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Asset
Management
Plan 2024
Municipality of Markstay-Warren
September 2025
Municipality of Markstay-Warren
Asset Management Plan 2024
i
This Asset Management Plan was prepared by:
Empowering your organization through advanced
asset management, budgeting & GIS solutions
Municipality of Markstay-Warren
Asset Management Plan 2024
ii
Key Statistics
$128m
2024 Replacement Cost of Asset Portfolio
$107k
Replacement Cost of Infrastructure Per
Household
69%
Percentage of Assets in Fair or Better
Condition
38%
Percentage of Assets with Assessed
Condition Data
$3M
Annual Capital Infrastructure Deficit
15-20
Years
Recommended Timeframe for Eliminating
Annual Infrastructure Deficit
2.77%
Target Reinvestment Rate
0.39%
Actual Reinvestment Rate
Municipality of Markstay-Warren
Asset Management Plan 2024
iii
Table of Contents
1.
Executive Summary ...................................................................... 1
2.
Introduction & Context .................................................................. 4
3.
Portfolio Overview - State of the Infrastructure ............................. 21
Core Assets .................................................................................. 2
4.
Road Network .............................................................................. 3
5.
Bridges & Culverts ...................................................................... 15
6.
Water Network ........................................................................... 23
7.
Sanitary Network ....................................................................... 31
8.
Stormwater Network .................................................................. 41
Non-Core Assets ......................................................................... 50
9.
Buildings ................................................................................... 51
10. Land Improvements ................................................................... 61
11. Vehicles .................................................................................... 70
12. Machinery & Equipment .............................................................. 79
Strategies ................................................................................... 88
13. Growth ..................................................................................... 89
14. Financial Strategy ...................................................................... 92
15. Recommendations & Key Considerations ..................................... 104
Appendices ............................................................................... 107
Appendix A - Infrastructure Report Card ........................................... 108
Appendix B - 10-Year Capital Requirements ...................................... 109
Appendix C - Level of Service Maps & Photos .................................... 115
Appendix D - Risk Rating Criteria ..................................................... 125
Municipality of Markstay-Warren
Asset Management Plan 2024
1
1. Executive Summary
Municipal infrastructure delivers critical services that are foundational to the economic,
social, and environmental health and growth of a community. The goal of asset
management is to enable infrastructure to deliver an adequate level of service in the
most cost-effective manner. This involves the ongoing review and update of
infrastructure information and data alongside the development and implementation of
asset management strategies and long-term financial planning.
1.1 Scope
This Asset Management Plan (AMP) identifies the current practices and strategies that
are in place to manage public infrastructure and makes recommendations where they
can be further refined. Through the implementation of sound asset management
strategies, the Municipality can ensure that public infrastructure is managed to support
the sustainable delivery of municipal services.
This AMP includes the following asset categories:
Figure 1 Core and Non-Core Asset Categories
1.2 O. Reg. 588/17 Compliance
With the development of this AMP the Municipality has achieved compliance with July 1,
2024, requirements under O. Reg. 588/17. This includes requirements for levels of
- Road Network
- Bridges & Culverts
- Water Network
- Sanitary Sewer Network
- Stormwater Network
Core Assets
- Buildings
- Land Improvements
- Vehicles
- Machinery & Equipment
Non-Core Assets
Municipality of Markstay-Warren
Asset Management Plan 2024
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service and inventory reporting for all asset categories. More details on compliance can
be found in section 2.5.1 O. Reg. 588/17 Compliance Review.
1.3 Findings
The overall replacement cost of the asset categories included in this AMP totals
$128,152,000. Over two-thirds (69%) of assets analyzed in this AMP are in fair or better
condition and assessed condition data was available for 38% of assets. For the
remaining 62% of assets, assessed condition data was unavailable, and asset age
relative to estimate useful life was used to approximate condition - a data gap that
persists in most municipalities. Generally, age misstates the true condition of assets,
making assessments essential to accurate asset management planning, and a recurring
recommendation in this AMP.
The development of a long-term, sustainable financial plan requires an analysis of whole
lifecycle costs. This AMP uses a combination of proactive lifecycle strategies (paved
roads and bridges and culverts) and replacement only strategies (all other assets) to
determine the lowest cost option to maintain the current level of service.
To meet capital replacement and rehabilitation needs for existing infrastructure, prevent
infrastructure backlogs, and achieve long-term sustainability, the Municipality's average
annual capital requirement totals $3,667,000. Based on a historical analysis of
sustainable capital funding sources, the Municipality is committing approximately
$503,000 towards capital projects or reserves per year. As a result, there is currently an
annual funding gap of $3,040,000.
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 Municipality. Strategic asset
management planning is an ongoing and dynamic process that requires continuous
improvement and dedicated resources.
Municipality of Markstay-Warren
Asset Management Plan 2024
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1.4 Recommendations
A financial strategy was developed to address the annual capital funding gap. The
following graphics show the annual tax/rate change required to eliminate the
Municipality's infrastructure deficit based on a 15-year plan for tax-funded assets and
sewer assets and a 20-year plan for the rate-funded water network assets:
Figure 2 Proposed Tax/Rate Changes1
1 Due to financial arrangements specific to Markstay and Warren water systems respectively, the financial strategy is separated by
system location. Analysis of the water network (reported in Section 6) including condition, replacement costs, lifecycle strategy and
risks, represents the entire water network.
Tax-Funded
Assets
Average
Annual Tax
Change
2.5%
Rate-Funded
Water
Warren
Average
Annual Rate
Change
2.7%
Rate-Funded
Water
Markstay
Average
Annual Rate
Change
3.5%
Rate-Funded
Sanitary
Average
Annual Rate
Change
2.2%
Municipality of Markstay-Warren
Asset Management Plan 2024
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2. Introduction & Context
2.1 Community Profile
The Municipality of Markstay-Warren is a lower-tier municipality located in the Sudbury
District of Ontario, Canada. It encompasses the communities of Markstay and Warren,
along with surrounding rural areas, and is situated along Highway 17, providing
convenient access to the nearby urban centers of Sudbury and North Bay.
Markstay-Warren is celebrated for its tranquil rural charm and natural beauty. The area
is characterized by lush forests, agricultural lands, and the Veuve River, offering
residents and visitors a variety of outdoor recreational opportunities. The municipality
contains local schools, parks, and community facilities, all of which support quality of life
for families and individuals alike.
The community provides a harmonious blend of rural living and accessibility to urban
amenities. Its strategic location near major transportation routes supports economic
development opportunities in sectors such as agriculture, small business, tourism, and
recreation. The natural surroundings and peaceful environment make it an attractive
place to live, work, and visit.
Markstay-Warren has experienced relatively low population growth over recent years.
Based on the 2021 Census, the municipality had a population of 2,708, reflecting a 2%
increase from 2016. The population is diverse in age distribution: approximately 17%
are seniors aged 65 or older, while working-age adults (15-64 years) make up about
67% of residents. Children aged 0-14 account for roughly 16%.
Table1 Municipality of Markstay-Warren Community Profile
The municipality's vision emphasizes a friendly, family focused community, with strong
access to nature, and a welcoming attitude towards business. With its welcoming spirit,
affordable living conditions, and proximity to major cities, Markstay-Warren continues to
be a desirable location for both residents and businesses seeking a balance between
progress and tranquility.
Census Characteristic
Municipality of
Markstay-Warren
Ontario
Population 2021
2,708
14,223,942
Population Change 2016-2021
2.0%
5.8%
Total Private Dwellings
1,199
5,929,250
Population Density
5.4/km2
15.9/km2
Land Area
505.92 km2
892,411.76 km2
Municipality of Markstay-Warren
Asset Management Plan 2024
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2.2 Climate Change
Climate change can cause severe impacts on human and natural systems around the
world. The effects of climate change include increasing temperatures, higher levels of
precipitation, droughts, and extreme weather events. In 2019, Canada's Changing
Climate Report (CCCR 2019) was released by Environment and Climate Change Canada
(ECCC).
The report revealed that between 1948 and 2016, the average temperature increase
across Canada was 1.7°C. The temperature increase in Canada has doubled that of the
global average. If emissions are not significantly reduced, the temperature could
increase by 6.3°C in Canada by the year 2100 compared to 2005 levels. Observed
precipitation changes in Canada include an increase of approximately 20% between
1948 and 2012. By the late 21st century, the projected increase could reach an
additional 24%. During the summer months, some regions in Southern Canada are
expected to experience periods of drought at a higher rate. Extreme weather events and
climate conditions are more common across Canada. Recorded events include droughts,
flooding, cold extremes, warm extremes, wildfires, and record minimum arctic sea ice
extent.
The changing climate poses a significant risk to the Canadian economy, society,
environment, and infrastructure. The impacts on infrastructure are often a result of
climate-related extremes such as droughts, floods, higher frequency of freeze-thaw
cycles, extended periods of high temperatures, high winds, and wildfires. Physical
infrastructure is vulnerable to damage and increased wear when exposed to these
extreme events and climate variabilities. Canadian Municipalities are faced with the
responsibility to protect their local economy, citizens, environment, and physical assets.
2.2.1
Municipality of Markstay-Warren Climate Profile
The Municipality of Markstay-Warren is in Northern Ontario, within the Sudbury District.
The region experiences a humid continental climate, characterized by warm summers,
cold winters, and significant seasonal variations.
Like many areas in Ontario, Markstay-Warren is expected to experience significant
effects of climate change, including higher average annual temperatures, increased total
annual precipitation, and more frequent and severe extreme weather events. These
changes may affect infrastructure durability, increase flooding risks, and create greater
demand on municipal services.
According to historical data and climate projections, Markstay-Warren may experience
the following key trends:
Higher Average Annual Temperature:
-
Between 1948 and 2008, the average annual temperature in Ontario increased
by approximately 1.5°C.
Municipality of Markstay-Warren
Asset Management Plan 2024
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-
Under a high emissions scenario, average temperatures in Ontario are
projected to rise by 3°C to 8°C over the next century.
-
By the 2050s, the average annual temperature in Ontario is projected to
increase by approximately 2.6°C to 2.7°C, with further increases by the end of
the century.
Increase in Total Annual Precipitation:
-
Markstay-Warren is projected to experience an increase in total annual
precipitation, particularly during the winter and spring months.
-
More frequent and intense rainfall events are expected, leading to an increased
risk of flooding and stormwater management challenges.
-
Under a high emissions scenario, Ontario may experience up to a 17% increase
in total annual precipitation by the end of the century.
Increase in Frequency of Extreme Weather Events:
-
The frequency and severity of extreme weather events in Markstay-Warren are
expected to change significantly.
-
More severe storms, floods, droughts, and heat waves are anticipated,
impacting both natural and built environments.
-
Winter storms may become more intense and frequent, potentially affecting
transportation networks, power infrastructure, and municipal operations.
2.2.2
Integration of Climate Change and Asset Management
Asset management practices aim to deliver sustainable service delivery - providing
services to residents today without compromising the well-being of future residents.
Climate change poses a significant threat to sustainable service delivery by potentially
reducing the useful life of assets and increasing the risk of asset failure. Desired levels of
service may become more challenging to achieve due to climate change impacts such as
flooding, extreme heat, drought, and more frequent and intense storms.
To ensure the sustainable delivery of services, it is crucial to incorporate climate change
considerations into asset management practices. The integration of asset management
and climate change adaptation aligns with industry best practices and enables the
development of a holistic approach to risk management.
