From ACRS to E-ACRS A Journey Towards Sustainable Infrastructure in - - PowerPoint PPT Presentation

2020 AFN National Housing and Infrastructure Forum and Tradeshow Toronto, Ontario March 11, 2020 Danny Higashitani, P.Eng., Indigenous Services Canada – BC Region

From ACRS to E-ACRS – A Journey Towards Sustainable Infrastructure in BC First Nation Communities

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Pr Presentation Objective ves

• What is the Asset Condition Reporting

System (ACRS) Program?

• What is the Extended Asset Condition

Reporting System (E-ACRS)?

• How can E-ACRS be used as a tool for

Asset Management?

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AC ACRS S Regions

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As Asset Condition Reporting System

• All on-reserve O&M funded capital assets are

inspected on a three year cycle.

• The inspection collects data and reports on the
• peration and maintenance of assets.
• Physical/operational condition assessments are

performed and priority projects with a focus on health and safety are identified.

• ACRS Inspections are carried out by qualified

professionals only.

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AC ACRS Group 1 Projects

• Projects that are minor maintenance activities

that are not deemed to be resource draining.

• Though they sometimes seem to be benign or

inconsequential, continuing inattention to them can lead to small malfunctions, and at worst, to bigger system malfunctions that could eventually jeopardize the health and safety of the community.

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AC ACRS Group 2 Projects

• Major repair of components or elements that

would not be covered under the normal ISC funding subsidy.

• Replacement and/or reconstruction of major

components of an asset that have reached the end of their service lives or have deteriorated to the state beyond normal repair.

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AC ACRS Group 3 Projects

• Study projects to provide an in-depth review. The

review will generate technical solutions to problems that cannot be readily assessed in normal ACRS inspections.

• Asset replacement/reconstruction project to replace a

complete system due to its’ poor operating condition with an estimated remaining life of 5 years or less.

• Upgrade projects that may be required due to total

ineffectiveness of the existing system to deliver the required service level.

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ASSET CONDITION REPORTING SYSTEM PHOTOS

Buildings Roads Bridges Water Wastewater Other Region Name Reserve No. Reserve Name BC 09999 ABC Reserve First Nation No. First Nation Name Location 999 ABC First Nation Salish Road Asset Code Facility Code Asset No.

• Ext. No.

Asset Name Inspected By B1F 7152 4030 01 Community Well John Doe Date Inspected MM/DD/YYYY Year of Construction Remaining Life (Years) Quality (unit) (*1) General Condition Rating (0-10) (*1) General Condition Rating 1-3 4-6 7-9 10 06 / 25 / 2008 1984 30 1 ea 5 Closed Poor Fair Good New Photo No. 09999403001BCREG1001.jpeg Description: Raise well casing to 30cm above ground. Fencing around pump house and well is required. Photo No. 09999403001BCREG1002.jpeg Description: Piping inside pumphouse

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Comments: Well pump was replaced in 2005. Existing project 001 to erect fence around well head is cancelled and re- identified as a new project with corrected coding and updated costs.

Component Code No. Project Title Project Description Frequency *2 – Group *3 – Category *4 – Type *5 – Urgency Amount ($) Existing Project No. *6 – Status Existing Projects in INAC Database Still Outstanding (status 0-incomplete only) B1 3.11 Clear vegetation Clear vegetation from around the pumphouse 0.5 1 1 4 $200 002 New Projects Identified This ACRS Inspection B1 3.1 Register well with MOE Well ID tag required 1 1 5 $100 B1 3.11 Install fence Construct 13m x 10m chainlink fence around pumphouse 2 3 1 $5,000 B1 3.4 Raise well head Raise well head to the required height 2 2 1 $2,000 B1 3.11 Conduct disinfection study Water source is an unconfined aquifer and a disinfection study is recommended 3 4 1 $10,000 Date Inspected MM/DD/YYYY Year of Construction Remaining Life (Years) Quality (unit) (*1) General Condition Rating (0-10) (*1) General Condition Rating 1-3 4-6 7-9 10 06 / 25 / 2008 1984 30 1 ea 5 Closed Poor Fair Good New Asset Code Facility Code Asset No.

• Ext. No.

Asset Name Inspected By B1F 7152 4030 01 Community Well John Doe First Nation No. First Nation Name Location 999 ABC First Nation Salish Road Region Name Reserve No. Reserve Name BC 09999 ABC Reserve Buildings Roads Bridges Water Wastewater Other

ASSET CONDITION REPORTING SYSTEM NEEDS IDENTIFICATION

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The The Origi gins ns of E-AC ACRS

• Tangible Capital Asset (TCA) Reporting

Requirement for Local Governments starting in January 2009 (PSAB 3150)

• The State of Asset Management in BC

Region First Nation Communities Study commissioned in Fall 2009

• Shifting Attitudes of First Nation

Communities in BC Region

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Wh What is PSAB 3150?

• A new accounting standard for reporting
• n capital assets (known as tangible

capital assets – TCAs) ▫ Requires annual reporting by all First Nations and Municipal Governments across Canada

• Came into effect on January 1, 2009

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Ta Tangi ngibl ble Ca Capital Asset (Te Termino nology gy)

• An Asset, also known as a tangible capital

asset, is a physical component of a system that has value, enables services to be provided, and has an economic life of greater that 12 months.

