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CONFIDENTIAL - OCWA Internal Use Only 1

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Asset ManagementRoadmap to Sustainable Infrastructure

& Stronger Communities

Date: May 11th 2018Facilitator: OCWA

CONFIDENTIAL - OCWA Internal Use Only2

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Agenda

1. Introduction to OCWA

2. What’s in the new Asset Management Regulation (O. Reg 588/17)

3. Roadmap to meeting the new Regulation

4. Assessing your Readiness

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Introduction to OCWA• Largest water and wastewater

operator in Canada > 600 operators

• Manage more than $20 Billion in municipal infrastructure assets

• 4.5M Ontario residents served in 170 client municipalities

• Shared Services and Regional Hub and Spoke Model allows us to deliver economies of scale

• OCWA Partners with municipalities in Simcoe County (Georgian Highlands Regional Hub)

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1. What’s in the new

Asset Management

Regulation

(O.Reg 588/17)

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ASSET CONDITION

What Has Changed?

• Previous Environment = PSAB 3150 Building Together 2012• Municipalities reported on the replacement

cost and schedule of their tangible capital assets using standard expected life and straight line depreciation principles

• New Environment = Meet Regulation (AM Reg. 588/17):• Municipalities must have a Strategic

Asset Management Policy and Plan

• AMPs must follow more prescriptive standards, be more sophisticated in their components, and be based on real facts

6CONFIDENTIAL - OCWA Internal Use Only

ASSET CRITICALITY

TECHNICAL

LEVEL OF

SERVICE

Asset Management

Plan

Strategic Asset Management

Policy

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What’s in the New Regulation?

• Came into effect on January 1, 2018

• Intended to improve quality and consistency in managing municipal assets

• Sets out requirements for municipal asset management planning

• Aimed at helping municipalities better understand their infrastructure needs, improve infrastructure planning and make better investment decisions

• Phased in over six years

• Need to START NOW to meet the required timelines

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When are Key Deliverables Due?Deadline Deliverable / Milestone

By July 1, 2019 A Strategic Asset Management Policy (SAMP) with 12 overarching components which will be reviewed, and if

necessary, updated at least every 5 years.

By July 1, 2021

Municipal Asset Management Plans (AMPs) for “core municipal infrastructure

assets” (includes water, wastewater and stormwater management) that address current service levels, asset performance, condition,

age and replacement cost and the 10-year lifecycle costs and funding required to maintain those service levels.

By July 1, 2023AMPs for all “other municipal infrastructure assets” (including green infrastructure assets) that address

current service levels, asset performance, condition, age and replacement cost and the 10-year life-cycle costs and funding required to

maintain those service levels.

By July 1, 2024AMPs for ALL municipal infrastructure assets that build on the requirements set out for 2021/2023 AMPs and

address proposed levels of service, activities and funding required to meet those levels of service and any estimated funding shortfall.

Ongoing – by July 1

each year Municipal Council shall conduct an Annual Review of its AM Planning Progress.

Ongoing – starting

no later than July 1,

2029

Every AMP will be reviewed and updated at least as frequently as once every 5

years.

OngoingEvery AMP will need to be endorsed by the Executive Lead of the municipality, and

approved by resolution of the municipal council.

OngoingA municipality must post its current SAMP and AMP on a public website and provide

a copy on request. 8

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Exercise 1:

Identify the Impact

of the New

Regulation

1. What’s the status of Asset Management in your Municipality?

2. What potential challenges do you see in meeting the new Reg?

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2. Roadmap to

Meeting the

New Regulation

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Major Components of AM

11

ASSETS THAT MEET

COMMUNITY

EXPECTATIONS

(SUSTAINABLE

SERVICES AT

TARGET SERVICE

LEVELS)

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Major Components of AM

12

ASSESS

PLANIMPLEMENT

MAINTAIN

ASSETS THAT

MEET

COMMUNITY

EXPECTATIONS

(SUSTAINABLE

SERVICES AT

TARGET SERVICE

LEVELS)

Focus of the

New O.REG

588/17

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Let’s ASSESS

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1. ASSET MANAGEMENT

• AM Vision, Policy & Governance

• AM Practices, Methods,

• AM Organization & People

• AM Technologies (e.g. WMS, DSS, GIS)

• Asset Data & Information

2. ASSETS

• Asset inventory (Asset Register)

• Asset condition, performance, criticality, vulnerability (e.g. to climate change)

• Asset capacity, utilization

3. FINANCES

• Asset Value, depreciation

• Financial Plan, Capital Budgets

• Funding sources (e.g. government grants)

• Affordability

ASSESS

PLANIMPLEMENT

MAINTAIN

ASSETS THAT

MEET

COMMUNITY

EXPECTATIONS

(SUSTAINABLE

SERVICES AT

TARGET SERVICE

LEVELS)

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Let’s PLAN

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1. STRATEGIC AM POLICY (SAMP)

2. AM PLAN (informed by assessments)• Community & Customer Priorities • Levels of service / KPIs• Asset Management Strategy• Technical Levels of Service / KPIs• Growth and Level Of Service Changes• Asset life-cycle strategies• Asset Management Analysis• Optimized Asset Stewardship Decisions (O&M vs.