Municipality of Markstay-Warren
Asset Management Plan 2024
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2.3 Asset Management Overview
Municipalities are responsible for managing and maintaining a broad portfolio of
infrastructure assets to deliver services to the community. The goal of asset
management is to minimize the lifecycle costs of delivering infrastructure services,
manage the associated risks, while maximizing the value ratepayers receive from the
asset portfolio.
Typically, the acquisition of capital assets accounts for about 10-20% of their total cost
of ownership. The remaining 80-90% comes from operations and maintenance. This AMP
focuses its analysis on the capital costs to maintain, rehabilitate and replace existing
municipal infrastructure assets.
Figure 3 Total Cost of Asset Ownership
These costs can span decades, requiring planning and foresight to ensure financial
responsibility is spread equitably across generations. An asset management plan is
critical to this planning, and an essential element of broader asset management
program. The industry-standard approach and sequence to developing a practical asset
management program begins with a Strategic Plan, followed by an Asset Management
Policy and an Asset Management Strategy, concluding with an Asset Management Plan.
This industry standard, defined by the Institute of Asset Management (IAM), emphasizes
the alignment between the corporate strategic plan and various asset management
documents. The strategic plan has a direct, and cascading impact on asset management
planning and reporting.
2.3.1
Foundational Asset Management Documentation
The industry-standard approach and sequence to developing a practical asset
management program begins with a Strategic Plan, followed by an Asset Management
Policy and an Asset Management Strategy, concluding with an Asset Management Plan.
Municipality of Markstay-Warren
Asset Management Plan 2024
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Figure 4 Foundational Asset Management Documents
This industry standard, defined by the Institute of Asset Management (IAM), emphasizes
the alignment between the corporate strategic plan and various asset management
documents. The strategic plan has a direct, and cascading impact on asset management
planning and reporting.
Asset Management Policy
An asset management policy represents a statement of the principles guiding the
Municipality's approach to asset management activities. It aligns with the organizational
strategic plan and provides clear direction to municipal staff on their roles and
responsibilities as part of the asset management program.
Markstay-Warren's asset management policy identifies staff roles and responsibilities in
asset management. Key details include:
- The Treasurer shall assume the lead role in asset management with support from
department heads and staff
- The council shall hold responsibility for setting the asset management policy, and
maintaining staff capacity to support the development, implementation, and
ongoing maintenance of the Town's asset management program.
The asset management policy also establishes guiding principles which include key
details such as:
- Scope of assets included in the asset registry and associated asset management
reporting
- Maintenance of an asset registry with key details such as description, estimate
useful life, lifecycle costs and estimated timing
Strategic
Plan
Asset
Management
Policy
Asset
Management
Strategy
Asset
Management
Plan
Municipality of Markstay-Warren
Asset Management Plan 2024
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- The long-term view that asset management programs and recommendations shall
follow
- The commitment to encouraging participation of ratepayers in the provision of
feedback on asset management activities
Asset Management Strategy
An asset management strategy outlines the translation of organizational objectives into
asset management objectives and provides a strategic overview of the activities required
to meet these objectives. It provides greater detail than the policy on how the
Municipality plans to achieve asset management objectives through planned activities
and decision-making criteria.
The Municipality's Asset Management Policy contains many of the key components of an
asset management strategy and may be expanded on in future revisions or as part of a
separate strategic document.
Asset Management Plan
The asset management plan (AMP) presents the outcomes of the Municipality's asset
management program and identifies the resource requirements needed to achieve a
defined level of service. The AMP typically includes the following content:
- State of Infrastructure
- Asset Management Strategies
- Levels of Service
- Financial Strategies
The AMP is a living document that should be updated regularly as additional asset and
financial data becomes available. This will allow the Municipality to re-evaluate the state
of infrastructure and identify how the organization's asset management and financial
strategies are progressing.
2.3.2
Key Concepts in Asset Management
Effective asset management integrates several key components, including lifecycle
management, risk & criticality, and levels of service. These concepts are applied
throughout this asset management plan and are described below in greater detail.
Lifecycle Management Strategies
The condition or performance of most assets will deteriorate over time. This process is
affected by a range of factors including an asset's characteristics, location, utilization,
maintenance history and environment. Asset deterioration has a negative effect on the
ability of an asset to fulfill its intended function, and may be characterized by increased
cost, risk and even service disruption.
Municipality of Markstay-Warren
Asset Management Plan 2024
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To ensure that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to proactively
manage asset deterioration.
There are several field intervention activities that are available to extend the life of an
asset. These activities can be generally placed into one of three categories:
maintenance, rehabilitation, and replacement. The following table provides a description
of each type of activity and the general difference in cost.
Depending on initial lifecycle management strategies, asset performance can be
sustained through a combination of maintenance and rehabilitation, but at some point,
replacement is required. Understanding what effect these activities will have on the
lifecycle of an asset, and their cost, will enable staff to make better recommendations.
Lifecycle
Activity
Cost
Typical Associated Risks
Maintenance
Activities that
prevent defects or
deteriorations
from occurring
$
- Balancing limited resources between planned
maintenance and reactive, emergency repairs and
interventions;
- Diminishing returns associated with excessive
maintenance activities, despite added costs;
- Intervention selected may not be optimal and may not
extend the useful life as expected, leading to lower
payoff and potential premature asset failure;
Rehabilitation/
Renewal
Activities that
rectify defects or
deficiencies that
are already
present and may
be affecting asset
performance
$$$
- Useful life may not be extended as expected;
- May be costlier in the long run when assessed against
full reconstruction or replacement;
- Loss or disruption of service, particularly for
underground assets;
Replacement/
Reconstruction
$$$$
$
- Incorrect or unsafe disposal of existing asset;
- Costs associated with asset retirement obligations;
- Substantial exposure to high inflation and cost
overruns;
- Replacements may not meet capacity needs for a
larger population;
Municipality of Markstay-Warren
Asset Management Plan 2024
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Lifecycle
Activity
Cost
Typical Associated Risks
Asset end-of-life
activities that
often involve the
complete
replacement of
assets
- Loss or disruption of service, particularly for
underground assets;
Table 2 Lifecycle Management: Typical Lifecycle Interventions
The Municipality's approach to lifecycle management is described within each asset
category outlined in this AMP. Staff will continue to evolve and innovate current
practices for developing and implementing proactive lifecycle strategies to determine
which activities to perform on an asset and when they should be performed to maximize
useful life at the lowest total cost of ownership.
Risk & Criticality
Asset risk and criticality are essential building blocks of asset management, integral in
prioritizing projects and distributing funds where they are needed most based on a
variety of factors. Assets in disrepair may fail to perform their intended function, pose
substantial risk to the community, lead to unplanned expenditures, and create liability
for the municipality. In addition, some assets are simply more important to the
community than others, based on their financial significance, their role in delivering
essential services, the impact of their failure on public health and safety, and the extent
to which they support a high quality of life for community stakeholders.
Risk is a product of two variables: the probability that an asset will fail, and the resulting
consequences of that failure event. It can be a qualitative measurement, (i.e. low,
medium, high) or quantitative measurement (i.e. 1-5), that can be used to rank assets
and projects, identify appropriate lifecycle strategies, optimize short- and long-term
budgets, minimize service disruptions, and maintain public health and safety.
Municipality of Markstay-Warren
Asset Management Plan 2024
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Figure 5 Risk Equations
The approach used in this AMP relies on a quantitative measurement of risk associated
with each asset. The probability and consequence of failure are each scored from 1 to 5,
producing a minimum risk index of 1 for the lowest risk assets, and a maximum risk
index of 25 for the highest risk assets.
Probability of Failure
Several factors can help decision-makers estimate the probability or likelihood of an
asset's failure, including its condition, age, previous performance history, and exposure
to extreme weather events, such as flooding and ice jams--both a growing concern for
municipalities in Canada.
Consequence of Failure
Estimating criticality also requires identifying the types of consequences that the
organization and community may face from an asset's failure, and the magnitude of
those consequences. Consequences of asset failure will vary across the infrastructure
portfolio; the failure of some assets may result primarily in high direct financial cost but
may pose limited risk to the community. Other assets may have a relatively minor
financial value, but any downtime may pose significant health and safety hazards to
residents.
Table 3 illustrates the various types of consequences that can be integrated in
developing risk and criticality models for each asset category and segments within. We
note that these consequences are common, but not exhaustive.
Municipality of Markstay-Warren
Asset Management Plan 2024
13
Type of
Consequence
Description
Direct Financial
Direct financial consequences are typically measured as the
replacement costs of the asset(s) affected by the failure event,
including interdependent infrastructure.
Economic
Economic impacts of asset failure may include disruption to local
economic activity and commerce, business closures, service
disruptions, etc. Whereas direct financial impacts can be seen
immediately or estimated within hours or days, economic
impacts can take weeks, months and years to emerge, and may
persist for even longer.
Socio-political
Socio-political impacts are more difficult to quantify and may
include inconvenience to the public and key community
stakeholders, adverse media coverage, and reputational damage
to the community and the Municipality.
Environmental Environmental consequences can include pollution, erosion,
sedimentation, habitat damage, etc.
Public Health and
Safety
Adverse health and safety impacts may include injury or death,
or impeded access to critical services.
Strategic
These include the effects of an asset's failure on the
community's long-term strategic objectives, including economic
development, business attraction, etc.
Table 3 Risk Analysis: Types of Consequences of Failure
This AMP includes a preliminary evaluation of asset risk and criticality. Each asset has
been assigned a probability of failure score and consequence of failure score based on
available asset data. These risk scores can be used to prioritize maintenance,
rehabilitation, and replacement strategies for critical assets.
These models have been built in Citywide, an asset management software tool, for
continued review, updates, and refinements.
Levels of Service
A level of service (LOS) is a measure of the services that the Municipality is providing to
the community and the nature and quality of those services. Within each asset category
in this AMP, technical metrics and qualitative descriptions that measure both technical
and community levels of service have been established and measured as data is
available.
Municipality of Markstay-Warren
Asset Management Plan 2024
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The Municipality measures the level of service provided at two levels: Community Levels
of Service and Technical Levels of Service. This AMP includes those LOS that are
required under O. Reg. 588/17 as well as any additional metrics the Municipality wishes
to track.
Community Levels of Service
Community levels of service are a simple, plain language description or measure of the
service that the community receives. For core asset categories as applicable (Roads,
Bridges & Culverts, Stormwater, Water, and Sanitary) the province, through O. Reg.
588/17, has provided qualitative descriptions that are required to be included in this
AMP.
Technical Levels of Service
Technical levels of service are a measure of key technical attributes of the service being
provided to the community. These include mostly quantitative measures and tend to
reflect the impact of the Municipality's asset management strategies on the physical
condition of assets or the quality/capacity of the services they provide.
For core asset categories as applicable (Roads, Bridges & Culverts, Stormwater, Water,
and Sanitary) the province, through O. Reg. 588/17, has also provided technical metrics
that are required to be included in this AMP.
Current and Proposed Levels of Service
This AMP focuses on measuring the current level of service provided to the community.
Once current levels of service have been measured, the Municipality plans to establish
proposed levels of service over a 10-year period, in accordance with O. Reg. 588/17.
Proposed levels of service should be realistic and achievable within the timeframe
outlined by the Municipality. They should also be determined with consideration of a
variety of community expectations, fiscal capacity, regulatory requirements, corporate
goals and long-term sustainability. Once proposed levels of service have been
established, and prior to July 2025, the Municipality must identify a lifecycle
management and financial strategy which allows these targets to be achieved.
2.4 Scope & Methodology
2.4.1
Asset Categories for this AMP
This asset management plan for the Municipality of Markstay-Warren is produced in
compliance with O. Reg. 588/17. The July 2024 deadline under the regulation--the
second of three AMPs--requires analysis of core and non-core asset categories.
