draft asset management plan - niagara-on-the-lake...
TRANSCRIPT
NotL AMP June 8, 2015 08/06/2015
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David Anderson, CET
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Draft Asset Management PlanCommittee of the Whole
June 8, 2015
Presentation Overview
• Introductions
• Background
– Provincial Requirements
• Project Approach
• State of the Infrastructure
• Financial Plan
• Asset Management Plan
• Recommendations going forward
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BACKGROUND
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MOI Asset
Management
Plan
Requirements
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• Ministry of
Infrastructure
Asset Management
Defined
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MIII Requirements for State of the Infrastructure
• State of the Infrastructure (SotI)
– Asset types
• Materials, subtypes
– Financial Accounting Valuation
• Historic
• Replacement costs
– Asset Age Distribution
• May be some difficulties with some assets
– Age of the composite asset vs the apparent age
• May estimate by material or current condition
• Asset condition using standard engineering practices
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MIII Requirements for State of the
Infrastructure
• Record of assumptions
• QA / Verification
• Supported by a database
– WorkTech Asset Manager Foundation
• Regularly Updated
– Condition Assessment Policy
– Will vary by asset group
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Worktech Asset Manager Foundation
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• NotL uses Worktech Asset Manager Foundation
• Can be used for any an all assets
• Budget Development, Performance Modeling, Analysis
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MIII Requirements -Level of Service
• Desired / Target
• Existing
• How measured?
– Operational?
– Overall Condition
– May have to have multiple measures for some assets
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MIII Requirements- Asset Management Strategy
• Overall Asset Management Strategy should cross integrate assets
• Has to be in lock step with the financial plan
• Planned actions to include
– Non-infrastructure solutions
– Maintenance Activities
– Renewal and rehab
– Replacement
– Disposal
– Expansion
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MIII Requirements- Asset Management Strategy
• From MIII handbook
• “ The asset management strategy is the set of actions that,
taken together, has the lowest total cost - not the set of
actions that each has the lowest cost individually”
– Cross Asset Integration
• Also consider the best overall affect to asset group or groups
• Plan has to include Operating and Capital costs and activities
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PROJECT APPROACH
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Project Approach
• 1-Documentation Review
• 2-Asset Management Policy Template
• 3- State of the Infrastructure (SotI) for assets
• 4- Development of Asset Management and Financing Strategies
• 5- Draft Asset Management Plan (staff level)
• 6- AMP Review meeting
• 7- Development of a 10 year plan and Consolidation with the Town's 10 year Capital Forecast
• 8- Final Report preparation
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Project Approach - Asset Management Policy
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• Council approved December
2014
• Provides direction to staff for
all assets
• As specifics are developed for
asset groups, they will be
added as appendices
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Project Approach
• Documentation Review
– development of the Asset Management Plan (AMP) are as follows;
– 2014 State of the Infrastructure – Roads, 4 Roads Management
Services Inc.
– 2014 Water Rate Study, DFA Infrastructure International Inc.
– 2014 Waste Water Rate Study, DFA Infrastructure International Inc.
– 2013 Structures Report, AECOM Canada Ltd.
– WorkTech Asset Manager Foundation Database, as provided by the
Town of Niagara-on-the-Lake
– 2014 Capital Budget, as provided by the Town of Niagara-on-the-Lake
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State of the Infrastructure (SotI)
• A state of the infrastructure report was developed for all
assets in the study
• Water and Waste Water assets did not have conditions
ratings
– Condition developed based on age
• Road and Structure Assets had current condition information
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Draft AMP
• A draft AMP was developed and reviewed at the staff level
and revised March to May 2015
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10 Year Capital Plan
• Work Plans were developed through performance models in
WorkTech Asset Manager Foundation
– Water
– Waste Water
– Roads
• Structures plan was based on 2013 AECOM
recommendations and proposed funding level
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DRAFT Asset Management Plan to Council
• Draft Report to Committee of the Whole June 8, 2015
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STATE OF THE INFRASTRUCTURE
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SotI Overall
Asset Group Replacement Cost
Infrastructure Backlog /
Replacement Needs 1 to 10
Years
Quantity Overall Grade
Trend
Roads 188,975,800 $53,321,821 249.61 km B
Structures 25,437,832 $4,320,00038 Bridges, 19 Culverts B-
Water 211,458,210 $10,715,434 257,103m A
Waste Water 134,679,805 $610,957 125,021m A
Totals 560,537,487 $68,968,212 N/A A-
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Table ES.1: State of the Infrastructure Summary by Asset Group
• The overall condition of the road, and W&WW assets are strongly
influenced by development that has occurred in the last 20 years,
improving the overall average. This may lead to an incorrect conclusion
regarding funding levels that are required to sustain the assets
SotI
Asset Group Poor % Fair % Good % Excellent %
Roads 12.58 6.77 29.96 50.69
Structures 7.63 7.27 2.08 83.02
Water 4.47 0.59 10.94 83.99
Waste Water 0.39 0.2 3.3 96.11
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Table ES.2: State of the Infrastructure Condition Summary by Asset
Group and ConditionNote: Roads, Water and Waste Water condition is based on actual or estimated condition,
Structures is based on the ratio of the needs by time of need to the replacement cost.
