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i
fAsset
Management
Plan
Municipality of Bluewater
2024
i
This Asset Management Plan was prepared by:
Empowering your organization through advanced
asset management, budgeting & GIS solutions
i
Key Statistics
Replacement cost of
asset portfolio
$392.5 million
Replacement cost of
infrastructure per
household
$52,000
Percentage of assets in fair
or better condition
73%
Percentage of assets with
assessed condition data
56%
Annual capital
infrastructure deficit
$5.5 million
Recommended timeframe
for eliminating annual
infrastructure deficit
20 Years
Target reinvestment
rate
2.4%
Actual reinvestment
rate
1.0%
i
Table of Contents
Scope ..................................................................................................... 1
Findings .................................................................................................. 2
Recommendations .................................................................................... 3
1
Introduction & Context ..................................................................... 4
Bluewater Community Profile .............................................................. 5
An Overview of Asset Management ...................................................... 6
Key Concepts in Asset Management ..................................................... 9
Climate Change .............................................................................. 12
Ontario Regulation 588/17 ............................................................... 15
2
Scope and Methodology ................................................................. 17
Asset Categories Included in this AMP ................................................ 18
Deriving Replacement Costs ............................................................. 19
Estimated Useful Life and Service Life Remaining ................................. 20
Reinvestment Rate ......................................................................... 21
Deriving Asset Condition .................................................................. 22
3
Portfolio Overview ......................................................................... 23
Total Replacement Cost of Asset Portfolio ........................................... 24
Target vs Actual Reinvestment Rate .................................................. 25
Condition of Asset Portfolio .............................................................. 26
Forecasted Capital Requirements ...................................................... 28
4
Analysis of Tax-Funded Assets ........................................................ 29
Road Network ................................................................................ 30
Bridges & Culverts .......................................................................... 42
Storm Network ............................................................................... 51
Facilities ....................................................................................... 60
Land Improvements ........................................................................ 68
Fleet............................................................................................. 77
Machinery & Equipment ................................................................... 85
5
Analysis of Rate-Funded Assets ....................................................... 94
Sanitary Sewer Network .................................................................. 95
Water Network .............................................................................. 105
ii
6
Impacts of Growth ...................................................................... 116
Description of Growth Assumptions .................................................. 117
Impact of Growth on Lifecycle Activities ............................................ 119
7
Financial Strategy ........................................................................ 120
Financial Strategy Overview ............................................................ 121
Funding Objective .......................................................................... 124
Financial Profile: Tax Funded Assets ................................................. 125
Financial Profile: Rate Funded Assets ................................................ 128
Use of Debt .................................................................................. 131
Use of Reserves ............................................................................ 134
8
Appendices ............................................................................... 136
Appendix A: 10-Year Capital Requirements ................................................ 137
Appendix B: Level of Service Maps ........................................................... 141
Appendix C: Condition Assessment Guidelines ............................................ 189
1
Executive Summary
Municipal infrastructure provides the foundation for the economic, social, and
environmental health and growth of a community through the delivery of critical
services. The goal of asset management is to deliver an adequate level of service in
the most cost-effective manner. This involves the development and implementation
of asset management strategies and long-term financial planning.
Scope
This Asset Management Plan (AMP) identifies the current practices and strategies
that are in place to manage public infrastructure and makes recommendations
where they can be further refined. Through the implementation of sound asset
management strategies, the Municipality can ensure that public infrastructure is
managed to support the sustainable delivery of municipal services.
This AMP include the following asset categories:
Asset Categories
Road Network
Bridges & Culverts
Facilities
Water Network
Storm Network
Fleet
Machinery & Equipment
Sanitary Sewer Network
Land Improvements
2
Findings
The overall replacement cost of the asset categories included in this AMP totals
$392.5 million. 73% of all assets analysed in this AMP are in fair or better condition
and assessed condition data was available for 56% of assets. For the remaining
44% of assets, assessed condition data was unavailable, and asset age was used to
approximate condition - a data gap that persists in most municipalities. Generally,
age misstates the true condition of assets, making assessments essential to
accurate asset management planning, and a recurring recommendation in this AMP.
The development of a long-term, sustainable financial plan requires an analysis of
whole lifecycle costs. This AMP uses a combination of proactive lifecycle strategies
(paved road) and replacement only strategies (all other assets) to determine the
lowest cost option to maintain the current level of service.
To meet capital replacement and rehabilitation needs for existing infrastructure,
prevent infrastructure backlogs, and achieve long-term sustainability, the
Municipality's average annual capital requirement totals $9.6 million. Based on a
historical analysis of sustainable capital funding sources, the Municipality is
committing approximately $4.1 million towards capital projects or reserves per
year. As a result, there is currently an annual funding gap of $5.5 million.
It is important to note that this AMP represents a snapshot in time and is based on
the best available processes, data, and information at the Municipality. Strategic
asset management planning is an ongoing and dynamic process that requires
continuous improvement and dedicated resources.
With the development of this AMP the Municipality has
achieved compliance with O. Reg. 588/17 to the extent of the
requirements that must be completed by July 1, 2024. There
are additional requirements concerning proposed levels of
service and growth that must be met by July 1, 2025.
3
Recommendations
A financial strategy was developed to address the annual capital funding gap. The
following graphics show the annual tax/rate change required to eliminate the
Municipality's infrastructure deficit based on a 20-year plan for tax-funded assets,
and a 10-year plan for both rate-funded categories:
Recommendations to guide continuous refinement of the Municipality's asset
management program. These include:
-
Review data to update and maintain a complete and accurate dataset
-
Develop a condition assessment strategy with a regular schedule
-
Review and update lifecycle management strategies
-
Development and regularly review short- and long-term plans to meet capital
requirements
-
Measure current levels of service and identify sustainable proposed levels of
service for 2025 compliance
-
Implementation of asset management software
-
Update and adoption of critical documents (TCA policy, AM policy, reserve
funding strategy, etc.)
Tax-Funded
ASSETS
Average Annual Tax
Change
2.6%
Rate-Funded
WATER
Average Annual Rate
Change
1.2%
Rate-Funded
SANITARY
Average Annual Rate
Change
1.1%
4
Key Insights
1 Introduction & Context
- The goal of asset management is to minimize the lifecycle
costs of delivering infrastructure services, manage the
associated risks, while maximizing the value ratepayers
receive from the asset portfolio
- The Municipality's asset management policy provides clear
direction to staff on their roles and responsibilities regarding
asset management
- An asset management plan is a living document that should
be updated regularly to inform long-term planning
- Ontario Regulation 588/17 outlines several key milestone
and requirements for asset management plans in Ontario
between July 1, 2022, and 2025
5
Bluewater Community Profile1
Census
Characteristic
Municipality
of Bluewater
Huron County
Ontario
Population 2021
7,540
61,366
14,223,942
Population Change
2016-2021
5.7
3.5
5.8
Total Private Dwellings 4,882
29,455
5,929,250
Population Density
18.1/km2
18.1/km2
15.9/km2
Land Area
416.70 km2
3,398.28 km2
892,411.76 km2
The Municipality of Bluewater is a small Municipality of 7,540 (2021 Census) located
70 kilometres Northwest of London, Ontario. The Municipality is situated along the
shores of Lake Huron, within Huron County.
The Municipality of Bluewater was incorporated in 2001 via the amalgamation of the
former municipalities of Hay and Stanley, and the villages of Bayfield, Hensall, and
Zurich. Bluewater boasts 26 kilometres of Lake Huron shoreline along their western
boundary. The Municipality is home to plenty of picturesque bluffs and beaches,
such as Bayfield Pier Beach, Houston Heights Beach, Howard Street Beach, and Hay
Municipality Beach.
The Municipality provides the ideal mix of nature, agricultural industry, and quaint
villages such as Bayfield, Brucefield, Dashwood, Hensall, Varna, and Zurich. These
villages have a long history, with the Village of Bayfield being founded in 1832. The
village soon had a grist and lumber mill, and today the area is home to large
agricultural operations. Hensall, Ontario is the White Bean Capital of Canada. The
Municipality of Bluewater has several historic districts, such as the historic Main
Street of Bayfield.
The Municipality of Bluewater is nearby regional centres such as Grand Bend,
Exeter, and London. Bluewater provides a mix of small-town life, access to urban
amenities, and natural beauty, making the Municipality an excellent place for
residents to work, live, and play.
The Municipality has prioritized maintenance of its current infrastructure, allocating
resources to ensure the ongoing functionality and resilience of its assets. This
dedication highlights the Municipality's commitment to maintaining the
effectiveness and integrity of its essential infrastructure.
1 Statcan 2021 census
6
An Overview of Asset Management
Municipalities are responsible for managing and maintaining a broad portfolio of
infrastructure assets to deliver services to the community. The goal of asset
management is to minimize the lifecycle costs of delivering infrastructure services,
manage the associated risks, while maximizing the value ratepayers receive from
the asset portfolio.
The acquisition of capital assets accounts for only 10-20% of their total cost of
ownership. The remaining 80-90% derives from operations and maintenance. This
AMP focuses its analysis on the capital costs to maintain, rehabilitate and replace
existing municipal infrastructure assets.
These costs can span decades, requiring planning and foresight to ensure financial
responsibility is spread equitably across generations. An asset management plan is
critical to this planning, and an essential element of broader asset management
program. The industry-standard approach and sequence to developing a practical
asset management program begins with a Strategic Plan, followed by an Asset
Management Policy and an Asset Management Strategy, concluding with an Asset
Management Plan.
This industry standard, defined by the Institute of Asset Management (IAM),
emphasizes the alignment between the corporate strategic plan and various asset
management documents. The strategic plan has a direct, and cascading impact on
asset management planning and reporting.
Build
20%
Operate, Maintain, and Dispose
80%
Total Cost of Ownership
7
1.2.1
Asset Management Policy
An asset management policy represents a statement of the principles guiding the
Municipality's approach to asset management activities. It aligns with the
organizational strategic plan and provides clear direction to municipal staff on their
roles and responsibilities as part of the asset management program.
Municipality of Bluewater's "Strategic Asset Management Policy" was approved by
Council on June 3, 2019, in accordance with Ontario Regulation 588/17.
The goals and objectives of the policy is to:
-
Deliver a consistent framework for applying asset management throughout
the organization
-
Prioritize the need for existing and future assets to effectively and efficiently
provide services
-
Provide transparency and accountability
-
Demonstrate to stakeholders the legitimacy of decision-making processes by
integrating strategic plans, budgets, service levels, and risks
-
Support sustainability and economic development
-
Promote environmental stewardship
1.2.2
Asset Management Strategy
An asset management strategy outlines the translation of organizational objectives
into asset management objectives and provides a strategic overview of the
activities required to meet these objectives. It provides greater detail than the
policy on how the Municipality plans to achieve asset management objectives
through planned activities and decision-making criteria.
The Municipality's Strategic Asset Management Policy contains many of the key
components of an asset management strategy and may be expanded on in future
revisions or as part of a separate strategic document.
1.2.3
Asset Management Plan
The asset management plan (AMP) presents the outcomes of the Municipality's
asset management program and identifies the resource requirements needed to
achieve a defined level of service. The AMP typically includes the following content:
-
State of Infrastructure
-
Asset Management Strategies
-
Levels of Service
-
Financial Strategies
8
The AMP is a living document that should be updated regularly as additional asset
and financial data becomes available. This will allow the Municipality to re-evaluate
the state of infrastructure and identify how the organization's asset management
and financial strategies are progressing.
9
Key Concepts in Asset Management
Effective asset management integrates several key components, including lifecycle
management, risk management, and levels of service. These concepts are applied
throughout this asset management plan and are described below in greater detail.
1.3.1
Lifecycle Management Strategies
The condition or performance of most assets will deteriorate over time. This process
is affected by a range of factors including an asset's characteristics, location,
utilization, maintenance history and environment. Asset deterioration has a
negative effect on the ability of an asset to fulfill its intended function, and may be
characterized by increased cost, risk and even service disruption.
To ensure that municipal assets are performing as expected and meeting the needs
of customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
There are several field intervention activities that are available to extend the life of
an asset. These activities can be generally placed into one of three categories:
maintenance, rehabilitation, and replacement. The following table provides a
description of each type of activity and the general difference in cost.
Lifecycle
Activity
Description
Example
(Roads)
Cost
Maintenance
Activities that prevent defects
or deteriorations from
occurring
Crack Seal
$
Rehabilitation/
Renewal
Activities that rectify defects
or deficiencies that are
already present and may be
affecting asset performance
Re-surface
$$
Replacement/
Reconstruction
Asset end-of-life activities
that often involve the
complete replacement of
assets
Full
Reconstruction
$$$
Depending on initial lifecycle management strategies, asset performance can be
sustained through a combination of maintenance and rehabilitation, but at some
point, replacement is required. Understanding what effect these activities will have
on the lifecycle of an asset, and their cost, will enable staff to make better
recommendations.
10
The Municipality's approach to lifecycle management is described within each asset
category outlined in this AMP. Developing and implementing a proactive lifecycle
strategy will help staff to determine which activities to perform on an asset and
when they should be performed to maximize useful life at the lowest total cost of
ownership.
1.3.2
Risk Management Strategies
Municipalities generally take a 'worst-first' approach to infrastructure spending.
Rather than prioritizing assets based on their importance to service delivery, assets
in the worst condition are fixed first, regardless of their criticality. However, not all
assets are created equal. Some are more important than others, and their failure or
disrepair poses more risk to the community than that of others. For example, a
road with a high volume of traffic that provides access to critical services poses a
higher risk than a low volume rural road. These high-value assets should receive
funding before others.
By identifying the various impacts of asset failure and the likelihood that it will fail,
risk management strategies can identify critical assets, and determine where
maintenance efforts, and spending, should be focused.
This AMP includes a high-level evaluation of asset risk and criticality. Each asset has
been assigned a probability of failure score and consequence of failure score based
on available asset data. These risk scores can be used to prioritize maintenance,
rehabilitation, and replacement strategies for critical assets.
1.3.3
Levels of Service
A level of service (LOS) is a measure of what the Municipality is providing to the
community and the nature and quality of that service. Within each asset category in
this AMP, technical metrics and qualitative descriptions that measure both technical
and community levels of service have been established and measured as data is
available.
These measures include a combination of those that have been outlined in O. Reg.
588/17 in addition to performance measures identified by the Municipality as worth
measuring and evaluating. The Municipality measures the level of service provided
at two levels: Community Levels of Service, and Technical Levels of Service.
Community Levels of Service
Community levels of service are a simple, plain language description or measure of
the service that the community receives. For core asset categories (roads, bridges
& culverts, water, sanitary, and storm) the province, through O. Reg. 588/17, has
provided qualitative descriptions that are required to be included in this AMP. For
11
non-core asset categories, the Municipality has determined the qualitative
descriptions that will be used to determine the community level of service provided.
These descriptions can be found in the Levels of Service subsection within each
asset category.
Technical Levels of Service
Technical levels of service are a measure of key technical attributes of the service
being provided to the community. These include mostly quantitative measures and
tend to reflect the impact of the Municipality's asset management strategies on the
physical condition of assets or the quality/capacity of the services they provide.
