ppt webinar national 20180615 - cip

Managing Assest for Sustainable Communities - A CIP Training Series

6/18/2018

Prepared by Stantec Consulting 1

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.


6/18/2018


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.


6/18/2018


GoToWebinarHousekeeping

Ask a Question

The presenter will provide opportunities to ask questions towards the end of the webinar. Wait for the cue.

Type your question in the “I have a question!” box.

What's your discipline?


6/18/2018


Outline

AM Context & Engineering Perspective

A Planning Perspective

Discussion Questions

Closing

1234

CONTEXT & ENGINEERING PERSPECTIVE


6/18/2018


Source of Presentation Slides:

Asset Management for Engineers – Online Course

Context:Municipal Governance in Canada


6/18/2018


Canada’s AM Journey


6/18/2018


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”


6/18/2018


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


6/18/2018


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


6/18/2018


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


6/18/2018


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


6/18/2018


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


6/18/2018


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


6/18/2018


2016 CIRC – Key Findings



6/18/2018




“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


6/18/2018


What is Asset Management?


6/18/2018


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).


6/18/2018


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


6/18/2018


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 silos)

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


6/18/2018


Linear Silos

• Population projections & Land supply• Development location and type

PLANNING

• Provide infrastructure to service 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 service development• Replace, operate and maintain infrastructureENGINEERING

• $ for new capital costs• $ for operations and maintenanceFINANCE

Problem

Solution

Driver


6/18/2018


Some Cost DriversLocation:

Infill vs. edge vs. leapfrog Flats vs. hillside vs. floodplain

Some Cost DriversProportionate share:

Lot size, lot frontage Catchments / capacity


6/18/2018


Some Cost Drivers

Timing / phasing

Development standards

Bad Habits

Focus on initial capital cost

“Free” stuff from developers

Deferring costs to save money

No funding reserves for replacement

Stantec Consulting

REPAIR / REHAB COSTS

20%

80%


6/18/2018


The Growth Illusion

100% old

% Condition is a snapshot in time

Growth creates 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


6/18/2018


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


6/18/2018


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


6/18/2018


DISCUSSION

For the planners…have you been engaged as part of an asset management process?


6/18/2018


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?


6/18/2018


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


6/18/2018


CLOSING

MAMP Readiness Scale

Policy and Governance

Putting in place policies and objectives Bringing policies to life through a strategy or framework Measuring and monitoring progress

People and Leadership

Setting 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 organization sets priorities

Plans capital and O&M investment Decides on budgets

Contribution to AM Practice

Training and staff development Sharing knowledge internally Participating in external knowledge sharing


6/18/2018


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).


6/18/2018


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

Thank You!

[email protected]

[email protected]

Daniel: [email protected]

ppt webinar national 20180615 - cip

Documents