Self Assessment Tool

Transcription

1 Self Assessment Tool

2 Objectives of SAT Provide objective assessments for municipalities Measure progression over time of AM Educate the municipalities about the complexity of AM and their progress on the continuum Test PILOT tool

3 AM SAT Disclaimer ***PILOT*** Built for entire municipal sector Reinforces that AM is complex, challenging and ongoing/building process It s a process NOT just a document

4 SAT Overview Web based tool Cover AMP and AM process VERY detailed and comprehensive Questionnaire follows framework from 2012 Provincial Guide Detailed 5 point scale Area after each section to capture comments

5 A. Yes B. No Are you confident that staff understand AMP? 0% 0% Yes No

6 Polling Technology Questions are based on 2014 FIR s Closing Value = Total amount invested in that asset category, based on historical costs and unamortized

7 Linear Assets Rule. How much have municipalities spent* on the roads, bridges, water, waste water and storm water that they own as a percent of their overall assets? A. 85% B. 75% C. 65% D. 55% 0% 0% 0% 0% 85% 75% 65% 55% * Based on 2014 FIR closing balance amount invested over time excludes amortization

8 Linear Assets Rule. How much have municipalities spent* on the roads, bridges, water, waste water and storm water that they own as a percent of their overall assets? C 65% TCA in progress account for $14.5 B * Based on 2014 FIR closing balance amount invested over time excludes amortization

9 What is the next largest asset category, after Roads and Water/Storm, based on $ invested*? A. Parks B. Recreation C. General Government D. Transit E. Public Housing F. Emergency Services * Based on 2014 FIR closing balance amount invested over time excludes amortization Parks 0% 0% 0% 0% 0% 0% Recreation General Government Transit Public Housing Emergency Services

10 What is the next largest asset category, after Roads and Water/Storm, based on $ invested*? D Transit conventional 7% C General Government 6% E Public Housing (Non-profit, Homes for the aged, public housing) 4.7% B Recreation (Facilities, golf courses, etc.) 4.5% A Parks 4.4% F Emergency Services (Fire, Police, Ambulance) 2.4% These eight categories comprise 94% of all municipal assets * Based on 2014 FIR closing balance amount invested over time excludes amortization

11 Most Common Type of Assets Over 400 municipalities have assets for General Government and Paved Roads. Of this list, what is the next most common asset reported on FIR s? A. Libraries B. Cemeteries C. Parks D. Fire E. Solid Waste Disposal Libraries 0% 0% 0% 0% 0% Cemeteries Parks Fire Solid Waste Disposal

12 Most Common Type of Assets Over 400 municipalities have assets for General Government Most Common and Paved Roads. Type Of of this Assets list, what is the next most common asset reported on FIR s? D Fire C Parks A Libraries B Cemeteries E Solid Waste Disposal - 227

13 How Does SAT Work

14 SAT Framework General Questions Asset Specific Questions 1. Introduction 2. AM Policies and Procedures 3. State of Local Infrastructure 4. Levels of Service 5. AM Strategy 6. Financing Strategy 7. Making AM Operational 8. Continuous Improvements and Updates 9. AM Tools 10. Internal Governance and Ownership 11. Council Approval and Support 12. Public Engagement and Communication

15 SAT Overview General Questions: Approximately 30 questions Overall document and approach

16 SAT Overview Asset Specific: Approximately 60 questions per asset Asset determine questions to be answered Assets build on Ontario FIR guides

17 Demonstration of SAT

18 SAT Table of Contents Allows navigation through document SAT Shows progression Not started In progress Completed

19 SAT Table of Contents Cont d Print all questions Once all sections are completed Mark as completed appears Click on button to complete survey

20 SAT Table of Contents Cont d Once all sections are completed Mark as completed appears Click on button to complete survey

21 SAT Print Functionality

22 Obtain Access to SAT

23 Self Assessment Tool (SAT)

24 SAT Scores - Instructions On your table is an envelope that contains all the SAT Sections with descriptions of what each section contains. Take each one and order them from 1-12 based on the SAT scores with 1 being the lowest scores and 12 being the highest

