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Asset
Management
Plan 2025
Dorion Township
June 2025
Dorion Township
Asset Management Plan 2025
i
This Asset Management Plan was prepared by:
Empowering your organization through advanced asset
management, budgeting & GIS solutions
Dorion Township
Asset Management Plan 2025
ii
Key Statistics
$18.5 M 2023 Replacement Cost of Asset
Portfolio
$105 k Replacement Cost of Infrastructure Per
Household
46%
Percentage of Assets in Fair or Better
Condition
90%
Percentage of Assets with Assessed
Condition Data
$182 K Annual Capital Infrastructure Deficit
(Proposed LOS)
10
Years
Recommended Timeframe for
Eliminating Annual Infrastructure Deficit
1.8%
Proposed Level of Service: Target
Investment Rate
0.8%
Actual Investment Rate
Dorion Township
Asset Management Plan 2025
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Table of Contents
1.
Executive Summary ............................................................................ 1
2.
Introduction & Context ........................................................................ 4
3.
Portfolio Overview - State of the Infrastructure ..................................... 20
4.
Portfolio Risk & Criticality ................................................................... 26
5.
Growth ........................................................................................... 27
6.
Proposed Levels of Service ................................................................. 30
7.
Financial Strategy ............................................................................. 43
8.
Recommendations & Key Considerations .............................................. 53
Appendices ........................................................................................... 54
Appendix A: Road Network ....................................................................... 55
Appendix B: Bridges & Culverts ................................................................. 63
Appendix C: Facilities .............................................................................. 68
Appendix D: Machinery & Equipment.......................................................... 74
Appendix E: Rolling Stock ........................................................................ 79
Appendix H - Risk Rating Criteria .............................................................. 84
Dorion Township
Asset Management Plan 2025
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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 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, Dorion 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 Compliance
With the development of this AMP Dorion Township has achieved compliance with
July 1, 2025, requirements under O. Reg. 588/17. This includes requirements for
proposed levels of service reporting for all asset categories.
- Road Network
- Bridges & Culverts
Core Assets
- Facilities
- Rolling Stock
- Machinery & Equipment
Non-Core Assets
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Asset Management Plan 2025
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1.3 Findings
The overall replacement cost of the asset categories included in this AMP totals
$18.5 million. 46% of all assets analyzed in this AMP are in fair or better condition
and assessed condition data was available for 90% of assets. For the remaining
10% of assets, assessed condition data was unavailable, and asset age was used to
approximate condition - a data gap that persists in most municipalities. Generally,
age misstates the true condition of assets, making assessments essential to
accurate asset management planning, and a recurring recommendation in this AMP.
The development of a long-term, sustainable financial plan requires an analysis of
whole lifecycle costs. This AMP uses a combination of proactive lifecycle strategies
(paved roads) and replacement only strategies (all other assets) to determine the
lowest cost option to maintain the current level of service.
To meet the proposed LOS, the Township 's average annual capital requirement
totals $338 thousand. Based on a historical analysis of sustainable capital funding
sources, the Township is committing approximately $156 thousand towards capital
projects or reserves per year. As a result, there is currently an annual funding gap
of $182 thousand.
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.
1.4 Recommendations
A financial strategy was developed to address the annual capital funding gap based
on meeting the proposed LOS. The following graphics shows annual tax change
required to fund the proposed LOS for the Township 's infrastructure based on a 10-
year plan:
Figure 2 Proposed Tax Changes to meet Proposed LOS
Tax-Funded
ASSETS
Average
Annual Tax
Change
2.1%
Dorion Township
Asset Management Plan 2025
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Recommendations to guide continuous refinement of the Township 's asset
management program. These include:
-
For assets that do not yet have condition assessments, consider a strategy
for obtaining them; for assets with condition assessments ensure they are
completed on a regular schedule and in a uniform manner.
-
To ensure accurate data complete regular data review and updates especially
to assessed condition and replacement cost.
-
Development and regularly review short- and long-term plans to meet capital
requirements
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Asset Management Plan 2025
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2. Introduction & Context
2.1 Community Profile
Dorion is a rural township located in Northwestern Ontario, approximately 70 km
east of Thunder Bay, within the Thunder Bay District. It is situated along Highway
11/17, part of the Trans-Canada Highway. As of the latest census (2021), Dorion
has a population of approximately 375 residents, reflecting its small, tight-knit
community character.
Census Characteristic
Dorion Township
Ontario
Population 2021
375
14,223,942
Population Change 2016-
2021
18.7%
5.8%
Total Private Dwellings
176
5,929,250
Population Density
1.8/km2
15.9/km2
Land Area
211.25 km2
892,411.76 km2
Table 1 Dorion Township Community Profile
Dorion is known for its scenic natural landscapes, including forests, rivers, and the
nearby Ouimet Canyon--a dramatic geological feature that is a popular tourist
destination. The township enjoys a boreal climate, with warm summers and cold,
snowy winters. The economy of Dorion is primarily resource-based, with forestry,
small-scale agriculture, and tourism playing key roles. Many residents also
commute to nearby communities such as Thunder Bay for employment.
Outdoor activities are central to life in Dorion, with opportunities for hiking, fishing,
hunting, snowmobiling, and camping. Ouimet Canyon Provincial Park is a major
attraction, offering panoramic views, walking trails, and interpretive programming.
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 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
Dorion Township
Asset Management Plan 2025
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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
Dorion Climate Profile
The Township of Dorion is in Northwestern Ontario within the Thunder Bay District.
The Township 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) - Dorion Township may experience the following
trends:
Higher Average Annual Temperature:
-
Between the years 1971 and 2000 the annual average temperature was 1.8
ºC
-
Under a high emissions scenario, the annual average temperatures are
projected to be 4.6 ºC by the year 2050 and 8.9 ºC by the end of the
century.
Increase in Total Annual Precipitation:
-
Under a high emissions scenario, Dorion Township is projected to experience
a 9% increase in precipitation by the year 2080 and a 14% 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.
Dorion Township
Asset Management Plan 2025
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2.2.2
Integration 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 because of climate change impacts
such as flooding, high heat, drought, and more frequent and intense storms.
To achieve the sustainable delivery of services, climate change considerations
should be incorporated into asset management practices. The integration of asset
management and climate change adaptation observes industry best practices and
enables the development of a holistic approach to risk management.
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Asset Management Plan 2025
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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.
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
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Asset Management Plan 2025
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Management Policy and an Asset Management Strategy, concluding with an Asset
Management Plan.
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 principles guiding the
Township's approach to asset management activities.
The Township adopted its Strategic Asset Management Policy on July 17th, 2018, in
accordance with Ontario Regulation 588/17. The Asset Management Policy
discusses the purpose and background of Asset Management and how it aligns with
the Township's strategic directions. Roles and responsibilities in asset management
are also identified and key asset management principles are outlined. These key
principles include:
➢ Forward Looking
➢ Strategically Aligned
➢ Evidence-based
➢ Service Focused
Strategic Plan
Asset
Management
Policy
Asset
Management
Strategy
Asset
Management
Plan
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Asset Management Plan 2025
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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.
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.
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.
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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
Activities that
rectify defects or
deficiencies that
are already
present and may
be affecting
asset
performance
$$$
Useful life may not be extended as expected;
May be costlier in the long run when assessed
against full reconstruction or replacement;
Loss or disruption of service, particularly for
underground assets;
Replacement/
Reconstruction
Asset end-of-life
activities that
often involve the
complete
replacement of
assets
$$$$
$
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 and can be found in Appendix A to E. Staff will continue to evolve and
innovate current practices for developing and implementing proactive lifecycle
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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.
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.
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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.
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
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
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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. Appendix A to E includes risk summaries by asset class and Appendix
G details risk models used for each asset category.
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.
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, Bridges & Culverts) the province, through O. Reg. 588/17, has provided
required qualitative descriptions.
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 the province, through O. Reg. 588/17, has
also provided technical metrics that are required to be included in this AMP.
Current and Proposed Levels of Service
Current LOS reflects the current technical LOS for (most often) a group of assets as
of a defined past measurement date. In contrast, a Proposed LOS reflects the
Municipality's goal for asset performance by a define future date.
It is important to note that O. Reg 588/17 does not dictate the proposed LOS
values required. Meaning, a Proposed LOS may be maintaining or even reducing
current performance.
Regardless of what the selected Proposed LOS is, O. Reg 588/17 requires
Municipalities to demonstrate the feasibility of the Proposed LOS. This must
consider the associated costs, risks, and impact of population and economic activity
over the period (O. Reg. 588/17 6,2). The proceeding sections outline O. Reg
588/17 reporting requirements and how the Municipality's AMP meets them, while
noting any additional considerations made.
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Asset Management Plan 2025
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2.4 Scope & Methodology
2.4.1
Asset Categories for this AMP
This asset management plan for Dorion Township is produced in compliance with O.
Reg. 588/17. The July 2025 deadline under the regulation--the third of three
AMPs--requires analysis of proposed Levels of Service (LOS), including the
estimated costs, risks, and achievability of them.
Appendix A to E summarizes the state of the infrastructure for the Township 's
asset portfolio and establishes current levels of service and the associated technical
and customer-oriented key metrics. The Asset Management Plan considers the
following tax-funded asset categories:
Figure 6 Tax Funded and Rate Funded Asset Categories
2.4.2
Data Effective Date
It is important to note that this plan is based on assets in ownership as of
December 2023; therefore, it represents a snapshot in time using the best
available processes, data, and information at the Township . 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:
-Road Network
-Bridges & Culverts
-Buildings
-Rolling Stock
-Machinery & Equipment
Tax Funded Assets
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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 the 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.
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 requires 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:
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Asset Management Plan 2025
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Figure 8 Target Reinvestment Rate Calculation
Figure 9 Actual Reinvestment Rate Calculation
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.
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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.
