canadian institute of planners in partnership with
TRANSCRIPT
NATIONAL WEBINAR15 JUNE 2018
Canadian Institute of Planners in Partnership with Engineers Canada
Acknowledgements
This initiative is offered through the Municipal Asset Management Program, which is delivered by the Federation of Canadian Municipalities and funded by the Government of Canada.
Introductions
Lourette Swanepoel, RPP, MCIP, ENVSP; Stantec Consulting
Moderator:
Daniel Potter, Canadian Institute of Planners
Presenters :
Dr. Guy Félio, P.Eng. FCSCE, IRP[Climate]; Stantec Consulting
GoToWebinarHousekeeping
General
Attendees will be muted for the duration of the webinar.
This webinar is being recorded and will be posted on the CIP website at a later date.
The moderator will be launching polls throughout the webinar. Click directly on your screen to participate.
GoToWebinarHousekeeping
Ask a Question
The presenter will provide opportunities to ask questions throughout the webinar. Wait for the cue.
Type your question in the “I have a question!” box.
What's your discipline?
Outline
AM Context & Engineering Perspective
A Planning Perspective
Discussion Questions
Closing
1234
CONTEXT & ENGINEERING PERSPECTIVE
Source of Presentation Slides:
Asset Management for Engineers – Online Course
Context:Municipal Governance in Canada
Canada’s AM Journey
The journey started shortly after …
• The publication in the USA of the book: America in Ruins: the Decaying Infrastructure By Pat Choate, Susan Walter in 1981
• In Canada, it was the 1985 Federation of Canadian Municipalities Report Municipal Infrastructure in Canada: Physical Condition and Funding Adequacy that triggered the debate about infrastructure sustainability
The past 15 years … significant progress
• Early 2000’s: A new tri-partite funding program
• Funding for “InfraGuide”
More Happening in the 2000’s
• The future of Canada’s infrastructure is ever more present on the radar of all levels of government and associations
• The “infrastructure deficit” number continues to grow
• A new Federal Department created: Infrastructure Canada
Where do we go then?
• The 2003 CSCE CIS technology roadmap
How do we get there?
A false start?
2005
2009
Meanwhile …
55 best practices and a networkof 350 volunteers later …
… where the engineers left, the accountants picked up
InfraGuide2001-2007
Asset Accounting versus Asset Management
Awareness about infrastructure needs and benefits on the rise
• Canada West Foundation – February 2013 report on linkages between investing in infrastructure and productivity
Are we there yet?
• PSAB’s PS3150 TCA reporting requirements are becoming part of the routine business processes of an increasing number of municipalities
• The spirit of InfraGuide lives on through regional and national initiatives:
The AM Planning Incentive in the Federal Gas Tax Program
• Example: Ontario
• Similar requirements for all Provincial/Territorial agreements – timelines to meet requirements differ
Brief International Perspective
• 1984-7 South Australian public sector ‘True cost of services’ and ‘Cost and timing of asset replacement’ reports (Dr. Penny Burns) resulting in a first, brief, government task force on Asset Management.
• 1993 First NSW Public Sector ‘Total Asset Management Manual’
• 1995 New Zealand Asset Management Support group (NAMS) established
• 2002 NAMS (AU, NZ) International Infrastructure Management Manual published
Context:2016 Canadian Infrastructure
Report Card
About the Project
• Assess the health of Canada’s municipal infrastructure
• Raise awareness on the key infrastructure challenges Canada is facing
• Inform stakeholders about issues and trends to enable evidence-based decision making
• NOT prescriptive
2016 CIRC – Key Findings
2016 CIRC – Key Findings
2016 CIRC – Key Findings
2016 CIRC – Key Findings
“Building for today’s communities and tomorrow’s Canada requires long-term planning.”Asset Management: reported having a formal asset management plan in place:
– 62% of large municipalities– 56% of medium-sized municipalities – 35% of small municipalities
Climate Change: Reported formally factoring climate change into decision making:
– 27% of large municipalities– 27% of medium-sized municipalities – 10% of small municipalities
What is Asset Management?
Common Elements (1)
• While many AM definitions are each unique in the words they use, they share some clear and important messages: 1. Asset management is an ongoing, iterative
process or approach, not a one-time project. 2. Asset management is holistic and integrated. 3. Asset management is about generating value
and sustainable service delivery.
Common Elements (2)
• Asset Management involves the balancing of costs, opportunities and risks against the desired performance of assets, to achieve the organisational objectives. This balancing might need to be considered over different timeframes.
• Asset management also enables an organization:– to examine the need for, and performance of, assets
and asset systems at different levels;– To apply analytical approaches towards managing
an asset over the different stages of its life cycle (which can start with the conception of the need for the asset, through to its disposal, and includes the managing of any potential post disposal liabilities).
