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Asset
Management
Plan
Township of Gillies
2023
This Asset Management Program was prepared by:
Empowering your organization through advanced
asset management, budgeting & GIS solutions
Key Statistics
Replacement cost of
asset portfolio
$5.8 million
Replacement cost of
infrastructure per household
$28,000 (2021)
Percentage of assets in fair
or better condition
33%
Percentage of assets with
assessed condition data
32%
Table of Contents
Key Statistics............................................................................................... i
Executive Summary ..................................................................................... 4
Scope .................................................................................................. 4
Findings ............................................................................................... 5
Recommendations ................................................................................. 5
1
Introduction & Context ........................................................................... 6
Gillies Community Profile ................................................................. 7
An Overview of Asset Management ................................................... 8
Key Concepts in Asset Management .................................................. 9
Climate Change ........................................................................... 12
Ontario Regulation 588/17 ............................................................. 14
2
Scope and Methodology ........................................................................ 17
Asset Categories Included in this AMP ............................................. 18
Deriving Replacement Costs........................................................... 18
Estimated Useful Life and Service Life Remaining .............................. 19
Reinvestment Rate ....................................................................... 19
Deriving Asset Condition ............................................................... 20
Deriving Asset Risk....................................................................... 21
3
Portfolio Overview ................................................................................ 24
Total Replacement Cost of Asset Portfolio ......................................... 25
Condition of Asset Portfolio ............................................................ 25
Service Life Remaining .................................................................. 26
Forecasted Capital Requirements .................................................... 26
4
Road Network ..................................................................................... 28
Asset Inventory & Costs ................................................................ 28
Asset Condition & Age ................................................................... 29
Lifecycle Management Strategy ...................................................... 30
Risk & Criticality .......................................................................... 32
Levels of Service .......................................................................... 34
Recommendations ........................................................................ 36
5
Bridges & Structural Culverts ................................................................. 38
Asset Inventory & Costs ................................................................ 38
Asset Condition & Age ................................................................... 38
Lifecycle Management Strategy ...................................................... 40
Risk & Criticality .......................................................................... 41
Levels of Service .......................................................................... 43
Recommendations ........................................................................ 45
6
Buildings & Facilities ............................................................................. 46
Asset Inventory & Costs ................................................................ 46
Asset Condition & Age ................................................................... 46
Lifecycle Management Strategy ...................................................... 48
Risk & Criticality .......................................................................... 49
Levels of Service .......................................................................... 51
Recommendations ........................................................................ 53
7
Vehicles ............................................................................................. 55
Asset Inventory & Costs ................................................................ 55
Asset Condition & Age ................................................................... 55
Lifecycle Management Strategy ...................................................... 57
Risk & Criticality .......................................................................... 58
Levels of Service .......................................................................... 59
Recommendations ........................................................................ 61
8
Machinery & Equipment ........................................................................ 62
Asset Inventory & Costs ................................................................ 62
Asset Condition & Age ................................................................... 63
Lifecycle Management Strategy ...................................................... 64
Risk & Criticality .......................................................................... 66
Levels of Service .......................................................................... 67
Recommendations ........................................................................ 69
9
Land Improvements ............................................................................. 70
Asset Inventory & Costs ................................................................ 70
Asset Condition & Age ................................................................... 70
Lifecycle Management Strategy ...................................................... 72
Risk & Criticality .......................................................................... 73
Levels of Service .......................................................................... 75
Recommendations ........................................................................ 77
10 Impacts of Growth ............................................................................... 78
Description of Growth Assumptions ................................................. 79
Regional growth ........................................................................... 80
Impact of Growth on Lifecycle Activities ........................................... 82
11 Appendices ......................................................................................... 83
Appendix A: Infrastructure Report Card ................................................... 84
Appendix B: 10-Year Capital Requirements .............................................. 85
Appendix C: Level of Service Maps ......................................................... 88
Appendix D: Risk Rating Criteria ............................................................ 89
Appendix E: Condition Assessment Guidelines .......................................... 90
4
Executive Summary
Municipal infrastructure provides the foundation for the economic, social, and
environmental health and growth of a community through the delivery of critical
services. The goal of asset management is to deliver an adequate level of service in
the most cost-effective manner. This involves the development and implementation
of asset management strategies and long-term financial planning.
Scope
This AMP identifies the current practices and strategies that are in place to manage
public infrastructure and makes recommendations where they can be further
refined. Through the implementation of sound asset management strategies, the
Township can ensure that public infrastructure is managed to support the
sustainable delivery of municipal services.
This AMP include the following asset categories:
With the development of this AMP the Township has achieved compliance
with O. Reg. 588/17 to the extent of the requirements that must be
completed by July 1, 2024. There are additional requirements concerning
proposed levels of service and growth that must be met by July 1, 2025.
Asset Category
Road Network
Vehicles
Land Improvements
Bridges & Structural Culverts
Buildings & Facilities
Machinery & Equipment
5
Findings
The overall replacement cost of the asset categories included in this AMP totals $5.8
million. 33% of all assets analysed in this AMP are in fair or better condition and
assessed condition data was available for 32% of assets. For the remaining 68% 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
(gravel roads) and replacement only strategies (all other assets) to determine the
lowest cost option to maintain the current level of service.
To meet capital replacement and rehabilitation needs for existing infrastructure,
prevent infrastructure backlogs, and achieve long-term sustainability, the
Township's average annual capital requirement totals $302,000.
It is important to note that this AMP represents a snapshot in time and is based on
the best available processes, data, and information at the Township. Strategic asset
management planning is an ongoing and dynamic process that requires continuous
improvement and dedicated resources.
Recommendations
Recommendations to guide continuous refinement of the Township's asset
management program. These include:
Reviewing data to update and maintain a complete and accurate dataset.
Developing a condition assessment strategy with a regular schedule where
feasible.
Reviewing and updating lifecycle management strategies.
Development and regular review of short- and long-term plans to meet
capital requirements.
Measuring current levels of service and identifying sustainable proposed
levels of service.
6
1
Introduction & Context
Key Insights
The Township of Gillies is a small municipality in
Northwestern Ontario and has identified sustainable
infrastructure growth as a priority
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 Township's asset management policy provides clear
direction to staff on their roles and responsibilities
regarding asset management
An asset management plan is a living document that
should be updated regularly to inform long-term
planning
Ontario Regulation 588/17 outlines several key
milestone and requirements for asset management plans
in Ontario between July 1, 2022 and 2025
7
Gillies Community Profile
Census Characteristic
Township of Gillies
Ontario
Population 2021
441
14,223,942
Population Change 2016-2021
-7.0%
5.8%
Total Private Dwellings
208
5,929,250
Population Density
4.8/km2
15.9/km2
Land Area
92.68 km2
892,411.76 km2
The Township of Gillies is a single-tier municipality and part of the Thunder Bay
District which is located in northwestern Ontario. Gillies is positioned west of the
city of Thunder Bay.
The Township is part of the Thunder Bay Census Metropolitan Area and includes the
communities of Hymers and South Gillies. Rural Townships within northwestern
Ontario like Gillies, have a tight-knit communities with a strong sense of local
identity and tradition. These communities host local events, fairs, and gatherings
that reflect their rural heritage and values.
The Township has strong agricultural roots, celebrating the Hymers Fair which was
established in 1912. The Hymers Fair preserves its country spirit by focusing on
agriculture, without modern distractions like beer gardens or midways. It celebrates
local self-sufficiency in food and livestock, encouraging community competition in
traditional skills such as baking and animal husbandry, maintaining its original
values and communal pride.
Demand in the Township of Gillies and its surrounding region is primarily driven by
its agricultural heritage, scenic rural landscapes, and the lifestyle associated with
proximity to Thunder Bay. There's a strong market for agricultural products and
services, real estate catering to those seeking a tranquil rural lifestyle, and tourism
leveraging the natural environment. Additionally, there's a demand for local goods,
essential services to support community well-being, and initiatives focused on
environmental conservation, all reflecting the area's blend of rural charm and
regional connectivity.
The Township of Gillies prioritizes infrastructure development to preserve rural life,
adapt to changes, and ensure resident safety and resource management. The
Official Plan emphasizes sustainable growth, environmental protection, and
economic diversification, aiming to meet current and future community needs
within a framework that values the Township's unique rural identity.
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An Overview of Asset
Management
Municipalities are responsible for managing and maintaining a broad portfolio of
infrastructure assets to deliver services to the community. The goal of asset
management is to minimize the lifecycle costs of delivering infrastructure services,
manage the associated risks, while maximizing the value ratepayers receive from
the asset portfolio.
The acquisition of capital assets accounts for only 10-20% of their total cost of
ownership. The remaining 80-90% derives from operations and maintenance. This
AMP focuses its analysis on the capital costs to maintain, rehabilitate and replace
existing municipal infrastructure assets.
These costs can span decades, requiring planning and foresight to ensure financial
responsibility is spread equitably across generations. An asset management plan is
critical to this planning, and an essential element of broader asset management
program. The industry-standard approach and sequence to developing a practical
asset management program begins with a Strategic Plan, followed by an Asset
Management Policy and an Asset Management Strategy, concluding with an Asset
Management Plan.
This industry standard, defined by the Institute of Asset Management (IAM),
emphasizes the alignment between the corporate strategic plan and various asset
management documents. The strategic plan has a direct, and cascading impact on
asset management planning and reporting.
1.2.1
Asset Management Policy
An asset management policy represents a statement of the principles guiding the
Township's approach to asset management activities. It aligns with the
Build
20%
Operate, Maintain, and Dispose
80%
Total Cost of Ownership
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organizational strategic plan and provides clear direction to municipal staff on their
roles and responsibilities as part of the asset management program.
1.2.2
Asset Management Strategy
An asset management strategy outlines the translation of organizational objectives
into asset management objectives and provides a strategic overview of the
activities required to meet these objectives. It provides greater detail than the
policy on how the Township plans to achieve asset management objectives through
planned activities and decision-making criteria.
A 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.
1.2.3
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.
Key Concepts in Asset
Management
Effective asset management integrates several key components, including lifecycle
management, risk management, and levels of service. These concepts are applied
throughout this asset management plan and are described below in greater detail.
