The Asset Management The Asset Management Experience inExperience in

the City of Saskatoonthe City of Saskatoon

Jan-Mark Gustafson

Dale Clancy

• 300 km (186 mi.)

North of the U.S. Border (Montana).

• Population 210,000.

• Temperature Range -40ºF to 95ºF.

• Frost penetration can be as much as 9 feet deep.

• Economic base includes agriculture, oil and gas, potash, uranium, meat processing, a university, and an ag-biotech industry.

SaskatoonSaskatoonCanadaCanada

UtilitiesUtilities

• Water utility:– Clarification, filtration, softening, chloramines– Moving to UV.– 613 miles of water mains.– Long-term plans, fully funded.

• Sanitary utility:– 530 miles of mains; 37% condition assessed.– BNR plant: high quality effluent.– Medium-term plans, fully funded.

UtilitiesUtilities

• Storm Water Management– Mains, ponds, and privately held concrete

receptacles also known as people’s basements.– Recent formation of utility, under-funded.– Rehabilitation driven by capacity demands.

• Separate sanitary and storm sewer systems.

• Lowest utility rates among medium to large cities in Canada.

History of Infrastructure RenewalHistory of Infrastructure Renewal in the City of Saskatoon in the City of Saskatoon

• 1980’s – Water Main Replacement.–Roads and Bridge Structures.–Sewer Main Rehabilitation.

• 2000’s – Storm Water Management.–Sidewalk Rehabilitation.

• Asset Management – Late 1980s–University of Saskatchewan & DFI (Stanford)–RTA – New South Wales, Australia–Economic decision analysis: state transition,

survival analysis and Monte Carlo simulation.

Asset Preservation GroupAsset Preservation Group

• Minimum acceptable levels of service modeled as constraints:– Impact on customers.– Maximum allowable risk.– Environmental impact.

• Easier to model, easier to deal with in policy.

To sustain the public works infrastructures at minimum long-term cost, subject to

minimum acceptable levels of service.

Policy Governance Policy Governance ®®

• Outcomes versus Costs– Safe, clean, good tasting water.– Reliable supply– Sustainable.– Affordable.– Minimum long-term costs.

• Structure reports around these issues.

PolicyGovernance.com

Great Asset Management Requires Great Asset Management Requires People LeadershipPeople Leadership

Manage things, Lead people

Be Reasonable!Do It My Way

Embracing VarianceEmbracing Variance

0

10

20

30

40

50

60

70

80

90

10019

56

1966

1976

1986

1996

2006

2016

2026

2036

2046

2056

2066

2076

2086

2096

2106

2116

2126

2136

2146

Year

No

. Seg

men

ts

Construction

Replacement

0

200

400

600

800

1000

1200

1400

1600

1800

200019

56

1966

1976

1986

1996

2006

2016

2026

2036

2046

2056

2066

2076

2086

2096

2106

2116

2126

2136

2146

Year

No

. S

egm

ents

The Replacement ProfileThe Replacement Profile

Backlog

Eliminate Backlog

Older Pipe Not Necessarily BadOlder Pipe Not Necessarily Bad

0

10

20

30

40

50

60

70

80

90

100

1911

1921

1931

1941

1951

1961

1971

1981

1991

2001

2011

2021

2031

2041

2051

2061

2071

2081

2091

2101

Year

No

. Seg

men

ts

Construction

Replacement

0

200

400

600

800

1000

1200

1400

1600

1800

200019

11

1921

1931

1941

1951

1961

1971

1981

1991

2001

2011

2021

2031

2041

2051

2061

2071

2081

2091

2101

Year

Cu

mu

lati

ve R

epla

cem

ents

Replacement Profile – Older PipeReplacement Profile – Older Pipe

NPV for Potential HistoryNPV for Potential History

Discount Rate = 6%

RepairsReplacement

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,0001

999

200

4

200

9

201

4

201

9

202

4

202

9

203

4

Year

Net

Pre

sen

t V

alu

e

Total

Our ExperienceOur Experience

• G.I.S. is a must. Mobile G.I.S. as well?

• Better business decisions (urgent).

• Better science (important, but not urgent).

• Data valuable only if:– It changes a decision, measures an outcome, ranks

a priority, or keeps you out of court.

• Analysis is required; need people to do it.

• Perfection not required.

• Planning is great; action is paramount.