The AMP summarizes the state of the infrastructure for the Municipality's asset portfolio,
establishes current levels of service and the associated technical and customer-oriented
key metrics, outlines lifecycle strategies for optimal asset management and
Municipality of Markstay-Warren
Asset Management Plan 2024
15
performance, and provides financial strategies to reach sustainability for the asset
categories listed below.
Figure 6 Tax Funded and Rate Funded Asset Categories
2.4.2
Data Effective Date
It is important to note that this plan is based on assets in ownership as of December
2023 with all costs and analysis based on December 2024. The data in this report
represents a snapshot in time using the best available processes, data, and information
at the Municipality. Strategic asset management planning is an ongoing and dynamic
process that requires continuous data updates and dedicated data management
resources.
2.4.3
Deriving Replacement Costs
There are a range of methods to determine the replacement cost of an asset, and some
are more accurate and reliable than others. This AMP relies on two methodologies:
User-Defined Cost and Cost Per Unit
Based on costs provided by municipal staff which could include average costs from
recent contracts; data from engineering reports and assessments; staff estimates
based on knowledge and experience.
Cost Inflation / CPI Tables
Historical costs of the assets are inflated based on Consumer Price Index or Non-
Residential Building Construction Price Index.
- Road Network
- Bridges & Culverts
- Stormwater Network
- Buildings
- Land Improvements
- Vehicles
- Machinery & Equipment
Tax Funded Assets
- Water Network
- Sanitary Sewer Network
Rate Funded Assets
Municipality of Markstay-Warren
Asset Management Plan 2024
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User-defined costs based on reliable sources are a reasonably accurate and reliable way
to determine asset replacement costs. Cost inflation is typically used in the absence of
reliable replacement cost data. It is a reliable method for recently purchased and/or
constructed assets where the total cost is reflective of the actual costs that the
Municipality incurred. As assets age, and new products and technologies become
available, cost inflation becomes a less reliable method.
2.4.4
Estimated Service Life & Service Life Remaining
The estimated useful life (EUL) of an asset is the period over which the Municipality
expects the asset to be available for use and remain in service before requiring
replacement or disposal. The EUL for each asset in this AMP was assigned according to
the knowledge and expertise of municipal staff and supplemented by existing industry
standards when necessary.
By using an asset's in-service data and its EUL, the Municipality can determine the
service life remaining (SLR) for each asset. Using condition data and the asset's SLR, the
Municipality can more accurately forecast when it will require replacement. The SLR is
calculated as follows:
Figure 7 Service Life Remaining Calculation
2.4.5
Reinvestment Rate
As assets age and deteriorate, they require additional investment to maintain a state of
good repair. The reinvestment of capital funds, through asset renewal or replacement, is
necessary to sustain an adequate level of service. The reinvestment rate is a
measurement of available or required funding relative to the total replacement cost.
By comparing the actual vs. target reinvestment rate the Municipality can determine the
extent of any existing funding gap. The reinvestment rate is calculated as follows:
Figure 8 Target Reinvestment Rate Calculation
Municipality of Markstay-Warren
Asset Management Plan 2024
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Figure 9 Actual Reinvestment Rate Calculation
2.4.6
Deriving Asset Condition
An incomplete or limited understanding of asset conditions can mislead long-term
planning and decision-making. Accurate and reliable condition data helps to prevent
premature and costly rehabilitation or replacement and ensures that lifecycle activities
occur at the right time to maximize asset value and useful life.
A condition assessment rating system provides a standardized descriptive framework
that allows comparative benchmarking across the Municipality's asset portfolio. The
table below outlines the condition rating system used in this AMP to determine asset
condition. This rating system is aligned with the Canadian Core Public Infrastructure
Survey which is used to develop the Canadian Infrastructure Report Card. When
assessed condition data is not available, service life remaining is used to approximate
asset condition.
Municipality of Markstay-Warren
Asset Management Plan 2024
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Condition
Description
Criteria
Service Life
Remaining
(%)
Very Good
Fit for the
future
Well maintained, good condition, new
or recently rehabilitated
80-100
Good
Adequate for
now
Acceptable, generally approaching
mid-stage of expected service life
60-80
Fair
Requires
attention
Signs of deterioration, some elements
exhibit significant deficiencies
40-60
Poor
Increasing
potential of
affecting
service
Approaching end of service life,
condition is below standard, large
portion of system exhibits significant
deterioration
20-40
Very Poor
Unfit for
sustained
service
Near or beyond expected service life,
widespread signs of advanced
deterioration, some assets may be
unusable
0-20
Table 4 Standard Condition Rating Scale
The analysis in this AMP is based on assessed condition data only as available. In the
absence of assessed condition data, asset age is used as a proxy to determine asset
condition.
Condition vs. Suitability
It is important to note that condition is only one aspect of determining an asset's
suitability to providing the service intended. Other factors, such as capacity, should be
considered on a category level.
For example, a Town Hall Office Facility may be in good condition with sufficient service
life remaining, but only has office space for 20 employees. If the municipality requires
office space for 30 employees, solutions should be considered which may include
replacement amongst other alternatives such as secondary office space, remote work
options, etc. As these considerations are nuanced for the specific asset, suitability
factors may not be directly addressed as part of this Asset Management Plan.
Municipality of Markstay-Warren
Asset Management Plan 2024
19
2.5 Ontario Regulation 588/17
As part of the Infrastructure for Jobs and Prosperity Act, 2015, the Ontario government
introduced Regulation 588/17 - Asset Management Planning for Municipal Infrastructure
(O. Reg 588/17)2. Along with creating better performing organizations, more liveable
and sustainable communities, the regulation is a key, mandated driver of asset
management planning and reporting. It places substantial emphasis on current and
proposed levels of service and the lifecycle costs incurred in delivering them.
Figure 10 below outlines key reporting requirements under O. Reg 588/17 and the
associated timelines.
Figure 10 O. Reg. 588/17 Requirements and Reporting Deadlines
2 O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure https://www.ontario.ca/laws/regulation/170588
Municipality of Markstay-Warren
Asset Management Plan 2024
20
2.5.1
O. Reg. 588/17 Compliance Review
Requirement
O. Reg. 588/17
Section
AMP
Section
Referenc
e
Status
Summary of assets in each category
S.5(2), 3(i)
4.1 - 12.1
Complete
Replacement cost of assets in each
category
S.5(2), 3(ii)
4.1 - 12.1
Complete
Average age of assets in each
category
S.5(2), 3(iii)
4.3 - 12.3 Complete
Condition of core assets in each
category
S.5(2), 3(iv)
4.2 - 12.2
Complete
Description of municipality's
approach to assessing the condition
of assets in each category
S.5(2), 3(v)
4.4 - 12.4
Complete
Current levels of service in each
category
S.5(2), 1(i-ii)
4.7 - 12.7
Complete
Current performance measures in
each category
S.5(2), 2
4.7 - 12.7
Complete
Lifecycle activities needed to
maintain current levels of service for
10 years
S.5(2), 4
4.4 - 12.4
Complete
Costs of providing lifecycle activities
for 10 years
S.5(2), 4
Appendix
B
Complete
Growth assumptions
S.5(2), 5(i-ii)
S.5(2), 6(i-vi)
13.1 -
13.2
Complete
Table 5 O. Reg. 588/17 Compliance Review
Municipality of Markstay-Warren
Asset Management Plan 2024
21
3. Portfolio Overview - State of the Infrastructure
The state of the infrastructure (SOTI) summarizes the inventory, condition, age profiles,
and other key performance indicators for the Municipality's infrastructure portfolio.
These details are presented for all core and non-core asset categories.
3.1 Asset Hierarchy & Data Classification
Asset hierarchy explains the relationship between individual assets and their
components, and a wider, more expansive network and system. How assets are grouped
in a hierarchy structure can impact how data is interpreted. Assets were structured to
support meaningful, efficient reporting and analysis. Key category details are
summarized at asset segment level.
Figure 11 Asset Hierarchy and Data Classification
3.2 Portfolio Overview
3.2.1
Total Replacement Cost of Asset Portfolio
The nine asset categories analyzed in this Asset Management Plan have a total current
replacement cost of $128 million. This estimate was calculated using user-defined
costing, as well as inflation of historical or original costs to current date. This estimate
reflects replacement of historical assets with similar, not necessarily identical, assets
available for procurement today. Figure 12 illustrates the replacement cost of each asset
-Gravel Roads
-Asphalt Roads
-Surface Treated
Road
Network
-Bridges
-Culverts
Bridges &
Culverts
-Hydrants
-Water Mains
-Water Tower
-Water Treatment
Water
Network
-Manholes
-Sanitary Mains
-Sanitary Lift Station
-Wastewater Lagoon
Sanitary
Network
-Storm Mains
-Catch Basins
Storm-
water
Network
-Administration
-Fire
-Public Works
-Parks and
Recreation
Buildings
-Fields & Courts
-Outdoor Structures
-Play Structures
Land
Improve-
ments
-Fire
-Parks & Recreation
-Public Works
Vehicles
-Communication
-Heavy Equipment
-Library
-Misc Equipment
Machinery
&
Equipment
Municipality of Markstay-Warren
Asset Management Plan 2024
22
category; at 29% of the total portfolio, the water network forms the largest share of the
Municipality's asset portfolio, followed by the road network at 21%.
Figure 12 Current Replacement Cost by Asset Category
3.2.2
Target vs. Actual Reinvestment Rate
Figure 13 below depicts funding gaps by comparing the target to the current
reinvestment rate. To meet the existing long-term capital requirements, the Municipality
requires an annual capital investment of $3.5 million, for a target portfolio reinvestment
rate of 2.77%. Currently, the annual investment from sustainable revenue sources is
$503,000 for a current portfolio reinvestment rate of 0.39%3. Target and current re-
investment rates by asset category are detailed below.
3 As discussed in the financial strategy section, at the time of this reports publication the Town was unable to provide reliable
historical capital investment information for the water and sanitary networks. As a result, the financial strategy is premised on no
sustainable capital funding to these asset categories and consequently the actual reinvestment rate is 0%. When additional or new
capital investment records are available, they may indicate a higher rate of capital investment. If this is the case, the actual
reinvestment rate would increase for water and sanitary networks and the portfolio overall.
Municipality of Markstay-Warren
Asset Management Plan 2024
23
Figure 13 Current Vs. Target Reinvestment Rate
3.2.3
Condition of Asset Portfolio
Figure 14 and Figure 15 summarize asset condition at the portfolio and category levels,
respectively. Based on both assessed conditions and age-based analysis, 69% of the
Municipality's infrastructure portfolio is in fair or better condition, with the remaining
31% in poor or worse condition. Typically, assets in poor or worse conditions may
require replacement or major rehabilitation in the immediate or short-term. Targeted
condition assessments may help further refine the list of assets that may be candidates
for immediate intervention, including potential replacement or reconstruction.
Similarly, assets in fair condition should be monitored for disrepair over the medium
term. Keeping assets in fair or better condition is typically more cost-effective than
addressing assets needs when they enter the latter stages of their lifecycle or decline to
a lower condition rating, e.g., poor or worse.
Condition data was available for majority of vehicles, land improvement, road network
and bridges & culvert assets. A moderate proportion of the sanitary network (primarily
manholes) and stormwater network (primarily catch basins) had condition assessments.
For all remaining assets, including major infrastructure such as water network and
buildings, age was used as an approximation of condition for most of these assets. Age-
based condition estimations can skew data and lead to potential under- or
overstatement of asset needs.