Warning!
• AM process NOT to be driven by technology• ONE size does NOT fit all• “Back of the envelope” may be acceptable as a first step• AM has to become a CULTURE within organisation
– People – Senior management/decision-makers
leadership• AM is not a one-time-deal: continuous (improvement)
process• AM must feed the decision-making process – support,
NOT replace• AM should have actionable outputs … not just a report
Old Paradigm – Asset Focus New Paradigm: Service Focus AM is a technical exercise that relies on engineers
AM is a strategic exercise that relies on engineers, but also requires strategic management, planning and financial professionals.
AM requires a software program AM is not about the software, it is about the process of making decisions and software, GIS and/or spreadsheets might support that process, but it is not about “buying a tool”
Each municipal department should manage their assets and propose their budgets accordingly (i.e. buildings, roads, fleet etc. are all managed in si los)
The municipalities should manage their assets collectively and prioritize budgets accordingly (i.e. buildings, roads, fleet, etc. are all looked at together and prioritized in an integrated manner)
AM is a reactive response. AM is proactive process that considers life-cycle costs and risks.
A PLANNING PERSPECTIVE
Linear Silos
• Population projections & Land supply• Development location and type
PLANNING
• Provide infrastructure to serv ice development• Replace, operate and maintain infrastructureENGINEERING
• $ for new capital costs• $ for operations and maintenanceFINANCE
Problem
Solution
Linear Silos
• Population projections & Land supply• Development location and type
PLANNING
• Provide infrastructure to serv ice development• Replace, operate and maintain infrastructureENGINEERING
• $ for new capital costs• $ for operations and maintenanceFINANCE
Problem
Solution
Driver
Some Cost DriversLocation:
Infill vs. edge vs. leapfrog Flats vs. hillside vs. floodplain
Some Cost DriversProportionate share:
Lot size, lot frontage Catchments / capacity
Some Cost Drivers
Timing / phasing
Development standards
Ponzi Growth Scheme
100% old
% Condition is a snapshot in time
Growth created the illusion of improvement
50% new in excellent condition
50% old in poor
condition
Ponzi Growth Scheme
Growth subsidizes old liabilities
Near-term cash advantage for a long-term financial obligation
100% old
New = Revenues
Old = Deferred Liability
Revenue to offset liability
Sustainability...More Immediate & Personal
Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. –Brundtland Commission Economic /
Fiscal
Social
Environmental
?
Asset Rich, Cash Poor!
Partners of AM Planning
Budget
The Gap
Very Good
Good
Fair
Poor
Critical
High
LOS
low
=Current State
Desired State
The Gap
How can we close the gap?
How can we close the gap?
Denial?
More money• Increase taxes
• Borrow money
• Grants
Optimize spending• Maintenance
• Efficient operations
• Synchronizing
Reduce demand• Density
• Alternative modes
• Resource conservation
Lower service• Hours / frequency
• Diversity
• Development standards
Eliminate, privatize
DISCUSSION
For the planners…have you been engaged as part of an asset management process?
For the engineers…have you engaged a planner or added a land
use aspect to your AM planning?
Panel Question 1
What are ‘natural assets’ and why is this important in Asset Management?
Panel Question 2
Climate change is a hot topic for both planners and engineers. How does climate change relate to Asset Management?
Dawson Creek, BC. Source: CTV News
Q&A
CLOSING
MAMP Readiness Scale
Policy and Governance
Putt ing in place policies and objectives Bringing policies to life through a strategy or framework Measuring and monitoring progress
People and Leadership
Sett ing up cross-functional groups with clear accountability
Ensuring adequate resourcing and commitment
Data and Information
Using data to support effective AM planning and decision-making: Asset Data, Performance Data, Financial Data
Planning and Decision-Making
Documenting, standardizing how organizat ion sets priorit ies
Plans capital and O&M investment Decides on budgets
Contribution to AM Practice
Training and staff development Sharing knowledge internally Part icipating in external knowledge sharing
Assess where you are and progress
Secure Funding through MAMP
Municipal governments and partners applying in partnership
Lesser of 80% of Eligible Costs and $50,000
Features:
Continuous intake Time from application to decision (max. 8 weeks) Wider distribution (↑ # of Recipients ≥ 550) Projects ≤ 12 months (including 1 month for reporting) Contract with one Lead Applicant (applicants can form
partnerships and share resources).
Secure Funding through MAMP
Eligible activities include:
AM Assessments (needs or risks) AM Plans, Policies, and Strategies Data collection and reporting AM Training and organizational development Knowledge transfer, development and sharing
Broad approach to eligible activities to ensure inclusivity
Go to www.fcm.ca – Programs – MAMP
