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Strengthening Communities Workshop
from Policy To Practice
11 ² 13 April, 2007 Hotel Explorer, Yellowknife

Municipal Infrastructure Asset Management
Saidur Rahman, Ph.D.
Senior Capital Planning Officer

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Act Locally and Think Globally
Society, Economy and Environment

Consumption

Built Environment
Roads, Bridges, Buildings, Transits, Fleets, Water, Sanitary, Drainage, Energy, Communications, Parks and Public Facilities

Reduced Life

Services

Waste

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Presentation Outline 

Understanding of infrastructure and asset management Why we need to care about? Benefits Asset management plan development What is going on around? Where we are now? What to do next?
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Municipal Infrastructure 

The Canadian Oxford Dictionary: ³infrastructure´ as ³the basic structural foundation of a society or enterprise; roads, bridges, sewers, etc. regarded as a country's economic foundation´ City of Edmonton: ³all the physical assets developed and used by the City to support the community¶s social and economic activities´ Community infrastructure
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Municipal Infrastructure 

Classifications 
 

Linear and non-linear nonSurface and sub-surface subTax supported, self-financing and quasiselfquasicommercial or blended (CWF ± New Tools for New
Times, 2006) 

Community public infrastructure (CPI) 


Stationary and movable Office buildings, fire hall, storage facilities, arena, recreation centres, water and sewage facilities and solid waste disposal etc.
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approximately 20% of total built asset of $5. To download and display this picture. municipal infrastructure worth $1. and then click Enable external content. click Options in the Message Bar. Why Municipal Infrastructure?      Livable and healthy place Safety Economic prosperity Quality of life In Canada.To help protect your privacy.1 trillion. PowerPoint prevented this external picture from being automatically downloaded.5 trillion (NRC) Municipal assets are economic backbone and extremely high-value assets that highcannot be allowed to deteriorate or misuse 7  .

PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. Municipal Infrastructure Issues  Population growth Year 1981 1996 2006 2026 2050 Population (millions) 24.82 29.31 Population Growth of Canada [Source: The Sustainability Report] Infrastructure demand ± $90 billion (Infrastructure Canada)  8 . To download and display this picture.67 32.20 42.74 36.To help protect your privacy. and then click Enable external content.

4 110 Huge backlog Current funding level will deficit $1 trillion in 60 years (CSCE 2003) 9 . and then click Enable external content. click Options in the Message Bar. Municipal Infrastructure Issues Municipalities are spending $12 . To download and display this picture. PowerPoint prevented this external picture from being automatically downloaded.$15 billion/year on maintenance and rehab (FCM)    (CSCE 2003) Infrastructure Backlog 0 12 -50 $ billion -100 -150 1985 1992 1996 2002 2004 2027 20 44 57 60.To help protect your privacy.

To help protect your privacy. and only 41% is under 40 years old (CSCE 2003) (CSCE 2003)  10 . click Options in the Message Bar. Municipal Infrastructure Issues  Aging of infrastructure 28% of Canada¶s infrastructure is over 80 years old. PowerPoint prevented this external picture from being automatically downloaded. and then click Enable external content. To download and display this picture.

and then click Enable external content. click Options in the Message Bar. To download and display this picture.To help protect your privacy. PowerPoint prevented this external picture from being automatically downloaded. Municipal Infrastructure Issues  79% useful service life of infrastructure has been used (CSCE 2003) Condition degradation 100 90 80 70 60 50 40 30 20 10 0 McGill Survey 2003 (Mirza and Haider)  Condition (% of Acceptability) Good/Acceptable Needs Repair/Not Acceptable ad s ild ing s W as te ra ns it al k es Br id g Ro ut io en t Si de m Se w Di st r ib re at or m W at er Se w ag e St So lid Bu Pa rk w er n s 11 .

