stewardship” Tangible Capital Assets </li></ul></ul><ul><ul><li>Surveys (Ontario and BC – Google “zoomerang psab”): </li></ul></ul><ul><ul><ul><li>50% - great initiative </li></ul></ul></ul><ul><ul><ul><li>50% - waste of money </li></ul></ul></ul><ul><ul><li>Comments (from the survey respondents) </li></ul></ul><ul><ul><ul><li>Finally! </li></ul></ul></ul><ul><ul><ul><li>Money to accountants and consultants </li></ul></ul></ul><ul><ul><ul><li>Cannot afford </li></ul></ul></ul><ul><ul><ul><li>Augh! </li></ul></ul></ul>
    41. 41. Asset Management = PSAB 3150 <ul><li>However, PSAB 3150 is a means to an end: </li></ul><ul><ul><li>What do you OWN? </li></ul></ul><ul><ul><li>What is it WORTH? </li></ul></ul><ul><ul><li>What is the DEPRECIATION? </li></ul></ul><ul><li>“ Asset Assessment” in FUTURE </li></ul><ul><ul><ul><li>Physical condition and life expectancy of TCA </li></ul></ul></ul><ul><ul><ul><li>Publish a Statement of Recommended Practices (SORP) </li></ul></ul></ul><ul><ul><li>Later on … Condition and Service Life (Not bad!) </li></ul></ul><ul><li>Great Opportunities to get “house in order” </li></ul><ul><li>Get Finance to pay ! </li></ul>
    42. 42. Engineering Approach to TCA <ul><li>Proposal </li></ul><ul><ul><li>An Engineering Approach to the Valuation and Assessment of Tangible Capital Assets </li></ul></ul><ul><ul><li>MIIP PHASE II </li></ul></ul>
    43. 43. MIIP Phase II <ul><li>PSAB Engineering Approach </li></ul><ul><li>Data Structures for urban infrastructure (fields, records) </li></ul><ul><li>Sustainable Strategic Asset Management-Integrator </li></ul><ul><ul><li>SSAM-I software prototype </li></ul></ul><ul><li>Still in discussion phase </li></ul><ul><li>Smaller cities/towns </li></ul><ul><li>2-3 year project to start in March ’07 </li></ul>
    44. 44. Summary and Conclusions <ul><li>Need more research in Asset Management </li></ul><ul><li>Better Collaboration with Municipalities </li></ul><ul><li>A proper implementation of PSAB 3150 will assist the implementation of asset management in Canadian municipalities. </li></ul><ul><li>PSAB needs to hear from the engineering and technical staff in municipalities. </li></ul>
    45. 45. MIIP Partners Municipal Infrastructure Investment Planning Project (MIIP) http://irc.nrc-cnrc.gc.ca/ui/bu/miip_e.html
    46. 46. Questions ? <ul><li>Dana J. Vanier, Ph.D. </li></ul><ul><li>Senior Research Officer </li></ul><ul><li>Institute for Research in Construction </li></ul><ul><li>National Research Council Canada </li></ul><ul><li>1200 Montreal Road </li></ul><ul><li>Ottawa, Ontario CANADA K1A 0R6 </li></ul><ul><li>[email_address] </li></ul><ul><li>Tel: (613) 993-9699 </li></ul><ul><li>FAX 954-5984 </li></ul><ul><li>MIIP Website </li></ul><ul><li>http://irc.nrc-cnrc.gc.ca/ui/bu/miip_e.html </li></ul>

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