5 Asset Management Strategy

Transcription

1 5 Asset Management Strategy 5.1 Non-infrastructure Solutions The LOS ensure that adequate system capacity is provided and that the infrastructure is maintained in a state of good repair. A number of non-infrastructure solutions have been implemented to assist in meeting these LOS. Travel Demand Management and Active initiatives within the Master Plan assist in extending the life of assets by reducing singleoccupant vehicle usage and providing additional road capacity. The continuation of Smart Commute Halton P26 and the planning of High Occupancy Vehicle Lanes also reduce single-occupant vehicle usage and provide additional road reserve capacity that can extend asset life. Signal optimization and progression studies are undertaken on a programmed basis to ensure that existing system capacity is optimized through the adjustment and coordination of signal timing. Load restrictions are applied to extend pavement life on certain secondary roads where the pavement structure could be impacted by full truck loads. P27 Coordination of water and wastewater construction with transportation improvements reduces the impact of construction activities on the community and minimizes pavement cuts which reduce the life of the pavement structure. Joint contracts with the local municipalities help to minimize construction impacts for residents and lower project costs. As part of the Asset Management Strategy, certain infrastructure elements such as streetlight luminaires are run to failure. Other elements such as traffic signals and traffic controllers are replaced on a programmed basis because of the potential impact of failure. This strategy ensures that life cycle costs associated with various infrastructure elements are minimized. Halton Region Asset Management Plan

2 Water The Water division implements the following noninfrastructure solutions to help lower costs and/or extend the asset useful life. Optimization Program for Linear Assets and Plants has enhanced facility performance and capability which has resulted in process improvements. Through Supervisory Control and Data Acquisition (SCADA) automation of equipment, operating cost savings are achieved and asset life is extended. Water Efficiency Outreach and Conservation programs promote efficient water use and may contribute to the potential deferral of capacityrelated upgrades to the water system and reduction of peak-day water demands on the existing water system infrastructure. Joint contracts with the local municipalities help to minimize construction impacts on residents and to lower project costs. Where possible, Water Services combines projects with other programs such as and Wastewater to minimize construction impacts for residents and minimize project costs. Wastewater The Wastewater division implements the following non-infrastructure solutions to help lower costs and/or extend the asset useful life. Optimization Program for Linear Assets and Plants which has enhanced facility performance and capability and has resulted in process improvements. Through SCADA automation of equipment, operating cost savings are achieved and asset life is extended. Preventative maintenance and spot repair programs ensure assets continue to operate at an acceptable LOS. Annual Maintenance Flushing Program and flushing of wastewater main trouble sections help to remove debris, grit, grease, etc., ensuring main capacity and operation aren t compromised. Basement Flooding Prevention Subsidy Program P28. The program offers a one-time subsidy, up to a maximum of $2,725, to assist residents who: 1) have a history of basement floods caused by a backup or surcharge of the sanitary sewer system; or 2) Halton residents who have not experienced flooding but would like to correct improper storm water connections and install a backwater valve. Halton Region Asset Management Plan