1.3.1
Lifecycle Management Strategies
The condition or performance of most assets will deteriorate over time. This process
is affected by a range of factors including an asset's characteristics, location,
10
utilization, maintenance history and environment. Asset deterioration has a
negative effect on the ability of an asset to fulfill its intended function, and may be
characterized by increased cost, risk and even service disruption.
To ensure that municipal assets are performing as expected and meeting the needs
of customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
There are several field intervention activities that are available to extend the life of
an asset. These activities can be generally placed into one of three categories:
maintenance, rehabilitation and replacement. The following table provides a
description of each type of activity and the general difference in cost.
Lifecycle
Activity
Description
Example
(Paved Roads)
Cost
Maintenance
Activities that prevent defects
or deteriorations from
occurring
Crack Seal
$
Rehabilitation /
Renewal
Activities that rectify defects or
deficiencies that are already
present and may be affecting
asset performance
Mill & Re-
surface
$$
Replacement /
Reconstruction
Asset end-of-life activities that
often involve the complete
replacement of assets
Full
Reconstruction
$$$
Depending on initial lifecycle management strategies, asset performance can be
sustained through a combination of maintenance and rehabilitation, but at some
point, replacement is required. Understanding what effect these activities will have
on the lifecycle of an asset, and their cost, will enable staff to make better
recommendations.
The Township's approach to lifecycle management is described within each asset
category outlined in this AMP. Developing and implementing a proactive lifecycle
strategy will help staff to determine which activities to perform on an asset and
when they should be performed to maximize useful life at the lowest total cost of
ownership.
1.3.2
Risk Management Strategies
Municipalities generally take a 'worst-first' approach to infrastructure spending.
Rather than prioritizing assets based on their importance to service delivery, assets
in the worst condition are fixed first, regardless of their criticality. However, not all
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assets are created equal. Some are more important than others, and their failure or
disrepair poses more risk to the community than that of others. For example, a
road with a high volume of traffic that provides access to critical services poses a
higher risk than a low volume rural road. These high-value assets should receive
funding before others.
By identifying the various impacts of asset failure and the likelihood that it will fail,
risk management strategies can identify critical assets, and determine where
maintenance efforts, and spending, should be focused.
This AMP includes a high-level evaluation of asset risk and criticality. Each asset has
been assigned a probability of failure score and consequence of failure score based
on available asset data. These risk scores can be used to prioritize maintenance,
rehabilitation and replacement strategies for critical assets.
1.3.3
Levels of Service
A level of service (LOS) is a measure of what the Township is providing to the
community and the nature and quality of that service. Within each asset category in
this AMP, technical metrics and qualitative descriptions that measure both technical
and community levels of service have been established and measured as data is
available.
These measures include a combination of those that have been outlined in O. Reg.
588/17 in addition to performance measures identified by the Township as worth
measuring and evaluating. 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 (roads, bridges
and structural culverts, water, wastewater, stormwater) the Province, through O.
Reg. 588/17, has provided qualitative descriptions that are required to be included
in this AMP. For non-core asset categories, the Township has determined the
qualitative descriptions that will be used to determine the community level of
service provided. These descriptions can be found in the Levels of Service
subsection within each asset category.
Technical Levels of Service
Technical levels of service are a measure of key technical attributes of the service
being provided to the community. These include mostly quantitative measures and
12
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 (roads, bridges and structural culverts, water,
wastewater, stormwater) the Province, through O. Reg. 588/17, has provided
technical metrics that are required to be included in this AMP. For non-core asset
categories, the Township has determined the technical metrics that will be used to
determine the technical level of service provided. These metrics can be found in the
Levels of Service subsection within each asset category.
Current and Proposed Levels of Service
This AMP focuses on measuring the current level of service provided to the
community. Once current levels of service have been measured, the Township plans
to establish proposed levels of service over a 10-year period, in accordance with O.
Reg. 588/17.
Proposed levels of service should be realistic and achievable within the timeframe
outlined by the Township. They should also be determined with consideration of a
variety of community expectations, fiscal capacity, regulatory requirements,
corporate goals and long-term sustainability. Once proposed levels of service have
been established, and prior to July 2025, the Township must identify a lifecycle
management and financial strategy which allows these targets to be achieved.
Climate Change
Climate change can cause severe impacts on human and natural systems around
the world. The effects of climate change include increasing temperatures, higher
levels of precipitation, droughts, and extreme weather events. In 2019, Canada's
Changing Climate Report (CCCR 2019) was released by Environment and Climate
Change Canada (ECCC).
The report revealed that between 1948 and 2016, the average temperature
increase across Canada was 1.7°C; moreover, during this time period, Northern
Canada experienced a 2.3°C increase. The temperature increase in Canada has
doubled that of the global average. If emissions are not significantly reduced, the
temperature could increase by 6.3°C in Canada by the year 2100 compared to 2005
levels. Observed precipitation changes in Canada include an increase of
approximately 20% between 1948 and 2012. By the late 21st century, the
projected increase could reach an additional 24%. During the summer months,
some regions in Southern Canada are expected to experience periods of drought at
a higher rate. Extreme weather events and climate conditions are more common
13
across Canada. Recorded events include droughts, flooding, cold extremes, warm
extremes, wildfires, and record minimum arctic sea ice extent.
The changing climate poses a significant risk to the Canadian economy, society,
environment, and infrastructure. The impacts on infrastructure are often a result of
climate-related extremes such as droughts, floods, higher frequency of freeze-thaw
cycles, extended periods of high temperatures, high winds, and wildfires. Physical
infrastructure is vulnerable to damage and increased wear when exposed to these
extreme events and climate variabilities. Canadian Municipalities are faced with the
responsibility to protect their local economy, citizens, environment, and physical
assets.
1.4.1
Gillies Climate Profile
The Township of Gillies is located in Northwestern Ontario within the District of
Thunder Bay. 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) - the Township of Gillies may experience the
following trends:
Higher Average Annual Temperature:
Between the years of 1971 and 2000, the annual average temperature was
2.3°C
Under a high emissions scenario, the annual average temperatures are
projected to be 5.1°C for the 2021-2050 period, 7.4°C for the 2051-2080
period, and 9.3°C for the last 30 years of this century.
Increase in Total Annual Precipitation:
Under a high emissions scenario, Gillies is projected to experience an 8%
increase in precipitation for the 2051-2080 period and a 14% increase for the
last 30 years of this century.
1.4.2
Integrating Climate Change and Asset
Management
Asset management practices aim to deliver sustainable service delivery - the
delivery of services to residents today without compromising the services and well-
being of future residents. Climate change threatens sustainable service delivery by
reducing the useful life of an asset and increasing the risk of asset failure. Desired
levels of service can be more difficult to achieve as a result of climate change
14
impacts such as flooding, high heat, drought, and more frequent and intense
storms.
In order to achieve the sustainable delivery of services, climate change
considerations should be incorporated into asset management practices. The
integration of asset management and climate change adaptation observes industry
best practices and enables the development of a holistic approach to risk
management.
Ontario Regulation 588/17
As part of the Infrastructure for Jobs and Prosperity Act, 2015, the Ontario
government introduced Regulation 588/17 - Asset Management Planning for
Municipal Infrastructure (O. Reg 588/17). Along with creating better performing
organizations, more liveable and sustainable communities, the regulation is a key,
mandated driver of asset management planning and reporting. It places substantial
emphasis on current and proposed levels of service and the lifecycle costs incurred
in delivering them.
The diagram below outlines key reporting requirements under O. Reg 588/17 and
the associated timelines.
Strategic Asset Management
Policy
2019
Asset Management Plan for Core
Assets with the following
components:
1. Current levels of service
2. Inventory analysis
3. Lifecycle activities to
sustain LOS
4. Cost of lifecycle activities
5. Population and employment
forecasts
6. Discussion of growth
impacts
2022
15
Asset Management Plan for All
Assets with the following
additional components:
1. Proposed levels of service
for next 10 years
2. Updated inventory analysis
3. Lifecycle management
strategy
4. Financial strategy and
addressing shortfalls
5. Discussion of how growth
assumptions impacted
lifecycle and financial
2025
Asset Management Plan for Core and
Non-Core Assets (same components
as 2022) and Asset Management
Policy Update
2024
16
1.5.1
O. Reg. 588/17 Compliance Review
The following table identifies the requirements outlined in Ontario Regulation
588/17 for municipalities to meet by July 1, 2024. Next to each requirement a page
or section reference is included in addition to any necessary commentary.
Requirement
O. Reg.
Section
AMP Section
Reference
Status
Summary of assets in each
category
S.5(2), 3(i)
4.1 - 9.1
Complete
Replacement cost of assets in each
category
S.5(2), 3(ii)
4.1 - 9.1
Complete
Average age of assets in each
category
S.5(2), 3(iii)
4.2 - 9.2
Complete
Condition of core assets in each
category
S.5(2), 3(iv)
4.2 - 9.2
Complete
Description of Township's approach
to assessing the condition of
assets in each category
S.5(2), 3(v)
4.2.1 - 9.2.1
Complete
Current levels of service in each
category
S.5(2), 1(i-ii)
4.5 - 9.5
Complete
Current performance measures in
each category
S.5(2), 2
4.4 - 9.4
Complete
Lifecycle activities needed to
maintain current levels of service
for 10 years
S.5(2), 4
4.3 - 9.3
Complete
Costs of providing lifecycle
activities for 10 years
S.5(2), 4
Appendix B
Complete
Growth assumptions
S.5(2), 5(i-ii)
S.5(2), 6(i-vi)
10.1 - 10.3
Complete
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2
Scope and Methodology
Key Insights
This asset management plan includes 6 asset categories
and is fully tax-funded
The source and recency of replacement costs impacts
the accuracy and reliability of asset portfolio valuation
Accurate and reliable condition data helps to prevent
premature and costly rehabilitation or replacement and
ensures that lifecycle activities occur at the right time to
maximize asset value and useful life
18
Asset Categories Included in
this AMP
This asset management plan for the Township of Gillies is produced in compliance
with Ontario Regulation 588/17. The July 2024 deadline under the regulation--the
second of three AMPs--requires analysis of core assets (roads, bridges and
structural culverts) and non-core assets (buildings & facilities, vehicles, machinery
& equipment, land improvements and technology & communications).
The AMP summarizes the state of the infrastructure for the Township's asset
portfolio, establishes current levels of service and the associated technical and
customer oriented key performance indicators (KPIs), outlines lifecycle strategies
for optimal asset management and performance, and provides financial strategies
to reach sustainability for the asset categories listed below.