25 Scores By Section Section Average Scores 4. Level of Service 36% 2. Asset Management Policy & Procedures 37% 12. Public Engagement and Communication 37% 5. AM (aka Lifecycle Management) Strategy 40% 6. Financial Strategy 40% 7. Making AM Operational 41% 8. Continuous Improvement and Updates 45% 9. AM Tools 46% 3. State of Local Infrastructure 46% 10. Internal Governance and Ownership 54% 11. Council Approval and Support 67% 1. Introduction 70%

26 Remainder of Session Initial questions presentation on topic. Follow up questions Participant response will determine the length of time spent in each Section Adjust our presentation to audience needs

27 1. Introduction

28 2. To what extent is your municipality aware of the benefits of AM within the organization? A. No awareness B. Some general awareness C. Moderate awareness D. Detailed awareness of some benefits E. Detailed awareness of all benefits No awareness 0% 0% 0% 0% 0% Some general awareness Moderate awareness Detailed awareness of s... Detailed awareness of all...

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30 Section 2. AM Policies and Procedures Strategic Asset Management Policy The regulation could contain a requirement for a strategic asset management policy to support the process of developing asset management plans. This policy would be aligned with many of the elements proposed in the introduction section of the Guide. It would also require municipalities to outline the role of council and the public during the development of asset management plans, and it would specify how often the municipality would update or renew their asset management plans. A strategic asset management policy would help to develop all future asset management plans, and would include considerations aimed at improving asset management planning over time. This policy would be a separate document from the municipality s asset management plan. Source: Infrastructure for Jobs and Prosperity Act, 2015: Municipal Asset Management Planning Regulation Draft Discussion Paper

31 1. Is AMP process supported by a policy and procedure? A. No policy or procedure B. No policy, but informal procedures followed C. No policy, but formal procedures documented D. Policy in place but no/informal procedures followed E. Policy in place and formal procedures documented No policy or procedure No policy, but informal... 0% 0% 0% 0% 0% Policy in place but no/in... No policy, but formal pr... Policy in place and forma...

32 2. To what extent does AM policy/procedures guide strategies and planning mechanisms with the AMP process? A. No guidance B. Some C. Moderate D. AM policy/proc. substantially integrated within strategies and planning mechanisms within the AMP E. AM policy/proc. fully integrated within strategies and planning mechanisms within the AMP No guidance 0% 0% 0% 0% 0% Some Moderate AM policy/proc. substant... AM policy/proc. fully int...

33 3. To what extent does AM policy/procedures provide measures and metrics to evaluate the performance and effectiveness of the AMP process? A. No measures and metrics B. High level discussions regarding measures and metrics C. Some measures and metrics D. Measure and metrics are included and used to evaluate the current AMP OR provide for improvement to future AMPs E. Measure and metrics are included and used to evaluate the current AMP AND provide for improvement to future AMPs No measures and metrics High level discussions re... 0% 0% 0% 0% 0% Some measures and metrics Measure and metrics are... Measure and metrics are...

34 Considerations for AM Policy What are the tasks, steps and sequence of events? Who is responsible for the work at each of the steps? What accountability measures are in place to ensure the work is done and done well? What metrics are in place to measure progress/success/failure?

35 Considerations for AM Policy Cont d What policies (procurement, budgeting capital project tracking, etc.) are needed and who is responsible for their development? How will the plan be evaluated? How will feedback be generated and feed into decision-making process?

36 Asset Management Policy (Excerpt from Draft Regulation) The following would be the list of the additional mandatory infrastructure asset management planning information that would have to be prepared by a municipality and included in a strategic asset management policy, that specifies: a) how the asset management plan will be consistent with the long-term municipal goals outlined by council, including those in municipal plans and policies, b) how the asset management plan will be consistent with the municipality's budget and any long-term financial plan, if one is in place, c) how the municipality will consider the principles outlined under section 3 of the IJPA in developing the asset management plan and how the asset management plan will be informed by: i. an understanding of current and future infrastructure needs and costs, ii. an understanding of risks and the municipality's ability to manage risks relating to infrastructure, including disaster planning and any required contingency funding, iii. accessibility standards, iv. changing demographics, including population growth or decline, v. climate change impacts, as well as adaptation and mitigation techniques, such as greenhouse gas emission reduction goals and targets, vi. and Ontario's land-use planning framework, priorities and outcomes, as set out in the Provincial Policy Statement (PPS), provincial land use plans such as the Growth Plan for the Greater Golden Horseshoe, and municipal official plans, where applicable d) a commitment that asset management plans will identify infrastructure activities to be undertaken, with consideration of the lifecycle of assets, for at least the ten years following the preparation of that plan or update, e) a commitment that plans will document key assumptions made within the plan and outline other important information including the capitalization threshold used for each category of assets, f) how often the municipality will update their asset management plan, which should occur at least every 4 years, g) the role of council during the development of the asset management plan and the role of council in ongoing asset management planning, which would be supported by a commitment to provide council with an annual update on asset management planning progress, factors affecting the ability to meet commitments outlined in the plan, and a strategy to address any shortcomings, and h) the role of residents of the community during the development of the asset management plan and the role of residents of the community in ongoing asset management planning.