3 Joint contracts with the local municipalities help to minimize construction impacts for residents and lower project costs. Where possible, Wastewater Services combines projects with other programs such as and Water to minimize construction impacts on residents and to minimize project costs. Waste Management The Waste Management division implements several non-infrastructure solutions to help lower costs and/or extend the asset useful life. Through these initiatives, the landfill site life has expanded from 20 years to a projected 53 years. Key initiatives/programs, implemented between 1996 and 2007, that helped to accomplish this are outlined below. Introduction of yard waste collection (1996) Residential bag-limit reduction from 9 to 6 bags (1996) Residential grass ban (yard waste collection) (2002) All rural residents received Blue Box recycling collection at their home (2004) Special events (tire amnesty, Environment Days, Household Hazardous Waste (HHW) Days, etc.) Backyard composter subsidy Diversion of additional materials at the container station: electronics, drywall, wood, etc. Non-profit Reuse Subsidy Program Enhanced communication materials such as calendars and newsletters In 2008, a variety of new diversion programs and waste collection contracts were implemented that had a substantial impact on reducing the incoming waste tonnage to the Halton Waste Management Site (HWMS). Incoming tonnage was reduced from 126,000 in 2007 to 74,000 in The Green Cart Collection Program alone diverts 27,000 tons from the HWMS facility annually. Furthermore, apartment waste and Industrial, Commercial and Institutional (ICI) waste collected by the Region via contract agreements with private haulers is not disposed at the HWMS. Additional programs/initiatives that have been implemented since 2008 include: Multi-residential diversion Service level changes including waste collection from weekly to bi-weekly, Blue Box and Green Cart collection from biweekly to weekly, and metal collection call-in Enhanced promotion, education and outreach Expanded Blue Box material collection (plant pots, other plastics) and capacity Expanded special waste drop-off events Residential bag limited from 6 to 3 bags and bag tags Diversion of incoming waste leads to lower asset depletion and therefore delays the asset replacement time. Halton Region Asset Management Plan

4 5.2 Maintenance Activities The Road Maintenance LOS define activities to be carried out in the areas of safety, preservation and quality of life, and establish the timeframes within which those activities will be completed. The LOS ensure that the Region s maintenance activities meet or exceed the provincially-mandated Minimum Standards for Municipal Highways (MMSMH). Weekly routine patrols undertaken to identify system deficiencies are supplemented by spring and fall night tours which are conducted to observe luminaires, safety devices, pavement markings and monitor sign replacement. This allows for better infrastructure planning and allows for the life of assets to be optimized based on actual performance rather than replacing assets on a fixed timeframe. Scheduled inspections of critical structural assets including bridges and culverts are conducted biannually. The Region s pavement management system is used to identify and prioritize road rehabilitation and renewal requirements, while specific project-level testing of roadway pavement is completed to ensure that the rehabilitation methodology is optimized. Based on data collected, localized resurfacing, crack sealing and renewal of pavement markings are conducted on an annual basis as required. More substantial road resurfacing and structural rehabilitation work is programmed for delivery as part of annual resurfacing and rehabilitation programs as described in section 5.3 Renewal/Rehabilitation Activities. Water The following maintenance programs are in place to ensure reliable operation of the system and high water quality. valve preventative maintenance hydrant preventative maintenance watermain flushing program watermain swabbing program Scheduled inspections of reservoirs, pumps, electrical controls, standby generators, as well as facility capital needs assessments, ensure continued operation of all facilities. Watermain leak detection studies are conducted to locate and repair small leaks in the distribution system from pinhole breaks and improperly installed or corroded joints and fittings. Wastewater The following maintenance programs are in place to ensure reliable operation of the wastewater system. Halton Region Asset Management Plan

5 Spot Repair Program perform minor repairs for deficiencies identified by operations staff and CCTV inspection reports. (Refer Appendix PW13 for a snap shot of CCTV.) Annual Maintenance Flushing Program and Flushing of Linear Trouble Sections - help to remove debris, grit, grease, etc., to ensure sewer main capacity and operation aren t compromised. Manhole Inspection Program maintains manholes in good working condition through condition assessment reports and from field observations. Preventative Maintenance Program performed as recommended by the original equipment manufacturer (OEM). Inspection, testing and calibration of electrical, mechanical, instrumentation and control equipment is performed and documented by fully-trained and qualified technicians. CCTV Inspection Program ensures every sewer main in the collection system is inspected at a minimum every one in 20 years. Waste Management The following maintenance programs are in place to ensure reliable operation of the waste management system. Preventative Maintenance Plan - involves weekly inspections of all pumping stations and measuring and control systems in order to ensure reliable operations. Annual Maintenance Plan - mechanical and electrical for all pumping stations, and measuring and control systems. Annual Leachate Collection System Flushing Program - in place with additional CCTV inspection as needed. 5.3 Renewal/Rehabilitation Activities As indicated in the previous section, rehabilitation and renewal programs are developed based on data collected through ongoing maintenance and inspection programs. These activities include actions such as road resurfacing, structural rehabilitation and traffic signal controller replacement. Work required to rehabilitate and renew existing infrastructure is coordinated with replacement and expansion activities and incorporated into the Region s 10-year capital program on a priority basis (refer Appendix PW4). It is noted that the Region is in a period of significant growth resulting in rapidly increasing transportation demand and a corresponding growth in the Region s capital expansion program. Based on the Master Plan, P29 investment in system expansion is expected to remain at high levels until Halton Region Asset Management Plan