Further, when assessed condition data was available, it was projected to the data
effective year (2024). This 'projected condition' can generate lower condition ratings
than those established at the time of the condition assessment. The rate of this
deterioration will also depend on lifecycle curves used to project conditions over time.
2.59%
3.38%
1.77%
1.48%
1.46%
3.34%
4.64%
7.21%
5.36%
1.06%
0.53%
0.23%
0.26%
0.36%
0.56%
0.42%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Target Reinvestment Rate
Actual Reinvestment Rate
Municipality of Markstay-Warren
Asset Management Plan 2024
24
Figure 14 Asset Condition: Portfolio Overview
As further illustrated in Figure 15 at the category level, the majority of major, core
infrastructure including roads, bridges, and structural culverts, water network, sanitary
network, and stormwater network are in fair or better condition, based on in-field
condition assessment data and age-based condition projections. See Table 6 for details
on how condition data was derived for each asset segment.
Very Poor,
$30,786,000
(24%)
Poor,
$9,035,000
(7%)
Fair,
$33,307,000
(26%)
Good,
$23,250,000
(18%)
Very Good,
$31,774,000
(25%)
Overall Portfolio Condition
Municipality of Markstay-Warren
Asset Management Plan 2024
25
Figure 15 Asset Condition by Asset Category
Buildings and facilities are not componentized into their individual major elements and
components. This limits the validity of current condition estimates as they are presented
only at the 'parent' asset level, such as 'Fire Station #3', or 'Municipality Office'.
Source of Condition Data
This AMP relies on assessed condition for 38% of assets, based on and weighted by
replacement cost. For the remaining assets, age is used as an approximation of
condition. Assessed condition data is invaluable in asset management planning as it
reflects the true condition of the asset and its ability to perform its functions. The table
below identifies the source of condition data used throughout this AMP.
$1.0m
$2.4m
$852k
$25.5m
$506k
$1.5m
$56k
$489k
$1.6m
$715k
$7.4m
$143k
$4.3m
$8.6m
$200k
$1.6m
$1.2m
$1.5m
$401k
$763k
$9.5m
$8.3m
$9.8m
$119k
$316k
$300k
$10k
$4.0m
$4.3m
$2.1m
$2.5m
$95k
$18.2m
$838k
$6k
$1.4m
$3.4m
$2.3m
0%
20%
40%
60%
80%
100%
Machinery &
Equipment
Vehicles
Land
Improvements
Buildings
Stormwater
Network
Sanitary Network
Water Network
Bridges &
Culverts
Road Network
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Municipality of Markstay-Warren
Asset Management Plan 2024
26
Asset Category
Asset Segment(s)
% of Assets with
Assessed
Conditions
Source of
Condition Data
Road Network
Surface Treated
roads
29%
2022 External
Condition
Assessments
Gravel Roads
100%
Asphalt Roads
25%
Bridges & Culverts
Bridges
Structural Culverts
100%
2024 OSIM Report
Water Network
All
0%
N/A
Sanitary Network
Manholes
100%
2020 Assessments
Sanitary Mains
0%
N/A
Stormwater Network
Catch Basins
89%
2022 Assessment
Stormwater Mains
0%
N/A
Buildings
All
0%
N/A
Land Improvements
All
100%
Staff Assessments
Vehicles
All
100%
Staff Assessments
Machinery &
Equipment
All
0%
N/A
Table 6 Source of Condition Data
3.2.4
Service Life Remaining
Based on asset age, available assessed condition data and estimated useful life, 45% of
the Municipality's assets will require replacement within the next 10 years (not
accounting for asset replacement backlog).
3.2.5
Risk Matrix
For each asset category risk models were developed to reflect the asset specific
parameters that reflect the probability and consequence of asset failure. The risk models
are summarized in Appendix D of this report. Figure 16 summarizes portfolio wide asset
risks levels.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$35,900,803
$18,653,721
$14,958,500
$24,452,322
$34,187,102
(28%)
(15%)
(12%)
(19%)
(27%)
Figure 16 Risk Matrix: All Assets
Municipality of Markstay-Warren
Asset Management Plan 2024
27
The analysis shows that based on current risk models, approximately 45% of the
Municipality's assets, with a current replacement cost of approximately $58,131,000,
carry a risk rating of 15 or higher (red) out of 25. Assets in this group have a high
probability of failure, most often due to low condition, and often also a high consequence
of failure, most often due to significant replacement cost and/or their high social or
operational impacts (i.e. no detour options, high traffic counts, critical service delivery).
As new asset attribute information and condition assessment data are integrated with
the asset register, asset risk ratings will evolve, resulting in a redistribution of assets
within the risk matrix. Staff should also continue to calibrate risk models.
We caution that since risk ratings rely on many factors beyond an asset's physical
condition or age, assets in a state of disrepair can sometimes be classified as low-risk,
despite their poor condition rating. In such cases, although the probability of failure for
these assets may be high, their consequences of failure ratings were determined to be
low based on the attributes used and the data available.
Similarly, assets with very high condition ratings can receive a moderate to high-risk
rating despite a low probability of failure. These assets may be deemed as highly critical
to the Municipality based on their costs, economic importance, social significance, and
other factors. Continued calibration of an asset's criticality and regular data updates are
needed to ensure these models more accurately reflect an asset's actual risk profile.
Qualitative Risk
In addition to quantified risk as summarized above, the Town has noted key trends,
challenges, and risks to service delivery that they are currently facing. The most
prominent risks identified are:
Aging Infrastructure and Lifecycle Management Strategies
The municipality's current lifecycle management strategies are generally
more reactive than proactive. Many assets are approaching or have
reached the end of their useful life across multiple categories, creating a
growing backlog of renewal needs. Without consistent mid-lifecycle
rehabilitative interventions, most assets are maintained only until they
require full replacement. This approach increases the risk of higher
lifecycle costs, emergency repairs, and service disruptions. Developing
well-defined rehabilitation and renewal strategies, supported by
sustainable annual funding, will be essential to reducing reliance on
reactive management and minimizing the deferral of critical capital
works.
Municipality of Markstay-Warren
Asset Management Plan 2024
28
Organizational Capacity
Limited staff capacity and reliance on external funding create challenges
for proactive asset management. While staff have strong knowledge of
asset conditions, competing operational priorities limit the time and
resources available for strategic lifecycle planning. Major renewal
projects in multiple asset categories depend heavily on grants or other
external sources, which can delay implementation when funding is not
secured. Establishing predictable, sustainable funding streams and
ensuring adequate staffing resources will be critical to improving long-
term planning, reducing deferred works, and maintaining service levels.
Municipality of Markstay-Warren
Asset Management Plan 2024
1
3.2.6
Forecasted Capital Requirements
Aging assets require maintenance, rehabilitation, and replacement. Figure 17 below illustrates the cyclical short-,
medium- and long-term infrastructure replacement requirements for all asset categories analyzed in this AMP over a
100-year time horizon. On average, $3.5 million is required each year to remain current with capital replacement
needs for the Municipality's asset portfolio ($18.5 million allocated to each 5-year time block), represented by the red
dotted line. Although actual spending may fluctuate substantially from year to year, this figure is a useful benchmark
for annual capital expenditure targets (or allocations to reserves) to ensure projects are not deferred and replacement
needs are met as they arise. This figure relies on age and available condition data.
Figure 17 Capital Replacement Needs: Portfolio Overview 2024-212
-
$3.5m
$24.8m
$12.4m
$17.4m
$12.5m
$8.0m
$17.7m
$10.4m
$34.0m
$11.8m
$42.8m
$11.8m
$6.2m
$6.3m
$33.8m
$11.8m
$11.2m
$11.6m
$7.6m
$3.6m
$29.3m
$8.7m
$0
$5m
$10m
$15m
$20m
$25m
$30m
$35m
$40m
$45m
Forecasted Capital Requirements
Road Network
Bridges & Culverts
Water Network
Sanitary Network
Stormwater Network
Buildings
Land Improvements
Vehicles
Machinery & Equipment
Annual Requirement
Municipality of Markstay-Warren
Asset Management Plan 2024
1
Replacement needs are forecasted to fluctuate significantly over the planning horizon.
Major reinvestment peaks are projected in 2055-2059 ($34.0M), 2065-2069 ($42.8M),
and 2085-2089 ($33.8M), primarily driven by the water, stormwater, and building
portfolios. Conversely, several intervals, including 2080-2084 ($6.3M over 5 years;
$1.26 M annually) and 2110-2114 ($3.6M over 5 years; $0.72 M annually), fall closer to
or below the annual requirement of $3.7 million. These peaks and valleys illustrate
opportunities to redistribute investments more evenly over time to enhance support
project execution and financial sustainability.
There is a backlog of more than $24 million, comprising assets that remain in service
beyond their estimated useful life. It is unlikely that all such assets are in a state of
disrepair, requiring immediate replacements. This makes continued and expanded
targeted and consistent condition assessments integral. Risk frameworks, proactive
lifecycle strategies, and levels of service targets can then be used to prioritize projects,
continuously refine estimates for both backlogs and ongoing capital needs and help
select the right treatment for each asset. In addition, more effective componentization
of buildings will improve these projections, including backlog estimates.
Municipality of Markstay-Warren
Asset Management Plan 2024
2
Core Assets
Road Network
Replacement
Cost
Average
Condition
Financial Capacity
$26.4 m
Fair
(54%)
Annual Requirement:
$683,000
Funding Available:
$280,000
Annual Deficit:
$403,000
Bridges & Culverts
Replacement
Cost
Average
Condition
Financial Capacity
$20.4 m
Fair
(45%)
Annual Requirement:
$693,000
Funding Available:
$109,000
Annual Deficit:
$582,000
Water Network
Replacement
Cost
Average
Condition
Financial Capacity
$36.6 m
Good
(77%)
Annual Requirement:
$647,000
Funding Available:
$0
Annual Deficit:
$647,000
Sanitary Network
Replacement
Cost
Average
Condition
Financial Capacity
$8.9 m
Good
(74%)
Annual Requirement:
$133,000
Funding Available:
$0
Annual Deficit:
$133,000
Stormwater Network
Replacement
Cost
Average
Condition
Financial Capacity
$4.6 m
Good
(62%)
Annual Requirement:
$68,000
Funding Available:
$11,000
Annual Deficit:
$58,000
Municipality of Markstay-Warren
Asset Management Plan 2024
3
4. Road Network
The Municipality's road network comprises the largest share of its infrastructure
portfolio, with a current replacement cost of more than $26 million.
4.1 Inventory & Valuation
Table 7 summarizes the quantity and current replacement cost of the Municipality's
various road network assets as managed in its primary asset management register,
Citywide.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Asphalt Roads
7,949
Length (m)
$5,500,708
Cost per Unit
Gravel Roads
187,833
Length (m)
$14,729,864
Cost per Unit
Surface Treated
Roads
12,205
Length (m)
$6,187,935
Cost per Unit
TOTAL
$26,418,507
Table 7 Detailed Asset Inventory: Road Network
Figure 18 Portfolio Valuation: Road Network
4.2 Asset Condition
Figure 19 summarizes the replacement cost-weighted condition of the Municipality's road
network. Based on a combination of field inspection data and age, 75% of assets are in
fair or better condition; the remaining 25% of assets are in poor to very poor condition.
For roads assets, conditions are determined based on the age of an asset and its
$5.5m
$6.2m
$14.7m
$5m
$10m
$15m
$20m
Asphalt Roads
Surface Treated Roads
Gravel Roads
Replacement Cost by Segment
Municipality of Markstay-Warren
Asset Management Plan 2024
4
Estimated Useful Life (EUL). Condition assessments were available for 100% of gravel
roads, 25% of asphalt, and 29% of surface treated roads based on replacement cost.