For core asset categories (roads, bridges & culverts) the province, through O. Reg.
588/17, has provided technical metrics that are required to be included in this AMP.
For non-core asset categories, the Municipality has determined the technical
metrics that will be used to determine the technical level of service provided. These
metrics can be found in the Levels of Service subsection within each asset category.
Current and Proposed Levels of Service
This AMP focuses on measuring the current level of service provided to the
community. Once current levels of service have been measured, the Municipality
plans to establish proposed levels of service over a 10-year period, in accordance
with O. Reg. 588/17.
Proposed levels of service should be realistic and achievable within the timeframe
outlined by the Municipality. They should also be determined with consideration of a
variety of community expectations, fiscal capacity, regulatory requirements,
corporate goals and long-term sustainability. Once proposed levels of service have
been established, and prior to July 2025, the Municipality must identify a lifecycle
management and financial strategy which allows these targets to be achieved.
12
Climate Change
Climate change can cause severe impacts on human and natural systems around
the world. The effects of climate change include increasing temperatures, higher
levels of precipitation, droughts, and extreme weather events. In 2019, Canada's
Changing Climate Report (CCCR 2019) was released by Environment and Climate
Change Canada (ECCC).
The report revealed that between 1948 and 2016, the average temperature
increase across Canada was 1.7°C; moreover, during this period, Northern Canada
experienced a 2.3°C increase. The temperature increase in Canada has doubled
that of the global average. If emissions are not significantly reduced, the
temperature could increase by 6.3°C in Canada by the year 2100 compared to 2005
levels. Observed precipitation changes in Canada include an increase of
approximately 20% between 1948 and 2012. By the late 21st century, the
projected increase could reach an additional 24%. During the summer months,
some regions in Southern Canada are expected to experience periods of drought at
a higher rate. Extreme weather events and climate conditions are more common
across Canada. Recorded events include droughts, flooding, cold extremes, warm
extremes, wildfires, and record minimum arctic sea ice extent.
The changing climate poses a significant risk to the Canadian economy, society,
environment, and infrastructure. The impacts on infrastructure are often a result of
climate-related extremes such as droughts, floods, higher frequency of freeze-thaw
cycles, extended periods of high temperatures, high winds, and wildfires. Physical
infrastructure is vulnerable to damage and increased wear when exposed to these
extreme events and climate variabilities. Canadian Municipalities are faced with the
responsibility to protect their local economy, citizens, environment, and physical
assets.
1.4.1
Bluewater Climate Profile
The Municipality of Bluewater is situated in southwestern Ontario within the Huron
County. The Municipality is expected to experience notable effects of climate
change which include higher average annual temperatures, an increase in total
annual precipitation, and an increase in the frequency and severity of extreme
events. According to Climatedata.ca - a collaboration supported by Environment
and Climate Change Canada (ECCC) - the Municipality of Bluewater may experience
the following trends:
Higher Average Annual Temperature:
-
Between the years 1971 and 2000 the annual average temperature was 7.6
ºC
13
-
Under a high emissions scenario, the annual average temperatures are
projected to increase by 4.6 ºC by the year 2050 and over 6.4 ºC by the end
of the century.
Increase in Total Annual Precipitation:
-
Under a high emissions scenario, Bluewater is projected to experience an
12% increase in precipitation by the year 2051 and a 16% increase by the
end of the century.
Increase in Frequency of Extreme Weather Events:
-
It is expected that the frequency and severity of extreme weather events will
change.
-
In some areas, extreme weather events will occur with greater frequency and
severity than others especially those impacted by Great Lake winds.
1.4.2
Lake Huron
The Great Lakes are one of the largest sources of fresh water on earth, containing
21 percent of the world's surface freshwater. There are 35 million people living in
the Great Lakes watershed and Lake Huron is the second largest of the Great
Lakes. The area of Lake Huron Watershed is approximately 131,100 km. The
physical impacts of climate change are most noticeable from: flooding, extreme
weather events such as windstorms and tornados, and/or rising water levels
eroding shorelines and natural spaces. Erosion and flooding pose a threat to the
surrounding built infrastructure such as park assets, bridges, and roads.
Communities located in the Great Lakes region may experience more severe
windstorms or tornados due to climate change, causing damage to both the
natural and built environment.
Public health and safety depend on the stability and predictability of the ecosystem
in the Great Lakes watershed. The quality of water is threatened by anthropogenic
climate change due to blue-green algae blooms, soil erosion, and
agricultural, stormwater, and wastewater runoff. These phenomena put undue
stress on regional water filtering and treatment systems. The safety of the public is
threatened by the physical impacts of flooding such as flooding and erosion. In
some cases, homeowners located near the lakeshore are already at risk of losing
their homes.
14
1.4.3
Integrating Climate change and Asset
Management
Asset management practices aim to deliver sustainable service delivery - the
delivery of services to residents today without compromising the services and well-
being of future residents. Climate change threatens sustainable service delivery by
reducing the useful life of an asset and increasing the risk of asset failure. Desired
levels of service can be more difficult to achieve due to climate change impacts
such as flooding, high heat, drought, and more frequent and intense storms.
To achieve the sustainable delivery of services, climate change considerations
should be incorporated into asset management practices. The integration of asset
management and climate change adaptation observes industry best practices and
enables the development of a holistic approach to risk management.
15
Ontario Regulation 588/17
As part of the Infrastructure for Jobs and Prosperity Act, 2015, the Ontario
government introduced Regulation 588/17 - Asset Management Planning for
Municipal Infrastructure (O. Reg 588/17). Along with creating better performing
organizations, more liveable and sustainable communities, the regulation is a key,
mandated driver of asset management planning and reporting. It places substantial
emphasis on current and proposed levels of service and the lifecycle costs incurred
in delivering them.
The diagram below outlines key reporting requirements under O. Reg 588/17 and
the associated timelines.
Strategic Asset Management
Policy
Asset Management Plan for Core
Assets with the following
components:
1. Current levels of service
2. Inventory analysis
3. Lifecycle activities to
sustain LOS
4. Cost of lifecycle activities
5. Population and employment
forecasts
6. Discussion of growth
impacts
Asset Management Plan for All
Assets with the following
additional components:
1. Proposed levels of service
for next 10 years
2. Updated inventory analysis
3. Lifecycle management
strategy
4. Financial strategy and
addressing shortfalls
5. Discussion of how growth
assumptions impacted
lifecycle and financial
strategies
Asset Management Plan for Core and
Non-Core Assets (same components
as 2022) and Asset Management
Policy Update
2019
2024
2022
2025
16
1.5.1
O. Reg. 588/17 Compliance Review
The following table identifies the requirements outlined in Ontario Regulation
588/17 for municipalities to meet by July 1, 2024. Next to each requirement a page
or section reference is included in addition to any necessary commentary.
Requirement
O. Reg.
Section
AMP
Section
Reference
Status
Summary of assets in each
category
S.5(2), 3(i)
4.1.1 - 5.2.1
Complete
Replacement cost of assets in
each category
S.5(2), 3(ii)
4.1.1 - 5.2.1
Complete
Average age of assets in
each category
S.5(2), 3(iii)
4.1.3 - 5.2.3
Complete
Condition of assets in each
category
S.5(2), 3(iv)
4.1.2 - 5.2.2
Complete
Description of Municipality's
approach to assessing the
condition of assets in each
category
S.5(2), 3(v)
4.1.2 - 5.2.2
Complete
Current levels of service in
each category
S.5(2), 1(i-ii)
4.1.6 - 5.2.6
Complete
Current performance
measures in each category
S.5(2), 2
4.1.6 - 5.2.6
Complete
Lifecycle activities needed to
maintain current levels of
service for 10 years
S.5(2), 4
4.1.4 - 5.2.4
Complete
Costs of providing lifecycle
activities for 10 years
S.5(2), 4
Appendix A
Complete
Growth assumptions
S.5(2), 5(i-ii)
S.5(2), 6(i-vi)
6.1 - 6.2
Complete
17
Key Insights
2 Scope and Methodology
- This asset management plan includes 9 asset categories
- The source and recency of replacement costs impacts the
accuracy and reliability of asset portfolio valuation
- Accurate and reliable condition data helps to prevent
premature and costly rehabilitation or replacement and
ensures that lifecycle activities occur at the right time to
maximize asset value and useful life
18
Asset Categories Included in this AMP
This asset management plan for the Municipality of Bluewater is produced in
compliance with Ontario Regulation 588/17. The July 2024 deadline under the
regulation requires analysis of both core and non-core assets.
The AMP summarizes the state of the infrastructure for the Municipality's asset
portfolio, establishes current levels of service and the associated technical and
customer oriented key performance indicators (KPIs), outlines lifecycle strategies
for optimal asset management and performance, and provides financial strategies
to reach sustainability for the asset categories listed below.
Asset Category
Source of Funding
Road Network
Tax Levy
Bridges & Culverts
Storm Network
Facilities
Land Improvements
Fleet
Machinery & Equipment
Water Network
User Rates
Sanitary Sewer Network
19
Deriving Replacement Costs
There are a range of methods to determine the replacement cost of an asset, and
some are more accurate and reliable than others. This AMP relies on two
methodologies:
-
User-Defined Cost and Cost/Unit: Based on costs provided by municipal
staff which could include average costs from recent contracts; data from
engineering reports and assessments; staff estimates based on knowledge
and experience
-
Cost Inflation/CPI Tables: Historical cost of the asset is inflated based on
Consumer Price Index or Non-Residential Building Construction Price Index
User-defined costs based on reliable sources are a reasonably accurate and reliable
way to determine asset replacement costs. Cost inflation is typically used in the
absence of reliable replacement cost data. It is a reliable method for recently
purchased and/or constructed assets where the total cost is reflective of the actual
costs that the Municipality incurred. As assets age, and new products and
technologies become available, cost inflation becomes a less reliable method.
20
Estimated Useful Life and Service Life
Remaining
The estimated useful life (EUL) of an asset is the period over which the Municipality
expects the asset to be available for use and remain in service before requiring
replacement or disposal. The EUL for each asset in this AMP was assigned according
to the knowledge and expertise of municipal staff and supplemented by existing
industry standards when necessary.
By using an asset's in-service data and its EUL, the Municipality can determine the
service life remaining (SLR) for each asset. Using condition data and the asset's
SLR, the Municipality can more accurately forecast when it will require replacement.
The SLR is calculated as follows:
𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝐿𝑖𝑓𝑒 𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 (𝑆𝐿𝑅) = 𝐼𝑛 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝐷𝑎𝑡𝑒+ 𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑈𝑠𝑒𝑓𝑢𝑙 𝐿𝑖𝑓𝑒(𝐸𝑈𝐿) −𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑌𝑒𝑎𝑟
21
Reinvestment Rate
As assets age and deteriorate, they require additional investment to maintain a
state of good repair. The reinvestment of capital funds, through asset renewal or
replacement, is necessary to sustain an adequate level of service. The reinvestment
rate is a measurement of available or required funding relative to the total
replacement cost.
By comparing the actual vs. target reinvestment rate the Municipality can
determine the extent of any existing funding gap. The reinvestment rate is
calculated as follows:
𝑇𝑎𝑟𝑔𝑒𝑡 𝑅𝑒𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑅𝑎𝑡𝑒= 𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑚𝑒𝑛𝑡
𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑝𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡
𝐴𝑐𝑡𝑢𝑎𝑙 𝑅𝑒𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑅𝑎𝑡𝑒= 𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐹𝑢𝑛𝑑𝑖𝑛𝑔
𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑝𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡
22
Deriving Asset Condition
An incomplete or limited understanding of asset condition can mislead long-term
planning and decision-making. Accurate and reliable condition data helps to prevent
premature and costly rehabilitation or replacement and ensures that lifecycle
activities occur at the right time to maximize asset value and useful life.
A condition assessment rating system provides a standardized descriptive
framework that allows comparative benchmarking across the Municipality's asset
portfolio. The table below outlines the condition rating system used in this AMP to
determine asset condition. This rating system is aligned with the Canadian Core
Public Infrastructure Survey which is used to develop the Canadian Infrastructure
Report Card. When assessed condition data is not available, service life remaining is
used to approximate asset condition.
Condition
Description
Criteria
Service
Life
Remaining
(%)
Very Good
Fit for the
future
Well maintained, good condition, new
or recently rehabilitated
80-100
Good
Adequate for
now
Acceptable, generally approaching
mid-stage of expected service life
60-80
Fair
Requires
attention
Signs of deterioration, some
elements exhibit significant
deficiencies
40-60
Poor
Increasing
potential of
affecting
service
Approaching end of service life,
condition below standard, large
portion of system exhibits significant
deterioration
20-40
Very Poor
Unfit for
sustained
service
Near or beyond expected service life,
widespread signs of advanced
deterioration, some assets may be
unusable
0-20
The analysis in this AMP is based on assessed condition data only as available. In
the absence of assessed condition data, asset age is used as a proxy to determine
asset condition. Appendix C includes additional information on the role of asset
condition data and provides basic guidelines for the development of a condition
assessment program.
23
Key Insights
3 Portfolio Overview
- The total replacement cost of the Municipality's asset
portfolio is $392.5 million
- The Municipality's target re-investment rate is 2.4%, and
the actual re-investment rate is 1.0%, contributing to an
expanding infrastructure deficit
- 73% of all assets are in fair or better condition
- Average annual capital requirements total $9.6 million per
year across all assets
24
Total Replacement Cost of Asset
Portfolio
The asset categories analyzed in this AMP have a total replacement cost of $392.5
million based on inventory data from 2022. This total was determined based on a
combination of user-defined costs and historical cost inflation. This estimate reflects
replacement of historical assets with similar, not necessarily identical, assets
available for procurement today.
$92.8m
$92.5m
$62.5m
$61.3m
$50.9m
$15.1m
$12.9m
$3.0m
$1.6m
$0
$20m
$40m
$60m
$80m
$100m
Road Network
Water Network
Facilities
Bridges & Culverts
Sanitary Sewer Network
Storm Network
Fleet
Land Improvements
Machinery & Equipment
Current Replacement Cost
Total Current Replacement Cost: $392,480,258
25
Target vs Actual Reinvestment Rate
The graph below depicts funding gaps or surpluses by comparing target vs actual
reinvestment rates. To meet the long-term replacement needs, the Municipality
should be allocating approximately $9.6 million annually, for a target reinvestment
rate of 2.4%. Actual annual spending on infrastructure totals approximately $4.1
million, for an actual reinvestment rate of 1.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Target Reinvestment Rate & Actual Reinvestment Rate
Actual Reinvestment Rate
Target Reinvestment Rate
26
Condition of Asset Portfolio
The current condition of the assets is central to all asset management planning.
Collectively, 73% of assets in Bluewater are in fair or better condition. This
estimate relies on both age-based and field condition data.
