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Asset Management Plan

Operational performance, capital needs, need and demand, redevelopment potential, financial analysis, and risk.

Two allied government agencies own adjoining residential housing facilities in the Okanagan. They have become dated and require considerable capital repairs in the coming years. As part of that due diligence the clients requested an asset management plan to examine the current situation, as well as examining strategic options for the sites looking at total cost of ownership over a 25-year time horizon. There were several aspects to be considered: operational performance, capital needs, need and demand, redevelopment potential, financial analysis, and risk. ISC was asked to examine the current operational structure to determine whether it was optimal in terms of funding, tenant satisfaction, and efficiency. Capital needs were reviewed based on provided engineering reports and on-site inspections to determine deferred maintenance, current needs, and long term requirements. The demand for the housing was examined to determine whether this housing was the necessary housing for the community, now and in the future. Extensive examination of the redevelopment potential of the sites was undertaken to determine whether there were other built forms which could accommodate the existing facility. Particular attention was paid to examining redevelopment potential to create a development which incorporated private and public participants as well as commercial elements in order to create a financially self-sufficient facility. Several options for redevelopment or optimization were modelled based on a 25-year net present value of the total cost of ownership.

In addition to financial success, the options were evaluated based on a triple bottom line performance measurement structure to incorporate metrics such as Indigenous capacity development, environmental impact, and community integration. A full risk analysis was completed to examine the potential risks posed by each option. The report will be used to guide the near-term capital planning, and long term strategic planning for the assets.