NotL AMP June 8, 2015 08/06/2015 1 David Anderson, CET 1 Draft Asset Management Plan Committee 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 2
25
Embed
Draft Asset Management Plan - Niagara-on-the-Lake Officescotw.notl.org/.../$FILE/AMP_NOTL_20150603_abridged.pdf · – WorkTech Asset Manager Foundation ... • 5- Draft Asset Management
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
NotL AMP June 8, 2015 08/06/2015
1
David Anderson, CET
1
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
2
NotL AMP June 8, 2015 08/06/2015
2
BACKGROUND
3
MOI Asset
Management
Plan
Requirements
4
NotL AMP June 8, 2015 08/06/2015
3
• Ministry of
Infrastructure
Asset Management
Defined
5
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
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
22
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.
NotL AMP June 8, 2015 08/06/2015
12
SotI –Remaining Service Life - Roads
23
SotI –Remaining
Service Life -
Structures
Figure 6.3: Remaining Design Life by Footprint – Culvert Structures
24
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.
NotL AMP June 8, 2015 08/06/2015
13
SotI –Remaining Service Life - Water
25
Water Linear Remaining Service Life –Length (m) by Time of Need
SotI –Remaining Service Life - Waste Water
26
Waste Water linear Condition and Remaining Service Life
NotL AMP June 8, 2015 08/06/2015
14
FINANCIAL PLAN
27
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
28
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.
NotL AMP June 8, 2015 08/06/2015
15
Sustainable
Funding
Requirements
• The sustainable funding
level for assets is required
to ensure continuity in
service delivery.
• Assets replaced when
required
29
Sustainable
Funding
Requirements
30
NotL AMP June 8, 2015 08/06/2015
16
Funding Gaps –Roads and Structures
31
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
32
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%
NotL AMP June 8, 2015 08/06/2015
17
Funding Gaps – Waste Water
33
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
34
NotL AMP June 8, 2015 08/06/2015
18
ASSET MANAGEMENT PLAN
35
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
36
NotL AMP June 8, 2015 08/06/2015
19
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
37
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
$$$
NotL AMP June 8, 2015 08/06/2015
20
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