Township of Burpee and Mills 2025 Asset Management Plan
Burpee and Mills, Ontario
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Asset
Management Plan
2025
Township of Burpee and Mills
April 2025
Township of Burpee and Mills
Asset Management Plan 2024
1
This Asset Management Plan was prepared by:
Empowering your organization through advanced
asset management, budgeting & GIS solutions
Township of Burpee and Mills
Asset Management Plan 2024
2
Key Statistics
$34m
2023 Replacement Cost of Asset
Portfolio
$116k
Replacement Cost of Infrastructure Per
Household
90%
Percentage of Assets in Fair or Better
Condition
86%
Percentage of Assets with Assessed
Condition Data
$489k
Annual Capital Infrastructure Deficit
20
Years
Recommended Timeframe for
Eliminating Annual Infrastructure Deficit
1.96%
Target Reinvestment Rate
0.53%
Actual Reinvestment Rate
Township of Burpee and Mills
Asset Management Plan 2024
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Table of Contents
1.
Executive Summary ...................................................................... 4
2.
Introduction & Context .................................................................. 7
3.
Portfolio Overview - State of the Infrastructure ............................. 25
4.
Road Network ............................................................................ 33
5.
Culverts .................................................................................... 43
6.
Buildings ................................................................................... 51
7.
Land Improvements ................................................................... 59
8.
Vehicles .................................................................................... 66
9.
Machinery & Equipment .............................................................. 74
10. Growth ..................................................................................... 82
11. Financial Strategy ...................................................................... 86
12. Recommendations & Key Considerations ....................................... 95
1.
Appendix A - Infrastructure Report Card ....................................... 98
2.
Appendix B - 10-Year Capital Requirements .................................. 99
3.
Appendix C - Level of Service Maps & Photos .............................. 103
4.
Appendix D - Risk Rating Criteria ............................................... 104
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Asset Management Plan 2024
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1. Executive Summary
Municipal infrastructure delivers critical services that are foundational to the
economic, social, and environmental health and growth of a community. The
goal of asset management is to enable infrastructure to deliver an adequate
level of service in the most cost-effective manner. This involves the ongoing
review and update of infrastructure information and data alongside the
development and implementation of asset management strategies and long-
term financial planning.
1.1 Scope
This Asset Management Plan (AMP) identifies the current/proposed 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 Township can
ensure that public infrastructure is managed to support the sustainable
delivery of municipal services.
This AMP includes the following asset categories:
Figure 1 Core and Non-Core Asset Categories
1.2 O. Reg. 588/17 Compliance
With the development of this AMP the Municipality has achieved compliance
with July 1, 2025, requirements under O. Reg. 588/17. This includes
requirements for current and proposed levels of service and inventory
reporting for all asset categories. More details on compliance can be found in
section 2.5.1 O. Reg. 588/17 Compliance Review.
Road Network
Culverts
Core Assets
Buildings
Land Improvements
Machinery & Equipment
Vehicles
Non-Core Assets
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1.3 Findings
The overall replacement cost of the asset categories included in this AMP
totals $34 million. 90% of all assets analyzed in this AMP are in fair or better
condition and assessed condition data was available for 86% of assets. For
the remaining 14% 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 (LCB roads and gravel roads) and replacement only
strategies (all other assets) to determine the lowest cost option to maintain
the current/proposed level of service.
To meet capital replacement and rehabilitation needs for existing
infrastructure, prevent infrastructure backlogs, and achieve long-term
sustainability, the Township's average annual capital requirement totals
$668,000. Based on a historical analysis of sustainable capital funding
sources, the Township is committing approximately $179,000 towards
capital projects or reserves per year. As a result, there is currently an annual
funding gap of $489,000.
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
Township. Strategic asset management planning is an ongoing and dynamic
process that requires continuous improvement and dedicated resources.
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Asset Management Plan 2024
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1.4 Recommendations
A financial strategy was developed to address the annual capital funding
gap. The following graphics shows annual tax change required to eliminate
the Township's infrastructure deficit based on a 20-year plan:
Figure 2 Proposed Tax Changes
Tax-Funded
ASSETS
Average
Annual Tax
Change
2.4%
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Asset Management Plan 2024
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2. Introduction & Context
2.1 Community Profile
Census Characteristic
Township of Burpee and
Mills
Ontario
Population 2021
382
14,223,942
Population Change 2016-2021
11.4%
5.8
Total Private Dwellings
191
5,929,250
Population Density
1.8/km2
15.9/km2
Land Area
217.33 km2
892,411.76 km2
Table 1 Township of Burpee and Mills Community Profile
The Township of Burpee and Mills is a single-tier township municipality on
Manitoulin Island. The Township is comprised of the communities of Burpee,
Elizabeth Bay, Evansville and Poplar.
Burpee and Mills offers a tranquil blend of rural and cottage living on the
western end of Manitoulin Island. The township's vast landscapes feature
forests, lakes, and hills, ideal for outdoor activities like fishing, hiking, and
hunting. Agriculture and forestry drive the local economy, with numerous
farms contributing to sustainable food production. Governed by a municipal
council, the community enjoys a close-knit, rural lifestyle enriched by
Indigenous and European cultural heritage. Essential services such as road
maintenance, waste management, and community facilities support the
residents. Accessible by road and ferry, Burpee and Mills provides a peaceful
retreat with necessary amenities and a strong connection to nature.
The township has experienced significant growth between the past two
census years (2016-2021). During this period, the Municipality saw an
11.4% increase in population, resulting in 39 new residents. The
demographic profile of the Municipality reveals an older population, with the
65+ age group constituting a significant 36.4% of the population, which is
roughly double the provincial average of 18.5%.
In conclusion, the Township of Burpee and Mills stands out as a picturesque
and tranquil community on Manitoulin Island. With its scenic landscapes,
vibrant agricultural economy, and essential services, it offers an ideal blend
of rural and cottage living.
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Asset Management Plan 2024
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The significant population growth in recent years, particularly among older
adults, highlights its appeal as a peaceful and supportive environment.
Burpee and Mills remains a welcoming retreat, deeply connected to nature
and enriched by its cultural heritage.
2.2 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 time 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.
2.2.1
Township of Burpee and Mills Climate Profile
Burpee and Mills is located on Manitoulin Island along Lake Huron and
Georgian Bay. The County 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
Township of Burpee and Mills may experience the following trends:
Township of Burpee and Mills
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Higher Average Annual Temperature:
-
Between the years 1971 and 2000 the annual average temperature
was 5.4 ºC
-
Under a high emissions scenario, the annual average temperatures
are projected to increase to 8.1 ºC by the year 2050 and over
12.0ºC by the end of the century.
Increase in Total Annual Precipitation:
-
Under a high emissions scenario, the Township is projected to
experience a 14% increase in precipitation by the year 2050 and a
17% 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.
2.2.2
Integration of 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 as a
result of climate change impacts such as flooding, high heat, drought, and
more frequent and intense storms.
In order 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.
2.3 Asset Management Overview
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.
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The acquisition of capital assets accounts for only 10-20% of their total cost
of ownership. The remaining 80-90% comes from operations and
maintenance. This AMP focuses its analysis on the capital costs to maintain,
rehabilitate and replace existing municipal infrastructure assets.
Figure 3 Total Cost of Asset Ownership
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.
2.3.1
Foundational Asset Management Documentation
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.
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Figure 4 Foundational Asset Management Documents
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.
Asset Management Policy
An asset management policy represents a statement of the commitment to
the development and implementation of the Township of Burpee and Mills'
asset management program. It guides the organization-wide asset
management activities, facilitates logical and evidence-based decision
making for the management of municipal infrastructure assets and to
support the delivery of sustainable community services.
The Township adopted the Asset Management Policy in accordance with
Ontario Regulation 588/17 in August 2020.
The approval of this policy is important to integrate the Township's strategic
mission, vision and goals with its asset management program, and ensuring
the critical municipal infrastructure assets and vital services are maintained
and provided to the community in a reliable, sustainable manner. The
essential services include transportation networks, facilities and parks and
other infrastructure.
Strategic
Plan
Asset
Management
Policy
Asset
Management
Strategy
Asset
Management
Plan
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Asset Management Plan 2024
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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 Township plans to achieve asset
management objectives through planned activities and decision-making
criteria.
The Township's 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.
Asset Management Plan
The asset management plan (AMP) presents the outcomes of the Township'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
The AMP is a living document that should be updated regularly as additional
asset and financial data becomes available. This will allow the Township to
re-evaluate the state of infrastructure and identify how the organization's
asset management and financial strategies are progressing.
The Township's previous iteration of the AMP was prepared in 2022 by PSD
Citywide.
This document is an AMP that uses the most recent asset inventory and has
been prepared in accordance with O.Reg 588/17.
2.3.2
Key Concepts in Asset Management
Effective asset management integrates several key components, including
lifecycle management, risk & criticality, and levels of service. These concepts
are applied throughout this asset management plan and are described below
in greater detail.
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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.
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.
Lifecycle Activity
Cost
Typical Associated Risks
Maintenance
Activities that
prevent defects
or deteriorations
from occurring
$
- Balancing limited resources between
planned maintenance and reactive,
emergency repairs and interventions;
- Diminishing returns associated with
excessive maintenance activities, despite
added costs;
- Intervention selected may not be optimal
and may not extend the useful life as
expected, leading to lower payoff and
potential premature asset failure;
Rehabilitation/
Renewal
$$$
- Useful life may not be extended as
expected;
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Lifecycle Activity
Cost
Typical Associated Risks
Activities that
rectify defects or
deficiencies that
are already
present and may
be affecting asset
performance
- May be costlier in the long run when
assessed against full reconstruction or
replacement;
- Loss or disruption of service, particularly
for underground assets;
Replacement/
Reconstruction
Asset end-of-life
activities that
often involve the
complete
replacement of
assets
$$$$
$
- Incorrect or unsafe disposal of existing
asset;
- Costs associated with asset retirement
obligations;
- Substantial exposure to high inflation and
cost overruns;
- Replacements may not meet capacity
needs for a larger population;
- Loss or disruption of service, particularly
for underground assets;
Table 2 Lifecycle Management: Typical Lifecycle Interventions
The Township's approach to lifecycle management is described within each
asset category outlined in this AMP. Staff will continue to evolve and
innovate current practices for developing and implementing proactive
lifecycle strategies 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.
Risk & Criticality
Asset risk and criticality are essential building blocks of asset management,
integral in prioritizing projects and distributing funds where they are needed
most based on a variety of factors. Assets in disrepair may fail to perform
their intended function, pose substantial risk to the community, lead to
unplanned expenditures, and create liability for the municipality. In addition,
some assets are simply more important to the community than others,
based on their financial significance, their role in delivering essential
services, the impact of their failure on public health and safety, and the
extent to which they support a high quality of life for community
stakeholders.
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Risk is a product of two variables: the probability that an asset will fail, and
the resulting consequences of that failure event. It can be a qualitative
measurement, (i.e. low, medium, high) or quantitative measurement (i.e. 1-
5), that can be used to rank assets and projects, identify appropriate
lifecycle strategies, optimize short- and long-term budgets, minimize service
disruptions, and maintain public health and safety.
Figure 5 Risk Equations
The approach used in this AMP relies on a quantitative measurement of risk
associated with each asset. The probability and consequence of failure are
each scored from 1 to 5, producing a minimum risk index of 1 for the lowest
risk assets, and a maximum risk index of 25 for the highest risk assets.