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 liveable and sustainable communities, the regulation is a key,
mandated driver of asset management planning and reporting. It places substantial
emphasis on current and proposed levels of service and the lifecycle costs incurred
in delivering them.
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
Dorion Township
Asset Management Plan 2025
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Figure 10 O. Reg. 588/17 Requirements and Reporting Deadlines
2.5.1
O. Reg. 588/17 Compliance Review
Table 5identifies the requirements outlined in Ontario Regulation 588/17 for
municipalities to meet by July 1, 2025. Next to each requirement a page or section
reference is included in addition to any necessary commentary.
Requirement
O. Reg.
588/17
Section
AMP
Section
Reference
Status
Growth assumptions Considerations
for Proposed LOS
S.5(2), 5(i-ii)
S.5(2), 6(i-vi)
5
Complete
Proposed LOS over 10 years for each
asset category
6 (1) 1
6
Complete
Why Proposed LOS are Appropriate
6 (1) 2 (i.,
ii,iii,iv)
6.2
Complete
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Table 5: 2025 O. Reg. 588/17 Requirements
2.5.2
General and Extraordinary Assumptions
The analysis completed throughout this AMP is based on the best available
information and data at the time of the document's publication. It is recognized that
the noted assumptions and associated information inputs may change over time,
and this may affect the Municipality's ability to meet the Proposed LOS or the
accuracy of the Proposed LOS reporting.
-
Asset condition information is reported based on OSIM reports, Building
Condition Assessments (BCA) and internal staff estimates and most
associated recommendations including capital investments and maintenance
activities.
-
Asset deterioration is based on the respective EUL and where available the
reported assessed condition. It is recognized that assets deterioration will not
exactly match the forecasted deterioration rate, but the projections represent
the best estimation of future conditions.
-
Population and economic activity projections are based on the 2021 Canadian
census and the Northern Policy Institute future projections
-
All financial information is based on estimated asset costs as of December
2023 and Township financial information (i.e. revenues, expenditures,
debentures) from 2022, 2023 and 2024. The cost impacts of inflation on
future expenses and/or revenues are not reflected.
Requirement
O. Reg.
588/17
Section
AMP
Section
Reference
Status
Proposed LOS 10-year Breakdown
6 (1) 3
6.2.2
Complete
Proposed LOS Risk Management
6 (1), (B)
6.2.2
Complete
Proposed LOS Lifecycle Management
6 (1) 4 (i.,
A,B, C, D)
6.2.3
Complete
Proposed LOS Financial Strategy
6 (1) 4
(i.,D,ii.,iii.,iv.)
7
Complete
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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 Asset Hierarchy & Data Classification
Asset hierarchy explains the relationship between individual assets and their
components, and a wider, more expansive network and system. How assets are
grouped in a hierarchy structure can impact how data is interpreted. Assets were
structured to support meaningful, efficient reporting and analysis. Key category
details are summarized at asset segment level.
Figure 11 Asset Hierarchy and Data Classification
-Gravel Roads
-Paved Roads
Road Network
-Bridges
-Structural Culverts
Bridges &
Culverts
-Administration
-Firehall Centennial
Buiding
-Museum
-Public Works garage
Buidling
Facilities
-Freightliner Romper
-Freighlinter Tanker
-Pick-Up Truck
Rolling Stock
-Appliances/Food
Service Equipment
-Library
-Mobile Equipment
Machinery &
Equipment
Dorion Township
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3.2 Portfolio Overview
3.2.1
Total Replacement Cost of Asset Portfolio
The six asset categories analyzed in this Asset Management Plan have a total
current replacement cost of $18.5 million. This estimate was calculated using user-
defined costing, as well as inflation of historical or original costs to current date.
This estimate reflects the replacement of historical assets with similar, not
necessarily identical, assets available for procurement today. Figure 12 illustrates
the replacement cost of each asset category; at 50% of the total portfolio, roads
form the largest share of the Township 's asset portfolio, followed by buildings at
24%.
Figure 12 Current Replacement Cost by Asset Category
3.2.2
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, 46%
of the Township 's infrastructure portfolio is in fair or better condition, with the
remaining 54% 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.
Road
Network,
$9,232,216,
50%
Bridges &
Culverts
$3.4m
Buildings
$4.4m
Machinery &
Equipment
$623k
Rolling Stock
$899,777
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Condition data was available for most assets. Where assessed condition was not
available, Age-based condition estimations were used.
Further, when assessed condition data was available, it was projected to current
year-end (2023). This 'projected condition' can generate lower condition ratings
than those established at the time of the condition assessment. The rate of this
deterioration will also depend on lifecycle curves used to project conditions over
time.
Figure 13 Asset Condition: Portfolio Overview
As further illustrated in Figure 14 at the category level, the road network is in the
worst condition overall with a significant proportion of assets in very poor condition.
This contrasts with the other asset categories which have a much higher proportion
of assets in fair or better condition. See Table 6 for details on how condition data
was derived for each asset segment.
Very Poor,
$9,233,000
(50%)
Poor,
$813,000
(4%)
Fair,
$2,064,000
(11%)
Good,
$2,236,000
(12%)
Very Good,
$4,198,000
(23%)
Overall Portfolio Condition
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Figure 14 Asset Condition by Asset Category
Source of Condition Data
This AMP relies on assessed conditions for 90% 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. Table
6 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
Paved Roads
100%
Internal Staff
Assessments, Age-Based
Gravel Roads
Bridges &
Culverts
Bridges
Structural Culverts
46%
OSIM Report
Buildings
All
99%
Engineering Consultants
Machinery &
Equipment
All
90%
Internal Staff
Assessments, Age-Based
Rolling Stock
All
100%
Internal Staff
Assessments, Age-Based
Table 6 Source of Condition Data
$115k
$2.1m
$1.8m
$126k
$307k
$268k
$1.1m
$26k
$560k
$172k
$404k
$1.4m
$116k
$593k
$10k
$102k
$46k
$62k
$58k
$722k
$86k
$8.4m
0%
20%
40%
60%
80%
100%
Rolling Stock
Machinery &
Equipment
Buildings
Bridges &
Culverts
Road Network
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
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3.2.3
Service Life Remaining
Based on asset age, available assessed condition data and estimated useful life,
56% of the Township 's assets will require replacement within the next 10 years.
Service life remaining by asset category is summarized in Figure 15 below. As the
graph illustrates, the road network has the largest proportion of assets with service
life expired.
Figure 15 Service Life Remaining by Asset Category
3.2.4
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.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$1,686,611
$4,664,109
$2,006,941
$627,370
$9,558,845
(9%)
(25%)
(11%)
(3%)
(52%)
Figure 16 Risk Matrix: All Assets
The analysis shows that based on current risk models, approximately 52% of the
Township 's assets, with a current replacement cost of approximately $9.5 million,
carry a risk rating of 15 or higher (red) out of 25. Assets in this group may have a
$43k
$30k
$8.1m
$900k
$579k
$44k
$44k
$245k
$312k
$11k
$62k
$4.1m
$3.3m
$803k
0%
25%
50%
75%
100%
Rolling
Stock
Machinery
&...
Buildings
Bridges &
Culverts
Road
Network
Service Life Remaining by Category
Service Life Expired
0 - 5 Years Remaining
6 - 10 Years Remaining
Over 10 Years Remaining
Dorion Township
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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.
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4. Portfolio Risk & Criticality
4.1 Qualitative Risk
The Township has noted key trends, challenges, and risks to service delivery that
they are currently facing. The most prominent qualitative risks across all asset
categories are:
Staffing Constraints
Dorion Township has a small number of municipal staff who are
responsible for managing a multitude of asset types across a large
geographic area. Many asset interventions and assessments require
warmer weather to complete. Due to the Township's northern location,
summers tend to be short. Constraints in both the number of staff
available to complete asset management activities and a limited
window of time to complete the work is a qualitative risk for the
Township.
Capital Funding Strategies
In some instances, the Township may rely on funding programs for
replacement and rehabilitation of their assets. Sometimes these funding
programs are specific to select project components and require the
Township to cover other project costs (i.e., engineering, contract
administration). If the Township is unable to cover the requisite project
costs the available funding is often rendered inaccessible. This funding
structure and requirements create risks to obtaining the needed capital
funding.
Remote Location
Dorion Township is in Northern Ontario and is 75 kilometers from the
nearest major urban center of Thunder Bay. The Township's location
can sometimes reduce the pool of interested contractors for road capital
projects and/or result in location-based cost premiums.
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5. 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.
5.1 Growth Assumptions
Apart from 2016 to 2021, the Township has experienced sustained population loss
since the 1980's. This is outlined in Table 7 below.
Table 7: Dorion Township's Historic Population
Year
Total Population
% Change
2021
375
18.7
2016
316
-22
2011
338
-38
2006
376
-66
2001
442
-30
1996
472
-41
1991
513
-1
1986
514
In 2020 and 2019 respectively, expansion of Highway 11/17 and the construction of
the East-West Tie Transmission Line Project began. The construction and
management of both projects are external to the Township. These projects,
however, may be connected to the population growth that occurred between 2016
and 2021.
The Northern Policy Institute predicts the Thunder Bay District (of which Dorion
Township is a part of) to experience a modest 2.5% decline in population between
2017 and 2041. This is largely a result of an aging population, decreasing fertility
rate, and significant interprovincial and interprovincial out-migration. Considering
the regional projections, it is deduced that Dorion Township will not experience
material population growth in the future. Projections for the District of Thunder Bay
are summarized in Table 8 below:
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Table 8: Population Projections District of Thunder Bay
5.2 Impact of Growth on Lifecycle
Activities
Based on the regional projections of a 2.5% population decrease by 2041 it is
expected that construction of additional infrastructure (i.e. an expanded road
network) is not required and that Dorion Township will be able to service any
residential growth by maintaining the existing infrastructure.