Asset Category
Source of Funding
Road Network
Tax Levy
Bridges & Culverts
Buildings & Facilities
Vehicles
Machinery & Equipment
Land Improvements
Deriving Replacement Costs
There are a range of methods to determine the replacement cost of an asset, and
some are more accurate and reliable than others. This AMP relies on two
methodologies:
User-Defined Cost and Cost/Unit: Based on costs provided by municipal
staff which could include average costs from recent contracts; data from
engineering reports and assessments; staff estimates based on knowledge
and experience
Cost Inflation/CPI Tables: Historical cost of the asset is inflated based on
Consumer Price Index or Non-Residential Building Construction Price Index
User-defined costs based on reliable sources are a reasonably accurate and reliable
way to determine asset replacement costs. Cost inflation is typically used in the
19
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.
Estimated Useful Life and
Service Life Remaining
The estimated useful life (EUL) of an asset is the period over which the Township
expects the asset to be available for use and remain in service before requiring
replacement or disposal. The EUL for each asset in this AMP was assigned according
to the knowledge and expertise of municipal staff and supplemented by existing
industry standards when necessary.
By using an asset's in-service data and its EUL, the Township can determine the
service life remaining (SLR) for each asset. Using condition data and the asset's
SLR, the Township can more accurately forecast when it will require replacement.
The SLR is calculated as follows:
Service Life Remaining (SLR) = In Service Date + Estimated Useful Life(EUL) −Current Year
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:
Target Reinvestment Rate = Annual Capital Requirement
Total Replacement Cost
Actual Reinvestment Rate = Annual Capital Funding
Total Replacement Cost
20
Deriving Asset Condition
An incomplete or limited understanding of asset condition can mislead long-term
planning and decision-making. Accurate and reliable condition data helps to prevent
premature and costly rehabilitation or replacement and ensures that lifecycle
activities occur at the right time to maximize asset value and useful life.
A condition assessment rating system provides a standardized descriptive
framework that allows comparative benchmarking across the Township's asset
portfolio. The table below outlines the condition rating system used in this AMP to
determine asset condition. This rating system is aligned with the Canadian Core
Public Infrastructure Survey which is used to develop the Canadian Infrastructure
Report Card. When assessed condition data is not available, service life remaining is
used to approximate asset condition.
Condition
Description
Criteria
Service Life
Remaining
(%)
Very
Good
Fit for the future
Well maintained, good condition,
new or recently rehabilitated
80-100
Good
Adequate for
now
Acceptable, generally approaching
mid-stage of expected service life
60-80
Fair
Requires
attention
Signs of deterioration, some
elements exhibit significant
deficiencies
40-60
Poor
Increasing
potential of
affecting service
Approaching end of service life,
condition below standard, large
portion of system exhibits
significant deterioration
20-40
Very Poor
Unfit for
sustained
service
Near or beyond expected service
life, widespread signs of advanced
deterioration, some assets may
be unusable
0-20
The analysis in this AMP is based on assessed condition data only as available. In
the absence of assessed condition data, asset age is used as a proxy to determine
asset condition. Appendix E includes additional information on the role of asset
condition data and provides basic guidelines for the development of a condition
assessment program.
21
Deriving Asset Risk
Qualitative Risk
Risk is defined as the effect of uncertainty on objectives. Inherent in the
management of infrastructure assets is the assumption of risks. Often, asset risks
are specific and measurable. Sometimes, however, risks are impractical to quantify,
but are recognized for the threats they pose to assets and their ability to provide
their intended service. These are qualitative risks.
Qualitative risks can indicate key trends, challenges, and risks to service delivery
that the Township faces. Qualitative risks were identified as applicable to the
Township of Gillies's assets. The application of these risks to the Township's assets
are further discussed in within each asset category section.
Identifying what qualitative risks are applicable to the Township and which asset
categories may be most impacted is a critical first step in the management of risk.
Quantitative Risk
Asset risks may also be specific and measurable against an asset based on attribute
features like condition, material, and the cost to replace. When risk can be
quantified against an asset it is a quantitative risk.
Quantitative risk is a product of two variables: the probability that an asset will
fail, and the resulting consequences of that failure event. To calculate risk, the
probability and consequence of failure are each scored from 1 to 5, producing a
minimum risk rating of one (1) for the lowest risk assets, and a maximum risk
rating of 25 for the highest risk assets.
22
Probability of Failure
Various parameters may be used to estimate the probability or likelihood of an
asset's failure. Typically, a model is selected for a group of similar assets (e.g., all
roads, water distribution system etc.). Often parameters for estimating probability
of failure include asset condition, service life remaining, and/or asset material.
For each risk model, probability of failure (PoF) is determined through the following
steps:
1 Identification of available attribute data suitable for determining the
probability of failure for selected assets. In some instances, available asset
data may be limited requiring a more simplified PoF model, at least initially.
This process often identifies opportunities for asset data
enhancements and/or data collection.
2 Determination of the type of consequence that applies to the selected
attribute.
Condition, Design Capacity, Economic, Environmental, Health and
Safety, Operational, Social, Strategic
3 Where there are multiple parameters included in the PoF model, determine
suitable weighting of each parameter.
Weighting allows the model to recognize that each factor may impact
the probability of failure to a different degree. Where the weight is
higher, the impact that factor has on the model increases too.
Consequence of Failure
The consequence of failure describes the anticipated effect of an asset's failure to
an organization and its stakeholders. There are different types of consequences of
failure which can range from insignificant to severe. For example, failure of an
infrequently used road may affect only a few residents and/or inconvenience them
slightly (i.e., minimal detour distance). Conversely, failure of a more significant
road could create significant issues to the transportation networks and affect many
residents' ability to access critical community services (i.e., hospitals and schools).
The CoF parameters selected for each risk model aim to measure relevant
consequences of an asset's failure. For each risk model, consequence of failure is
determined through the following steps:
23
1 Identification of available attribute data suitable for determining the
consequence of failure for selected assets.
Again, the data available to calculate consequence of failure may be
limited, requiring a simplified model at least for a period.
2 Determination of the type of consequence that applies to the selected
attribute.
Condition, Design Capacity, Economic, Environmental, Health and
Safety, Operational, Social, Strategic
3 Where there are multiplied parameters included in the CoF model, determine
suitable weighting of each parameter.
Weighting allows the model to recognize that each factor may impact
the consequence of failure to a different degree. Where the weight is
higher, the impact that factor has on the model increases too.
Risk Scores
Risk Scores are derived from the total PoF multiplied by the total CoF. In this
model, risk scores may range from 0-25. The table below provides some examples
of respective PoF and CoF scores and the resultant risk rating.
Probability of Failure
Consequence of Failure
Risk Rating
1 - Rare
1 - Insignificant
1 - 4 - Very Low
2 - Unlikely
2 - Minor
5 - 7 - Low
3 - Possible
3 - Moderate
8 - 9 - Moderate
4 - Likely
4 - Major
10 - 14 - High
5 - Almost Certain
5 - Severe
15 - 25 - Very High
24
3
Portfolio Overview
Key Insights
The total replacement cost of the Township's asset
portfolio is $5.8 million
33% of all assets are in fair or better condition
61% of assets are projected to require replacement in
the next 10 years
Average annual capital requirements total $302,000 per
year across all assets included in this AMP
25
Total Replacement Cost of
Asset Portfolio
The asset categories analysed in this AMP have a total replacement cost of $5.8
million based on inventory data from 2022. This total was determined based on a
combination of user-defined costs and historical cost inflation. This estimate reflects
replacement of historical assets with similar, not necessarily identical, assets
available for procurement today.
Inflation of previous replacement or historical costs was employed as the primary
method to determine replacement costs across each asset category.
Condition of Asset Portfolio
The current condition of the assets is central to all asset management planning.
Collectively, 33% of assets in Gillies are in fair or better condition. This estimate
relies on both age-based and field condition data.
$2.7m
$1.4m
$884k
$403k
$391k
$40k
$0
$1m
$2m
$3m
Road Network
Bridges & Structural Culverts
Machinery & Equipment
Buildings & Facilities
Vehicles
Land Improvements
$76k
$339k
$20k
$218k
$95k
$51k
$329k
$8k
$198k
$81k
$131k
$102k
$30k
$239k
$152k
$31k
$294k
$11k
$2.5m
$576k
$128k
$145k
$46k
0%
25%
50%
75%
100%
Road Network
Bridges & Structural Culverts
Buildings & Facilities
Land Improvements
Machinery & Equipment
Vehicles
Very Good
Good
Fair
Poor
Very Poor
26
This AMP relies on assessed condition data for 32% of assets included in this AMP;
for the remaining portfolio, age is used as an approximation of condition. Assessed
condition data is invaluable in asset management planning as it reflects the true
condition of the asset and its ability to perform its functions. The table below
identifies the source of condition data used throughout this AMP.
Asset Category
% of Assets with
Assessed Condition
Source of Condition
Data
Road Network
18%
Staff Assessments
Bridges & Structural Culverts
100%
2021 OSIMs Report
Vehicles
3%
Staff Assessments
Service Life Remaining
Based on asset age, available assessed condition data and estimated useful life,
61% of the Township's assets will require replacement within the next 10 years.
Capital requirements over the next 10 years are identified in Appendix B.
Forecasted Capital
Requirements
The development of a long-term capital forecast should include both asset
rehabilitation and replacement requirements. With the development of asset-
specific lifecycle strategies that include the timing and cost of future capital events,
the Township can produce an accurate long-term capital forecast. The following
graph identifies capital requirements over the next 80 years. This projection is used
as it ensures that every asset has gone through one full iteration of replacement.
The forecasted requirements are aggregated into 5-year bins and the trend line
represents the average annual capital requirements.
27
$302k
$434k
$1.9m
$1.2m
$1.2m
$1.3m
$1.7m
$1.0m
$1.2m
$2.3m
$1.5m
$1.5m
$956k
$1.1m
$1.7m
$1.3m
$2.3m
$1.1m
$0
$500k
$1.0m
$1.5m
$2.0m
$2.5m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
2083-
2087
2088-
2092
2093-
2097
2098-
2102
Forecasted Capital Requirements
Road Network
Bridges & Structural Culverts
Buildings & Facilities
Land Improvements
Machinery & Equipment
Vehicles
Annual Requirement
Total
28
4
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. It includes all municipally owned and maintained
roadways in addition to supporting roadside infrastructure including signs, small
culverts, and streetlights.