Probability of Failure
Several factors can help decision-makers estimate the probability or
likelihood of an asset's failure, including its condition, age, previous
performance history, and exposure to extreme weather events, such as
flooding and ice jams--both a growing concern for municipalities in Canada.
Consequence of Failure
Estimating criticality also requires identifying the types of consequences that
the organization and community may face from an asset's failure, and the
magnitude of those consequences. Consequences of asset failure will vary
across the infrastructure portfolio; the failure of some assets may result
primarily in high direct financial cost but may pose limited risk to the
community. Other assets may have a relatively minor financial value, but
any downtime may pose significant health and safety hazards to residents.
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Table 3 illustrates the various types of consequences that can be integrated
in developing risk and criticality models for each asset category and
segments within. We note that these consequences are common, but not
exhaustive.
Type of Consequence
Description
Direct Financial
Direct financial consequences are typically
measured as the replacement costs of the asset(s)
affected by the failure event, including
interdependent infrastructure.
Economic
Economic impacts of asset failure may include
disruption to local economic activity and commerce,
business closures, service disruptions, etc. Whereas
direct financial impacts can be seen immediately or
estimated within hours or days, economic impacts
can take weeks, months and years to emerge, and
may persist for even longer.
Socio-political
Socio-political impacts are more difficult to quantify
and may include inconvenience to the public and
key community stakeholders, adverse media
coverage, and reputational damage to the
community and the Municipality.
Environmental Environmental consequences can include pollution,
erosion, sedimentation, habitat damage, etc.
Public Health and
Safety
Adverse health and safety impacts may include
injury or death, or impeded access to critical
services.
Strategic
These include the effects of an asset's failure on the
community's long-term strategic objectives,
including economic development, business
attraction, etc.
Table 3 Risk Analysis: Types of Consequences of Failure
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This AMP includes a preliminary 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. These models have been built in Citywide for continued review,
updates, and refinements.
Levels of Service
A level of service (LOS) is a measure of the services that the Township is
providing to the community and the nature and quality of those services.
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.
The Township measures the level of service provided at two levels:
Community Levels of Service, and Technical Levels of Service. This AMP
includes those LOS that are required under O. Reg. 588/17 as well as any
additional metrics the Township wishes to track.
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 as applicable (Roads and Culverts) the province,
through O. Reg. 588/17, has provided qualitative descriptions that are
required to be included in this AMP. For non-core asset categories, the
Township 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 Township's asset
management strategies on the physical condition of assets or the
quality/capacity of the services they provide.
For core asset categories as applicable (Roads and Culverts) the province,
through O. Reg. 588/17, has also provided technical metrics that are
required to be included in this AMP. For non-core asset categories, the
Township 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.
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Proposed Levels of Service
This AMP focuses on both the current and proposed level of service provided
to the community, in accordance with O. Reg. 588/17.
Proposed levels of service should be realistic and achievable within the
timeframe outlined by the Township. They should also be determined with
consideration of a variety of community expectations, fiscal capacity,
regulatory requirements, corporate goals and long-term sustainability.
As per O. Reg. 588/17, the Township's proposed level of service must:
i.
Explain why the proposed levels of service are appropriate:
a. Discuss associated risks
b. How they differ from current levels of service
c. Whether the proposed levels of service are achievable
d. Discuss the Township's ability to afford the proposed level of
service
ii.
Have a proposed performance metric
iii.
Have a lifecycle management and financial strategy
iv.
Discuss how assumptions regarding future changes in population
and economic activity informed the preparation of the lifecycle
management and financial strategy
2.4 Scope & Methodology
2.4.1
Asset Categories for this AMP
This asset management plan for the Township of Burpee and Mills is
produced in compliance with O. Reg. 588/17. The July 2025 deadline under
the regulation--the third of three AMPs--requires analysis of core and non-
core asset categories.
The AMP summarizes the state of the infrastructure for the Township's asset
portfolio, establishes current levels of service, proposed levels of service,
and the associated technical and customer oriented key metrics, outlines
lifecycle strategies for optimal asset management and performance, and
provides financial strategies to reach sustainability for the asset categories
listed below.
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Figure 6 Tax Funded Asset Categories
2.4.2
Data Effective Date
It is important to note that this plan is based on data as of December
2023; therefore, it represents a snapshot in time using the best available
processes, data, and information at the Municipality. Strategic asset
management planning is an ongoing and dynamic process that requires
continuous data updates and dedicated data management resources.
2.4.3
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 Per 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 costs of the assets are 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 Township incurred. As assets age, and
new products and technologies become available, cost inflation becomes a
less reliable method.
Road Network
Culverts
Land Improvements
Buildings
Machinery & Equipment
Vehicles
Tax Funded Assets
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2.4.4
Estimated Service Life & Service Life Remaining
The estimated useful life (EUL) of an asset is the period over which the
Township 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 Township can determine
the service life remaining (SLR) for each asset. Using condition data and the
asset's SLR, the Township can more accurately forecast when it will require
replacement. The SLR is calculated as follows:
Figure 7 Service Life Remaining Calculation
2.4.5
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 Township can
determine the extent of any existing funding gap. The reinvestment rate is
calculated as follows:
Figure 8 Target Reinvestment Rate Calculation
Figure 9 Actual Reinvestment Rate Calculation
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2.4.6
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 Township'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
Table 4 Standard Condition Rating Scale
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.
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Condition vs. Suitability
It is important to note that condition is only one aspect of determining an
asset's suitability to providing the service intended. Other factors, such as
capacity, should be considered on a category level.
For example, a Township Hall Office Facility may be in good condition with
sufficient service life remaining, but only has office space for 20 employees.
If the municipality requires office space for 30 employees, solutions should
be considered which may include replacement amongst other alternatives
such as secondary office space, remote work options, etc. As these
considerations are nuanced for the specific asset, suitability factors may not
be directly addressed as part of this Asset Management Plan.
2.5 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)1. Along with creating better
performing organizations, more livable 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.
Figure 10 below outlines key reporting requirements under O. Reg 588/17
and the associated timelines.
1 O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure
https://www.ontario.ca/laws/regulation/170588
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Asset Management Plan 2024
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Figure 10 O. Reg. 588/17 Requirements and Reporting Deadlines
Township of Burpee and Mills
Asset Management Plan 2024
24
2.5.1
O. Reg. 588/17 Compliance Review
Requirement
O. Reg.
588/17
Section
AMP
Section
Reference
Status
Summary of assets in each
category
S.5(2), 3(i)
4.1 - 9.1
Complete
Replacement cost of assets
in each category
S.5(2), 3(ii)
4.1 - 9.1
Complete
Average age of assets in
each category
S.5(2), 3(iii)
4.3 - 9.3
Complete
Condition of core assets in
each category
S.5(2), 3(iv)
4.2 - 9.2
Complete
Description of municipality's
approach to assessing the
condition of assets in each
category
S.5(2), 3(v)
4.4 - 9.4
Complete
Current levels of service in
each category
S.5(2), 1(i-ii)
4.7 - 9.7
Complete
Current performance
measures in each category
S.5(2), 2
4.7 - 9.7
Complete
Proposed levels of service in
each category
S.6
4.8 - 9.8
Complete
Lifecycle activities needed to
maintain current levels of
service for 10 years
S.5(2), 4
4.4 - 9.4
Complete
Costs of providing lifecycle
activities for 10 years
S.5(2), 4
Appendix B
Complete
Growth assumptions
S.5(2), 5(i-ii)
S.5(2), 6(i-vi)
10.1 - 10.2
Complete
Table 5 O. Reg. 588/17 Compliance Review
Township of Burpee and Mills
Asset Management Plan 2024
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3. Portfolio Overview - State of the Infrastructure
The state of the infrastructure (SOTI) summarizes the inventory, condition,
age profiles, and other key performance indicators for the Township's
infrastructure portfolio. These details are presented for all core and non-core
asset categories.
3.1 Portfolio Overview
3.1.1
Total Replacement Cost of Asset Portfolio
The nine asset categories analyzed in this Asset Management Plan have a
total current replacement cost of $34 million. This estimate was calculated
using user-defined costing, as well as inflation of historical or original costs
to current date. This estimate reflects replacement of historical assets with
similar, not necessarily identical, assets available for procurement today.
Figure 11 illustrates the replacement cost of each asset category; at 91% of
the total portfolio, the road network forms the largest share of the
Township's asset portfolio.
Figure 11 Current Replacement Cost by Asset Category
3.1.2
Target vs. Actual Reinvestment Rate
The graph below depicts funding gaps by comparing the target to the current
reinvestment rate. To meet the existing long-term capital requirements, the
Township requires an annual capital investment of $668,000, for a target
portfolio reinvestment rate of 1.96%. Currently, the annual investment from
sustainable revenue sources is $179,000, for a current portfolio
reinvestment rate of 0.53%. Target and current re-investment rates by
asset category are detailed below.
$31.1m
$1.6m
$750k
$367k
$176k
$10k
$0
$10m
$20m
$30m
Road Network
Buildings
Machinery & Equipment
Vehicles
Culverts
Land Improvements
Current Replacement Cost
Total Current Replacement Cost: $33,993,817
Township of Burpee and Mills
Asset Management Plan 2024
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Figure 12 Current Vs. Target Reinvestment Rate
3.1.3
Condition of Asset Portfolio
Figure 13 and Figure 14 summarize asset condition at the portfolio and
category levels, respectively. Based on both assessed condition and age-
based analysis, 90% of the Township's infrastructure portfolio is in fair or
better condition, with the remaining 10% in poor or worse condition.
Typically, assets in poor or worse condition may require replacement or
major rehabilitation in the immediate or short-term. Targeted condition
assessments may help further refine the list of assets that may be
candidates for immediate intervention, including potential replacement or
reconstruction.
Similarly, assets in fair condition should be monitored for disrepair over the
medium term. Keeping assets in fair or better condition is typically more
cost-effective than addressing assets needs when they enter the latter
stages of their lifecycle or decline to a lower condition rating, e.g., poor or
worse.
Condition data was available for all culverts, vehicles, land improvements,
and the majority of the road network. For all remaining assets, including
buildings, age was used as an approximation of condition. Age-based
condition estimations can skew data and lead to potential under- or
overstatement of asset needs.
Further, when assessed condition data was available, it was projected to
current year (2023). This 'projected condition' can generate lower condition
ratings than those established at the time of the condition assessment. The
0%
2%
4%
6%
8%
10%
12%
Target Reinvestment Rate
Actual Reinvestment Rate
Township of Burpee and Mills
Asset Management Plan 2024
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rate of this deterioration will also depend on lifecycle curves used to project
condition over time.
Figure 13 Asset Condition: Portfolio Overview
As further illustrated in Figure 14 at the category level, the majority of
major, core infrastructure including the road network and culverts are in fair
or better condition, based on in-field condition assessment data and age-
based condition projections. See Table 6 for details on how condition data
was derived for each asset segment.
