Municipal Infrastructure Asset Management

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Strengthening Communities Strengthening Communities WorkshopWorkshop

from Policy To Practicefrom Policy To Practice

11 – 13 April, 200711 – 13 April, 2007Hotel Explorer, YellowknifeHotel Explorer, Yellowknife

Municipal Infrastructure Asset Municipal Infrastructure Asset ManagementManagement

Saidur Rahman, Saidur Rahman, Ph.D.Ph.D.

Senior Capital Planning OfficerSenior Capital Planning Officer

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Act Locally and Think GloballyAct Locally and Think Globally

Waste

Reduced Life

Society, Economy and Environment

Roads, Bridges, Buildings, Transits, Fleets, Water, Sanitary,

Drainage, Energy, Communications, Parks and

Public Facilities

Consumption

Services

Built EnvironmentBuilt Environment

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Presentation OutlinePresentation Outline

Understanding of infrastructure and Understanding of infrastructure and asset management asset management

Why we need to care about? Why we need to care about? BenefitsBenefits Asset management plan developmentAsset management plan development What is going on around? What is going on around? Where we are now? Where we are now? What to do next? What to do next?

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Municipal InfrastructureMunicipal Infrastructure

The Canadian Oxford Dictionary: The Canadian Oxford Dictionary: “infrastructure” as “the basic structural “infrastructure” as “the basic structural foundation of a society or enterprise; roads, foundation of a society or enterprise; roads, bridges, sewers, etc. regarded as a bridges, sewers, etc. regarded as a country's economic foundation”country's economic foundation”

City of Edmonton: “all the physical assets City of Edmonton: “all the physical assets developed and used by the City to support developed and used by the City to support the community’s social and economic the community’s social and economic activities”activities”

Community infrastructureCommunity infrastructure

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ClassificationsClassifications Linear and non-linearLinear and non-linear Surface and sub-surfaceSurface and sub-surface Tax supported, self-financing and quasi-Tax supported, self-financing and quasi-

commercial or blended commercial or blended (CWF – New Tools for New (CWF – New Tools for New Times, 2006)Times, 2006)

Community public infrastructure (CPI)Community public infrastructure (CPI) Stationary and movableStationary and movable Office buildings, fire hall, storage facilities, arena, Office buildings, fire hall, storage facilities, arena,

recreation centres, water and sewage facilities recreation centres, water and sewage facilities and solid waste disposal etc. and solid waste disposal etc.

Municipal InfrastructureMunicipal Infrastructure

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Asset ClassificationsAsset Classifications

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Why Municipal Infrastructure?Why Municipal Infrastructure?

Livable and healthy placeLivable and healthy place SafetySafety Economic prosperityEconomic prosperity Quality of lifeQuality of life

In Canada, municipal infrastructure worth In Canada, municipal infrastructure worth $1.1 trillion, approximately 20% of total built $1.1 trillion, approximately 20% of total built asset of $5.5 trillion (NRC)asset of $5.5 trillion (NRC)

Municipal assets are economic backbone Municipal assets are economic backbone and extremely high-value assets that and extremely high-value assets that cannot be allowed to deteriorate or misusecannot be allowed to deteriorate or misuse

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Municipal Infrastructure IssuesMunicipal Infrastructure Issues

Population growthPopulation growthPopulation Growth of CanadaPopulation Growth of Canada

[Source: The Sustainability Report]

42.312050

36.202026

32.742006

29.671996

24.821981

Population(millions)

Year

Infrastructure demand – $90 Infrastructure demand – $90 billion billion (Infrastructure Canada)(Infrastructure Canada)

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Municipalities are Municipalities are spending $12 - $15 spending $12 - $15 billion/year on billion/year on maintenance and rehab maintenance and rehab (FCM)(FCM)

Huge backlogHuge backlog Current funding level Current funding level

will deficit $1 trillion in will deficit $1 trillion in 60 years 60 years (CSCE 2003)(CSCE 2003)

(CSCE 2003)

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Aging of Aging of infrastructureinfrastructure

28% of Canada’s 28% of Canada’s infrastructure is infrastructure is over 80 years old, over 80 years old, and only 41% is and only 41% is under 40 years oldunder 40 years old (CSCE 2003)(CSCE 2003)

