Integrated Asset Management Strategy. Asset Management Strategy Report

Transcription

1 District of North Saanich Integrated Asset Management Strategy Asset Management Strategy Report May 2013

2 Asset Management Strategy Report District of North Saanich Asset Management Strategy Report 4 of 4 1. State of Asset Management 2. Long Term Goals for Asset Management 3. Overview of Utility Infrastructure 4. Asset Management Strategy Prepared by: Reviewed by: Bernadette O Connor Opus International Consultants (Canada) Limited Victoria Office Douglas Street Victoria BC V8W 2E7 Canada Eugene Stansfield Telephone: Approved by: Facsimile: Brendan Sterling Issue Date: 2 Oct 2013 Reference: Status: Final Report Opus International Consultants (Canada) Limited 2012

3 Contents Executive Summary Introduction Project Asset Management Background Purpose of Strategy Mandate from Corporate Documents The Strategy Asset Management Vision Objectives Key Focus Areas Recommended Actions Asset Management Benefits Strategic Priorities Expected Benefits...27 i

4 Asset Management Strategy Report Executive Summary The District of North Saanich (DNS) has engaged Opus International Consultants (Canada) Limited (Opus), to complete an Asset Management Strategy project. The project has consisted of: Determining the current state of asset management at North Saanich; Setting out asset management goals for the District; Determining options for achieving these goals; and Recommending actions to implement and improve key asset management practices. North Saanich is well-equipped with the data, tools, and procedures for traditional management of infrastructure assets. However, staff recognized that the District would benefit from an overall strategy to optimize the use of available tools and share asset information. The strategy also defines areas for improvement where enhancements can be made to assist decision-makers and support sustainable service delivery. The top 5 recommended actions in priority order are; # Priority Actions Recommended Tasks for each Priority Action 1 Improve information for Financial Preparedness o o Complete a market valuation of all assets Calculate current infrastructure funding gap 2 Control Data Integrity o Define management procedures to maintain accuracy of asset data o Define governance procedures to control secure access to asset data 3 Link existing Datasets o Design and document an intelligent asset identification system to link existing asset datasets. o Complete a pilot project to assign identifier codes to link an asset group in the TCA database with the same assets in the GIS system. 4 Create an improved Asset Inventory o Collate best available asset information into a single corporate dataset to allow sharing of information across departments 5 Increase efficiency of Asset Reporting o Design and document improved procedures for TCA reporting using the proposed Corporate Asset Registry dataset 1

5 Asset Management Strategy Report 1 Introduction 1.1 Project The District of North Saanich (DNS) has engaged Opus International Consultants (Canada) Limited (Opus), to complete an Asset Management Strategy project. The project has consisted of: Determining the current state of asset management at North Saanich; Setting out asset management goals for the District; Determining options for achieving these goals; and Recommending actions to implement and improve key asset management practices. North Saanich is well-equipped with the data, tools and procedures for traditional management of infrastructure assets. However, staff recognized that the District would benefit from an overall strategy to optimize the use of available tools and share asset information. The strategy also defines areas for improvement where enhancements can be made to assist decisionmakers and support sustainable service delivery. This report sets out a customized strategy for asset management improvements. It documents recommended actions to achieve specific asset management goals, and it is intended as a Corporate Plan to be presented to Council for approval. 1.2 Asset Management Background Asset management is about providing the right information, tools, analysis, policies and procedures to help North Saanich make good decisions about their assets, funding needs, and the service those assets provide to the community. These assets are the water, sewer and stormwater infrastructure, buildings, roads, sports fields, playgrounds and parks, and fixed infrastructure to support the fire service. The key focus of good asset management practice is to: Provide better information to decision-makers; Implement better ways to make decisions; and Align actions to goals. 2