6 The investment in system expansion also impacts decisions with respect to timing of renewal and rehabilitation activities. In many cases, system expansion is required before an infrastructure element has reached the limit of its useful life. The impact of system expansion is considered in the development of rehabilitation and renewal plans. Water Systematic performance indicators of the linear water system are reviewed annually to identify locations requiring renewal/rehabilitation initiatives. The performance indicators are derived from the following. DWQMS HR-W88 Infrastructure Review HR-P37 Review and Provision of Infrastructure Additionally, Water Services has a Cathodic Protection Program that involves the installation of sacrificial anodes on metallic pipes to reduce rates of corrosion, allowing metallic pipes and/or pipe components to reach expected service life. Renewal/rehabilitation needs are also identified through ongoing maintenance,inspections and condition assessments. Wastewater In order to extend the life of an asset, Wastewater has several rehabilitation and renewal programs that are developed based on data collected through ongoing maintenance and inspection programs. Inflow and Infiltration (I&I) Program the Region is continuously looking to reduce the amount of I&I within the sanitary collection system. Studies have been undertaken to identify problematic areas of I&I within the wastewater system and catchment areas. Currently, structural and operational repairs are underway to address defects to stop the infiltration from entering into the system. This also facilitates the Basement Subsidy Program by helping homeowners to disconnect any improper storm water connections. Spot Repair Program perform renewal/rehabilitation activities for deficiencies identified by operations staff and CCTV inspection reports. Manhole Rehabilitation Program manholes identified with deficiencies either through condition assessments or field observations, are repaired either with lining or grouting. The Region s 10-year Budget and Business Plan renewal and rehabilitation activities are identified based on maintenance and condition assessments. Capital projects are prioritized based on growth, coordination with local municipalities, age and condition of the asset. Halton Region Asset Management Plan

7 Waste Management Renewal and rehabilitation activities are identified through the Preventative Maintenance Plan and the Annual Maintenance Plan outlined in the previous section. 5.4 Replacement Activities PW has a conceptual 100-year plan which covers the entire asset life cycle to estimate replacement activities into the future. P30 TCA data used for financial reporting forms the basis of the 100-year conceptual plan (refer to Appendix PW3). The 100-year conceptual plan illustrates the estimated investment level required in order to maintain assets in a state of good repair as infrastructure reaches the end of its service life. It should be noted that infrastructure that is nearing the end of its service life is assessed and the results trigger the necessary asset management strategy to continue operation that may include increased monitoring and maintenance, rehabilitation, replacement or run to failure. (Refer to Appendix PW3 for 100-year asset life cycle plans.) Additionally, in 2014, the 20 year capital needs for state-of-good-repair capital water and wastewater infrastructure were reviewed. This review was leveraged in the development of the proposed 2015 Capital budget for Replacement of infrastructure elements is considered in the same manner as rehabilitation and renewal activities. Long-term capital replacement requirements are incorporated into the 10-year Capital Budget based on life cycle estimates and are programmed based on detailed inspection data and project-specific needs. Replacement of infrastructure is being impacted by the need to provide additional system capacity where assets with residual useful life are being preserved through the expansion of the infrastructure system. 5.5 Disposal Activities All PW divisions follow an approved Purchasing Policy for Surplus and Disposal as part of the Purchasing Bylaw that was approved by Regional Council. Section 30 of the bylaw outlines the surplus and disposal of assets and related activities. Halton also has TCA and data verification policies that outline the disposal of assets and how those disposals are recorded in the financial records. Halton Region Asset Management Plan