(CSCE 2003)

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79% useful service life of infrastructure 79% useful service life of infrastructure has been used has been used (CSCE 2003)(CSCE 2003)

Condition degradationCondition degradation

010

2030

405060

7080

90100

Con

ditio

n (%

of A

ccep

tabi

lity) Good/Acceptable Needs Repair/Not Acceptable

McGill Survey 2003 (Mirza and Haider)

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Infrastructure gap $50 to $125 billion, 6-10 Infrastructure gap $50 to $125 billion, 6-10 times of current annual infrastructure times of current annual infrastructure budgetbudget

Deferred maintenance for ‘Big Sixes’ $564 Deferred maintenance for ‘Big Sixes’ $564 million (2003 CWF)million (2003 CWF)

First Nations will cost $475 - $560 million First Nations will cost $475 - $560 million (2003 CAN$) to address risks for water and (2003 CAN$) to address risks for water and wastewater assetswastewater assets

Estimated cost for upgrading Canadian Estimated cost for upgrading Canadian sewer infrastructure is $11.8 billion (2003)sewer infrastructure is $11.8 billion (2003)

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MIIP Survey ResultsMIIP Survey Results

NRC-MIIP survey (2004) results:NRC-MIIP survey (2004) results:

• Total 67 municipalities of over 5000 peoplesTotal 67 municipalities of over 5000 peoples

• Questionnaire based on “Six Whats”Questionnaire based on “Six Whats”

• 70% spending less than 2% on maintenance70% spending less than 2% on maintenance

• 28% do not have system to record asset value28% do not have system to record asset value

• Assets were rated as 2.9 or “good” to “fair” Assets were rated as 2.9 or “good” to “fair” from range of 1 to 7 ratingsfrom range of 1 to 7 ratings

• 50% of the assets were at least 30 years old, in 50% of the assets were at least 30 years old, in 10 years 75% will be +30 years old10 years 75% will be +30 years old

• Represents 32% of Canadian populationRepresents 32% of Canadian population

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Infrastructure at StakeInfrastructure at Stake

Water main breaks: Avg. 700 breaks per Water main breaks: Avg. 700 breaks per day in Canada and USA ($3,000 per repair)day in Canada and USA ($3,000 per repair)

Walkerton tragedy: Walkerton tragedy: E. coli 0157:H7E. coli 0157:H7 outbreak in Walkerton. Cost $64 millionoutbreak in Walkerton. Cost $64 million

Peterborough flood in 2004Peterborough flood in 2004: Damage cost : Damage cost $20 to $40 million. Compensation $500/ $20 to $40 million. Compensation $500/ household and $2500/ small businesshousehold and $2500/ small business

Basement flooding: 30,000 to 40,000 events Basement flooding: 30,000 to 40,000 events /year, average cost $3,000 - $5,000 /events /year, average cost $3,000 - $5,000 /events (CMHC 2004)(CMHC 2004)

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We Actually NeedWe Actually Need

AccountabilityAccountability Customer (demand and service)Customer (demand and service) Staff (Fiscal responsibility, health and safety)Staff (Fiscal responsibility, health and safety) Environment (regulatory compliance)Environment (regulatory compliance)

Risk ManagementRisk Management Minimize health and safety tragedies/incidents Minimize health and safety tragedies/incidents Reduce liability claimsReduce liability claims

Asset SustainabilityAsset Sustainability Longer term (cradle to grave)Longer term (cradle to grave) Reserve fundingReserve funding

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So the Challenges are...So the Challenges are...

Infrastructure demand and population Infrastructure demand and population growthgrowth

Aging of infrastructure and condition Aging of infrastructure and condition deteriorationdeterioration

Infrastructure deficitInfrastructure deficit Service level improvementService level improvement Lack of integrated systems/tools and Lack of integrated systems/tools and

consistent approachconsistent approach Inadequate fundingInadequate funding Organizational restructuring Organizational restructuring

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How These Challenges Can be How These Challenges Can be AddressedAddressed

Identify maintenance, rehab and renewal Identify maintenance, rehab and renewal needsneeds

Increase system’s capacity and extend Increase system’s capacity and extend service lifeservice life

