IAMA ASSET MANAGEMENT PLANNING. Matthew Van Dommelen John Murray Chris Vanderheyden Town of Edson Town of Devon. IAMA

Size: px

Start display at page:

Download "IAMA ASSET MANAGEMENT PLANNING. Matthew Van Dommelen John Murray Chris Vanderheyden Town of Edson Town of Devon. IAMA"

Arnold Dawson
5 years ago
Views:

1 IAMA ASSET MANAGEMENT PLANNING Matthew Van Dommelen John Murray Chris Vanderheyden Town of Edson Town of Devon. IAMA

2 Research Public Sector Digest - monthly publication written for public sector practitioners PSD Webinars PSD Municipal Benchmarking The Infrastructure Database of Canada Grant Applications What we do Technology Developed for local governments to tackle asset management, financial planning/budgeting, and performance measurement Consulting Asset Management Plans (AMPs) Asset Management Roadmaps Water & Wastewater Rate Studies

3 The PSD Team Former Municipal Experts Institute of Asset Management (IAM) Certified CNAM, IAMA, FCM, AMO, GFOA International, GFOA Texas, MFOA

4 Federal Gas Tax Fund The federal Gas Tax Fund (GTF) was confirmed as part of the federal Budget 2014, and will run from 2014 to Alberta will receive $222 million in , and $1.08 billion from to The goal of the approach is to ensure continued progress is made while setting achievable goals against which Alberta will measure progress as a part of the Outcomes Report. The first check-in date is March Municipalities can pool, bank and borrow against this funding, providing significant financial flexibility.

Federal Gas Tax Fund AB ASSET MANAGEMENT Capacity building Expenditures could include developing and implementing: studies, strategies, or systems related to

5 Federal Gas Tax Fund AB ASSET MANAGEMENT Capacity building Expenditures could include developing and implementing: studies, strategies, or systems related to asset management, which may include software acquisition and implementation; training directly related to asset management planning; and long-term infrastructure plans.

FCM MAMP AB ASSET MANAGEMENT MUNICIPAL ASSET MANAGEMENT PROGRAM (MAMP) 5 year, $50-million program to help Canadian municipalities make informed infrastructure investment decisions based on sound

6 FCM MAMP AB ASSET MANAGEMENT MUNICIPAL ASSET MANAGEMENT PROGRAM (MAMP) 5 year, $50-million program to help Canadian municipalities make informed infrastructure investment decisions based on sound asset management practices. Eligible activities: Assessing the physical condition of assets Documenting the long-term maintenance of lifecycle costs Implementing policies to integrate asset management practices into daily routines Training elected officials and staff on asset management approach Software related to asset management Application deadline: Rolling Eligibility: Canadian municipal governments

7 FCM MAMP AB ASSET MANAGEMENT MUNICIPAL ASSET MANAGEMENT PROGRAM (MAMP) Maximum Funding: Up to 80% of total eligible projects, to a maximum of $50,000 Up to 50% of total funding can be applied to AM software purchases Applicants can submit for up to (3) three activities within one application Project Timelines: Projects must be completed within 11 months from the time FCM approves the project for funding Project costs are eligible after the date on which FCM notifies applicants in writing that their application has been received

8 FCM MAMP AB ASSET MANAGEMENT MUNICIPAL ASSET MANAGEMENT PROGRAM (MAMP) Application components: Completed application form Completed workplan and budget Resolution from council Grant application requires completion of AM self-assessment using the Asset Management Readiness Scale Application Review: Initial screening from FCM within 5 business days of application submission Applicant informed of results within 2 months of submitting completed application Several applicants have received decisions within a month