6 Municipalities are under increasing pressure to provide and demonstrate responsible stewardship and sustainable service delivery in an environment of aging infrastructure and limited funds. This is very challenging. However, North Saanich Staff, through this asset management initiative and by collaborating across departments, have already set the foundation for identifying the current and future infrastructure needs and what funding implications this will have for North Saanich. The North Saanich project team was comprised of the Manager of Engineering Services, Manager of Finance, and Manager of IT & GIS. This combination showed the commitment of North Saanich staff to cross-departmental integration and defining best-for-community outcomes through-out the project. There is a high level of understanding among staff that a sustainable future for North Saanich requires that infrastructure assets (particularly sewer, water, stormwater and transportation assets), are managed in a way that actively considers economic, environmental, and community aspects of North Saanich (now and into the future), whilst maintaining high levels of health, welfare and fiscal prudence. They know what needs to be done, and this project has helped them to prioritize specific tasks to start achieving these goals. 1.3 Purpose of Strategy The purpose of the Corporate (District of North Saanich) Asset Management Strategy (CAMS) is to specify key asset management outcomes and required actions. The strategy articulates why and what the District proposes to achieve in asset management and includes a list of key actions necessary to achieve this. This Asset Management Strategy provides guidance to assist those responsible for delivering and managing infrastructure assets and it seeks to implement practices that minimize risk, provide value-for-money benefits, and promotes sustainability. 1.4 Mandate from Corporate Documents The Asset Management Strategy supports the DNS Strategy Plan ( ) and the DNS Financial Plan ( ). It promotes good stewardship of public assets and provides information to help DNS Staff to identify the affordable balance between level of service (quality and quantity) and cost of service without compromising the treasured social and environmental aspects of the District. 3

7 1.4.1 North Saanich Strategic Plan The following Vision and Value statements from the District s Strategic Plan clearly demonstrate the commitment of North Saanich to managing its assets in accordance with industry recognized best practice Asset Management: Vision: (that) efficient levels of service commensurate with appropriate taxation are established Value: (to) ensure outstanding stewardship of public assets and the environment The Corporations commitment to Asset Management is further supported by the following Mission Statement and specific Strategies (ref. North Saanich Strategic Plan ): Mission The Municipal Purposes outlined in the Community Charter, further detail the purposes of the District of North Saanich: Sec. 7. The purposes of a municipality include (a) Providing for good government of its community, (b) Providing for services, laws and other matters for community benefit, (c) Providing for stewardship of the public assets of its community, and (d) Fostering the economic, social and environmental well-being of its community. Strategies Develop a corporate asset management plan Examine the District infrastructure gap, develop a program and policies to ensure replacement capacity and ensure reserves are adequate for future needs 4

8 1.4.2 North Saanich Financial Plan The District s Financial Plan also provides clear commitment to implementing key Asset Management Practices. The following Objective and Policy Statements from the Financial Plan demonstrate that the District is actively seeking to establish long term financial sustainability for assets and services. Objective: The District will identify all Capital Assets and establish a replacement and funding plan for each Policy: The District will implement the Tangible Capital Asset Management program which will identify and establish a replacement and funding plan 5

9 2 The Strategy This report presents a unified Corporate Asset Management Strategy (CAMS), which considers all of the District s needs related to asset management and service provision as a whole. It is the result of staff effort guided by specialist advice and a high level of integration and collaboration between all departments in the pursuit of improved decision making. 2.1 Asset Management Vision To be truly sustainable, it is essential to balance the community s expectations for level of service (quality and quantity) with their willingness and capacity to pay for these services. Many municipal services are reliant on fixed assets (infrastructure) to support them. These assets must therefore be managed using a balanced approach that considers long term cost of service and impacts on quality and availability of service. Maintaining affordable service levels requires informed decision-making and good decision processes. Whole of life costs for assets (install price, operations and maintenance costs, and replacement or disposal cost), must be understood so that decision-makers can ensure that the appropriate investment is being made at the right time during the asset s lifecycle for the best long term outcome. The Asset Management Vision for North Saanich is therefore: To promote sustainable services by implementing corporate asset management practices to; 2.2 Objectives 1. Capture, analyze and report information on the life-cycle of municipal assets, and 2. Facilitate informed and effective decision-making. The objectives of this strategy are to: Develop and maintain effective asset management processes, accountability and direction across the organization Capture, control and maintain relevant and reliable asset related information for informed decision making Effectively and efficiently manage all physical assets under Council s control through all phases of their lifecycle Ensure asset investment decisions consider the total cost of ownership and balance the funding for investment in new/upgraded assets with the investment in maintenance and renewal of existing assets 6