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38 Section 3. State of Local Infrastructure (SOLI)

39 SOLI Building blocks for AMP Impact of maintenance standards SAT: Section with largest number of questions Relatively high score at 45.8% Highest score for all asset specific SAT questions

40 What percentage of your assets have condition assessments? A. 0-25% B % C % D % 0% 0% 0% 0% 0 25% 26 50% 51 75% %

41 Comparison of Age vs Condition Based Impacts Asset Type Weighted Average (rounded) Useful Life Remaining Useful Life % Useful Life Remaining Weighted Avg. Asset Condition Storm Water Sewers % Fair Storm Water Manholes % Fair Storm Water Catch Basins % Fair Road Surface % Poor Road Sub Surface % Good Guide Rails % Critical Sidewalks % Poor Traffic Lights % Fair Bridges % Fair Buildings % Fair Parks % Good Fleet % Fair Airport % Good Total

42 Condition Based Impacts Excellent RSL = 90% Performance / Condition Index RSL = 50% RSL = 10% Poor Decreasing Time Failure Increasing RSL = 0

43 What percentage of your assets are in adequate detail* for AMP? A. 0-25% B % C % D % * Assets are broken down components or segments 0% 0% 0% 0% 0 25% 26 50% 51 75% %

44 Consolidate Asset Listings Use one asset listing for all needs PSAB 3150 reporting Asset management Maintenance management Condition reports Master plans Financial studies (rate study, capital budget, etc.) Asset Type Historical Cost 12/31/2012 Accumulated Amortization 12/31/2012 Net Book Value 12/31/2012 Replacement Cost 2013$ Transportation Assets 21,336,342 7,298,472 14,037,870 55,814,045 Stormwater Mains 8,007,710 2,601,427 5,406,283 19,858,041 Facilities 7,742,343 2,663,970 5,078,373 35,853,406 Vehicles 3,237,800 1,076,882 2,160,918 3,797,513 Equipment & Machinery 784, , , ,527 Land Improvements 782, , ,714 1,493,615 Total Capital Assets (Tax Supported) $ 41,892,029 $ 14,429,340 $ 27,462,689 $ 117,690,147

45 Consolidate Asset Listings What if your asset management asset listing is significantly different than your PSAB 3150 asset listing? Live with 2+ asset listings? Inefficient, promotes departments working in silos Spend the time and resources to reconcile? Can be a considerable task! Restate your PSAB 3150 asset inventory? Align with asset management inventory Financial Statement restatement Auditor approval

46 Asset Register: Knowledge Fountain Component Replacement Value Component Useful Live Component Life Cycle Profile Historical Cost Valuation Capital Budget Technical LOS Strategic LOS Asset Register Operational LOS Asset List Condition Assessment Maintenance Mgmt Performance Rating Risk Assessment Criticality Long Term Plan (20 Years) Financial Strategy PSAB 3150 Reporting

47 Replacement Cost Increase the accuracy of your values. Insurance Values External Benchmark Costs (Reproduction Costs) Internal Benchmark (Reproduction Costs) Benchmark Costs (Replacement Costs) Inflated Historical Cost

48 Condition Assessments Increase the accuracy of your values. Aged based Assessment Age based Assessment, Adjusted by Staff Detailed Inspections (Staff/Consultant) Visual Inspections (Staff/Consultant)

49 Risk/Criticality Assessments Probability of Failure Consequence of Failure Insignificant Minor Moderate Major Catastrophic Rare L L M M H Unlikely L M M M H Possible L M M H E Likely M M H H E Almost Certain M H H E E Year of Construction Condition (/10) Probability of Failure (/10) Consequence of Failure (/10) Overall Risk Rating (Probability x Asset Consequence) Road A Medium Road B High Road C Medium Road D Low

50 5. How is replacement cost determined? A. No replacement cost valuation B. Reproduction cost primarily based on inflated historical costs C. Reproduction cost primarily based credible sources D. Some consideration of replacement and reproduction cost E. Replacement cost utilized throughout No replacement cost val... Reproduction cost primari.. 0% 0% 0% 0% 0% Reproduction cost primar... Replacement cost utilize... Some consideration of re...