This infrastructure growth strategy is supported by the Official plan (Adopted in
2022) which outlines the Township's intention to foster low density developments in
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the established Settlement Area (SA)2 with servicing by well water and septic
instead of municipal water and wastewater services. Further, the official plan
outlines the intention that any new development be serviced by the existing road
network rather than expanding the road network.
Lifecycle costs in this report, including in Proposed Levels of Service, therefore do
not reflect any net new infrastructure assets.
2 Settlement Areas are the intended focal point for community growth and development and the primary location
for new development. Settlement areas are designated for a wide range of land-uses including residential,
commercial, tourist, and alternative energy development.
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6. Proposed Levels of Service
6.1 Overview
6.1.1
O. Reg. 588/17 Proposed Levels of Service Requirements
Current LOS reflects the current technical LOS for (most often) a group of assets as
of a defined past measurement date. In contrast, a Proposed LOS reflects the
Municipality's goal for asset performance by a define future date. It is important to
note that O. Reg 588/17 does not dictate the proposed LOS values required.
Meaning, a Proposed LOS may be maintaining or even reducing current
performance.
O. Reg. 588/17 requires Municipalities to report on Proposed Levels of Service,
including an overview of the following:
1. Proposed LOS options (i.e. increase, decrease, or maintain current LOS) and
the risks associated with these options.
2. How the proposed LOS may differ from current LOS.
3. Whether the proposed LOS is achievable.
4. The municipality's ability to afford proposed LOS.
Additionally, a lifecycle management and financial strategy to support the proposed
LOS must be identified for a period of 10 years with specific reporting on:
1. Identification of lifecycle activities needed to provide the proposed LOS.
2. Annual costs over the next 10 years to achieve the proposed LOS.
3. Identification of proposed funding projected to be available.
6.2 Proposed LOS Options & Analysis
6.2.1
Setting Proposed LOS Options: Process and Considerations
To determine three suitable Proposed LOS scenarios to analyze, the following
process was completed:
1. Strategic Document Review
The Township's Strategic Plan (2014-2018) is a foundational document that sets
direction by identifying strategic objectives and mechanisms to achieve them. The
Strategic Plan was reviewed and considered in the development of Proposed LOS
Options. Key details and considerations from the Strategic Plan are:
Mission:
1. Maintain and enhance quality of life
2. Foster economic development
3. Be proactive in addressing local, regional, and global issues
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The practice of asset management itself supports the Township's mission. For
example, infrastructure assets provide value to residents and their quality of life;
roads provide a route for travel, parks and recreation provide opportunities for
activities and enjoyment. Asset management also works to proactively understand
asset needs and plan accordingly for them. This aligns with the mission to maintain
and enhance quality of life and proactively address local issues.
The Strategic Plan advances six themes that contain strategies and associated
actions. The strategic themes are:
1. Economy
2. Infrastructure
3. Community
4. Environment
5. Residents
6. Aboriginal People
The infrastructure strategic theme holds significant relevance to the discussion of
Proposed LOS Options. Particularly relevant Infrastructure strategies and actions
are:
Table 9:Strategic Plan Infrastructure Strategies
Strategy
Associated Actions
Develop a transportation strategy to
proactively address current assets and
future potentials
-
Document a plan; province
twining highway (PTH) and local
roads
-
Review active transportation
liabilities and potential
-
Review CP Siding reactivation
-
Explore King Horn Line potential
Focus on maintaining roads
-
Monitor funding available and
Township requirements
-
Complete current bridge
replacement
In the context of Proposed LOS options, the Strategic Plan advances the priority of
road and bridge assets and the importance of the financial strategy in the long-term
sustainable delivery of core assets.
2. Resident & Staff Engagement
Resident feedback was sought through the issuance of a resident and staff
questionnaire. Key findings from the survey included:
➢ Staff Questionnaire:
o Identified value in increasing LOS so that actual reinvestment rate is
closer to the target reinvestment rate
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o Simultaneously recognized that an increase to capital funding may
cause affordability challenges to rate payers
o Noted the declining condition of paved roads and the significant (and
unaffordable) cost of replacement
➢ Resident Questionnaire:
Dorion Township issued a resident survey in the spring of 2025. Surveys
were mailed to residents and posted online. In total, 23 survey responses
were submitted, representing a 6% response rate or 7% when only
considering the population over 15 years. The survey contained a total of
11 questions regarding satisfaction levels with various municipal services,
priority of assets by their type, and willingness to pay for changes in service
levels. Findings of relevance to setting proposed LOS included the following:
Demographics:
-
Most respondents (77%) are resident property owners and most
(62%) are rural residents
-
In line with census data, most respondents (59%) are over the age
of 65
Asset Priorities, Satisfaction & Willingness to Pay
-
Roads, Bridges and Structural culverts were identified as High
Importance assets; they also had the highest percentage of
respondents who were willing to pay for improvements. This is
summarized in the table below.
Table 10: Proposed LOS Analysis, Resident Survey
Asset Category
% of High Importance
Identification
% Willing to Pay for
Improvements
Roads, bridges, culverts
and ditches
96
81
Landfill
84
57
Municipal Buildings
35
77
-
Community Center
46
38
-
Centennial
34
30
-
Library
38
27
Emergency Services
92
77
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-
The Township's current approach to infrastructure investment is well
received. When asked: are you in favor of recent improvements?
38% strongly agreed, 52% agreed and 10% were unsure. This
supports current lifecycle management practices (as summarized in
Appendices A to E) to be reasonably effective and appropriate.
-
Based on the survey, the public is either unsure or does not believe
the Township is overspending. When asked, is the Township
overspending in any service areas? The majority (54%) of residents
either disagreed (36%) or strongly disagreed (16%); a large portion
(36%) were unsure, and a small portion agreed (4%) or strongly
agreed (4%)
In summary, key findings from the survey that helped informed Proposed LOS
Options are:
-
Priority in and highest willingness to invest in roads and bridges
-
Lower levels of willingness to invest in other asset categories
-
Strategic Funding Allocation should be focused on roads and bridges
3. Discovery Sessions
Findings from the resident and staff questionnaire and strategic document review
were consolidated, and a meeting was held with Township staff to discuss.
Additional considerations for setting Proposed LOS were identified, specifically:
➢ The condition of paved roads is very poor, requiring full replacement
(including the base) which is not financially viable. Conversion to gravel
roads is suitable considering the traffic types and volumes and the relative
affordability of the asset's lifecycle costs.
➢ Conversion to gravel would require a phased approach, with an initial goal to
begin construction of the first road in 2028
➢ The Town's operations are supported by 2 to 3 FTE staff; succession planning
is challenging due to the wide range of expertise required, the small
population to draw upon, and job competition from the surrounding region.
Larger capital projects require outside contractors due to scale, equipment
and/or expertise requirements.
Considering all the above, the following three scenarios were selected for analysis
and consideration as a Proposed LOS:
Table 11: Proposed LOS Options
Scenario Details
1
-
Annual Capital budget of $140,0003 in year one; increasing by
$15,000 annually until the annual capital budget reaches
$500,000
-
Convert paved roads to gravel beginning in 2028
3 At the time of this report's publication the Township's sustainable capital funding totaled $140,000 annually.
Dorion Township
Asset Management Plan 2025
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Scenario Details
-
Prioritize investment to roads and bridges
2
-
Annual Capital budget of $140,000 in year one; 2% annual
increases.
-
Convert paved roads to gravel beginning in 2028.
-
Capital allocation of 60% roads, 30% to bridges, 10% to
everything else to reflect established priority
3
-
Annual Capital budget of $300,000 in year one; no annual
increase.
-
Convert paved roads to gravel beginning in 2028.
-
Roads and bridges fully funded; balance of funding to other
asset categories
The above scenarios represent the Proposed LOS options. General infrastructure
and operational risks associated with each scenario option are summarized below.
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6.2.2
Proposed LOS Options: Analysis
Several key areas of consideration were deployed in the selection of the Proposed
LOS. These primarily were:
1. Associated Risks
2. Affordability
3. Achievability
The proceeding sections outline the above noted considerations and analysis
information.
Proposed LOS Options: Risks
Table 10 below details the qualitative risks associated with each of the Proposed
LOS and the anticipated relative severity of each scenario.
Table 12: Risks Associated with Proposed LOS Options
Risks Associated with Proposed LOS Options
Applicable
Scenario(s)
Relative
Severity
Risk
Identified
Risk Defined
1
Low
Reliance on
Grants
Increased capital funding
requirements are not palatable to
ratepayers and the additional
investment can only be funded by
conditional grants, as they become
available. While grants and senior
government funding reduces the
burden on rate payers, they are
considered an unsustainable revenue
source. The Township will be more
vulnerable to changes in provincial
and federal policy and funding
programs.
Note: Scenario two does not hold
this risk since capital fundings would
match the existing sustainable
capital funding amounts
3
High
1
Low
Increased
Infrastructure
Backlog
The Township's current average
annual capital investment is much
less than the average annual capital
requirement. Therefore, for many
years assets are underfunded, and
lifecycle management is not optimal.
Reduced and/or deferred lifecycle
2
High
3
Mid
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Asset Management Plan 2025
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Risks Associated with Proposed LOS Options
Applicable
Scenario(s)
Relative
Severity
Risk
Identified
Risk Defined
activities threaten reliability and
increase the potential for costly (and
unbudgeted) repairs to maintain
service.
1
Low
Increased Rate
of Asset Failure
Underinvestment in assets will result
in a lower average condition and an
increased rate of asset failure. This
will affect the reliability of
infrastructure, and the quality of
service provided.
2
High
3
Mid
1
Low
Increased
Severity of
Asset Failure
Underinvestment in assets is
correlated to an increased severity of
asset failure. This may mean that
assets are beyond the point of repair
and require premature replacement.
In some instances, this may result in
a period where the Township does
not have functional assets that are
critical to their operations.