10 2.3 Key Focus Areas Key focus areas in the development of a strategy for North Saanich were: processes, workflow including collaboration and integration between departments, asset data and inventory, and data systems and applications. Recommendations are provided for: Processes, applications, and responsibilities around maintaining asset information and asset management processes Methods for assigning unique asset identification numbers Processes and applications to integrate infrastructure data with GIS Procedures and controls to protect the integrity of financial, asset, and property data Processes or workflows that will add costing information to new or upgraded assets and asset disposals, write-offs, capitalization and amortization Systems and applications for long term capital planning and financial forecasting Componentization of municipal assets Displaying and analyzing asset information for planning purposes Centralized database use and strategies to minimize data duplication Resources required to maintain asset management processes and applications Workflows between multiple departments and applications that will ensure a collaborative, sustainable process for management of District assets Change management processes 2.4 Recommended Actions The highest priority tasks for the District of North Saanich to complete are set out below. These tasks will assist District staff to achieve desired outcomes for decision-makers and for the community (refer to Appendix A (Project Report #2) Long Term Goals for Asset Management). The tasks are ordered for: Greatest cost benefit Importance to implementing desired asset management practices Degree of positive or negative impact on informed decision-making 7

11 2.4.1 Asset Valuation & Estimated Funding Gap Task A. Complete an assessment of the current monetary value of the assets owned by the District, including the cost to replace assets today and the value of current assets considering their age. Determine unit rates for asset replacement costs Document process for updating rates Document policy for valuation review frequency Undertake Valuation B. Use asset values and average expected asset life to determine when assets need to be replaced and the funds required to replace them (i.e. long term asset replacement plan). Rationale Determine average life span values for each asset type Determine most likely fail year Report summary of results Graph expected asset replacement costs by year and identify average annual cost over 20 yrs. Besides knowing what assets you have, knowing their replacement cost and timing of replacements is one of the most critical inputs to asset management decision making. This information should be readily available to guide decisions on operation and maintenance, replacement, disposal, and upgrades. Knowing the financial status of assets helps decision-makers to choose the right investment to make at the right time to get the longest useful life out of the asset at the lowest total cost. An early indication of the financial status of sewer and water assets is provided in Project Report #3 - Overview of Utility Infrastructure. However the information is based on current TCA data relating to 2008 and work needs to be done to update values for current market rates and establish procedures and controls for updates. Resource Options All of the following options have benefit. 1. Complete tasks in-house 8

12 2. Consultant to complete tasks while working in-house on assignment 3. Engage consultant to complete tasks and report back. Discussion Internal resources may not have availability to complete the task in a timely manner. External resources provide independent assessment and typically have access to more resource and reference material relevant to the task. Internal resources however have greater understanding of the assets. It seems therefore that a close collaboration will provide the best benefit to North Saanich. For this reason we recommend that a consultant be engaged for the work but that the consultant is required to complete the task on-site. This ensures maximum control of the work by DNS staff, a high level of collaboration and knowledge transfer (i.e. DNS staff will learn from working alongside consultant and be in a better position to do the next project in-house), and it ensures that the work will be done quickly because while the consultant is on site they will not be doing work for other Clients. Recommendation Engage Consultant to work on-site alongside DNS staff to assess and report asset valuation and funding gap for all existing assets. 9