Figure 14 Asset Condition by Asset Category
Very Poor,
$314,971, 1%
Poor,
$320,091, 1%
Fair,
$5,686,223,
17%
Good,
$26,519,537,
78%
Very Good,
$1,152,995,
3%
$138k
$35k
$165k
$637k
$179k
$364k
$61k
$307k
$25.7m
$130k
$1.1m
$65k
$4.5m
$9k
$21k
$16k
$6k
$10k
$257k
$42k
0%
25%
50%
75%
100%
Buildings
Culverts
Land
Improvements
Machinery &
Equipment
Road Network
Vehicles
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Burpee and Mills
Asset Management Plan 2024
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Buildings and facilities are not componentized into their individual major
elements and components. This limits the validity of current condition
estimates as they are presented only at the 'parent' asset level, such as
'Municipal Office'.
Source of Condition Data
This AMP relies on assessed condition for 86% of assets, based on and
weighted by replacement cost. For the remaining assets, 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(s)
% of Assets
with
Assessed
Conditions
Source of Condition Data
Road Network
All
91%
Staff Assessments
Culverts
All
100%
Staff Assessments
Buildings
All
0%
Age-Based
Land
Improvement
s
All
100%
Staff Assessments
Vehicles
All
100%
Staff Assessments
Machinery &
Equipment
All
63%
Staff Assessments
Table 6 Source of Condition Data
3.1.4
Service Life Remaining
Based on asset age, available assessed condition data and estimated useful
life, 3% of the Township's assets will require replacement within the next 10
years (not accounting for asset replacement backlog). Details of the capital
requirements are identified in each asset section.
Township of Burpee and Mills
Asset Management Plan 2024
29
Figure 15: Service Life Remaining by Asset Category
3.1.5
Risk Matrix
Using the risk equation and preliminary risk models, Figure 16 shows how
assets across the different asset categories are stratified within a risk
matrix.
Figure 16 Risk Matrix: All Assets
$212k
$58k
$66k
$10k
$309k
$472k
$15k
$31.1m
$161k
$1.6m
0%
25%
50%
75%
100%
Vehicles
Road Network
Machinery &
Equipment
Land
Improvements
Culverts
Buildings
Service Life Remaining by Category
Service Life Expired
0 - 5 Years Remaining
6 - 10 Years Remaining
Over 10 Years Remaining
Township of Burpee and Mills
Asset Management Plan 2024
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The analysis shows that based on current risk models, approximately 3% of
the Township's assets, with a current replacement cost of approximately
$1.1 million, carry a risk rating of 15 or higher (red) out of 25. Assets in this
group may have a high probability of failure based on available condition
data and age-based estimates and were considered to be most essential to
the Township.
As new asset attribute information and condition assessment data are
integrated with the asset register, asset risk ratings will evolve, resulting in
a redistribution of assets within the risk matrix. Staff should also continue to
calibrate risk models.
We caution that since risk ratings rely on many factors beyond an asset's
physical condition or age, assets in a state of disrepair can sometimes be
classified as low-risk, despite their poor condition rating. In such cases,
although the probability of failure for these assets may be high, their
consequence of failure ratings were determined to be low based on the
attributes used and the data available.
Similarly, assets with very high condition ratings can receive a moderate to
high-risk rating despite a low probability of failure. These assets may be
deemed as highly critical to the Township based on their costs, economic
importance, social significance, and other factors. Continued calibration of an
asset's criticality and regular data updates are needed to ensure these
models more accurately reflect an asset's actual risk profile.
3.1.6
Forecasted Capital Requirements
Aging assets require maintenance, rehabilitation, and replacement. Figure
17 below illustrates the cyclical short-, medium- and long-term
infrastructure replacement requirements for all asset categories analyzed in
this AMP over a 65-year time horizon. On average, $668,000 is required
each year ($3.3m for 5 years) to remain current with capital replacement
needs for the Township's asset portfolio, represented by the red dotted line.
Although actual spending may fluctuate substantially from year to year, this
figure is a useful benchmark for annual capital expenditure targets (or
allocations to reserves) to ensure projects are not deferred and replacement
needs are met as they arise. This figure relies on age and available condition
data.
Township of Burpee and Mills
Asset Management Plan 2024
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Figure 17 Capital Replacement Needs: Portfolio Overview 2024-2088
The chart also illustrates a backlog of $212,000, comprising assets that
remain in service beyond their estimated useful life. It is unlikely that all
such assets are in a state of disrepair, requiring immediate replacements.
This makes continued and expanded targeted and consistent condition
assessments integral. Risk frameworks, proactive lifecycle strategies, and
levels of service targets can then be used to prioritize projects, continuously
refine estimates for both backlogs and ongoing capital needs and help select
the right treatment for each asset. In addition, more effective
componentization of buildings will improve these projections, including
backlog estimates.
$0
$4m
$8m
$12m
$16m
$20m
$24m
$28m
Backlog 2024-
2028
2029-
2033
2034-
2038
2039-
2043
2044-
2048
2049-
2053
2054-
2058
2059-
2063
2064-
2068
2069-
2073
2074-
2078
2079-
2083
2084-
2088
Forecasted Capital Replacements
Buildings
Culverts
Land Improvements
Machinery & Equipment
Road Network
Vehicles
5-year Capital Requirement
Total
Township of Burpee and Mills
Asset Management Plan 2024
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Core Assets
Road Network
Replacement
Cost
Average
Condition
Financial Capacity
$31 m
Good
Annual Requirement:
$486,000
Funding Available:
$134,000
Annual Deficit:
$352,000
Culverts
Replacement
Cost
Average
Condition
Financial Capacity
$176 k
Good
Annual Requirement:
$5,000
Funding Available:
$1,200
Annual Deficit:
$3,800
Township of Burpee and Mills
Asset Management Plan 2024
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4. Road Network
The Township's road network comprises the largest share of its
infrastructure portfolio, with a current replacement cost of more than $31
million. The Township also owns and manages other supporting
infrastructure and capital assets, including signs.
4.1 Inventory & Valuation
Table 7 summarizes the quantity and current replacement cost of the
Township's various road network assets as managed in its primary asset
management register, Citywide.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Gravel Roads
13
Length (km)
$2,895,000
CPI
LCB Roads
49
Length (km)
$28,072,000
CPI
Signs
91
Quantity
$99,000
CPI
TOTAL
$31,067,000
Table 7 Detailed Asset Inventory: Road Network
Figure 18 Portfolio Valuation: Road Network
$99k
$2.9m
$28.1m
$0
$5m
$10m
$15m
$20m
$25m
$30m
Signs
Gravel
LCB
Current Replacement Cost
Total Current Replacement Cost: $31,066,643
Township of Burpee and Mills
Asset Management Plan 2024
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4.2 Asset Condition
Figure 19 summarizes the replacement cost-weighted condition of the
Township's road network. Based on age, 91% of assets are in fair or better
condition; the remaining 9% of assets are in poor to very poor condition.
Assets in poor or worse condition may be candidates for replacement in the
short term; similarly, assets in fair condition may require rehabilitation or
replacement in the medium term and should be monitored for further
degradation in condition. As illustrated in Figure 20, the majority of the
Township's road network assets are in good condition.
Figure 19 Asset Condition: Road Network Overall
Figure 20 Asset Condition: Road Network by Segment
Fair,
$4,499,000,
14%
Good,
$25,658,000,
83%
Very Good,
$637,000, 2%
$637k
$844k
$24.7m
$99k
$1.8m
$2.7m
$274k
0%
25%
50%
75%
100%
Gravel
LCB
Signs
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Burpee and Mills
Asset Management Plan 2024
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4.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential long-term replacement spikes.
Figure 21 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets.
Figure 21 Estimated Useful Life vs. Asset Age: Road Network
Although asset age is an important measurement for long-term planning,
condition assessments provide a more accurate indication of actual asset
needs.
14.0
7.2
14.0
20
20
50
0
10
20
30
40
50
60
Gravel
LCB
Signs
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Burpee and Mills
Asset Management Plan 2024
36
4.4 Current Approach to Lifecycle Management
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 lifecycle strategies have been developed as a proactive
approach to managing the lifecycle of HCB and Gravel 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.
LCB Roads
Event Name
Event Class
Event Trigger
Patching
Maintenance
Repeat annually
Resurfacing
Rehabilitation
1 Condition, repeat
3 times
Reconstruction
Replacement
0 Condition
Table 8 Lifecycle Management Strategy: Road Network (LCB Roads)
Township of Burpee and Mills
Asset Management Plan 2024
37
Gravel Roads
Event Name
Event Class
Event Trigger
Grading
Maintenance
Repeat annually
Gravelling - Adding Material
Preventative
Maintenance
Repeat every 6
years 3 times
Reconstruction
Replacement
0 Condition
Table 9 Lifecycle Management Strategy: Road Network (Gravel Roads)
4.5 Forecasted Long-Term Replacement Needs
Figure 22 illustrates the cyclical short-, medium- and long-term
infrastructure rehabilitation and replacement requirements for the
Township's road network. This analysis was run until 2088 to capture at
least one iteration of replacement for the longest-lived asset in Citywide
Assets, the Township's primary asset management system and asset
register. The Township's average annual requirements (red dotted line) total
$486,000 ($2.4 million per 5-year bucket) for all assets in the road network.
Although actual spending may fluctuate substantially from year to year, this
figure is a useful benchmark value for annual capital expenditure targets (or
allocations to reserves) to ensure projects are not deferred and replacement
needs are met as they arise.
The chart illustrates substantial capital needs throughout the forecast period.
These projections are based on asset replacement costs, age analysis, as
well as lifecycle modeling (roads only). They are designed to provide a long-
term, portfolio-level overview of capital needs and should be used to support
improved financial planning over several decades.
Township of Burpee and Mills
Asset Management Plan 2024
38
Figure 22 Forecasted Capital Replacement Needs: Road Network 2024-2088
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to
be replaced. However, quantifying and monitoring these spikes is essential
for long-term financial planning, including establishing dedicated reserves.
Regular pavement condition assessments and a robust risk framework will
ensure that high-criticality assets receive proper and timely lifecycle
intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B
- 10-Year Capital Requirements.
4.6 Risk Analysis
The risk matrix below is generated using available asset data, including
condition and replacement costs.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Township may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
$0
$5m
$10m
$15m
$20m
$25m
$30m
Backlog
2029-
2033
2039-
2043
2049-
2053
2059-
2063
2069-
2073
2079-
2083
Forecasted Capital Replacements
LCB
Signs
5-year Capital Requirement
Total
Township of Burpee and Mills
Asset Management Plan 2024
39
These risk models have been built into the Township's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 23 Risk Matrix: Road Network
4.7 Current Levels of Service
The tables that follow summarize the Municipality's current levels of service
with respect to prescribed KPIs under Ontario Regulation 588/17, as well as
any additional performance measures that the Township selected for this
AMP.
4.7.1
Community Levels of Service
Service
Attribute
Qualitative
Description
Current LOS (2023)
Scope
Description,
which may
include maps, of
the road
network in the
municipality and
its level of
connectivity
See Appendix C
Quality
Description or
images that
illustrate the
different levels
of road class
pavement
condition
Very Poor: Widespread signs of
deterioration. Requires remedial work to
bring road up to standard. Service is
affected severely. (0-20% life remaining)
Poor: Large portions of road exhibiting
deterioration with rutting, potholes,
distortions, longitude and lateral cracking.
Road is mostly below standard. (20-40%
life remaining)
Township of Burpee and Mills
Asset Management Plan 2024
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Service
Attribute
Qualitative
Description
Current LOS (2023)
Fair: Some sections of road starting to
deteriorate. Requires some remedial work
and surface upgrade in near future. (40-
60% life remaining)
Good: Road is in overall good condition.