$774k
$2.4m
$1.6m
$74k
$77k
$1.7m
$22.9m
$5.1m
$35.1m
$19.0m
$2.1m
$62.2m
$633k
$287k
$1.5m
$20.7m
$29.3m
$19.7m
$7.6m
$4.6m
$880k
$199k
$2.5m
$39.6m
$4.0m
$33.6m
$28.1m
$6.3m
$100k
$365k
$125k
$1.6m
$3.8m
$11.4m
$3.6m
$4.1m
$462k
$175k
$1.0m
$888k
$5.5m
$5.6m
$1.1m
0%
25%
50%
75%
100%
Road Network
Bridges &
Culverts
Storm Network
Facilities
Land
Improvements
Machinery &
Equipment
Fleet
Water Network
Sanitary Sewer
Network
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Very Poor,
$22,454,155,
6%
Poor,
$85,439,420,
22%
Fair,
$79,068,334,
20%
Good,
$170,841,677,
43%
Very Good,
$34,676,672,
9%
27
This AMP relies on assessed condition data for 56% of assets; for the remaining
portfolio, age is used as an approximation of condition. Assessed condition data is
invaluable in asset management planning as it reflects the true condition of the
asset and its ability to perform its functions. The table below identifies the source of
condition data used throughout this AMP.
Asset Category
Asset Segment
% of Assets
with Assessed
Condition
Source of Condition
Data
Road Network
All
95%
Internal & External
Assessments
Bridges & Culverts
All
100%
OSIM Report
Storm Network
All
0%
Age-Based
Facilities
All
100%
Building Condition
Assessments (FCI)
Land Improvements
All
100%
Internal Assessments
Fleet
All
0%
Age-based
Machinery &
Equipment
All
100%
Internal Assessments
Sanitary Sewer
Network
All
5%
Building Condition
Assessments
Water Network
All
0%
Age-based
28
Forecasted Capital Requirements
The development of a long-term capital forecast should include both asset rehabilitation and replacement
requirements. With the development of asset-specific lifecycle strategies that include the timing and cost of future
capital events, the Municipality can produce an accurate long-term capital forecast.
The following graph identifies capital requirements over the next 150 years. This projection is used as it ensures
that every asset has gone through one full iteration of replacement. The forecasted requirements are aggregated
into 5-year bins.
29
\
Key Insights
4 Analysis of Tax-Funded Assets
- Tax-funded assets are valued at $249.0 million
- 65% of tax-funded assets are in fair or better condition
- The average annual capital requirement to sustain the
current level of service for all assets is approximately $7.5
million
30
Road Network
The road network is a critical component of the provision of safe and efficient
transportation services and represents the highest value asset category in the
Municipality's asset portfolio. It includes all municipally owned and maintained
roadways in addition to supporting roadside infrastructure including sidewalks, and
streetlights.
4.1.1
Asset Inventory & Replacement Costs
The table below includes the quantity, unit of measure, total replacement cost, and
primary replacement cost method of each asset segment in the Municipality's road
network inventory.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC Method
Paved Roads
144.63
Kilometers
$88,683,000
User-defined
Sidewalks
17,930.20
Meters
$3,761,000
User-defined
Streetlights
658
Assets
$329,000
User-defined
Dirt Roads
7.60
Kilometers
$152,0002
User-defined
Unpaved Roads 212.79
Kilometers
$100,000,0003
User-defined
2 Though not planned for replacement, the Municipality's dirt roads have a current replacement value of
$152,000
3 Though not planned for replacement, the Municipality's unpaved roads have a current replacement
value of $100,000,000
Streetlights,
$328,640, 0%
Sidewalks,
$3,760,829, 4%
Paved Roads,
$88,682,519,
96%
Total Current Replacement Cost: $92,771,988
31
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
4.1.2
Asset Condition
The graphs below visually illustrate the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Municipality's road network continues to provide an acceptable
level of service, it should monitor the average condition of all assets. If the average
condition declines, staff should re-evaluate their lifecycle management strategy to
$445k
$329k
$35.0m
$97k
$19.4m
$333k
$32.2m
$1.4m
$2.1m
$1.5m
0%
25%
50%
75%
100%
Paved Roads
Sidewalks
Streetlights
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Very Poor,
$3,565,000, 4%
Poor,
$33,619,000,
36%
Fair,
$19,730,000,
21%
Good,
$35,084,000,
38%
Very Good,
$774,000, 1%
32
determine what combination of maintenance, rehabilitation, and replacement
activities is required to increase the overall condition of the roads.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Municipality's current approach:
-
The Municipality completed a Road Needs Study in 2019 in coordination with
B.M Ross. The Municipality has adopted a 5-year cycle for Roads Needs
Studies completed by external contractors
-
Streetlight Assessments are carried out annually by internal staff in
accordance with minimum maintenance standards.
4.1.3
Estimated Useful Life & Average Age
The Estimated Useful Life for road network assets has been assigned according to a
combination of established industry standards and staff knowledge. The Average
Age of each asset is based on the number of years each asset has been in-service.
Assessed condition may increase or decrease the average service life remaining.
21.0
35.8
2.3
20
50
20
0
10
20
30
40
50
60
Paved Roads
Sidewalks
Streetlights
Number of Years
Weighted Average Age
Weighted Average EUL
33
Each asset's Estimated Useful Life should be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
4.1.4
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. This process
is affected by a range of factors including an asset's characteristics, location,
utilization, maintenance history, and environment.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance
Routine maintenance activities include inspections, cleaning,
minor repairs (such as crack sealing and grading application of
maintenance gravel), and vegetation management.
Maintenance activities are performed according to the timelines
specified in the Minimum Maintenance Standards
Rehabilitation
Rehabilitation activities involve resurfacing, structural repairs or
base replacement, and upgrades to municipal cross-sections.
Rehabilitation programs are initiated annually, with the
municipality aiming to complete one reconstruction project and
one repaving project each year.
Asset prioritization is based on nearing the end of life and
condition ratings as outlined in the asset assessments.
However, prioritization may be adjusted based on economies of
scale for projects in the same location (e.g., replacing a culvert
crossing during road reconstruction).
Replacement
Condition data informs the budget for replacement
recommendations, with priority given to the assets in the worst
condition as noted in the report.
The following lifecycle strategies have been developed as a proactive approach to
managing the lifecycle of rural, urban, and semi-urban roads. Instead of allowing
the roads to deteriorate until replacement is required, strategic rehabilitation is
expected to extend the service life of roads at a lower total cost.
34
Rural Roads
Event Name
Event Class
Event Trigger
Crack Sealing
Maintenance
6.5 Condition
Pad & Pave
Rehabilitation
2 Condition
Full Reconstruction
Replacement
0 Condition
Urban Roads
Event Name
Event Class
Event Trigger
Patching
Maintenance
6.5 Condition
Mill & Pave
Rehabilitation
2 Condition
Mill & Pave II
Rehabilitation
2 Condition
Full Reconstruction
Replacement
0 Condition
35
Semi-Urban Roads
Event Name
Event Class
Event Trigger
Patching
Maintenance
6.5 Condition
Pad & Pave
Rehabilitation
2 Condition
Pad & Pave II
Rehabilitation
2 Condition
Full Reconstruction
Replacement
0 Condition
36
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Municipality should
allocate towards funding rehabilitation and replacement needs. The graph identifies
capital requirements over the next 60 years. This projection is used as it ensures
that every asset has gone through one full iteration of replacement.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix A.
$1.7m
$36.2m
$12.2m
$7.6m
$29.5m
$50.1m
$6.6m
$18.9m
$38.8m
$14.3m
$3.8m
$7.6m
$5.5m
$0
$10m
$20m
$30m
$40m
$50m
$60m
Backlog 2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
Forecasted Capital Replacements
Paved Roads
Sidewalks
Streetlights
Annual Requirement
Total
37
4.1.5
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2022 inventory data.
This is a high-level model developed for the purposes of this AMP and Municipality
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of the road network are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
Service Life Remaining (%)
Road Type (Social)
AADT (Health and Safety)
The identification of critical assets allows the Municipality to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, and condition assessment strategies.
38
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Municipality is currently facing:
Aging Infrastructure
Many road assets in the Municipality of Bluewater are nearing the end
of their useful lives. Staff estimate that around 45% of paved roads are
nearing the end of their useful lives.
Climate Change
An increase in the frequency and intensity of precipitation events can
result in flooding of sections of the road network. The drainage capacity
of the road network is not sufficient to withstand heavy water flow,
particularly on gravel roads. Further issues can arise due to flooding
and poor drainage including accelerated deterioration caused by
freeze/thaw cycles. To improve asset resiliency, Staff should identify
problem areas and improve drainage through enhanced lifecycle
strategies.
Infrastructure Re-Investment
The current level of financial reinvestment is not adequate to address
lifecycle requirements and maintain a good state of repair. The financial
strategy in this report addresses the extent of this underfunding.
4.1.6
Levels of Service
The following tables identify the Municipality's current level of service for the road
network. These metrics include the technical and community level of service
metrics that are required as part of O. Reg. 588/17 as well as any additional
performance measures that the Municipality has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the road network.
39
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description, which may
include maps, of the road
network in the Municipality
and its level of connectivity
See Appendix B
Quality
Description or images that
illustrate the different
levels of road class
pavement condition
The Municipality completed a Road
Management Study in 2019 in coordination
with B.M Ross and Associates Ltd. Every
road section received a surface condition
rating (1-10), adhering to the MTO's
guidelines for assessing road section
conditions.
(1-5) Road surface exhibits moderate to
significant deterioration and generally
requires renewal or full replacement within
1-5 years
(6-10) Road surface is in good condition or
has been recently re-surfaced. Renewal or
reconstruction is generally not required for
6-10+ years
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the road network.
Service
Attribute
Technical Metric
Current LOS
(2022)
Scope
Lane-km of arterial roads (MMS classes 1 and 2) per
land area (km/km2)
N/A
Lane-km of collector roads (MMS classes 3 and 4) per
land area (km/km2)
1.054
Lane-km of local roads (MMS classes 5 and 6) per
land area (km/km2)
0.694
Quality
Average pavement condition index for paved roads in
the Municipality
60
40
Service
Attribute
Technical Metric
Current LOS
(2022)
Average surface condition for unpaved roads in the
Municipality (e.g. excellent, good, fair, poor)
Fair
Performance Capital reinvestment rate
0.7%
4.1.7
Recommendations
Asset Inventory
-
It is highly recommended that the Municipality invest in obtaining software,
which serves as a central repository for its assets. Currently, the Municipality
does not have a centralized asset register, making proactive asset
management difficult.
-
The Municipality should begin taking steps to bring in all asset inventory
data, for the 2025 compliant AMP. For example, the Municipality owns
several signs, which have not been integrated into this AMP, due to a lack of
data.
Condition Assessment Strategies
-
As scheduled condition assessments are conducted, the Municipality should
allocate resources to updating and maintaining its asset data, as condition
assessments are completed
Lifecycle Management Strategies
-
Implement and continuously refine the identified lifecycle management
strategies for paved roads to realize potential cost avoidance and maintain a
high quality of road pavement condition.
-
Evaluate the efficacy of the Municipality's lifecycle management strategies at
regular intervals to determine the impact cost, condition, and risk. This could
be done by updating the condition assessment data whenever new data
becomes available and rerunning the capital projections and risk reports.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
41
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Municipality believes
to provide meaningful and reliable inputs into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
42
Bridges & Culverts
Bridges & culverts represent a critical portion of the transportation services
provided to the community. The Municipality is responsible for the maintenance of
all bridges & culverts located across municipal roads with the goal of keeping
structures in an adequate state of repair and minimizing service disruptions.
4.2.1
Asset Inventory & Replacement Costs
The table below includes the quantity, unit of measure, total replacement cost, and
primary replacement cost method of each asset segment in the Municipality's
bridges & culverts inventory.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Bridges
16
Assets
$32,086,000
User-defined
Culverts
62
Assets
$29,183,000
User-defined
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
Culverts,
$29,183,100,
48%
Bridges,
$32,086,250,
52%
Total Current Replacement Cost: $61,269,350
43
4.2.2
Asset Condition
The graphs below visually illustrate the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Municipality's bridges & culverts continue to provide an
acceptable level of service, the Municipality should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
$2.4m
$7.1m
$11.9m
$6.3m
$1.3m
$16.4m
$11.7m
$2.3m
$1.8m
0%
25%
50%
75%
100%
Bridges
Culverts
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Very Poor,
$4,117,000, 7%
Poor,
$28,133,000,
46%
Fair, $7,597,000,
12%
Good,
$18,984,000,
31%
Very Good,
$2,439,000, 4%
44
rehabilitation, and replacement activities is required to increase the overall
condition of the bridges and culverts.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Municipality's current approach:
-
Condition assessments of all culverts with a span greater than or equal to 3
meters are completed every 2 years in accordance with the Ontario Structure
Inspection Manual (OSIM). OSIM reports are completed by external
consultants.
-
Condition data plays a crucial role in budget allocation, allowing the
Municipality to prioritize projects based on asset condition and critical needs.
4.2.3
Estimated Useful Life & Average Age
The Estimated Useful Life for bridge & culvert assets has been assigned according
to a combination of established industry standards and staff knowledge. The
Average Age of each asset is based on the number of years each asset has been in-
service. Assessed condition may increase or decrease the average service life
remaining.
80.7
52.9
75
50
0
10
20
30
40
50
60
70
80
90
Bridges
Culverts
Number of Years
Weighted Average Age
Weighted Average EUL
45
Each asset's Estimated Useful Life should be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
4.2.4
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance,
Rehabilitation
and
Replacement
All lifecycle activities are driven by the results of mandated
structural inspections competed according to the Ontario
Structure Inspection Manual (OSIM).
Maintenance activities for bridges include cleaning, minor
repairs, and vegetation management. When identified through
OSIM inspections or regular patrols, these maintenance tasks
are promptly addressed to ensure structural integrity.
Recent rehabilitation efforts for bridges have focused on
activities such as deck repair and erosion protection.
Rehabilitation programs are typically initiated based on the
results of OSIM inspections to address identified issues and
maintain operational standards.
Asset replacement decisions are guided by criteria outlined in
OSIM inspection reports. Each bridge is assigned a priority score
based on its Bridge Condition Index (BCI) and risk assessment,
helping to determine the replacement frequency. Replacement
priorities are aligned with OSIM recommendations and consider
the impact on the overall road network infrastructure.
46
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Municipality should
allocate towards funding rehabilitation and replacement needs. The graph identifies
capital requirements over the next 80 years. This projection is used as it ensures
that every asset has gone through one full iteration of replacement.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix A.
$0
$6.5m
$4.1m
$349k
$3.5m
$6.0m
$6.2m
$270k
$12.4m
$1.6m
$5.3m
$9.8m
$3.0m
$349k
$3.5m
$6.0m
$14.2m
$0
$3m
$6m
$9m
$12m
$15m
Backlog 2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
2083-
2087
2088-
2092
2093-
2097
2098-
2102
Forecasted Capital Replacements
Bridges
Culverts
Annual Requirement
Total
47
4.2.5
Risk & Criticality
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2022 inventory data.
This is a high-level model developed for the purposes of this AMP and Municipality
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of bridges and culverts are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
Service Life Remaining (%)
Span/Diameter (Economic)
The identification of critical assets allows the Municipality to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, and condition assessment strategies.
48
4.2.6
Levels of Service
The following tables identify the Municipality's current level of service for bridges &
culverts. These metrics include the technical and community level of service metrics
that are required as part of O. Reg. 588/17 as well as any additional performance
measures that the Municipality has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by bridges & culverts.