9 FCM MCIP MUNICIPALITIES FOR CLIMATE INNOVATION PROGRAM (MCIP) AB ASSET MANAGEMENT FCM s MCIP is a five-year, $75-million program that helps municipalities prepare for, and adapt to, climate change, and to reduce emissions of greenhouse gases (GHGs). Under MCIP, funding is available for municipalities to develop plans and studies to reduce GHG emissions and help communities adapt to the impacts of climate change, such as extreme temperatures, flooding and drought. Sustainable asset management and climate change adaptation are closely linked communities should reach out to FCM to discuss the applicability of MCIP to supplement asset management projects and planning. Application deadline: Rolling Eligibility: Available to all municipalities and their partners Maximum Funding: Grants of up to $175,000 covering up to 80 percent of eligible costs Funding for demonstration projects and staff support grants will be offered later in 2017

10 The Asset Management Roadmap: From Planning to #PSDwebinars IAMA

11 Agenda: Overview of Asset Management Overview of the PSD Asset Management Roadmap The key components State of Maturity Assessments what we have found The key components continued

clean drinking water service Roads provide a transportation service Buses provide

12 Asset Management is Service Management The Asset is the conduit for the service Infrastructure provides services that bring our cities to life Pipes provide a clean drinking water service Roads provide a transportation service Buses provide a public transit service Facilities / Parks provide recreation programs and services

13 A NEW Framework (service centric): What are the organizational objectives? What assets are owned and what services do they provide What is the asset s value (to the organization and the community)? What is the asset s impact to service delivery (performance and risk)? What are the life cycle needs and available options? What are the work/budget prioritization processes? What are the financial strategies? What level of service is attainable?

14 Asset Management Discipline It involves: Processes, procedures and practices to assist and define the management of infrastructure Achieving total lowest cost of ownership Established measures for performance, risk and cost (level of service)

15 Asset Management Discipline It includes: A sophisticated and coordinated effort A multi-disciplined team Ultimately public engagement and input

16 PSD - Asset Management Roadmap Process Provides continuous improvement of A.M. practices It breaks out the core components of A.M. for separate analysis Provides a tailored critical activities path

17 The Asset Management Road Map Process Covered by FCM MAMP Funding

18 Current State of Maturity Analysis (Critical Activities Path)

19 Current State of Maturity Analysis (Critical Activities Path) Self Assessment Tests Departmental Interviews Collaborative Project

20 Current State of Maturity Analysis What we have found: Lack of Internal Asset Management Teams Little Departmental Collaboration No Dedicated Employees No AM Committee

21 Current State of Maturity Analysis What we have found: Need to fine tune some basic metrics Useful Life Projections Replacement Costs & Values Finer Segmentation of Assets What is the current level of service?

22 Current State of Maturity Analysis What we have found: Lots of additional information not currently used: Engineering / Public Works data sets Facilities / Parks data sets

23 Current State of Maturity Analysis What we have found: The need to develop some key processes Risk Management Life Cycle Intervention Planning Level of Service Frameworks Cost of Service Level of Service What level of service is attainable?

24 Current State of Maturity Analysis What we have found: The need to build internal capacity Skills / Knowledge Development Cross Functional Team Human Resources

PSD Roadmap Components Organizational Cognizance Data and information templates Condition assessment development Risk and criticality model

25 PSD Roadmap Components Organizational Cognizance Data and information templates Condition assessment development Risk and criticality model development Life cycle analysis methodologies Project & Program Prioritization Financial Strategy Analysis Level of Service Model Development

A.M. Policy Development The Problem / issue that needs to be addressed The purpose of this policy is to ensure the development of the city s asset management program, including roles and

26 A.M. Policy Development The Problem / issue that needs to be addressed The purpose of this policy is to ensure the development of the city s asset management program, including roles and responsibilities, to facilitate logical and informed decision making for the management of the city s infrastructure to support the delivery of sustainable community services. The Players - the individuals and/or groups involved A course of action and/or principles Alignment to organizational objectives and goals

27 The Asset Registry (Base Data) Good data is the foundation of good decisions Two major reasons for decision error: Incomplete or inaccurate data used The misinterpretation and usage of data

28 The Evolution of Asset Data Asset ID, location, description data Valuation data Condition data Performance (demand and capacity) data Risk data Maintenance data Life cycle activity data Optimized decision data Service based data