This condition data was projected from inspection date to current year to estimate their
condition today. No condition data was available for the remaining asset types.
Assets in poor or worse conditions may be candidates for replacement in the short term;
similarly, assets in fair condition may require rehabilitation or replacement in the
medium term and should be monitored for further degradation in condition. As
illustrated in Figure 19, most the Municipality's road network assets are in fair or better
condition.
Figure 19 Asset Condition: Road Network Overall
As illustrated in Figure 20, based on condition assessments, most asphalt and gravel
roads are in fair or better condition. Surface treated roads have a comparatively lower
proportion of roads in fair or better condition.
Figure 20 Asset Condition: Road Network by Segment
Very Poor,
$2,305,000
(9%)
Poor,
$4,310,000
(16%)
Fair,
$9,754,000
(37%)
Good,
$8,572,000
(32%)
Very Good,
$1,477,000
(6%)
$1.5m
$995k
$6.9m
$716k
$2.5m
$5.1m
$2.1m
$1.0m
$2.1m
$1.2m
$1.7m
$624k
0%
20%
40%
60%
80%
100%
Surface Treated
Roads
Gravel Roads
Asphalt Roads
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Municipality of Markstay-Warren
Asset Management Plan 2024
5
4.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or design
life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an
asset during which it can continue to fulfil its intended purpose and provide value to
users, safely and efficiently. As assets age, their performance diminishes, often more
rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential long-term
replacement spikes.
Figure 21 illustrates the average current age of each asset type and its estimated useful
life. Both values are weighted by the replacement cost of individual assets.
Figure 21 Estimated Useful Life vs. Asset Age: Road Network
Age analysis shows that all road types have significantly surpassed their expected useful
lives. Asphalt roads have an average age of 66.2 years compared to a design life of 25
years, gravel roads average 97.2 years compared to a design life of 50 years, and
surface treated roads average 63.5 years compared to design life of 15 years.
Although asset age is an important measurement for long-term planning, condition
assessments provide a more accurate indication of actual asset needs. Further, useful
life estimates established as part of the PSAB 3150 implementation may not be accurate
and may not reflect in-field asset performance.
66.2
97.2
63.5
25
50
15
0
20
40
60
80
100
120
Asphalt Roads
Gravel Roads
Surface Treated Roads
Number of Years
Weighted Average Age
Weighted Average EUL
Municipality of Markstay-Warren
Asset Management Plan 2024
6
4.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. This process is
affected by a range of factors such as asset location, utilization, maintenance history
and environment.
The following lifecycle strategies have been developed as a proactive approach to
managing the lifecycle of asphalt and surface treated roads. Due to funding limitations,
the Town is unable to execute on the below noted strategy, however this represents the
industry's best practice for road interventions. It is the Town's intention to move
towards a proactive and consistently applied road management strategy. For this
reason, they have elected to model the preferred road management strategy. Such an
approach shifts away from allowing the roads to deteriorate until replacement is
required, and instead complete strategic rehabilitation that extends the service life of
roads at a lower total cost. Table 8 summarizes the events to occur, and their associated
trigger. The graph below represents how the road condition is forecasted to change over
time and from lifecycle events (black dots).
Asphalt Roads
Event Name
Event Class
Event Trigger
Crack Sealing
Maintenance
4 Years
50 mm Resurfacing
Rehabilitation
18 Years
Crack Sealing
Maintenance
22 Years
50 mm Resurfacing
Rehabilitation
33 Years
Full Reconstruction
Replacement
50 Years
Table 8 Lifecycle Management Strategy: Road Network (Asphalt Roads)
Municipality of Markstay-Warren
Asset Management Plan 2024
7
Table 9 below summarizes the surface treated roads lifecycle strategy, including the
events to occur, and their associated trigger. The graph represents how the road
condition is forecasted to change over time and from lifecycle events.
Surface Treated Roads
Event Name
Event Class
Event Trigger
Single Surface Treatment
Rehabilitation
4 Years
Single Surface Treatment
Rehabilitation
10 years
Single Surface Treatment
Rehabilitation
16 years
Single Surface Treatment
Rehabilitation
18 years
Pulverize and Double Surface
Treatment
Rehabilitation
22 years
Single Surface Treatment
Rehabilitation
26 years
Full Reconstruction
Replacement
37 Years
Table 9 Lifecycle Management Strategy: Road Network (Surface Treated Roads)
Table 10 below expands on maintenance and inspection activities for road network
assets. This represents the activities that the Town currently conducts across their road
network assets.
Activity
Type
Description of Current Strategy
Inspection
Road inspections are completed every 30 days based on Minimum
Maintenance Standards (MMS)
Municipality of Markstay-Warren
Asset Management Plan 2024
8
Activity
Type
Description of Current Strategy
Condition inspections are typically completed every 3-5 years for
the entire road network. The last condition assessment was
complete in 2022 and is reflected in this document.
Condition is assessed on a scale of 0-100 based on the following
rating scale:
Descriptor
Range
Definition
Very Good
80-100
Well maintained, good condition, new or
recently rehabilitated.
Good
60-79
Good condition, few elements exhibit
minor deficienceis.
Fair
40-59
Some elements exhibit significant
deficiencies. Asset required attention.
Poor
20-39
A large portion of the system exhibits
significant deficiencies. Asset mostly
below standard and approaching end of
service life.
Very
Poor 0-
19
Widespread signs of deterioration, service
is affected.
Maintenance
Grading gravel roads forms part of the largest maintenance
schedule.
Calcium is applied to approximately 20% of Municipal gravel roads
yearly.
Ditching and brushing is performed sporadically.
Culvert replacement is prioritized based on a worst first approach
and the efficiency of moving equipment. Where several
geographically proximate culverts have failed their replacement is
prioritized.
Potholes are repaired according to the minimum road standards.
Moving forward the Town is adding a 3" lift to problem areas of the
road.
Minor
Rehabilitation
Historically, project selection has been primarily determined by
availability of grant funding.
Municipality of Markstay-Warren
Asset Management Plan 2024
9
Activity
Type
Description of Current Strategy
Patching and Mill and Pave rehabilitations are completed based on
asset conditions; with target intervention occurring between Fair
and Good Condition.
Chip seal rehabilitation is completed based on asset condition, with
target intervention occurring between fair and very good.
Replacement
When a road asset is in poor or worse condition full replacement is
considered.
Sidewalks, streetlights, and signs are reconstructed when they are
poor or worse condition.
Table 10 Lifecycle Management Strategy: Road Network
4.5 Forecasted Long-Term Replacement Needs
Figure 22 illustrates the cyclical short-, medium- and long-term infrastructure
rehabilitation and replacement requirements for the Municipality's road network. This
analysis was run until 2074 to capture at least one iteration of replacement for the
longest-lived asset in the road network. The Municipality's average annual requirements
$683k
$0
$3.4m $3.1m $2.9m
$1.7m
$3.1m
$5.8m $5.7m
$3.2m
$4.0m
$2.7m
$0
$1.0m
$2.0m
$3.0m
$4.0m
$5.0m
$6.0m
$7.0m
Forecasted Capital Requirements
Asphalt Roads
Gravel Roads
Surface Treated Roads
Annual Requirement
Total
Municipality of Markstay-Warren
Asset Management Plan 2024
10
(red dotted line) total $683,000 ($3.4 million per 5-year bucket) for all assets in the
road network. Although actual spending may fluctuate substantially from year to year,
this figure is a useful benchmark value for annual capital expenditure targets (or
allocations to reserves) to ensure projects are not deferred and replacement needs are
met as they arise.
The chart illustrates significant investment needs in the short and long term. The highest
peaks occur between 2050-2054 ($5.8M) and 2055-2059 ($5.7M), primarily driven by
gravel and surface treated road renewal. The associated average annual requirement is
$1.16M and $1.14 million respectively, which is greater than the average annual
requirement of $683,000. Peaks and valleys in capital investment requirements are
very common in infrastructure and simply indicate the importance of long-term capital
and project planning to ensure there are funds and resources available in a timely
manner.
These projections are based on capital costs associated with asset replacement and
strategic rehabilitation activities as detailed in Table 8 and Table 9 above. The capital
projections provide a long-term, portfolio-level overview of capital needs and should be
used to support improved long-term financial and project planning.
Figure 22 Forecasted Capital Replacement Needs: Road Network 2024-2074
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be replaced.
However, quantifying and monitoring these spikes is essential for long-term financial
$683k
$0
$3.4m $3.1m $2.9m
$1.7m
$3.1m
$5.8m $5.7m
$3.2m
$4.0m
$2.7m
$0
$1.0m
$2.0m
$3.0m
$4.0m
$5.0m
$6.0m
$7.0m
Forecasted Capital Requirements
Asphalt Roads
Gravel Roads
Surface Treated Roads
Annual Requirement
Total
Municipality of Markstay-Warren
Asset Management Plan 2024
11
planning, including establishing dedicated reserves. Regular pavement condition
assessments and a robust risk framework will ensure that high-criticality assets receive
proper and timely lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year
Capital Requirements.
4.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition,
service life remaining, replacement costs, traffic data, and road class. Risk Rating
Criteria for road assets is provided in Appendix D. An overview of the methodology
applied for calculating and classifying asset risks is provided in Section 2.3.2.
The matrix stratifies assets based on their individual probability and consequence of
failure; each scored from 1 to 5. Their product generates a risk index ranging from 1-25.
Assets with the highest criticality and likelihood of failure receive a risk rating of 25;
those with lowest probability of failure and lowest criticality carry a risk rating of 1. As
new data and information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk and
criticality.
As detailed in Figure 23, most road assets hold a low-risk rating. The overall high-risk
rating is due to a concentration of assets in fair or worse conditions, high replacement
costs, and high traffic volumes.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$2,825,004
$11,078,641
$3,820,857
$5,266,634
$3,427,371
(11%)
(42%)
(14%)
(20%)
(13%)
Figure 23 Risk Matrix: Road Network
4.7 Levels of Service
The tables that follow summarize the Municipality's current levels of service with respect
to prescribed KPIs under Ontario Regulation 588/17, as well as any additional
performance measures that the Municipality selected for this AMP.
4.7.1
Community Levels of Service
Municipality of Markstay-Warren
Asset Management Plan 2024
12
Service
Attribute
Qualitative
Description
Current LOS (2023)
Scope
Description, which
may include maps,
of the road network
in the municipality
and its level of
connectivity
The municipalities road network contains a
total of 218 kilometers of roads composed of
earth roads, gravel roads, surface treated
roads, and asphalt roads. Roads include local
roads designed primarily for property access,
and collector roads designed to connect local
roads to arterial roads, which are roads that
handle high-volume traffic between major
destinations.
Quality
Description or
images that
illustrate the
different levels of
road class
pavement condition
The Road network has varied asset conditions
which are based on a road's needs study
conducted in 2022. The condition scale range is
0 (the lowest condition) to 100 (the highest
condition). Overall, the average condition of
the road network is 68. Condition is described
as follows:
- (80-100) Road surface is in good
condition or has been recently
constructed or rehabilitated. Renewal or
reconstruction is not required in the short
term.
- (60-79) Road surface exhibits moderate
deterioration. It is a candidate for
rehabilitation in the mid-term
- (40-59)Road surface exhibits more
significant deterioration. It is a candidate
for rehabilitation in the short-term.
- (20-39)Road is functional but performing
poorly.
