Asset Management Plan

Assiginack, Ontario

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Township of Assiginack ASSET MANAGEMENT PLAN FINAL REPORT July 2022 DFA Infrastructure International Inc. dfa DFA Infrastructure International Inc. 664-B Vine Street St. Catharines Ontario Canada L2M 7L8 Telephone: (905) 321-9874 July 29, 2022 Deb MacDonald, Treasurer/Deputy CAO Township of Assiginack PO Box 238, 156 Arthur Street Manitowaning, ON P0P 1N0 Re: Asset Management Plan - Final Report We are pleased to submit the Final Asset Management Plan Report to the Township of Assiginack. Please do not hesitate to contact us if you have any questions. Respectfully Submitted by, DFA Infrastructure International Inc. Derek Ali, MBA, P.Eng. President dfa DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 I DFA Infrastructure International Inc. Table of Contents Letter of Transmittal Executive Summary 1 Introduction..............................................................................................................................1 1.1 Regulatory Requirements ........................................................................................................... 1 1.2 Objectives ................................................................................................................................... 2 2 State of Local Infrastructure ....................................................................................................3 2.1 Asset Inventory ........................................................................................................................... 3 2.2 Financial Valuation...................................................................................................................... 4 2.2.1 Accounting Valuation .....................................................................................................................4 2.2.2 Replacement Cost Valuation ..........................................................................................................5 2.3 Asset Age .................................................................................................................................... 6 2.3.1 Water System Age ..........................................................................................................................6 2.3.2 Wastewater System Age.................................................................................................................7 2.3.3 Roads Network Age ........................................................................................................................8 2.3.4 Stormwater System Age .................................................................................................................8 2.3.5 Administration Facilities Age ..........................................................................................................9 2.3.6 Recreation Facilities Age ................................................................................................................9 2.3.7 Fire Protection Equipment Age ......................................................................................................9 2.3.8 Solid Waste Assets Age ................................................................................................................. 10 2.3.9 Library/ Heritage Facilities Age ..................................................................................................... 10 2.4 Asset Condition ......................................................................................................................... 10 2.5 Infrastructure Requirements .................................................................................................... 13 2.6 Asset Management Policy ........................................................................................................ 14 3 Levels of Service .....................................................................................................................14 4 Asset Management Strategy .................................................................................................15 4.1 Asset Management Strategy No.1 ............................................................................................ 15 4.2 Asset Management Strategy No.2 ............................................................................................ 16 4.3 Risk Analysis .............................................................................................................................. 17 4.4 Preferred Strategy .................................................................................................................... 17 5 Financing Strategy ..................................................................................................................18 5.1 User Rate Requirements ........................................................................................................... 18 5.2 Tax Levy Requirements ............................................................................................................. 20 6 Recommendations .................................................................................................................20 DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 II DFA Infrastructure International Inc. APPENDICES Appendix A: Asset Condition Appendix B: Assumptions Appendix C: Report Card Appendix D: Asset Management Policy Appendix E: Levels of Service Appendix F: Alternative Asset Management Strategies Appendix G: 25-Year Financial Projections (Alternative Strategy No.2) Appendix H: Risk Analysis TABLES Table 2-1: Asset Inventory Table 2-2: Accounting Valuation of Assets Table 2-3: Water System Age Table 2-4: Wastewater System Age Table 2-5: Road Network Age Table 2-6: Stormwater System Age Table 2-7: Administration Facilities Age Table 2-8: Recreation Assets Age Table 2-9: Fire Protection Assets Age Table 2-10: Solid Waste Assets Age Table 2-11: Library / Heritage Facilities Age Table 2-12: Asset Condition by Replacement Value Table 2-13: Infrastructure Requirements (Next 25 Years & Beyond) Table 4-1: Comparison of Alternative Strategies Table 5-1: Short-Term Water Revenue Requirements Table 5-2: Short-Term Wastewater Revenue Requirements Table 5-3: Short-Term Tax Levy Requirements FIGURES Figure 2-1: Replacement Cost Valuation of Assets (in 2022 Dollars) DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 DFA Infrastructure International Inc. Disclaimer: The information and statements contained in this report are based on the best available information at the time of preparation and intended use solely by the Township of Assiginack. The statements made shall not have any meaning other than those intended by the author. The author is not in any way liable for use and/ or interpretation of the information contained in the document. DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 EXECUTIVE SUMMARY i DFA Infrastructure International Inc. ES-1 Background The Township of Assiginack is responsible for providing a range of services to its community. These services support the local life style and economy and rely on the performance of the respective assets to deliver the required levels of service. The asset classes covered by this Asset Management Plan (AMP) and their respective replacement values are included in Figure ES-1. Figure ES-1: Replacement Cost Valuation of Assets (in 2022 Dollars) ES-2 State of Infrastructure Report The asset condition is rated as: good, fair and poor. Table ES-1 summarizes the asset condition for each asset class and shows the replacement cost in each condition category. In terms of replacement cost, the majority of the assets are in good condition, $2.1 million (3%) of the assets are in fair condition and $8.6 million (12%) in poor condition. The future infrastructure requirements are summarized in Table ES-2. DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 EXECUTIVE SUMMARY ii DFA Infrastructure