Stewardship of the environmentStewardship of the environment Define levels of service (LOS)Define levels of service (LOS) Ensure financial sustainabilityEnsure financial sustainability ImplementImplement Asset Management Plan Asset Management Plan

(based on ‘Six Whats’)(based on ‘Six Whats’)

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Need for ChangeNeed for Change

Asset management needs some Asset management needs some reorganization of public agencies functionreorganization of public agencies function

Traditional design-build- operate-maintain Traditional design-build- operate-maintain approach is simply inadequate in the face of approach is simply inadequate in the face of current dilemmacurrent dilemma

Adoption of asset management principles Adoption of asset management principles and tools (IT tools and financial regulations)and tools (IT tools and financial regulations)

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Evolution of Asset ManagementEvolution of Asset Management

In early 1900’s design and durability issues, In early 1900’s design and durability issues, versatile structures versatile structures

After World War II, reliability issues and After World War II, reliability issues and maintenance for mechanical and electrical maintenance for mechanical and electrical equipmentsequipments

In 1960’s green movements, LCC and LCM In 1960’s green movements, LCC and LCM In 1970’s and 1980’s PMS, CMMS and WO In 1970’s and 1980’s PMS, CMMS and WO In 1990’s IT tools, CMMS, CMMS to AMS, In 1990’s IT tools, CMMS, CMMS to AMS,

GIS and GPS GIS and GPS 2000 ~ Integrated systems2000 ~ Integrated systems

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What do You Think?What do You Think?

Clerks/municipal employees - Clerks/municipal employees - data data recording and reporting using General recording and reporting using General Accepted Accounting Principles (GAAP)Accepted Accounting Principles (GAAP)

Directors of finance – Directors of finance – strategic financial strategic financial planplan

Utility directors/supervisors - Utility directors/supervisors - maintain maintain the utilities and manage work order systemsthe utilities and manage work order systems

IT directors – IT directors – software, hardware, integrated software, hardware, integrated systems and database managementsystems and database management

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What is Asset Management?What is Asset Management?

What is your definition?What is your definition? NRC, FHWA and IIAM (Australia)NRC, FHWA and IIAM (Australia) ““Asset Management is a systematic process Asset Management is a systematic process

of planning, operating, maintaining, of planning, operating, maintaining, upgrading and replacing assets cost upgrading and replacing assets cost effectively with minimum risk and at the effectively with minimum risk and at the expected levels of service over the assets expected levels of service over the assets life cycle”life cycle”

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Asset Management BenefitsAsset Management Benefits

(Life cycle)

Reduce cost

Extend life

Two fold benefits:

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Asset Management BenefitsAsset Management Benefits

Balance between cost, risk and LOS

Levels of Service

(LOS)

CostRisk

Ser

vice

Lev

els

Service Provided

Service Items

Service Expected

Service Gap

Service Agreed/LOS

Ser

vice

Lev

els

Service Provided

Service Items

Service Expected

Service Gap

Service Agreed/LOSService Agreed/LOS

Levels of Service is a compromise between existing and expected service levels

Another benefit is to increase the levels of service

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Simple Questions?Simple Questions?

Simple questions but…Simple questions but… Is there anything wrong?Is there anything wrong? What is wrong?What is wrong? What should we do? How do we fix it?What should we do? How do we fix it? What will the benefits be?What will the benefits be? How much will it cost and how do we pay for it?How much will it cost and how do we pay for it? How can we be more proactive?How can we be more proactive?

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Who is Doing What?Who is Doing What?

Australian InitiativesAustralian Initiatives Institute of Public Works Institute of Public Works

Engineering Australia (IPWEA)Engineering Australia (IPWEA) IIAM ManualIIAM Manual

Asset Management Quarterly Asset Management Quarterly International (AMQI)International (AMQI)

Commonwealth Industrial and Commonwealth Industrial and Scientific Research Organization Scientific Research Organization (CSIRO)(CSIRO)

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In USAIn USA American Public Works Association (APWA) American Public Works Association (APWA) AMSA – Managing for Public Infrastructure AssetsAMSA – Managing for Public Infrastructure Assets AWWA – Publications and reportsAWWA – Publications and reports Federal Facilities Council (FFC) - Investments in Federal Federal Facilities Council (FFC) - Investments in Federal

FacilitiesFacilities FHWA FHWA

Asset Management Office: Primer on Asset management, LCCA, Asset Management Office: Primer on Asset management, LCCA, GASB and Case StudiesGASB and Case Studies

Transportation Asset Management ManualTransportation Asset Management Manual Software: LCCA, BMS and PMS etc.Software: LCCA, BMS and PMS etc.

