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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
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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
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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
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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
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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
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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
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Asset Management Plan
Final Report July 29, 2022
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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
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Asset Management Plan
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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
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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
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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.
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Asset Management Plan
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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;
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Asset Management Plan
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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.
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Asset Management Plan
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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
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Asset Management Plan
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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.
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Township of Assiginack
Asset Management Plan
Final Report July 29, 2022
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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%
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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%
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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