Using Asset Management Planning to Make Roadway Improvements
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1 Using Asset Management Planning to Make Roadway Improvements 1
2 Presentation Overview Status of Municipal Infrastructure Asset Management Year Pavement Life cycle Data, M,R&R, Prediction Models, Economic Factors Life Cycle Cost Analysis Prioritization Maximizing Useful Life 2
3 Average Annual Change in Per Capita Net Public Stock Status of Municipal Infrastructure Underinvestment of municipal infrastructure Provincial-Municipal Fiscal and Service Delivery Review Required investment $60 billion over 10 years $28 billion dedicated to upgrading roads and bridges Constant Sources: Statistics Canada and Ontario Ministry of Infrastructure 3
4 Status of Municipal Infrastructure The Canadian Infrastructure Report Card (2012) 123 Canadian municipalities (30 from Ontario) 4
5 Status of Municipal Infrastructure 5
6 Asset Management 101 Asset management is not new. It has always been a primary function of local government. What is new is incorporating what we have always done into a comprehensive and transparent asset management plan document that would be available for public review. 6
7 Asset Management 101 The Building Together Guide for Municipal Asset Management Plans defines asset management as: the process of making the best possible decisions regarding the building, operating, maintaining, renewing replacing and disposing of infrastructure assets 7
8 Asset Management Questions of Asset Management What do I have and where is it located? What is it worth? What is its condition and remaining service life? What needs to be done? When do I need to do it? How much will it cost? How do I ensure accountability? 8
9 15+ Year Pavement Life 9
10 15+ Year Pavement Life Data 10
11 15+ Year Pavement Life M,R&R Policies and Techniques 11
12 15+ Year Pavement Life M,R&R Policies and Techniques 12
13 15+ Year Pavement Life Performance Prediction 13
14 15+ Year Pavement Life Economic Factors Managing the trade-offs Cost Resources Quality Cycle Time * Used with permission from Corporate Renaissance Group 14
15 Life Cycle Cost Analysis Lifecycle cost analysis is a process for evaluating the total economic worth of a usable project segment by analyzing initial cost and discounted future costs, such as maintenance, user, reconstruction, rehabilitation, restoring, and resurfacing costs over the life of the project segment. - Transportation Equity Act for the 21 st Century 15
16 Life Cycle Cost Analysis Example 4 pavement design alternatives Costs Design Alternatives Construction, $ 1,000, , , ,000 Maintenance, $ 50,000 65,000 70,000 80,000 Rehabilitation, $ (@ year 10) 150,000 Sample calculations (Option 1 using r = 0.05 or 5%) where: C 0 = initial cost C = cash flow r = discount rate T = time (years) 16
17 Life Cycle Cost Analysis The preferred design alternative 17
18 Prioritization Road networks cannot be effectively managed based on age or condition index alone. Traditional M,R&R strategies have been based on the Worst First mentality or age of the asset. Reactive. Ineffective results. Does not maximize useful life. Allows assets in good condition to deteriorate to a deficient state. Higher costs. Develops a backlog of projects. 18
19 Prioritization Asset risk modeling. 19
20 Prioritization Methods Class of Method Simple subjective ranking of projects based on judgement Ranking based on parameters, such as level of service and condition Ranking based on parameters with economic analysis Optimization by mathematical programming model for year-by-year basis Near optimization using a marginal costeffectiveness approach Comprehensive optimization by mathematical programming model, taking into account the effects of which, what, and when Advantages / disadvantages Quick, simple; subject to bias and inconsistency; may be far from optimal Simple and easy to use; may be far from optimal Reasonably simple; should be closer to optimal Less simple; may be close to optimal; effects of timing not considered Reasonably simple; close to optimal results Most complex; can give optimal program (maximization of benefits, minimization of costs) 20
21 Cost ($, millions) Prioritization Example 25-year road infrastructure identified needs 6 5 Budget Average Required capital, $2.45 million Available capital, $1.125 million Deficit, $1.325 million 0 Year Traditional maintenance & rehabilitation strategies assigned based on a Worst First mentality using PCI 21
22 Prioritization Results (year five) Year PCI Only AHP Projects Cost ($)* Backlog ($)* Projects Cost ($)* Backlog ($)* AHP prioritization methodology resulted in 4 additional projects being completed Reduced funding backlog by $390,000 22
23 Maximizing Useful Life Getting back to the fundamentals. Design, Construction, and Inspection. Maintenance. Valuable Resources. Quality of Asphalt Pavement Task Force Bulletins. Increasing AC content, Responsible use of RAP. Asphalt 101 Lunch and Learn Webinars. Paving, Asphalt Plants Sampling/Testing, Asphalt Plant/Paving Inspection, Asphalt Cement. 23
24 Thank you James Smith, Ph.D. Manager, Member Technical Services Ontario Good Roads Association (OGRA) 24
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