29 Asset Age vs Asset Condition Condition data builds confidence for future decisions Asset age analysis typically overstates needs and overall deficit Often useful life durations are set too short Age is not a good indicator for future failure

30 When does 50% = 75%? A: When engineers and accountants get together 75% Condition Deterioration Curve SL Depreciation Life 50%

31 Asset Age vs Asset Condition Assessed vs. Age-Based: Average Asset Condition Rating (0-100) Assessed Age-Based Paved Roads Culverts (Structure) Bridges (Structure) 36 59

Condition Assessments - Benefits Better overall management practices Establishment of rehabilitation programs Prevents future failures / liability protection

32 Condition Assessments - Benefits Better overall management practices Establishment of rehabilitation programs Prevents future failures / liability protection Repair schedules and preventive maintenance programs Extends asset service life - improves level of service Enables accurate asset reporting and better decision making

33 Workshop: Condition Assessment Program Development Condition assessment by asset type will be reviewed: Type of capture Field check or road patrol Condition assessment Detailed engineering study Cycle of Capture Type of Index or reporting format

34 Risk / Criticality Assessment Needs usually outweigh available resources Risk = Probability of Failure X Consequence of Failure

35 Workshop: Risk and Criticality Model Development Probability of Failure Age / Condition Soil Corrosion Stray currents Consequence of Failure Water Main Failure Cost to Repair Disruption to public Impact to environment

36 Risk / Criticality Assessment Risk = Probability of Failure X Consequence of Failure

Risk Models - Summary A good risk model will prioritize available resources Ensure vital services are available Prioritize and streamline inspection and condition assessment programs Prioritize and

37 Risk Models - Summary A good risk model will prioritize available resources Ensure vital services are available Prioritize and streamline inspection and condition assessment programs Prioritize and optimize operations and maintenance programs Prioritize and optimize capital budget processes and program delivery Ensure that available money and resources are applied to the right asset at the right time And will establish attainable levels of service

38 Life Cycle Management Review

39 Workshop: Life Cycle Framework Development ASSET CONDITION AND RELATED WORK ACTIVITY: PAVED ROADS CONDITION CONDITION RANGE WORK ACTIVITY EXCELLENT CONDITION (MAINTENANCE ONLY PHASE) MAINTENANCE ONLY GOOD CONDITION (PREVENTATIVE MAINTENANCE PHASE) CRACK SEALING EMULSIONS FAIR CONDITION (REHABILITATION PHASE) POOR CONDITION (RECONSTRUCTION PHASE) 25-1 RESURFACE - MILL & PAVE RESURFACE - ASPHALT OVERLAY SINGLE & DOUBLE SURFACE TREATMENT (FOR RURAL ROADS) RECONSTRUCT - PULVERIZE AND PAVE RECONSTRUCT - FULL SURFACE AND BASE RECONSTRUCTION CRITICAL CONDITION (RECONSTRUCTION PHASE) 0 CRITICAL INCLUDES ASSETS BEYOND THEIR USEFUL LIVES WHICH MAKE UP THE BACKLOG. THEY REQUIRE THE SAME INTERVENTIONS AS THE POOR CATEGORY ABOVE.

40 Life Cycle Framework Development ROAD LIFECYCLE ACTIVITY OPTIONS TREATMENT AVERAGE UNIT COST (PER SQ. M) ADDED LIFE (YEARS) COST OF ACTIVITY/ADDED LIFE URBAN RECONSTRUCTION $ $6.83 URBAN RESURFACING $84 15 $5.60 RURAL RECONSTRUCTION $ $4.50 RURAL RESURFACING $40 15 $2.67 DOUBLE SURFACE TREATMENT $25 10 $2.50 ROUTING & CRACK SEALING (P.M) $2 3 $0.67

41 How much money do we need? Age Based Analysis Condition Based Analysis Risk Based Analysis Life Cycle Based Analysis Optimized Analysis

