How to Implement
Asset Management
Without Breaking the Bank
Pat Miller, Director, Utility Ser vices, Sun Peaks Utilities Co., Ltd. &
Wade Turner, Community I nfrastructure Consultant, Urban Systems Ltd. Additional Contributors: R ick Collins & Peter Coxon
The Reality is that……
◦ Infrastructure is vital to our communities
◦ There is infrastructure nearing the end of its useful life
◦ You are faced with many difficult decisions regarding when and how to maintain, repair, improve and expand facilities/services
◦ There is not enough money to deal with the issues
Why do Asset Management?
◦ We have infrastructure that is deteriorating ◦ We have limited funds
◦ A current Asset Management Plan is required for infrastructure grant applications
Why do Asset Management?
Building Canada Fund – Small Communities Fund
• For the asset class that you are applying for:
• Do you have an asset inventory/registry – complete? Up to date?
• Condition assessment?
• An asset management plan? If yes, is the plan linked to a long
term financial plan?
• Gas Tax – Strategic Priorities Fund
• Explain how this project fits into or is supported by an asset management planning process.
Key Questions
◦ What we own? ◦ What is it worth? ◦ Where is it?
◦ What is its condition?
◦ What renewal is needed now? ◦ What do we do to get it to last
longer?
◦ How much will it cost and how will it be funded?
Asset Management at Sun Peaks
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Developing the Asset Inventory
◦ Location (GIS) ◦ Attributes ◦ Installation date ◦ Historic cost ◦ Replacement cost◦ Data management systems
Water System
Sewer System
◦ 15.4 km of watermain ◦ 3 water treatment plants ◦ 98 Fire Hydrants
◦ 19.1 km of sanitary main ◦ 1 sewage treatment plant ◦ 1 composting facility
Asset Management – Look to Others
City of Nanaimo’s Goals
1. To provide levels of service that meet the needs of the community.
2. To provide an Asset Management process that is effective, achievable and efficient.
3. To enable the collection, coordination, sharing and communication of information.
4. To develop operating, maintenance and capital financial plans that support the defined level of service.
5. To manage the assets in a sustainable manner.
Asset Value
◦
What’s the Value?
◦ Installed costs or replacement costs?
Valuing Assets at Sun Peaks
Water Utility
◦
How do we use the
value of the Utility’s
Assets to build
future reserves?
◦
How we do it using
Asset Management?
Asset Management at Sun Peaks
Water Facilities Summary (estimates only) Asset InstalledYear
or Renewed Replacement Value Expected Remaining Life All System Infrastructure Deficit (Backlog) Average Annual Life Cycle Investment Water Source -Wells 1999 $ 3,490,550 34% $ 818,550 $ 181,892 Water Treatment Plants 1992 $ 1,618,000 58% $ 130,000 $ 58,617 Reservoirs 1978 $ 4,688,500 59% $ 5,000 $ 99,520 Booster Stations 2004 $ 842,000 57% $ 50,000 $ 29,643 PRVs 2004 $ 210,000 73% $ - $ 6,400 Distribution –
Mains, Valves, Etc. 1978-2016 $ 7,823,873 69% $ 1,721,252 $ 182,896
Asset Management at Sun Peaks
Wells & Water Treatment Plants 27% Reservoirs 25% Water Mains, Services & Valves 35% Booster Stations & PRVs 6% Hydrants & Standpipes 6%
Water Meters & Sampling
Stations 1%
REPLACEMENT VALUE
Investment Plan – Results
Asset Category Replacement Value
Gas System $2.4 million
Sanitary System $24.1 million
Storm System $7.3 million
Water System $22.4 million
Total $56.2 million
ENGINEERING/
Next Steps for Sun Peaks Utilities
◦ Incorporate condition
◦ Plan for and replace failing infrastructure ◦ Incorporate the rest of our assets
◦ Communicate current state of Assets ◦ Revisit our financial planning
Opportunities for Small Communities
◦ Getting information on a map increases understanding ◦ Centralize and share the information
◦ Tracking asset condition helps refine program ◦ Scan, file and back up important historic records ◦ Refine and build information over time
Summary of Recommendations
◦ Get started
◦ Start with information you have and is readily available tools
◦ Create an inventory of what you own
◦ Take stock of immediate needs and risk of deferring the renewal
◦ Determine the replacement cost in current dollars ◦ Assess current infrastructure spending
Yes, you can implement Asset
Management without breaking the bank
Pat Miller
Director, Utility Services
Sun Peaks Utilities Co., Ltd.
Wade Turner
Community Infrastructure Consultant
Urban Systems Ltd.
Thank you
For more information, visit us at www.sunpeaksresort.com Utility Tours are free!
Additional Resources
◦ Courses ◦ Webinars ◦ Seminars ◦ Vendors ◦ Engineering Consultants◦ Find out what others are doing ◦ UBCM Asset Management website ◦ Asset Management BC
Asset Management for Sustainable Service Delivery, A BC Framework