Service
Attribute
Qualitative
Description
Current LOS (2022)
Scope
Description of the traffic
that is supported by
municipal bridges (e.g.
heavy transport fleet,
motor fleet, emergency
fleet, pedestrians,
cyclists, and farm
equipment)
Bridges & structural culverts are a key
component of the municipal transportation
network. The majority of bridges and
structural culverts have no load or
dimensional restrictions, with the
exception of 2 structures (B-21 & B-40)
having restrictions. Traffic that is
supported by municipal bridges &structural
culverts includes heavy transport fleet,
motor fleet, emergency fleet, pedestrians
and cyclists.
Refer to appendix B for a map of all
structures owned and managed by the
Municipality.
Quality
Description or images of
the condition of culverts
and how this would
affect use of the culverts
Every structure is given a condition rating
from 0-100.
Excellent: 90-100
Good: 70-89
Fair: 40-69
Poor: <40
49
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by bridges & culverts.
Service
Attribute
Technical Metric
Current
LOS (2022)
Scope
% of bridges in the Municipality with loading or
dimensional restrictions
5.9%4
Quality
Average bridge condition index value for bridges in the
Municipality
62
Average bridge condition index value for structural
culverts in the Municipality
56
Performance Capital reinvestment rate
0.6%
4.2.7
Recommendations
Asset Inventory
-
It is highly recommended that the Municipality invest in obtaining software,
which serves as a central repository for its assets. Currently, the Municipality
does not have a centralized asset register, making proactive asset
management difficult.
-
Continue to review and validate inventory data, assessed condition data and
replacement costs for all assets upon the completion of OSIM inspections
every 2 years.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
4 Currently, structures B-21 & B-40 have loading restrictions. This calculation is replacement cost
weighted.
50
Lifecycle Management Strategies
-
This AMP only includes capital costs associated with the reconstruction of
culverts. The Municipality should work towards identifying projected capital
rehabilitation and renewal costs for culverts and integrating these costs into
long-term planning.
Levels of Service
-
Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Municipality believe to
provide meaningful and reliable inputs into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
51
Storm Network
4.3.1
Asset Inventory & Replacement Cost
The table below includes the quantity, unit of measure, total replacement cost, and
primary replacement cost method of each asset segment in the Municipality's storm
network inventory.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Storm Mains
26,876
Meters
$15,131,000
Cost per unit
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
Storm Mains,
$15,130,565,
100%
Total Current Replacement Cost: $15,130,565
52
4.3.2
Asset Condition
The graphs below visually illustrate the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Municipality's storm network continues to provide an acceptable
level of service, the Municipality should monitor the average condition of all assets.
If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the storm network.
$1.6m
$2.1m
$4.6m
$6.3m
$462k
0%
25%
50%
75%
100%
Storm Mains
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Very Poor,
$462,000, 3%
Poor,
$6,324,000,
42%
Fair,
$4,617,000,
30%
Good,
$2,119,000,
14%
Very Good,
$1,608,000,
11%
53
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Municipality's current approach:
-
Internal inspections are performed where feasible, such as for catch basins
and stormwater management ponds, while underground infrastructure is
inspected by external contractors. Assessments primarily rely on visual
inspection methods.
-
Stormwater infrastructure, including SWM ponds and catch basins, undergo
annual inspections as per the municipality's CLI ECA.
4.3.3
Estimated Useful Life & Average Age
The Estimated Useful Life for storm network assets has been assigned according to
a combination of established industry standards and staff knowledge. The Average
Age of each asset is based on the number of years each asset has been in-service.
Assessed condition may increase or decrease the average service life remaining.
Each asset's Estimated Useful Life should be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
37.6
74
0
10
20
30
40
50
60
70
80
Storm Mains
Number of Years
Weighted Average Age
Weighted Average EUL
54
4.3.4
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance/
Rehabilitation
Maintenance activities for the storm network encompass
inspections, cleanouts, minor repairs, vegetation management,
and ditching. These activities are largely reactive, triggered by
issues identified during inspections or reported concerns from
the public. Certain tasks, such as annual catch basin cleanouts,
are performed on a scheduled basis to maintain operational
efficiency.
There are no rehabilitation activity cycles in place.
Replacement
Assets nearing their expected service life or requiring frequent
and costly repairs are prioritized for replacement. Additionally,
asset replacement may be coordinated proactively as part of
street reconstruction projects, where the overall infrastructure
lifecycle assists in determining optimal replacement schedules.
55
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Municipality should
allocate towards funding rehabilitation and replacement needs. The graph identifies
capital requirements over the next 75 years. This projection is used as it ensures
that every asset has gone through one full iteration of replacement.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix A.
$80k
$372k
$10k
$0
$0
$98k
$6.3m
$2.0m
$2.0m
$572k
$1.2m
$1.2m
$242k
$549k
$1.0m
$43k
$0
$1m
$2m
$3m
$4m
$5m
$6m
$7m
Backlog 2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
2083-
2087
2088-
2092
2093-
2097
Forecasted Capital Replacements
Storm Mains
Annual Requirement
Total
56
4.3.5
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2022 inventory data.
This is a high-level model developed for the purposes of this AMP and Municipality
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of the storm network are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
Service Life Remaining (%)
Diameter (Social)
The identification of critical assets allows the Municipality to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, and condition assessment strategies.
57
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Municipality is currently facing:
Asset Data Confidence
There is a lack of confidence in the available inventory data, particularly
due to unknown installation dates. To address the challenge of
unknown installation dates for certain assets, the municipality should
prioritize conducting detailed condition assessments and consulting
historical records where possible. This proactive approach will support
informed decision-making regarding maintenance, replacement, and
overall asset management strategies.
Infrastructure Design & Climate Change
Climate change poses a significant risk to the storm system
infrastructure, as older assets may not be designed to withstand more
frequent and intense 5-year storm events. This mismatch between
infrastructure capacity and climate-induced demands increases the
likelihood of flooding, drainage issues, and potential damage to
property and public safety.
4.3.6
Levels of Service
The following tables identify the Municipality's current level of service for the storm
network. These metrics include the technical and community level of service
metrics that the Municipality has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the storm network.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description, which may include
maps, of the user groups or
areas of the municipality that
are protected from flooding,
including the extent of
protection provided by the
municipal stormwater system
See Appendix B
58
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the storm network.
Service
Attribute
Technical Metric
Current
LOS (2022)
Scope
% of properties in municipality resilient to a 100-year
storm
05
% of the municipal stormwater management system
resilient to a 5-year storm
TBD6
Performance Capital reinvestment rate
0%
4.3.7
Recommendations
Asset Inventory
-
It is highly recommended that the Municipality invest in obtaining software,
which serves as a central repository for its assets. Currently, the Municipality
does not have a centralized asset register, making proactive asset
management difficult.
-
Currently, the Municipality's storm assets are pooled. It is recommended that
the Municipality allocate resources to componentize its storm assets (catch
basins, manholes, headwalls, etc.). As these different assets have varying
replacement costs, estimate useful lives, and other requirements, asset
management best practices dictate that to have accurate capital projections,
the Municipality should have greater asset granularity with its storm network
infrastructure.
Condition Assessment Strategies
-
The development of a comprehensive inventory should be accompanied by a
system-wide assessment of the condition of all assets in the storm network
through CCTV inspections.
5 The Municipality does not currently have data available to determine this technical metric. The rate of
properties that are expected to be resilient to a 100-year storm is expected to be low
6 The Municipality does not currently have data available to determine this technical metric. The
percentage of the stormwater system resilient to a 5-year storm is expected to be high
59
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Continue measuring current levels of service in accordance with the metrics
that the Municipality has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
60
Facilities
The Municipality of Bluewater owns and maintains several facilities that provide key
services to the community. These include:
-
General government facilities
-
Fire halls
-
Culture and recreational facilities
-
Public works depots and storage
4.4.1
Asset Inventory & Replacement Costs
The table below includes the quantity, unit of measure, total replacement cost, and
primary replacement cost method of each asset segment in the Municipality's
facilities inventory.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
General Government
3
Assets
$1,715,000
User-defined
Leased Facilities7
10
Assets
$15,598,000
User-defined
Protection
4
Assets
$6,690,000
User-defined
Recreation
10
Assets
$35,521,000
User-defined
Transportation
3
Assets
$2,975,000
User-defined
7 The Municipality has numerous lease agreements in place for various facilities. These facilities have a
combined cost of $15,598,000, which accounts for 25% of the total replacement cost.
General Government,
$1,715,000, 3%
Transportation,
$2,975,000, 5%
Protection,
$6,690,000,
10%
Leased
Facilities,
$15,598,000,
25%
Recreation,
$35,521,150,
57%
Total Current Replacement Cost: $62,499,150
61
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
4.4.2
Asset Condition
The graphs below visually illustrate the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Municipality's facilities continue to provide an acceptable level of
service, the Municipality should monitor the average condition of all assets. If the
average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation and
replacement activities is required to increase the overall condition of the facilities.
$1.5m
$15.5m
$6.7m
$35.5m
$3.0m
$100k
$175k
0%
25%
50%
75%
100%
General
Government
Leased Facilities
Protection
Recreation
Transportation
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Very Poor,
$175,000, 0%
Good,
$62,224,000,
100%
62
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Municipality's current approach:
-
All facilities received formal building condition assessments by Walter Fedy,
in 2022, and utilized a facility condition index score (FCI).
-
Daily inspections are conducted by internal staff using specific checklists are
conducted for facilities where staff work. Internal staff utilize an arena
checklist to assess buildings.
4.4.3
Estimated Useful Life & Average Age
The Estimated Useful Life for facility assets has been assigned according to a
combination of established industry standards and staff knowledge. The Average
Age of each asset is based on the number of years each asset has been in-service.
Assessed condition may increase or decrease the average service life remaining.
Each asset's Estimated Useful Life should be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
36.7
62.8
41.6
32.1
71.0
51
67
50
70
50
0
10
20
30
40
50
60
70
80
General
Government
Leased Facilities
Protection
Recreation
Transportation
Number of Years
Weighted Average Age
Weighted Average EUL
63
4.4.4
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration. The following table outlines the
Municipality's current lifecycle management strategy.
Activity
Type
Description of Current Strategy
Maintenance /
Rehabilitation
Maintenance activities for buildings include HVAC systems, fire
safety equipment, refrigeration needs, boilers, water heaters, and
general upkeep. Routine maintenance is performed weekly for
buildings where municipal staff work.
Maintenance is initiated by identifying staff-reported issues,
including safety or structural concerns, and promptly addressing
public concerns.
Rehabilitation efforts include replacements of roofs, windows,
doors, etc., as needed based on lifecycle considerations or
unexpected requirements arising from condition assessments.
Replacement
Decisions regarding building replacements hinge on factors such
as cost, ongoing maintenance needs, and budget approval. The
usage of the building also plays a pivotal role, with priority given
to facilities that are crucial to the community and those with high
utilization rates. This ensures that resources are allocated
effectively to maintain essential community infrastructure.
64
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital requirement represents the
average amount per year that the Municipality should allocate towards funding rehabilitation and replacement
needs. The graph identifies capital requirements over the next 75 years. This projection is used as it ensures that
every asset has gone through one full iteration of replacement.
The projected cost of lifecycle activities that will need to be undertaken over the next 10 years to maintain the
current level of service can be found in Appendix A.
$0
$0
$75k
$100k
$100k
$0
$0
$0
$0
$0
$22.3m
$0
$912k
$100k
$100k
$39.0m
$0
$10m
$20m
$30m
$40m
Backlog 2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
2083-
2087
2088-
2092
2093-
2097
Forecasted Capital Replacements
General Government
Leased Facilities
Protection
Recreation
Transportation
5-year Capital Requirement
Total
65
4.4.5
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2022 inventory data.
This is a high-level model developed for the purposes of this AMP and Municipality
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of facilities are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
Service Life Remaining (%)
The identification of critical assets allows the Municipality to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, and condition assessment strategies.
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Municipality is currently facing:
Capital Funding Strategies
Major capital rehabilitation projects for municipal buildings are entirely
dependant on the availability of grant funding opportunities. When
grants are not available, building rehabilitation projects may be
deferred. An annual capital funding strategy can reduce dependency on
grant funding and help prevent deferral of capital works.
66
Regulatory Compliance
Regulatory requirements are established to ensure the safety,
efficiency, and compliance of municipal facilities with legal standards
and best practices. Staff find it a continuous challenge to keep up with
regulatory requirements for its municipal buildings due to budget
challenges. To mitigate this risk, staff plan to prioritize efforts to
enhance compliance with regulatory standards applicable to municipal
buildings.
4.4.6
Levels of Service
The following tables identify the Municipality's current level of service for the
facilities. These metrics include the technical and community level of service
metrics that the Municipality has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by facilities.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description of the types of facility
assets that the Municipality
operates and maintains
Refer to section 4.4.1
Quality
Description of criteria for
rehabilitation and replacement
decisions and any related long-term
forecasts
Refer to section 4.4.4
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by facilities.
Service
Attribute
Technical Metric
Current
LOS (2022)
Scope
Average Condition Rating (FCI)
0.704 (Good)
67
Average Risk Rating
10.168
Performance Capital reinvestment Rate
0.9%
4.4.7
Recommendations
Asset Inventory
-
The Municipality should update its condition scores on a scheduled basis. The
building condition assessments which were completed in 2022 have projected
FCI scores for 2027 - the Municipality, at a minimum, should integrate these
projected scores in the coming years, within its asset register.
Condition Assessment Strategies
-
The Municipality should implement regular condition assessments for all
facilities to better inform short- and long-term capital requirements.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Continue measuring current levels of service in accordance with the metrics
that the Municipality has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
8 Refer to section 4.4.5
68
Land Improvements
The Municipality of Bluewater owns various land improvement assets including
parking lots, playground equipment, outdoor lighting, splash pads, along with other
parks and recreational equipment.
4.5.1
Asset Inventory & Replacement Costs
The table below includes the quantity, unit of measure, total replacement cost, and
primary replacement cost method of each asset segment in the Municipality's land
improvements inventory.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Parking Lots
5
Assets
$384,000
User-defined
Parks & Recreation
26
Assets
$2,574,000
User-defined
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
Parking Lots,
$383,500, 13%
Parks &
Recreation,
$2,574,250, 87%
Total Current Replacement Cost: $2,957,750
69
4.5.2
Asset Condition
The graphs below visually illustrate the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Municipality's land improvements continue to provide an
acceptable level of service, the Municipality should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the land improvements.
$74k
$8k
$626k
$880k
$215k
$150k
$161k
$845k
0%
25%
50%
75%
100%
Parking Lots
Parks &
Recreation
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Very Poor,
$1,006,000, 34%
Poor,
$365,000,
12%
Fair, $880,000,
30%
Good,
$633,000,
21%
Very Good,
$74,000, 3%
70
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Municipality's current approach:
-
Regular inspections are carried out according to Canadian Standards
Association (CSA) guidelines.
-
Currently, there is no formal ongoing assessment program in place for other
asset within the land improvements asset category.