6-10 6times of current annual infrastructure budget Deferred maintenance for µBig Sixes¶ $564 million (2003 CWF) First Nations will cost $475 . To download and display this picture. Municipal Infrastructure Issues  Infrastructure gap $50 to $125 billion. PowerPoint prevented this external picture from being automatically downloaded. and then click Enable external content.To help protect your privacy.8 billion (2003) 12    .$560 million (2003 CAN$) to address risks for water and wastewater assets Estimated cost for upgrading Canadian sewer infrastructure is $11. click Options in the Message Bar.

click Options in the Message Bar. and then click Enable external content.9 or ³good´ to ³fair´ from range of 1 to 7 ratings 50% of the assets were at least 30 years old. in 10 years 75% will be +30 years old Represents 32% of Canadian population 13 ‡ ‡ . PowerPoint prevented this external picture from being automatically downloaded. MIIP Survey Results  NRCNRC-MIIP survey (2004) results: ‡ ‡ ‡ ‡ ‡ Total 67 municipalities of over 5000 peoples Questionnaire based on ³Six Whats´ 70% spending less than 2% on maintenance 28% do not have system to record asset value Assets were rated as 2.To help protect your privacy. To download and display this picture.

000 /events (CMHC 2004) 14    .000 events /year. and then click Enable external content.000 . PowerPoint prevented this external picture from being automatically downloaded. 700 breaks per day in Canada and USA ($3.000 per repair) Walkerton tragedy: E. coli 0157:H7 outbreak in Walkerton. Infrastructure at Stake  Water main breaks: Avg.000 to 40.$5. average cost $3. To download and display this picture. Compensation $500/ household and $2500/ small business Basement flooding: 30. Cost $64 million Peterborough flood in 2004: Damage cost 2004: $20 to $40 million. click Options in the Message Bar.To help protect your privacy.

We Actually Need  Accountability    Customer (demand and service) Staff (Fiscal responsibility. health and safety) Environment (regulatory compliance) Minimize health and safety tragedies/incidents Reduce liability claims Longer term (cradle to grave) Reserve funding 15  Risk Management    Asset Sustainability   . PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. and then click Enable external content. To download and display this picture.To help protect your privacy.

 Infrastructure demand and population growth Aging of infrastructure and condition deterioration Infrastructure deficit Service level improvement Lack of integrated systems/tools and consistent approach Inadequate funding Organizational restructuring 16       . and then click Enable external content. PowerPoint prevented this external picture from being automatically downloaded. To download and display this picture.. So the Challenges are.To help protect your privacy. click Options in the Message Bar..

To help protect your privacy. To download and display this picture. click Options in the Message Bar. rehab and renewal needs Increase system¶s capacity and extend service life Stewardship of the environment Define levels of service (LOS) Ensure financial sustainability Implement Asset Management Plan (based on µSix Whats¶) 17 . How These Challenges Can be Addressed       Identify maintenance. and then click Enable external content. PowerPoint prevented this external picture from being automatically downloaded.

Need for Change  Asset management needs some reorganization of public agencies function Traditional design-build.operateapproach is simply inadequate in the face of current dilemma Adoption of asset management principles and tools (IT tools and financial regulations)   18 . PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy. To download and display this picture. and then click Enable external content. click Options in the Message Bar.operate-maintain design-build.

versatile structures After World War II. and then click Enable external content. CMMS. GIS and GPS 2000 ~ Integrated systems 19      . CMMS and WO In 1990¶s IT tools. PowerPoint prevented this external picture from being automatically downloaded. reliability issues and maintenance for mechanical and electrical equipments In 1960¶s green movements. CMMS to AMS.To help protect your privacy. LCC and LCM In 1970¶s and 1980¶s PMS. Evolution of Asset Management  In early 1900¶s design and durability issues. click Options in the Message Bar. To download and display this picture.