51 7. Source of information for condition assessments? A. No condition rating B. Age based condition all assets C. Staff visual inspection all assets D. Staff visual inspection for non-complex assets complete condition ratings for complex assets E. Complete condition ratings and inspections for all assets No condition rating Age based condition all... 0% 0% 0% 0% 0% Staff visual inspection fo... Staff visual inspection al... Complete condition ratin..

52 13. Is condition data used to determine remaining life and future maintenance activities and capital works? A. Condition data is not used B. Condition data is used occasionally C. Condition data is used moderately D. Condition data is frequently used E. Condition data is always used Condition data is not used Condition data is used... Condition data is used oc... 0% 0% 0% 0% 0% Condition data is always... Condition data is frequen...

53 18. How is the risk matrix being utilized within AM? A. No risk matrix B. High level assessment of PoF and CoF (ie assessment by asset type) C. Some use of detailed asset data in calculating PoF and CoF D. Detailed asset data used in calculating PoF and CoF E. Detailed asset data used in calculating PoF and CoF, In addition, consideration given to redundancy factors No risk matrix High level assessment of P.. 0% 0% 0% 0% 0% Some use of detailed ass.. Detailed asset data used.. Detailed asset data used i...

54 State of Local Infrastructure - Resources Adds New Asset Management Tools Series of excel worksheet by municipal population Guidebook on how to use them

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56 Section 4. Level of Service Municipalities exist to provide service to resident and businesses Need to understand types and LOS to know type and nature of asset base LOS Strategic, Community and Operational Deals with LOS as well as service capacity

57 On average, how well developed is LOS in your AMP? A. No LOS B. Preliminary LOS developed C. LOS extensively developed D. LOS complete 0% 0% 0% 0% No LOS Preliminary LOS developed LOS extensively developed LOS complete

58 What response best describes your AMP as it relates to LOS? A. Little or no LOS B. LOS well developed for some assets C. LOS exists for most assets but varying quality D. LOS is well development for most assets Little or no LOS 0% 0% 0% 0% LOS well developed for... LOS exists for most asset... LOS is well development...

59 Expected 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 Important: LOS can significantly impact: Asset Inventory Asset Management Strategy (long-term forecast) Financing Strategy

60 Service Centric Asset Management Its all about understanding and defining what is the service that : We think we are to provide. Our customers expect. What we are really providing. What we can afford to provide. 60

61 Levels of Service what are they and how do they work? Strategic Plan? Measured through engagement, consultation and surveys Community expectations Strategic levels of service Measured through broad tangibles like comfort, accessibility, reliability of service and safety. Technical levels of service Measured through technical attributes like responsiveness and asset condition to deliver strategies.

62 Community Levels of Service community engagement Activity Format Audience News Quarterly articles over 12 months All readers Asset Fact Sheets Full page on each of ten major asset classes Provided at each community meeting and available on website & forum Community Meetings 7 progress associations and 1 public meeting 166 attendees total Mall / Visitor Info Center Stalls 2 x stalls to inform and seek feedback 234 visitors Video Available on web Shown at meetings

63 Strategic Levels of Service community engagement adoption of intervention thresholds Road pavements Carry on using current technical decision matrix which relies on combinations of specific defect ratings for each class of road Sidewalks Partial renewal of affected portion in Condition 2 Complete renewal at Condition 5 or wherever more cost-effective Curb & Gutter Renew at Condition 4 Stormwater Repairs or renewal as required at Condition 4 Bridges Repairs or renewal as required when an individual component reaches Condition 4 Buildings Sports grounds Parks Playgrounds Repair or renew when individual component reaches 4, unless building is premium hierarchy or component considered high risk (then earlier intervention - Condition 3) Repair or renew at Condition 4 except 3 for first grade pitch, lighting (safety risk) and irrigation (would cause playing surface to deteriorate) Repair or renewal at Condition 4 except seating, bubblers, gardens and lawns at lower hierarchy parks (other assets at hierarchy C parks represent safety or financial sustainability risks) Renew equipment every 15 years

