Benefits of Sound Asset Management Principles & Innovative Thinking Are Paying Off
October 19, 2018
Several City projects are expected to save taxpayers millions of dollars, thanks to innovative thinking, collaborative efforts, due diligence and applying sound asset management principles of City staff.
The environmental assessment review on the recently purchased Tembec lands, which has just been received by City administration, shows that the land may not require any significant additional clean up or site remediation.
Tembec had previously conducted significant environmental investigations starting in 1998 and site remediation beginning in 2002. Over 10-year long soil sample testing confirms that most regulatory standards will be met. Not needing extensive site remediation will translate into a projected cost saving around $2 million and will expedite the realization of the vision of those lands, creating economic diversity, job creation and the intermodal transportation hub.
Another great news item is around the Western Financial Place (WFP) roof replacement. It had been identified and reported that the roof needed full replacement due to leaking in various locations of the building. The full roof replacement would have cost approximately $3 million dollars to complete.
After several attempts to identify the cause of the leak, the City’s consultants report that condensation and humidity buildup is behind most of the water issues. With the problems identified, we are looking at multiple options which will extend the longevity of the roof assemblies including the aquatic centre and the arena barrel roof. The City expects to alleviate the water issues at WFP at considerable cost savings to taxpayers, creating a budget saving of potentially over $2 million.
And finally, on the 2nd Street South reconstruction project now completed, improved Asset Management processes and project delivery structures that the City implemented were able to reduce the actual project cost in the range of $2 million, or 30% of original estimates, which then went towards other priority infrastructure and road projects. This was a result of maximizing the lifespan of some assets rather than replacing them prematurely, as well as optimizing the asset investment based on the current and future demands.
Understanding the exact conditions of our tangible assets, through sound asset management principles, innovation and due-diligence improved the fiscal accountability of the City, as demonstrated above while working closely with local consultants and contractors towards a common goal.