hardware. To download and display this picture.To help protect your privacy.data recording and reporting using General Accepted Accounting Principles (GAAP)  Directors of finance ± strategic financial plan  Utility directors/supervisors . and then click Enable external content. click Options in the Message Bar. PowerPoint prevented this external picture from being automatically downloaded.maintain the utilities and manage work order systems  IT directors ± software. What do You Think?  Clerks/municipal employees . integrated systems and database management 20 .

operating. maintaining. What is Asset Management? What is your definition? NRC. FHWA and IIAM (Australia) ³Asset Management is a systematic process of planning. To download and display this picture. click Options in the Message Bar. and then click Enable external content. upgrading and replacing assets cost effectively with minimum risk and at the expected levels of service over the assets life cycle´    21 . PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy.

PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. and then click Enable external content. To download and display this picture.To help protect your privacy. Asset Management Benefits Two fold benefits:  Reduce cost  Extend life (Life cycle) 22 .

risk and LOS Risk Cost 23 .To help protect your privacy. To download and display this picture. and then click Enable external content. PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. Asset Management Benefits Another benefit is to increase the levels of service Service Expected Service Levels Service Agreed/LOS Service Provided Service Gap Levels of Service is a compromise between existing and expected service levels Service Items Levels of Service (LOS) Balance between cost.

To help protect your privacy. To download and display this picture. Simple Questions? Simple questions but«        Is there anything wrong? What is wrong? What should we do? How do we fix it? What will the benefits be? How much will it cost and how do we pay for it? How can we be more proactive? 24 . PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. and then click Enable external content.

Who is Doing What?  Australian Initiatives  Institute of Public Works Engineering Australia (IPWEA)  IIAM Manual  Asset Management Quarterly International (AMQI) Commonwealth Industrial and Scientific Research Organization (CSIRO)  25 . PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. To download and display this picture.To help protect your privacy. and then click Enable external content.

To download and display this picture. GASB and Case Studies Transportation Asset Management Manual Software: LCCA. Who is Doing What?  In USA     American Public Works Association (APWA) AMSA ± Managing for Public Infrastructure Assets AWWA ± Publications and reports Federal Facilities Council (FFC) . BMS and PMS etc.To help protect your privacy. click Options in the Message Bar.    National Association of College and University Business Officers (NACUBO) ± Facility Condition Index (FCI) Others: WIN. PowerPoint prevented this external picture from being automatically downloaded. WERF and TRB 26  . LCCA. and then click Enable external content.Investments in Federal Facilities FHWA   Asset Management Office: Primer on Asset management.

gc. Who is Doing What?  In Canada  National Guide (IC. FCM.7 million budget Over 56 best practices in 7 target areas Knowledge . To download and display this picture. and then click Enable external content. PowerPoint prevented this external picture from being automatically downloaded.ifraguide.ca>   Canada wide network of $25.Building.To help protect your privacy. Outreach and Awareness (KOA) program Infrastructure Canada Program Canada Strategic Infrastructure Fund  Infrastructure Canada     Municipal Infrastructure Investment Planning (MIIP) ± NRC   10 municipalities consortium Evaluating tools and techniques for investment planning 27 . NRC) <www. click Options in the Message Bar.

PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy. alternative financing and municipal infrastructure 28  Public Sector Accounting Board (PSAB) . To download and display this picture. Who is Doing What?  Transportation Association of Canada (TAC)   Primer on Highway Asset Management (1999) Bridge Management Guidelines (2004)  Canadian Institute of Charted Accountants (CICA)  Accounting and Reporting for Physical Assets by Governments (1990) Accounting for Infrastructure in the Public Sector (2003)   Canada Mortgage and Housing Corporation (CMHC)  Study reports on financial planning. click Options in the Message Bar. and then click Enable external content.