- (0-19) Road is in very poor condition and
requires very immediate replacement
and/or rehabilitation
Table 11 O. Reg. 588/17 Community Levels of Service: Road Network
4.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Scope
Lane-km of arterial roads (MMS classes
1 and 2) per land area (km/km2)
Not Applicable
Municipality of Markstay-Warren
Asset Management Plan 2024
13
Lane-km of collector roads (MMS
classes 3 and 4) per land area
(km/km2)
0.02 km/km2
Lane-km of local roads (MMS classes 5
and 6) per land area (km/km2)4
0.84 km/km2
Quality
Average pavement condition index for
paved roads in the Municipality
Asphalt Roads: 60%
Surface Treated Roads: 42%
Average surface condition for unpaved
roads in the Municipality (e.g.
excellent, good, fair, poor)
Fair
Performance Target vs. Actual capital reinvestment rate
2.59% vs. 1.06%
Table 12 O. Reg. 588/17 Technical Levels of Service: Road Network
4 Includes both paved and gravel roads.
Municipality of Markstay-Warren
Asset Management Plan 2024
14
4.8 Recommendations
Asset Inventory
- Review the inventory of assets to ensure they reflect the best-available
information. In particular, the inventory of roadside appurtenances like sidewalks,
street signs, and streetlights should be reviewed and where assets and/or new
information is identified these should be reflected in the asset inventory.
Condition Assessment Strategies
- Consider implementing a standardized condition assessment program that
provides for a regular frequency of assessment, a standardized condition scale,
and data collection and verification requirements.
- If an updated condition assessment is conducted, ensure the information is also
updated in the asset registry
- Review condition information annually for accuracy and update as required (e.g.
upon completion of a road rehabilitation).
Lifecycle Management Strategies
- Work towards a more proactive roads lifecycle management approach and
consider the developed lifecycle strategy as a framework. Recognizing that the
available budget will often be less than the identified need, prioritize investment to
more critical roads and consider risk scores to do so.
Risk Management Strategies
- Implement risk-based decision-making as part of asset management planning and
budgeting processes. This should include the regular review of high-risk assets to
determine appropriate risk mitigation strategies.
- Review risk models, on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
- Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Town believes to provide
meaningful and reliable inputs into asset management planning.
Municipality of Markstay-Warren
Asset Management Plan 2024
15
5. Bridges & Culverts
The Municipality's transportation network also includes bridges and structural culverts,
with a current replacement cost of approximately $20 million.
5.1 Inventory & Valuation
Table 13 summarizes the quantity and current replacement cost of bridges and culverts.
The Municipality owns and manages 14 bridges and 19 structural culverts.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Bridges
14
Quantity
$16,374,293
CPI
Culverts
287
Length (m)
$4,124,350
CPI
TOTAL
$20,498,643
Table 13 Detailed Asset Inventory: Bridges & Culverts
Figure 24 Portfolio Valuation: Bridges & Culverts
5.2 Asset Condition
Figure 25 summarizes the replacement cost-weighted condition of the Municipality's
bridges and structural culverts. Based on the Municipality's most recent Ontario
Structures Inspection Manual (OSIM) assessments (completed in 2024), 64% of bridges
and culverts are in fair or better condition. Some elements or components of these
structures may be candidates for replacement or rehabilitation in the medium term and
should be monitored for further degradation in condition. At 36% of the total bridges
$4.1m
$16.4m
$5m
$10m
$15m
$20m
Culverts
Bridges
Replacement Cost by Segment
Municipality of Markstay-Warren
Asset Management Plan 2024
16
and culverts portfolio, assets in poor or worse condition may require replacement in the
immediate or short term.
Figure 25 Asset Condition: Bridges & Culverts Overall
As further detailed in Figure 26, based on in-field condition assessments, the majority of
bridges were found to be in fair or better condition, while most culverts were identified
as being in poor or worse condition. As bridges and structures reach a poor or worse
rating (i.e., a bridge condition index of less than 40), they are not necessarily unsafe for
regular use, individual circumstances must be considered. The OSIM ratings are
designed to identify repairs needed to elevate condition ratings.
Figure 26 Asset Condition: Bridges & Culverts by Segment
Very Poor,
$3,433,000
(17%)
Poor,
$3,982,000
(19%)
Fair, $8,291,000
(40%)
Good,
$4,288,000
(21%)
Very Good,
$506,000
(2%)
$131k
$375k
$734k
$3.6m
$100k
$8.2m
$2.4m
$1.6m
$788k
$2.6m
0%
20%
40%
60%
80%
100%
Culverts
Bridges
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Municipality of Markstay-Warren
Asset Management Plan 2024
17
5.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or design
life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an
asset during which it can continue to fulfil its intended purpose and provide value to
users, safely and efficiently. As assets age, their performance diminishes, often more
rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential replacement
spikes.
Figure 27 illustrates the average current age of each asset type and its estimated useful
life. Both values are weighted by the replacement cost of individual assets.
Figure 27 Estimated Useful Life vs. Asset Age: Bridges & Culverts
Age analysis reveals that both Bridges and Culverts are significantly beyond their
expected useful life. Bridges have a weighted average age of 123.9 years compared to
an EUL of 30 years, while Culverts average 103.3 years in age against a 20-year EUL.
OSIM assessments should continue to be used in conjunction with age and asset
criticality to prioritize capital and maintenance expenditures.
5.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that
municipal assets are performing as expected and meeting the needs of customers, it is
important to establish a lifecycle management strategy to proactively manage asset
deterioration.
123.9
103.3
30
20
0
20
40
60
80
100
120
140
Bridges
Culverts
Number of Years
Weighted Average Age
Weighted Average EUL
Municipality of Markstay-Warren
Asset Management Plan 2024
18
Bridge and structural culvert rehabilitation events are based on recommendations from
the 2024 OSIMs report. These recommended interventions have been modeled against
the applicable asset. Associated costs are specific to each bridge and event, however the
impacts are standardized and defined as follows:
Bridges & Structural Culverts
Event Name
Event Class
Event Impact
Repairs
Maintenance
None
Minor Rehabilitation
Rehabilitation
Adds 25% condition
Major Rehabilitation
Rehabilitation
Adds 50% Condition
In addition to the above noted interventions, the Town completes various inspection and
maintenance activities and holds replacement and rehabilitation considerations as
follows:
Activity Type
Description of Current Strategy
Maintenance &
Inspection
Bi-annual inspections per Ontario Structure Inspection Manual
(OSIM) by a professional engineer. The assessments provide a
Bridge Performance Index (BPI) and detailed ratings of the
severity and extent of deterioration.The last inspection was
completed in 2024.
Inspection reports recommend rehabilitation and maintenance
actions, with timelines to extend or maintain the asset's useful life.
Rehabilitation recommendations are reflected in the capital
forecasts of this Asset Managment Plan.
Rehabilitation /
Replacement
Priority for replacement is based on class of road, surface type,
population served, Traffic counts, alternate access routes, roadside
environment
The current budget for capital projects is $17,000. Investment
prioritization considers cost-benefit analysis of near failed
structures.
Table 14 Lifecycle Management Strategy: Bridges & Culverts
Municipality of Markstay-Warren
Asset Management Plan 2024
19
5.5 Forecasted Long-Term Replacement Needs
Figure 28 illustrates the cyclical short-, medium- and long-term infrastructure
rehabilitation and replacement requirements for the Municipality's bridges and culverts.
This analysis was run until 2059 to capture at least one iteration of replacement for the
longest-lived asset. The Municipality's average annual requirements (red dotted line) for
bridges and culverts is $693,000. Although actual spending may fluctuate substantially
from year to year, this figure is a useful benchmark value for annual capital expenditure
targets (or allocations to reserves) to ensure projects are not deferred and replacement
needs are met as they arise.
Capital requirements for bridges and culverts are projected to peak significantly in the
near term, with $6.6 million needed between 2025-2029 and $7.8 million between
2030-2034. These peaks are driven largely by replacement and rehabilitation activities
as recommended by the 2024 OSIMs report. A backlog of $2.9 million also exists at the
outset, reflecting immediate reinvestment needs. After 2034, capital needs decline
sharply, remaining below $2 million until rising again to $6.1 million in 2055-2059.
These projections and estimates are based on asset replacement costs, age analysis,
and condition data produced in the 2024 OSIMs report. They are designed to provide a
long-term, portfolio-level overview of capital needs and should be used to support
improved financial planning over several decades.
$693k
$2.9m
$6.6m
$7.8m
$1.8m
$1.8m
$3.3m
$734k
$6.1m
$0
$1m
$2m
$3m
$4m
$5m
$6m
$7m
$8m
$9m
Backlog
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
Forecasted Capital Requirements
Bridges
Culverts
Annual Requirement
Total
Municipality of Markstay-Warren
Asset Management Plan 2024
20
Figure 28 Forecasted Capital Replacement Needs: Bridges & Culverts 2024-2059
Often, the magnitude of capital investment needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be replaced.
However, quantifying and monitoring these spikes is essential for long-term financial
planning, including establishing dedicated reserves. OSIM condition assessments and a
robust risk framework will ensure that high-criticality assets receive proper and timely
lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year
Capital Requirements.
5.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition and
replacement costs. Risk Rating Criteria for bridge and structural culvert assets is
provided in Appendix D. An overview of the methodology applied for calculating and
classifying asset risks is provided in Section 2.3.2.
The matrix stratifies assets based on their individual probability and consequence of
failure; each scored from 1 to 5. Their product generates a risk index ranging from 1-25.
Assets with the highest criticality and likelihood of failure receive a risk rating of 25;
those with lowest probability of failure and lowest criticality carry a risk rating of 1. As
new data and information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk and
criticality.
As detailed in Figure 29 below, most bridge and structural culvert assets hold a high or
very high-risk rating. The overall high-risk rating is due to a concentration of assets in
fair or worse conditions, high replacement costs, and limited alternative route options.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$672,306
$2,555,368
$1,665,882
$8,765,587
$6,839,500
(3%)
(12%)
(8%)
(43%)
(33%)
Figure 29 Risk Matrix: Bridges & Culverts
5.7 Levels of Service
The tables that follow summarize the Municipality's current levels of service with respect
to prescribed KPIs under Ontario Regulation 588/17 as well as any additional
performance measures that the Municipality has selected for this AMP.
Municipality of Markstay-Warren
Asset Management Plan 2024
21
5.7.1
Community Levels of Service
Service
Attribute
Qualitative
Description
Current LOS (2024)
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. Like roads, bridges support
primarily personal vehicles, with occasional
use from pedestrians, bicyclists and larger
commercial vehicles.
Quality
Description or images of
the condition of bridges
& culverts and how this
would affect the use of
the bridges & culverts
See Appendix C for a map of the
municipality's bridge and culverts. The
condition of bridges and structural culverts
varies widely as summarized in Figures 26.
As of 2024, two bridges (Griffith Road and
Sutcliffe Road) in total held a loading or
dimensional restriction with a third bridge
expected to be included by late 2025. These
restrictions have impacts to users of these
bridges.
Table 15 O. Reg. 588/17 Community Levels of Service: Bridges & Culverts
5.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Scope
% of bridges in the Municipality with loading or
dimensional restrictions
6%5
Quality
Average bridge condition index value for bridges in
the Municipality
48%
Average bridge condition index value for structural
culverts in the Municipality
32%
Performance Target vs. Actual capital reinvestment rate
3.38% vs. 0.53%
Table 16 O. Reg. 588/17 Technical Levels of Service: Bridges & Culverts
5 There is currently one bridge with a loading restriction and another bridge that has been closed due to structural concerns. The
reported figure represents the two above noted bridges and is divided by the total number of structural bridges and culverts (33).