Few sections are starting to show signs of
minimal deterioration. (60-80% life
remaining)
Very Good:Surface was newly or recently
upgraded. No signs of deterioration or
remedial work required. (80-100% life
remaining)
Table 10 O. Reg. 588/17 Community Levels of Service: Road Network
4.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2023)
Scope
Lane-km of arterial roads (MMS classes
1 and 2) per land area (km/km2)
0 km/km2
Lane-km of collector roads (MMS
classes 3 and 4) per land area
(km/km2)
0 km/km2
Lane-km of local roads (MMS classes 5
and 6) per land area (km/km2)2
0.56 km/km2
Quality
Average pavement condition index for
paved roads in the Township
62%
Average surface condition for unpaved
roads in the Township (e.g. excellent,
good, fair, poor)
Fair
Table 11 O. Reg. 588/17 Technical Levels of Service: Road Network
Township of Burpee and Mills
Asset Management Plan 2024
41
4.8 Proposed Levels of Service
As per O. Reg. 588/17, Burpee and Mills is mandated to document its
proposed levels of service for the Road Network. The table that follows
summarizes the Municipality's proposed levels of service for the Road
Network, for the following 10 years.
Service
Attribute
LOS Metric
Current
LOS
Target
LOS
Trend
Scope
Lane-km of arterial roads (MMS classes 1 and 2) per
land area (km/km2)
0
km/km2
0
km/km2
↔
Lane-km of collector roads (MMS classes 3 and 4)
per land area (km/km2)
0
km/km2
0
km/km2
Lane-km of local roads (MMS classes 5 and 6) per
land area (km/km2)
0.56
km/km2
0.56
km/km2
Scope
Average pavement condition index for paved roads
in the Township
62%
62%
↔
Average surface condition for unpaved roads in the
Township (e.g. excellent, good, fair, poor)
Fair
Fair
Table 12 O. Reg. 588/17 Proposed Levels of Service: Road Network
4.8.1
Background
Burpee and Mills roads consist solely of local roads (MMs classes 5 and 6).
The current number of local roads in the community provide sufficient
connectivity for the residents. The paved roads are in Good (62%) condition,
and the unpaved roads have an average surface condition of fair.
Rehabilitation/replacement events for the road network are expensive. The
target level of service reflects the fact that Burpee and Mills has a small
taxpayer base, along with the necessary reliance on grants to conduct major
rehabilitation events.
4.8.2
Achievability
The lifecycle management strategies currently in place for the road network
have been successful in ensuring that the road network remains in an
adequate state of repair. Continuing to follow the defined lifecycle
management strategy should allow Burpee and Mills to achieve its target
level of service.
Township of Burpee and Mills
Asset Management Plan 2024
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4.8.3
Affordability
The Township will continue to follow its current lifecycle management/
financial strategy to achieve its target level of service. Operating efficiency is
expected to decrease as the assets age, and operation and maintenance
associated costs increase.
For more information, refer to the financial strategy portion of this AMP in
Section 11. A detailed 10-year capital replacement forecast can be found in
Appendix B - 10-Year Capital Requirements.
4.8.4
Growth
Please refer to section 10 of this AMP for information on the effects of
growth on proposed levels of service.
4.8.5
Risks
The following risks are associated with the defined proposed levels of
service:
- Increase in operation and maintenance costs
- Increased likelihood of unforeseen road closures
- Negative impact on the community (financial, safety, etc.)
Township of Burpee and Mills
Asset Management Plan 2024
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5. Culverts
The Township does not own any bridges or culverts with span more than 3
meters. The assets in this category are drainage culverts with a span of less
than 3 meters. Staff are working towards improving the accuracy and
reliability of their drainage culverts to assist with long-term asset
management planning.
5.1 Inventory & Valuation
Table 12 summarizes the quantity and current replacement cost of culverts.
The Township owns and manages 179 culverts.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Culverts
179
Quantity
$176,000
CPI
TOTAL
$176,000
Table 13 Detailed Asset Inventory: Culverts
Figure 24 Portfolio Valuation: Bridges & Culverts
5.2 Asset Condition
Figure 25 summarizes the replacement cost-weighted condition of the
Township's culverts. Based on the staff assessments, 91% of culverts are in
fair or better condition. Some elements or components of these structures
may be candidates for replacement or rehabilitation in the medium term and
should be monitored for further degradation in condition. At 9% of the total
culverts portfolio, assets in poor or worse condition may require replacement
in the immediate or short term.
$176k
$0
$50k
$100k
$150k
$200k
Culverts
Current Replacement Cost
Total Current Replacement Cost: $175,771
Township of Burpee and Mills
Asset Management Plan 2024
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Figure 25 Asset Condition: Culverts Overall
Figure 26 Asset Condition: Culverts by Segment
5.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Very Poor,
$6,000, 3%
Poor, $9,000,
5%
Fair,
$65,000,
37%
Good,
$61,000,
35%
Very Good,
$35,000,
20%
$35k
$61k
$65k
$9k$6k
0%
25%
50%
75%
100%
Culverts
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Burpee and Mills
Asset Management Plan 2024
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Figure 27 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets.
Figure 27 Estimated Useful Life vs. Asset Age: Culverts
5.4 Current Approach to Lifecycle Management
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 Township's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance,
Rehabilitation
and
Replacement
Visual inspections are performed by municipal staff on a
weekly basis to identify rust, cracks or the existence of
obstruction.
Maintenance and cleaning are completed yearly to remove
obstruction, maintain efficient drainage, and avoid
flooding.
Full replacement is undertaken when break or rust are
identified during inspection.
Table 14 Lifecycle Management Strategy: Culverts
14.0
37
0
10
20
30
40
Culverts
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Burpee and Mills
Asset Management Plan 2024
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5.5 Forecasted Long-Term Replacement Needs
Figure 28 illustrates the cyclical short-, medium- and long-term
infrastructure rehabilitation and replacement requirements for the
Township's culverts. This analysis was run until 2063 to capture at least one
iteration of replacement for the longest-lived asset in Citywide Assets, the
Township's primary asset management system and asset register. The
Township's average annual requirements (red dotted line) for culverts total
$5,000 ($23,000 per 5-year bucket). Although actual spending may
fluctuate substantially from year to year, this figure is a useful benchmark
value for annual capital expenditure targets (or allocations to reserves) to
ensure projects are not deferred and replacement needs are met as they
arise.
Figure 28 Forecasted Capital Replacement Needs: Culverts 2024-2063
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to
be replaced. However, quantifying and monitoring these spikes is essential
for long-term financial planning, including establishing dedicated reserves.
OSIM condition assessments and a robust risk framework will ensure that
high-criticality assets receive proper and timely lifecycle intervention,
including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B
- 10-Year Capital Requirements.
$0
$25k
$50k
$75k
Backlog
2024-
2028
2029-
2033
2034-
2038
2039-
2043
2044-
2048
2049-
2053
2054-
2058
2059-
2063
Forecasted Capital Replacements
Culverts
5-year Capital Requirement
Total
Township of Burpee and Mills
Asset Management Plan 2024
47
5.6 Risk Analysis
The risk matrix below is generated using available asset data, including
condition, replacement costs, and material.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Township may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Township's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 29 Risk Matrix: Culverts
5.7 Levels of Service
The tables that follow summarize the Township's current levels of service
with respect to prescribed KPIs under Ontario Regulation 588/17 as well as
any additional performance measures that the Township has selected for this
AMP.
5.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2023)
Scope
Description of the traffic
that is supported by
municipal bridges (e.g.,
heavy transport
vehicles, motor vehicles,
emergency vehicles,
pedestrians, cyclists)
The municipality does not own any
bridges.
Township of Burpee and Mills
Asset Management Plan 2024
48
Service
Attribute
Qualitative Description
Current LOS (2023)
Quality
Description or images of
the condition of bridges
& culverts and how this
would affect use of the
bridges & culverts
The municipality does not own any
bridges. The drainage culverts in
the Township are overall in good
condition.
Table 15 O. Reg. 588/17 Community Levels of Service: Culverts
5.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2023)
Scope
% of bridges in the Township with
loading or dimensional restrictions
N/A
Quality
Average bridge condition index
value for bridges in the Township
N/A
Average bridge condition index
value for culverts in the Township
62%
Table 16 O. Reg. 588/17 Technical Levels of Service: Culverts
5.8 Proposed Levels of Service
As per O. Reg. 588/17, Burpee and Mills is mandated to document its
proposed levels of service for Culverts. The table that follows summarizes
the Municipality's proposed levels of service for Culverts, for the following 10
years.
Service
Attribute
LOS Metric
Current
LOS
Target
LOS
Trend
Scope
Average bridge condition index value for culverts in
the Township
62%
40-59%
↓
Table 17 O. Reg. 588/17 Proposed Levels of Service: Culverts
Township of Burpee and Mills
Asset Management Plan 2024
49
5.8.1
Background
Burpee and Mills culverts are in good (BCI > 60) condition. Rehabilitation/
replacement events for culverts are expensive. The target level of service
reflects the fact that Burpee and Mills has a small taxpayer base, along with
the necessary reliance on grants to conduct major rehabilitation events.
5.8.2
Achievability
Culverts in Burpee and Mills have long estimated useful lives (35-40 years).
With the asset class deteriorating at an acceptable rate, Burpee and Mills
should achieve its target level of service.
5.8.3
Affordability
The Township will continue to follow its current lifecycle management/
financial strategy to achieve its target level of service. Operating efficiency is
expected to decrease as the assets age, and operation and maintenance
associated costs increase.
For more information, refer to the financial strategy portion of this AMP in
Section 11. A detailed 10-year capital replacement forecast can be found in
Appendix B - 10-Year Capital Requirements.
5.8.4
Growth
Please refer to section 10 of this AMP for information on the effects of
growth on proposed levels of service.
5.8.5
Risks
The following risks are associated with the defined proposed levels of
service:
- Increase in operation and maintenance costs
- Increased likelihood of unforeseen road closure to repair culverts
- Public liability
- Detours (which can impact critical services)
Township of Burpee and Mills
Asset Management Plan 2024
50
Non-Core Assets
Buildings
Replacement
Cost
Average
Condition
Financial Capacity
$1.6 m
Fair
Annual Requirement:
$65,000
Funding Available:
$3,000
Annual Deficit:
$62,000
Land Improvements
Replacement
Cost
Average
Condition
Financial Capacity
$10k
Very Poor
Annual Requirement:
$0
Funding Available:
$0
Annual Deficit:
$0
Vehicles
Replacement
Cost
Average
Condition
Financial Capacity
$367k
Good
Annual Requirement:
$37,000
Funding Available:
$37,000
Annual Deficit:
$0
Machinery & Equipment
Replacement
Cost
Average
Condition
Financial Capacity
$750k
Fair
Annual Requirement:
$75,000
Funding Available:
$3,000
Annual Deficit:
$72,000
Township of Burpee and Mills
Asset Management Plan 2024
51
6. Buildings
The Township's buildings portfolio includes the municipal office, public works
garage, sand shed, transfer station and cemetery storage facility. The total
current replacement of buildings is estimated at approximately $1.6 million.