-
The most recent assessment of land improvements and parks in Bluewater
was conducted as part of the Parks and Recreation Master Plan, completed in
2022, by Thinc Design.
4.5.3
Estimated Useful Life & Average Age
The Estimated Useful Life for land improvement assets has been assigned according
to a combination of established industry standards and staff knowledge. The
Average Age of each asset is based on the number of years each asset has been in-
service. Assessed condition may increase or decrease the average service life
remaining.
Each asset's Estimated Useful Life should be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
7.8
77.6
20
30
0
10
20
30
40
50
60
70
80
90
Parking Lots
Parks & Recreation
Number of Years
Weighted Average Age
Weighted Average EUL
71
4.5.4
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenanace,
Rehabilitation &
Replacement
Maintenance activities for land improvement assets include
grass cutting, tree trimming, arborist assessments for select
trees, and professional landscaping services. Major park
maintenance is performed seasonally by professional
landscapers. Municipality staff conduct weekly maintenance
activities across parks in the area.
Rehabilitation projects involve professional landscaping
services to enhance the aesthetic and functional aspects of the
area. Safety concerns serve as the primary driver for initiating
rehabilitation efforts.
Assets with significant damage posing potential harm to the
public are prioritized for replacement. This approach ensures
that critical safety issues are promptly addressed, maintaining
a safe environment for community use.
72
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Municipality should
allocate towards funding rehabilitation and replacement needs. The graph identifies
capital requirements over the next 35 years. This projection is used as it ensures
that every asset has gone through one full iteration of replacement.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix A.
$0
$1.4m
$700k
$323k
$45k
$1.5m
$848k
$943k
$0
$1m
$2m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
Forecasted Capital Replacements
Parking Lots
Parks & Recreation
Annual Requirement
Total
73
4.5.5
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2022 inventory data.
This is a high-level model developed for the purposes of this AMP and Municipality
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of land improvements are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
Service Life Remaining (%)
The identification of critical assets allows the Municipality to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, and condition assessment strategies.
74
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Municipality is currently facing:
Climate Change
Climate change and the rising frequency of extreme weather events has
accelerated asset deterioration. Staff have noticed an increased
frequency in damaged outdoor assets, requiring unexpected
replacement. These events make long-term planning difficult and can
result in a lower level of service.
Regulatory Compliance & Aging Infrastructure
Playground structures require safety compliance, monitored through
the CSA inspections. A concern for the Municipality is aging assets,
risking playground elements not meeting safety requirements. Although
this is not a concern currently, it may become critical over time if
playground assets are not managed proactively.
75
4.5.6
Levels of Service
The following tables identify the Municipality's current level of service for land
improvements. These metrics include the technical and community level of service
metrics that the Municipality has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by land improvements.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description of the types of land
improvement assets that the
Municipality operates and maintains
Refer to section 4.5.1
Quality
Description of criteria for
rehabilitation and replacement
decisions and any related long-term
forecasts
Refer to section 4.5.4
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by land improvements.
Service
Attribute
Technical Metric
Current
LOS (2022)
Scope
Average Condition Rating
39 (Poor)
Average Risk Rating
13.959
Performance Capital reinvestment Rate
0%
9 Refer to section 4.5.5
76
4.5.7
Recommendations
Asset Inventory
-
It is highly recommended that the Municipality invest in obtaining software,
which serves as a central repository for its assets. Currently, the Municipality
does not have a centralized asset register, making proactive asset
management difficult.
-
With numerous assets approaching their estimated useful lives, the
Municipality should gather ensure that replacement costs remain up to date.
-
The Municipality should allocate appropriate resources to improve various
attribute details (ex. in-service dates).
Condition Assessment Strategies
-
Identify condition assessment strategies for high value and high-risk assets.
-
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Continue measuring current levels of service in accordance with the metrics
that the Municipality has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
77
Fleet
Fleet allow staff to efficiently deliver municipal services and personnel. Municipal
fleet is used to support several service areas, including:
-
Transportation fleet including pick-up trucks, plows, loaders, and graders
-
Protection fleet for fire services
-
Various fleet to support the maintenance of the transportation network and
parks and recreational services
4.6.1
Asset Inventory & Replacement Costs
The table below includes the quantity, unit of measure, total replacement cost, and
primary replacement cost method of each asset segment in the Municipality's fleet
inventory.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Development Services
2
Assets
$112,000
User-defined
Parks & Recreation
20
Assets
$1,015,000
User-defined
Protection
12
Assets
$7,500,000
User-defined
Transportation
26
Assets
$4,224,000
User-defined
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
Development
Services,
$112,000, 1%
Parks &
Recreation,
$1,015,000, 8%
Transportation,
$4,224,000, 33%
Protection,
$7,500,000, 58%
Total Current Replacement Cost: $12,851,000
78
4.6.2
Asset Condition
The graphs below visually illustrate the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Municipality's fleet continue to provide an acceptable level of
service, the Municipality should monitor the average condition of all assets. If the
average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation and
replacement activities is required to increase the overall condition of the fleet.
$56k
$27k
$920k
$692k
$56k
$385k
$680k
$395k
$138k
$1.5m
$799k
$112k
$1.5m
$353k
$2.8m
$2.3m
0%
25%
50%
75%
100%
Development
Services
Parks &
Recreation
Protection
Transportation
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Very Poor,
$5,531,000,
43%
Poor,
$1,642,000,
13%
Fair,
$2,467,000,
19%
Good,
$1,516,000,
12%
Very Good,
$1,695,000,
13%
79
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Municipality's current approach:
-
Fleet undergo assessments at least every 5,000 km as part of their regular
service. These assessments are primarily conducted by internal staff and
include visual inspections for signs of wear and tear.
-
CVOR fleet and heavy equipment are inspected daily in accordance with
CVOR regulations. Internal staff primarily conduct these assessments,
focusing on visual inspections for operational integrity.
-
Protection fleet undergo annual safety inspections and annual pump tests
(for pumpers only) conducted by an external contractor. The annual safety
inspection results in either a pass, fail, or recommendations for
improvements. Certain replacements adhere to NFPA standards.
4.6.3
Estimated Useful Life & Average Age
The Estimated Useful Life for fleet assets has been assigned according to a
combination of established industry standards and staff knowledge. The Average
Age of each asset is based on the number of years each asset has been in-service.
Assessed condition may increase or decrease the average service life remaining.
Each asset's Estimated Useful Life should be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
1.5
7.0
14.1
8.7
10
12
24
13
0
5
10
15
20
25
30
Development Services Parks & Recreation
Protection
Transportation
Number of Years
Weighted Average Age
Weighted Average EUL
80
4.6.4
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration. The following table outlines the
Municipality's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance /
Rehabilitation
Routine maintenance for fleet includes inspections, tire rotations,
minor repairs, and oil changes. Other necessary maintenance
tasks are promptly addressed upon identification during
inspections or reported concerns from operators regarding safety
or mechanical issues.
Maintenance for protection fleet is scheduled based on kilometers
driven, time between oil changes, frequency of calls, and the
annual safety inspection.
Currently, there are no specific rehabilitation activities applied to
fleet. Rehabilitation is not performed on protection fleet due to
compliance constraints with NFPA standards dictating useful life.
Replacement
Replacement schedules for fleet are determined based on
condition data and the defined asset lifecycle. This information
directly informs budget considerations for fleet asset replacement.
Fleet nearing the end of their expected service life or requiring
frequent and costly repairs are prioritized for replacement to
ensure continued operational efficiency and safety.
Protection fleet assets are replaced when they reach the end of
their NFPA-defined life or when maintenance becomes impractical
or costly.
81
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Municipality should
allocate towards funding rehabilitation and replacement needs. The graph identifies
capital requirements over the next 30 years. This projection is used as it ensures
that every asset has gone through one full iteration of replacement.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix A.
$1.6m
$2.5m
$5.7m
$4.7m
$2.3m
$3.1m
$5.4m
$0
$1m
$2m
$3m
$4m
$5m
$6m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
Forecasted Capital Replacements
Development Services
Parks & Recreation
Protection
Transportation
Annual Requirement
Total
82
4.6.5
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2022 inventory data.
This is a high-level model developed for the purposes of this AMP and Municipality
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of fleet are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
Service Life Remaining (%)
Department (Social)
The identification of critical assets allows the Municipality to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, and condition assessment strategies.
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Municipality is currently facing:
Lifecycle Management Strategies
There is some concern that the lack of defined lifecycle management
strategy for fleet in the past resulted in failure to adhere to scheduled
replacements. Addressing these challenges is crucial to maintaining
optimal asset performance and minimizing lifecycle costs.
83
4.6.6
Levels of Service
The following tables identify the Municipality's current level of service for the fleet.
These metrics include the technical and community level of service metrics that the
Municipality has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by fleet assets.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description of the types of fleet
assets that the Municipality
operates and maintains
Refer to section 4.6.1
Quality
Description of criteria for
rehabilitation and replacement
decisions and any related long-term
forecasts
Refer to section 4.6.4
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by fleet assets.
Service
Attribute
Technical Metric
Current
LOS (2022)
Scope
Average Condition Rating
36 (Poor)
Average Risk Rating
15.4610
Performance Capital reinvestment Rate
5.5%
10 Refer to section 4.6.5
84
4.6.7
Recommendations
Asset Inventory
-
It is highly recommended that the Municipality invest in obtaining software,
which serves as a central repository for its assets. Currently, the Municipality
does not have a centralized asset register, making proactive asset
management difficult.
-
Gather accurate replacement costs and update on a regular basis to ensure
the accuracy of capital projections.
Condition Assessment Strategies
-
Identify condition assessment strategies for high value and high-risk fleet
assets.
-
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Continue measuring current levels of service in accordance with the metrics
that the Municipality has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
85
Machinery & Equipment
To maintain the high quality of public infrastructure and support the delivery of core
services, Municipality staff own and employ various types of machinery and
equipment. This includes:
-
Office equipment to support government services
-
Protection equipment to support the delivery of fire services
-
Public works equipment
Keeping machinery and equipment in an adequate state of repair is important to
maintain a high level of service.
4.7.1
Asset Inventory & Replacement Costs
The table below includes the quantity, unit of measure, total replacement cost, and
primary replacement cost method of each asset segment in the Municipality's
machinery and equipment inventory.
Segment
Components
Unit of
Measure
Replacement
Cost
Primary RC
Method
General Government
5
Assets
$190,000
User-defined
Parks & Recreation
1
Assets
$33,000
User-defined
Protection
15
Assets
$1,335,000
User-defined
Transportation
2
Assets
$17,000
User-defined
Transportation,
$17,000, 1%
Parks &
Recreation,
$33,000, 2% General
Government,
$190,000, 12%
Protection,
$1,334,776, 85%
Total Current Replacement Cost: $1,574,776
86
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
4.7.2
Asset Condition
The graphs below visually illustrate the average condition for each asset segment
on a very good to very poor scale.
$33k
$35k
$9k
$115k
$172k
$25k
$174k
$25k
$92k
$8k
$25k
$863k
0%
25%
50%
75%
100%
General
Government
Parks &
Recreation
Protection
Transportation
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Very Poor,
$888,000, 56%
Poor, $125,000,
8%
Fair, $199,000,
13%
Good, $287,000,
18%
Very Good,
$77,000, 5%
87
To ensure that the Municipality's machinery and equipment continues to provide an
acceptable level of service, the Municipality should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the machinery and equipment.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Municipality's current approach:
-
Daily pre-trip inspections are conducted as part of regular operations.
Assessments also occur within scheduled maintenance cycles, primarily
conducted by internal staff. Visual inspections focus on identifying notable
defects and signs of wear.
-
While a formal condition rating system is not currently in place, it is under
consideration for future implementation.
-
Personal Protective Equipment (PPE) undergoes annual evaluations for
condition and is repaired as necessary over its 10-year useful life. Internal
staff handle all evaluations. External contractors conduct SCBA bottle testing
every 5 years and annual flow testing for SCBA breathing apparatus, which
results in a pass/fail outcome.
88
4.7.3
Estimated Useful Life & Average Age
The Estimated Useful Life for machinery & equipment assets has been assigned
according to a combination of established industry standards and staff knowledge.
The Average Age of each asset is based on the number of years each asset has
been in-service. Assessed condition may increase or decrease the average service
life remaining.
Each asset's Estimated Useful Life should be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
2.9
18.0
9.1
65.5
12
20
14
15
0
10
20
30
40
50
60
70
General Government
Parks & Recreation
Protection
Transportation
Number of Years
Weighted Average Age
Weighted Average EUL
89
4.7.4
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance/
Rehabilitation
Routine maintenance for machinery and equipment includes
inspections, minor repairs, oil changes, and replacement of
consumables. Daily pre-trip inspections ensure immediate
safety and operational checks, while regular inspections are
conducted at defined intervals as part of ongoing maintenance
protocols.
SCBA equipment is cleaned after each use, while all PPE is sent
annually for cleaning and inspection. Maintenance is triggered
by use, such as responding to high-hazard calls that may
require immediate cleaning of PPE rather than waiting for the
annual cycle.
Rehabilitation activities for PPE and heavy equipment is typically
not performed as part of current practices.
Replacement
Asset replacement decisions are guided by reaching the defined
useful life in years. Assets nearing their expected service life or
experiencing frequent and costly repairs are prioritized for
replacement. This approach ensures efficient operational
performance and minimizes downtime associated with aging
equipment.
SCBA equipment is replaced if testing fails, or maintenance
costs become ineffective. PPE is replaced if compromised during
evaluations or operational use. Replacement decisions are
otherwise guided by NFPA-defined useful life spans.
90
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Municipality should
allocate towards funding rehabilitation and replacement needs. The graph identifies
capital requirements over the next 20 years. This projection is used as it ensures
that every asset has gone through one full iteration of replacement.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix A.
$0
$1.1m
$407k
$598k
$1.1m
$0
$1m
$2m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
Forecasted Capital Replacements
General Government
Parks & Recreation
Protection
Transportation
Annual Requirement
Total
91
4.7.5
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2022 inventory data.
This is a high-level model developed for the purposes of this AMP and Municipality
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of machinery and equipment are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
Service Life Remaining (%)
The identification of critical assets allows the Municipality to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, and condition assessment strategies.
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Municipality is currently facing:
Lifecycle Management Strategies
There is some concern that the lack of defined lifecycle management
strategy for machinery & equipment in the past resulted in failure to
adhere to scheduled replacements. Addressing these challenges is
crucial to maintaining optimal asset performance and minimizing
lifecycle costs
92
4.7.6
Levels of Service
The following tables identify the Municipality's current level of service for the
machinery and equipment. These metrics include the technical and community level
of service metrics that the Municipality has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by machinery & equipment assets.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description of the types of
machinery & equipment assets that
the Municipality operates and
maintains
Refer to section 4.7.1
Quality
Description of criteria for
rehabilitation and replacement
decisions and any related long-term
forecasts
Refer to section 4.7.4
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by machinery & equipment assets.