International Inc. Table ES-1: Asset Condition by Replacement Value DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 EXECUTIVE SUMMARY iii DFA Infrastructure International Inc. Table ES-2: Infrastructure Requirements ES-3 Preferred Asset Management Strategy s the policy document already approved in 2019. The main components of the preferred strategy include the following: The main components of this strategy include the following: A mix of rehabilitation and replacement of assets. Rehabilitation is considered for assets where the risk to the operation and/ or service is acceptable when compared to replacement; Addressing the assets that are deemed to be in fair or poor condition as soon as possible; Increasing the wastewater annual operations budget by $5000 to allow for CCTV inspections Rely on the inspections and annual needs identified by the water and wastewater system operator to guide the decisions on items to be addressed and budgets Providing an annual budget within the water capital program for water facilities rehabilitation as identified annually by the operation contractor. The amounts in 2022 dollars are $100,000 annually until 2028 then increasing to approximately $188,000 between 2029 and 2046. These annual amounts intended to provide ongoing funding to address condition issues as they arise. Providing a similar annual budget for wastewater of $50,000 over the 25-year period. Addressing all of the road surface needs in the 25- year period through an annual program over the next 25 years. The annual capital provision is approximately $410,000 starting in 2023. The current annual funding level is $200,000. This approach considers road rehabilitation as the DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 EXECUTIVE SUMMARY iv DFA Infrastructure International Inc. primary activity with replacement as needed based on inspections. Major road replacement is expected to be deferred to future years due to the annual rehabilitation program; Providing an additional maintenance budget of $30,000 annually within the roads operating budget in lieu of major vehicle and equipment replacement given that most have exceeded their respective useful lives but are expected to remain in service for the next several years. Provisions for the following building inspections to assess rehabilitation needs: Public works garage and firehall - $35,000 in 2025 Arena - $40,000 in 2024 Docks - $20,000 in 2027 Museum - $30,000 in 2023 Log Buildings - $20,000 in 2024 Rehabilitation of buildings based on inspections and deferral of replacement. This includes undertaking the rehabilitation work recommended by in the respective inspection reports for the post office/ bank building and Burns Wharf Theatre. No provision for replacement of the landfill bins based on the assumption that the Township would no longer be responsible for the drop off depot under the new recycling regulations (O.Reg. 391/21) which transfers responsibility to packaging producers on April 1, 2025. ES-4 Financial Strategy The water system and wastewater system costs, including any asset related costs, are recovered through user rates. These are flat fees which are set by the Township each year for water and wastewater. The annual revenues required over the 25-year period through these rates are presented in Appendix G. Table 5-1 summarizes the short-term revenue requirements i.e. for the next 5 years for the water system. Table 5-2 shows the short-term wastewater revenue requirements. Table 5-3 shows the requirements for the tax supported assets. Table 5-1: Short-Term Water Rate Revenue Requirements Water System Financial Projections Cost / Revenue Item 2023 2024 2025 2026 2027 Township 5-Year Capital Forecast - $ - $ - $ - $ - $ Asset Rehabilitation 103,000 $ 106,090 $ 109,273 $ 112,551 $ 115,927 $ Asset Replacement - $ - $ - $ - $ - $ Total Capital Requirements 103,000 $ 106,090 $ 109,273 $ 112,551 $ 115,927 $ Debt Financing - $ - $ - $ - $ - $ Capital Reserve Financing 13,000 $ 16,090 $ 19,273 $ 22,551 $ 25,927 $ Other Financing (Grants, third party, etc.) 90,000 $ 90,000 $ 90,000 $ 90,000 $ 90,000 $ Total Capital Financing 103,000 $ 106,090 $ 109,273 $ 112,551 $ 115,927 $ Operations & Maintenance 286,756 $ 292,441 $ 298,240 $ 304,154 $ 310,187 $ Transfers to Capital Reserves 38,000 $ 52,000 $ 67,000 $ 83,000 $ 100,000 $ Debt Repayment 71,000 $ 71,000 $ 71,000 $ 71,000 $ 71,000 $ Less Non-Rate Revenues 75,324 $ 75,450 $ 75,579 $ 75,711 $ 75,845 $ Revenue Requirements (from Users) 320,432 $ 339,990 $ 360,660 $ 382,443 $ 405,342 $ Annual Increase ($) 15,250 $ 19,559 $ 20,670 $ 21,783 $ 22,899 $ Annual Increase (%) 6% 6% 6% 6% 6% DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 EXECUTIVE SUMMARY v DFA Infrastructure International Inc. Table 5-2: Short-Term Wastewater Rate Revenue Requirements Table 5-3: Short-Term Tax Levy Requirements ES-5 Recommendations The following are the recommendations: 1. That the current Asset Management policy be updated by the Township prior to July 1, 2024; 2. That the levels of service targets presented in Section 3 be adopted by the Township; 3. That the preferred Asset Management Strategy presented in Section 4 be adopted by the Township; and 4. That the Financial Strategy presented in Section 5 be adopted by the Township to support the asset management strategy DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 1 DFA Infrastructure International Inc. 1 Introduction The Township of Assiginack (Township) has a population of approximately 1,008 (Statistics Canada 2021 Census) and provides a range of services to support the local life style and economy. It relies on the performance of its assets to deliver the required levels of service. These include the following assets which are included in this Asset Management Plan (AMP): Water System Assets (treatment plant, mains, booster stations etc.); Wastewater System Assets (treatment plant, mains, sewage pumping stations etc.); Storm Water System Assets (mains, manholes, catch basins etc.); Road Network Assets (Buildings, road base, road surface, vehicles, equipment etc.); Fire Protection Assets (vehicles, equipment, etc.) Solid Waste Management System Assets (landfill, building etc.); and Administration Buildings (municipal office, post office, bank, etc.) Heritage & Library Buildings (museum, theatre, school house, etc.) A complete listing of the assets included in the AMP is provided in Section 2.1. The condition of these assets due to aging and deterioration could have a major impact on service delivery if it goes unchecked. Sufficient investments are required to ensure that these assets are maintained, rehabilitated and/or replaced in a timely fashion to ensure that services are delivered at the desired levels. The importance of the assets (i.e. consequence of failure), their respective needs based on existing condition and using appropriate solutions must be considered in determining the most economical asset management strategy. The required investment amounts would be included the future annual operating and capital budgets. The financing of these expenditures through an appropriate financial plan that includes a combination of taxes, user rates, reserves and debt must also be developed to support the asset management strategy having regard to the To debt capacity and affordability. 