13 2.4.2 Data Roles, Procedures & Controls Task A. Define Data Governance for asset information. Document roles, responsibilities, and access security for updating, managing, and improving asset attribute information. B. Document processes for updating attribute information on new and existing assets, routine maintenance, scheduled and unscheduled repairs, upgrades, asset value, condition, useful lives, and enhancements. C. Provide appropriate level of Asset Management Training for affected staff. Rationale The quality of information provided to decision-makers has a direct and potentially significant impact on decisions. Municipal decision-makers need accurate and complete asset data. It is very important that asset data is well managed to give decision-makers confidence that they can rely on the information being provided to them. Appropriate management requires that; Roles relating to responsibility for asset data are clearly defined Accountability for asset data is assigned Procedures and controls are documented for maintaining data The accuracy and completeness of asset datasets is measured and reported. The future for the District is shaped by decisions made today and each day. The organization should therefore take all reasonable steps to ensure that information used for decision-making is based on the best available, up-to-date, complete, and accurate asset data. It is also recommended that DNS makes provision for Asset Management Training. This will greatly assist the process of change management for the assignment of Asset Management Roles, Procedures and Controls. Without provision of relevant training, staff may be unsure of how implementation of asset management will assist them and this may hinder the ability to fully realize the benefits of asset management. Resource Options This task can be done by internal or external resource. Both options have some advantages. It is not suitable for a junior resource. 10

14 For part A (Data Governance), an external resource would provide an independent view of appropriate organizational structure. This can be a useful start for the organization. However, senior management must eventually be involved to ratify any recommendations. This is because outcomes of this task will potentially affect staff and may require changes to job descriptions or terms of employment. Affected staff should be consulted and may require training to take on a recommended role. For part B (Data Procedures), best results are more likely to come from a collaborative project between District Staff and relevant external Specialists. An Asset Management Specialist can provide essential advice, guidance, and if necessary, resource, however District Staff should maintain control on the process and outcomes, and be an active participant in the development of new processes. Ideally, an initial review of current procedures and recommendation of ideal practice should be completed by an external resource, who is independent of current systems and is knowledgeable of industry best practice. This would provide valuable information to assist internal resources with the final development, approval and implementation of new procedures. However although an external specialist can provide independent assessment of ideal practice, internal resources must advise on local considerations such as staff skills, employment agreements, current procedures, reporting requirements or similar issues. Therefore collaboratively the specialist adviser and the internal staff can adjust the ideal practice to best appropriate practice for North Saanich. It is unlikely that DNS will have suitable in-house resource experienced in delivering the relevant Asset Management Training. Therefore it is likely that an external resource will be the most effective option for this task. Recommendation Engage Asset Management Specialist to work with District Saanich Staff on site to define Data Governance and Data Management procedures. This project should include provision of asset management training. 11

15 2.4.3 Unique Asset ID Codes Task A. Establish an asset identification system to link existing asset datasets and design sufficient intelligence in the labeling to make these identifiers useful for operation and maintenance purposes as well. Define a unique asset identification code system Develop and document procedures/process for assigning asset identifier codes (for existing assets and for new assets) Document and assign responsibilities for implementing process B. Assign new asset identifier codes to all existing assets. Rationale Assign codes to all existing assets. Assets must have a unique identifier to differentiate records for one asset from another. Most municipalities have developed several different code systems, name conventions or numbering to identify assets for different purposes at different times. As a result it is quite typical in municipalities that more than one department will have records relating to the same infrastructure asset but that each departments records are in separate data sets, each with their own identifier system. The situation at North Saanich is therefore typical with key information on infrastructure assets being stored on AutoCAD drawings, in GIS tables, in a TCA (PSAB 3150) Financial Reporting system, and in various other MS Excel and Word documents, paper records and other data sets. District Staff are facing the same challenges as many other municipalities who are looking for improved data management and data integrity, whilst also seeking to reduce effort required for updating and analyzing asset data. The solution lies in gaining the efficiency which comes from increased coordination of information across departments, reduced duplication of datasets, and controlled management. A significant impediment to this process however, is the difficulty to match records in one department s data set to those in another department because of the many different identifier systems in use. It is therefore imperative to data integrity, to establish a single corporate asset identifier system and apply this to each existing dataset. All relevant information within the organization can be 12