The Township's roads are maintained by the Public Works department who is also
responsible for winter snow clearing, ice control and snow removal operations.
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's road network inventory.
Asset Segment
Quantity
Replacement
Cost1
Annual Capital
Requirement
Gravel Roads
61 km
$2,006,0002
$175,0003
Signs
TBD
$34,000
$2,000
Small Culverts
3.6 km
$705,000
$20,000
Streetlights
5
$3,000
$130
Total
$2,749,000
$197,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
1 In 2022 dollars.
2 Gravel roads undergo perpetual operating and maintenance activities. If maintained properly, they
can theoretically have a limitless service life, therefore gravel roads are typically marked as Not
Planned for Replacement if gravel roads do not make up the majority of a municipality's roads.
3 Includes costing for re-gravelling and dust control.
$3k
$34k
$705k
$2.0m
$0
$500k
$1.0m
$1.5m
$2.0m
Streetlights
Signs
Small Culverts
Gravel Roads
29
Asset Condition & Age
The table below identifies the current average condition, the average age, and the
estimated useful life for each asset segment. The average condition (%) is a
weighted value based on replacement cost. Assessed condition was available for the
majority of the small culverts and streetlights. Gravel roads and signs are primarily
age-based.
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average Condition 4
Gravel Roads
10
23
0% (Very Poor)
Signs
20
23
0% (Very Poor)
Small Culverts
35
99
22% (Poor)
Streetlights
25
45
8% (Very Poor)
Average
91
6% (Very Poor)
In this AMP, the following rating criteria is used to determine the current condition
of road segments and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor.
4 Weighted by replacement cost.
$76k
$116
$50k
$236
$81k
$2.0m
$34k
$498k
$3k
0%
25%
50%
75%
100%
Gravel Roads
Signs
Small Culverts
Streetlights
Very Good
Good
Fair
Poor
Very Poor
30
To ensure that the Township's road network continues to provide an acceptable
level of service, the Township should monitor the average condition of all assets. If
the average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation, and
replacement activities is required to increase the overall condition of the roads.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
4.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. Currently, the Township identifies deficiencies through an
informal visual inspection, with re-gravelling and grading being prioritized on a
worst-first approach. A formal condition assessment rating scale has yet to be
developed.
Lifecycle Management
Strategy
The condition or performance of most assets will deteriorate over time. This process
is affected by a range of factors including an asset's characteristics, location,
utilization, maintenance history and environment.
Activity
Type
Description of Current Strategy
Maintenance /
Rehabilitation
The roads undergo perpetual maintenance but lack proper
rehabilitation, such as achieving an adequate crown and
maintaining the appropriate grade and thickness of gravel
The re-graveling process is conducted on an as-needed basis
without a consistent schedule or frequency. Concerns have been
raised about the insufficiency of gravel for effective grading, as
the gravel used is clay-based and not of Class A quality, resulting
in insufficient road thickness
Dust control measures are implemented once a year in the fall.
However, budget constraints prevent comprehensive coverage of
all roads, with the higher-traffic roads being prioritized
31
Activity
Type
Description of Current Strategy
Replacement
The road network inventory consists only of gravel roads, which
are perpetually maintained
4.3.1
Forecasted Capital Requirements
Based on end-of-life replacement of all assets in this category, the following graph
forecasts capital requirements for the road network.
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 35 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average annual capital requirements.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
$197k
$131k
$1.3m
$875k
$875k
$875k
$1.0m
$941k
$927k
$0
$500k
$1.0m
$1.5m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
Gravel Roads
Signs
Small Culverts
Streetlights
Annual Requirement
Total
32
Risk & Criticality
4.4.1
Risk Ratings
The following risk ratings are first shown for the overall category and then by
segment for the assets within this category based on 2022 inventory data. See
Appendix D for the criteria used to determine the risk rating of each asset.
1 - 4
Very Low
$39,000
(1%)
5 - 7
Low
$83,000
(3%)
8 - 9
Moderate
$29,000
(1%)
10 - 14
High
$536,000
(20%)
15 - 25
Very High
$2,062,000
(75%)
Asset Segment
Probability of
Failure
Consequence
of Failure
Average Risk
Rating
Gravel Roads
5 / 5
4.04 / 5
20.20 / 25
Signs
5 / 5
5 / 5
25 / 25
Small Culverts
4.13 / 5
3.08 / 5
11.32 / 25
Streetlights
4.64 / 5
1.89 / 5
9.1 / 25
Average
4.78 / 5
3.8 / 5
17.97 / 25
Overall, the average risk rating is 17.97, which is considered Very High.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of the road network are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition (Economic)
Replacement Cost (Economic)
Drainage (Environmental)
Hauling Routes (Operational)
Affected by Agricultural Society Events (Social)
LRCA Regulated Area (Health and Safety)
33
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
4.4.2
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Organizational Capacity/Cognizance
The effectiveness and safety of road network management are
influenced by organizational capacity and awareness. The Township
faces challenges due to limited staffing across various departments,
including landfill administration and road maintenance, resulting in
operational gaps. These challenges are linked to historical factors such
as high turnover rates and difficulties in filling vacancies. In smaller
communities, competitive compensation further complicates hiring and
retention efforts. Addressing these organizational gaps is crucial for
both the immediate functionality and long-term sustainability of the
road network.
Climate Change & Extreme Weather Events
Climate change significantly heightens the risk to the road network,
particularly for roads situated in flood plains, which are now subject to
more frequent and severe flooding than in the past. This escalation in
flooding can erode gravel road surfaces and weaken their foundations,
leading to increased maintenance challenges and travel disruptions.
Building climate-resilient infrastructure is crucial, ensuring that gravel
road networks are adapted to maintain safe and reliable transportation
in response to changing climate conditions.
Capital Funding Strategies
The Township's road network faces challenges due to limited
reinvestment and a dependence on grants. This approach can delay
necessary maintenance and upgrades, as it relies on unpredictable
external funding. Such delays contribute to declining road conditions
and escalating repair costs over time. The uncertainty of grant funding
complicates long-term planning, hindering efforts to proactively
enhance road resilience. As a result, the road network encounters
increasing maintenance challenges and potential issues, impacting the
Township's long-term economic and social well-being.
34
Levels of Service
The following tables identify the Township's current level of service for the road
network. These metrics include the technical and community level of service
metrics that are required as part of O. Reg. 588/17 as well as any additional
performance measures that the Township has selected for this AMP.
4.5.1
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the road network.
Service
Attribute
Qualitative
Description
Current LOS (2022)
Scope
Description, which may
include maps, of the
road network in the
Township and its level of
connectivity
Local connectivity is sufficient for daily
travel, access to local amenities, and
supporting agricultural and resource-related
activities.
Links to secondary and provincial highways
help residents and visitors reach larger
urban centers, facilitating commerce and
emergency services.
Travelers are advised to check local updates
during harsh weather periods to check for
road closures and safe driving conditions.
Quality
Description or images
that illustrate the
different levels of road
class pavement
condition
The Township's road network consists of
gravel roads only.
35
4.5.2
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the road network.
Service
Attribute
Technical Metric
Current LOS
(2022)
Scope
Lane-km of arterial roads (MMS classes 1 and 2)
per land area (km/km2)
N/A
Lane-km of collector roads (MMS classes 3 and 4)
per land area (km/km2)
N/A
Lane-km of local roads (MMS classes 5 and 6) per
land area (km/km2)
61 km : 93
km2
Quality
Average pavement condition index for paved
roads in the Township
N/A
Average surface condition for unpaved roads in
the Township (e.g. excellent, good, fair, poor)
Very Poor
% road network assets in fair or better condition
8%
% road network assets in poor or worse condition
92%
Average road network asset condition
6%
36
Recommendations
Asset Inventory
Review inventory to determine whether all municipal assets within these
asset segments have been accounted for.
The signs inventory includes either pooled assets that should be broken into
discrete segments or requires updates to quantities to allow for detailed
planning and analysis.
Condition Assessment Strategies
Consider developing a condition assessment program where applicable that
identifies assessment methodology, persons responsible, frequency of
assessment, and updates of assessment information to the asset
management database. Where resources are limited, consider prioritizing
assessments to assets based on their criticality to the organization or another
means of prioritization.
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Lifecycle Management Strategies
Consider developing a lifecycle management strategy where applicable that
identifies lifecycle activities, persons responsible, frequency of activity, costs,
and impacts on the assets included in the strategy. The development of this
strategy may also help mitigate the impacts of staff capacity constraints as
an outlined plan will save time determining what activities to perform and
prioritization.
Evaluate the efficacy of the lifecycle management strategy at regular
intervals to determine the impact cost, condition and risk.
Risk Management Strategies
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
37
Levels of Service
Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Township believes to
provide meaningful and reliable inputs into asset management planning.
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
38
5
Bridges & Structural
Culverts
Bridges and structural culverts represent a critical portion of the transportation
services provided to the community. The Department of Public Works is responsible
for the maintenance of all bridges and structural culverts located across municipal
roads with the goal of keeping structures in an adequate state of repair and
minimizing service disruptions.
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's bridges and structural
culverts inventory.
Asset
Segment
Quantity
Replacement Cost5
Annual Capital
Requirement6
Bridges
1
$915,000
$22,000
Culverts
3
$460,000
$11,000
Total
$1,375,000
$33,000
Each asset's replacement cost should be reviewed periodically to determine
whether adjustments are needed to more accurately represent realistic capital
requirements.
Asset Condition & Age
The table below identifies the current average condition, the average age, and the
estimated useful life for each asset segment. The average condition (%) is a
5 In 2022 dollars.
6 The annual capital requirement includes recommended activities from the 2021 OSIMs report.
$460k
$915k
$0
$200k
$400k
$600k
$800k
$1.0m
Structural Culverts
Bridges
39
weighted value based on replacement cost. Condition is based solely on 2021
OSIMs report.