42 Desired Levels of Service Set desired levels of service for each infrastructure program Use performance measures to track targets Establish current performance and expected performance A.M. plan should outline how to bridge any gaps

43 Workshop: LOS Framework Development Service Service Goal Technical LOS Accessible Affordable Cost of Customer Billing / Service Connection O&M Cost ('000) / Km Length of Network Accommodate Growth Safe Keep employees safe Protect the Public % of Inoperable or Leaking Hydrants Reliable Sufficient quality / quantity # of Water Pressure Complaints by Customers / 1,000 People Served Uninterrupted Service # of Water Quality Customer Complaints / 1,000 People Served # of Main Breaks / 100 Km Length Regulatory Customer Service Meet License - Safety Meet License - Environment Responsive Accurate Customer requests will have a 24 hr response time.

44 Trends influencing LOS Climate change Aging infrastructure Uncertainty in growth forecasts Declines in water consumption Socio-political expectations Declining senior gov t grants

Workshop: Advanced Financial Strategy 1)Determine how your numbers relate to your comparators A Council s willingness to address its infrastructure deficit is affected by neighboring municipalities

45 Workshop: Advanced Financial Strategy 1)Determine how your numbers relate to your comparators A Council s willingness to address its infrastructure deficit is affected by neighboring municipalities budget decisions Know your comparators infrastructure positions, strategies & trends 2) Develop scenarios for consideration Create multiple options to demonstrate the interaction between resources and service levels Short & long-term 3) Make recommendations

46 Benefits Realized from Good Asset Management Practice Council awareness and involvement in the challenges of addressing the infrastructure deficit Establishment of long term capital programs optimizing limited available funds Better communication amongst internal stakeholders and a focus on continuous improvement The establishment of alternate technologies = significant cost savings

Benefits Realized from Good Asset Management Practice Better alignment between finance and engineering (PW) The robust AMP and process will be a catalyst of conversation,

47 Benefits Realized from Good Asset Management Practice Better alignment between finance and engineering (PW) The robust AMP and process will be a catalyst of conversation, generating ideas, changing philosophies, and starting innovations for better management practices A review of management practices & policies to better align with sustainable goals

48 Questions / Comments? Contact Us: mvandommelen@publicsectordigest.com jmurray@publicsectordigest.com cvanderheyden@publicsectordigest.com

49 The Asset Management Roadmap: The Towns of Edson and #PSDwebinars IAMA

50 Agenda: Edson and Devon - State of Maturity Reports Edson Data Evolution Break Out Session - Questions Overview of Edson s Risk and Life Cycle Frameworks

51 The Asset Management Road Map Process

kilometres southwest of Edmonton Population: Approx - 8,500 Population: Approx

52 Town of Edson: Located in West Central Alberta in Yellowhead County Town of Devon: Located in Alberta s Capital Region 190 kilometres west of Edmonton 26 kilometres southwest of Edmonton Population: Approx - 8,500 Population: Approx 7,000 State or Maturity Process: 4 th Qtr 2016 State or Maturity Process: July to Sept 2017

53 Current State of Maturity Analysis (Critical Activities Path) Self Assessment Tests Departmental Interviews Collaborative Project

Organizational Cognisance Relates to the degree to which AM is both understood and prioritized by both senior management and council Edson No current AMP or AM

54 Organizational Cognisance Relates to the degree to which AM is both understood and prioritized by both senior management and council Edson No current AMP or AM Policy Strategic plan outlines AM Planning and Sustainment of Infrastructure Devon No current AMP AM Policy passed by Council in 2017 ensuring long term sustainability

No formal AM committee Devon Cross-functional team in place to coordinate asset management practices Director

55 Organizational Capacity Adequate human resources, staff knowledge, and a cross-functional team working together Edson Internal resources are currently stretched too thin No dedicated staff for asset management. No formal AM committee Devon Cross-functional team in place to coordinate asset management practices Director of Planning and Infrastructure, Director of Finance and Support Services, Manager of Infrastructure and Manager of Accounting.