8 5.6 Expansion Activities The Region is in a period of significant growth which in some cases has resulted in the renewal of existing road infrastructure before the limit of its useful life. To mitigate the impact of early replacement of assets, maintenance, rehabilitation, renewal and replacement activities are coordinated with required capital expansion. Within Services, the Region s current Master Plan, approved by Regional Council in November 2011, establishes capital improvements required to meet transportation demand arising from growth in the Region to 2031 (refer to Appendix PW14). Water and Wastewater The Sustainable Halton Water and Wastewater Master Plan identifies infrastructure required to accommodate growth within the 2031 planning horizon. In some cases, the plan addresses capacity needs for post-2031 growth where it is advantageous to construct at an earlier date (i.e. secure property at this time for major facilities where it is estimated future opportunities to acquire land will not exist). Waste Management Waste Management addresses expansion activities through analyses of population growth projections and capacity considerations for the waste management facilities. 5.7 Procurement Methods Halton Region s Council-approved Purchasing Bylaw P5 guides all procurement practices. The Purchasing Bylaw is supported by related internal policies and procedures. The key objectives of this bylaw are to: Encourage competitive bidding; Ensure objectivity and integrity of the procurement process; Ensure fairness between bidders; and Maximize savings for the taxpayers. The full bylaw is available on the Halton Region website. Procurement can include joint contracts with internal divisions and external municipalities/agencies through capital planning or development-related infrastructure planning. Halton Region Asset Management Plan

9 5.8 Risks Associated with the Strategy Within Services, risks relating to infrastructure failure are mitigated through inspection and maintenance programs which provide the necessary data to ensure that the work required to achieve the established LOS is identified. Annual capital and maintenance budgets ensure that funding to undertake the necessary work is provided. Through the annual Service Progress Report and updates to the Master Plan, Council has the opportunity to adjust LOS in the event that funding to meet current LOS cannot be provided. Water The DWQMS, HR-P28 Risk Assessment Framework and the HR-F63 Risk Analysis Framework are used to identify, assess and mitigate risk to the water system. The assessment looks at unit processes, identifies possible hazards, assigns a score to the risk, and identifies existing procedures to mitigate the risk. In addition, the Sustainable Halton Water and Wastewater Master Plan includes a detailed evaluation of water system servicing options. Evaluation matrices are used to compare and contrast various alternative solutions including the assessment of risks. Wastewater In combination with legislated regulations, Wastewater Services has several procedures and preventative measures to help assess and mitigate risk to the environment and to reduce risk of basement flooding. In circumstances of non-compliance,halton Region would report incidents to the MOE. If the issue of non-compliance is repeated or prolonged, MOE can specify corrective actions, including orders, fines and other measures. In order to mitigate the risk of wastewater infrastructure surcharging, the Region has overflows at critical control points, including treatment plants and pumping stations. If the system becomes surcharged with extraneous flows the overflow protects downstream infrastructure and connections. There is also an internal emergency response plan should a break or failure occur, allowing for a quick response time and repair. Waste Management Within Waste Management Services, risks include losing existing non-infrastructure solutions, limited availability of non-infrastructure solutions, unforeseen MOE requirements and unforeseen political directions. These risks are evaluated on an ongoing basis to ensure proper action can be taken to reduce the potential impact. Halton Region Asset Management Plan

10 5.9 Options Analysis Services undertakes an analysis of options in order to minimize life cycle expenditures in the maintenance, rehabilitation, replacement, disposal and expansion of transportation infrastructure. As previously stated, optimization of life cycle maintenance, rehabilitation and replacement activities is currently impacted by the need for rapid system expansion to Water and Wastewater Halton Region follows the Municipal Class Environmental Assessment (EA) decision-making process for the Water and Wastewater Master Plan and Schedule A, B or C projects. This process evaluates all feasible options and bases the evaluation on the following factors. natural environment socio-economic conditions cultural considerations technical environments life cycle cost The same considerations are applied to Schedule C Class EA Studies and detailed design for major works. Waste Management The approved Waste Management Strategy P31 took into consideration options relating to increased diversion rates in order to lower asset depletion. The options analysis considers the following in addition to the above Direct Benefits and Costs The Region s Master Plan identifies a number of policies and programs aimed at reducing single-occupant vehicles with an aim of minimizing the need for system expansion. These initiatives include: traffic demand management programs, provision of infrastructure to support high corridors (e.g. HOV), the development of an Active Master Plan, and signal optimization and corridor progression studies. All of these initiatives are in addition to Halton Region Asset Management Plan