6.1 Inventory & Valuation
Table 16 summarizes the quantity and current replacement cost of all
buildings assets available in the Municipality's asset register. Buildings
assets are not componentized. The quantity listed represents the number of
asset records currently available for each department.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Cemetery Storage
100
Area (sq ft)
$16,000
CPI
Municipal Office
10,000
Area (sq ft)
$1,030,000
CPI
Public Works
Garage
1,600
Area (sq ft)
$364,000
CPI
Sand Shed
5,000
Area (sq ft)
$138,000
CPI
Transfer Station
1,600
Area (sq ft)
$76,000
CPI
TOTAL
$1,625,000
Table 18 Detailed Asset Inventory: Buildings
Figure 30 Portfolio Valuation: Buildings
$16k
$76k
$138k
$364k
$1.0m
$0
$200k
$400k
$600k
$800k
$1m
$1m
Cemetery Storage
Transfer Station
Sand Shed
Public Works Garage
Municipal Office
Current Replacement Cost
Total Current Replacement Cost: $1,624,798
Township of Burpee and Mills
Asset Management Plan 2024
52
6.2 Asset Condition
Figure 31 summarizes the replacement cost-weighted condition of the
Township's buildings portfolio. Based mostly on age-based data, 100% of
buildings assets are in fair or better condition. Assets in fair condition may
require rehabilitation or replacement in the medium term and should be
monitored for further degradation in condition. As buildings are not
componentized, condition data is presented only at the site level, rather than
at the individual element or component level within each building. This
drawback is further compounded by the lack of assessed condition data,
requiring the use of age-based estimates only.
Figure 31 Asset Condition: Buildings Overall
Figure 32 summarizes the age-based condition of buildings by each
department. Componentization of assets and integration of condition
assessments will provide a more accurate and reliable estimation of the
condition of various facilities.
Figure 32 Asset Condition: Buildings by Segment
Fair,
$1,122,000,
69%
Good,
$364,000,
22%
Very Good,
$138,000,
9%
$138k
$364k
$16k
$1.0m
$76k
0%
25%
50%
75%
100%
Cemetery
Storage
Municipal Office
Public Works
Garage
Sand Shed
Transfer Station
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Burpee and Mills
Asset Management Plan 2024
53
Buildings assets are unique in that they rarely require the need for
replacement based solely on condition. It is typical that, in addition to
condition, other factors, such as capacity, will impact the asset's ability to
serve the purpose originally intended.
6.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 33 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets.
Figure 33 Estimated Useful Life vs. Asset Age: Buildings
14.0
14.0
9.0
4.0
14.0
25
25
25
25
25
0
5
10
15
20
25
30
Cemetery Storage Municipal OfficePublic Works Garage
Sand Shed
Transfer Station
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Burpee and Mills
Asset Management Plan 2024
54
6.4 Current Approach to Lifecycle Management
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.
Table 17 outlines the Township's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance
Maintenance is triggered by inspections identifying
safety, accessibility, functionality, and structural issues.
Rehabilitation/
Replacement
Rehabilitations are considered on an as needed basis
The primary considerations for asset replacement are
asset failure, availability or grant funding.
Inspection
Internal inspections are conducted as needed to identify
any maintenance concerns
Table 19 Lifecycle Management Strategy: Buildings
6.5 Forecasted Long-Term Replacement Needs
Figure 34 illustrates the cyclical short-, medium- and long-term
infrastructure replacement requirements for the Township's buildings
portfolio. This analysis was run until 2048 to capture at least one iteration of
replacement for the longest-lived asset in Citywide Assets. The Township's
average annual requirements (red dotted line) total $65,000 ($325,000 per
5-year bucket) for all buildings. Although actual spending may fluctuate
substantially from year to year, this figure is a useful benchmark value for
annual capital expenditure targets (or allocations to reserves) to ensure
projects are not deferred and replacement needs are met as they arise.
Township of Burpee and Mills
Asset Management Plan 2024
55
Figure 34 Forecasted Capital Replacement Needs Buildings 2024-2048
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to
be replaced. However, quantifying and monitoring these spikes is essential
for long-term financial planning, including establishing dedicated reserves. In
addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements. In
the case of buildings and facilities, detailed componentization is necessary to
develop more reliable lifecycle forecasts that reflect the needs of individual
elements and components.
A detailed 10-year capital replacement forecast can be found in Appendix B
- 10-Year Capital Requirements.
6.6 Risk Analysis
The risk matrix below is generated using available asset data, including
condition and replacement costs.
The matrix classifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Township may consider integrating relevant
$0
$200k
$400k
$600k
$800k
$1.0m
$1.2m
Backlog
2024-
2028
2029-
2033
2034-
2038
2039-
2043
2044-
2048
Forecasted Capital Replacements
Cemetery Storage
Municipal Office
Public Works Garage
Sand Shed
Transfer Station
5-year Capital Requirement
Total
Township of Burpee and Mills
Asset Management Plan 2024
56
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Township's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 35 Risk Matrix: Buildings
6.7 Levels of Service
The tables that follow summarize the Township's current levels of service.
There are no specifically prescribed KPIs under Ontario Regulation 588/17
for non-core assets, therefore the KPIs below represent performance
measures that the Township has selected for this AMP.
6.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2023)
Scope
Description, which
may include maps, of
the types of facilities
that the municipality
operates and
maintains
Facilities within Burpee and Mills
include those dedicated to
administration, such as the
Municipal Office.
Public works is supported by the
public works garage, sand shed,
and transfer station.
Table 20 Community Levels of Service: Buildings
6.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2023)
Quality
Average condition of buildings (e.g.
very good, good, fair, poor or very
poor)
50%
Table 21 Technical Levels of Service: Buildings
Township of Burpee and Mills
Asset Management Plan 2024
57
6.8 Proposed Levels of Service
As per O. Reg. 588/17, Burpee and Mills is mandated to document its
proposed levels of service for Buildings. The table that follows summarizes
the Municipality's proposed levels of service for Buildings, for the following
10 years.
Service
Attribute
LOS Metric
Current
LOS
Target
LOS
Trend
Scope
Average condition of buildings (e.g. very
good, good, fair, poor or very poor)
50%
50%
↔
Table 22 O. Reg. 588/17 Proposed Levels of Service: Buildings
6.8.1
Background
The current approach to rehabilitation/replacement for buildings has been
successful in ensuring that the buildings remain in an adequate state of
repair.
The target level of service reflects the fact that Burpee and Mills has a small
taxpayer base, along with the necessary reliance on grants to conduct major
rehabilitation events.
6.8.2
Achievability
The lifecycle management strategies currently in place for buildings have
been successful in ensuring that buildings remain in an adequate state of
repair. Continuing to follow the defined lifecycle management strategy
should allow Burpee and Mills to achieve its target level of service.
6.8.3
Affordability
Considering the Township's buildings are in adequate condition, the
Township will continue to follow its current lifecycle management/ financial
strategy to achieve its target level of service. Operating efficiency is
expected to decrease as the assets age, and operation and maintenance
associated costs increase.
For more information, refer to the financial strategy portion of this AMP in
Section 11. A detailed 10-year capital replacement forecast can be found in
Appendix B - 10-Year Capital Requirements.
6.8.4
Growth
Please refer to section 10 of this AMP for information on the effects of
growth on proposed levels of service.
Township of Burpee and Mills
Asset Management Plan 2024
58
6.8.5
Risks
The following risks are associated with the defined proposed levels of
service:
- Increase in operation and maintenance costs
- Increased likelihood of unforeseen facility closures
Township of Burpee and Mills
Asset Management Plan 2024
59
7. Land Improvements
The Township's land improvements portfolio consists of the outdoor rink. The
total current replacement of land improvements is estimated at
approximately $10,000.
7.1 Inventory & Valuation
Table 20 summarizes the quantity and current replacement cost of all land
improvements assets available in the Township's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Outdoor Rink
1
Quantity
$10,000
CPI
TOTAL
$10,000
Table 23 Detailed Asset Inventory: Land Improvements
Figure 36 Portfolio Valuation: Land Improvements
$10k
$0
$2k
$4k
$6k
$8k
$10k
$12k
Outdoor rink
Current Replacement Cost
Total Current Replacement Cost: $10,073
Township of Burpee and Mills
Asset Management Plan 2024
60
7.2 Asset Condition
Figure 37 summarizes the replacement cost-weighted condition of the
Municipality's land improvement portfolio. Based on staff assessments,
100% of assets are in poor or worse condition. These assets may be
candidates for replacement in the short term.
Figure 37 Asset Condition: Land Improvements Overall
Figure 38 summarizes the age-based condition of land improvements by
each department.
Figure 38 Asset Condition: Land Improvements by Segment
Very Poor,
$10,000,
100%
$10k
0%
25%
50%
75%
100%
Outdoor rink
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Burpee and Mills
Asset Management Plan 2024
61
7.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 39 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets.
Figure 39 Estimated Useful Life vs. Asset Age: Land Improvements
7.4 Current Approach to Lifecycle Management
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.
23.0
25
22
23
23
24
24
25
25
26
Outdoor rink
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Burpee and Mills
Asset Management Plan 2024
62
Table 21 outlines the Township's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance
Maintenance activities are completed on a reactive basis
when operational issues are identified, through
complaints, service requests, or ad-hoc inspections
Rehabilitation /
Replacement
Without the availability of up-to-date condition
assessment information replacement activities are purely
reactive in nature
Inspections
Inspections are conducted on an ad-hoc basis
Table 24 Lifecycle Management Strategy: Land Improvements
7.5 Forecasted Long-Term Replacement Needs
Figure 40 illustrates the cyclical short-, medium- and long-term
infrastructure replacement requirements for the Township's land
improvements portfolio. This analysis was run until 2028 to capture at least
one iteration of replacement for the longest-lived asset in Citywide Assets.
The Township's average annual requirements (red dotted line) total $0 for all
land improvements. Although actual spending may fluctuate substantially
from year to year, this figure is a useful benchmark value for annual capital
expenditure targets (or allocations to reserves) to ensure projects are not
deferred and replacement needs are met as they arise.
Figure 40 Forecasted Capital Replacement Needs: Land Improvements 2024-
2048
$0
$2k
$4k
$6k
$8k
$10k
$12k
Backlog
2024-
2028
Forecasted Capital
Replacements
Outdoor rink
5-year Capital Requirement
Total
Township of Burpee and Mills
Asset Management Plan 2024
63
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to
be replaced. However, quantifying and monitoring these spikes is essential
for long-term financial planning, including establishing dedicated reserves. In
addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B
- 10-Year Capital Requirements.
7.6 Risk Analysis
The risk matrix below is generated using available asset data, including
condition, and replacement costs.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Township may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Township's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 41 Risk Matrix: Land Improvements
7.7 Levels of Service
The tables that follow summarize the Township's current levels of service.
There are no specifically prescribed KPIs under Ontario Regulation 588/17
for non-core assets, therefore the KPIs below represent performance
measures that the Township has selected for this AMP.
Township of Burpee and Mills
Asset Management Plan 2024
64
7.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2023)
Scope
Description, which may
include maps, of the
outdoor recreational
facilities that the
municipality operates and
maintains
The Township's outdoor rink
compromises their land
improvement assets.
Table 25 Community Levels of Service: Land Improvements
7.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2023)
Quality
Average condition of outdoor
recreation facilities and land
improvements in the municipality
Very Poor
Table 26 Technical Levels of Service: Land Improvements
7.8 Proposed Levels of Service
As per O. Reg. 588/17, Burpee and Mills is mandated to document its
proposed levels of service for Land Improvements. The table that follows
summarizes the Municipality's proposed levels of service for Land
Improvements, for the following 10 years.