1.1 Regulatory Requirements O.Reg. 588/17 requires municipalities to prepare asset management plans for their core services assets by July 1, 2022 and all other assets by July 1, 2023. The core assets are those related to water, wastewater, stormwater and roads. An asset management policy was also required by July 1, 2019. The following is a general overview of the items that asset management plans must include. The municipality's asset management policy that was prepared on July 1, 2019 to be updated every 5 years The current level of service for each asset category The proposed levels of service for the 10-year period following the date of the asset management plan and an explanation of options, risks, achievability and affordability Current performance of each asset category based on information from the most recent 2 years Proposed performance of the assets over the next 10 years DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 2 DFA Infrastructure International Inc. A summary of the assets in each category, their replacement costs, average age, available condition information and the approach used to assess condition Options for the activities required to maintain the level of service for each asset category over their respective life cycles, the risks under each option and the lowest cost option A financial strategy Growth assumptions and potential impact on the lifecycle activities and the financial strategy The method for distributing the asset management plan to the public The asset management plans must also be reviewed annually to assess progress with its implementation and identify any steps to address challenges faced. An update of the plan is required every 5 years. 1.2 Objectives The purpose of the Asset Management Plan (AMP) is to meet the requirements of O.Reg.588/17 for both the core and non-core assets and serve as a covering the next 25 years (2022 to 2046) for the Township by: Assessing the condition of its assets; Identifying the maintenance, rehabilitation and replacement needs; and Having a plan to finance the work required to ensure that services continue to be delivered at the desired levels. A 100-year asset renewal outlook is used to capture the full life cycle of the assets when identifying the timing of asset replacement and/or rehabilitation requirements and associated costs. Many of the assets have life expectancies that span decades so a 100-year timeframe ensures that the complete lifespan of each asset is captured. A 25-year life cycle cost projection as well as the annual amount required over the next 25 years for asset renewal beyond 2046 is included. This is intended to provide the full picture is based on the best available information provided by the Township and input from senior staff. It will require updating every 5 years as required under O.Reg. 588/17 to reflect changes to the asset condition data, Township priorities and financial opportunities over time. Limitations of the AMP This AMP is based on using the best information available to the Township and making assumptions using professional judgment to address the gaps. The limitations of this AMP include assumptions made regarding the following for some assets: Installation dates where these were not available; Use of age-based condition assessment for most assets in the absence of actual condition information; Estimates of costs based on professional judgment where cost information was unavailable; Timing of asset replacement and/ or rehabilitation based on the life expectancies noted in the Townships PSAB 3150 TCA records; and Debt financing rate and term and other financial rates DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 3 DFA Infrastructure International Inc. 2 State of Local Infrastructure 2.1 Asset Inventory Table 2-1: Asset Inventory Service Assets Quantity Watermains 7114 Metres Valves 109 Units Services 235 Service Connections Hydrants 46 Units Buildings 2 Water Treatment Plants 2 Pump Stations 2 Reservoirs Wastewater Mains 5698 Metres Laterals 199 Lateral Connections Manholes 67 Units Forcemains 1701 Metres Buildings 1 Pumping Station 2 Treatment Lagoons Stormwater Mains 2116 Metres Manholes 15 Units Catch basins 32 Units Gravel 50,214 Metres Asphalt 6325 Metres Surface Treatment 41582 Metres Vehicles and Equipment 16 Vehicles/Equipment Buildings 1 Public Works Salt Shed 1 Coverall Vinyl Storage Building 1 Public Works Garage and Fire Hall Buildings 1 Municipal Office and Library 1 Post Office and Bank 1 Hilly Grove Chapel 1 Medical Clinic 1 Log General Blacksmithing 1 Museum 1 Burn Warehouse 1 Log Drive Shed 1 Old Mill 1 Log Pioneer 1 Log Schoolhouse 1 Information Booth Mechanical and Electrical Equipment Unspecified Quantity Computers Land - Area not Provided Buildings 1 Arena 1 Marina Parks Unspecified Quantity Parks and Sports Fields Vehicles 3 Fire Trucks/Vehicles Mechanical and Electrical Equipment Unspecified Quantity Bunker Suits Unspecified Quantity FD Autoext. Equipment Solid Waste Landfill 1 Recycling Depot 1 Landfill Site Unspecified Quantity Landfill Bins Buildings 1 Library 1 Log Heritage Buildng 1 Theatre Heritage & Library Fire Protection Water Wastewater Storm Road Administration Recreation DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 4 DFA Infrastructure International Inc. -1. This asset inventory was developed from the PSAB 3150 TCA data and refined based on discussions with the Township to ensure as much accuracy as possible. The inventory forms part of the overall Asset Management and Financial Planning Model to establish the preferred asset management strategy and related financial strategy for the Township. It includes all of the relevant asset attributes and was segmented by service to facilitate cost recovery from taxes and the water and wastewater rates as appropriate. and condition of the assets related to the respective services. Therefore the timing of asset maintenance, rehabilitation and replacement activities is essential to sustaining performance so that service levels are maintained. 2.2 Financial Valuation assets are presented below: The Accounting Valuation. This is based on historical costs and depreciation assumptions over the expected life of the asset; and The Replacement Cost Valuation. This is based on current industry pricing and inflation to the year of replacement and/ or rehabilitation. 2.2.1 Accounting Valuation 50 reporting at December 31, 2021 and assumes straight line depreciation over the useful life of the assets. The valuation of assets by service area is reflected in Table 2-2 which indicates the following: The total historical cost of the of all the assets is approximately $29.8 million; The accumulated depreciation is approximately $14.4 million which means that the total asset base ( 9% through its life expectancy; and The Net Book Value (NBV) of the asset base is approximately $15.1 million. The assets have approximately 51% of their expected life remaining. The water system and recreation facilities are the newest. However, the road network and fire protection assets are estimated to have only 22% of their expected life remaining. DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 5 DFA Infrastructure International Inc. Table 2-2: Accounting Valuation of Assets 2.2.2 Replacement Cost Valuation The Replacement Cost Valuation is based on a combination of industry prices for the infrastructure assets and indexing historical costs to current year for vehicles and buildings to reflect the replacement value in 2022 Dollars. The 2022 replacement value is indexed using an annual capital inflation rate of 3% to the year in which future replacement and/ or rehabilitation work is expected to be undertaken. Figure 2-1shows the replacement value of the assets by service. The total replacement value of all the assets is estimated to be approximately $70 million in 2022 dollars. This is the estimated cost that would be incurred if the Township were to replace all of its assets today. The Road network accounts for most of the value at approximately $30 million (42% of total assets) followed by the Water System at $17 million (19%) and the Wastewater System at 12.5 million (18%). The replacement cost valuation is almost five (5) times higher than the accounting valuation (NBV) of the assets. Therefore the replacement costs valuation, which is a more realistic estimate of actual costs that can be expected, is used for asset management planning as the Township looks to the future. Asset Class Historical Cost Accumulated Amortization Net Book Value (December 31, 2021) Remaining Life (%) WATER SYSTEM 10,429,832 $ 3,553,429 $ 6,876,403 $ 66% WASTEWATER SYSTEM 4,938,017 $ 2,925,603 $ 2,012,414 $ 41% STORMWATER SYSTEM 