11 programmed maintenance and rehabilitation works and are aimed at extending the life of existing infrastructure by optimizing system capacity. By optimizing system capacity, capital expansion projects can be deferred. Water The Water Efficient Toilet Rebate Program and Outdoor Water Use Management Strategy may contribute to decreased water demand reducing overall water production/transmission costs and potentially deferring expansions due to demand growth. Wastewater The Optimization Program for Linear Assets and Plants allows for enhanced facility performance and capability which have resulted from process improvements. Through SCADA automation of equipment, operating cost savings are achieved and asset life is extended. Also the I/I Program outlined under maintenance activities contributes to infrastructure operational performance. In addition, Halton s Basement Flood Prevention Subsidy Program, offers a one-time basement flood prevention subsidy up to a maximum of $2,725. This assists homeowners with disconnecting downspouts, weeping tiles and sump pumps from the sanitary sewer to the storm sewer. It also helps to prevent sanitary sewers from surcharging and reduces the amount of inflow that is treated at the wastewater treatment plants. Another benefit is the regained capacity in the sanitary sewer. Waste Management As per Waste Management Strategy , diversion programs lead to lower asset depletion and therefore a delay in asset replacement costs over time Indirect Benefits and Costs By implementing the Asset Management Strategy as described above, the community impact of construction and maintenance activities is minimized. For example, traffic management provisions within Regional construction activities are undertaken in a manner that minimizes the impact to the community. Through the Water Efficiency Outreach Program and Outdoor Water Use Management Strategy, water consumption is reduced. The Waste Management Strategy was developed with community involvement which translated into immediate buy-in to the changes being implemented. Such initiatives promote the well-being and health of residents and promote a positive Regional image. Halton Region Asset Management Plan

12 5.10 Asset Management Strategy and the Budget and Business Plan All of the above PW asset management strategies are considered in developing the annual budget and 10-year forecast following the process as outlined in Appendix PW15, PW Budget Process. These considerations ensure that the PW budget balances program needs and the impact on Halton residents by focusing on key priorities and commitments to service delivery. Projects are identified from a variety of sources, as described in this section of the AMP, including residential complaints, studies, maintenance history, age, condition and fire flows. Linear project cost estimates are based on average Halton tender prices from the previous year ($/m) while facility projects are typically based on costs provided by third party engineering firms retained by Halton. The projects are subject to internal prioritization, risk assessment and project drivers followed by collaboration with the Finance Department as described in Section 6 Financing Strategy. After this rigorous process, the budget is finalized and presented to Council for approval. 6 Financing Strategy Staff in the Financial Planning and Budgets division of the Finance Department are responsible for the development and monitoring of the Financing Strategy for all expenditures including those relating to infrastructure. 6.1 Financing Plan Development Capital Expenditures Through the annual budget process, capital project information is gathered from the PW program areas. The selection, expenditure development, and prioritization processes for the projects are described in Section 5 of this document titled Asset Management Strategy. As described in Section 5, the requested budget is reviewed with the program areas to assess the program needs, trends and priorities. The review includes actual costs incurred in the past for similar projects, as well as current costs to date for projects in progress to determine adequate project funding requirements. The Capital Budget includes a 10-year forecast, however, program areas maintain budget forecasts exceeding this time period. Once the requested budget is finalized, financing options for the request are determined based on the optimum funding structure taking into account the following key sources of financing. Halton Region Asset Management Plan