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SotI –Remaining Service Life - Roads
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SotI –Remaining
Service Life -
Structures
Figure 6.3: Remaining Design Life by Footprint – Culvert Structures
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Figure 6.2: Remaining Design Life by Deck Area – Bridge Structures
The average age of the
bridge structures is 65 years.
The design life for the
majority of the structures is
50 years
The average age of the
culvert structures is 51
years. The design life for the
majority of the structures is
50 years.
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SotI –Remaining Service Life - Water
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Water Linear Remaining Service Life –Length (m) by Time of Need
SotI –Remaining Service Life - Waste Water
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Waste Water linear Condition and Remaining Service Life
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FINANCIAL PLAN
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Sustainable Funding Requirements
Asset Type Current Funding Level
Recommended Minimum Funding
Level
Shortfall
Roads 1,748,400(average) $1,980,000 $231,600
Structures 211,200 $508,800 $297,600
Water Linear 1,368,500 2,413,000 $1,044,500
Waste Water Linear 288,250 1,571,000 $1,282,750
Totals 3,616,350 $6,472,800 $2,856,450
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Table ES. 3: Annualized Minimum Capital / Preservation Funding RequirementsNotes: *Roads funding includes current average levy costs 2011 to 2025 equivalent to Preservation Funding
components, Gas Tax Grant and Ontario Community Infrastructure Fund (OCIF)
*OCIF Funding amount is guaranteed only for the next 3 years; if not continued there will be an additional shortfall to
deal with
*Structures funding includes current average costs 2011 to 2025
*Water and Waste Water Linear funding levels have been provided by NotL.
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Sustainable
Funding
Requirements
• The sustainable funding
level for assets is required
to ensure continuity in
service delivery.
• Assets replaced when
required
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Sustainable
Funding
Requirements
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Funding Gaps –Roads and Structures
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Table ES.4: Increased Capital /Preservation Funding Options for Roads and Structures Levy Supported
Assets ($529,200)
Option
Roads
Annual
Increase
Bridges
Annual
Increase
Total
Annual
Increase
Percentage
Increase on the
Tax Levy
Do Nothing 0 0 0 0.0%
Increase Over 5 years 46,320 59,520 105,840 1.2%
Increase over 10 years 23,160 29,760 52,920 0.6%
Increase over 15 years 15,440 19,853 35,293 0.4%
Funding Gaps - Water
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Table ES.5: Increased Capital / Preservation Funding Options for Water Rate Supported Assets
($1,044,500)
Option Annual Increase Percentage Increase on the
Water Rates
Do Nothing 0 0
Increase over 5 years $208,900 4.51%
Increase over 10 years $104,450 2.26%
Increase over 15 years $69,633 1.50%
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Funding Gaps – Waste Water
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Table ES.6: Increased Capital / Preservation Funding Options for Waste Water Rate Supported Assets
($1,282,750)
Option Annual Increase
Percentage Increase on
Rates
Do Nothing 0
Increase over 5 Years $256,550 8.99%
Increase over 10 Years $128,275 4.49%
Increase over 15 Years $85,517 3.00%
Funding Increase Recommendations
• All asset funding should be increased to sustainable levels
over 5 years
• Recommended funding for water and waste water is at the
2014 Rate Study level
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ASSET MANAGEMENT PLAN
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Asset Management
• Asset Management by its very nature is holistic
• Asset improvement decisions in isolation is short sighted and may be more expensive in the longer term.