Who is Doing What?   Municipal Infrastructure Data Standards (MIDS) Municipal Performance Measurement Program (MPMP) Ontario Municipal CAO¶s Benchmarking Initiative (OMBI) National Water and Wastewater Benchmarking Initiative Municipal Infrastructure Management Systems (MIMS) Acts and Legislation (Federal. To download and display this picture. Provincial and Territorial) 29     . click Options in the Message Bar. PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy. and then click Enable external content.

What Can Be Included?  What are the absolute requirements?  How do an existing system fit into?  How does Asset Management assist in be implemented? monitoring of condition and performance?  How should an Asset Management system  How Asset Management is compatible with business approach to managing infrastructure assets? 30 . PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. To download and display this picture.To help protect your privacy. and then click Enable external content.

PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. and then click Enable external content.To help protect your privacy. To download and display this picture. Asset Management Plan Step 6 Step 1 to 3 ± Data oriented Step 4 to 5 ± Methodology and policy issues Step 6 ± Decision-making Step 4 Step 5 Decision-making Calculations Step 3 Models Protocols Step 2 Step 1 Asset knowledge 31 .

PowerPoint prevented this external picture from being automatically downloaded. Revisit the ¶Six Whats·       What do you own? What is it worth? Asset knowledge What is the condition? What is the deferred maintenance? What is the remaining service life? What do you fix first? Decision-making Calculations Models Protocols 32 . and then click Enable external content.To help protect your privacy. click Options in the Message Bar. To download and display this picture.

and then click Enable external content. FCA) 33 ‡ Life cycle cost/Whole life cost . historical value. PSAB.To help protect your privacy. To download and display this picture. PV Current Replacement Value (CRV) Cost modeling (direct and indirect costs. depreciated value. click Options in the Message Bar. PowerPoint prevented this external picture from being automatically downloaded. Revisit the ¶Six Whats·  What do you own? ‡ Asset inventory ‡ Database    Paper based Electronic (relational database and spreadsheets) Integration with GIS and CMMS  What is it worth? ‡ Asset valuation    Book value.

blockages etc. click Options in the Message Bar. survival functions. Revisit the ¶Six Whats·  What is the condition? ‡ Condition assessment  Condition grading systems (subjective evaluation.To help protect your privacy. WRc. and then click Enable external content. distress based matrices and hybrid systems) ‡ Structural and functional (defects. BMS. NAAPI or homegrown ‡ Prediction modeling (Markov. PowerPoint prevented this external picture from being automatically downloaded. hydraulics. NN)  What is the deferred maintenance? ‡ Facility Condition Index (FCI) ‡ Maintenance backlog and economic inflation/deflation 34 . To download and display this picture.) ‡ Protocols (IT tools)  PMS. breaks.

PAN. PowerPoint prevented this external picture from being automatically downloaded. B/C. and then click Enable external content. MOO and expert knowledge Ranking: Asset by asset or group of assets Costs for alternative maintenance. weighted factor methods. click Options in the Message Bar. Revisit the ¶Six Whats·  What is the remaining service life? ‡ Service life modeling   Analytical and probabilistic methods Costs for alternative maintenance. repair and renewal Combination of all and political agenda 35   ‡ Decision-making Decision . To download and display this picture.To help protect your privacy. repair and renewal  What do you fix first? ‡ Prioritization  Methods: AHP.

and then click Enable external content. To download and display this picture. Asset Management Framework  Planning (proactive and reactive)  Implementation (generally life cycle approach) ‡ Acquisition/construction Planning ‡ Operation ‡ Maintenance ‡ Repair and rehab ‡ decommissioning Improving/ nt Developme Implementting  Evaluating  Improving/Developing Evaluating 36 .To help protect your privacy. click Options in the Message Bar. PowerPoint prevented this external picture from being automatically downloaded.

