Infrastructure is the Corner Stone of our Quality of Life
Emerging Infrastructure Management Business Conditions Rising Community Expectations Rising Environmental Expectations Increasing Awareness & Complexity of Issues Diminishing Resources Aging Infrastructure (Lower Service Levels) Rising Risk Management & External Reporting Expectations (PSAB 3150 & Safe Drinking Water Act (Ontario)) A growing awareness that strategic collaboration between all levels of government and the private sector is better than adversarial competition.
A Historic Shift …….. Transition from Building & Operating to Strategic Management of Infrastructure Extending Life Optimized Decision Making Sustaining Levels of Service Business Risk Exposure “ASSET MANAGEMENT”
What is Asset Management ? “way of thinking” Systematic integration of sustainable management practices into a paradigm or “way of thinking” complete life cycle Primarily focused on the complete life cycle of the asset in order to effectively manage corporate risk, service delivery levels and cost of service
Principal Relationship RISK LOS COST
Keys for Optimized Decisions 1.Manage risk and LOS in the most cost effective way 2.More choices = optimize decisions (fill the tool box) 3.Differ cost of replacement, through the extension of Service Life 4.Manage Back Log (infrastructure deficit) 5.Ensure the best total life cycle decision 6.Reduces Social & Environmental impacts
Why the need for research? We need to understand the technologies in order to utilize them in the most effective way. So what are some of the things we need to know: How long will it last? What are the engineering properties? What could cause it to fail? How should it be designed (Design Standards)? How should it be maintained
Governments Role Communicate the challenges and the need to find more ways to address the challenges Provide guidance and direction on research initiatives Ask the questions which you need to know the answers to. Provide incentives to find new ways to address infrastructure challenges.
Financial: Replacement Cost: $700,000 CIPP Lining Cost: $68,000 Savings: $637,000 Impact of Savings: CIPP ROI is 5yrs (8% interest) Life Cycle Cost (4% discount) EAC 2.5yr Life = $28,565 EAC 100yr Life = $28,565 Life Cycle Costs (Capital Investment)