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average
Condition7
Bridges
50 - 80
25
43% (Fair)
Culverts
50
43
50% (Good)
Average
33
55% (Good)
In this AMP, the following rating criteria is used to determine the current condition
of bridges and structural culverts and forecast future capital requirements:
Condition
Rating
Conversion to Percentage (%)
Very Good
4.5 - 5
87.5 - 100
Good
2.8 - 4.5
45 - 87.5
Fair
2.5 - 2.8
37.5 - 45
Poor
2 - 2.5
25 - 37.5
Very Poor
1 - 2
0 - 25
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Township's Bridges & Culverts continue to provide an acceptable
level of service, the Township should monitor the average condition of all assets. If
the average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation, and
replacement activities is required to increase the overall condition of the bridges
and structural culverts.
Each asset's Estimated Useful Life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
7 Weighted by replacement cost.
$339k
$329k
$131k
$576k
0%
25%
50%
75%
100%
Bridges
Structural Culverts
Very Good
Good
Fair
Poor
Very Poor
40
5.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
Condition assessments for all bridges and structural culverts within the
Township are conducted biennially, following the guidelines of the Ontario
Structure Inspection Manual (OSIM), carried out by an external consultant.
Lifecycle Management
Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
The following table outlines the Township's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance,
Rehabilitation
and
Replacement
All lifecycle activities are driven by the results of mandated
structural inspections completed according to the Ontario
Structure Inspection Manual (OSIM), however, due to
constraints in available funding, recommendations are almost
always overlooked unless the suggested work is deemed critical
Inspection
The most recent inspection report was completed in 2021 by
JML Engineering
5.3.1
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 80 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average annual capital requirements.
41
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
Risk & Criticality
5.4.1
Risk Ratings
The following risk ratings are first shown for the overall category and then by
segment for the assets within this category based on 2022 inventory data. See
Appendix D for the criteria used to determine the risk rating of each asset.
1 - 4
Very Low
-
5 - 7
Low
$339,000
(25%)
8 - 9
Moderate
-
10 - 14
High
$329,000
(24%)
15 - 25
Very High
$707,000
(51%)
Asset Segment
Probability of
Failure
Consequence
of Failure
Average Risk
Rating
Bridges
3.52 / 5
5 / 5
17.60 / 25
Structural Culverts
2.28 / 5
5 / 5
11.42 / 25
Average
3.11 / 5
5 / 5
15.53 / 25
$33k
$561k
$460k
$319k
$578k
$19k
$0
$200k
$400k
$600k
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
2083-
2087
2088-
2092
2093-
2097
2098-
2102
Bridges
Structural Culverts
Annual Requirement
Total
42
Overall, the average risk rating is 15.53, which is considered Very High.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of bridges and structural culverts are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition (Economic)
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
5.4.2
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Organizational Capacity/Cognizance
Organizational capacity and cognizance present significant challenges to
the maintenance of the Township's bridges and structural culverts.
Given the limitations in manpower and expertise, it's not possible for
the Township to handle all necessary work internally. As a result, some
tasks are outsourced and despite efforts to address all maintenance
needs within a year, they are unable to address all the arising issues.
This approach degrades the overall condition of bridges and structural
culverts, potentially leading to unaddressed wear and damage that
could escalate into more severe safety and infrastructure issues over
time.
Capital Funding Strategies
The absence of dedicated capital funding and dependence on grants is
another risk consideration for bridges and structural culverts. This
reliance on uncertain grant funding delays necessary repairs and
upgrades, risking the deterioration of critical infrastructure. Such delays
can lead to compounding repair costs and an increased risk of potential
safety hazards. Without stable funding, timely maintenance and
43
improvements are challenging, leaving the infrastructure vulnerable to
further wear and potential service interruptions.
Levels of Service
The following tables identify the Township's current level of service for bridges and
structural culverts. These metrics include the technical and community level of
service metrics that are required as part of O. Reg. 588/17 as well as any additional
performance measures that the Township has selected for this AMP.
5.5.1
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by bridges and structural culverts.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description of the traffic
that is supported by
municipal bridges (e.g.
heavy transport vehicles,
motor vehicles,
emergency vehicles,
pedestrians, cyclists)
Bridges and structural culverts are a key
component of the municipal transportation
network. None of the Township's structures
have loading or dimensional restrictions
meaning that most types of vehicles,
including heavy transport, emergency
vehicles, and cyclists can cross them without
restriction.
Quality
Description or images of
the condition of bridges
and structural culverts
and how this would affect
use of the bridges and
structural culverts
See Appendix C
44
5.5.2
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by bridges and structural culverts.
Service
Attribute
Technical Metric
Current
LOS (2022)
Scope
% of bridges in the Township with loading or
dimensional restrictions
0%
Quality
Average condition for bridges in the Township
Fair8
Average condition for structural culverts in the
Township
Good
8 Overall conditions provided in 2021 OSIMs report by JML Engineering
45
Recommendations
Data Review/Validation
Continue to review and validate inventory data, assessed condition data and
replacement costs for all bridges and structural culverts upon the completion
of OSIM inspections every 2 years.
Risk Management Strategies
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Lifecycle Management Strategies
The Township should work towards integrating projected capital rehabilitation
and renewal costs outlined in OSIMs reports into long-term planning.
Levels of Service
Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Township believe to
provide meaningful and reliable inputs into asset management planning.
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
46
6
Buildings & Facilities
The Township of Gillies owns and maintains multiple facilities that provide key
services to the community.
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's facilities inventory.
Asset Segment
Quantity
Replacement
Cost9
Annual Capital
Requirement
Administration
1
$19,000
$4,000
Fire Department
1
$102,000
$2,000
Roads Department
3
$282,000
$5,000
Total
5
$403,000
$11,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
Asset Condition & Age
The table below identifies the current average condition, the average age, and the
estimated useful life for each asset segment. The average condition (%) is a
weighted value based on replacement cost. Condition is solely age-based.
9 In 2022 dollars.
$19k
$102k
$282k
$0
$100k
$200k
$300k
Administration
Fire Department
Roads Department
47
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average Condition 10
Administration
5
6
0% (Very Poor)
Fire Department
50
30
40% (Fair)
Roads Department
40 - 70
33
22% (Poor)
Average
27
26% (Poor)
In this AMP the following rating criteria is used to determine the current condition of
Buildings & Facilities assets and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor.
To ensure that the Township's facilities continues to provide an acceptable level of
service, the Township should monitor the average condition of all assets. If the
average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation and
replacement activities is required to increase the overall condition of the facilities.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
10 Weighted by replacement cost.
$20k
$102k
$152k
$19k
$109k
0%
25%
50%
75%
100%
Administration
Fire Department
Roads Department
Very Good
Good
Fair
Poor
Very Poor
48
6.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
At present, there are no formal evaluations or inspections being carried out
for the buildings and facilities.
Lifecycle Management
Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration. The following table outlines the Township's
current lifecycle management strategy.
Activity
Type
Description of Current Strategy
Maintenance /
Rehabilitation
There is currently no maintenance or rehabilitation being
performed on the facilities
The approach to facility upkeep has been reactive rather than
proactive, focusing on repairs instead of replacements
Department managers are responsible for presenting essential
information to the council to secure budget allocations for
maintenance and upgrades. However, proposals are sometimes
postponed and may be removed from the budget. This can result
in certain maintenance tasks remaining unaddressed.
Replacement
Due to budget constraints, necessary replacements are sometimes
deferred. This can result in vulnerabilities within the Township, as
outdated or insufficiently maintained infrastructure may
compromise safety and operational efficiency.
6.3.1
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 40 years. This projection is used as it
49
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average annual capital requirements.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
Risk & Criticality
6.4.1
Risk Ratings
The following risk ratings are first shown for the overall category and then by
segment for the assets within this category based on 2022 inventory data. See
Appendix D for the criteria used to determine the risk rating of each asset.
1 - 4
Very Low
-
5 - 7
Low
$20,000
(5%)
8 - 9
Moderate
-
10 - 14
High
-
15 - 25
Very High
$383,000
(95%)
$11k
$128k
$0
$19k
$19k
$19k
$274k
$31k
$19k
$40k
$0
$100k
$200k
$300k
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
Administration
Fire Department
Roads Department
Annual Requirements
Total
50
Asset Segment
Probability of
Failure
Consequence
of Failure
Average Risk
Rating
Administration
5 / 5
5 / 5
25 / 25
Fire Department
3 / 5
5 / 5
15 / 25
Roads Department
4.17 / 5
5 / 5
20.86 / 25
Average
3.92 / 5
5 / 5
19.58 / 25
Overall, the average risk rating is 19.58, which is considered Very High.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of facilities are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition (Economic)
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
6.4.2
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Organizational Capacity/Cognizance
Organizational limitations significantly impact the functionality and
safety of Township facilities and buildings. Resource constraints
preventing necessary building assessments are a critical concern,
exposing maintenance and safety deficiencies. Additionally, housing the
administration office within a leased classroom in a local school
introduces a dependency that could disrupt Township operations if the
school closes. This reliance on external properties underscores broader
challenges within the Township, such as insufficient planning and
resource allocation, potentially jeopardizing service delivery and
community satisfaction.
51
Capital Funding Strategies
The Township's current reliance on grants and capital funding strategies
presents challenges for the upkeep and enhancement of its buildings
and facilities. For instance, the garage requires either the replacement
or repair of its doors. Additionally, while specific needs for the fire hall
have not been fully detailed, certain actions are necessary.
While minor repairs are typically managed within operational budgets,
obtaining grants for more significant projects proves difficult. The
Township often depends on specific funding sources, such as gas tax or
OCIF, and may lack the resources to explore additional grants.
Additionally, the Township's capacity to secure loans is limited by its
repayment capabilities. Although department managers proactively
include necessary projects in their budgets, many of these proposals
are often reduced, leading to deferred maintenance and improvements.
This financial limitation may contribute to the gradual decline of
facilities and services, potentially impacting community well-being.
Levels of Service
The following tables identify the Township's current level of service for buildings
and facilities. These metrics include the technical and community level of service
metrics that are required as part of O. Reg. 588/17 as well as any additional
performance measures that the Township has selected for this AMP.
6.5.1
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by buildings and facilities.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description, which may
include maps, of the
types of facilities that the
municipality operates
and maintains
Using age-based condition, facility assets are
on average in Poor (26%) condition.
Municipal operations facilities include the fire
hall, public works garage, and the Township
Office.
52
6.5.2
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by buildings and facilities.
Service
Attribute
Technical Metric
Current
LOS (2022)
Quality
Average overall condition for the category
26% (Poor)
Performance
% building assets in fair or better condition
30%
% building assets assets in poor or worse condition
70%
53
Recommendations
Asset Inventory
The Township's asset inventory contains a single record for all facilities.
