Joel Sanchez, P. EngCity of Lethbridge - Corporate Asset Manager

The City of Lethbridge

Taking Asset Management to the Next Level

Agenda

• City of Lethbridge Background

• Asset Management

• AM Methodology, Guidelines and Frameworks

• Current Status

• Systems Used

• Next Steps

•Questions?

City of Lethbridge

Population: 96,828Over $2 Billion in Capital Assets:

Infrastructure/Engineering and Public Works• Roads• Water Mains• Sewers• Bridges• Streetlights / Traffic Signals• Storm Water Management Ponds• Solid Waste• Fleet (vehicles and equipment)• Parks

Community Services• Municipal Buildings

• Community Centre• Library• Fire Halls

• Recreation Centers• Transit

Strategic and Corporate Services• Information Technology

• Computers• Servers

City of Lethbridge

What is Asset Management?

The systematic and coordinated activities and practices of an organization tooptimally and sustainably deliver on its objectives through the cost-effective lifecyclemanagement of their assets

IIMM - 2011

Defining Asset Management

The Objective of Asset Management is to meet a required level of service, in the mostcost effective manner, through the management of assets for present and futurecustomers.

• It is not a computer system

• It is not an accounting system

What Asset Management is Not:

• It is not an automated process

• It is not PSAB 3150 (TCA)

• What is the current state of my

assets:

What do I own

What condition is it in?

What is the remaining useful life?

• What do we need to do ?

• When do we need to do it?

Basic steps for Asset Management Implementation:

• How much will it cost?

• How we will fund it?

• What is my required Levels of Service

• Which of my assets are critical for sustained performance

We all know these facts:

• 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

Why do we need Asset Management?

In Spring 2016 Canada’s Second Report Card on Municipal Infrastructure wasreleased and the amount required nationwide to bring all municipalinfrastructure into a good state of repair was estimated at $388 Billion.

What is the Industry or Municipality Role?

Most industries and municipalities operate as Facility Managers not Asset Managers!

FM = Find the faults and fix as many as we can with the budget available.

AM = debate and agree the service level and then deliver it for the least possible cost.

The Steps

• Update Asset Inventory

• Extract “Knowledge Management” from staff

• Criticality Assessment

• Condition Assessment

• Maintenance Evaluation

• Asset Replacement Evaluation

• Financial Planning

• Staff Training & System Integration

• Public Education

The Goals

• Extension of Asset’s Life

• Optimal Maintenance Program

• Optimal CIP

• Reliable, Planned Expenditures

• Maximize Organization’s Knowledge of its Assets

• Full Knowledge of Financial Impact of Expenditures

• Risk Reduction

Asset Management what to expect:

Asset Management what to expect:

Lack of Alignment Common Vision

Silos

In 2005, the City embarked on a new initiative to design, develop and implement aCommunity Asset Management Program (“CAMP”) to achieve sustainable asset management.A designated team committed to this program was created and continues to support thecorporation in achieving this goal.

The focus of the CAMP team is to work with various levels within each of the business units to provide the processes and tools required to make consistent, effective and informed decisions which will ultimately lead to managing the corporate assets in the most cost effective manner.

Baseline Assessment Methodology – Lethbridge Experience…

Evolution of Asset Management in Lethbridge

• 2005 – AM identified as a Need: CAMP department created

• 2006 – AM started implementation in 3 pilot areas, Facilities, Water Treatment Plant and Waste Water Treatment Plant.

• 2007 – CMMS implementation – JD Edwards

• 2008 – Asset Registries created for Pilot areas, risk assessment, lifecycle analysis.

• 2009 – First Baseline Assessment

• 2012 – Second Baseline Assessment

• 2014 – Implementation of Cityworks – Mobile deployment – AVL System

• 2015 – Implementation of Asset Planner – Lifecycle tool

• 2016 – Asset Management implemented in Parks, Solid Waste, Transportation, Water, Wastewater, Facilities.

Asset Management Team – CAMP

City Manager

Director of Infrastructure Services

Corporate Asset Manager

Asset Management Coordinator

Asset Management Planner Asset Management Business Analyst

Transportation Parks Water/Wastewater Solid Waste Fleet

Facility Services Transit Urban Construction

Asset Management Team – CAMP

Teams Members

CAMP Business Unit 4

Senior Management Team 8

CAMP Network Team 20+

City of Lethbridge-CAMP Internal

Customers150+

Basic AM Process explained.

• Start documenting business process, “As Is” and generate “To Be” based on best practices

• Create Asset Registries, what do we own, attributes, create GIS records.

• Populate data and fields that will be used, replacement cost, condition, useful life.

• Create SR and WO templates and perform user training.

• Establish indicators and performance measures to monitor progress.

• Support users once they start using the tools and systems to maintain a corporate approach.

Basic AM Process explained.

Operate& Maintain

There are four key elements that are considered at all times to achieve the goal of AssetManagement and ensure it is sustainable.