2
High
3
Mid
In addition to the above noted qualitative risks, there are measurable risks held by
each asset. Risks are quantified based on the respective probability and
consequences of asset failure models outlined in Section 4 and detailed in Appendix
H. Table 11 below summarizes the average risk scores for each scenario for Bridges
and Roads, and all other assets. For each asset category, scenario one has the
lowest average risk; this is especially pronounced for roads and all other assets.
Differences are smaller between the scenarios for bridges, and this reflects the
consistent prioritization of these assets and the associated capital investment to
support.
Table 13: Average Risk by Scenario
Scenario
Average Risk all
Other
Average Risk
Bridges
Average Risk
Roads
1
11.71
12.46
11.99
2
16.52
12.59
16.52
3
16.42
11.69
15.56
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Proposed LOS Options: Affordability & Strategic Alignment
The discovery session provided several key insights that guided priority areas of
investment. Notable items are:
o Importance of balancing infrastructure investment levels with ratepayer
affordability
o Ensuring that investment changes are reasonably realistic to implement
considering ratepayer affordability and project execution
o In alignment with long-term affordability and strategic lifecycle management,
investment in bridges and structural culverts and the road network including
the conversion of paved roads to gravel.
o Table 12 summarizes the percentage of the identified capital investment
requirement (i.e. need) that is funded under each scenario. Figures reflect
average funding over a 23-year period (2025 to 2048). All Scenarios are
based on the capital cost of converting existing paved roads to gravel and
the capital costs of maintaining gravel roads. Therefore, the average annual
capital requirement of paved roads (identified in Appendix A) is not
considered.
Table 14: Percentage of Average Annual Need Funded
Asset Category
Scenario
1
2
3
Percentage of Average Annual Need Funded
Roads
88 55 96
Bridges & Structural Culvers
96 75 95
All Other
35 7
25
The Financial Strategy (Section 6) provides details into affordability analysis of the
selected option. Some key considerations when reviewing all Proposed LOS options
are:
o The Township is limited in their available revenue sources; their tax base is
almost entirely residential and alternative revenue streams are unlikely
o The Township does not realistically foresee the ability to increase the capital
budget from existing levels to $300,000 over a one-year period and via tax
base revenues.
The three above noted scenarios were analyzed and results were reviewed, With
consideration for achievability, risks, and affordability, the Township of Dorion
Dorion Township
Asset Management Plan 2025
38
selected Scenario 1 as their Proposed Level of service. The financial strategy and
10-year capital forecast reflect scenario one. Scenario one is based on the
following:
-
Annual Capital budget of $140,0004 in year one; increasing by
$15,000 annually until the annual capital budget reaches $500,000
-
Convert paved roads to gravel beginning in 2028
-
Prioritize investment in roads and bridges
4 At the time of this report's publication the Township's current capital budget was $140,000 annually.
Dorion Township
Asset Management Plan 2025
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Proposed LOS Option: Additional Considerations
Achievability
-
In years where capital investments are more significant the work will be
conducted by external contractors. This is primarily because the Township's
staff resources are not sufficient and/or appropriate to solely complete the
project due to its scope, technical and equipment requirements and/or scale.
The use of external contractors would allow for an increased capital
expenditure with existing staff resources.
-
The Ministry of Transportation (MTO) is actively reconfiguring the MTO road
network within the Township. The Township anticipates the opportunity to
align the schedule of their road's capital projects with MTO projects to benefit
from cost-economies that contractors would garner from having projects and
resultantly staff and equipment in the location already. This is a particularly
important consideration for the Township due to their remote northern
location and the associated challenges (as discussed in 4.1) this brings.
Lifecycle Cost & Affordability
-
While converting the existing paved roads to gravel does carry significant
cost, it is substantially less than the cost of replacing paved roads with
asphalt. The condition of all paved roads is very poor, and all roads require
immediate replacement. Considering the traffic types and volumes, gravel
roads are an appropriate road surface for the Township. As a lifecycle
strategy the estimated cost savings are significant. This is summarized in
Table 15 below:
Table 15: Converting Paved Roads to Gravel vs. Replacing with Asphalt
Cost
Gravel
Paved
Difference
Conversion/Replacement
$679,000
$8,105,000
$7,426,000
Estimated Useful Life
*5
15-20
Average Annual Capital
Requirements6
$68,000
$540,000
$472,000
-
Increased capital investment is required to meet the proposed LOS. The
financial strategy in Section 7 discusses the forecasted financial position of
the proposed LOS targets and identifies strategies for meeting capital funding
requirements. The forecasted annual capital funding requirements for a 10-
year period are as follows:
5 The lifecycle management strategies for these assets consist of perpetual maintenance activities funded by an
operational budget and annual rehabilitation strategies funded through an annual capital budget.
6 Gravel roads can theoretically have a limitless life. For the purposes of this comparison, the cost to convert the
roads from paved to gravel has been amortized over a 20-year period. However, the road is expected to last
significantly longer.
Dorion Township
Asset Management Plan 2025
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Table 16: 10 Year Capital Investment Requirements & Allocations- Scenario 1
10 Year Capital Investment Requirement & Allocations
'25
'26
'27
'28
'29
'30
'31
'32
'33
'34
Roads: Paved to
Gravel Conversion
$414,000
$28,750
$235,750
Existing Roads7
$118,280 $118,280 $118,280 $118,280 $118,280 $118,280 $118,280 $118,280 $151,398 $151,398
Bridges & Culverts
$36,720
$50,000
$50,000
$$70,000 $70,000
$70,000
$70,000
$70,000
$70,000
$70,000
All Others
15,000
15,000
15,000
$15,000
$26,720
$50,000
$50,000
$70,000
$70,000
$70,000
Total Requirement
$152,258 $165,538 $165,538 $185,538 $611,258 $220,538 $261,116 $488,116 $283,828 $283,828
The above table accounts for both current and future expenditures to achieve and maintain the proposed levels of service. This
requires a combination of capital spending and savings (i.e. reserves) to ensure future large expenditures can be funded. As
discussed in the financial strategy, it may also require the use of debt to cover the spikes in costs due to the road conversion
project. Due to the estimated life and low quantity of assets, in some years there may be no forecasted capital investment
requirements. In these years, annual funding should be set aside in the form of reserves to ensure funding for upcoming life-
cycle events is available when required.
It is important to note that an AMP is a dynamic document which should be reviewed regularly to ensure up-to-date information
is incorporated including accurate replacement costs, changes in inventory, changes in available funding sources, and reflection
on progress made on previous recommendations.
7 At the time of this report's publication the Township was in active engagement with the Ministry of Transportation to transfer 5.7 kilometers of paved roads to Dorion Township
ownership. This AMP does not reflect the inventory information or the cost of Future Acquisitions, however very early estimates suggest that they may carry an approximate
average annual capital investment requirement of $254,000. Currently, the projected timing of capital investments in unknown asset in-service dates and conditions are not
available.
Dorion Township
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6.2.3
Selected Proposed LOS: Required Lifecycle Strategies
Table 17details the anticipated lifecycle strategy changes that are required to meet
the proposed LOS:
Table 17: Lifecycle Changes Required to Meet Proposed LOS
Asset Category Lifecycle Changes to Reach
PLOS
AMP Section /Information
Road Network
Conversion of paved roads to
gravel phased over
approximately 10 years with
work projected to begin 2028
No lifecycle strategy changes
otherwise; noted gravel road
maintenance activities shall be
applied to all gravel roads
8.7
Bridges &
Culverts
No lifecycle changes, annual
capital spending increase only 8.13
Facilities
No lifecycle changes, annual
capital spending increase only 8.18
Machinery &
Equipment
No lifecycle changes, annual
capital spending increase only
Machinery & equipment assets
are inspected regularly and
are maintained for use as per
their useful life. Maintenance
is tailored to each asset based
upon use and is well
documented.
Rolling Stock
No lifecycle changes, annual
capital spending increase only
Circle checks are completed
before each use and assets
are routinely inspected and
maintained based on their
hours of use. Repairs and
maintenance are completed
by the Township's staff or an
external mechanic as
required. All maintenance
activities are documented in
repair logs.
Changes to Community and Technical Levels of Service for Scenario 1
Dorion Township does not anticipate any changes to qualitative community levels of
services for any of the asset categories included within this AMP. All asset
categories will see adjustments to their technical levels of service over time,
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Asset Management Plan 2025
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particularly relating to capital reinvestment rate and average condition of assets.
Refer to each asset category for more details.
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7. 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 the Township of Dorion to identify the
financial resources required for sustainable asset management based on existing
asset inventories, proposed levels of service, and projected growth requirements.
The Township's 2024 AMP identified the financial requirements for:
a. Existing assets
b. Existing service levels
This plan (2025 AMP) identifies the financial requirements to meet the identified
proposed LOS with consideration for any additional financial impacts from economic
and population growth. The financial plan considers and accounts for traditional and
non-traditional sources of municipal funding, which are:
2. Use of traditional sources of municipal funds:
a. Tax levies
b. User fees
c. Debt
d. Development charges
3. Use of non-traditional sources of municipal funds:
a. Reallocated budgets
b. Partnerships
c. Procurement methods
4. Use of Senior Government Funds:
a. CCBF (Formerly Gas Tax)
b. Annual grants
Note: Periodic grants are normally not included due to Provincial requirements for
firm commitments. However, if moving a specific project forward is wholly
dependent on receiving a one-time grant, the replacement cost included in the
financial strategy is the net of such grant being received.
If the financial plan component results in a funding shortfall, the Province requires
the inclusion of a specific plan as to how the impact of the shortfall will be
managed. In determining the legitimacy of a funding shortfall, the Province may
evaluate a Township's approach to the following:
1. 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.
Dorion Township
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b. Do user fees reflect the cost of the applicable service? If not, increased
user fees should be considered.