Facilities consist of several separate capital components that have unique
estimated useful lives and require asset-specific lifecycle strategies. Staff
should work towards a component-based inventory of all facilities to allow for
component-based lifecycle planning.
Replacement Costs
Regularly gather and update replacement costs to ensure the accuracy of
capital projections. Replacement costs should be updated according to the
best available information on the cost to replace the asset in today's value.
Consider developing a framework for the frequency of replacement cost
updates.
Condition Assessment Strategies
Consider developing a condition assessment program that identifies
assessment methodology, persons responsible, frequency of assessment, and
updates of assessment information to the asset management database.
Where resources are limited, consider prioritizing assessments to assets
based on their criticality to the organization or another means of
prioritization.
If a formal building condition assessment is not performed, request condition
information from contractors who service critical building systems like HVAC
and fire protection systems. Record this information in Township asset
management software and use it to inform asset management decisions
including capital planning.
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly
Risk Management Strategies
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
54
Levels of Service
Begin measuring current levels of service in accordance with the metrics that
the Township has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
55
7
Vehicles
Vehicles allow staff to efficiently deliver municipal services and personnel. Municipal
vehicles include work trucks and fire vehicles.
Asset Inventory & Costs
The table below includes the quantity, replacement cost method and total
replacement cost of each asset segment in the Township's vehicles.
Asset Segment
Quantity
Replacement
Cost11
Annual Capital
Requirement
Fire Department
4
$361,000
$16,000
Roads Department
2
$30,000
$3,000
Total
6
$391,000
$19,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
Asset Condition & Age
The table below identifies the current average condition and source of available
condition data for each asset segment. The average condition (%) is a weighted
value based on replacement cost.
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average
Condition 12
Fire Department
15 - 20
14
57% (Fair)
Roads Department
10 - 15
16
0% (Very Poor)
Average
27
52% (Fair)
11 In 2022 dollars.
12 Weighted by replacement cost.
$30k
$361k
$0
$100k
$200k
$300k
Roads Department
Fire Department
56
In this AMP the following rating criteria is used to determine the current condition of
Vehicles assets and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Township's vehicles continue to provide an acceptable level of
service, the Township should monitor the average condition of all assets. If the
average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation and
replacement activities is required to increase the overall condition of the vehicles.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
7.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
An external mechanic conducts annual inspections of vehicles to verify their
proper functionality
$95k
$239k
$11k
$16k
$30k
0%
25%
50%
75%
100%
Fire
Department
Roads
Department
Very Good
Good
Fair
Poor
Very Poor
57
Lifecycle Management
Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration. The following table outlines the Township's
current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance /
Rehabilitation
Basic maintenance is routinely performed on vehicle assets,
ensuring their operational readiness
Rebuilds are evaluated by comparing rehabilitation costs with
replacement expenses and considering the potential for extended
use
Replacement
Assets are maintained regularly until they reach end of life, at
which point they are replaced
7.3.1
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 20 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average annual capital requirements.
$19k
$30k
$27k
$0
$269k
$122k
$0
$100k
$200k
$300k
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
Fire Department
Roads Department
Annual Requirements
Total
58
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
Risk & Criticality
7.4.1
Risk Ratings
The following risk ratings are first shown for the overall category and then by
segment for the assets within this category based on 2022 inventory data. See
Appendix D for the criteria used to determine the risk rating of each asset.
1 - 4
Very Low
-
5 - 7
Low
$95,000
(24%)
8 - 9
Moderate
-
10 - 14
High
-
15 - 25
Very High
$296,000
(76%)
Asset Segment
Probability of
Failure
Consequence
of Failure
Average Risk
Rating
Fire Department
2.56 / 5
5 / 5
12.81 / 25
Roads Department
5 / 5
5 / 5
25 / 25
Average
2.75 / 5
5 / 5
13.73 / 25
Overall, the average risk rating is 13.73, which is considered High.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of vehicles are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition (Economic)
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
59
7.4.2
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Climate Change and Extreme Weather Events
The Township faces risks due to climate change and extreme weather,
including freezing rain, which increase vehicle maintenance and repair
needs. Harsh conditions accelerate tire wear and strain engines during
cold starts, highlighting the necessity for a durable patrol truck.
Securing such vehicles is crucial to maintaining reliable services amid
growing climate unpredictability. Insufficient investment in appropriate
vehicles could compromise the Township's operational capacity,
impacting public safety and service delivery. Therefore, ensuring
vehicles can withstand adverse weather is essential for the Township's
resilience.
Aging Vehicles and Capital Funding Strategies
Townships face significant challenges due to post-pandemic inflation
and a lack of capital funding strategies, impacting their vehicle fleets.
Rising fuel and vehicle costs, along with prolonged supply chain
disruptions, highlight the urgent need for adaptable financial planning.
Vehicle shortages and increased expenses for essential service vehicles
emphasize the importance of ensuring their availability and efficiency.
Proactively addressing these financial and logistical challenges is crucial
for maintaining operational capabilities and service delivery standards.
Strategic financial planning and investment in essential assets is vital
for the Township to adapt to changing economic conditions and ensure
sustained community well-being and operational efficiency.
Levels of Service
The following tables identify the Township's current level of service for vehicle
assets. These metrics include the technical and community level of service metrics
that are required as part of O. Reg. 588/17 as well as any additional performance
measures that the Township has selected for this AMP.
60
7.5.1
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by vehicle assets.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description or images of the
types of vehicles (e.g. light,
medium and heavy-duty) that
the municipality operates and
the services that they help to
provide to the community.
Using primarily age-based condition
data, vehicle assets are on average in
Fair condition (52%). The Fleet
includes assets for the Township's fire
and public works departments.
7.5.2
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by vehicle assets.
Service
Attribute
Technical Metric
Current
LOS (2022)
Quality
Average overall condition for the category
52% (Fair)
Performance
% vehicles assets in fair or better condition
86%
% vehicles assets assets in poor or worse condition
14%
61
Recommendations
Replacement Costs
Gather accurate replacement costs and update on a regular basis to ensure
the accuracy of capital projections.
Condition Assessment Strategies
Identify condition assessment strategies for high value and high-risk
equipment.
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure and/or as
data available for risk calculations advances.
Lifecycle Management Strategies
Incorporate investment recommendations from the mechanic into the asset
management system as a lifecycle event against the corresponding asset.
As best as possible, consider the rapidity of technological advancements
during capital planning.
Levels of Service
Begin measuring current levels of service in accordance with the metrics that
the Township has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
62
8
Machinery & Equipment
In order to maintain the high quality of public infrastructure and support the
delivery of core services, Township staff own and employ various types of
machinery and equipment. This includes:
Vehicle accessories
Heavy equipment
Small equipment
Municipal office IT
Keeping machinery and equipment in an adequate state of repair is important to
maintain a high level of service.
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's machinery and equipment
inventory.
Asset Segment
Quantity
Replacement
Cost13
Annual Capital
Requirement
Heavy Equipment
3
$545,000
$24,000
Miscellaneous
6
$62,000
$3,000
Vehicle Accessories
2
$259,000
$10,000
Municipal Office IT
1
$18,000
$4,000
Total
$884,000
$40,000
13 In 2022 dollars.
$18k
$62k
$259k
$545k
$0
$100k
$200k
$300k
$400k
$500k
$600k
Municipal Office IT
Miscellaneous
Vehicle Accessories
Heavy Equipment
63
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
Asset Condition & Age
The table below identifies the current average condition and source of available
condition data for each asset segment. The average condition (%) is a weighted
value based on replacement cost. Condition is solely age-based.
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average
Condition 14
Heavy Equipment
19 - 30
17
37% (Poor)
Miscellaneous
20 - 30
8
68% (Good)
Vehicle Accessories
25 - 30
16
53% (Fair)
Municipal Office IT
5
<1
98% (Very Good)
Average
11
45% (Fair)
In this AMP the following rating criteria is used to determine the current condition of
machinery and equipment assets and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor.
14 Weighted by replacement cost.
64
To ensure that the Township's machinery and equipment continues to provide an
acceptable level of service, the Township should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the machinery and equipment.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
8.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
Heavy equipment is subject to annual inspections to evaluate its condition
and ensure it is ready for operation
Lifecycle Management
Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
The following table outlines the Township's current lifecycle management strategy.
$167k
$32k
$18k
$198k
$30k
$233k
$61k
$145k
0%
25%
50%
75%
100%
Heavy Equipment
Miscellaneous
Vehicle Accessories
Municipal Office IT
Very Good
Good
Fair
Poor
Very Poor
65
Activity
Type
Description of Current Strategy
Maintenance/
Rehabilitation
Maintenance for machinery and equipment follows the
manufacturer's guidelines to ensure equipment efficiency
Equipment is used until end of life, with regular maintenance
throughout
Rebuilds are considered when cost-effective, comparing rehab to
replacement and potential lifespan extension
Replacement
Replacement recommendations come from annual inspections,
focusing on equipment condition. Machinery and equipment assets
are generally used until they reach the end of their lifecycle, after
which they are replaced
8.3.1
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 25 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average annual capital requirements.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
$40k
$145k
$18k
$312k
$26k
$258k
$430k
$0
$100k
$200k
$300k
$400k
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
Heavy Equipment
Miscellaneous
Vehicle Accessories
Municipal Office IT
Annual Requirements
Total
66
Risk & Criticality
8.4.1
Risk Ratings
The following risk ratings are first shown for the overall category and then by
segment for the assets within this category based on 2022 inventory data. See
Appendix D for the criteria used to determine the risk rating of each asset.
1 - 4
Very Low
$1,000
(<1%)
5 - 7
Low
$217,000
(25%)
8 - 9
Moderate
-
10 - 14
High
$205,000
(23%)
15 - 25
Very High
$461,000
(52%)
Asset Segment
Probability of
Failure
Consequence
of Failure
Average Risk
Rating
Heavy Equipment
3.34 / 5
5 / 5
16.72 / 25
Miscellaneous
1.96 / 5
4.82 / 5
9.39 / 25
Vehicle Accessories
2.47 / 5
5 / 5
12.37 / 25
Municipal Office IT
1 / 5
5 / 5
5 / 25
Average
2.94 / 5
4.99 / 5
14.69 / 25
Overall, the average risk rating is 14.69, which is considered High.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of machinery and equipment are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition (Economic)
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
67
8.4.2
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Climate Change and Extreme Weather Events
Climate change and unpredictable weather are increasingly straining
Township equipment, especially during winter. Harsh conditions, such
as unexpected rain followed by freezing temperatures, lead to
accelerated wear and necessitate frequent repairs for machinery like
graders and plows. For instance, the Township's reliance on a single
operational snow plow highlights the critical need for robust and
adaptable machinery.