382,679 $ 180,514 $ 202,164 $ 53% ROADS NETWORK 7,843,709 $ 4,942,998 $ 2,523,418 $ 32% ADMINISTRATION BUILDINGS 1,500,050 $ 614,887 $ 885,163 $ 59% RECREATION FACILITIES 3,328,244 $ 1,287,651 $ 2,040,593 $ 61% FIRE PROTECTION 578,163 $ 393,676 $ 186,252 $ 32% SOLID WASTE FACILITIES 488,017 $ 277,223 $ 210,794 $ 43% HERITAGE & LIBRARY 331,093 $ 190,747 $ 142,603 $ 43% TOTAL 29,819,805 $ 14,366,731 $ 15,079,804 $ 51% DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 6 DFA Infrastructure International Inc. Figure 2-1: Replacement Cost Valuation of Assets (in 2022 Dollars) 2.3 Asset Age 2.3.1 Water System Age The age of the water system is summarized in Table 2-3. It consists of 7 kilometres of water main, 109 valves, 235 service connections, 52 hydrants and 16 facilities components. Table 2-3: Water System Age $17,192,931 , 24% $12,508,840 , 18% $1,861,866 , 3% $29,107,757 , 42% $2,056,587 , 3% $4,879,432 , 7% $786,082 , 1% $613,385 , 1% $831,107 , 1% WATER SYSTEM WASTEWATER SYSTEM STORMWATER SYSTEM ROAD NETWORK ADMINISTRATION BUILDINGS RECREATION FACILITIES FIRE PROTECTION SOLID WASTE FACILITIES HERITAGE & LIBRARY Replacement Cost (in 2022 $) = $69,837,988 <10 10 to 20 21 to 30 31 to 40 41 to 50 51 to 60 61 to 70 71 to 80 >80 Unknown Total Length (m) or Units Percent (%) 100 - - - - 2,356 - - - - - 2,356 33.12% 150 - 100 - - 3,894 - - - - - 3,994 56.14% 200 - - - - 624 - - - - - 624 8.77% 250 - - - - 140 - - - - - 140 1.97% Length (m) by Age - 100 - - 7,014 - - - - 7,114 Percent (%) by Age 0.00% 1.41% 0.00% 0.00% 98.59% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% PVC CL-160 0 - - - 7,014 - - - - - 7,014 100.00% Length (m) by Age 0 - - - 7,014 - - - - 7,014 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% No. of Units by Age - - - - 109 - - - - - 109 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% No. of Units by Age - - - - 235 - - - - - 235 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% No. of Units by Age - 7 - - 45 - - - - - 52 Percent (%) by Age 0.00% 13.46% 0.00% 0.00% 86.54% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% No. of Components by Age 6 10 - - - - - - - - 16 Percent (%) by Age 37.50% 62.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% Water System Assets Age (Years) Watermains by Diameter (mm) Watermains by Material Water Valves Service Connections Hydrants Water Facilities DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 7 DFA Infrastructure International Inc. The pipe system is all PVC ranging in diameter from 100mm to 250 mm. Approximately 2.4 km (33%) is 100mm and 4 km (56%) is 150mm. The water system is 41 to 50 years old with some hydrants and facilities less than 20 years old. This suggests that the water system is generally at half its life expectancy which is projected to be approximately 80 years. 2.3.2 Wastewater System Age The age of the water system is summarized in Table 2-4. It consists of 5.6 kilometres of sanitary sewer main, 1.7 kilometres of forcemain, 67 manholes, 199 service connections and 6 facilities or components. Most of the pipe system (approximately 5.2 kilometres or (93%) is asbestos cement. Approximately 5.1 km (91%) is 200mm and the remainder 150mm. These are all between 41 and 50 years old. All of the forcemains are 150mm diameter PVC pipe and 10 to 20 years old. Three (3) facilities are 41 to 50 years old and 1 less than 20 years old. This suggests that the wastewater system is generally just over half of its life expectancy which is estimated at approximately 80 years. Table 2-4: Wastewater System Age <10 10 to 20 21 to 30 31 to 40 41 to 50 51 to 60 61 to 70 71 to 80 >80 Unknown Total Length (m) or Units Percent (%) 200 - - - - 5,181 - - - - - 5,181 90.92% 300 - - - - 425 - - - - - 425 7.46% Unknown - - - - 92 - - - - - 92 1.62% Length (m) by Age - - - - 5,698 - - - - - 5,698 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% Abs-Cem - - - - 5,230 - - - - - 5,230 93.21% Concrete C76 - - - - 254 - - - - - 254 4.53% Ductile Iron - - - - 5 - - - - - 5 0.09% PE - - - - 122 - - - - - 122 2.17% Length (m) by Age - - - - 5,611 - - - - - 5,611 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% Length (m) by Age - - - - 199 - - - - - 199 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% No. of Units by Age - - - - 67 - - - - - 67 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 150 - 1,701 - - - - - - - - 1,701 100.00% Length (m) by Age - 1,701 - - - - - - - - 1,701 Percent (%) by Age 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% PVC CL160 - 1,701 - - - - - - - - 1,701 100.00% Length (m) by Age - 1,701 - - - - - - - - 1,701 Percent (%) by Age 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% No. of Components by Age 0 1 0 0 3 0 0 0 0 0 4 Percent (%) by Age 0.00% 25.00% 0.00% 0.00% 75.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% Sanitary Mains by Diameter (mm) Sanitary System Assets Age (Years) Sanitary Mains by Material Sanitary Laterals Sanitary Manholes Sanitary Facilities Force Mains by Diameter (mm) Force Mains by Material DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 8 DFA Infrastructure International Inc. 2.3.3 Roads Network Age The age of the road system is summarized in Table 2-5. It consists of approximately 98 kilometres of surface treated, asphalt and gravel road, 4 facilities and 20 vehicles and equipment units. Approximately 50 km (51%) of the roads is gravel, 41 km (42%) surface treated and 6 km (6%) asphalt. Most (62km or 63%) of the road surfaces are 51 to 60 years old. Most of the asphalt surfaces (4.5 km), 21 km (50%) of the surface treated surfaces and 39.4km (78%) of the gravel surfaces fall in this age group. This suggests that many of the road surfaces have exceeded their life expectancy which is estimated at approximately 20 to 40 years depending on surface type. Most of the vehicles and equipment are less than 20 years old but beyond their estimated life expectancy of 5 to 10 years. 3 facilities are 51 to 60 years old. Table 2-5: Road Network Age 2.3.4 Stormwater System Age The age of the storm water system is summarized in Table 2-6. It consists of approximately 2.1 kilometres of storm sewer main, 15 manholes, and 32 catch basins. Table 2-6: Stormwater System Age <10 10 to 20 21 to 30 31 to 40 41 to 50 51 to 60 61 to 70 71 to 80 >80 Unknown Total Length (m) or Units Percent (%) Surface Treatment 2,245 18,350 - - 37 20,950 - - - - 41,582 42.38% Asphalt 3,700 840 475 - - 1,310 - - - - 6,325 6.45% Gravel - 10,720 - - 84 39,410 - - - - 50,214 51.18% Length (m) by Age 5,945 29,910 475 - 121 61,670 - - - - 98,121 Percent (%) by Age 6.06% 30.48% 0.48% 0.00% 0.12% 62.85% 0.00% 0.00% 0.00% 0.00% 100.00% Equipment 5 7 3 1 0 1 0 0 0 0 17 85.00% Vehicle 1 2 0 0 0 0 0 0 0 0 3 15.00% Quantity by Age 6 9 3 1 0 1 0 0 0 0 20 Percent (%) by Age 30.00% 45.00% 15.00% 5.00% 0.00% 5.00% 0.00% 0.00% 0.00% 0.00% 100.00% No. of Facilities by Age 0 0 0 0 0 3 0 0 1 0 4 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 0.00% 75.00% 0.00% 0.00% 25.00% 0.00% 100.00% Road System Assets Age (Years) Road Surface Road Vehicles Road Facilities <10 10 to 20 21 to 30 31 to 40 41 to 50 51 to 60 61 to 70 71 to 80 >80 Unknown Total Length (m) or Units Percent (%) 300 - - - - 631 - - - - - 631 29.82% 375 - - - - 129 - - - - - 129 6.10% 450 - 600 - - 102 - - - - - 702 33.18% 525 - - - - 102 - - - - - 102 4.82% 750 - - - - 102 - - - - - 102 4.82% 900 - 450 - - - - - - - - 450 21.27% Length (m) by Age - 1,050 - - 1,066 - - - - - 2,116 Percent (%) by Age 0.00% 49.62% 0.00% 0.00% 50.38% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% PVC - 1,050 - - 1,066 - - - - - 2,116 100.00% Length (m) by Age - 1,050 - - 1,066 - - - - 2,116 Percent (%) by Age 0.00% 49.62% 0.00% 0.00% 50.38% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% No. of Units by Age 0 - - - 15 - - - - - 15 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% No. of Units by Age - - - - 32 - - - - - 32 Percent (%) by Age 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% Stormwater System Assets Age (Years) Stormwater Mains by Diameter (mm) Stormwater Mains by Material Stormwater Manholes Stormwater Catch Basins DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 9 DFA Infrastructure International Inc. The pipes are all PVC with approximately 50% less than 20 years old and 50% in the 41 to 50 age group along with the manholes and catch basins. This suggests that the storm water system is generally just beyond half of its life expectancy which is estimated at approximately 80 years. 