64 Technical Levels of Service

65 Change to LOS Example LOS Category Parks Level of Service Strategic LOS Safe and Functional Parks Technical LOS Condition Rating Track Complaints

66 Change to LOS Example Playground Assset Inventory Useful Life Age RC Condition (/10) Playround ,000 3 Playround ,000 9 Playround ,000 0 Playround ,000 5 Playround ,000 6 Playround ,000 7 Playround ,000 8 Playround ,000 4 Weighted Condition 6

67 Change to LOS Example Provide safe and functional parks for community use Strategic LOS Average Condition Rating of 8/10 Technical LOS Current Average Condition Rating: 6/10 Increase Maintenance/Capital Spending on Parks

68 Change to LOS Example Playground Assset Inventory Useful Life Age RC Condition (/10) Playround ,000 7 Playround ,000 9 Playround , Playround ,000 7 Playround ,000 6 Playround ,000 7 Playround ,000 8 Playround ,000 7 Weighted Condition 8 $100,000 in rehab & replacement AM Forecast

69 Change to LOS Example Technical LOS Additional Impact on AM Forecast Average Condition of 6/10 $0 Average Condition of 7/10 $30,000 Average Condition of 8/10 $100,000 Average Condition of 9/10 $250,000 Average Condition of 10/10 $300,000 Cost/Benefit of LOS?

70 What service levels are we happy to live with? Asset Condition / Capacity / Functionality + Service Criticality 2 Excellent Good Fair Poor

71 1. Have your core services been identified? Core services not identifi.. Some core services are pa... Some core services identi... Most core services identi... All core services identified A. Core services not identified for AM purposes B. Some core services are partially identified for AM purposes C. Some core services identified for AM purposes D. Most core services identified E. All core services identified 0% 0% 0% 0% 0%

72 2. To what extent have service levels been developed? A. No service level identification B. Very little service level identification developed C. Some service levels developed D. Substantially all service levels E. All service level developed 0% 0% 0% 0% 0% No service level identific... Very little service level id... Some service levels deve... Substantially all service l... All service level developed

73 4. To what extent are you comparing current LOS to expected at a community level? A. No comparison B. Partial comparison C. Some comparison D. Most services are compared E. Full comparison No comparison 0% 0% 0% 0% 0% TBD Some comparison TBD Full comparison

74 10. Do you have a strategy in place to determine when and how service capacity assessments are updated? A. No strategy in place B. Strategy in place but does not meet your needs C. Strategy is in development D. Strategy in place but not followed, or process followed but not documented E. Strategy in place that meets the needs, and strategy is followed No strategy in place Strategy in place but do.. 0% 0% 0% 0% 0% TBD Strategy in place but not... Strategy in place that mee..

75 Level of Service Theoretically is the first step in the AMP LOS establishes expectations Annual cost to provide LOS How is LOS expected to change given future funding levels

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77 Section 5. AM Strategy (aka Asset Lifecycle)

78 Does your municipality consider the total lifecycle cost of an asset when making investment decisions*? A. Yes B. No *Investment decisions include operating and capital expenditures 0% 0% Yes No

79 Are these various options included/documented in your AMP? A. Yes B. No 0% 0% Yes No

80 Asset Management Strategy the set of planned actions that will enable the assets to provide the desired level of service in a sustainable way, while managing risk, at the lowest lifecycle cost Source: Building Together, Guide for Municipal Asset Management Plans (Ontario Ministry of Infrastructure)

81 Total Asset Lifecycle Approach: Location Performance Standards Features ID & Location Values Condition Inventory Useful Life Planned Commissioned Renewed Maintained Expansions Upgraded Renewal Major Replacement Assessments Reactive Maintenance Inspections Planned Maintenance