Service
Attribute
LOS Metric
Current
LOS
Target
LOS
Trend
Scope
Average condition of outdoor recreation
facilities and land improvements in the
municipality
Very
Poor
Fair
↑
Table 27 O. Reg. 588/17 Proposed Levels of Service: Land Improvements
7.8.1
Background
The land improvements category consists of solely the outdoor rink. The rink
is approaching the end of its useful life, based on the defined estimated
useful life of 25 years, in the next two years. The most recent condition
assessment was applied in 2022, when staff indicated the rink was in poor
condition.
Township of Burpee and Mills
Asset Management Plan 2024
65
The target level of service reflects the fact that the rink replacement has
been scheduled for 2028 in the 10-year capital forecast developed by
Citywide.
7.8.2
Achievability
The 10-year capital forecast developed by Citywide indicates that
replacement of the outdoor rink should occur in 2028, and this has been
accounted for in the financial strategy. This will allow the Township to
achieve the target level of service.
Alternatively, if the outdoor rink is still in adequate operating condition, the
Township can review the applied condition assessment and update it to
accurately reflect the condition of the rink. This will allow the Township to
achieve the target level of service.
7.8.3
Affordability
If the Township implements the recommendations provided by the financial
strategy developed for this AMP, they will have sufficient funds to achieve
this target level of service.
For more information, refer to the financial strategy portion of this AMP in
Section 11. A detailed 10-year capital replacement forecast can be found in
Appendix B - 10-Year Capital Requirements.
7.8.4
Growth
Please refer to section 10 of this AMP for information on the effects of
growth on proposed levels of service.
7.8.5
Risks
The following risks are associated with the defined proposed levels of
service:
- Increase in operation and maintenance costs
- Deteriorating rink features
Township of Burpee and Mills
Asset Management Plan 2024
66
8. Vehicles
The Township's vehicles portfolio includes 5 assets that support a variety of
general and essential services, including public works and the fire
department. The total current replacement of vehicles is estimated at
approximately $367,000.
8.1 Inventory & Valuation
Table 24 summarizes the quantity and current replacement cost of all
vehicle assets available in the Township's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Fire Department
2
Quantity
$154,000
CPI
Road Department
3
Quantity
$213,000
CPI
TOTAL
$367,000
Table 28 Detailed Asset Inventory: Vehicles
Figure 42 Portfolio Valuation: Vehicles
$154k
$213k
$0
$100k
$200k
$300k
Fire Dept
Road Dept
Current Replacement Cost
Total Current Replacement Cost: $366,890
Township of Burpee and Mills
Asset Management Plan 2024
67
8.2 Asset Condition
Figure 43 summarizes the replacement cost-weighted condition of the
Township's vehicles portfolio. Based on staff assessments, 84% of vehicles
are in fair or better condition, with the remaining 16% are in poor or worse
condition. These assets may be candidates for replacement in the short
term; similarly, assets in fair condition may require rehabilitation or
replacement in the medium term and should be monitored for further
degradation in condition.
Figure 43 Asset Condition: Vehicles Overall
Figure 44 summarizes the condition of vehicles by each department. The
majority of all vehicles across all asset segments are in poor or worse
condition.
Figure 44 Asset Condition: Vehicles by Segment
Very Poor, $42,000,
12%
Poor,
$16,000, 4%
Good,
$130,000,
35%
Very Good,
$179,000,
49%
$179k
$112k
$18k
$16k
$42k
0%
25%
50%
75%
100%
Fire Dept
Road Dept
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Township of Burpee and Mills
Asset Management Plan 2024
68
8.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 45 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets.
Figure 45 Estimated Useful Life vs. Asset Age: Vehicles
Age analysis reveals that, on average, most vehicles are in moderate stages
of their expected life. Vehicles in environmental services remain in service
beyond their established useful life.
5.3
5.1
10
10
0
2
4
6
8
10
12
Fire Dept
Road Dept
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Burpee and Mills
Asset Management Plan 2024
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8.4 Current Approach to Lifecycle Management
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 Township's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance
Oil changes and routine maintenance is completed as
needed
All other maintenance activities are completed on a
reactive basis when operational issues are identified (e.g.,
mechanical breakdown, deficiencies identified during daily
inspections)
Replacement
Replacements are considered on an as-needed basis and
when maintenance is no longer cost effective
Inspection
Vehicles are inspected by the operator daily before use,
however, these inspections identify deficiencies but do
not provide overall condition ratings
External contractors assess vehicles on an annual basis
for safety inspections
Table 29 Lifecycle Management Strategy: Vehicles
8.5 Forecasted Long-Term Replacement Needs
Figure 46 illustrates the cyclical short-, medium- and long-term
infrastructure replacement requirements for the Township's vehicles
portfolio. This analysis was run until 2033 to capture at least one iteration of
replacement for the longest-lived asset in Citywide Assets. The Township's
average annual requirements (red dotted line) total $37,000 ($183,000 per
5-year bucket) for all vehicles. Although actual spending may fluctuate
substantially from year to year, this figure is a useful benchmark value for
annual capital expenditure targets (or allocations to reserves) to ensure
projects are not deferred and replacement needs are met as they arise.
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Figure 46 Forecasted Capital Replacement Needs: Vehicles 2024-2033
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to
be replaced. However, quantifying and monitoring these spikes is essential
for long-term financial planning, including establishing dedicated reserves. In
addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B
- 10-Year Capital Requirements.
8.6 Risk Analysis
The risk matrix below is generated using available asset data, including
condition and replacement costs.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Township's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
$0
$100k
$200k
$300k
$400k
Backlog
2024-
2028
2029-
2033
Forecasted Capital
Replacements
Fire Dept
Road Dept
5-year Capital Requirement
Total
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Figure 47 Risk Matrix: Vehicles
8.7 Levels of Service
The tables that follow summarize the Township's current levels of service.
There are no specifically prescribed KPIs under Ontario Regulation 588/17
for non-core assets, therefore the KPIs below represent performance
measures that the Township has selected for this AMP.
8.7.1
Community Levels of Service
Service
Attribute
Qualitative
Description
Current LOS (2023)
Scope
Description, which
may include images,
of the types of
vehicles (i.e. light,
medium, and heavy
duty) that the
municipality
operates and the
services that they
help to provide to
the community
Fire department vehicles include a fire
pumper and fire tanker, ensuring
readiness for emergency response.
Roads department vehicles include light
and heavy duty trucks ranging from
pick-up trucks to snow plows to ensure
safe road conditions and managing
infrastructure during inclement weather
and construction projects.
Table 30 Community Levels of Service: Vehicles
8.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2023)
Quality
Average condition of vehicles
Good
Table 31 Technical Levels of Service: Vehicles
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8.8 Proposed Levels of Service
As per O. Reg. 588/17, Burpee and Mills is mandated to document its
proposed levels of service for Vehicles. The table that follows summarizes
the Municipality's proposed levels of service for Vehicles, for the following 10
years.
Service
Attribute
LOS Metric
Current
LOS
Target
LOS
Trend
Scope
Average condition of vehicles
Good
Good
↔
Table 32 O. Reg. 588/17 Proposed Levels of Service: Vehicles
8.8.1
Background
Burpee and Mills vehicles are in good condition. The current lifecycle
management strategies applied to the vehicles, including regular review of
the vehicles condition, have been successful in ensuring the vehicles remain
in an adequate state of repair.
8.8.2
Achievability
While vehicles deteriorate at a faster rate compared to other asset classes
(10 years), historically, vehicles within the Township are used well beyond
their intended useful life.
The Township's target level of service is achievable if it continues its current
lifecycle management strategies.
8.8.3
Affordability
The Township will continue to follow its current lifecycle management/
financial strategy in order to achieve its target level of service. Operating
efficiency is expected to decrease as the assets age, and operation and
maintenance associated costs increase.
For more information, refer to the financial strategy portion of this AMP in
Section 11. A detailed 10-year capital replacement forecast can be found in
Appendix B - 10-Year Capital Requirements.
8.8.4
Growth
Please refer to section 10 of this AMP for information on the effects of
growth on proposed levels of service.
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8.8.5
Risks
The following risks are associated with the defined proposed levels of
service:
- Increase in operation and maintenance costs
- The fire pumper and tanker provide critical services for the Township.
Failure of either of these assets, as they approach the end of their
estimated useful life, would have numerous negative impacts on the
community (safety, financial, etc.)
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9. Machinery & Equipment
The Township's machinery and equipment portfolio includes a variety of
assets that support a combination of general and essential services,
including public works and fire. The total current replacement of vehicles is
estimated at approximately $750,000.
9.1 Inventory & Valuation
Table 28 summarizes the quantity and current replacement cost of all
machinery & equipment assets available in the Township's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Fire Department
1
Quantity
$72,000
CPI
Municipal Office
1
Quantity
$49,000
CPI
Public Works
13
Quantity
$628,000
CPI
TOTAL
$750,000
Table 33 Detailed Asset Inventory: Machinery & Equipment
Figure 48 Portfolio Valuation: Machinery & Equipment
$49k
$72k
$628k
$0
$100k
$200k
$300k
$400k
$500k
$600k
$700k
Municipal Office
Fire Dept
Public Works
Current Replacement Cost
Total Current Replacement Cost: $749,642
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9.2 Asset Condition
Figure 49 summarizes the replacement cost-weighted condition of the
Township's machinery and equipment portfolio. Based on a combination of
assessed conditions and age data, 63% of assets are in fair or better
condition; the remaining 37% are in poor or worse condition. These assets
may be candidates for replacement in the short term; similarly, assets in fair
condition may require rehabilitation or replacement in the medium term and
should be monitored for further degradation in condition.
Figure 49 Asset Condition: Machinery & Equipment Overall
Figure 50 summarizes the age-based condition of machinery & equipment by
each department. The majority of assets all assets are in poor or worse
condition are concentrated primarily administration and the fire department.
Figure 50 Asset Condition: Machinery & Equipment by Segment
Very Poor,
$257,000,
34%
Poor, $21,000,
3%
Good,
$307,000,
41%
Very Good,
$165,000,
22%
$165k
$49k
$258k
$21k
$72k
$185k
0%
25%
50%
75%
100%
Fire Dept
Municipal Office
Public Works
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
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9.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 51 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets.
Figure 51 Estimated Useful Life vs. Asset Age: Machinery & Equipment
9.4 Current Approach to Lifecycle Management
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 Township's current lifecycle management
strategy.
14.0
14.0
7.1
10
10
10
0
2
4
6
8
10
12
14
16
Fire Dept
Municipal Office
Public Works
Number of Years
Weighted Average Age
Weighted Average EUL
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Activity Type
Description of Current Strategy
Maintenance
Maintenance activities vary by department and are specific
to each piece of equipment, but typically as per
manufacturer recommendations
Fire Protection Services equipment is subject to a much
more rigorous inspection and maintenance program
compared to most other departments
Replacement
The replacement of machinery & equipment depends on
deficiencies identified by operators that may impact their
ability to complete required tasks
Table 34 Lifecycle Management Strategy: Machinery & Equipment
9.5 Forecasted Long-Term Replacement Needs
Figure 52 illustrates the cyclical short-, medium- and long-term
infrastructure replacement requirements for the Township's machinery and
equipment portfolio. This analysis was run until 2033 to capture at least one
iteration of replacement for the longest-lived asset in Citywide Assets. The
Township's average annual requirements (red dotted line) total $75,000
($375,000 per 5-year bucket) for all machinery and equipment. Although
actual spending may fluctuate substantially from year to year, this figure is a
useful benchmark value for annual capital expenditure targets (or allocations
to reserves) to ensure projects are not deferred and replacement needs are
met as they arise.