2.3.5 Administration Facilities Age The age of the administration facilities is summarized in Table 2-7. Approximately assets (73%) are less than 20 years old. This suggests the building assets are early stages in their life expectancy estimated 20 to 50 years. Table 2-7: Administration Facilities Age 2.3.6 Recreation Facilities Age The age of the recreation facilities is summarized in Table 2-8. Most of these assets (14 or 54%) are less than 10 years old. 7 (27%) are between 10 and 20 years old. The structural components are approaching their estimated useful lives of 50 years. The mechanical and electrical components are between 20% and 40% of their useful lives of 20 years. Table 2-8: Recreation Facilities Age 2.3.7 Fire Protection Equipment Age The age of the fire protection equipment is summarized in Table 2-9. Note that the fire hall is part of the public works garage which is included under the roads facilities assets. 5 assets (50%) are less than 10 years old and 3 (30%) between 10 and 20 years old. One fire truck is almost 50 years old and another almost 30 years old. Their life expectancy is noted as 25 years. <10 10 to 20 21 to 30 31 to 40 41 to 50 51 to 60 61 to 70 71 to 80 >80 Unknown Total Length (m) or Units Percent (%) Quantity by Age 3 8 1 2 0 0 0 0 1 0 15 Percent (%) by Age 20.00% 53.33% 6.67% 13.33% 0.00% 0.00% 0.00% 0.00% 6.67% 0.00% 100.00% Administration Assets Age (Years) Administration <10 10 to 20 21 to 30 31 to 40 41 to 50 51 to 60 61 to 70 71 to 80 >80 Unknown Total Length (m) or Units Percent (%) Quantity by Age 14 7 1 0 1 3 0 0 0 0 26 Percent (%) by Age 53.85% 26.92% 3.85% 0.00% 3.85% 11.54% 0.00% 0.00% 0.00% 0.00% 100.00% Recreation Assets Recreation Assets Age (Years) DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 10 DFA Infrastructure International Inc. Table 2-9: Fire Protection Assets Age 2.3.8 Solid Waste Assets Age The age of the solid waste facilities is summarized in Table 2-10. Most assets are less than 10 years old. Table 2-10: Solid Waste Assets Age 2.3.9 Library/ Heritage Facilities Age The age of the library and heritage facilities is summarized in Table 2-11. 3 (33%) of the facilities are less than 10 years old. These are the library assets. Approximately 7 facilities (58%) comprising mainly the log buildings and the Burns Wharf Theatre are 71 to 80 years old. The Information Booth is approximately 51 years old. This indicates that most of the heritage assets are past their estimated life expectancy of 50 years. Table 2-11: Library / Heritage Facilities Age 2.4 Asset Condition The condition of each asset was determined based on age and adjusted as necessary using the condition assessment information from the 2008 Asset Management Study discussions with staff to identify any operational issues due to deteriorating asset condition and capital works completed since 2008. Recent condition information and discussions with staff to identify any issues were used to gauge asset condition. Age was used as the condition indicator in cases where condition information was not available. The asset condition is rated as: good, fair and poor. Table 2-12 summarizes the asset condition for each asset class and shows the replacement cost in each condition category. Further breakdown of the condition of each asset class is provided in Appendix A. <10 10 to 20 21 to 30 31 to 40 41 to 50 51 to 60 61 to 70 71 to 80 >80 Unknown Total Length (m) or Units Percent (%) Quantity by Age 5 3 1 0 1 0 0 0 0 0 10 Percent (%) by Age 50.00% 30.00% 10.00% 0.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% Fire Protection Assets Age (Years) Fire Protection Assets <10 10 to 20 21 to 30 31 to 40 41 to 50 51 to 60 61 to 70 71 to 80 >80 Unknown Total Length (m) or Units Percent (%) No. of Components by Age 3 1 0 0 0 0 0 0 0 0 4 Percent (%) by Age 75.00% 25.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% Solid Waste Assets Age (Years) Solid Waste Assets <10 10 to 20 21 to 30 31 to 40 41 to 50 51 to 60 61 to 70 71 to 80 >80 Unknown Total Length (m) or Units Percent (%) No. of Components by Age 4 0 0 0 0 1 0 7 0 0 12 Percent (%) by Age 33.33% 0.00% 0.00% 0.00% 0.00% 8.33% 0.00% 58.33% 0.00% 0.00% 100.00% Solid Waste Assets Age (Years) Library & Heritage Assets DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 11 DFA Infrastructure International Inc. In terms of replacement cost, the majority of the assets are in good condition, $2.1 million (3%) of the assets are in fair condition and $8.6 million (12%) in poor condition. The condition by asset class is summarized as follows: Water System Generally good condition except for the gantry crane which will reach useful life in. Operations personnel have also indicated that there are process components requiring ongoing repair and maintenance. An annual budget is included in the asset management plan to address these items. Wastewater System Generally good condition except for sewage pumping station and treatment lagoon components valued at approximately $4.1 million in poor condition; Road Network The road network is generally in good condition except for approximately 1.3 km valued at approximately $281,000 assessed to be in poor condition. However many road surfaces are expected to become due for replacement within the next 25 years. In terms of vehicles, equipment and facilities, 17 equipment units valued at approximately $1.4 million and 3 facilities valued at approximately $ 350,000 are in fair or poor condition; Storm Water System Generally good condition; Administration Facilities 6 (30%) of the 15 components (i.e. electrical, mechanical, structural, roof) valued at approximately $691,000 are in mostly poor to fair condition. The other 70% are in good condition. The post office/ bank falls into this group based on age. However a 2021 inspection report recommends repair and rehabilitation work which is included in the financial strategy; Recreation Facilities 8 (30%) of the assets (i.e. electrical, mechanical, structural, roof) valued at approximately $2.1 million are in mostly poor to fair condition. The other 18 components are in good condition; Fire Protection Equipment 6 of the 10 units valued at approximately $396,000 is in fair to poor condition. These are mainly the fire trucks. The remaining units are in good condition; Solid Waste Facilities Generally in good condition ; and Library & Heritage Facilities - The library assets are in generally good condition. However the log buildings and the Burns Wharf Theatre are in poor condition and need of repair. These are valued at approximately $622,000. A condition assessment report outlining the rehabilitation requirements at the theatre was prepared in 2016. The theatre has been temporarily removed from service pending a decision by Council on whether or not to proceed with the work. DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 12 DFA Infrastructure International Inc. Table 2-12: Asset Condition by Replacement Value Good Fair Poor Watermains $ 4,125,221 $ - $ - $ 4,125,221 Water Valves $ 228,900 $ - $ - $ 228,900 Water Services $ 780,457 $ - $ - $ 780,457 Water Hydrants $ 364,000 $ - $ - $ 364,000 Water Facilities $ 11,688,744 $ 5,609 $ - $ 11,694,353 Total Water System $ 17,187,322 $ 5,609 $ - $ 17,192,931 Percentage (%) 99.97% 0.03% 0% 100% Wastewater Mains $ 3,754,793 $ - $ - $ 3,754,793 Service Connections $ 786,783 $ - $ - $ 786,783 Manholes $ 485,644 $ - $ - $ 485,644 Force Mains $ 1,120,869 $ - $ - $ 1,120,869 Wastewater Facilities $ 2,292,074 $ - $ 4,068,676 $ 6,360,750 Total Wastewater System $ 