Investing in durable equipment is essential to maintaining effective
services despite changing weather patterns. Failure to do so could
result in operational disruptions, higher maintenance costs, and
compromised service delivery. Prioritizing the acquisition and
maintenance of reliable machinery is vital for ensuring public safety and
the continued functionality of Township services.
Aging Equipment and Capital Funding Strategies
The Township is struggling with post-pandemic inflation and insufficient
capital funding, severely impacting its ability to maintain and upgrade
machinery and equipment. Rising costs and supply chain delays,
exemplified by the fire department's unused grant due to equipment
shortages, highlight the need for more flexible financial planning.
Adapting financial strategies is crucial to navigating the evolving
economic landscape and ensuring operational capabilities. Without this
adaptation, the Township risks diminished service delivery, higher
operational costs, and reduced readiness in critical areas.
Levels of Service
The following tables identify the Township's current level of service for machinery
and equipment assets. These metrics include the technical and community level of
service metrics that are required as part of O. Reg. 588/17 as well as any additional
performance measures that the Township has selected for this AMP.
68
8.5.1
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by machinery and equipment assets.
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description or images of
the types of equipment
that the municipality
operates and the
services that they help to
provide to the
community.
Using age-based condition data, machinery
and equipment assets are on average in
Fair condition (45%). Machinery and
equipment assets are diverse and service
the needs of the fire and public works
departments.
8.5.2
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by machinery and equipment assets.
Service
Attribute
Technical Metric
Current
LOS (2022)
Quality
Average overall condition for the category
45% (Fair)
Performance
% building assets in fair or better condition
50%
% building assets in poor or worse condition
50%
69
Recommendations
Replacement Costs
All replacement costs used in this AMP were based on the inflation of
historical costs. These costs should be evaluated to determine their accuracy
and reliability. Replacement costs should be updated according to the best
available information on the cost to replace the asset in today's value.
Condition Assessment Strategies
Identify condition assessment strategies for high value and high-risk
equipment.
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure and/or as
data available for risk calculations advances.
Levels of Service
Begin measuring current levels of service in accordance with the metrics that
the Township has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
70
9
Land Improvements
The Township of Gillies owns a small number of assets that are considered land
improvements. This category includes:
Helipad
Parks
Waste Disposal
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's land improvements
inventory.
Asset Segment
Quantity
Replacement
Cost15
Annual Capital
Requirement
Helipad
1
$31,000
$2,000
Parks
1
$8,000
$206
Waste Disposal
1
$0
$0
Total
$40,000
$2,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
Asset Condition & Age
The table below identifies the current average condition, the average age, and the
estimated useful life for each asset segment. The average condition (%) is a
weighted value based on replacement cost. Condition is solely age-based.
15 In 2022 dollars.
$2
$8k
$31k
$0
$10k
$20k
$30k
Waste Disposal
Parks
Helipad
71
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average
Condition 16
Helipad
20
14
30% (Poor)
Parks
40
13
68% (Good)
Waste Disposal
90
35
61% (Good)
Average
21
38% (Poor)
In this AMP the following rating criteria is used to determine the current condition of
Land Improvements assets and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor.
To ensure that the Township's land improvements continue to provide an
acceptable level of service, the Township should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the land improvements.
16 Weighted by replacement cost.
$8k
$2
$31k
0%
25%
50%
75%
100%
Helipad
Parks
Waste Disposal
Very Good
Good
Fair
Poor
Very Poor
72
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
9.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
At present, there are no formal condition assessment processes established
nor any evaluations routinely conducted.
Lifecycle Management
Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
The following table outlines the Township's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance
&
Rehabilitation
Activities are limited to basic upkeep such as mowing and
maintenance, especially in marshland areas where the natural
terrain makes it challenging to establish any outdoor facilities
Replacement
Assets are prioritized for replacement based on the asset's age,
current condition, and available financial resources
9.3.1
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 30 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average annual capital requirements.
73
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
Risk & Criticality
9.4.1
Risk Ratings
The following risk ratings are first shown for the overall category and then by
segment for the assets within this category based on 2022 inventory data. See
Appendix D for the criteria used to determine the risk rating of each asset.
1 - 4
Very Low
-
5 - 7
Low
-
8 - 9
Moderate
$8,000
(21%)
10 - 14
High
-
15 - 25
Very High
$31,000
(79%)
$2k
$31k
$40k
$0
$10k
$20k
$30k
$40k
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
Helipad
Parks
Waste Disposal
Annual Requirements
Total
74
Asset Segment
Probability of
Failure
Consequence
of Failure
Average Risk
Rating
Helipad
4 / 5
5 / 5
20 / 25
Parks
2 / 5
4 / 5
8 / 25
Waste Disposal
2 / 5
1 / 5
2 / 25
Average
3.58 / 5
4.79 / 5
17.5 / 25
Overall, the average risk rating is 17.5, which is considered Very High.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that municipal staff utilize to define and prioritize the
criticality of land improvements are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition (Economic)
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
9.4.2
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Capital Funding Strategies
The Township's reliance on grants and limited capital funding strategies
pose challenges to maintaining and improving its land improvements
assets, including cemeteries and landfills. This dependency can
constrain the Township's ability to plan and carry out necessary
upgrades or expansions. Traditionally, landfill projects have been
supported by gas tax revenues, reflecting current financial practices.
Additionally, time constraints often limit the Township's capacity to
apply for available grants, which further complicates financial
management. These factors may hinder the Township's efforts to keep
land improvement assets in optimal condition, potentially affecting
75
service quality and infrastructure health. Developing a more flexible
and sustainable capital funding approach would enhance the Township's
ability to effectively manage and enhance these vital assets.
Community Expectations
Community expectations present a significant risk to the Township's
land improvements, especially concerning landfill and infrastructure
development. As standards for landfills rise, even well-maintained
facilities face increased scrutiny, which can intensify pressure on the
Township to meet elevated requirements. Similarly, the issue of the
cemetery nearing full capacity has sparked discussions about the need
for expansion, further complicating the Township's land improvement
efforts.
These challenges underscore the delicate balance the Township must
strike between addressing community demands and implementing
practical land improvement plans. Meeting heightened expectations
requires careful resource allocation and strategic planning to ensure
both project sustainability and community satisfaction. The Township
must navigate these expectations while managing limited resources and
aligning improvements with realistic goals. Effective planning and
resource management are essential to fulfilling community needs while
maintaining the integrity and feasibility of land improvement projects.
Levels of Service
The following tables identify the Township's current level of service for land
improvements assets. These metrics include the technical and community level of
service metrics that are required as part of O. Reg. 588/17 as well as any additional
performance measures that the Township has selected for this AMP.
9.5.1
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by land improvements assets.
76
Service
Attribute
Qualitative Description
Current LOS (2022)
Scope
Description, which may
include maps, of the land
improvements assets
that the municipality
operates and maintains
Using age-based condition, land
improvement assets are on average in
Poor (38%) condition. Land improvement
assets include the helipad, parks, the
landfill, and the cemetery. Wherever
possible, assets are designed to serve a
wide range of users.
9.5.2
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by land improvements assets.
Service
Attribute
Technical Metric
Current
LOS (2022)
Quality
Average overall condition for the category
38% (Poor)
Performance
% land improvements assets in fair or better
condition
21%
% land improvements assets assets in poor or
worse condition
79%
77
Recommendations
Replacement Costs
These costs should continually be evaluated to determine their accuracy and
reliability. Replacement costs should be updated according to the best
available information on the cost to replace the asset in today's value.
Consider developing a framework for the frequency of replacement cost
updates.
Condition Assessment Strategies
Identify condition assessment strategies for high value and high-risk assets.
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
Begin measuring current levels of service in accordance with the metrics that
the Township has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
78
10 Impacts of Growth
Key Insights
Understanding the key drivers of growth and demand
will allow the Township to more effectively plan for new
infrastructure, and the upgrade or disposal of existing
infrastructure
Moderate fluctuation in population and employment is
expected
The costs of growth should be considered in long-term
funding strategies that are designed to maintain the
current level of service
79
Description of Growth
Assumptions
The demand for infrastructure and services will change over time based on a
combination of internal and external factors. Understanding the key drivers of
growth and demand will allow the Township to more effectively plan for new
infrastructure, and the upgrade or disposal of existing infrastructure. Increases or
decreases in demand can affect what assets are needed and what level of service
meets the needs of the community.
10.1.1
Gillies Official Plan (November 2009)
The Township of Gillies adopted an Official Plan in 2009 to provide direction and
serve as the cornerstone of planning strategies, offering guidance for the
development of detailed policies and programs. These goals are shaped by both the
current and anticipated needs and values of the Township's Council and its
residents.
The objectives for the Township of Gillies over the next 20 years include preserving
its rural quality of life while managing physical, social, economic, and
environmental changes. These goals aim to ensure residents' health, safety, and
welfare, rational use of resources, and protection of natural features. By permitting
local control over land use planning and qualifying for government programs, the
Township seeks to expand and diversify its economy. The policies also emphasize
environmentally compatible development, sustainable growth, and inform residents
about land development policies.
In the Township, land division is strictly regulated, allowing only consents that
adhere to specific policies, without permitting new subdivisions, to maintain its rural
essence and avoid unwanted development levels. Particularly in Hymers, growth is
limited due to flood risks along the Whitefish River. Consents for land division are
contingent on meeting several criteria, including adequate private water and
sewage systems, water flow and potability tests, suitable soil and drainage for
building and sewage disposal, access to year-round maintained public roads, no
traffic hazards or land use conflicts, adherence to livestock proximity guidelines,
and specific lot size and frontage requirements.
The following tables outlines the recorded population and private dwellings for
Gillies, based on 2021 Census data.