82 Total Asset Renewal Expenditure

83 70,000,000 Figure E 1 Tax Supported Assets Scenario 1 Based on PSAB 3150 Asset Data Future Replacement Cost (Inflated) 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 Storm Sewers Fleet Equipment Buildings Land Improvements Other Infrastructure Streetlights Traffic Signals Sidewalks Bridges Road Surface Road Base 10,000,000 Immediate Needs Year of Replacement 20,000,000 Figure E 2 Tax Supported Assets Scenario 2 Based on Adjusted PSAB 3150 Asset Data 18,000,000 Future Replacement Cost (Inlfated) 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Storm Sewers Fleet Equipment Buildings Land Improvements Other Infrastructure Streetlights Traffic Signals Sidewalks Bridges Road Surface Road Base 0 Immediate Needs Year of Replacement 7,000,000 Figure E 3 Tax Supported Assets Scenario 3 Phased in Replacement 6,000,000 Future Replacement Cost (Inlfated) 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Storm Sewers Fleet Equipment Buildings Land Improvements Other Infrastructure Streetlights Traffic Signals Sidewalks Bridges 0 Immediate Budget Road Surface Road Base Needs 2014 Year of Replacement

84 LOS Scenarios What different LOS approaches result in moving towards a sustainable position? Increasing/lowering specific LOS Reactive versus proactive maintenance? Maintenance vs. rehab vs. replacement? 2,500,000 Tax Supported Assets Scenario 2: Replacement Year Based on Condition and Risk Future Replacement Cost (Inflated) 2,000,000 1,500,000 1,000, ,000 Machinery/Equipment/Furniture Vehicles Land Improvements Buildings Storm sewer Bridges Roadwork Year of Replacement

85 Scenario Analysis Factors to consider:

86 3. To what extent are planned maintenance solutions incorporated into the AM Strategy? A. Not incorporated B. Some or high level incorporation C. Partially incorporated D. Full incorporation at asset type level E. Full incorporation at detailed asset level Not incorporated Some or high level incor... 0% 0% 0% 0% 0% TBD Full incorporation at asse... Full incorporation at deta...

87 4. What method is used to incorporate planned maintenance solutions into the AM Strategy? A. Based on historical practices B. Based on historical practices, and ad hoc adjustments C. Mix of practices are used D. Some consideration for asset condition, risk and level of service E. Full consideration for asset condition, risk and level of service Based on historical practices Based on historical practi... 0% 0% 0% 0% 0% TBD Some consideration for a... Full consideration for ass..

88 9. To what extent are growth and/or new service areas (i.e. DC related) incorporated into the AM strategy? A. Not incorporated B. Some or high level incorporation C. Partially incorporated D. Full incorporation at asset type level E. Full incorporation at detailed asset level Not incorporated Some or high level incor... 0% 0% 0% 0% 0% Partially incorporated Full incorporation at asse... Full incorporation at deta...

89 11. How is risk assessment used within the AM Strategy? A. No linkage B. Risk assessment used to determine corporate risk C. Risk assessment is partially used D. Risk assessment used to set priorities with AMP strategy E. Risk assessment used to determine corporate risk and to set priorities with AMP strategy No linkage Risk assessment used to... 0% 0% 0% 0% 0% TBD Risk assessment used to... Risk assessment used to...

90 12. Has the municipality considered multiple AM strategies within its AMP? A. No AM strategies considered B. One AM strategies considered C. AM strategy is a mix D. Multiple AM strategies considered at a high level E. Multiple AM strategies considered at a detailed level One AM strategies consi... No AM strategies consid... 0% 0% 0% 0% 0% TBD Multiple AM strategies c... Multiple AM strategies c...

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92 Section 6. Financing Strategy

93 1. Does the municipality have a financial strategy for all assets? A. No funding strategy B. Informal funding strategy for some funding* sources C. Informal funding strategy for all significant funding* sources D. Formal funding strategy for some significant funding* sources E. Formal funding strategy all significant funding* sources No funding strategy Informal funding strategy... Informal funding strategy... 0% 0% 0% 0% 0% Formal funding strategy f.. Formal funding strategy al... * Significant Funding sources include: gas tax, reserves, reserve funds, debt. etc.