8,440,164 $ - $ 4,068,676 $ 12,508,840 Percentage (%) 67% 0% 33% 100% Storm Mains $ 1,673,199 $ - $ - $ 1,673,199 Manholes $ 108,726 $ - $ - $ 108,726 Catch Basins $ 79,941 $ - $ - $ 79,941 Total Stormwater System $ 1,861,866 $ - $ - $ 1,861,866 Percentage (%) 100% 0% 0% 100% Roads& Bridges $ 25,699,843 $ 736,571 $ 281,410 $ 26,717,824 Vehicles and Equipment $ 425,175 $ 414,692 $ 1,027,359 $ 1,867,226 Road Facilities $ 15,932 $ - $ 350,349 $ 366,281 Sidewalks & Streetlights $ 156,426 $ - $ - $ 156,426 Total Road Network $ 26,297,376 $ 1,151,263 $ 1,659,118 $ 29,107,757 Percentage (%) 90% 4% 6% 100% Administration $ 1,433,822 $ 577,765 $ 45,000 $ 2,056,587 Total Administration Assets $ 1,433,822 $ 577,765 $ 45,000 $ 2,056,587 Percentage (%) 70% 28% 2% 100% Recreation $ 2,810,523 $ 150,951 $ 1,917,958 $ 4,879,432 Total Recreation Assets $ 2,810,523 $ 150,951 $ 1,917,958 $ 4,879,432 Percentage (%) 58% 3% 39% 100% Fire Protection $ 390,288 $ 102,401 $ 293,393 $ 786,082 Total Fire Protection Assets $ 390,288 $ 102,401 $ 293,393 $ 786,082 Percentage (%) 50% 13% 37% 100% Solid Waste $ 556,054 $ 57,331 $ - $ 613,385 Total Solid Waste Assets $ 556,054 $ 57,331 $ - $ 613,385 Percentage (%) 91% 9% 0% 100% Heritage & Library $ - $ - $ - $ - Total Heritage & Library Assets $ 234,531 $ - $ 622,377 $ 856,908 Percentage (%) 27% 0% 73% 100% Total Assets $ 59,211,946 $ 2,045,320 $ 8,606,522 $ 69,863,789 Percentage (%) 85% 3% 12% 100% Asset Condition Rating Total DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 13 DFA Infrastructure International Inc. 2.5 Infrastructure Requirements Table 2-13 summarizes the infrastructure needs based on replacement for the study period i.e. 2022 2046 and beyond. This reflects the future costs facing the Township over the next 100 years. The assumptions made to develop these costs projections are included in Appendix B. Approximately $43.6 million is required between 2022 and 2046 and $26.3 million beyond 2046. The latter amount translates to an annual requirement of approximately $1.5 million to ensure that sufficient funds are available for replacement beyond 2046. Approximately 62% ($27.2 million) of the $43.6 million requirement over the next 25 years is road related mostly resurfacing. Water accounts for approximately $3.9 million (9%) and Wastewater $6.4 million (15%). Regarding the needs beyond 2037, water accounts for the majority of costs (50%) estimated at $13.2 million and wastewater accounts for $6.1 million (23%). A Report Card reflecting the asset condition and projected costs is provided in Appendix C. Table 2-13: Infrastructure Requirements (Next 25 years and beyond) 4,125,221 $ - $ 4,125,221 $ 238,424 $ 228,900 $ - $ 228,900 $ 13,050 $ 780,457 $ - $ 780,457 $ 44,742 $ 364,000 $ - $ 364,000 $ 20,604 $ 11,694,353 $ 3,981,426 $ 7,712,927 $ 405,704 $ Total Water System 17,192,931 $ 3,981,426 $ 9% 13,211,505 $ 50% 722,524 $ 3,754,793 $ - $ 3,754,793 $ 213,553 $ 786,783 $ - $ 786,783 $ 44,748 $ 485,644 $ - $ 485,644 $ 27,621 $ 1,120,869 $ - $ 1,120,869 $ 59,174 $ 6,360,750 $ 6,360,750 $ - $ - $ Total Wastewater System 12,508,840 $ 6,360,750 $ 15% 6,148,090 $ 23% 345,096 $ 1,673,199 $ - $ 1,673,199 $ 92,823 $ 108,726 $ - $ 108,726 $ 6,184 $ 79,941 $ - $ 79,941 $ 4,547 $ Total Storm Water System 1,861,866 $ - $ 0% 1,861,866 $ 7% 103,554 $ 26,717,824 $ 24,809,075 $ 1,908,750 $ 111,912 $ 1,867,226 $ 1,867,226 $ - $ - $ 366,281 $ 350,349 $ 15,932 $ 842 $ 156,426 $ 156,426 $ - $ - $ Total Road Network 29,107,757 $ 27,183,076 $ 62% 1,924,682 $ 7% 112,754 $ 2,056,587 $ 1,083,310 $ 2% 973,277 $ 4% 57,696 $ 4,879,432 $ 2,925,734 $ 7% 1,953,698 $ 7% 109,229 $ 786,082 $ 786,082 $ 2% - $ 0% - $ 613,385 $ 613,385 $ 1% - $ 0% - $ 856,908 $ 666,413 $ 2% 190,495 $ 10,154 $ 69,863,789 $ 43,600,176 $ 100% 26,263,613 $ 99% 1,461,005 $ Annual Lifecycle Replacement Water Mains Water Valves Water Services Water Hydrants Assets Total Replacement Costs ($2022) 25-Year Requirement (2022-2046) Requirement Beyond 25 years (>2046) Solid Waste Heritage & Library Water Facilities Wastewater Mains Wastewater Laterals Wastewater Manholes Wastewater Force Mains % % Wastewater Facilities Total Assets Stormwater Mains Stormwater Manholes Stormwater Catch Basins Roads & Bridges Road Vehicles and Equipment Road Facilities Sidewalks & Street Lights Administration Recreation Fire Protection DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 14 DFA Infrastructure International Inc. 2.6 Asset Management Policy is provided in Appendix D. It presents the Township's vision, objectives and principles regarding asset management planning and related policies on the following: Stakeholder engagement Climate change Capitalization thresholds Budgeting Governance and continuous improvement O.Reg. 588/17 requires that the policy be updated in 2024. 3 Levels of Service The requirements of O.Reg. 588/17 form the basis for defining the expected service levels for the core asset classes. The levels of service for the non-core assets are at the Township's discretion. The not explicitly documented in a strategic plan. However the general objectives of providing services at levels that meet the community expectations and compliance with regulatory requirements are inherent Population growth is not expected to have a major influence on the asset needs based on the slight decline in population from1,013 in 2016 to 1,008 in 2021 (Statistics Canada 2021 Census of Population). Municipal Highways Policy a -Law 04-42 identifies the desired level of service for each road class. These standards are consistent with requirements of O.Reg. 239/02 which sets the minimum road maintenance service levels in Ontario. The current annual maintenance budget and staff resources allow the Township to meet these targets. However, additional capital funding is required annually to ensure that roads are kept in good condition do not deteriorate. The service levels for the non-core assets are identified as the percentage of the asset class that is poor condition is zero such that the use of the asset is not restricted. It is recognized that these targets would be adjusted over time as more detailed asset condition information become available. Appendix E and the requirements under O.Reg. 588/17. It shows the current service levels, the target (desired) service levels and performance measure for each asset class. These service level targets were reviewed and discussed with Township staff prior to finalization. DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 15 DFA Infrastructure International Inc. 4 Asset Management Strategy Two (2) alternative asset management strategies were identified based on a high level qualitative assessment of the potential likelihood and consequence of failure given the current asset condition in each system. The components of each strategy are summarized in Appendix F and generally include the following: Asset Management Strategy No.1. This strategy is generally based primarily on replacement of assets as they reach their respective life expectancies but includes maintenance activities; Asset Management Strategy No.2. This strategy is generally based on a combination of inspection, maintenance, rehabilitation and replacement of assets to offer a balanced approach. It focuses on the assets that are a priority from a condition perspective and uses rehabilitation as the primary approach to defer replacement to future years. In addition each strategy includes the following components: Growth Considerations. Growth is expected to be through infilling and conversion of seasonal to permanent residential units and accommodated through the existing infrastructure capacity i.e. no infrastructure capacity expansions are anticipated. Therefore the preferred strategy does not attempt to dovetail replacement and/ or rehabilitation work with any infrastructure expansion that may be required in the future if and when a major new development is identified; is a potential benefit to be derived would continue; Contracted Water & Wastewater Operations. The