National Association of College and University Business National Association of College and University Business Officers (NACUBO) – Facility Condition Index (FCI) Officers (NACUBO) – Facility Condition Index (FCI)

Others: WIN, WERF and TRBOthers: WIN, WERF and TRB

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Who is Doing What?Who is Doing What? In CanadaIn Canada

National Guide (IC, FCM, NRC)National Guide (IC, FCM, NRC) <www.ifraguide.gc.ca><www.ifraguide.gc.ca>

Canada wide network of $25.7 million budgetCanada wide network of $25.7 million budget Over 56 best practices in 7 target areasOver 56 best practices in 7 target areas

Infrastructure CanadaInfrastructure Canada Knowledge - Building, Outreach and Awareness (KOA) Knowledge - Building, Outreach and Awareness (KOA)

programprogram Infrastructure Canada ProgramInfrastructure Canada Program Canada Strategic Infrastructure FundCanada Strategic Infrastructure Fund

Municipal Infrastructure Investment Planning Municipal Infrastructure Investment Planning (MIIP) – NRC(MIIP) – NRC

10 municipalities consortium10 municipalities consortium Evaluating tools and techniques for investment planningEvaluating tools and techniques for investment planning

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Who is Doing What?Who is Doing What? Transportation Association of Canada (TAC)Transportation Association of Canada (TAC)

Primer on Highway Asset Management (1999)Primer on Highway Asset Management (1999) Bridge Management Guidelines (2004)Bridge Management Guidelines (2004)

Canadian Institute of Charted Accountants Canadian Institute of Charted Accountants (CICA)(CICA)

Accounting and Reporting for Physical Assets by Accounting and Reporting for Physical Assets by Governments (1990)Governments (1990)

Accounting for Infrastructure in the Public Sector (2003)Accounting for Infrastructure in the Public Sector (2003)

Canada Mortgage and Housing Corporation Canada Mortgage and Housing Corporation (CMHC)(CMHC)

Study reports on financial planning, alternative financing Study reports on financial planning, alternative financing and municipal infrastructureand municipal infrastructure

Public Sector Accounting Board (PSAB)Public Sector Accounting Board (PSAB)

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Municipal Infrastructure Data Standards (MIDS) Municipal Infrastructure Data Standards (MIDS) Municipal Performance Measurement Program Municipal Performance Measurement Program

(MPMP)(MPMP) Ontario Municipal CAO’s Benchmarking Initiative Ontario Municipal CAO’s Benchmarking Initiative

(OMBI) (OMBI) National Water and Wastewater Benchmarking National Water and Wastewater Benchmarking

InitiativeInitiative Municipal Infrastructure Management Systems Municipal Infrastructure Management Systems

(MIMS)(MIMS) Acts and Legislation (Federal, Provincial and Acts and Legislation (Federal, Provincial and

Territorial)Territorial)

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What Can Be Included?What Can Be Included?

What are the absolute requirements?What are the absolute requirements?

How do an existing system fit into?How do an existing system fit into?

How does Asset Management assist in How does Asset Management assist in monitoring of condition and performance?monitoring of condition and performance?

How should an Asset Management system How should an Asset Management system be implemented?be implemented?

How Asset Management is compatible with How Asset Management is compatible with business approach to managing business approach to managing infrastructure assets?infrastructure assets?

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Asset Management PlanAsset Management Plan

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Asset knowledge

Calculations

Models

Protocols

Decision-making

Step 1 to 3 – Data oriented

Step 4 to 5 – Methodology and policy issues

Step 6 – Decision-making

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Revisit the ‘Six Whats’Revisit the ‘Six Whats’

What do you own?What do you own?

What is it worth?What is it worth?

What is the condition? What is the condition?