Synonymous to ³Bottom-Up Approach´ BOTTOM UP Asset / Component Data 37 . Synonymous to ³Top-Down Approach´ MIXTURE OF BOTH PROJECT LEVEL: Detailed assessment on an asset-byasset basis. and then click Enable external content. PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. To download and display this picture.To help protect your privacy. Asset Management Framework TOP DOWN System Knowledge PROGRAM LEVEL: High-level decision-making.

click Options in the Message Bar. Some Specific Issues«  What are the service standards for WTP?  What level of details are available for pump station? O&M manual?  How many water trucks you need?  Show the investment for next 20 years?  Show the critical asset on the map?  What are the risks and how will be managed?  How will you prioritize your investment? 38 . To download and display this picture. PowerPoint prevented this external picture from being automatically downloaded. and then click Enable external content.To help protect your privacy.

and then click Enable external content. PowerPoint prevented this external picture from being automatically downloaded. To download and display this picture. Asset Valuation and Management Drivers  Corporate   Enhance accountability & responsibility (insurance) Satisfy emerging legislative issues Strategic investment decision-making for short & decisionlong term Manage future growth & demand Stabilize Rates / Reserves 39  Engineering & Operations    Finance  . click Options in the Message Bar.To help protect your privacy.

performance and economic factors Straight forward Reflects current condition Identify backlogs Uses for available data (service life. Historical Costs Written down replacement cost Current replacement value (CRV) Net salvage value Optimized replacement cost Advantages Data available Simple method Compares replacement options Disadvantages Does not account for any changes as: price. and then click Enable external content. click Options in the Message Bar. material usages) Optimized for service life and condition Reflects actual costs and benefits 40 . Asset Valuation Methods Methods Book Value. PowerPoint prevented this external picture from being automatically downloaded. To download and display this picture.To help protect your privacy. technology and usability Accurate condition/ performance data required Misleads when an old asset behaves like good condition as new asset Difficult to predict future cost and asset usage Impacts for uncertainties like condition.

and then click Enable external content. of failure ‡ Replacement options ‡ Cost comparison ‡ Depreciation Optimized Replacement Cost Asset Value 41 . PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy. To download and display this picture. Asset Valuation Model Algorithm Define Component Levels & Attributes Capture Inventories (integrated system) Assess Asset Condition ‡ Inventory data Asset Life Expectancy & Remaining Life Assess Asset Value & Risk Level ‡ Condition data ‡ Performance ‡ Criticality ‡ Prob. click Options in the Message Bar.

User vs Owner   Economics Unit costs based on: area. PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy. click Options in the Message Bar. diameter. age. remaining life) Condition & performance Depreciation factors Salvage value 42     . material. Service life (design life. Asset Valuation . expected life. length. and then click Enable external content. To download and display this picture. capacity etc.

To download and display this picture. Levels of Service  Important considerations    What are the services? What are the standards? What are the target levels of service?  Levels of Service is a qualitative or quantitative measure to describe how well or poorly a service is provided by the asset or network of assets based on the asset¶s intended purpose within the capacity and satisfactory performance 43 . click Options in the Message Bar. and then click Enable external content. PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy.

To help protect your privacy. To download and display this picture. PowerPoint prevented this external picture from being automatically downloaded. and then click Enable external content. click Options in the Message Bar. Performance Indicators Performance Measured Criteria ± Key Performance Indicators (KPI)        Asset information Stakeholders Condition and performance Operational/maintenance Service quality Financial 44 .

To download and display this picture. PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy. Key Factors  System performance (capacity. condition) Serviceability Impact (disruptions in daily life) Risk tolerance level (health. click Options in the Message Bar. and then click Enable external content. remaining service life. safety and other direct and indirect costs) LongLong-term impact (environmental and other intangible impacts) Operation and Maintenance cost (life cycle basis) 45     .

click Options in the Message Bar. Establishing LOS Review Organizational Objectives/Vision Understand the Asset (inventory.To help protect your privacy. condition and performance) Determine Customer Expectations (demand. PowerPoint prevented this external picture from being automatically downloaded. To download and display this picture. and then click Enable external content. growth) Identify Required Measures for Levels of Service Assess and Quantify Risk Test Affordability (budget planning and forecasting) Select KPI¶s and Set Target Level of Services Policy and Implementation 46 .