16 collated into a single corporate inventory that will provide the most complete and accurate asset information to decision-makers. Resource Options Part A: Developing an identifier code system and a procedure for assigning unique asset identifier to existing asset records and future records can be done using in-house resources with advice from an Asset Management Specialist. Some of this advice has already been provided under the AM Strategy project. An experienced external resource could also assist with writing relevant computer scripts for auto generation of ID codes. If suitable internal resources are not available, the entire work could be completed as a separate project by suitably qualified and experienced external resources. Part B: Updating existing asset records with the new identifier codes can also be done with inhouse resources provided that capacity exists to complete this work in a timely manner. Alternatively student or non-specialist resource could complete this work provided they were adequately trained and supervised. The main issue for North Saanich would be availability of suitable Staff to undertake the work or supervise others. It is therefore recommended that a pilot project be completed using internal resources and that the amount of effort required and time taken to complete the task is monitored and reported. On completion of the pilot project a decision should be made whether to continue with internal resources or to engage external resources to complete the balance of the work. Recommendation Use internal resources (North Saanich staff) to design and document an intelligent asset identification system to link existing asset datasets, and to complete a pilot project to assign identifier codes to link one asset group in the TCA database with the same assets in the GIS system. On completion of the pilot project a decision should be made on whether internal or external resources should be used for the remainder of the asset datasets. 13

17 2.4.4 Determine & Collate Best Available Data Task A. Determine and document which attribute information will be recorded to support decision making and development of asset life-cycle strategies. B. Having determined which attribute information needs to be recorded to support decision making, the District then needs to collate the best information from all available sources. This task will include the following sub-tasks; Rationale Identify the best asset inventory and attribute information from the various data sources currently available Consolidate all asset inventory and attribute information into a single Centralized Geo-database (this includes existing elements of data from TCA financial data, GIS, AutoCAD, and other infrastructure datasets) Create field for status of attribute data and record whether data is "verified" or "assumed" Collecting and maintaining data can be a significant expense therefore all recorded information should have a known use and purpose. The accuracy and completeness of datasets should be appropriate to what it is to be used for. Therefore the level of data control, quality assurance, cost to obtain, and level of detail recorded should be decided in the context of how and for what the data is going to be used for. Not all data needs to be 100% and not all things need to be recorded in controlled datasets. North Saanich already has very good asset data however information exists in separate systems in different departments. Some records are paper based and others are in electronic forms suitable for the intended use by the relevant department but not suitable to integrate and share across departments. Each department is generally responsible for keeping their records up to date, which has been the traditional data management model for most municipalities. Looking forward however, District Staff see the opportunity for; Sharing of data to develop greater understanding about the assets Reduction of duplicate data sets and effort to maintain them Collaboration across departments to manage one comprehensive, corporate data set 14

