Asset Management Plan Presentation to OPWA

2. Asset Management PlanPresentation toOPWA • Transportation & Works • Corporate Report 2005.173 • Providing essential services that meet standards at minimum cost. • Strategic Items 22 and 24 • March 28, 2006

3. Agenda • 1. History • Overview of Asset Management Plan • Putting to all together - Detailed Strategy for Paved Surfaces • Money, Money, Money • City Council • Conclusion • Help/Contacts • Q & A

4. New Foundation Strategic Plan • A goal of the City of Thunder Bay’s New Foundation Living Strategic Plan is to “provide essential services that meet our standards at minimum cost”. • Strategic Action Number 22 and 24 of the plan at March 2004 identified that an Infrastructure Maintenance Plan and Facilities Asset Management Plan for traffic signals, street lights, roads, sidewalks, bridges, sanitary sewers, storm sewers, water distribution, facilities and fleet needed to be developed.

5. Overview of Asset • Management Plan • Arial View of Island Drive Bridge

6. What is asset management? Asset Management is a systematic process which allows for the maintenance, upgrading and operation of our physical assets in a cost effective manner.

7. Why do we need asset management? • Existing infrastructure is ageing • Increased demand for better roads, bridges, sidewalks, lights and improved sewer & water systems • Higher standards for safety & health • Environmental protection concerns • Regulations • Growth

8. How was the plan developed? The Transportation & Works Department reviewed the existing long range infrastructure strategies and current technical and financial practices And compared the existing strategies and practices to Best management practices in other municipalities and the InfraGuide prepared by the FCM & NRC

9. Facilitates the establishment of policy objectives & related measurement of performance Avoids problems & potential crisis Provides better & consistent levels of service for public Reduces life cycle costs What are the benefits of asset management?

10. Benefits (continued) • Allows for better decisions regarding resource allocation • Reduces risk to municipality • Allows for more effective financial planning • Leads to more efficient data management • Results in positive institutional change

11. What are the key principals? • Strategic & proactive in approach. • Places a premium on data, information, collaboration and interdisciplinary management. • A long term and comprehensive view of infrastructure performance and cost. • An explicit, visible, and transparent approach requiring effective communication among all stakeholders. • A business case involving investment choices that are policy driven with tradeoffs among competing priorities.

12. What are the essential components of the plan? • Asset Value • Life Cycle Management • Sustainability • Integration of Technical & Financial Plans • Risk Assessment • Performance Management

13. 1. Asset Value • It must be recognized that all assets have a monetary value. This value is used to determine the depth of re-investment for each asset. By knowing the “value” the type of rehab strategy and/or optimum replacement time can be determined. • Finance Dept is participating in the Ontario Municipal Benchmarking Initiative (OMBI) to determine actual value of assets through a capital cost study.

14. 2. Life Cycle Management • All assets have a finite life expectancy. • Estimate rate of deterioration • Decision point – what impact will work done at any point in the life cycle have on remaining asset life, operation costs and other related expenses.

15. 3. Sustainability • “Meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.” (National Guide to Sustainable Municipal Infrastructure) • Current users pay a fair share for the service they receive so that future users do not have to pay a higher cost for the same level of service.

16. 4. Technical & Financial Plan Integration

17. 5. Risk Assessment • Acceptable risk tolerance for each asset must be part of the strategy • Condition survey used to determine rate of failure and consequences of failure • Risk Factors include: financial, environmental, regulatory/legal, public health and safety

18. Performance MeasurementWe need to measure what we do • Monitor strategies regularly • Make adjustments at the right stage of the asset’s life cycle to achieve the balance between cost and level of service • OMBI – use benchmarks to determine performance of assets

19. Putting to all together • Asset • Management • Strategy for • Paved Surfaces

20. Paved Surfaces - Overall Condition Index (OCI)

21. Paved Surfaces OCI Distribution Non-Arterial Streets 4M/Yr

22. Paved Surfaces OCI Distribution Non-Arterial Streets 10M/Yr

23. Money • Money • Money

24. What is the current tax supported funding gap?

25. How do we bridge the gap? • Revise asset management strategies from time to time in accordance with best management practices, technology, financial constraints and condition assessments. • Continue to work together to accommodate the technical and financial requirements of the plan. • Continue to investigate and pursue any grant funding opportunities that are related to the sustainability of this Plan.

26. It is concluded that the Asset Management Plan as presented is a systematic process for the maintenance, upgrading and operating of our physical assets in a cost effective manner. Living Strategic Action Plan Action Items 22 & 24

27. City Council

28. Achievements/Benefits • Benefits were immediate; • Very well received - Asset Management Plan complied with the intent of the Strategic Plan; • Assisted with increasing the “roads” rehab budget by 1.0 million (tax supported) in 2006;

29. Achievements/Benefits • Federal gas tax monies/Grants directed to Asset Management Plan to assist with funding gap; • Provided an opportunity for dialogue; • Provided for excellent understanding as to why (based upon the OCI for roads) specific roads are rehabilitated prior to others.

30. Achievements/Benefits • Few questions at budget time; • Minimal requests to modify capital priorities at budget time; • Unspecified funds in budget to allow for intervention when liability is found; • Request to include this overview as part of City Council orientation.

31. Where to go for “HELP” • Federation of Canadian Municipalities and National Research Council –InfraGuide www.infraguide.ca • Other Municipalities (BMP’s) • Call Us for our Plan, Templates, Presentations and Reports • CTB Web site www.thunderbay.ca

32. Contacts • Pat Mauro, P,Eng • Manager of Engineering • 807-625-2137 • pmauro@thunderbay.ca • Darrell Matson • GM Transportation and Works • 807-625-2137 • dmatson@thunderbay.ca