Service
Attribute
Technical Metric
Current
LOS (2022)
Scope
Average Condition Rating
31 (Poor)
Average Risk Rating
12.3411
Performance Capital reinvestment Rate
16.6%
11 Refer to section 4.6.5
93
4.7.7
Recommendations
Asset Inventory
-
It is highly recommended that the Municipality invest in obtaining software,
which serves as a central repository for its assets. Currently, the Municipality
does not have a centralized asset register, making proactive asset
management difficult.
-
Continue to gather accurate replacement costs and update on a regular basis
to ensure the accuracy of capital projections.
Condition Assessment Strategies
-
Identify condition assessment strategies for high value and high-risk
equipment assets.
-
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Continue measuring current levels of service in accordance with the metrics
that the Municipality has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
94
\
Key Insights
5 Analysis of Rate-Funded Assets
- Rate-funded assets are valued at $143.4 million
- 85% of rate-funded assets are in fair or better condition
- The average annual capital requirement to sustain the
current level of service for rate-funded assets is
approximately $2.1 million
95
Sanitary Sewer Network
The Municipality manages an extensive sanitary sewer network consisting of
various assets including:
-
Inspection chambers
-
Lagoons
-
Wells and pumping stations
-
Sanitary mains
5.1.1
Asset Inventory & Replacement Costs
The table below includes the quantity, unit of measure, total replacement cost, and
primary replacement cost method of each asset segment in the Municipality's
sanitary sewer network inventory.
Segment
Components
Unit of
Measure
Replacement
Cost
Primary RC
Method
Inspection Chambers
1
Assets
$235,000
User-defined
Lagoons
98
Assets
$13,273,000
User-defined
Pumping Stations
72
Assets
$3,445,000
User-defined
Sanitary Mains
50,390.54
Meters
$32,759,000
Cost per unit
Wells & Pumping
Stations
6
Assets
$1,169,000
User-defined
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
Inspection
Chambers,
$235,317, 1%
Wells & Pumping Stations,
$1,169,375, 2% Pumping Stations,
$3,444,916, 7%
Lagoons,
$13,273,432,
26%
Sanitary Mains,
$32,759,234,
64%
Total Current Replacement Cost: $50,882,275
96
5.1.2
Asset Condition
The graphs below visually illustrate the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Municipality's sanitary sewer network continues to provide an
acceptable level of service, the Municipality should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the sanitary sewer network.
Very Poor,
$1,124,000, 2%
Poor,
$11,366,000,
22%
Fair, $3,965,000,
8%
Good,
$29,334,000,
58%
Very Good,
$5,092,000, 10%
97
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Municipality's current approach:
-
Assessments are conducted on an as-needed basis, triggered by encountered
concerns or in preparation for road reconstruction projects. These
assessments are typically performed by third-party contractors. Supporting
infrastructure assessments are conducted by the Municipality's contracted
water/wastewater operator, involving visual inspections for defects and
utilizing checklists for larger infrastructure components.
5.1.3
Estimated Useful Life & Average Age
The Estimated Useful Life for sanitary sewer network assets has been assigned
according to a combination of established industry standards and staff knowledge.
The Average Age of each asset is based on the number of years each asset has
been in-service. Assessed condition may increase or decrease the average service
life remaining.
Each asset's Estimated Useful Life should be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
17.0
16.9
22.8
29.2
29.8
50
66
53
75
50
0
10
20
30
40
50
60
70
80
Inspection
Chambers
Lagoons
Pumping Stations
Sanitary Mains
Wells & Pumping
Stations
Number of Years
Weighted Average Age
Weighted Average EUL
98
5.1.4
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance/
Rehabilitation
Routine maintenance activities include inspections, flushing or
cleaning, and minor repairs. Maintenance actions are taken as
issues are identified during inspections or through reported
concerns.
Rehabilitation activities for wastewater systems may involve
structural repairs and upgrading outdated systems. The
consideration of relining for future rehabilitation is under review
but has not been implemented to date.
Replacement
Replacement decisions are made when the condition of an asset
has significantly deteriorated, and rehabilitation is no longer
cost-effective. Replacement may also coincide with other
infrastructure projects in the same geographic area, such as
road reconstruction. Assets nearing their expected service life or
experiencing frequent and costly repairs are prioritized for
replacement. Additionally, assets nearing the end of their useful
life may be replaced as part of planned road reconstruction
projects, ensuring efficient resource allocation and
infrastructure improvement.
99
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital requirement represents the
average amount per year that the Municipality should allocate towards funding rehabilitation and replacement
needs. The graph identifies capital requirements over the next 95 years. This projection is used as it ensures that
every asset has gone through one full iteration of replacement.
The projected cost of lifecycle activities that will need to be undertaken over the next 10 years to maintain the
current level of service can be found in Appendix A.
$738k
$302k
$477k
$846k
$1.2m
$656k
$13.2m
$1.2m
$1.5m
$2.3m
$3.4m
$21.6m
$3.8m
$2.4m
$2.2m
$1.2m
$2.5m
$928k
$2.1m
$2.3m
$0
$5m
$10m
$15m
$20m
$25m
Backlog 2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
2083-
2087
2088-
2092
2093-
2097
2098-
2102
2103-
2107
2108-
2112
2113-
2117
Forecasted Capital Replacements
Inspection Chambers
Lagoons
Pumping Stations
Sanitary Mains
Wells & Pumping Stations
Annual Requirement
Total
100
5.1.5
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2022 inventory data.
This is a high-level model developed for the purposes of this AMP and Municipality
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of the sanitary sewer network are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
Service Life Remaining (%)
Diameter (Social)
The identification of critical assets allows the Municipality to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, and condition assessment strategies.
101
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Municipality is currently facing:
Climate Change & Extreme Weather Events
Climate change and extreme weather events pose potential risks to
sanitary infrastructure, potentially increasing inflow and infiltration
rates and necessitating heightened treatment requirements. Moreover,
elevated temperatures can diminish the efficiency of sewage treatment
processes. In response to these challenges, staff are striving to adopt a
proactive approach to manage inflow and infiltration through enhanced
flow monitoring. Implementing a regular flow monitoring program will
enable early detection of inflow and infiltration issues, equipping staff
with valuable data to support lifecycle planning.
5.1.6
Levels of Service
The following tables identify the Municipality's current level of service for the
sanitary sewer network. These metrics include the technical and community level of
service metrics that the Municipality has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the sanitary sewer network.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description, which may include
maps, of the user groups or
areas of the municipality that
are connected to the municipal
wastewater system
See Appendix B
Reliability
Description of how combined
sewers in the municipal
wastewater system are
designed with overflow
structures in place which allow
overflow during storm events to
prevent backups into homes
N/A
102
Description of the frequency
and volume of overflows in
combined sewers in the
municipal wastewater system
that occur in habitable areas or
beaches
N/A
Description of how stormwater
can get into sanitary sewers in
the municipal wastewater
system, causing sewage to
overflow into streets or backup
into homes
Stormwater can enter into sanitary
sewers due to cracks in sanitary
mains or through indirect
connections (e.g. weeping tiles). In
the case of heavy rainfall events,
sanitary sewers may experience a
volume of water and sewage that
exceeds its designed capacity. In
some cases, this can cause water
and/or sewage to overflow backup
into homes. The disconnection of
weeping tiles from sanitary mains
and the use of sump pumps and
pits directing storm water to the
storm drain system can help to
reduce the chance of this occurring.
Description of how sanitary
sewers in the municipal
wastewater system are
designed to be resilient to
stormwater infiltration
Sanitary sewers manholes are
sealed. There is also a municpal by-
law to ensure that there are no
illegal connections from private
downspouts and sump pumps.
Furthermore, there are inspections
in known problem areas.
Description of the effluent that
is discharged from sewage
treatment plants in the
municipal wastewater system
Effluent refers to water pollution
that is discharged from a
wastewater treatment plant, and
may include suspended solids, total
phosphorous and biological oxygen
demand. The Environmental
Compliance Approval (ECA)
identifies the effluent criteria for
municipal wastewater treatment
plants.
103
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the sanitary sewer network.
Service
Attribute
Technical Metric
Current
LOS (2022)
Scope
% of properties connected to the municipal wastewater
system
38%12
Reliability
# of events per year where combined sewer flow in the
municipal wastewater system exceeds system capacity
compared to the total number of properties connected
to the municipal wastewater system
N/A
# of connection-days per year having wastewater
backups compared to the total number of properties
connected to the municipal wastewater system
0
# of effluent violations per year due to wastewater
discharge compared to the total number of properties
connected to the municipal wastewater system
2
Performance Capital reinvestment rate
1.2%
12 1847 active wastewater accounts. 2021 census data indicates that there are 4882 private dwellings.
104
5.1.7
Recommendations
Asset Inventory
-
It is highly recommended that the Municipality invest in obtaining software,
which serves as a central repository for its assets. Currently, the Municipality
does not have a centralized asset register, making proactive asset
management difficult.
-
Continue to gather accurate replacement costs and update on a regular basis
to ensure the accuracy of capital projections.
Condition Assessment Strategies
-
Identify condition assessment strategies for high value and high-risk assets.
-
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Continue measuring current levels of service in accordance with the metrics
that the Municipality has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
105
Water Network
The Municipality manages an extensive water network consisting of various assets
including:
-
Booster stations, pumphouses, wells, and reservoirs
-
Water equipment such as valves and chambers
-
Water towers
-
Water treatment plant
-
Watermains
5.2.1
Asset Inventory & Replacement Costs
The table below includes the quantity, unit of measure, total replacement cost, and
primary replacement cost method of each asset segment in the Municipality's water
network inventory.
Segment
Components
Unit of
Measure
Replacement
Cost
Primary RC
Method
Booster Station
11
Assets
$684,000
User-defined
Pumphouses &
Reservoirs
8
Assets
$1,407,000
User-defined
Valves & Chambers
9
Assets
$501,000
User-defined
Water Towers
13
Assets
$6,071,000
User-defined
Watermains
130,767
Meters
$83,435,000
Cost per unit
Wells
1
Assets
$245,000
User-defined
WTP
1
Assets
$200,000
User-defined
106
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
WTP, $200,000,
0%
Wells, $245,000,
0%
Valves &
Chambers,
$501,033, 1%
Booster Station, $684,132,
1%
Pumphouses &
Reservoirs,
$1,407,384, 1%
Water Towers,
$6,071,073, 7%
Watermains,
$83,434,782,
90%
Total Current Replacement Cost: $92,543,404
107
5.2.2
Asset Condition
The graphs below visually illustrate the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Municipality's water network continues to provide an acceptable
level of service, the Municipality should monitor the average condition of all assets.
If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
$87k
$3.0m
$19.6m
$200k
$19k
$320k
$42k
$531k
$19.5m
$245k
$275k
$372k
$17k
$39.0m
$149k
$46k
$47k
$3.5m
$240k
$1.0m
$2.4m
$1.9m
0%
25%
50%
75%
100%
Booster Station
Pumphouses &
Reservoirs
Valves &
Chambers
Water Towers
Watermains
Wells
WTP
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Very Poor,
$5,586,000, 6%
Poor,
$3,766,000, 4%
Fair,
$39,614,000,
43%
Good,
$20,660,000,
22%
Very Good,
$22,918,000,
25%
108
rehabilitation and replacement activities is required to increase the overall condition
of the water network.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Municipality's current approach:
-
Supporting infrastructure like fire hydrants are assessed annually by the
Municipality's contracted third-party water operator. These inspections
adhere to requirements outlined in the Safe Drinking Water Act.
5.2.3
Estimated Useful Life & Average Age
The Estimated Useful Life for water network assets has been assigned according to
a combination of established industry standards and staff knowledge. The Average
Age of each asset is based on the number of years each asset has been in-service.
Assessed condition may increase or decrease the average service life remaining.
Each asset's Estimated Useful Life should be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
31.0
42.2
27.5
36.9
26.8
16.0
0.0
50
56
73
72
75
50
50
0
10
20
30
40
50
60
70
80
Booster
Station
Pumphouses
& Reservoirs
Valves &
Chambers
Water
Towers
Watermains
Wells
WTP
Number of Years
Weighted Average Age
Weighted Average EUL
109
5.2.4
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance/
Rehabilitation
Routine maintenance activities for water network assets include
inspections, flushing, minor repairs, valve turning, and other
necessary tasks. Maintenance actions are prompted by
inspections or identified issues within the system.
Replacement
Replacement decisions for water network assets are made when
the condition of an asset has significantly deteriorated, and
rehabilitation is no longer cost-effective. Additionally,
replacements may be considered when adjacent infrastructure
requires replacement or when assets near the end of their
useful life.
110
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Municipality should
allocate towards funding rehabilitation and replacement needs. The graph identifies
capital requirements over the next 75 years. This projection is used as it ensures
that every asset has gone through one full iteration of replacement.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix A.
$368k
$3.9m
$192k
$1.2m
$166k
$3.2m
$1.3m
$2.0m
$589k
$37.3m
$12.9m
$3.8m
$3.5m
$14.0m
$2.3m
$8.3m
$0
$10m
$20m
$30m
$40m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
2083-
2087
2088-
2092
2093-
2097
Forecasted Capital Replacements
Booster Station
Pumphouses & Reservoirs
Valves & Chambers
Water Towers
Watermains
Wells
WTP
Annual Requirement
Total
111
5.2.5
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2022 inventory data.
This is a high-level model developed for the purposes of this AMP and Municipality
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of the water network are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
Service Life Remaining (%)
Diameter (Social)
The identification of critical assets allows the Municipality to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, and condition assessment strategies.
112
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Municipality is currently facing:
Growth
The Municipality is expected to experience growth. Population and
employment growth will increase the demand on municipal services and
potentially decrease the lifecycle of certain assets. As the population
continues to grow, the Municipality must prioritize expanding its
capacity, particularly those in Lakeshore and Bayfield, to serve the
larger population. Staff are working towards developing a
comprehensive long-term capital plan with considerations for growth.
Climate Change & Extreme Weather Events
Changes in precipitation patterns, increased frequency of extreme
weather events, and rising temperatures could potentially disrupt or
diminish the reliability and availability of water from the Varna Well
system. This risk underscores the importance of proactive monitoring,
resilience planning, and infrastructure adaptations to mitigate potential
impacts on water supply reliability and community resilience.
Capital Funding Strategies
Current water rates do not achieve a full cost recovery model and
highlights the necessity for grant support to fund large-scale projects.
When grants are not available, major water network projects may be
deferred. An annual capital funding strategy can reduce dependency on
grant funding and help prevent deferral of capital works.
113
5.2.6
Levels of Service
The following tables identify the Municipality's current level of service for the water
network. These metrics include the technical and community level of service
metrics that the Municipality has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the water network.
Service
Attribute
Qualitative
Description
Current LOS (2022)
Scope
Description, which may
include maps, of the
user groups or areas of
the municipality that are
connected to the
municipal water system
See Appendix B
Description, which may
include maps, of the
user groups or areas of
the municipality that
have fire flow
See Appendix B
Reliability
Description of boil water
advisories and service
interruptions
There were no water boil advisories for the
Municipality in 2022
114
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the water network.