7.1 Proposed LOS: Annual Requirements
& Capital Funding
The annual requirements represent the amount the Township should allocate
annually to each asset category to meet the proposed LOS. For the Township of
Dorion, the proposed LOS is based on increasing the capital budget by $15,000
annually for 23 years (2025-2048) until the capital budget reaches $500,000. On
an average annual basis, this equates to a capital investment of $338,000.
However, it is important to note that based on the annual incremental increase, the
annual investment will increase each year (i.e. it will be less than $338,000 until
2037 and greater after 2037).
As reported in Appendices A to G, the average annual capital requirement for all
assets is higher than the proposed LOS. Generally, this means that under this
proposed LOS, assets are being replaced later than recommended. However, it
should be noted that this PLOS involves strategic lifecycle management activity of
converting paved roads to gravel roads. As noted under Section 6.2.2 this lifecycle
strategy carries significant cost reductions compared with replacing paved roads
with paved roads. Furthermore, capital investment is strategically allocated to other
road and bridge assets to reflect the Township's prioritization of these asset
categories. At the same time, all asset categories receive a level of investment This
is detailed in section 6.2.2 of the report.
For most asset categories the annual requirement has been calculated based on a
"replacement only" scenario, in which capital costs are only incurred at the
construction and replacement of each asset. However, for the Road Network,
lifecycle management strategies have been developed to identify future cost
savings that are realized through conversion of paved roads to gravel.
7.1.1
Annual Funding Available
Based on a historical analysis of sustainable capital funding sources, the Township
is committing approximately $156,000 towards capital projects per year. Given the
average annual capital requirement of $338,000 under the selected proposed LOS
scenario, there is currently an average annual funding gap of $182,000.
7.1.2
Funding Objective
We have developed a scenario that would enable Dorion to achieve full funding
required to meet the proposed LOS within 1 to 20 years for the following assets:
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1. Tax Funded Assets: Road Network, Bridges & Culverts, Buildings, Rolling
Stock, and Machinery & Equipment
For each scenario developed we have included strategies, where applicable,
regarding the use of cost containment and funding opportunities.
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7.2 Financial Profile: Tax Funded Assets
7.2.1
Current Funding Position
Table 18show, by asset category, Dorion's average annual asset investment requirements, current funding
positions, and funding increases required to achieve full funding and proposed LOS funding levels.
Table 18: Current Funding Position
Asset Category
Avg. Annual
Requirement
(AAR)
AAR
(PLOS)
Annual Funding Available
Annual Deficit
Tax
Gas Tax
OCIF
Total
Available
AAR
PLOS
Bridges & Culverts
$76,000
$69,857
$5,840
$5,840
$70,160
$64,017
Buildings
$126,000
$45,787
$3,828
$3,828 $122,172
$41,960
Machinery &
Equipment
$54,000
$19,623
$0
$54,000
$19,623
Road Network
$615,000
$170,161
$13,225
132,250 $146,475 $468,525
$23,686
Rolling Stock
$90,000
$32,705
$0
$90,000
$32,705
$961,000
$338,134
$0
$23,892
$132,250 $156,142 $804,858 $181,992
To meet the proposed LOS, the average annual investment requirement for the above categories is $338,000.
Annual revenue currently allocated to these assets for capital purposes is $156,000 leaving an average annual
deficit of $182,000. Put differently, the current level of investment is on average 46% of the investment needed to
achieve the proposed LOS.
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7.2.2
Full Funding Requirements
In 2024, the Township of Dorion had annual budgeted tax revenues of $802,223. As illustrated in Table 19, without
consideration of any other sources of revenue or cost containment strategies, full funding and funding to meet the
proposed LOS would require the following tax change over time:
Table 19: Tax Changes Required
Asset Category
Tax Change Required for Full Funding
Tax Change Required for PLOS
Bridges & Culverts
8.7%
8.0%
Buildings
15.2%
5.2%
Machinery & Equipment
6.7%
2.4%
Road Network
58.4%
3.0%
Rolling Stock
11.2%
4.1%
Total
100.2%
22.7%
The following changes in costs over the next number of years should also be considered in the financial strategy:
a) Dorion's debt payments for these asset categories will be decreasing by $51,650 by 2029
Our recommendations consider scenarios with and without capturing the above changes and allocating them to the
infrastructure deficit outlined above. Table 20 below outlines this concept and presents several options:
Without Capturing Changes
With Capturing Changes
5 Years
10 Years
15 Years
20 Years
5 Years
10 Years
15 Years
20 Years
Infrastructure
Deficit (PLOS)
$181,992 $181,992 $181,992 $181,992 $181,992 $181,992 $181,992 $181,992
Change in
Debt Costs
N/A
N/A
N/A
N/A
-$51,560
-$51,560
-$51,560
-$51,560
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Without Capturing Changes
With Capturing Changes
5 Years
10 Years
15 Years
20 Years
5 Years
10 Years
15 Years
20 Years
Resulting
Infrastructure
Deficit:
$181,992
$181,992
$181,992
$181,992
$130,342
$130,342
$130,342
$130,342
Tax Increase
Required
22.7%
22.7%
22.7%
22.7%
16.2%
16.2%
16.2%
16.2%
Annually:
4.2%
2.1%
1.4%
1.1%
3.1%
1.6%
1.1%
0.8%
Table 20 : Debt Reallocation Modelling
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7.2.3
Financial Strategy Recommendations
Although Dorion's current debt is due to expire within the next 5 years, it is anticipated that the
Township will incur additional debt at the time of expiry and for this reason we do not
recommend considering any of the options that capture changes in debt costs above. With all
things considered, we recommend the 10-year option. This involves funding to meet the
proposed levels of service as described earlier. This strategy requires the following:
a) Increasing tax revenues by 2.1%8 each year for the next 10 years solely for the purpose
of phasing in the proposed levels of service for asset categories covered in this section of
the AMP.
b) Allocating the current OCIF and CCBF 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. Although the above recommendation is based on the average annual funding
requirements for the PLOS, it should be noted that to meet the PLOS, the Township
anticipates significant cost outlays in years 2029 through 2032. These outlays are
associated with upfront capital costs for the paved to gravel road conversion project. The
Township is expected to require the use of debt and/or reserves for funding in these years
and should plan accordingly to ensure the projects are adequately funded and avoid
disruptions.
2. As noted above, since the Township is expected to incur additional debt once the current
outstanding debt expires, we have not considered any expected changes in debt costs in
our recommendation. However, any debt cost reductions that are realized net of any
additional debt taken on once the current debt expires should be reallocated to the
infrastructure deficit as outlined in the scenario in the table above that captures changes
in debt costs.
3. 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
commitment9.
8 This percentage represents the average annual increase required to meet the funding levels. This equates to nominal average annual increase of
approximately $15,000 from the previous year.
9 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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7.3 Use of Debt
Debt can be strategically utilized as a funding source with in the long-term financial plan. The
benefits of leveraging debt for infrastructure planning include:
a) the ability to stabilize tax & user rates when dealing with variable and sometimes
uncontrollable factors
b) equitable distribution of the cost/benefits of infrastructure over its useful life
c) a secure source of funding
d) flexibility in cash flow management
Debt management policies and procedures with limitations and monitoring practices should be
considered when reviewing debt as a funding option. In efforts to mitigate increasing commodity
prices and inflation, interest rates have been rising. Sustainable funding models that include
debt need to incorporate the now current realized risk of rising interest rates. The following
graph shows the historical changes to the lending rates:
Figure 17: Historic Prime Business Interest Rate
A change in 15-year rates from 5% to 7% would change the premium from 45% to 65%. Such a
change would have a significant impact on a financial plan.
Table 21outline how Dorion has historically used debt for investing in the asset categories as
listed. There is currently $176,000 of debt outstanding for the assets covered by this AMP with
corresponding principal and interest payments of $51,650.
Table 21: Debt Use 2018 to 2022
Asset Category
Current Debt Outstanding
Use of Debt in the Last Five Years
2018
2019
2020 2021 2022
Bridges & Culverts
$80,000
$120,000
Buildings
0.00%
5.00%
10.00%
15.00%
Historical Prime Business Interest Rate
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Asset Category
Current Debt Outstanding
Use of Debt in the Last Five Years
2018
2019
2020 2021 2022
Machinery & Equipment
Road Network
$96,472
$186,720
Rolling Stock
Total Tax Funded:
$176,472
0 $306,720
0
0
0
Table 22details future debt carrying costs for debts currently held.
Table 22: Debt Carrying costs 2025 to 2035
Asset Category
Principal & Interest Payments in the Next Ten Years
2025
2026
2027
2028
2029
2030
2035
Bridges & Culverts
$13,446
$13,097
$12,755
$12,414
$8,085
Buildings
Machinery & Equipment
Road Network
$38,204
$22,197
Rolling Stock
Total Tax Funded: $51,650 $35,294 $12,755 $12,414 $8,085
0
0
As noted in the Tables above, Dorion Township's existing debts are scheduled to expire in 2029.
Simultaneously, the proposed LOS requires significant capital cost outlays in 2029 to 2032, and
it is expected that some level of debt is required to fund the projects. The financial strategy
would require that new debt is acquired in 2029 (not sooner) and that associated debt carrying
costs do not exceed $52,000 (i.e. current debt carrying costs). Annual debt payments more than
$52,000 would require additional funding paid for through taxation increases above the noted
recommendations or the use of reserve funds.
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7.4 Use of Reserves
7.4.1
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,Table 23 below outlines the details of the reserves currently available to
Dorion.
Table 23: Reserve Balances December 31, 2023
Asset Category
Balance at December 31, 2023
Bridges & Culverts
$0
Buildings
16,704
Machinery & Equipment
$243,219
Road Network
$0
Rolling Stock
$0
General Capital
$114,217
Total Tax Funded:
$374,140
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 consider when determining their capital reserve requirements
include:
a) breadth of services provided
b) age and condition of infrastructure
c) use and level of debt
d) economic conditions and outlook
e) internal reserve and debt policies.