18 Integration of existing information into a single standard format to allow better predictive modeling across all services and tracking of interconnections and dependencies between different asset groups Increased confidence in the accuracy and completeness of information provided to decision-makers To realize these opportunities, existing datasets need to be compiled into one centralized Geo- Database holding all corporate asset information. A single corporate asset register will increase efficiency of effort, decrease opportunity for error, improve information available to decisionmakers, provide greater confidence and control on accuracy of information, and provide opportunity for advanced analysis for forecasts. Resource Options Part A: Determining which datasets to use for asset attribute information should be completed in-house (DNS staff) as they are in the best position of knowledge about the accuracy and confidence of existing datasets. Some benefit however could be derived from first doing an independent data audit by an external experienced resource. The results from an independent audit would assist internal staff in making decisions about which records to use for populating asset attribute information in the corporate data registry. Part B: Collating asset information into a single corporate dataset should ideally be done by internal resources where there is the capacity to complete the work in a timely manner. Where capacity does not exist, some temporary, seconded, or external resources may be required to supplement existing resources to complete the work within desired timeframes. Delays in the consolidation of asset data will significantly impact the ability to provide improved quality of information to decision makers. Therefore determination of how the work is to be completed must consider timeliness as well as cost. Recommendation Use internal resources (District Staff) to collate best available asset information into a single corporate dataset to allow sharing of information across departments. Include an allowance for relevant specialist advice (and resource assistance if required). 15

19 2.4.5 Integrating TCA Reporting Task A. Improve data maintenance procedures for TCA dataset. This task will include the following sub-tasks; Rationale Create export of asset data from central database for future TCA reporting. Match historical values from TCA to newly componentized assets in central database. Document processes and responsibilities for updating asset component costs including new assets, asset disposals, write-offs, capitalization, and amortization Document process and responsibilities for assigning costs to new assets TCA reporting is a legislated requirement that needs asset data. Like many other municipalities, the procedures and tools to manage the data to support TCA reporting for North Saanich are located in and managed by the Finance Department. The assets that are being reported on however, are the same assets that Engineering Services and operations and maintenance staff also have records on. Currently whenever there is a change to asset data, the change has to be manually entered into the TCA separately from entry into the GIS or Engineering Services drawings and datasets. In addition to this, costs for new assets and replacement assets constructed under contract are being determined by finance staff when they should more accurately be determined by suitably qualified and experienced engineering staff. It is easy to see therefore that significant improvement in quality of information and efficiency of data management can be achieved if the TCA reporting was based on a suitably managed and controlled corporate inventory where Engineering Services manages the asset information including the assessment of installation cost and Finance controls the subsequent cost calculations and reporting. Resource Options This task can be done by internal or external resource. Both options have some advantages. It is not suitable for a junior resource. An external resource would provide an independent view and could be dedicated to complete the work quickly whereas internal resources would need to fit this task in and around other work requirements. Internal staff however, have intimate 16

20 knowledge of current systems and staff capabilities. Senior management must eventually be involved to ratify any recommendations because the outcomes could potentially affect staff and may require changes to job descriptions or terms of employment. Affected staff should be consulted and may require training to do a recommended role. For this reason we recommend collaboration between internal resources maintaining overview and control of the task but using external resources to research and develop the first draft for the documented processes. Recommendation Use internal resources (District Staff) in collaboration with external resource (Asset Valuation Specialist) to research and document improved procedures for TCA reporting using the proposed Corporate Asset Registry dataset. 17

21 2.4.6 Work Order and Asset Management System Task A. Implement work order system and associated reporting processes, including staff training. B. Implement a centralised asset management system and use for: recording operations, maintenance, and replacement costs against assets, performance tracking, life-cycle management (operations, maintenance and replacement), and forward planning. Rationale A central requirement for advancing asset management practices in any organization is the recording of maintenance costs against individual assets. An efficient way to achieve this is the use of a work order system where staff time, material costs and plant hours can be recorded against a work order generated as the instruction to undertake items of work on particular assets. Such a system also allows the pre-programming of scheduled and preventative maintenance tasks as well. This allows the organization to efficiently organize work and track that these tasks are completed. It records these tasks and the frequency that they need to be completed in the system so that even when there are staff changes, the items that need to be done are notified when they are due so that nothing is overlooked. The maintenance history and costs in the work order system can be analyzed periodically to determine true cost of service. This information is used to inform operation and maintenance decisions to identify opportunities for efficiency and subsequent cost savings. The information can also be used to identify and program asset replacement work when it is no longer cost effective to continue to repair aging assets and they should be included in the following years program for replacement. Many other pieces of valuable information about the assets can be recorded in the work order system and staff can progressively improve and share their knowledge of the infrastructure. Summary reports for example can be automatically generated on the state of the infrastructure to track that current expenditure on maintenance and replacement works it keeping the assets in a steady state of good repair. Resource Options There are two options for resourcing this task. 1. System implemented by existing staff with support from software vendor, assigning a staff member responsibility for the roll-out. 18

