Asset Management Long Term Sustainability Plan / Road and Bridge

Inventory Appraisal and Condition Rating

Arunas Kalinauskas – R.J. Burnside & Associates Limited, Manager Asset Management / GIS

Dan Wilson – Watson & Associates Economists Ltd.Director

Agenda• Introductions• R.J. Burnside & Associates Limited• Watson & Associates Economists Ltd.• Asset Management Outline• Project Progress and Completed Tasks• Remaining Tasks• Questions

R.J. Burnside & Associates Limited

• Employee owned company• Multi-disciplinary science and

engineering consulting firm with over 45 years of Municipal engineering service

• Over 345 employees• 11 Canadian Offices• 2 International Offices

Watson & Associates Economists Ltd.

• 22 staff members (Accountants, Planners and Economists)

• Specialize in financial consulting for municipalities– Asset Management– Water/Wastewater Plans– Development Charges– Building & Planning Fee Calculations

Asset Management

• A tool to assist in asset related decision making processes:– Operating & Maintaining, Replacement, Rehabilitation, Disposal

and Growth/Expansion– Tie to budget & capital forecast, rate study, growth study, other

strategic planning documents• Taking into account:

– Asset Attributes, Level of Service, Risk, Priorities, Funding, etc. • Goal: Move towards “sustainability” in an efficient and

effective manner• Only useful if its kept up to date.

Provincial Requirements

• Province: Grant Applications– Municipalities seeking provincial capital funding

must submit a detailed asset management plan• Must demonstrate how the proposed project is a

“priority” within the detailed asset management plan– MIII: Municipal Infrastructure Investment Initiative

• Funding available over the next few years (applications)

• Ontario Community Infrastructure Fund• Federal Gas Tax Agreement• Bill 6 and Draft Regulation

Building Together Guide• Guide documents the components, information

and analysis that are required to be included in a municipality’s asset management plan1. Executive Summary2. Introduction3. State of Local Infrastructure4. Expected Levels of Service5. Asset Management Strategy6. Financing Strategy

Asset Management Process

State of Local Infrastructure

Expected Levels of Service

Asset Management

Strategy

Financing Strategy

State of Local Infrastructure• Asset listing (types, sub-types, quantities, materials, etc); • Financial accounting valuation;• Replacement cost valuation;• Asset age distribution and asset age analysis; • Asset condition, using standard engineering practices;• Records of all assumptions incorporated into the asset

inventory; • A data verification policy/condition assessment policy

Condition vs. Life Cycle

Levels of Service

• Performance measures, targets and timeframes illustrating defined levels of service;

• External trends or issues that may affect desired levels of service or the municipality’s ability to meet them; and

• Show current performance relative to the targets established

• Compare: Current LOS to Expected LOS

Expected Levels of Service

• Your current budget reflects the cost of providing current LOS

• What is expected with respect to service? – Legislation, management, staff, Council, residents?– Public input on expected level of service?– Willingness to pay for expected LOS?– Strategic Planning Recommendations?

• What changes if you move to expected LOS?– Asset useful life? – Operating (maintenance) budget?– Asset rehab & replacement plan?

Bridge Example

LOS Not Being Met

West Side 2014

West Side 2012

East Side 2014

West Side 2012

Asset Management Strategy• Asset management strategy will provide the

recommended course of actions (i.e. long term forecast) required to maintain a sustainable asset position while delivering at the expected levels of service in a cost effective manner– Non-infrastructure solutions – Maintenance activities– Renewal/rehabilitation activities– Replacement activities– Disposal activities– Expansion activities

• Options Analysis

Risk Assessment

Risk Assessment

• Risk Mitigation (focus on M, H and E risk levels):• What is being done (or what can be done) to reduce risk

levels?– Inspections, enhanced maintenance programs, accelerated

replacement program, etc.