These reserves are available for use by applicable asset categories during the phase-in period to
full funding. This coupled with Dorion'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.
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8. Recommendations & Key Considerations
8.1 Financial Strategies
1. Increasing tax revenues by 2.1%10 each year for the next 10 years solely for the purpose
of phasing in the proposed levels of service for asset categories covered in this section of
the AMP.
2. Allocating the current OCIF and CCBF revenue as outlined previously.
3. Increasing existing and future infrastructure budgets by the applicable inflation index on
an annual basis in addition to the deficit phase-in.
4. The Township anticipates significant cost outlays in years 2029 through 2032. These
outlays are associated with upfront capital costs for the paved to gravel road conversion
project. The Township is expected to require the use of debt and/or reserves to fund the
roads conversion projects between 2029 and 2032 in these years and should plan
accordingly to ensure the projects are adequately funded and avoid disruptions.
8.2 Asset Data
1. To ensure accurate data complete regular data review and updates especially to assessed
condition and replacement cost.
2. For assets that do not yet have condition assessments, consider a strategy for obtaining
them; for assets with condition assessments ensure they are completed on a regular
schedule and in a uniform manner.
3. Develop and regularly review short- and long-term plans to meet capital requirements.
8.3 Risk & Levels of Service
1. Risk models and matrices can play an important role in identifying high value assets, and
developing an action plan for their management. This can aid in strategic and objective
project selection and capital plans. Initial models have been built into Citywide for all
asset groups. These models reflect current data. As the data evolves and new attribute
information is obtained, these models should also be refined and updated.
2. 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.
10 This percentage represents the average annual increase required to meet the funding levels. This equates to nominal average annual increase of
approximately $15,000 from the previous year.
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Appendices
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Appendix A: Road Network
The Road Network is a critical component of the provision of safe and efficient transportation
services and represents the highest value asset category in the Township's asset portfolio.
Dorion Township's road network is composed of 11.2 km paved roads, (Dorion Loop Road and
Ouimet Canyon Road), and 44 km of gravel roads.
At the time of this report's publication the Township was in active engagement with the Ministry
of Transportation to transfer ownership of 5.7 kilometers of paved roads to Dorion Township.
This AMP does not reflect the inventory information or the cost of this future acquisition,
however it is recognized that these additional asses will have cost and operational impacts on
the ownership and their asset management program. Very early estimates suggest that this 5.7
kilometers of paved road may carry an approximate average annual capital investment
requirement of $254,000. The financial strategy referenced herein does not include or otherwise
consider these anticipated costs.
8.4 Inventory & Valuation
Table 24 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
44
Length (m)
$1,127,000
CPI
Paved Roads
11.2
Length (m)
$8,105,000
User-Defined
Total
$9,232,000
Table 24 Detailed Asset Inventory: Road Network
Figure 18 Portfolio Valuation: Road Network
Paved,
$8,105,000,
(88%)
Gravel,
$1,127,000,
(12%)
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8.5 Asset Condition
Figure 19 summarizes the replacement cost-weighted condition of the Township 's road network.
Based on a combination of field inspection data and age, overall, when weighted by replacement
cost 9% of assets are in fair or better condition, the remaining assets are in very poor condition.
Condition assessments were available for 100% of paved roads and 99% of unpaved roads,
based on replacement cost. This condition data was projected from inspection date to current
year to estimate their condition today. No condition data was available for the remaining asset
types.
Assets in poor or worse conditions 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 19 Asset Condition: Road Network Overall
As illustrated in Figure 20, based on condition assessments, all of the Township 's paved road
network is in poor condition; however, 71% of unpaved roads are in fair or better condition.
Figure 20 Asset Condition: Road Network by Segment
Very Poor,
$8,367,000
(91%)
Poor, $62,000
(<1%)
Fair, $116,000
(1%)
Good,
$560,000 (6%)
Very Good,
$126,000 (1%)
$126k
$560k
$116k$62k
$8.1m
$262k
0%
20%
40%
60%
80%
100%
Paved
Gravel
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
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8.6 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. For both paved and
gravel roads, the average asset age weighted by replacement cost is greater than the estimated
useful life (EUL). It is important to note that with rehabilitations assets may meet functional
needs well beyond their estimated useful life. This is especially the case for gravel roads, which
with proper management can theoretically have a limitless life.
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. Further, useful life estimates
established as part of the PSAB 3150 implementation may not be accurate and may not reflect
in-field asset performance.
71
44.5
15
15
0
10
20
30
40
50
60
70
80
Gravel
Paved
Number of Years
Weighted Average Age
Weighted Average EUL
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8.7 Current Approach to Lifecycle Management
Accurate and reliable condition data allows staff to determine the remaining service life of assets
and identify the most cost-effective approach to managing assets more confidently. The
following describes the Township's current approach for road inspection:
-
Staff complete road patrols on a regular basis; additional patrols may be triggered by
significant weather events.
-
To enable more rigorous road condition analysis, the Township recently purchased a road
assessment system which they are in the process of implementing.
Historically, and in this AMP, the condition assessment rating scales in Table 25below are used:
Condition
Rating
Very Good
8 and above
Good
6 and above
Fair
4 and above
Poor
2 and above
Very Poor
0 and above
Table 25: Road Network Condition Rating Scale
Instead of allowing the roads to deteriorate until replacement is required, strategic maintenance
and rehabilitation is expected to extend the service life of roads at a lower total cost.
Table 26: Paved Roads Lifecycle Strategy below summarizes the maintenance activities the
Township currently applies to paved roads. Currently, rehabilitation activities are not completed
but are being considered as future activity.
Table 26: Paved Roads Lifecycle Strategy
Paved Roads (Asphalt)
Event Name
Event Class
Event Trigger
Patching
Maintenance
Condition
Ditching & Brushing
Maintenance
Once Annually
Replacement
Capital
Condition
In future years, the Township may wish to consider implementing additional preventative
maintenance and rehabilitation measures such as crack sealing and mill and overlays. Such
interventions, especially when appropriately time, can extend an assets' total life, improve its
condition, and carry a lower total lifecycle cost than if such interventions were not implemented.
For the purposes of illustration, a lifecycle model has been provided below based on the
interventions detailed in Table 17
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Table 27: Paved Roads Lifecycle Model Example
Paved Roads Example Lifecycle Model
Event Name
Event Class
Event Trigger
Crack Sealing
Preventative
Maintenance
Every 5 years (7 instances)
Mill & Overlay
Rehabilitation
Asset Condition 3.8
Replacement
Capital
Condition 1.8
Completing these lifecycle activities extends the assets projected life from 20 years to 40 years.
These activities and their impact on condition and asset deterioration are illustrated in Figure
21 below.
Figure 22: Example: Paved Roads Lifecycle Model
Gravel roads typically have poor base construction. This can lead to wheel track rutting in wet
weather, and traffic will continually displace gravel from the surface to the shoulder and ditch
areas during wet and dry weather. Maintaining the shape of the road surface and shoulder is
essential to ensure proper performance and to provide a sufficient level of service for the public.
Therefore, the management of gravel roads is not through major rehabilitation and replacement,
but rather through good perpetual maintenance and some minor rehabilitation which depend on
a few basic principles: proper techniques and cycles for grading; the use and upkeep of good
surface gravel; and dust abatement and stabilization. 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 in Table 18 have been documented to illustrate the perpetual
maintenance and rehabilitation required to keep gravel roads in a good state of repair.
The following table outlines the Township 's current lifecycle management strategy.
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Gravel Roads
Event Name
Event Class
Event Trigger
Gravelling
Maintenance
Condition
Grading
Maintenance
As Needed
Dust Abatement
Preventative Maintenance
Annual Treatment
Table 28 Lifecycle Management Strategy: Road Network
8.8 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, replacement costs, traffic data, and road class. The risk ratings for assets without
useful attribute data were calculated using only condition, service life remaining, and their
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.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$770,125
$190,804
-
$166,287
$8,105,000
(8%)
(2%)
(0%)
(2%)
(88%)
Figure 23 Risk Matrix: Road Network
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8.9 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 selected for this AMP.
8.9.1
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
Dorion Township's road network is composed of 11.2
km paved roads, (Dorion Loop Road and Ouimet
Canyon Road), and 44 km of gravel roads. A map of
the road network and its connectivity is provided in
Figure 23 on the following page.
Quality
Description or images
that illustrate the
different levels of road
class pavement condition
Condition assessments for paved roads are conducted
internally by Public Works Staff. Roads are rated as
follows:
Very Poor: Pavement is in very poor condition with
extensive severe defects. Ride ability is very poor,
and the surface is very rough and uneven.
Poor: Pavement is in poor condition with frequent
patterns of moderate defects. Ride ability is poor, and
the surface is rough and uneven.
Fair: Pavement is in fair condition with intermittent
patterns of slight to moderate defects. Ride ability is
fair, and the surface is slightly rough and uneven.
Good: Pavement is in good condition with
accumulating slight defects. Ride ability is good with
intermittent slightly rough and uneven sections.
Very Good: Pavement is in excellent condition with
few visible defects.
Ride ability is excellent with few areas of very slight
distortion.
Table 29 O. Reg. 588/17 Community Levels of Service: Road Network
Dorion Township
Asset Management Plan 2025
62
8.9.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2022)
Accessible
Lane-km of collector roads (MMS classes 3 and 4)
per land area (km/km2)
0.05
Performance
Average pavement condition index for paved
roads in the municipality
Very Poor
Average surface condition for unpaved roads in
the Township (e.g. excellent, good, fair, poor)
Good11
Capital reinvestment rate
2.82%
Table 30 O. Reg. 588/17 Technical Levels of Service: Road Network
11 The 2024 AMP noted an average condition of very poor. Upon further review, the gravel roads assessments were provided for year
end 2023 and projected retroactively to 2022 to determine an average condition of 63% or Good.
