Transcript Asset Management Plan - Powerpoint Presentation

Asset Management Plan
Presentation to
OPWA
Transportation & Works
Corporate Report 2005.173
Providing essential services that meet standards at minimum cost.
Strategic Items 22 and 24
March 28, 2006
Agenda
1. History
2. Overview of Asset Management Plan
3. Putting to all together - Detailed Strategy for
Paved Surfaces
4. Money, Money, Money
5. City Council
6. Conclusion
7. Help/Contacts
8. Q & A
New Foundation Strategic Plan
A goal of the City of Thunder Bay’s New Foundation
Living Strategic Plan is to “provide essential
services that meet our standards at minimum
cost”.
Strategic Action Number 22 and 24 of the plan at
March 2004 identified that an Infrastructure
Maintenance Plan and Facilities Asset
Management Plan for traffic signals, street lights,
roads, sidewalks, bridges, sanitary sewers, storm
sewers, water distribution, facilities and fleet
needed to be developed.
Overview of Asset
Management Plan
Arial View of Island Drive Bridge
What is asset management?
Asset Management is a systematic
process which allows for the
maintenance, upgrading and
operation of our physical assets in a
cost effective manner.
Why do we need asset management?
• Existing infrastructure is ageing
• Increased demand for better roads,
bridges, sidewalks, lights and improved
sewer & water systems
• Higher standards for safety & health
• Environmental protection concerns
• Regulations
• Growth
How was the plan developed?
The Transportation & Works Department reviewed
the existing long range infrastructure strategies
and current technical and financial practices
And compared the existing strategies and practices
to
Best management practices in other municipalities
and the InfraGuide prepared by the FCM & NRC
What are the benefits of asset
management?
►Facilitates the establishment of
policy objectives & related
measurement of performance
►Avoids problems & potential
crisis
►Provides better & consistent
levels of service for public
►Reduces life cycle costs
Benefits (continued)
► Allows for better decisions regarding resource
allocation
► Reduces risk to municipality
► Allows for more effective financial planning
► Leads to more efficient data management
► Results in positive institutional change
What are the key principals?
1.
Strategic & proactive in approach.
2.
Places a premium on data, information, collaboration and
interdisciplinary management.
3.
A long term and comprehensive view of infrastructure
performance and cost.
4.
An explicit, visible, and transparent approach requiring
effective communication among all stakeholders.
5.
A business case involving investment choices that are
policy driven with tradeoffs among competing priorities.
What are the essential
components of the plan?
1. Asset Value
2. Life Cycle Management
3. Sustainability
4. Integration of Technical & Financial Plans
5. Risk Assessment
6. Performance Management
1. Asset Value
It must be recognized that all
assets have a monetary value.
This value is used to determine
the depth of re-investment for
each asset. By knowing the
“value” the type of rehab strategy
and/or optimum replacement time
can be determined.
Finance Dept is participating in
the Ontario Municipal
Benchmarking Initiative (OMBI) to
determine actual value of assets
through a capital cost study.
2. Life Cycle Management
All assets have a finite life
expectancy.
 Estimate rate of deterioration
 Decision point – what impact
will work done at any point in
the life cycle have on remaining
asset life, operation costs and
other related expenses.
3. Sustainability
“Meeting the needs of the present
generation without compromising the
ability of future generations to meet their
own needs.” (National Guide to Sustainable Municipal
Infrastructure)
Current users pay a fair share for the service
they receive so that future users do not
have to pay a higher cost for the same
level of service.