Please note that Ross Road Culvert is not included as a bridge with a loading or dimensional restriction in the 2024 LOS metric as it
was opened in 2024. As of June 2025, the Municipality noted it remained open, but it is expected to be closed in the very near
future.
Municipality of Markstay-Warren
Asset Management Plan 2024
22
5.8 Recommendations
Asset Inventory
- Review the inventory of assets to ensure they reflect the best-available
information. In particular, the in-service date of bridges and culverts was an
identified gap that the Municipality should seek to improve wherever possible.
Dates may be obtainable from historic building drawings, permits, or records
otherwise.
Condition Assessment Strategies
- Continue to align information collected through specialized studies, particularly the
bi-annual bridge studies to the assets in the database. When asset information,
such as condition changes due to capital investments, updated assessments, or
events otherwise, ensure the associated asset data and information is updated to
reflect.
Lifecycle Management Strategies
- Follow the recommendations from the bi-annual bridge studies to preserve asset
conditions as much as possible. Ensure that budget decisions consider the
identified investment requirements for both rehabilitations and replacements
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 (when applicable), on a regular basis and adjust according to
an evolving understanding of the probability and consequences of asset failure.
Levels of Service
- Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Town believes to provide
meaningful and reliable inputs into asset management planning.
Municipality of Markstay-Warren
Asset Management Plan 2024
23
6. Water Network
The City of Greater Sudbury is the operating authority for Markstay-Warren's drinking
water system. The water network provides for the safe production and distribution of
drinking water and includes assets such as:
- Water Tower
- Ground Water Wells
- Chlorination Building for Disinfection
- Water Distributions Mains
6.1 Inventory & Valuation
Table 17 and Figure 30 summarizes the quantity and/or current replacement cost of the
Municipality's various water network assets. As represented below, the largest
proportion of the water networks' total replacement cost is associated with water mains.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC Method
Valves
84
Quantity
$142,800
Cost per Unit
Water Mains
20,719
Length (m)
$29,609,847
Cost Per Unit 6
Water Tower
1
Quantity
$1,388,600
User-Defined
Water Treatment
2
Quantity
$5,460,600
User-Defined
TOTAL
$36,601,847
Table 17 Detailed Asset Inventory: Water Network
Figure 30 Portfolio Valuation: Water Network
6 Transmission mains are costed on a user-defined basis.
$143k
$1.4m
$5.5m
$29.6m
$10m
$20m
$30m
$40m
Valves
Water Tower
Water Treatment
Water Mains
Replacement Cost by Segment
Municipality of Markstay-Warren
Asset Management Plan 2024
24
6.2 Asset Condition
Figure 31 summarizes the replacement cost-weighted condition of the Municipality's
water network. Based on age-based condition data, 96% of assets are in fair or better
condition; the remaining 4% of assets are in poor to very poor condition. For water
network assets, conditions are determined based on the age of an asset and its
Estimated Useful Life (EUL). No assessed condition data was available for water network
assets.
Assets in poor or worse conditions may be candidates for replacement in the short term;
similarly, assets in fair condition may require rehabilitation or replacement in the
medium term and should be monitored for further degradation in condition. As
illustrated in Figure 31, most of the Municipality's water network assets are in fair or
better condition.
Figure 31 Asset Condition: Water Network Overall
As illustrated in Figure 32, based on age-based conditions, most of the Municipality's
water mains are in good condition. In contrast, the water tower is in very poor condition.
It is important to note, however, that onsite condition assessments of the water tower
may conclude that the asset is in better condition.
Figure 32 Asset Condition: Water Network by Segment
Very Poor,
$1,389,000
(4%)
Fair,
$9,549,000
(26%)
Good, $143,000
(<1%)
Very Good,
$25,521,000
(70%)
$25.5m
$143k
$5.5m
$4.1m
$1.4m
0%
20%
40%
60%
80%
100%
Water Treatment
Water Tower
Water Mains
Valves
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Municipality of Markstay-Warren
Asset Management Plan 2024
25
6.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or design
life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an
asset during which it can continue to fulfil its intended purpose and provide value to
users, safely and efficiently. As assets age, their performance diminishes, often more
rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential long-term
replacement spikes.
Figure 33 illustrates the average current age of each asset type and its estimated useful
life. Both values are weighted by the replacement cost of individual assets.
Figure 33 Estimated Useful Life vs. Asset Age: Water Network
Age analysis shows that most water system asset categories are within their expected
useful life. Valves and water mains have weighted average ages of 27 and 31.4 years,
respectively, against an EUL of 70 years, while water treatment assets average 17.9
years of age with an EUL of 31.8 years--indicating they are in the early to mid-stages of
their lifecycle. The exception is the water tower, which has is 47 years of age compared
to a 30-year EUL, suggesting it is well beyond its expected service life and may require
reinvestment attention. This is the primary reason for its very poor condition as reported
in Figure 32 above.
27
31.4
47
17.9
70
70
30
31.8
0
10
20
30
40
50
60
70
80
Valves
Water Mains
Water Tower
Water Treatment
Number of Years
Weighted Average Age
Weighted Average EUL
Municipality of Markstay-Warren
Asset Management Plan 2024
26
6.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that
municipal assets are performing as expected and meeting the needs of customers, it is
important to establish a lifecycle management strategy to proactively manage asset
deterioration.
The following table outlines the Municipality's current lifecycle management strategy for
their water network assets:
Activity Type
Description of Current Strategy
Maintenance
& Inspection
Condition assessments are primarily based on asset age, expected
useful life (EUL), and historical data from past inspections
Physical inspections are limited; most condition ratings for
underground infrastructure are inferred from age and deterioration
curves
Through a contract with the City of Sudbury, hydrants are regularly
pressure tested.
Rehabilitation/
Replacement
Recommended inspections of the water tower have been completed.
An inspection of the warren well is to be completed 2025, and is the
first inspection on record.
End of line hydrants are flushed regularly (i.e. weekly) while most
hydrants are checked as part of the annual program. Key points will
be exercised more regularly. Flushing may occur more frequently
based on complaints or water quality monitoring activities
Rehabilitation typically involves changing sections of the system
(i.e., partial replacement).
Replacement priorities are guided by break history, condition data,
and coordination with road and other utility projects.
Table 18 Lifecycle Management Strategy: Water Network
6.5 Forecasted Long-Term Replacement Needs
Figure 34 illustrates the cyclical short-, medium- and long-term infrastructure
rehabilitation and replacement requirements for the Municipality's water network. This
analysis was run until 2089 to capture at least one iteration of replacement for the
longest-lived asset in Citywide Assets, the Municipality's primary asset management
system and asset register. average annual requirements (red dotted line) of water
network assets total $647,000 ($3.2 million per 5-year bucket). Although actual
spending may fluctuate substantially from year to year, this figure is a useful benchmark
Municipality of Markstay-Warren
Asset Management Plan 2024
27
value for annual capital expenditure targets (or allocations to reserves) to ensure
projects are not deferred and replacement needs are met as they arise.
The chart illustrates substantial capital needs throughout the forecast period. It shows
two major peaks, with $5.0 million required in 2035-2039 for Water Treatment assets,
and a significant spike of $29.6 million in 2065-2069 for Water Mains. A smaller initial
backlog of $1.4 million is also identified, along with moderate needs in 2030-2034 ($4.1
million), and late-period investments of $1.7 million in 2085-2089. Capital demands are
minimal or nonexistent in many other periods. These projections are based on asset
replacement costs, age analysis, and condition data when available. They are designed
to provide a long-term, portfolio-level overview of capital needs and should be used to
support improved financial planning over several decades.
Figure 34 Forecasted Capital Replacement Needs: Water Network 2024-2089
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be replaced.
However, quantifying and monitoring these spikes is essential for long-term financial
planning, including establishing dedicated reserves. Regular condition assessments and
$647k
$1.4m
$4.1m$5.0m
$505k
$1.4m
$29.6m
$757k$1.7m
$0
$5m
$10m
$15m
$20m
$25m
$30m
$35m
Forecasted Capital Requirements
Valves
Water Mains
Water Tower
Water Treatment
Annual Requirement
Total
Municipality of Markstay-Warren
Asset Management Plan 2024
28
a robust risk framework will ensure that high-criticality assets receive proper and timely
lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year
Capital Requirements.
6.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition,
service life remaining, replacement costs. Risk Rating Criteria for water network assets
is provided in Appendix D. An overview of the methodology applied for calculating and
classifying asset risks is provided in Section 2.3.2.
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25.
Assets with the highest criticality and likelihood of failure receive a risk rating of 25;
those with lowest probability of failure and lowest criticality carry a risk rating of 1. As
new data and information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk and
criticality.
As detailed in Figure 35 below, most water network assets hold a very low-risk rating.
The overall high-risk rating is due to a concentration of assets in fair or worse
conditions, high replacement costs, and limited alternative route options.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$26,511,794
$1,340,073
$1,900,780
$5,460,600
$1,388,600
(72%)
(4%)
(5%)
(15%)
(4%)
Figure 35 Risk Matrix: Water Network
6.7 Levels of Service
The tables that follow summarize the Municipality's current levels of service with respect
to prescribed KPIs under Ontario Regulation 588/17 as well as any additional
performance measures that the Municipality has selected for this AMP.
6.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may include
maps of the user groups or
Most residential properties in the
Villages of Markstay and Warren are
Municipality of Markstay-Warren
Asset Management Plan 2024
29
Service
Attribute
Qualitative Description
Current LOS (2024)
areas of the municipality that
are connected to the municipal
water system
connected to the municipal water
system. Please refer to Appendix C for
a map of the water network.
Description, which may include
maps of the user groups or
areas of the municipality that
have fire flow
Fire flow is available to 100% of the
households in the villages of Markstay
and Warren that are connected to the
municipal water system. A map of the
water network is provided in Appendix C.
Reliability
Description of boil water
advisories and service
interruptions
No boil water advisories were issued in
2024 for Markstay or Warren Drinking
water systems.
Table 19 O. Reg. 588/17 Community Levels of Service: Water Network
6.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Scope
% of properties connected to the municipal water
system
31.5%
% of properties where fire flow is available
31.5%
Reliability
# of connection-days per year where a boil water
advisory notice is in place compared to the total
number of properties connected to the municipal
water system
0 vs. 1276
# of connection-days per year where water is not
available due to water main breaks compared to
the total number of properties connected to the
municipal water system
8 vs. 1276
Quality
Weighted Average Condition of Assets
77%
Sustainability
Target vs. Actual capital reinvestment rate
1.77% vs. 0%7
Average Risk Score
6.65
Table 20 O. Reg. 588/17 Technical Levels of Service: Water Network
7 As discussed in the financial strategy section, at the time of this reports publication the Town was unable to provide reliable
historical capital investment information for the water and sanitary networks. As a result, the financial strategy is premised on no
sustainable capital funding to these asset categories and consequently the actual reinvestment rate is 0%. When additional or new
capital investment records are available, they may indicate a higher rate of capital investment. If this is the case, the actual
reinvestment rate would increase for water and sanitary networks and the portfolio overall.
Municipality of Markstay-Warren
Asset Management Plan 2024
30
6.8 Recommendations
Asset Inventory
- Work to consolidate asset data from various studies and reports into the asset
inventory so that the listing is more comprehensive. This may include information
from Operational Plans, Master Plans, and inspection reports.
- Water Hydrant inventory data was not available to be reported and is not reflected
in this asset management plan. It is important to collect asset inventory
information for water hydrants and to update the asset management system
accordingly.