22 2. Engage an AM Specialist to assist in embedding the system into day to day work and decision making, and to manage collaboration with vendor and inputs from existing staff. If this option is selected, North Saanich should require that the AM Specialist implements a structured plan to transfer knowledge to in-house staff through provision of training and implementing a change management and transition plan. Ideally the bulk of the work should be completed in-house. However as there is a considerable amount of one-time work in the set up/configuration and implementation phase, this would put a lot of strain on workload and is likely to adversely impact staff time for normal day-to-day activities. In addition to this, a well implemented system requires advanced asset management knowledge which is still being developed in North Saanich therefore to complete the work inhouse would put the District in a position of heavily relying on the vendor (who has a bias of trying to maximize sales) for advice and guidance. There is considerable advantage to the District therefore of engaging their own Asset Management Specialist who is independent of the software vendor, to ensure implementation is optimized to the District s needs. This person can also set up all the internal processes and training needed to support successful transfer from current practice to the use of the work order system. Such a person would be directly accountable to the District and be an advocate for what is best for the District long term. For these reasons, we would recommend engagement of a suitably qualified external specialist (Option 2) to advise and assist existing District staff and be responsible for managing implementation of the work order system. Recommendation We recommend engagement of a qualified Asset Management Specialist to provide advice and manage a project to implement a suitable work order system selected by North Saanich. 19

23 2.4.7 Level of Service and Cost of Service Task A. Develop and document process to determine levels of service and cost of service for each service area. B. Identify key performance indicators (KPIs) for each level of service and develop performance measures for these. C. Develop a process to enable tracking and reporting on performance measures and levels of service. D. Develop a process to enable tracking and annual reporting on cost of services for each level of service. Rationale North Saanich does not currently have suitable definitions of current or desired levels of service. The performance measures that are in place are reasonable for reporting. They are not however the best measures to use to optimize levels of service or to inform decision makers on whether current service will remain affordable as the various assets age and require more maintenance. Resource Options Options for this task include: 1. Document in-house: all departments develop their own levels of service, performance indicators, calculation of cost of service, and processes to translate results into improvement actions. 2. Document in-house: assign a staff member responsibility for developing the levels of service, performance indicators, calculation of cost of service, and processes for all assets. 3. Engage a consultant to develop the methodology and process and to work with all departments to develop the specific levels of service, performance indicators, calculation for cost of service, and processes as necessary to achieve desired outcomes. 4. Engage an external Asset Management Specialist to work on site for a fixed period of time to guide the development of all the necessary elements, as well as training, mentoring, and assisting staff with implementing these elements.. 20

24 Recommendation We recommend that the District does not make a decision on the resource option until at least 3 of the top 5 tasks have been completed. Staff will have more of an understanding of principles of asset management and be more able to undertake this work themselves. Alternatively if staff time is limited, the organization will have a better idea of whether having a consultant work on site with staff to do the work is best or whether they can out-source the work and have it completed off-site. 21