• Making a decision about an improvement to an asset that may be affected by, or cause an effect to other assets can add additional expense
• The ‘Building Together’ document indicates that:
‘The asset management strategy is the set of actions that, taken together, has the lowest total cost — not the set of actions that each has the lowest cost individually.’
• Recommendation going forward
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Asset Management
• Asset Management is a state of mind and a perpetual
process
• Has to be integrated into our work processes
– Daily,
– Weekly
– Monthly
– Annually
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Typical Asset Management Plan Cycle
Page 38
Data Collection
System or Asset Group
Condition
Needs Analysis
Economic /Budget Analysis
Define Network or Assets
Implement Program
System Maintenance
$$$
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Annual Work Plans
• As the municipality advances the development of their Asset
Management Plan (AMP), a paradigm shift will be required
in the way that we approach management of assets.
• Traditionally, municipalities have spent a fixed amount
capital and maintenance each year.
• If assets are managed by condition, selecting the right
treatment at the right condition will cause program
fluctuation within the budget amount
• More effective use of available funding
– Improved asset group performance
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Annual Work Plans by Asset Condition
Improve
ment
Type
Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Grand
Total
CRK 81,825 44,300 500 75,600 5,600 9,525 122,850 22,225 4,300 11,350 378,075
GRR2 81,820 111,033 90,595 37,440 21,177 98,982 441,047
MICRO 5,950 7,371 6,580 26,427 7,140 7,438 15,769 12,026 88,701
PR2 108,362 449,139 311,452 388,972 353,544 475,330 2,086,799
R1 172,798 37,861 373,064 262,501 372,298 18,504 369,485 712,193 584,077 2,902,781
R2 48,296 78,363 260,093 42,857 53,571 483,180
SST 172,957 181,533 86,828 190,883 144,828 209,270 711,562 123,662 211,473 144,828 2,177,824
SST+ 259,103 259,103
SST++ 243,177 243,177
Grand
Total 1,086,518 797,146 1,039,308 743,855 903,933 1,199,875 897,496 576,381 964,912 851,263 9,060,687
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Pavement Management Strategy
Quality
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Pavement Management
- Best Return on Investment
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*From WorkTech Asset Manager Foundation Performance Model
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RECOMMENDATIONS
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Recommendations
1. The information and budget recommendations included in
this report to further develop the corporate Asset
Management Plan.
2. Funding levels for Capital / Preservation for the respective
asset groups should be increased to the following levels
over a 5 year period.
Roads $1,980,000
Structures $508,800
Water Linear $2,413,000
Waste Water Linear $1,571,000
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Recommendations
3. Consideration should be given to creating a funding source or reserve for the roads and for structures if they do not already exist.
4. Funding should be adjusted annually to account for inflation, increase in plant and exceptional increases due to commodity pricing.
5. The cycle for review of the road system should be continued reviewing the entire system on a four year cycle.
6. The cycle for review of the structures inventory should be continued, reviewing the entire system on a two year cycle
7. A condition review and analysis cycle should be developed for the Water and Waste Water Linear Assets.
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Recommendations
8. Rating methodologies for Water and Waste Water Assets should
be adopted.
9. NotL should consider requiring that the structure inspections
include a Bridge Condition Index (BCI) for all structures.
10. Assets within the road allowance should be linked to the road
asset ID to facilitate cross asset integration and modeling
11. Programming should be reviewed to
– Cross asset integration opportunities have been maximized
– Ensure that maintenance and preservation programs are
optimized.
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Recommendations
12. Traffic counts should be updated and repeated on a regular basis. The counting should include the percentage of truck traffic.
13. Further analysis should be undertaken on the Gravel Road system, with respect to the potential for conversion to a hardtop surface.
14. The Level of Service for the road system should be system Adequacy 60%, Physical Condition 60 and MPMP measure of Good to Very Good of 60.
15. The Level of Service for the Structures should be zero load posted structures.
16. Budgets should be adjusted annually to account for inflation, exceptional increases to specific products and plant expansion.
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Recommendations
17. The asset management plan should be updated on an
annual basis to reflect the changes to the respective asset
groups in terms of expansion, improvements and inflation.
The funding and models should also be updated based on
current year cost experience.
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QUESTIONS???
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THANK YOU!!
David Anderson
President
4 Roads Management Services Inc.
519 505 506550