What is the deferred maintenance?What is the deferred maintenance?

What is the remaining service life?What is the remaining service life?

What do you fix first?What do you fix first?

Calculations

Models

Protocols

Asset knowledge

Decision-making

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Revisit the ‘Six Whats’Revisit the ‘Six Whats’ What do you own?What do you own?

• Asset inventoryAsset inventory

• DatabaseDatabase Paper basedPaper based

ElectronicElectronic (relational database and spreadsheets)(relational database and spreadsheets) Integration with GIS and CMMSIntegration with GIS and CMMS

What is it worth?What is it worth?• Asset valuationAsset valuation

Book value, historical value, depreciated value, PVBook value, historical value, depreciated value, PV Current Replacement Value (CRV)Current Replacement Value (CRV) Cost modeling (direct and indirect costs, PSAB, FCA)Cost modeling (direct and indirect costs, PSAB, FCA)

• Life cycle cost/Whole life costLife cycle cost/Whole life cost

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Revisit the ‘Six Whats’Revisit the ‘Six Whats’

What is the condition?What is the condition?• Condition assessmentCondition assessment

Condition grading systems (subjective evaluation, distress based Condition grading systems (subjective evaluation, distress based matrices and hybrid systems)matrices and hybrid systems)

• Structural and functional (defects, breaks, hydraulics, Structural and functional (defects, breaks, hydraulics, blockages etc.)blockages etc.)

• Protocols (IT tools)Protocols (IT tools) PMS, BMS, WRc, NAAPI or homegrownPMS, BMS, WRc, NAAPI or homegrown

• Prediction modeling (Markov, survival functions, NN)Prediction modeling (Markov, survival functions, NN)

What is the deferred maintenance?What is the deferred maintenance?• Facility Condition Index (FCI)Facility Condition Index (FCI)

• Maintenance backlog and economic inflation/deflationMaintenance backlog and economic inflation/deflation

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Revisit the ‘Six Whats’Revisit the ‘Six Whats’ What is the remaining service life?What is the remaining service life?

• Service life modelingService life modeling Analytical and probabilistic methodsAnalytical and probabilistic methods Costs for alternative maintenance, repair and renewalCosts for alternative maintenance, repair and renewal

What do you fix first?What do you fix first?• PrioritizationPrioritization

Methods: AHP, B/C, weighted factor methods, PAN, MOO Methods: AHP, B/C, weighted factor methods, PAN, MOO and expert knowledgeand expert knowledge

Ranking: Asset by asset or group of assetsRanking: Asset by asset or group of assets Costs for alternative maintenance, repair and renewalCosts for alternative maintenance, repair and renewal

• Decision-makingDecision-making Combination of all and political agendaCombination of all and political agenda

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Asset Management FrameworkAsset Management Framework

Planning (proactive and reactive)Planning (proactive and reactive)

Implementation (generally life cycle approach)Implementation (generally life cycle approach)• Acquisition/constructionAcquisition/construction

• OperationOperation

• MaintenanceMaintenance

• Repair and rehabRepair and rehab

• decommissioningdecommissioning

EvaluatingEvaluating

Improving/DevelopingImproving/Developing

Planning

Implementtin

g

Evaluating

Improving/

Development

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Asset Management FrameworkAsset Management Framework

TOP DOWN

System Knowledge

BOTTOM UP

Asset / Component Data

PROGRAM LEVEL: High-level decision-making. Synonymous to “Top-Down Approach”

MIXTURE OF BOTH

PROJECT LEVEL: Detailed assessment on an asset-by-asset basis. Synonymous to “Bottom-Up Approach”

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Some Specific Issues…Some Specific Issues…

What are the service standards for WTP?What are the service standards for WTP?

What level of details are available for pump What level of details are available for pump station? O&M manual?station? O&M manual?

How many water trucks you need?How many water trucks you need?

Show the investment for next 20 years?Show the investment for next 20 years?

Show the critical asset on the map?Show the critical asset on the map?

What are the risks and how will be managed?What are the risks and how will be managed?

How will you prioritize your investment? How will you prioritize your investment?