Data Maturity Edson Many Pooled data sets (roads, water, waste water, storm) Better Engineering data available but not centralised Very Little condition data some isolated studies No current

56 Data Maturity Edson Many Pooled data sets (roads, water, waste water, storm) Better Engineering data available but not centralised Very Little condition data some isolated studies No current replacement costs Facilities and Parks no component level data Devon Good data but not centralized (GIS, AutoCad drawings, spreadsheets, etc) Some condition data available but often not captured across networks Some current replacement costs available but not centralized.

Asset Management Strategies Asset management strategies should establish a set of planned management activities to prioritize and optimize infrastructure programs, manage risk and ultimately provide

57 Asset Management Strategies Asset management strategies should establish a set of planned management activities to prioritize and optimize infrastructure programs, manage risk and ultimately provide the total lowest cost of asset ownership. Both Edson & Devon Life cycle activity analysis is performed at the project planning stage and not at the network tactical planning stage More reactive than proactive There are no overriding network-level risk frameworks or risk matrices in place

Financial Strategies Financial resources required for sustainable asset management are based on updated asset inventories, desired levels of service and all projected asset requirements.

58 Financial Strategies Financial resources required for sustainable asset management are based on updated asset inventories, desired levels of service and all projected asset requirements. Both Edson & Devon Short and long term financial strategies are feasible based on the availability of current information. Based on very little condition data No comparisons of different levels of service are provided.

59 The Town of Edson ASSET MANAGEMENT COMPONENT PROFICIENCY LEVEL AVERAGE PROFICIENCY Organizational Cognisance Intermediate Intermediate Organizational Capacity Basic Intermediate Infrastructure Data/Information Basic Intermediate Asset Management Strategies Basic Basic Financial Strategies Basic Basic Level of Service Basic Basic

60 The Town of Devon ASSET MANAGEMENT COMPONENT PROFICIENCY LEVEL AVERAGE PROFICIENCY Organizational Cognizance Advanced Intermediate Organizational Capacity Advanced Intermediate Infrastructure Data/Information Intermediate Intermediate Asset Management Strategies Intermediate Basic Financial Strategies Basic Basic Level of Service Basic Basic

61 Questions / Comments? Contact Us: mvandommelen@publicsectordigest.com jmurray@publicsectordigest.com cvanderheyden@publicsectordigest.com

62 Edson s Asset Registry Evolution RAISING THE MATURITY OF EDSON S ASSET MANAGEMENT PROGRAM THROUGH ASSET DATA DISAGGREGATION

63 A SNAPSHOT OF THE PAST Pre-Asset Management Roadmap Street Inventory Pooled inventory Generalized in-service dates Pooled replacement costs Discrepancy in quantities No existing asset specific attribute information Asset ID Name Description In-Service Date Quantity Unit of Measure Replacement Cost Method Replacement Cost 334 Lanes - Paved Original Lanes - Paved Asset 1/1/1974 4,039 Quantity CPI Tables $231, Roads - Paved (1st Lift) Original Roads - Paved Asset 1/1/ ,713 Length (m) CPI Tables $15,024, Roads - Subsurface Original Roads - all Subsurface Asset 1/1/ ,631 Length (m) CPI Tables $66,381, Roads - Paved (2nd Lift) Original Roads - Paved (2nd Lift) 1/1/ ,713 Length (m) CPI Tables $12,705, Sani Dump Station - Paving m2 Sani Dump Station - Paving m2 12/31/2012 3,978 Area (km2) CPI Tables $115, st Street (HRH) Road Build - Paving m2 41st Street (HRH) Road Build - Paving m2 11/1/ Area (sq ft) CPI Tables $42,295.00

64 Pooled Street Inventory

65 Segmented Street Inventory A good start but not good enough!

Replacement Width (m) Material Cost Method Replacement Cost 1251 Surface (Paved) 65 ST AREA 5 (SKYVIEW & SURROUNDING) 17 Ave 15 Ave 355 7.5 Paved Class 3 Local / Street 12/31/2003 Cost/Unit $236,785.