To download and display this picture. color and chlorine residuals) Repair cost /year (last 5 years) 99% 99% 99% 20/year Repair cost /year (last 5 years) $$ $$ Target Levels --. Examples of Performance Indicators Measured Indicators (WATER) Per capita consumption System loss Service interruptions 10 km/ year or no.5 m/km Number of blockages Service interruptions 10km/ year or no. of days/ year Breakage rate Response time Head loss Drink water guidelines: Microbiological Color <15HU Turbidity < 1 NTU Number of complains (taste. of days/ year Number of complains (pollution.M3 pa <10% <20 5/100 km/yr <3 hrs >1. and then click Enable external content.3 m <20/year 20/year 47 . click Options in the Message Bar. PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy. contamination) Response time 25/year <20 <10/year <3 hrs Measured Indicators (WASTEWATER) Ipeak day/I average day Hydraulic capacity Basement flooding Surcharge Target Levels <5 >0.

click Options in the Message Bar.To help protect your privacy. and then click Enable external content. To download and display this picture. Risk  Definition: Risk is the probability that an event may adversely affect and measured by consequences and likelihood Common risk assessment methodologies    Quantitative Qualitative Engineering Public health and safety Financial Environmental 48  Risk categories     . PowerPoint prevented this external picture from being automatically downloaded.

click Options in the Message Bar. Risk Assessment Algorithm 49 .To help protect your privacy. To download and display this picture. PowerPoint prevented this external picture from being automatically downloaded. and then click Enable external content.

and then click Enable external content. Asset Management Model Stakeholders Infrastructure Ratepayers Quality of Service Sustainability Asset Management Implementation Investment Decision-Making Proactive Maintenance Business Process Levels of Service (LOS) Planning and Design Risk Assessment Asset Information Performance indicators Customer Expectations Legislative Orders Asset Valuation Availability of Resources Replacement /Renewal Life Cycle Model Installation/ Construction Condition Criticality Probability of Failure Consequence of Failure Cost Repair and Rehabilitation Operation and Maintenance Processes and Activities 50 . PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy. To download and display this picture. click Options in the Message Bar.

Application Tools Capital Asset Planning Tool 51 . and then click Enable external content. click Options in the Message Bar.To help protect your privacy. PowerPoint prevented this external picture from being automatically downloaded. To download and display this picture.

and then click Enable external content. To download and display this picture. Application Tools Linear Asset Prioritization Tool 52 . click Options in the Message Bar. PowerPoint prevented this external picture from being automatically downloaded.To help protect your privacy.

PowerPoint prevented this external picture from being automatically downloaded. MACA Capital Planning Tool 53 . click Options in the Message Bar. and then click Enable external content.To help protect your privacy. To download and display this picture.

PowerPoint prevented this external picture from being automatically downloaded. and then click Enable external content. click Options in the Message Bar. MACA Capital Planning Tool 54 . To download and display this picture.To help protect your privacy.

To download and display this picture.To help protect your privacy. What Next? Think globally and act locally Learn from failures Use best practices Stewardship for the infrastructure Work for the sustainable community New Deal a µWIN-WIN¶ situation for the NWT µWINcommunities       55 . PowerPoint prevented this external picture from being automatically downloaded. and then click Enable external content. click Options in the Message Bar.

Sanitary. Bridges. Water.nt. Fleets. click Options in the Message Bar. Energy. Transits. To download and display this picture. and then click Enable external content. Parks and Public Facilities Reduced Life Waste saidur_rahman@gov. Economy and Environment Consumption Services Built Environment Roads.To help protect your privacy. Drainage. Communications. PowerPoint prevented this external picture from being automatically downloaded. Buildings.ca Tel: (867) 873-7944 873- . Questions? Society.

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