Asset Management Implementation Strategy

Asset Management

Implementation

Strategy

I. M. (Abe) Mouaket, Ph.D., P. Eng.

Transportation Operational Planning & Policy Engineer,

Transportation Infrastructure Asset Management Transportation Services Division, City of Toronto

Paper # 0065

SESSION # S025:Taking the Next Step PRESIDING OFFICER:

Thursday, November 3, 2005 Kenneth James Leonard, 8:00 – 10:00 a.m. Cambridge Systematics, Inc.

Stra tegy

Overall

Strategy

People’s

Readiness

Available

Resources

External

Forces &

Pressures

What

Tools & Skills

Are Available

The City of Toronto’s Approach to Asset

Management: incremental.

Our experience suggests that evolution

is more productive than revolution.

The evolutionary strategy is doable, more

palatable, and cost-effective.

Time 6 Independent Municipalities City of Toronto Borough of Scarborough Borough of Etobicoke Borough of North York

Borough of York Borough of East York

1953 Creatio n of th e Corpo ration of Metro polita n Toro nto

City of Toronto:

Historical Synopsis

City of York Borough of East York

Toronto Before Amalgamation

Corporation of Metropolitan Toronto

Metro Toronto Local Municipality All Internal Community Affairs Across Community Needs

City of Toronto:

Historical Synopsis

Borough of York Borough of East York

1953 Creatio n of th e Corpo ration of Metro polita n Toro nto Amalg amati on of 7 Munic ipaliti es in to The C ity of Toron to 1998 Metro Toronto City of Toronto City of Scarborough City of Etobicoke City of North York

City of York Borough of East York

Toronto After Amalgamation

Toronto/ East York District

Community Neighborhood Services Corporate Services Economic Development Culture & Tourism Finance Urban Development Services Works & Emergency Services

Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Executive Management Internal Audit Strategic/Corp. Policy COUNCIL Clerk’s Solicitor’s C.A.O. Auditor General

Large Asset Profile

Transportation: Roads and Structures Water and Waste Water

Fire Stations Parks

Buildings

Rivers and Creeks Fleets and Equipment

… Population (7th _{largest in N.A.)}

Area Households Active Vehicles 2,646,320 63,044 Hectares 1,005,250 1,159,000

City of Toronto:

Historical Synopsis

Borough of York Borough of East York

2005 Intern al Restr uctur ing: From 6 Dep artme nts to 3 F ields 1953 Creatio n of th e Corpo ration of Metro polita n Toro nto Amalg amati on of 7 Munic ipaliti es in to The C ity of Toron to 1998 Metro Toronto City of Toronto City of Scarborough City of Etobicoke City of North York

City of York Borough of East York

COUNCIL Auditor General Clerk’s Solicitor’s City Manager Executive Management Internal Audit Strategic/Corp. Policy Social/ Community Services Infrastructure & Support Services Internal Business Deputy City Manager Deputy City Manager Deputy City Manager Citizen Focused Services

Asset Management Reality

• Varying degrees of sophistication among the previous municipalities: various softwares, skills, abilities

• Varying design standards/condition levels among the assets, e.g. roads, water, parks

• Varying practices and mindsets among the previous staff

• Incompatible IT systems

• Serious financial pressures from Provincial downloading and costs of amalgamation

• Decentralized set-up to be managed centrally

• Serious turf protection

• Council manages one year at a time based on envelopes of spending

Overall

Strategy

_Reorganize:

I

Review

Rationalize

Harmonize

II

Develop

New Tools

III

Enhance

Coordination

IV

Staff

Retraining

V

Asset Management Approach:

What is Feasible, not Ideal

Organizational Initiatives

• Separate Functions & Rely on Matrix Management:

- Policy, Planning & Financing Centralized /District Reps - Delivery de-centralized

• Create separate units within various Divisions with asset management responsibilities

• Re-structure to bring all physical assets under one Deputy City Manager

• Create joint task forces to review, rationalize and harmonize decision criteria and methods of evaluation and repair

• Allow for the creation of a common platform among assets in terms of sophistication before complete integration of asset management

Asset Management Approach:

What is Feasible, not Ideal

Information Initiatives

• Harmonize data base design (Toronto Infrastructure Assets Database Standard – TIADS, formerly MIDS)

• Measure performance and benchmark

Provincial demand under the Municipal Performance Measure-ment Program -- MPMP

Asset Management Approach:

What is Feasible, not Ideal

Operational Initiatives

• Implement cost-recovery measures, e.g. fee for service, pavement degradation fees, and so on.

• Enhance communication and coordination internally and externally, e.g. TPUCC, BIA, Community Councils

• Staff re-training and re-profiling

• Re-visit the governance structure of the City, e.g. Legislative powers and power structure within Council

Asset Management Guide:

One Step at a Time

• Dozen specific steps

• Each step may have numerous tasks

• Ensure consensus through effective communication • The steps are not linear

Define the questions that your organization

wants answered in the new system and the

performance measures that are publicly and

politically acceptable

.