80
Historical Figures
1996
2001
2006
2011
2016
2021
Population
497
522
544
473
474
441
Population Change
N/A
5.0%
4.2%
-13.1
0.2%
-7.0%
Private Dwellings
N/A
212
219
209
201
208
According to the Official Plan, over the past decade until 2001, the Township of
Gillies has seen a population growth of 5%, aligning closely with the 4.5% growth
rate projected in the previous Official Plan. The plan suggests that if this growth
rate continues, it's estimated that by 2026, the population will reach about 590.
Census data from 2021 indicates a decline in the population, suggesting that the
projections made in the Official Plan may not be met.
Regional growth
In 2021 the Come North Conference Report was produced by FedNor and
Government of Canada. The document describes short, medium, and long-term
objectives for all communities in Northern Ontario as it relates to population
growth.
According to the report all 11 Census Districts in Northern Ontario (Nipissing, Parry
Sound, Manitoulin, Sudbury, Greater Sudbury, Timiskaming, Cochrane, Algoma,
Thunder Bay, Rainy River, Kenora) are currently experiencing the following trends:
population decline, population aging, or labour shortages. The report highlights a
risk of these communities becoming economically unsustainable unless population
retention and attraction numbers improve. The risk is the result of the dependency
ratio increasing. The dependency ratio is the ratio of people unable to support
themselves without assistance; people between the ages of 0 and 14 and 64 and
older.
The goal is to achieve a dependency ratio of 0.5. In 1996, every Census District
was at or near the goal but by 2016, none were below and more than half had a
ratio in excess of 0.6. The following graph displays the dependency ratio for each
Census District in 1996 and 2016 along with a projected ratio for the year 2036.
81
The Township of Gillies is found in the Thunder Bay District, which is expected to
reach a dependency ratio of 0.78.
The population trends overall in the Northwestern Ontario are in decline. The
following graph from the 2019 Thunder Bay District report by the Northern Policy
Institute, displays the population trends from 1991 to 2016.
82
The following table, found in the same report, shows population projections in
Northwestern Ontario for the years 2021 to 2041.
Year
Ages 0-19
Ages 20-64
Ages 65+
Total
2021
28,841
86,082
33,362
148,285
2026
28,616
80,390
38,811
147,817
2031
28,045
76,449
42,562
147,056
2036
27,298
74,639
43,958
145,895
2041
26,535
74,021
43,888
144,444
The most recent census data from 2021, shows a slight increase in the population,
reaching a total of 146,862, but is below the projected population from the study. A
significant portion of population decrease is within the 20-to-64-year age group,
while there is an increase in population for the age of 65 years and over; thus
further increasing the dependency ratio.
Impact of Growth on
Lifecycle Activities
By July 1, 2025, the Township's asset management plan must include a discussion
of how the assumptions regarding future changes in population and economic
activity informed the preparation of the lifecycle management and financial
strategy.
As the Township's population is expected to remain the same with potential
moderate increases and declines in the coming years, demand will evolve, and it is
likely that funding will need to be reprioritized. As growth-related assets are
constructed, retired, or acquired, they should be integrated into the AMP.
Furthermore, the Township will need to review the lifecycle costs of growth-related
infrastructure. These costs should be considered in long-term funding strategies
that are designed to, at a minimum, to maintain the current level of service.
83
11 Appendices
Key Insights
Appendix A includes a one-page report card with an
overview of key data from each asset category
Appendix B identifies projected 10-year capital
requirements for each asset category
Appendix C includes a location map for bridges and
structural culverts
Appendix D identifies the criteria used to calculate risk
for each asset category
Appendix E provides additional guidance on the
development of a condition assessment program
84
Appendix A: Infrastructure Report
Card
All values are in 2022 dollars. Condition is weighted by replacement cost.
Asset
Category
Replacement
Cost
(millions)
Asset
Condition
Financial Capacity
Road Network
$2.75
6% (Very
Poor)
Annual Requirement:
$197,000
Bridges &
Structural
Culverts
$1.38
55% (Good)
Annual Requirement:
$33,000
Buildings &
Facilities
$0.40
26% (Poor)
Annual Requirement:
$11,000
Vehicles
$0.39
52% (Fair)
Annual Requirement:
$19,000
Machinery &
Equipment
$0.88
45% (Fair)
Annual Requirement:
$40,000
Land
Improvements
$0.04
38% (Poor)
Annual Requirement:
$2,000
Overall
$5.84
26% (Poor)
Annual Requirement:
$302,000
85
Appendix B: 10-Year Capital Requirements
The following tables identify the capital cost requirements for each of the next 10 years in order to meet projected
capital requirements and maintain the current level of service. All values are in 2022 dollars.
Road Network
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Gravel Roads
$0
$175k
$175k
$175k
$175k
$175k
$175k
$175k
$175k
$175k
$175k
Signs
$34k
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Small Culverts
$94k
$404k
$0
$0
$0
$0
$0
$0
$0
$0
$0
Streetlights
$3k
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$131k
$579k
$175k
$175k
$175k
$175k
$175k
$175k
$175k
$175k
$175k
Bridges & Structural Culverts
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Bridges
$0
$0
$0
$263k
$213k
$0
$0
$0
$0
$0
$0
Structural Culverts
$0
$0
$47k
$39k
$0
$0
$0
$0
$0
$0
$0
$0
$0
$47k
$302k
$213k
$0
$0
$0
$0
$0
$0
86
Buildings & Facilities
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Administration
$19k
$0
$0
$0
$0
$0
$19k
$0
$0
$0
$0
Fire Department
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Roads
Department
$109k
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$128k
$0
$0
$0
$0
$0
$19k
$0
$0
$0
$0
Vehicles
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Fire Department
$0
$16k
$0
$0
$0
$11k
$0
$0
$0
$0
$0
Roads Department
$30k
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$30k
$16k
$0
$0
$0
$11k
$0
$0
$0
$0
$0
Machinery & Equipment
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Heavy Equipment
$145k
$0
$0
$0
$0
$0
$233k
$0
$0
$0
$0
Miscellaneous
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Vehicle Accessories
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$61k
Municipal Office IT
$0
$0
$0
$0
$0
$18k
$0
$0
$0
$0
$18k
$145k
$0
$0
$0
$0
$18k
$233k
$0
$0
$0
$79k
87
Land Improvements
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Helipad
$0
$0
$0
$0
$0
$0
$0
$31k
$0
$0
$0
Parks
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Waste Disposal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$31k
$0
$0
$0
88
Appendix C: Level of Service Maps
Bridge & Structural Culverts Map
89
Appendix D: Risk Rating Criteria
Probability of Failure
Asset Category
Risk Criteria
Criteria
Weighting
Value/Range
Probability
of Failure
Score
All Asset
Categories
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
Gravel Roads
Economic
(20%)
Replacement Cost
(100%)
≤$1,000
1
≤$2,500
2
≤$5,000
3
≤$10,000
4
$10,000
5
Environmental
(20%)
Flood Plain (100%)
No
1
Yes
5
Operational
(10%)
Hauling Routes
(100%)
No
2
Yes
4
Social (20%)
Affected by Large-
Scale Events
(100%)
No
1
Yes
5
Health and
Safety (30%)
Emergency Services
Route (100%)
No
2
Yes
5
All Other Assets
Economic
(100%)
Replacement Cost
(100%)
≤$1,000
1
≤$2,500
2
≤$5,000
3
≤$10,000
4
$10,000
5
90
Appendix E: Condition Assessment
Guidelines
The foundation of good asset management practice is accurate and reliable data on
the current condition of infrastructure. Assessing the condition of an asset at a
single point in time allows staff to have a better understanding of the probability of
asset failure due to deteriorating condition.
Condition data is vital to the development of data-driven asset management
strategies. Without accurate and reliable asset data, there may be little confidence
in asset management decision-making which can lead to premature asset failure,
service disruption and suboptimal investment strategies. To prevent these
outcomes, the Township's condition assessment strategy should outline several key
considerations, including:
The role of asset condition data in decision-making
Guidelines for the collection of asset condition data
A schedule for how regularly asset condition data should be collected
Role of Asset Condition Data
The goal of collecting asset condition data is to ensure that data is available to
inform maintenance and renewal programs required to meet the desired level of
service. Accurate and reliable condition data allows municipal staff to determine the
remaining service life of assets, and identify the most cost-effective approach to
deterioration, whether it involves extending the life of the asset through remedial
efforts or determining that replacement is required to avoid asset failure.
In addition to the optimization of lifecycle management strategies, asset condition
data also impacts the Township's risk management and financial strategies.
Assessed condition is a key variable in the determination of an asset's probability of
failure. With a strong understanding of the probability of failure across the entire
asset portfolio, the Township can develop strategies to mitigate both the probability
and consequences of asset failure and service disruption. Furthermore, with
condition-based determinations of future capital expenditures, the Township can
develop long-term financial strategies with higher accuracy and reliability.
Guidelines for Condition Assessment
Whether completed by external consultants or internal staff, condition assessments
should be completed in a structured and repeatable fashion, according to consistent
and objective assessment criteria. Without proper guidelines for the completion of
91
condition assessments there can be little confidence in the validity of condition data
and asset management strategies based on this data.
Condition assessments must include a quantitative or qualitative assessment of the
current condition of the asset, collected according to specified condition rating
criteria, in a format that can be used for asset management decision-making. As a
result, it is important that staff adequately define the condition rating criteria that
should be used and the assets that require a discrete condition rating. When
engaging with external consultants to complete condition assessments, it is critical
that these details are communicated as part of the contractual terms of the project.
There are many options available to the Township to complete condition
assessments. In some cases, external consultants may need to be engaged to
complete detailed technical assessments of infrastructure. In other cases, internal
staff may have sufficient expertise or training to complete condition assessments.
Developing a Condition Assessment Schedule
Condition assessments and general data collection can be both time-consuming and
resource-intensive. It is not necessarily an effective strategy to collect assessed
condition data across the entire asset inventory. Instead, the Township should
prioritize the collection of assessed condition data based on the anticipated value of
this data in decision-making. The International Infrastructure Management Manual
(IIMM) identifies four key criteria to consider when making this determination:
1. Relevance: every data item must have a direct influence on the output that
is required
2. Appropriateness: the volume of data and the frequency of updating should
align with the stage in the assets life and the service being provided
3. Reliability: the data should be sufficiently accurate, have sufficient spatial
coverage and be appropriately complete and current
4. Affordability: the data should be affordable to collect and maintain