66 Disaggregated Asset Registry Today What do we own? 365 segments of paved roadway clearly identified by a unique asset ID Asset ID Segment Name Area Street (from) Street (to) Length (m) Surface Surface Service Class Design Class In-Service Date Replacement Width (m) Material Cost Method Replacement Cost 1251 Surface (Paved) 65 ST AREA 5 (SKYVIEW & SURROUNDING) 17 Ave 15 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $236, Surface (Paved) 63 ST AREA 5 (SKYVIEW & SURROUNDING) 19 Ave Hwy Paved Class 2-A Collector 12/31/2008 Cost/Unit $170, Surface (Paved) 65 ST AREA 5 (SKYVIEW & SURROUNDING) 13 Ave 15 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $166, Surface (Paved) 62 ST AREA 5 (SKYVIEW & SURROUNDING) N of 17 Ave S of 17 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $177, Surface (Paved) 9 Ave AREA 6 (WEST HAVEN / WEST GROVE) 63 ST 62A ST Paved Class 3 Local / Street 12/31/2002 Cost/Unit $50,025.00

67 Disaggregated Asset Registry Today Where is it? Segment name, location, and coordinates Asset ID Segment Name Area Street (from) Street (to) Length (m) Surface Surface Service Class Design Class In-Service Date Replacement Width (m) Material Cost Method Replacement Cost 1251 Surface (Paved) 65 ST AREA 5 (SKYVIEW & SURROUNDING) 17 Ave 15 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $236, Surface (Paved) 63 ST AREA 5 (SKYVIEW & SURROUNDING) 19 Ave Hwy Paved Class 2-A Collector 12/31/2008 Cost/Unit $170, Surface (Paved) 65 ST AREA 5 (SKYVIEW & SURROUNDING) 13 Ave 15 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $166, Surface (Paved) 62 ST AREA 5 (SKYVIEW & SURROUNDING) N of 17 Ave S of 17 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $177, Surface (Paved) 9 Ave AREA 6 (WEST HAVEN / WEST GROVE) 63 ST 62A ST Paved Class 3 Local / Street 12/31/2002 Cost/Unit $50,025.00

68 Disaggregated Asset Registry Today What is known about the asset? Segment quantity, material, service class, and design class Asset ID Segment Name Area Street (from) Street (to) Length (m) Surface Surface Service Class Design Class In-Service Date Replacement Width (m) Material Cost Method Replacement Cost 1251 Surface (Paved) 65 ST AREA 5 (SKYVIEW & SURROUNDING) 17 Ave 15 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $236, Surface (Paved) 63 ST AREA 5 (SKYVIEW & SURROUNDING) 19 Ave Hwy Paved Class 2-A Collector 12/31/2008 Cost/Unit $170, Surface (Paved) 65 ST AREA 5 (SKYVIEW & SURROUNDING) 13 Ave 15 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $166, Surface (Paved) 62 ST AREA 5 (SKYVIEW & SURROUNDING) N of 17 Ave S of 17 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $177, Surface (Paved) 9 Ave AREA 6 (WEST HAVEN / WEST GROVE) 63 ST 62A ST Paved Class 3 Local / Street 12/31/2002 Cost/Unit $50,025.00

69 Disaggregated Asset Registry Today What is it worth? Segment per unit cost and replacement cost Asset ID Segment Name Area Street (from) Street (to) Length (m) Surface Surface Service Class Design Class In-Service Date Replacement Width (m) Material Cost Method Replacement Cost 1251 Surface (Paved) 65 ST AREA 5 (SKYVIEW & SURROUNDING) 17 Ave 15 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $236, Surface (Paved) 63 ST AREA 5 (SKYVIEW & SURROUNDING) 19 Ave Hwy Paved Class 2-A Collector 12/31/2008 Cost/Unit $170, Surface (Paved) 65 ST AREA 5 (SKYVIEW & SURROUNDING) 13 Ave 15 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $166, Surface (Paved) 62 ST AREA 5 (SKYVIEW & SURROUNDING) N of 17 Ave S of 17 Ave Paved Class 3 Local / Street 12/31/2003 Cost/Unit $177, Surface (Paved) 9 Ave AREA 6 (WEST HAVEN / WEST GROVE) 63 ST 62A ST Paved Class 3 Local / Street 12/31/2002 Cost/Unit $50,025.00