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Asset Valuation and Management Asset Valuation and Management DriversDrivers

CorporateCorporate Enhance accountability & responsibility (insurance)Enhance accountability & responsibility (insurance) Satisfy emerging legislative issuesSatisfy emerging legislative issues

Engineering & OperationsEngineering & Operations Strategic investment decision-making for short & Strategic investment decision-making for short &

long termlong term Manage future growth & demandManage future growth & demand

FinanceFinance Stabilize Rates / ReservesStabilize Rates / Reserves

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Asset Valuation MethodsAsset Valuation Methods

MethodsMethods AdvantagesAdvantages DisadvantagesDisadvantages

Book Value, Book Value, Historical CostsHistorical Costs

Data availableData available

Simple methodSimple method

Does not account for any Does not account for any changes as: price, technology changes as: price, technology and usabilityand usability

Written down Written down replacement replacement costcost

Compares replacement optionsCompares replacement options Accurate condition/ performance Accurate condition/ performance data requireddata required

Current Current replacement replacement value (CRV)value (CRV)

Straight forwardStraight forward

Reflects current conditionReflects current condition

Identify backlogsIdentify backlogs

Misleads when an old asset Misleads when an old asset behaves like good condition as behaves like good condition as new assetnew asset

Net salvage Net salvage valuevalue

Uses for available data (service life, Uses for available data (service life, material usages)material usages)

Difficult to predict future cost and Difficult to predict future cost and asset usageasset usage

Optimized Optimized replacement replacement costcost

Optimized for service life and Optimized for service life and conditioncondition

Reflects actual costs and benefitsReflects actual costs and benefits

Impacts for uncertainties like Impacts for uncertainties like condition, performance and condition, performance and economic factorseconomic factors

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Asset Valuation Model AlgorithmAsset Valuation Model Algorithm

Define Component Levels & Attributes

Capture Inventories (integrated system)

Assess Asset Condition

Assess Asset Value & Risk Level

Optimized Replacement Cost

Asset Value

• Inventory data• Condition data

• Replacement options• Cost comparison• Depreciation

• Performance• Criticality• Prob. of failure

Asset Life Expectancy & Remaining Life

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Asset Valuation - User vs OwnerAsset Valuation - User vs Owner

EconomicsEconomics Unit costs based on: area, length, diameter, Unit costs based on: area, length, diameter,

material, capacity etc.material, capacity etc. Service life (design life, expected life, age, Service life (design life, expected life, age,

remaining life)remaining life) Condition & performanceCondition & performance Depreciation factorsDepreciation factors Salvage valueSalvage value

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Levels of ServiceLevels of Service

Important considerationsImportant considerations What are the services? What are the services? What are the standards? What are the standards? What are the target levels of service?What are the target levels of service?

Levels of Service is a qualitative or Levels of Service is a qualitative or quantitative measure to describe how well quantitative measure to describe how well or poorly a service is provided by the asset or poorly a service is provided by the asset or network of assets based on the asset’s or network of assets based on the asset’s intended purpose within the capacity and intended purpose within the capacity and satisfactory performancesatisfactory performance

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Performance IndicatorsPerformance Indicators

Performance Measured Criteria – Key Performance Measured Criteria – Key Performance Indicators (KPI)Performance Indicators (KPI)

Asset informationAsset information StakeholdersStakeholders Condition and performanceCondition and performance Operational/maintenanceOperational/maintenance Service qualityService quality FinancialFinancial

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Key FactorsKey Factors

System performance (capacity, remaining System performance (capacity, remaining service life, condition)service life, condition)

Serviceability Impact (disruptions in daily Serviceability Impact (disruptions in daily life)life)

Risk tolerance level (health, safety and Risk tolerance level (health, safety and other direct and indirect costs)other direct and indirect costs)

Long-term impact (environmental and other Long-term impact (environmental and other intangible impacts)intangible impacts)

Operation and Maintenance cost (life cycle Operation and Maintenance cost (life cycle basis)basis)

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Establishing LOSEstablishing LOS

Review Organizational Objectives/Vision

Understand the Asset (inventory, condition and performance)

Determine Customer Expectations (demand, 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

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Examples of Performance Examples of Performance IndicatorsIndicators

Measured Indicators (WATER)Measured Indicators (WATER) Target Target LevelsLevels

