From ACRS to E-ACRS – A Journey Towards Sustainable Infrastructure in BC First Nation Communities 2020 AFN National Housing and Infrastructure Forum and Tradeshow Toronto, Ontario March 11, 2020 Danny Higashitani, P.Eng., Indigenous Services Canada – BC Region
2 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? 2
ACRS AC S Regions 3 3
4 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 operation 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. 4
5 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. 5
6 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. 6
7 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. 7
A SSET 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 (*1) General Condition Rating (*1) General Date Inspected Year of Remaining Quality Condition Rating MM/DD/YYYY Construction Life (Years) (unit) (0-10) 0 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 8
ASSET CONDITION REPORTING SYSTEM NEEDS IDENTIFICATION 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 (*1) General (*1) General Condition Rating Date Inspected Year of Remaining Life Quality Condition MM/DD/YYYY Construction (Years) (unit) 0 1-3 4-6 7-9 10 Rating (0-10) 06 / 25 / 2008 1984 30 1 ea 5 Closed Poor Fair Good New *2 – Group *3 – Category *4 – Type *5 – Urgency Project No. Existing *6 – Status Frequency Amount ($) Component Project Title Project Description Code No. Existing Projects in INAC Database Still Outstanding (status 0-incomplete only) B1 3.11 Clear vegetation Clear vegetation from around the 0.5 1 1 4 0 $200 002 0 pumphouse New Projects Identified This ACRS Inspection B1 3.1 Register well with MOE Well ID tag required 1 1 5 0 $100 B1 3.11 Install fence Construct 13m x 10m chainlink fence 2 3 1 0 $5,000 around pumphouse B1 3.4 Raise well head Raise well head to the required 2 2 1 0 $2,000 height B1 3.11 Conduct disinfection study Water source is an unconfined 3 4 1 0 $10,000 aquifer and a disinfection study is recommended 9 Well pump was replaced in 2005. Existing project 001 to erect fence around well head is cancelled and re- Comments: identified as a new project with corrected coding and updated costs.
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 10
11 Wh What is PSAB 3150? • A new accounting standard for reporting on 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 11
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. 12
13 Re Replacement nt Cos Cost vs. Histor orical Cos Cost • Ma Management Accounting – To manage assets effectively, a utility must know how much it will cost to replace their assets (forward looking) • Fi Accounting – TCA accounting Finan ancial al Ac (PSAB 3150) requires communities to record how much it cost to originally build the asset (backward looking) 13
14 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) 14
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35-Year Asset Replacement Chart Detail 16
17 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 17
18 Ke Key Termi minology •GIS a Geographic Information System which enables visualization, analysis, and interpretation of spatially referenced data. 18
E-AC ACRS S Map for Bu Building As Assets 19
20 Fi Five Core Cap apac acities for As Asset Man anag agement 20
St Stat ate of of 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 21 21
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 22
Little Shuswap La Li Lake Indian Band AM Video 23
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 on asset management •Develop templates for AMPs •Develop tools for coordinating AM activities 24
Su Sustai ainab able Infras astructure Wor orks kshop ops 25
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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 27
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 28
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 29
Re Remov oving ng the he Guess Wor ork 30 30
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