• Strategy

• Assets

• People

• Processes

Baseline Assessment Methodology – Lethbridge Experience…

Baseline Assessment Methodology (PASS 55)

Strategy

•Overall Strategic Planning•Asset & Customer LOS•Corporate LOS•People Skills•Technology Planning•Business Process Mapping•Future trends•Asset Management Plan•Legal & Regulatory

Assets

• Asset Registry• Asset Knowledge• Data Maintenance• Business Applications• Technology System

Integration• Asset Investment Plans• Risk Framework

People Effectiveness

• Asset Management Leadership

• Roles & Responsibility• Learning and Development• Communication and

Information Sharing• Continuous Improvement• Knowledge retention and

succession planning

Business Processes

• Capital Projects• Operations Management• Maintenance Management• Materials Management• Financial• Asset Process Flow• Asset Management QA

Item # Asset Management Focus Area Corporate Score

Strategy

Q1 Overall Strategic Planning 3.5Q2 Asset & Customer Levels of Service 3.5Q3 Corporate LOS & Targets 3.5Q4 People Skills & Competencies Master Planning 3.5Q5 Technology Assets Planning 3.5Q6 Business Process Mapping 3.5Q7 Future trends (Impact of growth) 3.5Q8 Asset Management Plan and Master Plans 2.5Q9 Legal, Regulatory & Statutory Requirements 4.0

Assets

Q10 Asset Registry 4.0Q11 Asset knowledge 4.0Q12 Data Maintenance 4.0Q13 Business applications 4.0Q14 Technology Systems Integration 4.0Q15 Asset Investment Plans (AIP) 3.5Q16 Risk Framework - BU level and Asset level 2.5

People Effectiveness

Q17 Asset Management Leadership & Governance 4.0Q18 Roles & Responsibility 3.5Q19 Learning and Development 3.5Q20 Communication and Information sharing 3.5Q21 Continuous improvement culture (sustainability) 3.5Q22 Knowledge retention & Succession planning 3.5

Business Processes

Q23 Capital projects - Planning, design & construction 3.5Q24 Operations Management 3.5Q25 Maintenance Management 3.5Q26 Materials Management 3.5Q27 Financial 4.0Q28 Asset Process Flow 3.5Q29 Asset Management Quality Assurance 3.5

Corporate Average Score 3.6

Baseline Assessment Methodology

Awareness Establishing Competence Enterprising Excellence

Maturity Level 1

Maturity Level 2

Maturity Level 3

Maturity Level 4

Maturity Level 5

Learning Applying Embedding Optimizing Continuous

Improvement

1/1/2007 12/31/2007

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Asset Management Maturity Scale

2016 20182006 2012

ParkingCondition: Fair

Roads and Structures

Condition: Fair to Good

Parks Condition: Good

WaterCondition: Fair

Stormwater

Condition: Fair to Good

Corporate FacilitiesCondition: Fair to GodSolid Waste

Condition: Very Good to Good

FireCondition: Good

RecreationCondition: Fair to Good

Culture FacilitiesCondition: Fair to Good

Urban ForestryCondition: Fair to Good

Wastewater (Sanitary)

Condition: Fair to Good

FleetCondition: Good

Traffic Signals

Condition: Fair to Good

Current Condition

Systems used…

JDE Cityworks

Asset Planner

Tempest

GIS SOMS

Long range planningLife Cycle CostCondition Assessment

Parcel InformationAssessment InfoLocal ImprovementTaxation

Existing linear assetsGIS dataParks, Transportation,Water inventory

Meter shop SO systemMeter replacement

Scada(Future) Road

Matrix

Asset RegistryFinancial DataAddress BookGeneral LedgerFAC, Fleet, WWTPWTP

Asset RegistryCondition AssessmentWater Utilities TransportationParksUrban ConstructionWaste & Recycle

Bridges

2-Way Automated Interface

Runtime hoursFlow meter readingAlarms

PQI dataRoad ConditionLong range plan

Condition gradingLong range plan

People Soft

PayrollTime & Labor

Systems used…

Cityworks

• Mobile Access

• All Linear Assets

• Citizens Service Request

• Work Orders

• Inspections

• More than 100 users

• Access to drawings and documents at all time

• Track assets cost for lifecycle and decision making

• Track Condition

• Preventive Maintenance

Systems used…

Asset Planner

• Mobile Access

• Lifecycle Tool

• Energy Consumption and Carbon Footprint

• Mobile Audits of Buildings

• Interface with GIS ( In progress)

• Long Range Planning ( 30 years and more)

• Currently Facility Services but in the process of implement corporate wide

Systems used…

Automatic Vehicle Location (AVL)

Roadmatrix GIS JD Edwards

Asset Management program results

The following achievements have been completed up to date:

• Asset Registries completed for : Facility Services, Water Treatment Plant, Wastewater Treatment Plant, Fleet, Transit, Waste & Recycle and Transportation, all Water Utility, Parks, etc .

• Migration of asset registries from excel spreadsheets to a GIS geodatabase for Transportation, Waste & Recycle and Parks.

• Integration of Financial and Asset Management systems.

• Deployment of mobile solutions for asset work order and condition assessment.

• Performance measures in place to track asset maintainability, cost of ownership, lifecycle events, all this to support the process of making informed decisions looking at the big picture.

• Upgrade/replacement of obsolete systems with integration between different areas, which resulted in the elimination of multiple data entry and rework.

• Improved communication between different departments through the use of electronics forms and electronic submission, reducing paper usage.

Take-aways

• Don’t try to make it perfect the first time

• Divide and Conquer

• Keep it simple

• Clearly define “What’s in it for me”

• Process before Software

• Communicate, Communicate, Communicate and more important LISTEN

• A mix of Art and Science

Asset Management is a Journey

Questions?

Joel Sanchez, P.Eng.Corporate Asset Manager, City of Lethbridge

joel.sanchez@lethbridge.ca(403) 320-3037