Per capita consumptionPer capita consumption --- M--- M3 3 papa

System lossSystem loss <10%<10%

Service interruptions 10 km/ Service interruptions 10 km/ year or no. of days/ yearyear or no. of days/ year

<20<20

Breakage rateBreakage rate 5/100 km/yr5/100 km/yr

Response timeResponse time <3 hrs<3 hrs

Head lossHead loss >1.5 m/km>1.5 m/km

Drink water guidelines:Drink water guidelines:

MicrobiologicalMicrobiological

Color <15HUColor <15HU

Turbidity < 1 NTUTurbidity < 1 NTU

99%99%

99%99%

99%99%

Number of complains (taste, Number of complains (taste, color and chlorine residuals)color and chlorine residuals)

20/year20/year

Repair cost /year (last 5 years)Repair cost /year (last 5 years) $$$$

Measured Indicators Measured Indicators (WASTEWATER)(WASTEWATER)

Target Target LevelsLevels

IIpeak daypeak day/I /I average dayaverage day <5<5

Hydraulic capacityHydraulic capacity >0.3 m>0.3 m

Basement floodingBasement flooding <20/year<20/year

SurchargeSurcharge 20/year20/year

Number of blockagesNumber of blockages 25/year25/year

Service interruptions 10km/ Service interruptions 10km/ year or no. of days/ yearyear or no. of days/ year

<20<20

Number of complains Number of complains (pollution, contamination)(pollution, contamination)

<10/year<10/year

Response timeResponse time <3 hrs<3 hrs

Repair cost /year (last 5 years)Repair cost /year (last 5 years) $$$$

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RiskRisk Definition: Risk is the probability that an Definition: Risk is the probability that an

event may adversely affect and measured event may adversely affect and measured by consequences and likelihoodby consequences and likelihood

Common risk assessment methodologiesCommon risk assessment methodologies QuantitativeQuantitative QualitativeQualitative

Risk categoriesRisk categories EngineeringEngineering Public health and safetyPublic health and safety FinancialFinancial EnvironmentalEnvironmental

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Risk Assessment AlgorithmRisk Assessment Algorithm

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Asset Management ModelAsset Management Model

Infrastructure Ratepayers

Infrastructure Ratepayers

Proactive Maintenance

Proactive Maintenance

Levels of Service (LOS)Levels of Service (LOS)

Investment Decision-Making

Investment Decision-Making

StakeholdersStakeholders

Asset Management

Implementation

Asset Management

Implementation

Planning and

Design

Installation/ Construction

Operation and Maintenance

Repair and Rehabilitation

Replacement/Renewal

Life Cycle

Model

Performance indicators

Customer Expectations

Legislative Orders

Asset Valuation

Availability of Resources

Business Process

Business Process

SustainabilitySustainabilityQuality of Service

Quality of Service

Risk AssessmentRisk Assessment

Asset Information

Condition

Criticality

Probability of Failure

Consequence of Failure

Cost

Processes and Processes and ActivitiesActivities

Processes and Processes and ActivitiesActivities

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Application ToolsApplication Tools

Capital Asset Planning ToolCapital Asset Planning Tool

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Application ToolsApplication Tools

Linear Asset Prioritization ToolLinear Asset Prioritization Tool

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MACA Capital Planning ToolMACA Capital Planning Tool

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MACA Capital Planning ToolMACA Capital Planning Tool

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What Next?What Next?

Think globally and act locallyThink globally and act locally Learn from failuresLearn from failures Use best practicesUse best practices Stewardship for the infrastructureStewardship for the infrastructure Work for the sustainable communityWork for the sustainable community New Deal a ‘WIN-WIN’ situation for the NWT New Deal a ‘WIN-WIN’ situation for the NWT

communitiescommunities

[email protected][email protected]

Tel: (867) 873-7944Tel: (867) 873-7944

Questions?Questions?

Waste

Reduced Life

Society, Economy and Environment

Roads, Bridges, Buildings, Transits, Fleets, Water,

Sanitary, Drainage, Energy, Communications, Parks and

Public Facilities

Consumption

Services

Built EnvironmentBuilt Environment

Municipal Infrastructure Asset Management

Documents

Transcript of Municipal Infrastructure Asset Management