Rehab vs Replace)• Performance Reporting (State of AM, Assets)

3. FINANCIAL PLAN/RATE STUDIES

4. CAPITAL PLAN/CAPITAL PROGRAM

5. CAPITAL BUDGET

ASSESS

PLANIMPLEMENT

MAINTAIN

ASSETS THAT

MEET

COMMUNITY

EXPECTATIONS

(SUSTAINABLE

SERVICES AT

TARGET SERVICE

LEVELS)

YOU WILL NEED TO DEVELOP AND MAINTAIN:

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Let’s IMPLEMENT

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1. CAPITAL PROGRAM/PROJECTS • Project business case (e.g. capital costs, O&M

life-cycle costs)• Projects, major milestones • Delivery methods (e.g. DBB, AFP)• Environmental impact / Feasibility Studies

2. CAPITAL BUDGET• Money required to deliver capital program• Money required to support full life-cycle of

the assets to be delivered• Funding sources (e.g. Grants, Loans,

Development, Rates, Taxes)

ASSESS

PLANIMPLEMENT

MAINTAIN

ASSETS THAT

MEET

COMMUNITY

EXPECTATIONS

(SUSTAINABLE

SERVICES AT

TARGET SERVICE

LEVELS)

YOU WILL NEED TO IMPLEMENT & MANAGE:

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Let’s MAINTAIN

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1. OPERATE ASSETS RESPONSIBLY2. MAINTAIN ASSETS to a set standard

(reactive, preventive, predictive)3. APPLY APPROPRIATE TECHNOLOGIES (e.g.

Work Management System, Supervisory Control and Data Acquisition System)

4. MAINTAIN ASSET DATA5. RECOMMEND ASSET IMPROVEMENTS to

maintain technical service levels … to support customer service levels

ASSESS

PLANIMPLEMENT

MAINTAIN

ASSETS THAT

MEET

COMMUNITY

EXPECTATIONS

(SUSTAINABLE

SERVICES AT

TARGET SERVICE

LEVELS)

YOU WILL NEED TO (OPERATE &) MAINTAIN:

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AM Landscape & Roadmap2007 - 2017 2018 2019 2020 2021 2022

PSAB

(Value, Age)

“Financial”

AM Plans

Key Milestone / Completion Dates:

• July 1, 2019 - Strategic AM Policy

• July 1, 2021 – Asset Management Plan(s) for CORE Assets –

current service levels

• July 1, 2023 – Asset Management Plan(s) for ALL Assets –

current service levels

• July 1, 2024 AMPs for ALL Assets – proposed service levels

ASSESS STATE OF

AM READINESS

DEVELOP STRATEGIC

AM POLICY

DEVELOP CUSTOMER &

TECH/AM LEVEL OF SERVICE

ASSESS STATE OF ASSETS

• CRITICALITY

• CONDITION

• VULNERABILITY (E.G. TO CLIMATE

CHANGE, FLOODING)

• PERFORMANCE

(VS AM LEVEL OF SERVICE)

• ASSET & PROCESS CAPACITY &

UTILIZATION

COLLECT ASSET DATA

BUILD ASSET INVENTORY/REGISTRY (E.G. LIFE, CRITICALITY, CONDITION)

DEVELOP (FACT-BASED) ASSET MANAGEMENT PLANS

IMPLEMENT CAPITAL PROGRAM / OPTIMIZE PROCESSES/ENERGY/RESOURCE UTILIZATION

DEVELOP CAPITAL PLANS / FINANCIAL PLANS

INPUTS

OPERATE AND MAINTAIN ASSETS

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3. Assessing your

Readiness

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Exercise 2:

Review & Apply

FCM Readiness

Scale

• Review FCM Readiness Scale provided at your table and apply to your municipality.

There are 5 levels of AM competency for the 5 following areas: (1) Policy & Governance, (2) People & Leadership, (3) Data and Information, (4) Planning & Decision Making, (5) Contribution to AM Practice. Rate your municipality's readiness in each area.

• Discuss AM Opportunities at each table:

1. Identify where your Municipality has the biggest opportunity to improve, and where you have been most successful to date

2. Discuss and identify priority areas for the municipalities at your table to start to address

3. Report a summary of your table’s discussion back to the full break-out group

• Summarize

https://fcm.ca/Documents/tools/MAMP/MAMP_Readiness_Scale_EN.pdf

Link to FCM AM Readiness Scale

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4. Summary

& Questions

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Thank You !!

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