Figure 52 Forecasted Capital Replacement Needs: Machinery & Equipment
2024-2033
$0
$200k
$400k
$600k
Backlog
2024-
2028
2029-
2033
Forecasted Capital
Replacements
Fire Dept
Municipal Office
Public Works
5-year Capital Requirement
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Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to
be replaced. However, quantifying and monitoring these spikes is essential
for long-term financial planning, including establishing dedicated reserves. In
addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B
- 10-Year Capital Requirements.
9.6 Risk Analysis
The risk matrix below is generated using available asset data, including
condition and replacement costs.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Township may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Township's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 53 Risk Matrix: Machinery & Equipment
9.7 Levels of Service
The tables that follow summarize the Township's current levels of service.
There are no specifically prescribed KPIs under Ontario Regulation 588/17
for non-core assets, therefore the KPIs below represent performance
measures that the Township has selected for this AMP.
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9.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2023)
Scope
Description, which may
include images, of the
types of equipment that
the municipality
operates and the
services that they help
to provide to the
community
Public Works is supported by
equipment such as graders,
snowplows, trailers, mowers, and
heavy equipment.
Other equipment includes fire
fighting equipment, and equipment
for the municipal office.
Table 35 Community Levels of Service: Machinery & Equipment
9.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2023)
Quality
Average condition of equipment
Fair
Table 36 Technical Levels of Service: Machinery & Equipment
9.8 Proposed Levels of Service
As per O. Reg. 588/17, Burpee and Mills is mandated to document its
proposed levels of service for Machinery & Equipment. The table that follows
summarizes the Municipality's proposed levels of service for Machinery &
Equipment, for the following 10 years.
Service
Attribute
LOS Metric
Current
LOS
Target
LOS
Trend
Scope
Average condition of equipment
Fair
Fair
↔
Table 37 O. Reg. 588/17 Proposed Levels of Service: Machinery & Equipment
9.8.1
Background
Burpee and Mill's machinery and equipment is in fair condition, with majority
of public works equipment in good or very good condition.
The target level of service reflects the fact that Burpee and Mills has a small
taxpayer base, along with the necessary reliance on grants. The Township
has indicated that the current lifecycle management strategies have been
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successfully implemented, keeping the machinery and equipment in an
adequate state of repair.
9.8.2
Achievability
The lifecycle management strategies currently in place for machinery and
equipment have been successful in ensuring that machinery and equipment
remains in an adequate state of repair. Continuing to follow the defined
lifecycle management strategy should allow Burpee and Mills to achieve its
target level of service.
9.8.3
Affordability
The Township will continue to follow its current lifecycle management/
financial strategy in order to achieve its target level of service. Operating
efficiency is expected to decrease as the assets age, and operation and
maintenance associated costs increase.
For more information, refer to the financial strategy portion of this AMP in
Section 11. A detailed 10-year capital replacement forecast can be found in
Appendix B - 10-Year Capital Requirements.
9.8.4
Growth
Please refer to section 10 of this AMP for information on the effects of
growth on proposed levels of service.
9.8.5
Risks
The following risks are associated with the defined proposed levels of
service:
- Increase in operation and maintenance costs
- Higher likelihood of catastrophic asset failure
- Negative impact on community (financial, safety, etc.)
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Strategies
Growth
Financial Strategy
Recommendations
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10. Growth
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 Township 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.
10.1 District of Manitoulin Official Plan
The District of Manitoulin Official Plan has been adopted by the Manitoulin
Planning Board on October 29, 2018. As a member municipality of the
Manitoulin Planning Board, the Township of Burpee and Mills has adopted the
plan to guide and manage a pattern of development over the life of the Plan.
The Official Plan is a planning document that directs future growth, guides
the development, and improve community sustainability by establishing
clear and resilient policies and principles. The Official Plan was prepared
based on the changing demographic, economic and environmental condition
since the last provincially approved Official Plan of 1979.
The goal of the Official Plan is to support the member municipality to remain
healthy, vibrant and sustainable with quality services, amenities and a
strong economy. The policies of the Plan provide direction for not only the
physical infrastructure but also the environmental features in the planning
area. The planning horizon for the plan spans 20 years, covering to 2036.
In order to develop a resilient community, the Plan intends to direct 60% or
more of residential lot creation to Settlement Areas which including urban
areas and village areas. The Township are intended to experience limited
growth through the development or redevelopment of existing vacant or
under-utilized lots to maintain its rural character and protect the
environment and natural features. The Plan indicate the importance of
maintaining the district's agriculture industry, expanding on tourism industry
and encouraging other sustainable economic development.
The population of the Manitoulin District is projected to reach 8,900 in 2036.
However, the working population (ages 15-69 years) and employment of the
District is projected to decrease slightly. With respect to these projections,
the Township is expected to experience similar trends. According to
Statistics Canada, 20% of the population of the Township will reach their
retirement ages in the next 10 years. To accommodate anticipated
population growth and address the accessibility needs of the aging
population, sufficient land is to be designated for special needs housing,
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employment uses and provide a variety of opportunities throughout the
Township.
The following table outlines population, private dwellings and working
population changes to Burpee and Mills between 2011and 2021 from
Statistics Canada, for which the Township will be required to provide
services.
Year
Population
Private Dwellings
Working Population
(age 15-69)
2011
308
255
240
2016
343
274
250
2021
382
292
245
Table 38 Population, Private Dwellings, and Working Population
10.2 Regional Growth (Manitoulin Island)
In 2021 the Come North Conference Report was produced by FedNor and
Government of Canada. The document describes short, medium, and long-
term objectives for all communities in Northern Ontario as it relates to
population growth.
According to the report all 11 Census Districts in Northern Ontario (Nipissing,
Parry Sound, Manitoulin, Sudbury, Greater Sudbury, Timiskaming, Cochrane,
Algoma, Thunder Bay, Rainy River, Kenora) are currently experiencing the
following trends: population decline, population aging, or labour shortages.
The report highlights a risk of these communities becoming economically
unsustainable unless population retention and attraction numbers improve.
The risk is the result of the dependency ratio increasing. The dependency
ratio is the ratio of people unable to support themselves without assistance;
people between the ages of 0 and 14 and 64 and older.
The goal is to achieve a dependency ratio of 0.5. In 1996, every Census
District was at or near the goal but by 2016, none were below and more
than half had a ratio in excess of 0.6. The following graph displays the
dependency ratio for each Census District in 1996 and 2016 along with a
projected ratio for the year 2036.
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Figure 54 Northern Ontario Population Projections
The Township of Burpee and Mills is found in the Manitoulin District, which is
expected to reach a dependency ratio of 1.00 by 2036.
The population in the Manitoulin District remains relatively constant since
2006. The following graph from the 2017 Manitoulin District Report by the
Northern Policy Institute, displays the population and employment trends
from 1986 to 2016.
Figure 55 Manitoulin District Population and Employment Trends
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Population growth in the region is the result of interprovincial in-migration;
net interprovincial in-migration equaled 730 between 2001 and 2016.
The following table, found in the same report, shows population projections
in Manitoulin District for the years 2013 to 2041.
Year
Ages 0-19
Ages 20-64
Ages 65+
Total
2017
2,936
7,304
3,198
13,438
2022
2,881
7,051
3,653
13,585
2030
2,856
6,408
4,460
13,724
2041
2,831
6,127
4,831
13,789
Table 39 Manitoulin District Population Projects: 2013-2041
According to the census data, the population is projected to remain constant
similar to the projection in the above report. Given the upward trends of
population and employment, Manitoulin District and the communities within
the region, are likely to experience continuous growth.
10.3 Impact of Growth on Lifecycle Activities
By July 1, 2025, the Township's asset management plan was required to
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.
The growth of Manitoulin Island and its townships will present challenges to
service delivery and service delivery assets across the region. The Island and
its communities recognize this and have detailed strategies in their plans
and communication documents to mitigate the impact on services and
ensure long-term viability for residents. This includes a commitment to
developing existing townships and population centers, leveraging current
infrastructure, staff, and processes to reduce the cost of expanding capacity.
Additionally, there will be long-term funding obligations to maintain and
enhance lifecycle activities in response to a growing population.
To accommodate growth while maintaining fiscal responsibility, Burpee and
Mills asset management strategies should include:
- Data Driven Planning: Utilizing updated growth forecasts to prioritize
infrastructure investments based on long-term needs.
- Lifecycle Cost Analysis: Ensuring that new infrastructure investments
consider long-term maintenance and renewal costs to optimize service
delivery.
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11. Financial Strategy
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 Township of Burpee
and Mills 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. Canada Community-Building Fund (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
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will be managed. In determining the legitimacy of a funding shortfall, the
Province may evaluate a Township's approach to the following:
1. In order to reduce financial requirements, consideration has been
given to revising service levels downward.
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.
11.1 Annual Requirements & Capital Funding
11.1.1
Annual Requirements
The annual requirements represent the amount the Township 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 Township must allocate approximately $668,000 annually to
address capital requirements for the assets included in this AMP.
Figure 56 Annual Capital Funding Requirements by Asset Category
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.
$5k
$37k
$65k
$75k
$486k
$200k
$400k
$600k
Land Improvements
Culverts
Vehicles
Buildings
Machinery & Equipment
Road Network
Average Annual Capital Requirements by Category
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However, for the Road Network, lifecycle management strategies have been
developed to identify capital costs that are realized through strategic
rehabilitation and renewal of the Township's roads. 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:
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.
Asset Category
Annual Requirements
(Replacement Only)
Annual
Requirements
(Lifecycle Strategy)
Difference
Road Network
$1,406,000
$486,000
$920,000
Table 40 Lifecycle Strategies Annual Savings
The implementation of a proactive lifecycle strategy for roads leads to a
potential annual cost avoidance of $920,000 for the Road Network. This
represents an overall reduction of the annual requirements by 35%. As the
lifecycle strategy scenario represents the lowest cost option available to the
Township, we have used these annual requirements in the development of
the financial strategy.
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11.1.2
Annual Funding Available
Based on a historical analysis of sustainable capital funding sources, the
Township is committing approximately $179,000 towards capital projects per
year. Given the annual capital requirement of $668,000, there is currently a
funding gap of $489,000 annually.
Figure 57 Annual Requirements vs. Capital Funding Available
11.2 Funding Objective
We have developed a scenario that would enable Burpee and Mills to achieve
full funding within 20 years for the following assets:
1. Tax Funded Assets: Road Network, Culverts, Buildings, Machinery &
Equipment, Land Improvements, Vehicles
Note: For the purposes of this AMP, we have excluded gravel 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.
