0.5 Implementation of a Risk-Centric Optimized Decision Making Approach to Corporate Asset Management at the Region of Peel Age (Years) 0 10 20 30 40 50 60 70 Condition Data80 Points of Interest Trend 1 1.5 2 Projects Technology Outputs ARM Report 2.5 Condition 3 3.5 4 4.5 140 Risk Management Strategy Level of Service Strategy Lifecycle Management Strategy ODM (Optimized Decision Making) Asset & Reserve Management Strategy State of Reserves State of Infrastructure 5 120 Strategic Asset Plan 100 Annual Budget ($M) 80 60 40 20 0 2010-2015 2015-2020 2020-2025 2025-2030 2030-2035 2035-2040 2040-2045 2045-2050 2050-2055 2055-2060 Required Funding 2060-2065 Year 2065-2070 2070-2075 Funding Strategy 2075-2080 2080-2085 2085-2090 2090-2095 2095-2100 2100-2105 2010 CNAM Workshop Ottawa, Ontario Troy Mander, Region of Peel David Baldesarra, UEM Consulting
The Region of Peel Almost 1.2 million people Over $14B in capital assets Public services include: Public Health, Long-Term Care, Police, Paramedics, Roads, Solid Waste Management, Housing, Homeless Support, Transhelp, Child Care, Water and Wastewater
CAM s Function CAM Provide an organizational perspective on state of infrastructure, asset needs and priorities Facilitate organizational asset decision making Assist the organization to improve service delivery Frontline Asset Management is the program s area of expertise!
CAM Framework & Projects Projects Technology Outputs ARM Report Risk Management Strategy Level of Service Strategies Lifecycle Management Strategies ODM (Optimized Decision Model) Asset & Reserve Management Strategy State of Reserves State of Infrastructure Strategic Asset Plan
Connecting Services to Asset TLOS Strategic Service Objective Customer Level of Service Affected Asset Class Risks Technical Level of Service Example: Pavement Potholes Pavement Condition Index = 70 A safe, reliable road network Safe Roads Structures Excessive Bridge Deck Cracking Bridge Condition Index = 80 Ancillary Road Assets Tilting Noise Wall Noise Wall Condition Index = B
Risk Profiles Unmitigated/ starting risk: Inherent Risk Mitigated/ remaining Risk: Residual Risk Current Level of Risk: Current Risk Inherent Risk Residual Current Risk Risk High Density 337 202 Low 202 Risk Medium Risk High Risk Medium Density 268 178 234 Low Density 177 118 157 High Local Density Distribution 202 Main (<400mm) 204 143 204 202 Roads 257 184 184 268 Medium Density 178 234 Low Density Local Distribution Main (<400mm) Roads 118 143 157 0 50 100 150 200 250 300 350 177 184 184 204 204 257 Inherent Risk Residual Risk Current Risk 337
Optimized Decision Modeling Peel s ODM process takes a risk-centric approach to aid strategic decision-making Optimizes funding across all asset groups i.e. How do we best stretch the citizens tax dollar? Helps prioritize asset needs The engine behind the strategic asset management report
ODM Functions Calculates & forecasts: asset investments to maintain or improve service delivery levels of service & risk over time
ODM Functions Utilizes lifecycle strategies to predict asset condition & risk 0 Age (Years) 0 10 20 30 40 50 60 70 80 90 100 5 10 Unit Breaks (Breaks/ km) 15 20 CI DI PVC 25 30
ODM Process Asset Management Knowledge Base: Asset Hierarchies Risk levels Technical Levels of Service Costing data Typical Life-cycles Service improvement objectives ODM ARM ARM Reports: Reports: Forecasts: Forecasts: Expenditure Expenditure Needs Needs Assets Assets Management Management and and Reserve Reserve Plans Plans Asset Databases
CAM and ODM CAM Residual Current Inherent Risk Risk Risk Low 202 Risk Medium Risk High Risk High Density 337 202 Medium Density 268 178 234 337 Low Density 177 118 157 High Local Density Distribution 202 202 Main (<400mm) 204 143 204 Roads 257 184 184 268 Medium Density 178 234 Inherent Risk 177 Low Density 118 Residual Risk 157 Current Risk 204 Local Distribution Main 143 (<400mm) 204 Roads 184 184 257 0 50 100 150 200 250 300 350 Region of Peel Paramedic Services Wastewater ODM Age (Years) 0 10 20 30 40 50 60 70 80 90 100 0 5 10 Waste Management Unit Breaks (Breaks/ km) 15 20 25 30 CI DI PVC A safe, reliable road network Safe Roads Pavement Structures Potholes Excessive Bridge Deck Cracking Pavement Condition Index = 70 Bridge Condition Index = 80 Ancillary Road Assets Tilting Noise Wall Noise Wall Condition Index = B
Data Types 1. Detailed Condition Data Available Lifecycle curve creation (watermains) Building from current AM systems (roads) 2. Forward Works Program Inspection and work plans (Buildings) 3. Limited Asset Data Estimated Service Life Analysis
Lifecycle Curve Creation Age (Years) 0 10 20 30 40 50 60 70 Condition Data80 0.5 Points of Interest Trend 1 1.5 2 2.5 Condition 3 3.5 4 4.5 5
ODM Pilot A Practical Example 1. Distribution Mains 2. Roads Detailed condition data available Lifecycles created based on condition data Lifecycles in place already Sourced from current AM systems 3. Social Housing Forward works program in place Sourced from current works program data
ODM Calculations
ODM Assessing Spending Requirements 250 200 Replacement Cost ($M) 150 100 50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year Social Housing Roads Local Distribution Mains
ODM Allocating Funding 0.25 0.2 Risk Score Reduced per $M 0.15 0.1 0.05 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Years Social Housing Roads Local Distribution Mains
Optimized Budget Forecasting 140 120 100 80 60 Annual Budget ($M) 40 20 0 2010-2015 2015-2020 2020-2025 2025-2030 2030-2035 2035-2040 2040-2045 2045-2050 2050-2055 2055-2060 2060-2065 2065-2070 2070-2075 2075-2080 2080-2085 2085-2090 2090-2095 2095-2100 2100-2105 Year Required Funding Funding Strategy
Lessons Learned Stakeholders must understand the value of AM Make it understandable & logical Keep the momentum going Don t get bogged down in making the system perfect the first time it won t be Equality for all Programs (hard & soft services) in the development of the AM strategies
Lessons Learned Allow significant time & resources to organize & screen the data to provide meaningful information Keep the perspective strategic planning is the Corporate objective Component planning is the Program s expertise & domain
Conclusion Benefits of Strategic AM A transparent method to prioritize organizational asset needs & rationalize Program budgets Demonstrates responsible stewardship of resources to the public Increases credibility with Council Moves the debate from short-term issues to long-term objectives & strategies
Thank You Questions? troy.mander@peelregion.ca