Developing a Portwide Asset Management Program

American Association of Port AuthoritiesMarine Terminal Management Training Program

September 17, 2015

Colin Chung, PhD President, Kayuga Solution

Asset Management Program

Asset Management Program

• AM processes and practices• Asset data• Information systems• Organizational leadership & support• Staff understanding and acceptance

Creating Balance!

Goal of Asset Management

RiskLevel of Service

CustomerExpectations

Cost of Service

Asset Management Program Objectives

To find out:

• Catch Up ($) Restoration

• Keep Up ($) Preservation

• Moving Forward ($)

How?

• Document the assets owned and managed

• Understand the current state of assets

• Establish appropriate levels of service

• Prioritize the need by risk

• Understand what budget and resources are required to catch up, keep up,and move forward

• Calculate cost of service

• Communicate the infrastructure problem

Portwide Asset Management Program

Port is a small city!1. Roadway assets

• Pavement, sidewalks, curbs and gutter, lights, signage, etc.

2. Building assets• Warehouses, office buildings, comfort stations

3. Underwater assets• Wharfs, moorings, sheet piles, floating dock, etc.

4. Park assets• Playgrounds, benches, picnic tables, gazebos, etc.

5. Water and wastewater assets• Pipes, pumps, motors, MCCs, gensets, valves, hydrants, manholes, etc.

6. Drainage assets• Pipes, channels, structures, BMPs

7. Fleet

8. Urban Forestry

9. And more…

Asset Management Program Methodology

• Inventory and assess condition

• Project preservation and restoration costs and schedules

• Assess criticality and estimated asset replacement costs

• Determine the desired service levels

• Understand the finance and resources required to sustain the delivery of

services

• Optimize and prioritize the critical needs based on risk

Tell the infrastructure story…

Asset Management Plan Development Process

Create Asset Database

• Asset Inventory

• Condition Assessment

• Asset Valuation

• Asset Hierarchy

Assess Asset Criticality

• Criticality Ranking

• Asset Risk

Perform Life Cycle Cost

Assessment

• Catch Up

• Keep Up

• Moving Forward

Develop Risk Based Plan

• Risk

• Budget

• Resources

• Align with Strategic Direction

ASSET INVENTORY & CONDITION ASSESSMENT

Asset Inventory / Data Collection Activities

Roadway Condition Assessment

Underwater Condition Assessment

Building Inventory and Condition Assessment

Building Maintenance and Repair Challenges

Maintenance Needs

Condition Assessment

ADA Compliance Assessment

Tight stall width Non-compliant faucets Needs grab rails

Assets are Recorded and Organized

Port of Sunshine

19

Condition Assessment Results

Installation & Consumption Profiles

RISK ASSESSMENT

Risk

PoF CoF Risk

Probability of Failure

(Timing to Failure)• Mortality• Capacity• Level of Service• Financial Efficiency

Consequence of Failure(Impact of a failure)• Economic• Environment• Social

Risk Profile

State of Facilities

LS30

2

LS30

4

LS30

5

LS30

6

LS30

7

LS30

9

LS31

0

LS31

2

LS31

3

LS31

4

LS31

5

LS31

6

LS31

7

LS31

8

LS31

9

LS32

0

LS32

3

LS32

4

LS32

5

LS32

6

LS32

7

LS32

9

LS35

2

LS35

3

LS35

4

Tota

l

0%

20%

40%

60%

80%

100%

High Risk Medium Risk Low Risk

25

State of Pavement

Risk-Based Strategy

LIFE CYCLE COST ASSESSMENT

Calculating the Timing to Failure

Year

Co

nd

itio

n R

atin

g

20052000 2015 20202010

1

2

3

4

5

Asset Life Cycle Investment Logic

Time

Ris

k /

Co

nd

itio

nC

um

ula

ted

Co

st

Con

PoF

CoF

Risk

Min Risk

Min Con

Mn$

Op$

Cum$

Condition

Investment

PoF

CoF

Risk

Min Cond

Max Risk

Maintenance

Operation

Asset Management Tool

• IRIS (Infrastructure Reinvestment Intelligence System)

Asset Valuation (Parks)

Understanding the Need (Year By Year… Asset By Asset…)

Prioritize by Risk

Results are Mapped

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

10 YEAR PROJECTED RENEWAL NEED

General District Potable Water Recycled Water Sewer

Understanding the Impact of Funding

Projected Budget

Current Budget

Work Backlog Analysis

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

10 YEAR PROJECTED RENEWAL NEED

General District Potable Water Recycled Water Sewer

Current Budget

Unfunded Portion

What If We Don’t Do Anything?

Current Budget

$(500,000,000)

$(400,000,000)

$(300,000,000)

$(200,000,000)

$(100,000,000)

$-

$100,000,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

10 YEAR BACKLOGS AT CURRENT BUDGET

What If We Increase the Funds by 5%?

Increased Budget

$(500,000,000)

$(400,000,000)

$(300,000,000)

$(200,000,000)

$(100,000,000)

$-

$100,000,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

10 YEAR WORK BACKLOGS AT 5% INCREASE

Scenario Comparison

Asset Management Data Flow

GIS

CMMS

Finance

Budget

Work

Continuous Improvement

Using Asset Management Results to Understand and Communicate

• Catch Up

• Keep Up

• Moving Forward

Managing Risk & Planning for the Future

Thank you!