water and wastewater operations are currently outsourced. This allows the Township to access the required expertise, control costs and manage risks. Under the contract the Township is responsible for major capital expenditures and maintenance call outs that exceed the specified allocation in the contract. This arrangement is expected to continue in the future; and Operations and Maintenance. Increasing the annual wastewater operations and maintenance budget by $5,000 to facilitate sewer inspections over time. Other water and wastewater maintenance would remain the same as these are covered under the operating contract and the existing budgets are sufficient to cover additional annual maintenance not included in the operations contract. The life cycle costs of each alternative strategy were developed based on the projected capital, operating and maintenance costs over the life expectancy of each asset using the financial assumptions noted in Appendix B. The operating costs and non-rate revenue projections were based on the 2022 operating budget. The life cycle costs are presented in Appendix G. 4.1 Asset Management Strategy No.1 The main components of this strategy include the following: Replacement of assets as a priority over rehabilitation; Addressing the assets that are deemed to be in fair or poor condition as soon as possible; Addressing the road surface replacement needs as needed throughout the 25-year period; DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 16 DFA Infrastructure International Inc. Replacement of buildings as their life expectancy expires. 4.2 Asset Management Strategy No.2 The main components of this strategy include the following: A mix of rehabilitation and replacement of assets. Rehabilitation is considered for assets where the risk to the operation and/ or service is acceptable when compared to replacement; Addressing the assets that are deemed to be in fair or poor condition as soon as possible; Increasing the wastewater annual operations budget by $5000 to allow for CCTV inspections Rely on the inspections and annual needs identified by the water and wastewater system operator to guide the decisions on items to be addressed and budgets Providing an annual budget within the water capital program for water facilities rehabilitation as identified annually by the operation contractor. The amounts in 2022 dollars are $100,000 annually until 2028 then increasing to approximately $188,000 between 2029 and 2046. These annual amounts intended to provide ongoing funding to address condition issues as they arise. Providing a similar annual budget for wastewater of $50,000 over the 25-year period. Addressing all of the road surface needs in the 25- year period through an annual program over the next 25 years. The annual capital provision is approximately $410,000 starting in 2023. The current annual funding level is $200,000. This approach considers road rehabilitation as the primary activity with replacement as needed based on inspections. Major road replacement is expected to be deferred to future years due to the annual rehabilitation program; Providing an additional maintenance budget of $30,000 annually within the roads operating budget in lieu of major vehicle and equipment replacement given that most have exceeded their respective useful lives but are expected to remain in service for the next several years. Provisions for the following building inspections to assess rehabilitation needs: Public works garage and firehall - $35,000 in 2025 Arena - $40,000 in 2024 Docks - $20,000 in 2027 Museum - $30,000 in 2023 Log Buildings - $20,000 in 2024 Rehabilitation of buildings based on inspections and deferral of replacement. This includes undertaking the rehabilitation work recommended by in the respective inspection reports for the post office/ bank building and Burns Wharf Theatre. No provision for replacement of the landfill bins based on the assumption that the Township would no longer be responsible for the drop off depot under the new recycling regulations (O.Reg. 391/21) which transfers responsibility to packaging producers on April 1, 2025. DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 17 DFA Infrastructure International Inc. The type of activity, timing of projects, estimated costs, reserve contributions and balances and available debt capacity over the 25-year period are presented in Appendix G. 4.3 Risk Analysis A high level qualitative risk analysis was undertaken for the alternative strategies. The results are summarized in Appendix H. The risk assessment indicates that Alternative No.1 generally offers lower overall risk as assets would be replaced for the most part versus rehabilitation. However, the combination of replacement and rehabilitation activities included in Alternative No.2 also offers reduced risks to the service delivery. Therefore from a risk perspective both Alternatives No.1 and No.2 offer acceptable risks. Alternative No.2 is preferred due its potential lower cost over the 25-year period and deferral of costs while lowering the risk of asset failure 4.4 Preferred Strategy Table 4-1: Comparison of Alternative Strategies A qualitative comparison of both strategies was completed and Alternative Strategy No.2 was selected as the preferred asset management strategy due mainly to its lower cost over the 25-year period and ability to address asset performance issues annually. It lowers the risks of asset failure and related impacts to service levels. The comparison is summarized in Table 4-1. Criteria Alternative Strategy No.1 - Replacement Based Alternative Strategy No.2 - Rehabilitation Based Water System Costs (in 2022$) Within 25 years (2022-2046) $ 3,981,426 $ 3,981,426 Beyond 25 years (> 2046) $ 13,211,505 $ 13,211,505 Wastewater System Costs (in 2022$) Within 25 years (2022-2046) $ 6,360,750 $ 1,663,052 Beyond 25 years (> 2046) $ 6,148,090 $ 6,148,090 Tax Supported Asset Costs (in 2022$) Within 25 years (2022-2046) $ 33,258,000 $ 28,633,290 Beyond 25 years (> 2046) $ 6,904,017 $ 6,904,017 Total Asset Costs (in 2022$) Within 25 years (2022-2046) $ 43,600,176 $ 34,277,768 Beyond 25 years (> 2046) $ 26,263,613 $ 26,263,613 Higher 25- year costs Lower 25- year costs and deferral of costs to later years Affordability Less affordable More affordable Reliance on replacement activities to maintain performance service levels. These would be in specific years. Reliance on rehabilitation annually to maintain performance and levels of service - able to address asset performance issues sooner Increased maintenance budgets for wastewater sewer inspections and vehicel maintenance Safety Improves asset condition and therefore safety Improves asset condition and therefore safety Municipal Image Improves image as risks to service delivery are lowered Improves image as risks to service delivery is lowered Risk to Public Health & Environment Lower overall risk Risks are manageable. Allows flexibility over time to target priority assets based on inspections Levels of Service and Asset Performance DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 18 DFA Infrastructure International Inc. 5 Financing Strategy The cost of the Preferred Strategy over the 25-year period and the financing of these costs are presented in Appendix G. The financing strategy includes the following key components: Capital Projects would be financed through a combination of reserve funds and debt within the available debt limit. The annual debt limit projections are calculated using 25% of the projected in the revenue; The annual operating costs including debt repayment and reserve contributions would be financed through non-rate revenues and taxes (for tax supported services) or the water and wastewater rates (for the water and wastewater system costs); The financial assumptions noted in Appendix B; Making annual contributions to the respective capital reserves over the period to maintain a minimum balance (to the extent possible) of approximately 1.5 % of the asset value. This, along with