$1k
$37k
$3k
$3k
$134k
$5k
$37k
$65k
$75k
$486k
$100k
$200k
$300k
$400k
$500k
$600k
Land Improvements
Culverts
Vehicles
Buildings
Machinery & Equipment
Road Network
Average Annual Capital Requirements vs. Actual Capital Reinvestment
by Category
Average Annual Requirements
Actual Reinvestment Rate
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11.3 Financial Profile: Tax Funded Assets
11.3.1
Current Funding Position
The following tables show, by asset category, Burpee and Mills'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
Require-
ment
Annual Funding Available
Annual
Deficit
Taxes
CCBF
OCIF
Total
Available
Road
Network
486,000
12,604
22,471
98,982
134,057
351,943
Culverts
5,000
231
1,018
1,249
3,751
Buildings
65,000
3,437
3,437
61,563
Machinery &
Equipment
75,000
3,000
3,000
72,000
Land
Improve-
ments
0
0
0
Vehicles
37,000
37,000
37,000
0
Total
668,000
56,041
22,702
100,000
178,743
489,257
Table 41 Annual Available Funding for Tax Funded Assets
The average annual investment requirement for the above categories is
$668,000. Annual revenue currently allocated to these assets for capital
purposes is $179,000 leaving an annual deficit of $489,000. Put differently,
these infrastructure categories are currently funded at 26.8% of their long-
term requirements.
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11.3.2 Full Funding Requirements
In 2023, the Township of Burpee and Mills had budgeted annual tax
revenues of approximately $832,242. 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
Road Network
42.3%
Culverts
0.5%
Buildings
7.4%
Machinery &
Equipment
8.7%
Land Improvements
0%
Vehicles
0%
Total
58.9%
Table 42 Tax Increase Requirements for Full Funding
The table below presents several options:
5 Years
10 Years
15 Years
20 Years
Infrastructure
Deficit
489,257
489,257
489,257
489,257
Change in Debt
Costs
N/A
N/A
N/A
N/A
Resulting
Infrastructure
Deficit:
489,257
489,257
489,257
489,257
Tax Increase
Required
58.8%
58.8%
58.8%
58.8%
Annually:
9.7%
4.8%
3.2%
2.4%
Table 43 Tax Increase Options 5-20 Years
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11.3.3
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 revenues by 2.4% 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) allocating the current CCBF and OCIF revenue as outlined previously.
c) 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 OCIF formula-
based funding, if applicable, since this funding is a multi-year
commitment3.
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 funding on an annual basis in 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 $212,00 for Machinery & Equipment.
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.
3 The Township should take advantage of all available grant funding programs and transfers from other levels of
government. While OCIF has historically been considered a sustainable source of funding, the program is currently
undergoing review by the provincial government. Depending on the outcome of this review, there may be changes
that impact its availability.
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11.4 Use of Reserves
11.4.1
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 Burpee and Mills.
Category
Balance at December 31, 2023
Road Network
71,680
Culverts
Buildings
24,200
Machinery &
Equipment
93,000
Land Improvements
Vehicles
87,345
Total Tax Funded:
276,225
Table 44 Burpee and Mills Reserve Balances
There is considerable debate in the municipal sector as to the appropriate
level of reserves that a Township should have on hand. There is no clear
guideline that has gained wide acceptance. Factors that municipalities should
take into account 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.
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These reserves are available for use by applicable asset categories during
the phase-in period to full funding. This coupled with Burpee and Mills'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.
11.4.2
Recommendation
In 2025, Ontario Regulation 588/17 required Burpee and Mills 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 on reserve balances.
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12. Recommendations & Key Considerations
12.1 Financial Strategies
1. Review the feasibility of adopting a full-funding scenario to achieve
100% of average annual funding requirement for the asset categories
analyzed. This includes:
a. Increasing taxes by 2.4% per year over a period of 20 years;
2. Continued allocation of OCIF and CCBF funding as previously outlined.
3. Increasing existing and future infrastructure budgets by the applicable
inflation index on an annual basis in addition to the deficit phase-in.
4. Continue to apply for project specific grant funding to supplement
sustainable funding sources.
12.2 Asset Data
1. Continuously review, refine, and calibrate lifecycle and risk profiles to
better reflect actual practices and improve capital projections. In
particular:
a. the timing of various lifecycle events, the triggers for treatment,
anticipated impacts of each treatment, and costs
b. the various attributes used to estimate the likelihood and
consequence of asset failures, and their respective weightings
2. Asset management planning is highly sensitive to replacement costs.
Periodically update replacement costs based on recent projects,
invoices, or estimates, as well as condition assessments, or any other
technical reports and studies. Material and labour costs can fluctuate
due to local, regional, and broader market trends, and substantially so
during major world events. Accurately estimating the replacement cost
of like-for-like assets can be challenging. Ideally, several recent
projects over multiple years should be used. Staff judgement and
historical data can help attenuate extreme and temporary fluctuations
in cost estimates and keep them realistic.
3. Like replacement costs, an asset's established serviceable life can have
dramatic impacts on all projections and analyses, including condition,
long-range forecasting, and financial recommendations. Periodically
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reviewing and updating these values to better reflect in-field
performance and staff judgement is recommended.
12.3 Risk & Levels of Service
1. Risk models and matrices can play an important role in identifying
high-value assets, and developing an action plan which may include
repair, rehabilitation, replacement, or further evaluation through
condition assessments. As a result, project selection and the
development of multi-year capital plans can become more strategic
and objective. Initial models have been built into Citywide for all asset
groups. These models reflect current data, which was limited. As the
data evolves and new attribute information is obtained, these models
should also be refined and updated.
2. Available data on current performance should be centralized and
tracked to support any calibration of service levels aligning with O.
Reg. 588's 2025 requirements on proposed levels of service.
3. Staff should monitor evolving local, regional, and environmental trends
to identify factors that may shape the demand and delivery of
infrastructure programs. These can include population growth, and the
nature of population growth; climate change and extreme weather
events; and economic conditions and the local tax base. This data can
also be used to review service level targets.
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Appendices
Appendix A - Infrastructure Report Card
Appendix B - 10-Year Capital Requirements
Appendix C - Level of Service Maps
Appendix D - Risk Rating Criteria
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1. Appendix A - Infrastructure Report Card
Asset Category
Replacement
Cost
Average
Condition
Financial Capacity
Road Network
$31 m
Good
Annual Requirement:
$486,000
Funding Available:
$134,000
Annual Deficit:
$352,000
Culverts
$176 k
Good
Annual Requirement:
$5,000
Funding Available:
$1,200
Annual Deficit:
$3,800
Buildings
$1.6 m
Fair
Annual Requirement:
$65,000
Funding Available:
$3,000
Annual Deficit:
$62,000
Land
Improvements
$10k
Very Poor
Annual Requirement:
$0
Funding Available:
$0
Annual Deficit:
$0
Vehicles
$367k
Good
Annual Requirement:
$37,000
Funding Available:
$37,000
Annual Deficit:
$0
Machinery &
Equipment
$750k
Fair
Annual Requirement:
$75,000
Funding Available:
$3,000
Annual Deficit:
$72,000
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2. Appendix B - 10-Year Capital Requirements
The tables below summarize the projected cost of lifecycle activities (rehabilitation and replacements) that
may be undertaken over the next 10 years to support current levels of service.
These projections are generated in Citywide and rely on the data available in the asset register. Assessed
condition data and replacement costs were used to assist in forecasting replacement needs for roads. For
all remaining assets, only age was used to determine forthcoming replacement needs.
The projections can be different from actual capital forecasts. Consistent data updates, particularly
condition, replacement costs, and regular upkeep of lifecycle models, will improve the alignment between
the system generated expenditure requirements, and the Township's capital expenditure forecasts.
Note: These projections are generated in Citywide and rely on the data available in the asset register. As
assessed condition data was not available for many buildings assets, age was used to determine
forthcoming replacement needs. Buildings and facilities often contain thousands of assets, each with its
own estimated useful life. Currently, however, as the Township's buildings are not fully componentized.
Over time, with improved and effective componentization, the alignment between the system generated
expenditure requirements, and the Township's capital expenditure forecasts will also increase.
a.
Road Network
Segment
Back-
log
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
LCB
$0
$0
$0
$0
$0
$34k
$33k
$0
$0
$290k
$320k
Signs
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total
$0
$0
$0
$0
$0
$34k
$33k
$0
$0 $290k
$320k
Table 45 System Generated 10-Year Capital Replacement Forecast: Road Network
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b.
Culverts
Segment
Back-
log
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Culverts
$0
$0
$0
$0
$0
$0
$0
$0
$9k
$7k
$0
Total
$0
$0
$0
$0
$0
$0
$0
$0
$9k
$7k
$0
Table 46 System Generated 10-Year Capital Replacement Forecast: Culverts
c.
Buildings
Segment
Back-
log
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Cemetery
Storage
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Municipal
Office
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Public Works
Garage
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sand Shed
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Transfer
Station
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Table 47 System Generated 10-Year Capital Replacement Forecast: Buildings
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d.
Land Improvements
Segment
Back-
log
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Outdoor Rink
$0
$0
$0
$0
$0
$10k
$0
$0
$0
$0
$0
Total
$0
$0
$0
$0
$0
$10k
$0
$0
$0
$0
$0
Table 48 System Generated 10-Year Capital Replacement Forecast: Land Improvements
e.
Vehicles
Segment
Back-
log
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Fire
Department
$0
$0
$42k
$0
$0
$0
$0
$112k
$0
$0
$0
Road
Department
$0
$0
$0
$0
$16k
$0
$0
$18k
$0
$179k
$0
Total
$0
$0
$42k
$0
$16k
$0
$0 $130k
$0 $179k
$0
Table 49 System Generated 10-Year Capital Replacement Forecast: Vehicles
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f.
Machinery & Equipment
Segment
Back-
log
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Fire
Department
$72k
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Municipal
Office
$0
$0
$0
$0
$0
$0
$0
$49k
$0
$0
$0
Public Works
$140k
$0
$45k
$0
$21k
$0
$0
$258k
$0
$165k
$0
Total $212k
$0
$45k
$0
$21k
$0
$0 $307k
$0 $165k
$0
Table 50 System Generated 10-Year Capital Replacement Forecast: Machinery & Equipment
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3. Appendix C - Level of Service Maps & Photos
Road Network Map
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4. Appendix D - Risk Rating Criteria
a.
Probability of Failure
Asset Category
Risk Criteria
Criteria
Weighting
Value/Range
Probability of
Failure Score
Road Network (Roads)
Condition
100%
4-5
1
3-4
2
2-3
3
1-2
4
0-1
5
Buildings
Machinery & Equipment
Vehicles
Land Improvements
Condition
100%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Culverts
Condition
80%
4-5
1
3-4
2
2-3
3
1-2
4
0-1
5
Pipe
Material
20%
Poly
2
Steel
3
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b.
Consequence of Failure
Asset Category
Risk Classification
Risk Criteria
Value/Range
Consequence of
Failure Score
Road Network
Economic
(100%)
Replacement
Cost
(100%)
$0-$10,000
1
$10,000-$50,000
2
$50,000-$100,000
3
$100,000-$500,000
4
$500,000+
5
Buildings
Land Improvements
Vehicles
Machinery & Equipment
Economic
(100%)
Replacement
Cost
(100%)
$0-$10,000
1
$10,000-$50,000
2
$50,000-$100,000
3
$100,000-$500,000
4
$500,000+
5
Culvers
Economic
(70%)
Replacement
Cost
(100%)
$0-$50
1
$50-$100
2
$100-$200,000
3
$200,000-$300,000
4
$300,000+
5
Operational
(30%)
Surface Type
(100%)
Gravel
2
LCB
4