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Re Replacement nt Cos Cost vs. Histor

• rical Cos

Cost

• Ma

Management Accounting – To manage assets effectively, a utility must know how much it will cost to replace their assets (forward looking)

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Finan ancial al Ac Accounting – TCA accounting (PSAB 3150) requires communities to record how much it cost to originally build the asset (backward looking)

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Re Replacement nt Cos Cost

• All costs necessary for the replacement of an

asset under typical conditions

• Including all materials, labour, engineering fees,

mobilization/demobilization costs, and administration costs

• At a high level, generic unit rates can be applied
• Better accuracy required for near horizon assets

(i.e. to be replaced within the next few years)

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35-Year Asset Replacement Chart Detail

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Hi Historical Cost

Required For Financial Accounting Purposes

• The most objective and measurable amount
• If actual historical cost information is not known,

an estimation can be acceptable

• Can use Consumer Price Index (CPI) to estimate

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Ke Key Termi minology

• GIS a Geographic

Information System which enables visualization, analysis, and interpretation of spatially referenced data.

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E-AC ACRS S Map for Bu Building As Assets

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Fi Five Core Cap apac acities for As Asset Man anag agement

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St Stat ate of

• f As

Asset Man anage ageme ment in BC BC

First Nations

• Uncertainty on where to begin on asset management
• Difficult for long-term strategies to compete with short-term

priorities

• Training needed to develop and implement an asset

management program

• Financial plans are generally short-term and do not reflect true

long-term requirements

• Required level of financing to sustain assets has not been

quantified

• Incentives and dedicated funding needed for asset

management planning

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Aw Awar areness an and Priorities

Key Capacity Gaps

• Incomplete understanding of asset management

Priority Actions

• Develop communications material on asset

management for elected representatives and management

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Li Little Shuswap La Lake Indian Band AM Video

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Or Organ anizat ational al System ems

Key Capacity Gaps

• Lack of organizational systems to support asset

management (particularly lack of coordination between public works and other departments)

• Uncertainty on where to begin on asset management

Priority Actions

• Deliver capacity building programs including workshops
• n asset management
• Develop templates for AMPs
• Develop tools for coordinating AM activities

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Su Sustai ainab able Infras astructure Wor

• rks

kshop

• ps

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People le

Key Capacity Gaps

• Lack of broad asset management skills and knowledge

Priority Actions

• Develop asset management training program for those

responsible for those responsible for administration, finances, and capital planning

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In Information

Key Capacity Gaps

• Lack of guidance on how to link the Capital Asset

Inventory System (CAIS) and the Asset Condition Reporting System (ACRS) to a broader asset management strategy

Priority Actions

• Continue with CAIS and ACRS, but provide guidance on

how to use this data to support an asset management strategy

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Fi Finan ancing

Key Capacity Gaps

• Lack of dedicated funding for asset management planning
• Lack of data on actual O&M costs

Priority Actions

• Establish dedicated funding for asset management

planning

• Identify actual O&M costs and provide funding for these

costs

• Provide financial incentives for asset management

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Re Remov

• ving

ng the he Guess Wor

• rk

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Sh Shift fting g Attitud udes

• Community infrastructure guardianship
• Focus on sustainable future, not short-term growth
• Future revenues must be matched against Future costs
• Maintenance of current core assets must take precedence
• ver building new assets
• Cost of operating and maintaining new assets must be

considered in the cost benefit analysis

• Requires greater community understanding and a holistic

approach to asset management

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E-ACRS Executive Summary – Asset Inventory

Example:

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E-ACRS Executive Summary – Asset Condition

0% 0% 0% 0% 0% 0% 100% 0% 2% 67% 100% 33% 60% 50% 100% 0% 0% 57% 28% 0% 40% 40% 38% 0% 0% 100% 30% 6% 0% 27% 0% 13% 0% 0% 0% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

W a t e r W a s t e w a t e r R

• a

d s / B r i d g e s E d u c a t i

• n

C

• m

m u n i t y B u i l d i n g s F i r e P r

• t

e c t i

• n

S

• l

i d W a s t e D y k e s O v e r a l l

Summary of Asset Condition

New Good Fair Poor

The infrastructure is fit for the

• future. The infrastructure is

generally in very good condition, typically new or recently rehabilitated. The infrastructure is adequate for now. Some components of the infrastructure show general signs of deterioration that require attention. The infrastructure requires attention and is showing general signs of deterioration The infrastructure is at risk and mostly below standard with many components approaching the end of their service life. The infrastructure is at risk and mostly below standard with many components approaching the end of their service life.

Example:

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E-ACRS Executive Summary – Asset Replacement Value

Total asset replacement value: $27,107,098

New $168,000 1% Good $21,130,398 78% Fair $4,388,500 16% Poor $1,420,200 5%

Asset Replacement Value by Asset Condition

Example:

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E-ACRS Executive Summary – Health & Safety Projects

Group 1 Projects that are regular maintenance activities and are normally covered by a First Nation’s annual O&M budget (e.g., testing of life safety systems and fire protection systems; indoor painting of individual rooms; replacement of broken plumbing fixtures such as faucets, sinks and toilets; and the replacement of light bulbs and air filters). Group 2 Projects involve major repairs or the replacement of a major component of an asset when that component has deteriorated to a state beyond normal repair (e.g., replacement of floor coverings; repairs to the building envelope; construction of access ramps; replacement of furnace/boiler; repairs to stairs/railings; and exterior painting). Group 3 Projects that require engineering input to update or upgrade an existing system, to resolve certain technical problems, or to replace an entire asset at the end of its lifecycle. Group 3 projects should be discussed with your Capital Management Officer to consider including the projects in your First Nations Infrastructure Investment Plan (FNIIP).

Example:

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E-ACRS Executive Summary – 35-Year Capital Asset Replacement Chart

Total 35-year capital replacement cost: $22,641,018 Annualized capital replacement cost: $646,886

Example:

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Thank Y You