Figure 24: Road Network Map
Dorion Township
Asset Management Plan 2025
63
Appendix B: Bridges & Culverts
The Township 's transportation network also includes bridges and structural culverts, with a
current replacement cost of $3.36 million
8.10 Inventory & Valuation
Table 31 summarizes the quantity and current replacement cost of bridges and culverts. The
Township owns and manages one bridges and 18 structural culverts.
Segment
Quantity
Unit of
Measure
Replacement Cost
Primary RC
Method
Bridges
1
Quantity
$1,300,000
User-Defined
Structural Culverts
18
Quantity
$2,068,912
CPI
TOTAL
$3,368,912
Table 31 Detailed Asset Inventory: Bridges & Culverts
Figure 25 Portfolio Valuation: Bridges & Culverts
8.11 Asset Condition
Figure 26 summarizes the replacement cost-weighted condition of the Township 's bridges and
culverts. Based on the Township 's recent Ontario Structures Inspection Manual (OSIM)
assessments, 96% of bridges and 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.
Culverts,
$2,069,000,
(61%)
Bridges,
$1,300,000,
(39%)
Dorion Township
Asset Management Plan 2025
64
Figure 26 Asset Condition: Bridges & Culverts Overall
As further detailed in Figure 27, based on in-field condition assessments, $1.3 million of bridge
assets were assessed as being in fair condition. The condition of structural culverts is more
varied, with the majority in very good condition and a small proportion in very poor to good
condition. Bridges and structures with a poor or worse rating (i.e., a bridge condition index of
less than 60) are not necessarily unsafe for regular use. The OSIM ratings are designed to
identify repairs needed to elevate condition ratings to a fair or higher.
Figure 27 Asset Condition: Bridges & Culverts by Segment
Very Poor,
$86,000 (3%)
Poor, $46,000
(1%)
Fair,
$1,372,000
(41%)
Good, $26,000
(<1%)
Very Good,
$1,840,000
(55%)
$1.8m
$26k
$72k
$1.3m
$46k $86k
0%
20%
40%
60%
80%
100%
Culverts
Bridges
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Dorion Township
Asset Management Plan 2025
65
8.12 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 28 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 28 Estimated Useful Life vs. Asset Age: Bridges & Culverts
Age analysis reveals that on average, bridges have consumed all their estimated useful life, with
an average age of 64 years against an average EUL of 50 years. On average, culverts have a
much lower average age of 9.5 years, against an average EUL of 48 years. OSIM assessments
should continue to be used in conjunction with age and asset criticality to prioritize capital and
maintenance expenditures.
64
9.5
50
48.1
0
10
20
30
40
50
60
70
Bridges
Culverts
Number of Years
Weighted Average Age
Weighted Average EUL
Dorion Township
Asset Management Plan 2025
66
8.13 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 32 outlines the Township 's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance
Most lifecycle activities are driven by the results of mandated structural
inspections completed according to the Ontario Structure Inspection
Manual (OSIM).
Public Works staff complete maintenance activities like bridge
sweeping and washing based on findings from regular patrols of
bridges and culverts.
Inspection
Most lifecycle activities are driven by the results of mandated structural
inspections completed according to the Ontario Structure Inspection
Manual (OSIM).
Public Works staff complete maintenance activities like bridge sweeping
and washing based on findings from regular patrols of bridges and
culverts.
Table 32 Lifecycle Management Strategy: Bridges & Culverts
8.14 Risk Analysis
The risk matrix below is generated using available asset data, including condition and
replacement costs. The risk ratings for assets without useful attribute data were calculated using
only condition, service life remaining, and their 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.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$177,702
$1,891,210
$1,300,000
-
-
(5%)
(56%)
(39%)
(0%)
(0%)
Figure 29 Risk Matrix: Bridges & Culverts
Dorion Township
Asset Management Plan 2025
67
8.15 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.
8.15.1
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 Township's 1 bridges and 18 structural
culverts are a key component of the municipal
transportation network. Except for Coldwater
Bridge which has a 20 tonne load limit, none of
the bridges or structural culverts have load
restrictions. Therefore, most types of vehicles
can cross the Township's bridges and structural
culverts without restriction.
Quality
Description or images of the
condition of bridges & culverts
and how this would affect the
use of the bridges & culverts
Bridge and structural culvert condition is
assessed based on a range of very poor to very
good. The Township's bridge was most recently
assessed in fair condition. Structural culverts
assessments ranged from poor to good.
With ongoing maintenance and rehabilitation as
required, bridges and culverts are expected to
operate regularly without restrictions.
Table 33 O. Reg. 588/17 Community Levels of Service: Bridges & Culverts
8.15.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2023)
Scope
% of bridges in the Township with loading or
dimensional restrictions
100% 12
Quality
Average bridge condition index value for bridges in
the Township
Fair (BCI 54)
Average condition index value for structural
culverts in the Township
Poor (BCI 38)
Performance Capital reinvestment rate
.05%
Table 34 O. Reg. 588/17 Technical Levels of Service: Bridges & Culverts
12 The Coldwater Drive Bridge has a load limit of 20 tonne.
Dorion Township
Asset Management Plan 2025
68
Appendix C: Facilities
Table 35summarizes the quantity and current replacement cost of the Township 's various
facilities assets as managed in its primary asset management register, Citywide Assets.
Segment
Quantity
(Componentized)
Unit of
Measure
Replacement
Cost
Primary RC
Method
Administration
52
Componetized
Assets
$1,138,000
User Defined
Costs Inflated
Firehall
Centennial
Building
85
$1,760,000
Museum
24
$335,000
Public Works
Garage Building
67
$1,187,000
TOTAL
$4,420,000
Table 35 Detailed Asset Inventory: Facilities
Figure 30 Portfolio Valuation: Facilities
Fire Department,
$1,760,000,
(40%)
Public Works,
$1,187,000,
(27%)
Administration,
$1,138,000,
(26%)
Museum,
$335,000, (8%)
Dorion Township
Asset Management Plan 2025
69
8.16 Asset Condition
Figure 31 summarizes the replacement cost-weighted condition of the Township 's facilities.
Based on a combination of field inspection data and age, 81% of assets are in fair or better
condition; the remaining 19% of assets are in poor to very poor condition. Condition
assessments conducted in 2022 and projected to 2023 were available for all building assets.
Assets in poor or worse conditions 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 31, the
majority of the Township 's facilities assets are in fair or better condition.
Figure 31 Asset Condition: Facilities Overall
Condition is further reported by building segment in Figure 32, below.
Figure 32 Asset Condition: Facilities by Segment
Very Poor,
$722,000
(16%)
Poor, $102,000
(2%)
Fair, $404,000
(9%)
Good,
$1,076,000
(24%)
Very Good,
$2,117,000
(48%)
$288k
$75k
$1.2m
$549k
$463k
$190k
$116k
$306k
$240k
$51k
$56k
$57k
$49k
$44k
$9k
$146k
$19k
$339k
$217k
0%
20%
40%
60%
80%
100%
Public Works
Museum
Fire Department
Administration
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Dorion Township
Asset Management Plan 2025
70
8.17 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 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. For every segment the
weighted average age is less than the weighted average estimated useful life (EUL).
Figure 33 Estimated Useful Life vs. Asset Age: Facilities
23
37.4
42.3
23
42.3
54.2
49.3
40.6
0
10
20
30
40
50
60
Administration
Fire Department
Museum
Public Works
Number of Years
Weighted Average Age
Weighted Average EUL
Dorion Township
Asset Management Plan 2025
71
8.18 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 &
Inspection
Building Condition Assessments (BCA) were completed in 2021 by a third-
party consultant.
➢ BCAs are a process of systematically inspecting, reviewing, and
documenting the state of facilities.
➢ Using UNIFORMAT II classification system, the BCA provides an
assessed condition score for each building component based on
visual review.
➢ Assets are identified using UNIFOMRAT II which is based on three
levels of componentization: a major building group (Level 1), a
component group (Level 2) and specific components (Level 3).
Senior staff complete weekly walk-throughs of all facilities to review
interior and exterior components including HVAC, electrical, and plumbing
systems. All activities conducted within the facilities are documented in a
daily diary and transparently communicated to council monthly.
Rehabilitation/
Replacement
Rehabilitation and replacement decisions consider the BCA assessment
information, the criticality of the component, and its historical functionality.
Table 36 Lifecycle Management Strategy: Facilities
8.19 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, replacement costs, traffic data, and road class. The risk ratings for assets without
useful attribute data were calculated using only condition, service life remaining, and their
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.
Dorion Township
Asset Management Plan 2025
72
Figure 34 Risk Matrix: Facilities
8.20 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.
8.20.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2023)
Quality
Appropriate actions and
interventions are taken to
ensure the regular safe use of
Facilities assets.
Facilities are maintained and continuously
improved by public works staff. Senior staff
complete weekly walk-through of all facilities
to review interior and exterior components
including HVAC, electrical, and plumbing
systems. All activities conducted within
facilities are documented in a daily diary and
transparently communicated to the council
monthly.
Sustainable
There are long-term plans in
place for the renewal and
replacement of Facilities
components.
In 2020, the Township of Dorion hired an
external consultant to complete Building
Condition Assessments (BCA) of their facilities.
This project involved the identification of all
building components (i.e. windows, doors,
roofs, etc.) and an assessment of their current
condition and near and long-term investment
requirements. This has provided the Township
with a more robust understanding of their
asset's investment requirements. The
Township is working to develop their financial
strategies to better support their identified
long-term capital investment requirements.
User-
Access
Facilities assets are available for
public use and programming,
suggestions and complaints are
received and responded to in a
timely manner.
Regular inspection and cleaning are completed
to ensure that assets are available for public
use. Where issues and/or concerns are
identified, they are escalated to Senior staff.