• Identify what questions you have failed to answer in the past due to technique or data barriers.

• Engineering indicators are often not comprehensible to the public or its representatives.

• It is very important to define what is acceptable and what the program is accountable for achieving/

accomplishing.

Build consensus on the existing system:

components and their capabilities, strengths

and weaknesses, as well as gaps.

It is very important to build a common base of knowledge among stakeholders.

Identify the overall principles to be observed

regarding the

• philosophy (e.g. principles, methods, thresholds and parameters) of asset management,

• its process (flow, authority/accountability profiles)

and

• the required tools

to answer the key questions in the new asset management framework and deliver the required documentations.

Establish the goals, means and

Divide the business into manageable portions.

For example,

• Where do you want to go with asset management

• How are you going to get it done (internally or externally) • What are the logical components in each function, e.g.

in the road function, pavements, rights of way, structures, yards/service centres, toll facilities.

Pick a winner as example and develop it first.

• Success breeds more success.

• There are many problems involved: psychological, technical, data, operational and computational.

• The first example should have the least problems in order to have the highest chance for success.

For each component, build on what you have.

• Where possible, try to salvage whatever you can. If you have a pavement management system and/or a bridge management system, try to use them and

• Focus on bridging their communication rather than re-inventing the wheel.

• A major seller for the OBMS was its compatibility with the MPMA.

For different logical frameworks, try to fix the

problem in the mix.

• Each decision model for the components produces needs that must be traded-off with what the others produce in

the way of choosing the optimal investment strategy. • A good trade-off model would be capable of adjusting

and reconciling different frameworks and relies on producing answers to common key questions.

Involve stakeholders in the development of

process, authority and accountability profiles.

8

• The last thing you want is to develop those in an “ivory tower” and then having to sell them.

• Field and IT staff need to be involved right from the beginning.

Interactive models (as opposed to black boxes)

ought to be sought.

User control over intermediate steps during the process ensures more practicality and acceptability of results at the end.

• Even for the same component, say pavements, capital activities are much better documented than maintenance activities, e.g. capital has GIS, maintenance does not. • One has to ensure the integrity of the data:

- data is reasonably precise - meaningful

- needed

- internally consistent.

10

• In the prototype, problems are simpler to solve and easier to manage than in the real world data sets.

• Problems in prototype are piecemeal activity, for real world data, continuous

• Prototypes offer better understanding of what the customer wants

11

Always develop a prototype before full

• Do not pass the models and tools to staff to wrestle with until you gave them proper training.

• Success of automated systems can be easily derailed by simple problems.

• Staff need to know where the traps are to have a pleasurable experience with the new tools.

12

Empower your staff, don’t abandon them

.

Theoretical Hand-on

• Things were thrown up in the air in almost every aspect:

Administratively, Financially, technically, Human resources, skills,

• Significant variations in conditions and treatments of the business, people, systems, assets, and so on.

• Under such circumstances, drumming up a unified perspective on how to handle things is a major

challenge.

• Incremental improvements is the most practical and least threatening.

Thank You

_{Thank You}

For your attention

Infrastructure & Support

Services

Deputy City Manager

Fareed Amin

Support Services Bill Forest, Director

Technical Services Bill Crowther, Ex. Dir

Bus. Support Services Carol Moore, Director

Waterfront Secretariat Ellaine Baxter Tahair Clean & Beautiful Secret.

Ellaine Baxter Tahair

City Planning

Ted Tyndorf, Ex. Director

Municipal Lic. & Standards Pam Coburn, Exec. Dir.

Transportation Services Gary Welsh, Gen. Mngr.

Toronto Water VAcant, Gen..Mngr. Building

Ann Borooah, Ex. Dir.

Fire Services

William Stewart, Gen. Mgr.

Solid Waste Management Vacant, Gen. Mngr

Road System Kilometers (2004)

City Wide Total

Major Arterial

Road Class Centerline Km Lane-km

125.4 3,212.2 759.3 359.5 812.6 5,569.0 300.0 294.3 6,454.9 3,150.4 1,237.4 1,829.2 13,377.2 411.0

Structures (2004)

Road Class

Bridge Type _Culverts

Con-crete Steel

Road _Rail (Underpass) Pedestrian Total

No. (m2) No. (m2_{) No. (m}2_{) No. (m}2₎

67 87 Expressway Collector Local Pedestrians Only Total Arterial 57 197 5 65 0 324 2 38 0 33 0 73 45 59 235 5 98 45 442 73,404 382,451 4,410 29,261 0 489,517 660 22,171 0 33,417 0 56,248 16,008 561,773 74,064 404,622 4,401 62,678 N/A

Trunk Watermains

Distribution Watermain Water Treatment Plants Water Pumping Stations

510 km 5,015 km 4 18 Storm Sewers Sanitary Sewers Combined Sewers

Wastewater Treatment Plants Wastewater Pumping Stations

4,305 km 4,396 km 1,302 km 4 74 ASSET QUANTITY