Insignificant Minor Moderate Major CatastrophicRare L L M M H

Unlikely L M M M HPossible L M M H E

Likely M M H H EAlmost Certain M H H E E

Consequence of FailureProbability of Failure

Financing Strategy

• Annual expenditure forecasts broken down by:– Non-infrastructure solutions;– Maintenance activities;– Renewal/rehabilitation activities;– Replacement activities;– Disposal activities; and– Expansion activities

• Actual expenditures in the above named categories for the past 2 to 3 years

• A breakdown of annual revenues by source• Identification of funding shortfall

Financial Strategy

Impact in Taxation

Reserve & Reserve Fund Impacts

Debt Capacity Calculation

Financing Strategy

Infrastructure Funding Gap

Use of Grants & Contributions

Funding Sensitivity Analysis 

Financial Policies

AMP Gravenhurst SummaryAsset Type Asset Sub Type Condition

AssessmentLevel of Service

Risk Assessment

Asset Strategy

Financing Strategy

Roads Base Analysis from Surface Data Information Gathered Information Gathered Analysis Waiting for Strategy

Asphalt Completed Information Gathered Information Gathered Analysis Waiting for Strategy

Surface Treated Completed Information Gathered Information Gathered Analysis Waiting for Strategy

Gravel Completed Information Gathered Information Gathered Completed Waiting for Strategy

Bridges Bridges Completed Information Gathered Information Gathered Completed Waiting for Strategy

Culverts Completed Information Gathered Information Gathered Completed Waiting for Strategy

Street Lights Completed Information Gathered Information Gathered Analysis Waiting for Strategy

Street Signs Completed Information Gathered Information Gathered Analysis Waiting for Strategy

Sidewalks Completed Information Gathered Information Gathered Analysis Waiting for Strategy

Road Equipment Information Gathered Information Gathered Analysis Waiting for Strategy

Facilities Sub-Structure Desktop Completed Information Gathered Information Gathered Completed Waiting for Strategy

Structure Desktop Completed Information Gathered Information Gathered Completed Waiting for Strategy

Exterior Enclosure Desktop Completed Information Gathered Information Gathered Completed Waiting for Strategy

Partitions & Doors Desktop Completed Information Gathered Information Gathered Completed Waiting for Strategy

Finishes Desktop Completed Information Gathered Information Gathered Completed Waiting for Strategy

Fittings & Equipment Desktop Completed Information Gathered Information Gathered Completed Waiting for Strategy

Mechanical Desktop Completed Information Gathered Information Gathered Completed Waiting for Strategy

Electrical Desktop Completed Information Gathered Information Gathered Completed Waiting for Strategy

Storm Water Storm Water Mains CCTV Completed Information Gathered Information Gathered Analysis Waiting for Strategy

Catch Basins CCTV Completed Information Gathered Information Gathered Analysis Waiting for Strategy

Machinery & Equipment Information Gathered Information Gathered Analysis Waiting for StrategyComputer Hardware & Software Information Gathered Information Gathered Analysis Waiting for Strategy

Vehicles Information Gathered Information Gathered Analysis Waiting for Strategy

Project Challenges/Opportunities• Improving Town Asset data for Asset Management

– Need for asset IDs for all assets to ensure proper reporting and management

– Required Town staff to extract more information on Town assets• Obtaining more detail in facilities to enable better financial

planning• Proper Road segmentation – and identifying current Road

Maintenance Class• Extracting Storm Water information• Adding more Asset Types to Town asset inventory• Implementing a Financing Strategy that can link to the annual

budget process

Remaining Project Tasks

• Finish Levels of Service analysis• Include Risk information into strategy• Final road analysis for prioritization of

improvements• GIS mapping of the Storm Sewers• Final asset strategy• Complete the financial strategy• Writing of the Asset Management Plan Report

Questions?Dan Wilson

Watson & Associates Economists Ltd.Phone: 905-272-3600 x233wilson@watson-econ.ca

www.watson-econ.ca

Arunas KalinauskasR.J.Burnside & Associates Limited

Phone: 519-938-3071Arunas.Kalinauskas@rjburnside.com

www.rjburnside.com