Table 37 O. Reg. 588/17 Community Levels of Service: Facilities
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$713,592
$2,566,115
$706,941
$393,825
$39,928
(16%)
(58%)
(16%)
(9%)
(<1%)
Dorion Township
Asset Management Plan 2025
73
8.20.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Quality
Average Condition of Assets
70%
Performance
Actual Capital Reinvestment Rate
0.03%
Annual Capital Investment
$1k
Target Capital Reinvestment Rate
2.8%
Average Annual Capital Requirement
$91k
Table 38 O. Reg. 588/17 Technical Levels of Service: Facilities
Dorion Township
Asset Management Plan 2025
74
Appendix D: Machinery & Equipment
The Township owns a variety of machinery and equipment assets, primarily these include:
-
Fire Gear
-
Library Materials
-
Public Works Equipment
These assets are segmented into three groups. Segment based inventory information is
summarized below.
8.21 Inventory & Valuation
Table 39 summarizes the quantity and current replacement cost of the Township 's various
machinery and equipment assets as managed in its primary asset management register,
Citywide Assets.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Appliances/ Food
Service Equipment
1
Assets
$38,000
CPI
Library
100
Assets
$40,000
CPI
Mobile Equipment
12
Assets
$544,000
User-Defined
TOTAL
$623,000
Table 39 Detailed Asset Inventory: Machinery & Equipment
Figure 35 Portfolio Valuation: Machinery & Equipment
Mobile
Equipment,
$544,000,
(87%)
Library,
$40,000, (6%)
Appliances/Food
Service
Equipment,
$38,000, (6%)
Dorion Township
Asset Management Plan 2025
75
8.22 Asset Condition
Figure 36 summarizes the replacement cost-weighted condition of the Township 's machinery
and equipment. Based on a combination of field inspection data and age, 89% of assets are in
fair or better condition; the remaining 11% of assets are in poor to very poor condition.
Condition assessments were available for 90% of assets based on replacement cost. This
condition data was projected from inspection date to current year to estimate their condition
today. No condition data was available for library assets.
Assets in poor or worse conditions 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 36 the
majority of the Township 's machinery and equipment assets are in fair or better condition.
Figure 36 Asset Condition: Machinery & Equipment Overall
As illustrated in Figure 37, based on condition assessments and age-based conditions, nearly all
the mobile equipment is in fair or better condition; this contrasts with library machinery and
equipment which is all in poor condition. Appliance and food services equipment is entirely in fair
condition.
Figure 37 Asset Condition: Machinery & Equipment by Segment
Very Poor,
$58,000 (9%)
Poor, $10,000
(2%)
Fair,
$172,000
(28%)
Good,
$268,000
(43%)
Very Good,
$115,000
(19%)
$115k
$268k
$134k
$38k
$10k
$18k
$40k
0%
20%
40%
60%
80%
100%
Mobile
Equipment
Library
Appliances/Food
Service
Equipment
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Dorion Township
Asset Management Plan 2025
76
8.23 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 38 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. The average age of
appliances and food services equipment is more than double the weighted average estimated
useful life (EUL); in contrast the average age of mobile equipment is less than the weighted
average EUL and the weighted average age of library equipment is slightly greater than the
weighted average EUL.
Figure 38 Estimated Useful Life vs. Asset Age: Machinery & Equipment
8.24 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, replacement costs, traffic data, and road class. The risk ratings for assets without
useful attribute data were calculated using only condition, service life remaining, and their
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
32
11.6
9.1
15
10
13.7
0
5
10
15
20
25
30
35
Appliances/Food Service
Equipment
Library
Mobile Equipment
Number of Years
Weighted Average Age
Weighted Average EUL
Dorion Township
Asset Management Plan 2025
77
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.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$4,560
$6,439
-
$2,258
$609,313
(<1%)
(1%)
(0%)
(<1%)
(98%)
Figure 39 Risk Matrix: Machinery & Equipment
8.25 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.
8.25.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2023)
Quality
Appropriate actions and
interventions are taken to ensure
the regular safe use of Machinery &
Equipment assets.
Machinery & equipment assets are
inspected regularly and are maintained for
use as per their useful life. Maintenance is
tailored to each asset based upon use and
is well documented.
Sustainable
There are long-term plans in place
for the renewal and replacement of
Machinery & Equipment assets
Asset replacement decisions consider the
assets age, hours of use, current
performance, and anticipated future life
which are often correlated with the assets
Estimate Useful life. The Township does
have a general reserve for larger
machinery and equipment assets. When
funds are drawn from the reserve,
contributions are initiated to build back up
the reserve balance.
Table 40 O. Reg. 588/17 Community Levels of Service: Machinery & Equipment
Dorion Township
Asset Management Plan 2025
78
8.25.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Quality
Average Condition of Assets
43%
Sustainable
Actual Capital Reinvestment Rate
4.31%
Annual Capital Investment
$19k
Target Capital Reinvestment Rate
8.99%
Average Annual Capital Requirement
$40k
Table 41 O. Reg. 588/17 Technical Levels of Service: Machinery & Equipment
Dorion Township
Asset Management Plan 2025
79
Appendix E: Rolling Stock
Rolling stock assets allow staff to efficiently deliver services and personnel. Rolling stock assets
are primarily used for Fire Protection and Public Works.
8.26 Inventory & Valuation
Table 42 summarizes the quantity and current replacement cost of all rolling stock assets
available in the Township 's asset register.
Segment
Quantity
Unit of
Measure
Replacement Cost
Primary RC
Method
Freightliner
Romper
1
Assets
$585,000
User-Defined
Freightliner Tanker
2
Assets
$230,000
CPI
Pick-up Truck
3
Assets
$86,000
User Defined
TOTAL
$900,000
Table 42 Detailed Asset Inventory: Rolling Stock
Figure 40 Portfolio Valuation: Rolling Stock
8.27 Asset Condition
Figure 41 summarizes the replacement cost-weighted condition of the Township 's rolling stock
assets. Based on assessed condition information, approximately 34% of assets are in good
Freightliner
Romper,
$585,000,
(65%)
Freightliner
Tanker,
$230,000,
(26%)
Pick-up Truck,
$86,000, (10%)
Dorion Township
Asset Management Plan 2025
80
condition, the remaining 66% of assets are in poor condition. Assets in poor condition may be
candidates for replacement in the short term and should be monitored for further degradation in
condition.
Figure 41 Asset Condition: Rolling Stock Overall
Figure 42 summarizes the condition of rolling stock assets by their segment. The analysis
illustrates that the freightliner tanker and pick-up trucks are on average in good condition in
contrast the freightliner romper is in poor condition.
Figure 42 Asset Condition: Rolling Stock by Segment
Poor, $593,000
(66%)
Good,
$307,000
(34%)
$77k
$230k
$9k
$585k
0%
20%
40%
60%
80%
100%
Pick-up Truck
Freightliner
Tanker
Freightliner
Romper
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Dorion Township
Asset Management Plan 2025
81
8.28 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 43 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. For every segment
except the pick-up truck the weighted average age is greater than the weighted average
estimated useful life (EUL).
Figure 43 Estimated Useful Life vs. Asset Age: Rolling Stock
8.29 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, and replacement costs. As no attribute data was available for storm assets, the risk
ratings for assets were calculated using only these required, minimum asset fields.
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.
27.6
17
8
10.2
10
9.5
0
5
10
15
20
25
30
Freightliner Romper
Freightliner Tanker
Pick-up Truck
Number of Years
Weighted Average Age
Weighted Average EUL
Dorion Township
Asset Management Plan 2025
82
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.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$20,632
$9,541
-
$65,000
$804,604
(2%)
(1%)
(0%)
(7%)
(89%)
Figure 44 Risk Matrix: Rolling Stock
8.30 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.
8.30.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2023)
Quality
Appropriate actions and
interventions are taken
to ensure the regular
safe use of Rolling Stock
assets.
Circle checks are completed before each use and
assets are routinely inspected and maintained based
on their hours of use. Repairs and maintenance are
completed by the Township's staff or an external
mechanic as required. All maintenance activities are
documented in repair logs.
Sustainable
There are long-term
plans in place for the
renewal and replacement
of Rolling Stock assets
Rolling stock asset replacement decisions are
predominantly based on asset failure and are handled
within the context of the year of replacements
financial plan and the Public Works reserve levels.
Critical asset components are pre-purchased and
available to lower the service impact of asset failure.
Table 43 O. Reg. 588/17 Community Levels of Service: Rolling Stock
8.30.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Quality
Average Condition of Assets
6%
Sustainable
Actual Capital Reinvestment Rate
0.19%
Annual Capital Investment
$1k
Dorion Township
Asset Management Plan 2025
83
Service
Attribute
Technical Metric
Current LOS (2024)
Target Capital Reinvestment Rate
10.8%
Average Annual Capital Requirement
$52k
Table 44 O. Reg. 588/17 Technical Levels of Service: Rolling Stock
Dorion Township
Asset Management Plan 2025
84
Appendix H - Risk Rating Criteria
Probability of Failure
Asset Category
Risk
Criteria
Criteria
Weighting
Value/Range
Probability of
Failure Score
All
Condition
100
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Consequence of Failure
Asset Category
Risk
Classification
Risk Criteria
Value/Range
Consequence of
Failure Score
Roads (Paved)
Economic
(100%)
Replacement Cost
(100%)
All
4
Bridges & Culverts
Economic
(100%)
Replacement Cost
(100%)
$0-$200,000
1
$200,000-$400,000
2
$400,000-$800,000
3
$800,000-$1,000,000
4
$1,000,000+
5
Buildings
Economic
(100%)
Replacement Cost
(100%)
$0-$2,000
1
$2,000-$6,000
2
$6,000-$10,000
3
$10,000-$50,000
4
$50,000+
5