4. Technical & Financial Plan
Integration
Financial Plan
Technical Plan
•Identify financial
investment required per
year for each asset’s life
cycle over the long term
•Minimize life cycle costs
•Identify exceptional
expenditures required to
meet requirements of
technical plan based on
condition surveys
•Maintain service level at
lowest possible risk
•Maintain adequate level of
service
Cash Flows
5. Risk Assessment
Acceptable risk tolerance for
each asset must be part of the
strategy
Condition survey used to
determine rate of failure and
consequences of failure
Risk Factors include:
financial, environmental,
regulatory/legal, public health
and safety
6. Performance Measurement
We need to measure what we do
Monitor strategies regularly
Make adjustments at the right stage of the
asset’s life cycle to achieve the balance
between cost and level of service
OMBI – use benchmarks to determine
performance of assets
Putting to all together
Asset
Management
Strategy for
Paved Surfaces
Paved Surfaces - Overall Condition Index (OCI)
Asset:
Paved Roads
Inventory:
1932 lane kilometres of paved lane surface
Anticipated asset
life cycle:
Pavement Life of a newly constructed road is affected by design, traffic volumes & loads, construction
quality and climate but generally the end of its useful life is:
Arterial Roads – 15 years, Collector Roads – 25 years, Local Roads – 35 years
Integrated:
With other buried assets located in the utility corridor, such as hydro or telephone or sewer & water
Rehab &
Replacement
Criteria:
Overall Condition Index (OCI) is a pavement condition rating between zero and ten which measures
defects in the pavement. An OCI equal to ten is a new pavement & and OCI equal to zero is a
pavement that is impassable. OCI Threshold point of rehabilitation or reconstruction for: Arterials &
Collectors – Rehabilitation = 6.0 (extend life up to 28 years depending on strategy); Reconstruction =
3.0 (total replacement of pavement). Locals – Rehabilitation = 5.0, Reconstruction = 3.0
Rehab and
Replacement
Strategies:
Based on OCI index, road classification (arterial, collector, local), rural or urban, curbed or no curbs,
benefit/cost ratio the following rehabilitation strategies are selected: Total reconstruction of
pavement with 80 mm or 120 m of hot mix asphalt. Mill & resurface pavement with 50mm or 80mm of
hot mix asphalt. Mill and resurface pavement with 50mm or 80mm or hot mix asphalt. Strip &
resurface pavement with 50mm or 80mm of hot mix asphalt. Pulverization & remixing with 50mm or
80mm of hot mix asphalt. Overlay with 50mm or hot mix asphalt. Mill & resurface patches of
pavement with 50mm of hot mix asphalt. Routing & crack sealing pavements
Life Cycle
Consequences:
Under funding pavement rehabilitation results in more pavement falling below an OCI of 6.0 & results
in quadrupling construction costs. Rehabilitating a pavement with an OCI of 6.0 reflects a cost of
$15/square meter & an added life of up to 28 years versus reconstruction a pavement with an OCI of
3.0 reflects a cost of $65/.square meter. Pavements falling to an OCI = 3.0 affects level of service, and
increases risk & liabilities.
Integrated Asset
Priorities:
Pavement rehabilitation forecast is compared to underground utility forecast. The integration of
projects occurs internally within T&W & externally with utility members of the Thunder Bay Public
Utility
Charts/Tables:
See attached OCI Charts. Note the difference in % length of roads within the zero to four
(reconstruction category following ten years of funding at $4M or funding at $10M
Estimated Cost
per year for
strategy
$7M/yr to $10M/yr based on OCI development in 2000. A new OCI
will be developed in 2005-6 which may change the estimated cost.
Paved Surfaces OCI Distribution Non-Arterial Streets 4M/Yr
Paved Surfaces OCI Distribution Non-Arterial Streets 10M/Yr
Money
Money
Money
What is the current tax supported
funding gap?
ASSET
Paved Roads
Bridges
Sidewalks
Traffic Signals
Street Lights
Storm Sewers
Facilities
Fleet
Total
Shortfall/Gap
$/YR REQUIRED
10.0M
1.5 M
1.0M
.4M
.35M
2.5M
5.0M
5.0M
25.75M
10.9M
2006
5.2M
.00M
.77M
.37M
.36M
.65M
2.75M
4.75M
14.85M
How do we bridge the gap?
1. Revise asset management strategies from time
to time in accordance with best management
practices, technology, financial constraints and
condition assessments.
2. Continue to work together to accommodate the
technical and financial requirements of the plan.
3. Continue to investigate and pursue any grant
funding opportunities that are related to the
sustainability of this Plan.
It is concluded that the
Asset Management Plan
as presented is a
systematic process for
the maintenance,
upgrading and operating
of our physical assets in
a cost effective manner.
Living Strategic
Action Plan
Action Items 22 & 24
City Council
Achievements/Benefits
•
Benefits were immediate;
•
Very well received - Asset Management
Plan complied with the intent of the
Strategic Plan;
•
Assisted with increasing the “roads”
rehab budget by 1.0 million (tax
supported) in 2006;
Achievements/Benefits
•
Federal gas tax monies/Grants directed
to Asset Management Plan to assist with
funding gap;
•
Provided an opportunity for dialogue;
•
Provided for excellent understanding as
to why (based upon the OCI for roads)
specific roads are rehabilitated prior to
others.
Achievements/Benefits
•
Few questions at budget time;
•
Minimal requests to modify capital
priorities at budget time;
•
Unspecified funds in budget to allow for
intervention when liability is found;
•
Request to include this overview as part
of City Council orientation.
Where to go for “HELP”
• Federation of Canadian
Municipalities and National Research
Council –InfraGuide
www.infraguide.ca
• Other Municipalities (BMP’s)
• Call Us for our Plan, Templates,
Presentations and Reports
• CTB Web site www.thunderbay.ca
Contacts
Pat Mauro, P,Eng
Manager of Engineering
807-625-2137
[email protected]
Darrell Matson
GM Transportation and Works
807-625-2137
[email protected]