Service
Attribute
Technical Metric
Current
LOS (2022)
Scope
% of properties connected to the municipal water
system
73%13
% of properties where fire flow is available
98%14
Reliability
# of connection-days per year where a boil water
advisory notice is in place compared to the total
number of properties connected to the municipal water
system
0
# of connection-days per year where water is not
available due to water main breaks compared to the
total number of properties connected to the municipal
water system
8:3569
Performance Capital reinvestment rate
0.9%
13 3569 properties receive water services. As per 2021 census, there are 4882 private dwellings.
14 3512 of 3569 properties.
115
5.2.7
Recommendations
Asset Inventory
-
It is highly recommended that the Municipality invest in obtaining software,
which serves as a central repository for its assets. Currently, the Municipality
does not have a centralized asset register, making proactive asset
management difficult.
-
Continue to gather accurate replacement costs and update on a regular basis
to ensure the accuracy of capital projections.
Condition Assessment Strategies
-
Identify condition assessment strategies for high value and high-risk assets.
-
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Continue measuring current levels of service in accordance with the metrics
that the Municipality has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
116
Key Insights
6 Impacts of Growth
- Understanding the key drivers of growth and demand will
allow the Municipality to more effectively plan for new
infrastructure, and the upgrade or disposal of existing
infrastructure
- Low-to-moderate population growth is expected over the
next 20 years
- The costs of growth should be considered in long-term
funding strategies that are designed to maintain the current
level of service
117
Description of Growth Assumptions
The demand for infrastructure and services will change over time based on a
combination of internal and external factors. Understanding the key drivers of
growth and demand will allow the Municipality to plan for new infrastructure more
effectively, and the upgrade or disposal of existing infrastructure. Increases or
decreases in demand can affect what assets are needed and what level of service
meets the needs of the community.
6.1.1
Municipality of Bluewater Official Plan
(Consolidated March 2024)
The Bluewater Official Plan was adopted on July 4, 2005, and consolidated in April
2024, with a planning horizon extending to the year 2026. The purpose of the plan
is to define the vision of the community, identify the resources, capabilities, and
constraints of the land, and enhance environmental stewardship.
The Official Plan aims to create a planning environment addressing community
needs and aspirations, build a future vision with community involvement, promote
compatible land use, and ensure future development aligns with the plan's vision,
goals, and policies while implementing provincial legislation.
The primary objectives in terms of infrastructure focus on reducing deficiencies and
improving municipal services to maintain community quality, safety, and stability.
This involves creating new services as needed, ensuring efficient and cost-effective
locations for infrastructure, establishing a road system for safe and efficient
movement, coordinating long-range land use planning with infrastructure planning,
and protecting infrastructure facilities from incompatible land uses.
Growth and development are directed primarily to the settlement areas of Bayfield,
Hensall, and Zurich, which are equipped with full municipal services. The plan
promotes infilling, redevelopment, and conversions to use land and services
efficiently. New subdivisions and multi-unit developments are permitted only if they
connect to full municipal sewage and water services. Additionally, comprehensive
stormwater management and improvements in municipal services will be pursued
to maintain the community's quality, safety, and stability.
118
6.1.2
County of Huron Official Plan (Consolidated
October 2021)
The County is responsible for the allocation of growth to the local municipalities,
which is based on a combination of local factors including: local planning policy;
historic and recent growth trends; market demand; and the capacity to
accommodate growth from land supply and servicing perspectives.
The following table outlines the population and employment forecasts allocated to
Bluewater.
Year
Population
Employment
2016 (Actual)
7,136
4,660
2021 (Projected)
7,209
4,707
2021 (Actual)
7,540
N/A
2026
7,293
4,762
2031
7,353
4,801
2036
7,353
4,801
2041
7,317
4,778
The recent 2021 census data indicates that Bluewater's population is 7,540,
suggesting a faster growth rate than previously predicted. The Municipality should
consider this trend in future planning efforts.
119
Impact of Growth on Lifecycle
Activities
By July 1, 2025, the Municipality's asset management plan must include a
discussion of how the assumptions regarding future changes in population and
economic activity informed the preparation of the lifecycle management and
financial strategy.
Planning for forecasted population growth may require the expansion of existing
infrastructure and services. As growth-related assets are constructed or acquired,
they should be integrated into the Municipality's AMP. While the addition of
residential units will add to the existing assessment base and offset some of the
costs associated with growth, the Municipality will need to review the lifecycle costs
of growth-related infrastructure. These costs should be considered in long-term
funding strategies that are designed to, at a minimum, maintain the current level of
service.
120
Key Insights
7 Financial Strategy
- The Municipality is committing approximately $4.1 million
towards capital projects per year from sustainable revenue
sources
- Given the annual capital requirement of $9.6 million, there is
currently a funding gap of $5.5 million annually
- For tax-funded assets, we recommend increasing tax
revenues by 2.6% each year for the next 20 years to
achieve a sustainable level of funding
- For rate-funded sanitary sewer network, we recommend
increasing tax revenues by 1.1% each year for the next 10
years to achieve a sustainable level of funding
- For the rate-funded water network, we recommend
increasing tax revenues by 1.2% each year for the next 10
years to achieve a sustainable level of funding
121
Financial Strategy Overview
For an asset management plan to be effective and meaningful, it must be
integrated with financial planning and long-term budgeting. The development of a
comprehensive financial plan will allow Municipality of Bluewater to identify the
financial resources required for sustainable asset management based on existing
asset inventories, desired levels of service, and projected growth requirements.
This report develops such a financial plan by presenting several scenarios for
consideration and culminating with final recommendations. As outlined below, the
scenarios presented model different combinations of the following components:
1. The financial requirements for:
a. Existing assets
b. Existing service levels
c. Requirements of contemplated changes in service levels (none
identified for this plan)
d. Requirements of anticipated growth (none identified for this plan)
2. Use of traditional sources of municipal funds:
a. Tax levies
b. User fees
c. Debt
d. Development charges
3. Use of non-traditional sources of municipal funds:
a. Reallocated budgets
b. Partnerships
c. Procurement methods
4. Use of Senior Government Funds:
a. CCBF
b. Annual grants
Note: Periodic grants are normally not included due to Provincial requirements for
firm commitments. However, if moving a specific project forward is wholly
dependent on receiving a one-time grant, the replacement cost included in the
financial strategy is the net of such grant being received.
If the financial plan component results in a funding shortfall, the province requires
the inclusion of a specific plan as to how the impact of the shortfall will be
managed. In determining the legitimacy of a funding shortfall, the province may
evaluate a Municipality's approach to the following:
1. To reduce financial requirements, consideration has been given to revising
service levels downward.
122
2. All asset management and financial strategies have been considered. For
example:
a. If a zero-debt policy is in place, is it warranted? If not the use of debt
should be considered.
b. Do user fees reflect the cost of the applicable service? If not, increased
user fees should be considered.
7.1.1
Annual Requirements & Capital Funding
Annual Requirements
The annual requirements represent the amount the Municipality should allocate
annually to each asset category to meet replacement needs as they arise, prevent
infrastructure backlogs and achieve long-term sustainability. In total, the
Municipality must allocate approximately $9.6 million annually to address capital
requirements for the assets included in this AMP.
For most asset categories the annual requirement has been calculated based on a
"replacement only" scenario, in which capital costs are only incurred at the
construction and replacement of each asset.
However, where applicable, lifecycle management strategies have been developed
to identify capital costs that are realized through strategic rehabilitation and
renewal of some of the main assets in these categories. The development of these
strategies allows for a comparison of potential cost avoidance if the strategies were
to be implemented. The following table compares two scenarios for the Road
Network and Sanitary sewer network:
$0
$1.0m
$2.0m
$3.0m
$4.0m
$5.0m
Machinery & Equipment
Land Improvements
Storm Network
Fleet
Sanitary Sewer Network
Facilities
Bridges & Culverts
Water Network
Road Network
Total Average Annual Capital Requirements $9,570,000
123
1. Replacement Only Scenario: Based on the assumption that assets
deteriorate and - without regularly scheduled maintenance and rehabilitation
- are replaced at the end of their service life.
2. Lifecycle Strategy Scenario: Based on the assumption that lifecycle
activities are performed at strategic intervals to extend the service life of
assets until replacement is required.
The implementation of a proactive lifecycle strategy leads to a potential annual cost
avoidance and better overall performance. As the lifecycle strategy scenario
represents the lowest cost option available to the Municipality, we have used these
annual requirements in the development of the financial strategy.
Annual Funding Available
Based on a historical analysis of sustainable capital funding sources, the
Municipality is committing approximately $4.1 million towards capital projects per
year. Given the annual capital requirement of $9.6 million, there is currently a
funding gap of $5.5 annually.
$0
$500k
$1.0m
$1.5m
$2.0m
$2.5m
$3.0m
$3.5m
$4.0m
$4.5m
Machinery & Equipment
Land Improvements
Storm Network
Fleet
Sanitary Sewer Network
Facilities
Bridges & Culverts
Water Network
Road Network
Annual Requirements & Capital Funding Available
Actual Funding Available
Average Annual Requirement
124
Funding Objective
We have developed a scenario that would enable Bluewater to achieve full funding
within 1 to 20 years for the following assets:
-
Tax Funded Assets: Road Network, Bridges & Culverts, Storm Network,
Facilities, Land Improvements, Fleet, and Machinery & Equipment
-
Rate Funded Assets: Water Network, and Sanitary Sewer Network
Note: For the purposes of this AMP, we have excluded gravel/dirt roads since they
are a perpetual maintenance asset and end of life replacement calculations do not
normally apply. If gravel roads are maintained properly, they can theoretically have
a limitless service life.
For each scenario developed we have included strategies, where applicable,
regarding the use of cost containment and funding opportunities.
125
Financial Profile: Tax Funded Assets
7.3.1
Current Funding Position
The following tables show, by asset category, Bluewater's average annual asset
investment requirements, current funding positions, and funding increases required
to achieve full funding on assets funded by taxes.
The average annual investment requirement for the above categories is
approximately $7.5 million. Annual revenue currently allocated to these assets for
capital purposes is approximately $2.6 million leaving an annual deficit of about
$4.9 million. Put differently, these infrastructure categories are currently funded at
34.8% of their long-term requirements.
15 3-year rolling average
16 Government transfers include CCBF of $236 thousand and OCIF of $662 thousand
17 Per agreement, the marina operator contributes $5 thousand annually
Asset
Category
Avg. Annual
Requirement
Annual Funding Available
Taxes to
Reserves15
Government
Transfers16
Vibrancy
Marina
Operator
Contribution17
Total
Available
Annual Deficit
Bridges &
Culverts
$1,042,000
$357,000
$357,000
$685,000
Facilities
$986,000
$303,000
$227,000
$5,000
$535,000
$451,000
Land
Improvements
$134,000
$0
$134,000
Machinery &
Equipment
$129,000
$92,000
$170,000
$262,000
($133,000)
Road Network
$4,250,000
$212,000
$475,000
$687,000
$3,563,000
Storm
Network
$205,000
$66,000
$66,000
$139,000
Fleet
$755,000
$537,000
$170,000
$707,000
$48,000
$7,501,000 $1,144,000
$898,000
$567,000
$5,000
$2,614,000
$4,887,000
126
7.3.2
Full Funding Requirements
In 2023, Bluewater had budgeted annual tax revenues of $9.5 million. As illustrated
in the following table, without consideration of any other sources of revenue or cost
containment strategies, full funding would require the following tax change over
time:
Asset Category
Tax Change Required for Full
Funding
Bridges & Culverts
7.2%
Facilities
4.8%
Land Improvements
1.4%
Machinery & Equipment
-1.4%
Road Network
37.6%
Storm Network
1.5%
Fleet
0.5%
Weighted Average Total
51.6%
Our recommendations include capturing the above changes and allocating them to
the infrastructure deficit outlined above. The table below outlines this concept and
presents several options:
Net Infrastructure Deficit
5 Years
10 Years
15 Years
20 Years
Net
Infrastructure
Deficit:
$4,887,000
$4,887,000 $4,887,000 $4,887,000
Tax Increase
Required
51.6%
51.6%
51.6%
51.6%
Annually:
10.3%
5.2%
3.4%
2.6%
7.3.3
Financial Strategy Recommendations
Considering all the above information, we recommend the 20-year option. This
involves full funding being achieved over 20 years by:
a) increasing tax revenue by 2.6% each year for the next 20 years solely for
the purpose of phasing in full funding to the asset categories covered in this
section of the AMP.
b) adjusting tax revenue increases in future year(s) when allocations to capex
exceed or fail to meet budgeted amounts.
c) allocating the CCBF, OCIF revenue, Taxes to Reserves, Vibrancy and Annual
Marina Operator Contribution as outlined previously.
127
d) allocating the scheduled OCIF grant increases to the infrastructure deficit as
they occur.
e) reallocating appropriate revenue from categories in a surplus position to
those in a deficit position, when applicable.
f) increasing existing and future infrastructure budgets by the applicable
inflation index on an annual basis in addition to the deficit phase-in.
Notes:
1. As in the past, periodic senior government infrastructure funding will most
likely be available during the phase-in period. By Provincial AMP rules, this
periodic funding cannot be incorporated into an AMP unless there are firm
commitments in place. We have included any applicable OCIF formula-based
funding since this funding is a multi-year commitment.
2. We realize that raising tax revenues by the amounts recommended above for
infrastructure purposes will be very difficult to do. However, considering a
longer phase-in window may have even greater consequences in terms of
infrastructure failure.
Although this option achieves full capex funding within 20 years and provides
financial sustainability over the period modeled, the recommendations do require
prioritizing capital projects to fit the resulting annual funding available. Current data
shows a pent-up investment demand of $2,080,000, for tax funded assets.
Prioritizing future projects will require the current data to be replaced by condition-
based data. Although our recommendations include no further use of debt, the
results of the condition-based analysis may require otherwise.
128
Financial Profile: Rate Funded Assets
7.4.1
Current Funding Position
The following tables show, by asset category, Bluewater's average annual asset
investment requirements, current funding positions, and funding increases required
to achieve full funding on assets funded by taxes.
Asset Category
Avg. Annual
Requirement
Rates
To Operations
Total
Available
Annual
Deficit
Water Network
$1,260,000
$3,159,000
($2,291,000)
$868,000
$392,000
Sanitary Sewer Network
$809,000
$1,802,000
($1,186,000)
$616,000
$193,000
$2,069,000
$4,961,000 ($3,477,000) $1,484,000
$585,000
The average annual investment requirement for the above categories is $2.1
million. Annual revenue currently allocated to these assets for capital purposes is
$1.5 million leaving an annual deficit of $585,000. Put differently, these
infrastructure categories are currently funded at 71.7% of their long-term
requirements.