the available debt capacity, is intended to provide the financial capacity to address any unforeseen asset needs; The minimum 1.5% target balance includes an allowance of 0.5% to address capital needs that may arise due to emergency events or asset performance impacts due to climate change. Building reserves to sufficient levels towards the end of the period so that the Township would be in a reasonable position to address the asset needs beyond 2046 (i.e. without overbuilding the reserves). Aggressively pursuing grant funding opportunities particularly those that may become available through Provincial and Federal funding programs, to reduce the burden on the rate payers; and maintain the objective of having a sustainable asset management plan. 5.1 User Rate Requirements The water system and wastewater system costs, including any asset related costs, are recovered through user rates. These are flat fees which are set by the Township each year for water and wastewater. The annual revenues required over the 25-year period through these rates are presented in Appendix G. Table 5-1 summarizes the short-term revenue requirements i.e. for the next 5 years (2023 to 2027) for the water system. Table 5-2 shows the short-term wastewater revenue requirements. DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 19 DFA Infrastructure International Inc. Table 5-1: Short-Term (2023-2027) Water Rate Revenue Requirements Increases in water rate revenue of approximately 6 % per year between 2023 and 2027 are required mainly to finance the rehabilitation of treatment assets on an annual basis and maintain the capital reserve at the target level. It is recommended that the Township pursue available grant funding to partially offset the cost of the replacement and lower the revenue required from the users though the water rates. Table 5-2: Short-Term Wastewater Rate Revenue Requirements A significant increase in wastewater rate revenue of approximately 12% in 2023 is required mainly to finance the repayment to the reserve for the forcemain project completed in 2012. The capital levy charges that offset this contribution will end in 2022. Revenue increases of approximately 2% are required from 2024 for treatment plant asset rehabilitation and maintaining the reserve at target levels. It is recommended that the Township pursue available grant funding to partially offset the cost of asset Water System Financial Projections Cost / Revenue Item 2023 2024 2025 2026 2027 Township 5-Year Capital Forecast - $ - $ - $ - $ - $ Asset Rehabilitation 103,000 $ 106,090 $ 109,273 $ 112,551 $ 115,927 $ Asset Replacement - $ - $ - $ - $ - $ Total Capital Requirements 103,000 $ 106,090 $ 109,273 $ 112,551 $ 115,927 $ Debt Financing - $ - $ - $ - $ - $ Capital Reserve Financing 13,000 $ 16,090 $ 19,273 $ 22,551 $ 25,927 $ Other Financing (Grants, third party, etc.) 90,000 $ 90,000 $ 90,000 $ 90,000 $ 90,000 $ Total Capital Financing 103,000 $ 106,090 $ 109,273 $ 112,551 $ 115,927 $ Operations & Maintenance 286,756 $ 292,441 $ 298,240 $ 304,154 $ 310,187 $ Transfers to Capital Reserves 38,000 $ 52,000 $ 67,000 $ 83,000 $ 100,000 $ Debt Repayment 71,000 $ 71,000 $ 71,000 $ 71,000 $ 71,000 $ Less Non-Rate Revenues 75,324 $ 75,450 $ 75,579 $ 75,711 $ 75,845 $ Revenue Requirements (from Users) 320,432 $ 339,990 $ 360,660 $ 382,443 $ 405,342 $ Annual Increase ($) 15,250 $ 19,559 $ 20,670 $ 21,783 $ 22,899 $ Annual Increase (%) 6% 6% 6% 6% 6% Waste Water System Financial Projections Cost / Revenue Item 2023 2024 2025 2026 2027 Township 5-Year Capital Forecast - $ - $ - $ - $ - $ Asset Rehabilitation 51,500 $ 53,045 $ 54,636 $ 56,275 $ 57,964 $ Asset Replacement - $ - $ - $ - $ - $ Total Capital Requirements 51,500 $ 53,045 $ 54,636 $ 56,275 $ 57,964 $ Debt Financing - $ - $ - $ - $ - $ Capital Reserve Financing 6,500 $ 8,045 $ 9,636 $ 11,275 $ 12,964 $ Other Financing (Grants, third party, etc.) 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ Total Capital Financing 51,500 $ 53,045 $ 54,636 $ 56,275 $ 57,964 $ Operations & Maintenance 128,935 $ 131,464 $ 134,043 $ 136,674 $ 139,357 $ Transfers to Capital Reserves 24,064 $ 24,064 $ 24,064 $ 24,064 $ 24,064 $ Debt Repayment - $ - $ - $ - $ - $ Less Non-Rate Revenues - $ - $ - $ - $ - $ Revenue Requirements (from Users) 152,999 $ 155,528 $ 158,107 $ 160,738 $ 163,422 $ Annual Increase ($) 16,445 $ 2,529 $ 2,579 $ 2,631 $ 2,683 $ Annual Increase (%) 12% 2% 2% 2% 2% DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 20 DFA Infrastructure International Inc. replacement and/ or rehabilitation projects over the period. 5.2 Tax Levy Requirements All services provided by the Township except for water and wastewater system costs, including any asset related costs, are recovered through the annual tax levy. The annual revenues required over the 25-year period through these rates are presented in Appendix G. Table 5-3 summarizes the short-term tax levy requirements i.e. for the next 5 years. Table 5-3: Short-Term Tax Levy Requirements Increases in the tax levy revenue of 5% are required between 2023 and 2027. These are due mainly to rehabilitation of buildings in poor condition, increasing the annual road rehabilitation allocation required to keep up with the annual needs and increasing the annual vehicle maintenance budget. The increases would also facilitate the reserve contributions required to achieve the annual target balances. It is also recommended that the Township pursue available grant funding to partially offset the cost of rehabilitating the critical buildings and road sections to lower the revenue required from the tax payers though the general tax levy. 6 Recommendations The following are the recommendations: 1. That the current Asset Management policy be updated by the Township prior to July 1, 2024; 2. That the levels of service targets presented in Section 3 be adopted by the Township; 3. That the preferred Asset Management Strategy presented in Section 4 be adopted by the Township; and 4. That the Financial Strategy presented in Section 5 be adopted by the Township to support the asset management strategy Tax Supported Services Financial Projections Cost / Revenue Item 2023 2024 2025 2026 2027 Township 5-Year Capital Forecast 365,650 $ 272,863 $ 420,649 $ 284,006 $ 225,461 $ Asset Rehabilitation 576,489 $ 593,784 $ 666,234 $ 629,945 $ 648,843 $ Asset Replacement 766,993 $ 8,897 $ 1,291,924 $ 55,430 $ - $ Total Capital Requirements 1,709,132 $ 875,544 $ 2,378,806 $ 969,381 $ 874,305 $ Debt Financing - $ - $ 2,233,245 $ - $ - $ Capital Reserve Financing 1,627,826 $ 794,238 $ 64,255 $ 888,076 $ 792,999 $ Other Financing (Grants, third party, etc.) 81,305 $ 81,305 $ 81,305 $ 81,305 $ 81,305 $ Total Capital Financing 1,709,132 $ 875,544 $ 2,378,805 $ 969,381 $ 874,305 $ Operations & Maintenance 4,018,597 $ 4,128,569 $ 4,210,740 $ 4,294,555 $ 4,380,046 $ Transfers to Capital Reserves 387,187 $ 488,082 $ 593,547 $ 511,985 $ 631,575 $ Debt Repayment 31,360 $ - $ - $ 193,902 $ 193,902 $ Less Non-Tax Revenues 1,411,644 $ 1,439,877 $ 1,468,675 $ 1,498,048 $ 1,528,009 $ Revenue Requirements (from Taxpayers) 3,025,499 $ 3,176,774 $ 3,335,613 $ 3,502,394 $ 3,677,513 $ Annual Increase ($) 144,071 $ 151,275 $ 158,839 $ 166,781 $ 175,120 $ Annual Increase (%) 5% 5% 5% 5% 5% DRAFT Township of Assiginack Asset Management Plan Final Report July 29, 2022 21 DFA Infrastructure International Inc. References 1. Building Together: A Guide for Municipal Asset Management Plans 2. Township of Assiginack 2021 and 2022 operating and capital budgets. 3. J.L. Richards, Building Condition Assessment Report, Township of Assiginack, 115 Arthur Street Manitowaning , ON, September 7, 2021 4. Castellan James & Partners Architects Inc. and K. Lang Engineering Ltd., Burns Wharf Theatre Study, July 21, 2016 5. Township of Assiginack 2019 and 2021 FIR 6. Township of Assiginack 2021 PSAB 3150 TCA information. 7. 2013 Asset Management Study. 8. Township of Assiginack Project Priorities 9. Statistics Canada 2021 Census Data for Assiginack