The Value of Infrastructure Asset

Management

What is Infrastructure Asset Management?

• Definition*:Ongoing process of maintaining, upgrading, and operating physical assets cost-effectively, based on a continuous physical inventory and condition assessment

* from Michigan publication

What is Infrastructure Asset Management?• Definition:

Ongoing process of maintaining, upgrading, and operating physical assets cost-effectively, based on a continuous physical inventory and condition assessment

• Example assets• Roads• Bridges• Culverts/Storm Sewers• Curbs/Sidewalks• Stormwater Management Basins• Signs

What is Infrastructure Asset Management?• Definition:

Ongoing process of maintaining, upgrading, and operating physical assets cost-effectively, based on a continuous physical inventory and condition assessment

• A gap typically exists in a community because:• Operations and maintenance costs increase at a rate

faster than inflation because assets are getting older• Rates provide funds that are sufficient to sustain

current operation and maintenance, but insufficient to pay for upgrades or capital replacements

What is Infrastructure Asset Management?

• Township has:• 15 roads• 24’ wide• 1 mile long

• It costs:• $15.00/square yard to refurbish roadway

• Each road has:• 15 year design life• New road adopted each year for the last 15

years

What is Infrastructure Asset Management?

• Township needs to budget $211,200 per year, per mile

• Compare that to current Liquid Fuels and Turnback allocation per mile

What is Infrastructure Asset Management?

• Definition:Ongoing process of maintaining, upgrading, and operating physical assets cost-effectively, based on a continuous physical inventory and condition assessment

How did you get to this point?

• Existing assets• Acquisition of assets through development• Tight budgets• Political pressure to cut spending

Why develop asset management plans?

• Township elected officials and staff are at the front lines of fixing the Commonwealth’s crumbling infrastructure

• ASCE’s Failure to Act report:• “deteriorating infrastructure, long known to be a

public safety issue, has a cascading impact on the nation’s economy, negatively affecting business productivity, gross domestic product, employment, personal income, and international competitiveness.”

Why develop asset management plans?

• The timing of, and allocation from, grant programs may not be sufficient to address future needs

• Therefore, it is necessary to find ways to save money while still maintaining infrastructure assets at a desired level of service (quality and safety)

Why develop asset management plans?

* from Federal Highway Administration

How to Create an Asset Management Plan• Buy-in: working plan vs. paper weight• Definition:

Ongoing process of maintaining, upgrading, and operating physical assets cost-effectively, based on a continuous physical inventory and condition assessment

How to Create an Asset Management Plan• Steps• Inventory• Assess condition (rating)• Determine needs (cost estimates) “unrestricted” plan• Assess finances• Develop multi-year “budgeted” plan

How to Create an Asset Management Plan• Inventory• Existing maps• Existing lists/reports• As-builts• Drive to and measure• GIS

How to Create an Asset Management Plan

How to Create an Asset Management Plan

How to Create an Asset Management Plan

How to Create an Asset Management Plan• Assess condition (rating)• Multiple methods are published and available• Subjective method– Cheap– Need to use same set of eyes– Limited data analysis over time

How to Create an Asset Management Plan• Objective method• More time/expense• Multiple staff/consultants could come to same results• Data analysis over time could lead to a better

understand of deterioration rates

How to Create an Asset Management Plan

How to Create an Asset Management Plan

How to Create an Asset Management Plan

How to Create an Asset Management Plan

How to Create an Asset Management Plan

How to Create an Asset Management Plan• Determine needs (cost estimates) “unrestricted”

plan• Use judgment to develop prescriptions to bring asset up

to desired level of service• Prepare cost estimates for each prescription with

appropriate contingencies

How to Create an Asset Management Plan

How to Create an Asset Management Plan• Assess finances• Existing budgets• Funding opportunities

How to Create an Asset Management Plan• Develop multi-year “budgeted” plan• Develop priority ranking metrics (traffic, age,

drainage, hazards, resident input)• Coordination of condition assessment,

prescriptions and cost estimates, priorities, and finances• Living document• Implement and track progress and costs • Change plan as necessary (a changed plan is better than no plan)• Explain deviations to those who will follow you

• Repeat

How to Create an Asset Management Plan

How to Create an Asset Management Plan

Benefits

• Budget planning easier• Look at the plan• Spend or set aside

• Coordination of utilities• Example: Street cut ordinances with sliding scale

degradation fee• Fee waived if utilities make repairs prior to road repair• Note: A five-year plan may have to updated at year 3 or

4 so utilities can begin to plan for activities in years 6 and 7

Benefits

• Communication with residents• Demonstrate scope of work planned and how funds will

be allocated• Answer “When will my street be paved/bridge be

repaired/stormwater basin be fixed?”• Show Progress• Commitment to stick to plan• Reassess to show improved condition ratings

Benefits

57%36%

2%6%

2010 CONDITION VS. AREA (SY)

Series1

Poor

Fair

Good

Excellent

53%31%

1%14%

2012 CONDITION VS. AREA (SY)

Series1

QUESTIONS?