94 Financial Strategy Impact in Taxation Use of Grants & Contributions Rate Sensitivity Analysis AM Policies Financial Strategy Debt Levels Impact on User Fees Reserve & Reserve Fund Impacts Infrastructure Funding Gap

95 Financial Strategy Integration Local Infrastructure LOS Impacts AM Strategy Financial Strategy Budget Long-term Capital Forecast Rate Study User Fee Studies Other

96 Scenario Retain Current Funding 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Year Pros Quantity of Very Poor roads ( Score = 5) reduced by one third over 15 year period Rate of deterioration arrested in first 10 years Manageable works program with a combination of external and internal resources Cons No reduction in quantity of very poor roads over first 8 years. Over 10% of roads are still in very poor condition after 15 years Millions Score 1 Score 2 Score 3 Score 4 Score 5 15 Year Renewal Expenditure $25 $15 Renewal $5 -$ Year Total expenditure over 15 years = $85.4M NPV = $18.6M 34% reduction in poor condition roads

97 Scenario Clear Backlog in 5 Years 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Millions $25 $15 $5 $ Year Score 1 Score 2 Score 3 Score 4 Score 5 15 Year Renewal Program Renewal Expenditure Year Pros All Very Poor roads eliminated in 5 Years Minimal Funding required from Year 7 onwards until approximately Year Cons Increasing rates to provide the $20.5 mill/yr required for road renewal would trigger significant community dissatisfaction The high volume of concurrent road reconstruction would result in significant traffic disruption The required high volume of concurrent work may exceed the capacity of the local supply chains resulting in delays and increased costs Total expenditure over 15 years = $128.3M NPV = $54.6M 100% reduction in poor condition roads

98 Scenario Clear Backlog in 10 Years 100% 80% 60% 40% 20% Pros All Very Poor Roads eliminated in 9 Years Cons Increasing rates Or borrowings to provide $13 Mill/Yr required for road renewal 0% Millions Year $25 $15 $5 $5 Score 1 Score 2 Score 3 Score 4 Score 5 15 Year Renewal Funding Renewal Year Minimal renewal funding required from Year 12 onwards until approximately Year The Volume of concurrent road reconstruction would result in traffic disruption Total expenditure over 15 years = $135.5M NPV = $40.4M 100% reduction in poor condition roads

99 Infrastructure Funding Gap Decreasing Funding gap Required Funding Current Funding

100 Infrastructure Funding Gap

101 2. Does the financial strategy detail out a long-term impact analysis on taxation/user fees? A. No analysis of taxation/user fees impact B. High level analysis of taxation/user fees impact over the short term C. High level analysis of taxation/user fees impact over the long term D. Detailed level analysis of taxation/user fees impact over the short term E. Detailed level analysis of taxation/user fees impact over the long term High level analysis of tax... No analysis of taxation/u... 0% 0% 0% 0% 0% Detailed level analysis of... High level analysis of tax... Detailed level analysis of... * Significant Funding sources include: gs tax, reserves, reserve funds, debt. etc.

102 9. Does the financing strategy include a detailed analysis of your infrastructure deficit? A. No analysis and no approach to calculate funding deficit B. Ad hoc analysis to calculate existing deficit C. Ad hoc analysis to calculate funding deficit over the long term D. Ad hoc analysis to calculate existing deficit E. Formal analysis to calculate funding deficit over the long term Ad hoc analysis to calcul... No analysis and no appr... 0% 0% 0% 0% 0% Ad hoc analysis to calcul... Ad hoc analysis to calcula.. Formal analysis to calcula..

103 13. Does the financing strategy include actual expenditures by lifecycle category for the past two to three years for comparison purposes? A. No B. Partial C. Some D. Mix E. Yes No analysis and no appr... 0% 0% 0% 0% 0% tbd Ad hoc analysis to calcula.. tbd Formal analysis to calcula..

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105 Section 7. Making AM Operational

106 Has your municipality shifted its thinking into a multi-departmental approach? A. Yes B. Partially C. No 0% 0% 0% Yes Partially No

107 Strategies and Approaches Cross functional integration Accounteering Top down Awareness and education Benefits Risks

108 The How to Imbed multi-departmental approach into work team and work plans Complete SAT s by one area and have other areas review them meet to discuss differences Top down approach need a corporate champion Big stick

109 Integration Capital and Operating budgets Long Term Financial/Sustainability Plan PSAB 3150 Compliance Process Strategic Planning Process Official Plan / Secondary Plans Master Plans Development Charges

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111 Section 8. Continuous Improvements and Updates

112 3. Does the Municipality have a process in place to incorporate improvements to the AMP? A. No process B. Some process C. Ad hoc process D. Mix of approaches E. Documented and approved process No process 0% 0% 0% 0% 0% TBD Ad hoc process TBD Documented and appro...