7.4.2 Full Funding Requirements
In 2023, the Bluewater had budgeted annual water and sanitary revenues of
$3,159,000 and $1,802,000 respectively. As illustrated in the table below, without
consideration of any other sources of revenue, full funding would require the
following changes over time:
Asset Category
Tax Change Required for Full
Funding
Water Network
12.4%
Sanitary Sewer Network
10.7%
Weighted Average Total
11.8%
Our recommendations include capturing the above changes and allocating them to
the infrastructure deficit outlined above. The table below outlines this concept and
presents several options:
129
Water Network
5 Years
10 Years
15 Years
20 Years
Net
Infrastructure
Deficit:
$392,000
$392,000
$392,000
$392,000
Rate Increase
Required
12.4%
12.4%
12.4%
12.4%
Annually:
2.5%
1.2%
0.8%
0.6%
Sanitary Sewer Network
5 Years
10 Years
15 Years
20 Years
Resulting
Infrastructure
Deficit:
$193,000
$193,000
$193,000
$193,000
Rate Increase
Required
10.7%
10.7%
10.7%
10.7%
Annually:
2.1%
1.1%
0.7%
0.5%
7.4.3
Financial Strategy Recommendations
Considering all the above information, we recommend the 10-year options for both
the water network and the sanitary network. This involves full funding being
achieved by:
a) increasing rate revenues by 1.2% for water services each year for the next
10 years and 1.1% for sanitary services each year for the next 10 years
solely for the purpose of phasing in full funding to the asset categories
covered in this section of the AMP.
b) increasing existing and future infrastructure budgets by the applicable
inflation index on an annual basis in addition to the deficit phase-in.
Notes:
1. As in the past, periodic senior government infrastructure funding will most
likely be available during the phase-in period. This periodic funding should
not be incorporated into an AMP unless there are firm commitments in place.
2. We realize that raising rate revenues for infrastructure purposes will be very
difficult to do. However, considering a longer phase-in window may have
even greater consequences in terms of infrastructure failure.
3. Any increase in rates required for operations would be in addition to the
above recommendations.
Although this option achieves full funding on an annual basis in 5 years for the
water network and 10 years for the sanitary network and provides financial
sustainability over the period modeled, the recommendations do require prioritizing
130
capital projects to fit the resulting annual funding available. Current data shows the
pent-up investment demand of $1,106,000 in backlog, for rate-funded assets.
131
Use of Debt
Debt can be strategically utilized as a funding source with in the long-term financial
plan. The benefits of leveraging debt for infrastructure planning include:
-
the ability to stabilize tax & user rates when dealing with variable and
sometimes uncontrollable factors
-
equitable distribution of the cost/benefits of infrastructure over its useful life
-
a secure source of funding
-
flexibility in cash flow management
Debt management policies and procedures with limitations and monitoring practices
should be considered when reviewing debt as a funding option. In efforts to
mitigate increasing commodity prices and inflation, interest rates have been rising.
Sustainable funding models that include debt need to incorporate the now current
realized risk of rising interest rates. The following graph shows the historical
changes to the lending rates:
A change in 15-year rates from 5% to 7% would change the premium from 45% to
65%. Such a change would have a significant impact on a financial plan.
For reference purposes, the following table outlines the premium paid on a project
if financed by debt. For example, a $1 million project financed at 3.0% over 15
years would result in a 26% premium or $260 thousand of increased costs due to
interest payments. For simplicity, the table does not consider the time value of
money or the effect of inflation on delayed projects.
0.00%
5.00%
10.00%
15.00%
Historical Prime Business Interest Rate
132
Interest Rate
Number of Years Financed
5
10
15
20
25
30
7.0%
22%
42%
65%
89%
115%
142%
6.5%
20%
39%
60%
82%
105%
130%
6.0%
19%
36%
54%
74%
96%
118%
5.5%
17%
33%
49%
67%
86%
106%
5.0%
15%
30%
45%
60%
77%
95%
4.5%
14%
26%
40%
54%
69%
84%
4.0%
12%
23%
35%
47%
60%
73%
3.5%
11%
20%
30%
41%
52%
63%
3.0%
9%
17%
26%
34%
44%
53%
2.5%
8%
14%
21%
28%
36%
43%
2.0%
6%
11%
17%
22%
28%
34%
1.5%
5%
8%
12%
16%
21%
25%
1.0%
3%
6%
8%
11%
14%
16%
0.5%
2%
3%
4%
5%
7%
8%
0.0%
0%
0%
0%
0%
0%
0%
A change in 15-year rates from 3% to 6% would change the premium from 26% to
54%. Such a change would have a significant impact on a financial plan.
The following tables outline how Bluewater has historically used debt for investing
in the asset categories as listed. There is currently $12,682,000 of debt outstanding
for the assets covered by this AMP with corresponding principal and interest
payments of $986,000 (2024), well within its provincially prescribed maximum of
$3,359,140.
Asset Category
Current Debt
Outstanding
Use of Debt in the Last Five Years
2018
2019
2020
2021
2022
Bridges & Culverts
-
-
-
-
-
-
Facilities
-
-
-
-
-
-
Land Improvements
-
-
-
-
-
-
Machinery & Equipment
-
-
-
-
-
-
Road Network
-
-
-
-
-
-
Storm Network
-
-
-
-
-
-
Fleet
-
-
-
-
-
-
Total Tax Funded:
-
-
-
-
-
-
Water Network
$11,259,000
-
-
-
-
$3,632,000
Sanitary Sewer Network
$1,423,000
-
-
-
-
-
Total Special Service
Tax funded:
$12,682,000
-
-
-
-
$3,632,000
133
Asset Category
Principal & Interest Payments in the Next Ten Years
2024
2025
2026
2027
2028
2029
2034
Bridges & Culverts
-
-
-
-
-
-
-
Facilities
-
-
-
-
-
-
-
Land Improvements
-
-
-
-
-
-
-
Machinery & Equipment
-
-
-
-
-
-
-
Road Network
-
-
-
-
-
-
-
Storm Network
-
-
-
-
-
-
-
Fleet
-
-
-
-
-
-
-
Total Tax Funded:
-
-
-
-
-
-
-
Water Network
$766,000
$1,161,000
$1,161,000
$1,161,000
$1,161,000
$1,053,000
$811,000
Sanitary Sewer Network
$220,000
$220,000
$220,000
$220,000
$220,000
$114,000
Total Special Service
Tax funded:
$986,000
$1,381,000 $1,381,000 $1,381,000 $1,381,000 $1,167,000 $811,000
The revenue options outlined in this plan allow Bluewater to fully fund its long-term
infrastructure requirements without further use of debt.
134
Use of Reserves
7.6.1
Available Reserves
Reserves play a critical role in long-term financial planning. The benefits of having
reserves available for infrastructure planning include:
a) the ability to stabilize tax rates when dealing with variable and sometimes
uncontrollable factors
b) financing one-time or short-term investments
c) accumulating the funding for significant future infrastructure investments
d) managing the use of debt
e) normalizing infrastructure funding requirement
By asset category, the table below outlines the details of the reserves currently
available to Bluewater.
Asset Category
Balance at December 31, 2022
Bridges & Culverts
$775,000
Facilities
$1,160,000
Land Improvements
$801,000
Machinery & Equipment
$1,165,000
Road Network
$1,863,000
Storm Network
$50,000
Fleet
$1,084,000
Total Tax Funded:
$6,898,000
Water Network
$4,081,000
Sanitary Sewer Network
$2,071,000
Total Rate Funded:
$6,152,000
There is considerable debate in the municipal sector as to the appropriate level of
reserves that a Municipality should have on hand. There is no clear guideline that
has gained wide acceptance. Factors that municipalities should consider when
determining their capital reserve requirements include:
a) breadth of services provided
b) age and condition of infrastructure
c) use and level of debt
d) economic conditions and outlook
e) internal reserve and debt policies.
135
These reserves are available for use by applicable asset categories during the
phase-in period to full funding. This coupled with Bluewater's judicious use of debt
in the past, allows the scenarios to assume that, if required, available reserves and
debt capacity can be used for high priority and emergency infrastructure
investments in the short- to medium-term.
7.6.2
Recommendation
In 2025, Ontario Regulation 588/17 will require Bluewater to integrate proposed
levels of service for all asset categories in its asset management plan update. We
recommend that future planning should reflect adjustments to service levels and
their impacts.
136
Key Insights
8 Appendices
- Appendix A identifies projected 10-year capital requirements
for each asset category
- Appendix B includes several maps that have been used to
visualize the current level of service
- Appendix C provides additional guidance on the development
of a condition assessment program
137
Appendix A: 10-Year Capital Requirements
The following tables identify the capital cost requirements for each of the next 10 years to meet projected capital
requirements and maintain the current level of service.
Road Network
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Paved Roads
$883k
$2.4m
$10.5m
$3.4m
$16.3m
$3.0m
$11.5m
$710k
$0
$0
$0
Sidewalks
$821k
$0
$0
$688k
$0
$0
$0
$0
$0
$0
$0
Streetlights
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Dirt Roads
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Unpaved Roads
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1.7m
$2.4m
$10.5m
$4.1m
$16.3m
$3.0m
$11.5m
$710k
$0
$0
$0
Bridges & Culverts
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Bridges
$0
$1.6m
$308k
$1.7m
$613k
$589k
$0
$0
$0
$341k
$0
Culverts
$0
$613k
$763k
$13k
$313k
$40k
$401k
$0
$0
$3.3m
$0
$0
$2.2m
$1.1m
$1.7m
$926k
$629k
$401k
$0
$0
$3.7m
$0
Storm Network
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Storm Mains
$80k
$0
$372k
$0
$0
$0
$10k
$0
$0
$0
$0
$80k
$0
$372k
$0
$0
$0
$10k
$0
$0
$0
$0
138
Facilities
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
General Government
$0
$0
$0
$0
$0
$0
$0
$75k
$0
$0
$0
Leased Facilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Protection
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Recreation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Transportation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$75k
$0
$0
$0
Land Improvements
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Parking Lots
$0
$0
$161k
$0
$0
$0
$205k
$0
$10k
$0
$0
Parks & Recreation
$0
$0
$770k
$150k
$100k
$225k
$0
$0
$0
$0
$485k
$0
$0
$931k
$150k
$100k
$225k
$205k
$0
$10k
$0
$485k
Machinery & Equipment
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
General Government
$0
$25k
$50k
$25k
$0
$25k
$98k
$25k
$0
$25k
$50k
Parks & Recreation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Protection
$0
$62k
$801k
$92k
$0
$62k
$0
$62k
$57k
$35k
$55k
Transportation
$0
$0
$0
$0
$0
$8k
$0
$0
$0
$0
$0
$0
$87k
$851k
$117k
$0
$95k
$98k
$87k
$57k
$60k
$105k
139
Fleet
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Development
Services
$0
$0
$0
$0
$0
$0
$0
$56k
$0
$0
$56k
Parks & Recreation
$188k
$125k
$40k
$0
$112k
$27k
$192k
$0
$0
$125k
$152k
Protection
$460k
$0
$0
$0
$0
$850k
$1.5m
$850k
$680k
$0
$680k
Transportation
$948k
$847k
$138k
$405k
$0
$0
$421k
$800k
$0
$56k
$56k
$1.6m
$972k
$178k
$405k
$112k
$877k
$2.1m
$1.7m
$680k
$181k
$944k
Water Network
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Booster Station
$141k
$0
$0
$0
$0
$0
$0
$0
$0
$99k
$0
Pumphouses &
Reservoirs
$0
$0
$0
$0
$0
$0
$0
$46k
$0
$0
$0
Valves & Chambers
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Water Towers
$0
$2.4m
$0
$0
$0
$0
$0
$0
$47k
$0
$0
Watermains
$227k
$1.5m
$0
$0
$0
$0
$0
$0
$0
$0
$0
Wells
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
WTP
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$368k
$3.9m
$0
$0
$0
$0
$0
$46k
$47k
$99k
$0
140
Sanitary Sewer Network
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Inspection
Chambers
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Lagoons
$284k
$4k
$0
$0
$298k
$0
$0
$0
$0
$386k
$0
Pumping Stations
$454k
$0
$0
$0
$0
$0
$0
$0
$0
$91k
$0
Sanitary Mains
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Wells & Pumping
Stations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$738k
$4k
$0
$0
$298k
$0
$0
$0
$0
$477k
$0
141
Appendix B: Level of Service Maps
Road Network Map
142
Bridges & Culverts Map
143
Storm Network Maps
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
Sanitary Network Maps
159
160
161
Water Network Maps
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
Fireflow Maps
179
180
181
182
183
184
185
186
187
188
189
Appendix C: Condition Assessment
Guidelines
The foundation of good asset management practice is accurate and reliable data on
the current condition of infrastructure. Assessing the condition of an asset at a
single point in time allows staff to have a better understanding of the probability of
asset failure due to deteriorating condition.
Condition data is vital to the development of data-driven asset management
strategies. Without accurate and reliable asset data, there may be little confidence
in asset management decision-making which can lead to premature asset failure,
service disruption and suboptimal investment strategies. To prevent these
outcomes, the Municipality's condition assessment strategy should outline several
key considerations, including:
-
The role of asset condition data in decision-making
-
Guidelines for the collection of asset condition data
-
A schedule for how regularly asset condition data should be collected
Role of Asset Condition Data
The goal of collecting asset condition data is to ensure that data is available to
inform maintenance and renewal programs required to meet the desired level of
service. Accurate and reliable condition data allows municipal staff to determine the
remaining service life of assets, and identify the most cost-effective approach to
deterioration, whether it involves extending the life of the asset through remedial
efforts or determining that replacement is required to avoid asset failure.
In addition to the optimization of lifecycle management strategies, asset condition
data also impacts the Municipality's risk management and financial strategies.
Assessed condition is a key variable in the determination of an asset's probability of
failure. With a strong understanding of the probability of failure across the entire
asset portfolio, the Municipality can develop strategies to mitigate both the
probability and consequences of asset failure and service disruption. Furthermore,
with condition-based determinations of future capital expenditures, the Municipality
can develop long-term financial strategies with higher accuracy and reliability.
Guidelines for Condition Assessment
Whether completed by external consultants or internal staff, condition assessments
should be completed in a structured and repeatable fashion, according to consistent
190
and objective assessment criteria. Without proper guidelines for the completion of
condition assessments there can be little confidence in the validity of condition data
and asset management strategies based on this data.
Condition assessments must include a quantitative or qualitative assessment of the
current condition of the asset, collected according to specified condition rating
criteria, in a format that can be used for asset management decision-making. As a
result, it is important that staff adequately define the condition rating criteria that
should be used and the assets that require a discrete condition rating. When
engaging with external consultants to complete condition assessments, it is critical
that these details are communicated as part of the contractual terms of the project.
There are many options available to the Municipality to complete condition
assessments. In some cases, external consultants may need to be engaged to
complete detailed technical assessments of infrastructure. In other cases, internal
staff may have sufficient expertise or training to complete condition assessments.
Developing a Condition Assessment Schedule
Condition assessments and general data collection can be both time-consuming and
resource intensive. It is not necessarily an effective strategy to collect assessed
condition data across the entire asset inventory. Instead, the Municipality should
prioritize the collection of assessed condition data based on the anticipated value of
this data in decision-making. The International Infrastructure Management Manual
(IIMM) identifies four key criteria to consider when making this determination:
1. Relevance: every data item must have a direct influence on the output that
is required
2. Appropriateness: the volume of data and the frequency of updating should
align with the stage in the assets life and the service being provided
3. Reliability: the data should be sufficiently accurate, have sufficient spatial
coverage and be appropriately complete and current
4. Affordability: the data should be affordable to collect and maintain