25 2.4.8 Asset Condition Task A. Develop and document processes and responsibilities for updating asset condition information for each major asset group. B. Develop and implement procedures for field staff to determine asset condition information from visual inspections when they do work on an asset and to record this information in the corporate data base. C. Design and implement procedures to track maintenance and repair work history against individual assets using the asset ID number. D. Design and implement a process to translate individual asset condition values to a universal rating system so that overall state of each asset group can be compared at a corporate level for funding decisions. Rationale Monitoring the physical state of assets provides valuable information for determining the most appropriate intervention treatments. It is also used to determine the economic service life of your assets, and this knowledge helps to prevent serious sudden failures of critical assets. Not all assets need to have condition data recorded and condition rating of relatively young assets with little risk of failure is unlikely to provide sufficient benefit versus cost to do the work. It is necessary therefore to assess the cost benefit of condition rating methods and to develop an optimized condition rating plan. Where specific condition rating is not cost effective or deemed to provide little benefit to decision makers, the age of the asset can be used as an approximation of its expected remaining life for the purpose of renewal planning. Resource Options Options for this task include: 1. Development and implementation of individual condition rating plans for each major asset group, completed by District staff 2. Development and implementation of an integrated condition rating plan for all major asset groups, completed by a single staff member or by an in-house team of District staff 3. Engagement of an external consultant to complete the work in consultation with District staff. 22

26 4. Engagement of an external resource to work on-site with District staff to complete the work Recommendation We recommend for the same reasons as stated in task above, that the District does not make a decision on the resource option until at least 3 of the top 5 tasks have been completed. This is because the District will be in a better position of knowledge after the experience of those initial tasks, to determine the resource option that will work best for them going forward. 23

27 2.4.9 Improvement Plan Task A. Review asset management work completed to date B. Complete a gap assessment to identify further improvement tasks C. Prioritize improvement tasks and revise the asset management strategy to replace completed tasks with new improvement tasks Rationale Asset management is a process of on-going improvement to generate better information, better ways to making decisions, and alignment of day to day business processes with the strategic goals of the organization. It is necessary therefore to reassess the state of asset management in the organization as improvements are implemented. Resource Options It is expected that District staff will by this time have sufficient expertise in asset management to undertake the review and gap assessment in-house. The only limiting factor may be the availability of staff to devote sufficient time to the task given that they have many other responsibilities. For this reason it may be prudent to engage an external asset management Specialist to assist staff with the process. District will be able to make this judgement call closer to the time that this task will be required. Recommendation We recommend that District staff undertake a review of implemented asset management practices and determine what additional improvement tasks are warranted in the pursuit of a state of affordable, sustainable service delivery for the District. 24

28 Tracking Sustainability Task Improving understanding of sustainability status; A. Document and maintain a register of sustainability programs that are currently implemented or scheduled. B. Develop process to measure and report effectiveness and benefits of sustainability programs. C. Identify sustainability goals for each asset group and seek approval for goals from Council. D. Complete sustainability assessment (annually) comparing current progress with sustainability goals Rationale The current state of sustainability is not clearly defined, therefore the gap between current and desired state is not known with any certainty. Resource Options It is expected that District staff will by this time have sufficient expertise in asset management to undertake the necessary tasks to assess and track sustainability indicators in-house. The only limiting factor may be the availability of staff to devote sufficient time to the task given that they have many other responsibilities. For this reason it may be prudent to engage an external asset management Specialist to assist staff with the process. District will be able to make this judgement call closer to the time that this task will be required. Recommendation We recommend that District staff undertake the tasks for improving understanding of how sustainable current service delivery is and to track sustainability indicators. 25

29 3 Asset Management Benefits 3.1 Strategic Priorities Good asset management will have a positive influence on all of the District s strategic priorities because asset management promotes informed decision-making, responsible stewardship, and accountability. The strategic priorities to Maintain a safe and healthy community and Ensure strong leadership, fiscal responsibility and transparent government will be particularly benefited by the Corporate Asset Management Strategy (this report) and the actions recommended for the District. 26

30 3.2 Expected Benefits Implementing this strategy (the North Saanich Corporate Asset Management Strategy) will provide the following benefits; Increased knowledge of existing infrastructure Tracking and reporting on the quality and cost of service delivered Easier access to relevant information for decision-makers and for forward planning Demonstrated evidence of good governance and responsible stewardship. 27