70 TCA RESTATEMENT

72 ASSET MANAGEMENT TEAM DEPARTMENTAL COLLABORATION LOCAL PROFESSIONAL KNOWLEDGE RESOURCE MATERIAL & GUIDLINES TECHNOLOGY (CAD, GIS, FIELD COLLECTION TOOLS etc. )

73 RESOURCE MATERIAL & GUIDELINES CONDITION DATA COLLECTION

74 ASSET SPECIFIC PROFILE DEVELOPMENT

75 Break Out Session GROUP A YOU RE DEVELOPING A RISK MODEL. WHICH ASSET ATTRIBUTES WOULD YOU USE FOR PROBABILITY AND CONSEQUENCE OF FAILURE METRICS GROUP B YOU RE DEVELOPING A LIFE CYCLE ACTIVITY MODEL. WHAT STEPS WOULD YOU TAKE TO START AND CONTINUE THE PROCESS.

76 DEFINING ASSET RISK Risk = Probability of Failure X Consequence of Failure

77 DEFINING ASSET RISK Good data is the foundation of good decisions Previous Risk Logic Probability of Failure Metric Age Based Condition Consequence of Failure Metric Economic o Historical Cost OLD vs NEW Current Asset Management Risk Logic Probability of Failure Metric Transitioning to Assessed Condition Consequence of Failure Metric Economic o Road Surface Area Social o Road Design Class Operational o Road Service Class

78 RISK MODEL DEVELOPMENT COMPARISON Pre-Asset Management Roadmap Risk

79 RISK MODEL DEVELOPMENT COMPARISON Pre-Asset Management Roadmap Risk Analysis

80 BUILDING THE RISK MODEL What attribute data is available? Which risk classification can the attribute impact? Economic Social Environmental Operational Health and Safety Quantify how risk will be allocated within each classification? What overall weight does the metric carry?

81 BUILDING THE RISK MODEL Risk Allocation

82 BUILDING THE RISK MODEL Overall Weighting

83 RISK MODEL EVOLUTION

84 RISK ANALYSIS ASSET BREAKDOWN

85 ASSET LEVEL RISK ANALYSIS

86 ASSET LEVEL RISK RATING

network preservation treatments and strategies Minimum

87 PAVED ROAD LIFE CYCLE FRAMEWORK DEVELOPMENT RESEARCH Industry scan for best practice and recommended road network preservation treatments and strategies Minimum Maintenance Standards Regulation (MMS) Highway Maintenance Specifications

88 LIFE CYCLE FRAMEWORK DEVELOPMENT 2.0 TOOL BOX OF PAVEMENT PRESERVATION TREATMENTS DESIGN APPROACH FOR SELECTING PAVEMENT PRESERVATION TREATMENTS...4

89 IDENTIFYING EVENTS AND SCHEDULING

90 PROFILE DETERIORATION CURVE & PREDICTION MODEL DEVELOPMENT

91 PAVED ROAD ASSET LEVEL PREDICTION MODEL C4 - Re-profiling A2 - Crack Fill A2 - Crack Fill A2 - Crack Fill A2 - Crack Fill C8 - Two-lift Overlay

92 Questions / Comments? Contact Us: mvandommelen@publicsectordigest.com jmurray@publicsectordigest.com cvanderheyden@publicsectordigest.com

Developing Your Local Government Asset Management Plan

Developing Your Local Government Asset Management Plan April 19th, 2016 John Murray, Public Sector Digest Gabe Metron, Public Sector Digest Darren Row, City of Miramichi Darlene O Shea, City of Miramichi