113 4. How often are AMP changes implemented/integrated? A. Improvement not performed B. Improvement are performed only when external pressures require it C. Improvements are based on available resources D. Improvement are performed for internal benefit but not on a regular schedule E. Improvement are performed for internal benefit but on a regular schedule (eg. Annually) Improvement not perf... Improvement are perfo... 0% 0% 0% 0% 0% TBD Improvement are perfo... Improvement are perfo...

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115 Section 9. AM Tools

116 3. Are there other assets related systems/tools utilized and how connected are they to the asset register? A. No other system/tools B. Other system/tools are used but no connection C. A mix of tools and connections D. Other system/tools are used but some connection E. Other system/tools are used but with full connection No other system/tools Other system/tools are u... 0% 0% 0% 0% 0% tbd Other system/tools are us.. Other system/tools are u...

117 4. Does your municipality have the ability to perform modeling optimization? A. No modeling optimization B. Use of external consultants to perform modeling optimization C. Use of internal spreadsheets to perform modeling optimization D. Use of system/tools to perform model optimization E. Extensive modeling optimization 0% 0% 0% 0% 0% No modeling optimization Use of external consultan.. Use of internal spreadshe... Use of system/tools to p...

118 5. Is the asset register spatially mapped? A. Assets not spatially mapped B. Assets partially spatially mapped C. Asset mapping is a mix D. All assets spatially mapped E. All assets spatially mapped and linked to asset register Assets partially spatially... Assets not spatially mapped 0% 0% 0% 0% 0% tbd All assets spatially mapped All assets spatially mapp..

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120 Section 10. Internal Governance and Ownership

121 Soft Skills Necessary for success implementation Move from AM Plan to PLANNING Influencing behaviour and actions

122 1. To what extent is the Asset Management planning process embedded within the organizational structure? A. No organizational support B. One department support C. Mix of support D. Few departments support E. All applicable departments support No organizational support 0% 0% 0% 0% 0% One department support Tbd Few departments support All applicable departmen...

123 3. To what extent is the Asset Management being utilized? A. No AMP /no utilization B. Utilized as a result of external pressures only C. Limited utilization D. Moderate utilization E. Full utilization 0% 0% 0% 0% 0% No AMP /no utilization Utilized as a result of ex... Limited utilization Moderate utilization Full utilization

124 6. Are the sufficient staff with core competency skills in key operational activities related to AM? A. Little or no staff competency and insufficient complement B. Some staff competency and insufficient complement C. Staff competency and complement is inconsistent D. Adequate staff competency but insufficient complement E. Adequate staff competency and sufficient complement Some staff competency... Little or no staff compet... 0% 0% 0% 0% 0% tbd Adequate staff compete... Adequate staff compete...

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126 Section 11. Council Approval and Support Section 12. Public Engagement and Communication

127 1. To what extent does Council support the AM Plan and AM process? A. No Council support B. Council receive the AM plan as information only C. Council approves the AM plan with no specific recommendations D. Council approves the AM plan and defers all recommendations to budget process E. Council approves the AM plan with specific recommendations to be included in budget process. 0% 0% 0% 0% 0% No Council support Council receive the AM p... Council approves the AM... Council approves the AM... Council approves the AM...

128 1. To what extent is the public involved in the Asset Management Process? A. No public involvement B. The public can attend Council meeting when AMP is being approved C. The public is aware of AM plans through active public education campaigns D. The public is invited to comment on a draft AMP E. The public is invited to provide input into AMP development. 0% 0% 0% 0% 0% No public involvement The public can attend C... Tbd The public is invited to... The public is invited to p...

129 Public Engagement and Communication Public input includes: Delegations Surveys Special meetings or information sessions Website information

130 Michigan Department of Transportation (MDOT)

131 Resources - Infrastructure Report Card Shows three different approaches: Basic Condition Multi-variable Funding

132

133 AM PLANNING Complex process(es) Involves many Departments and staff Many different stakeholders 1. Introduction 2. AM Policies and Procedures 3. State of Local Infrastructure 4. Levels of Service 5. AM Strategy 6. Financing Strategy 7. Making AM Operational 8. Continuous Improvements and Updates 9. AM Tools 10. Internal Governance and Ownership 11. Council Approval and Support 12. Public Engagement and Communication

134 Resources

135 Information and Resources

136