- The Chlorination Plant and reservoir are currently recorded as single assets,
however they each respectively contain numerous components each with varied
useful life, condition, and replacement cost information. To improve the Town's
understanding of what it owns, what condition it is in, and its projected investment
needs, consider componentizing these assets.
Condition Assessment Strategies
- Currently none of the water mains have condition information and age-based
condition is used. Consider the procurement of CCTV assessments for the mains,
beginning with the most problematic areas and expanding from there. Improved
information on asset conditions will provide strong insights into what to prioritize
for rehabilitation and/or replacement.
Lifecycle Management Strategies
- Consider rehabilitation strategies like pipe re-lining.
- Consolidate break history information into the asset management database so that
it can actively be considered alongside other asset data and information and
potentially included in the risk model.
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 (when applicable), on a regular basis and adjust as new asset
data becomes available (e.g. assessed condition, asset attributes) and as the
Town's understanding of risk evolves.
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 Town believes to provide
meaningful and reliable inputs into asset management planning.
Municipality of Markstay-Warren
Asset Management Plan 2024
31
7. Sanitary Network
The Markstay-Warren lagoon and associated treatment assets are owned by the
Municipality of Markstay-Warren and operated by the City of Greater Sudbury. All other
sanitary sewer network assets are both owned and managed by the Municipality of
Markstay-Warren.
7.1 Inventory & Valuation
Table 21 and Figure 36summarizes the quantity and/or current replacement cost of the
Municipality's various sanitary network assets. As represented below, the largest
proportion of replacement cost is represented by sanitary mains.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Manholes
39
Quantity
$124,800
Cost per Unit
Sanitary Lift Station
1
Quantity
$756,800
User-Defined
Sanitary Mains
5,349
Length (m)
$5,348,600
Cost per Unit
Wastewater Lagoon
1
Quantity
$2,764,830
CPI
TOTAL
$8,995,030
Table 21 Detailed Asset Inventory: Sanitary Sewer Network
Figure 36 Portfolio Valuation: Sanitary Sewer Network
$125k
$757k
$2.8m
$5.3m
$1m
$2m
$3m
$4m
$5m
$6m
Manholes
Sanitary Lift
Station
Wastewater
Lagoon
Sanitary
Mains
Replacement Cost by Segment
Municipality of Markstay-Warren
Asset Management Plan 2024
32
7.2 Asset Condition
Figure 37 summarizes the replacement cost-weighted condition of the Municipality's
sanitary sewer network. Based on a combination of field inspection data and age, 91%
of assets are in fair or better condition; the remaining 9% of assets are in poor to very
poor condition. For sanitary network assets, conditions are determined based on the age
of an asset and its Estimated Useful Life (EUL). Condition assessments were available for
all manholes and the wastewater lagoon. This condition data was projected from
inspection date to the data effective year. No condition data was available for sanitary
mains or lift stations.
Assets in poor or worse conditions may be candidates for replacement in the short term;
similarly, assets in fair condition may require rehabilitation or replacement in the
medium term and should be monitored for further degradation in condition. As
illustrated in Figure 37 almost all (90%) of the Municipality's sanitary network assets are
in fair or better condition.
Figure 37 Asset Condition: Sanitary Sewer Network Overall
As illustrated in Figure 38, based on condition assessments and age-based conditions,
the large majority of sanitary assets are in fair or better condition, with the small
exception of a small portion of manholes in poor or very poor condition.
Municipality of Markstay-Warren
Asset Management Plan 2024
33
Figure 38 Asset Condition: Sanitary Sewer Network by Segment
7.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or design
life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an
asset during which it can continue to fulfil its intended purpose and provide value to
users, safely and efficiently. As assets age, their performance diminishes, often more
rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential long-term
replacement spikes.
Figure 39 illustrates the average current age of each asset type and its estimated useful
life. Both values are weighted by the replacement cost of individual assets.
Municipality of Markstay-Warren
Asset Management Plan 2024
34
Figure 39 Estimated Useful Life vs. Asset Age: Sanitary Sewer Network
Age analysis shows that all sanitary asset categories are within their expected useful life
but are approaching the later stages of their lifecycle, especially for sanitary lift stations.
Manholes, sanitary mains, and the wastewater lagoon have weighted average ages
ranging from 43.9 to 49 years against an EUL of 70 years. Sanitary lift stations are the
most aged relative to their EUL, with an average age of 49 years compared to a 50-year
EUL, indicating they are nearing the end of their expected service life. However, staff
condition assessments for the sanitary lift station indicate that the asset is in fair
condition and based on this they are anticipated to remain in functional use beyond their
estimated useful life.
7.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that
municipal assets are performing as expected and meeting the needs of customers, it is
important to establish a lifecycle management strategy to proactively manage asset
deterioration.
Table 22 outlines the Municipality's current lifecycle management strategy for the
sanitary network.
Activity Type
Description of Current Strategy
Maintenance
& Inspection
The entire network is flushed annually. This program is performed
by the City of Greater Sudbury. Additional flushing may occur as
needed based on maintenance acitvities and/or complaints.
There have been no regular CCTV inspections of mains to date.
47.9
49
43.9
49
70
50
70
70
0
10
20
30
40
50
60
70
80
Manholes
Sanitary Lift
Station
Sanitary Mains
Wastewater
Lagoon
Number of Years
Weighted Average Age
Weighted Average EUL
Municipality of Markstay-Warren
Asset Management Plan 2024
35
Activity Type
Description of Current Strategy
Rehabilitation/
Replacement
Relining has occurred and is considered a viable rehabilitation
approach.
Prioritization and rehabilitation projects are prioritized based on:
- Blockage history
- Condition data
- Coordination with other infrastructure project
Table 22 Lifecycle Management Strategy: Sanitary Sewer Network
7.5 Forecasted Long-Term Replacement Needs
Figure 40 illustrates the cyclical short-, medium- and long-term infrastructure
rehabilitation and replacement requirements for the Municipality's sanitary sewer
network. This analysis was run until 2084 to capture at least one iteration of
replacement for the longest-lived asset. The Municipality's average annual requirements
(red dotted line) total $133,000 ($665,000 per 5-year bucket) for all assets in the
sanitary sewer network. Although actual spending may fluctuate substantially from year
to year, this figure is a useful benchmark value for annual capital expenditure targets
(or allocations to reserves) to ensure projects are not deferred and replacement needs
are met as they arise.
The chart illustrates substantial capital needs throughout the forecast period. It also
shows that capital requirements for sanitary assets are relatively low across most
periods, with two major investment spikes. Between 2045-2049 the total capital
investment requirement is $5.3M; this is due to capital investment needed for sanitary
mains and sanitary lift stations. Most sanitary mains were constructed in 1975 and are
therefore due for replacement within a short time period. The second largest spike
occurs in 2080-2084 at $3.5M with capital investment needed for the Wastewater
Lagoon and the sanitary mains. Other periods show minimal to no capital needs. These
projections are based on asset replacement costs, age analysis, and condition data when
available. They are designed to provide a long-term, portfolio-level overview of capital
needs and should be used to support improved financial planning over several decades.
Municipality of Markstay-Warren
Asset Management Plan 2024
36
Figure 40 Forecasted Capital Replacement Needs: Sanitary Sewer Network 2024-2084
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, further investigation into asset conditions
may indicate that the projected replacement date is earlier than required. Regardless,
quantifying and monitoring these spikes is essential for long-term financial and project
planning, including establishing dedicated reserves. Conducting and regularly updating
condition assessments and deploying a robust risk framework will ensure that high-
criticality assets receive proper and timely lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year
Capital Requirements.
7.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition,
service life remaining, replacement costs. Risk Rating Criteria for sanitary network
culvert assets is provided in Appendix D. An overview of the methodology applied for
calculating and classifying asset risks is provided in Section 2.3.2.
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25.
$133k
$6k
$10k
$5.3m
$6k
$102k
$123k
$3.5m
$0
$1m
$2m
$3m
$4m
$5m
$6m
Forecasted Capital Requirements
Manholes
Sanitary Lift Station
Sanitary Mains
Wastewater Lagoon
Annual Requirement
Total
Municipality of Markstay-Warren
Asset Management Plan 2024
37
Assets with the highest criticality and likelihood of failure receive a risk rating of 25;
those with lowest probability of failure and lowest criticality carry a risk rating of 1. As
new data and information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk and
criticality.
As detailed in Figure 41, most sanitary network assets hold a moderate-risk rating. The
rating is due to a concentration of assets in fair or worse conditions, high replacement
costs, and the operational impact of failure.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$997,300
$371,800
$6,558,830
$310,300
$756,800
(11%)
(4%)
(73%)
(3%)
(8%)
Figure 41 Risk Matrix: Sanitary Sewer Network
7.7 Levels of Service
The tables that follow summarize the Municipality's current levels of service with respect
to prescribed KPIs under Ontario Regulation 588/17 as well as any additional
performance measures that the Municipality has selected for this AMP.
7.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may
include maps, of the user
groups or areas of the
municipality that are
connected to the municipal
wastewater system
Please refer to Appendix C for a map of
the Sanitary Network. As the map shows,
most properties in the villages of Markstay
and Warren are connected to the sanitary
network.
Reliability
Description of how combined
sewers in the municipal
wastewater system are
designed with overflow
structures in place which allow
overflow during storm events
to prevent backups into
homes
The Municipality does not own any
combined sewers
Municipality of Markstay-Warren
Asset Management Plan 2024
38
Service
Attribute
Qualitative Description
Current LOS (2024)
Description of the frequency
and volume of overflows in
combined sewers in the
municipal wastewater system
that occur in habitable areas
or beaches
The Municipality does not own any
combined sewers
Description of how
stormwater can get into
sanitary sewers in the
municipal wastewater
system, causing sewage to
overflow into streets or
backup into homes
Stormwater can enter sanitary sewers due
to cracks in sanitary mains or through
indirect connections (e.g. weeping tiles). In
the case of heavy rainfall events, sanitary
sewers may experience a volume of water
and sewage that exceeds its designed
capacity. In some cases, this can cause
water and/or sewage to overflow backup
into homes. The disconnection of weeping
tiles from sanitary mains and the use of
sump pumps and pits directing storm
water to the storm drain system can help
to reduce the chance of this occurring.
Description of how sanitary
sewers in the municipal
wastewater system are
designed to be resilient to
stormwater infiltration
The municipality follows a series of design
standards that integrate servicing
requirements and land use considerations
when constructing or replacing sanitary
sewers. These standards have been
determined with consideration of the
minimization of sewage overflows and
backups.
Description of the effluent
that is discharged from
sewage treatment plants in
the municipal wastewater
system
Effluent refers to water pollution that is
discharged from a treated wastewater, and
may include suspended solids, total
phosphorous and biological oxygen
demand. The Environmental Compliance
Approval (ECA) identifies the effluent
criteria for municipal wastewater
treatment. Markstay-Warren's wastewater
is treated through a lagoon-based system
which is subject to semi-annual discharge
in the spring and fall.
Table 23 O. Reg. 588/17 Community Levels of Service: Sanitary Sewer Network
Municipality of Markstay-Warren
Asset Management Plan 2024
39
7.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Scope
% of properties connected to the municipal
wastewater system
15%
Reliability
# of events per year where combined sewer flow in
the municipal wastewater system exceeds system
capacity compared to the total number of properties
connected to the municipal wastewater system
0 vs. 191
# of connection-days per year having wastewater
backups compared to the total number of properties
connected to the municipal wastewater system
0 vs. 191
# of effluent violations per year due to wastewater
discharge compared to the total number of properties
connected to the municipal wastewater system
0
Quality
Weighted Average Condition of Assets
74%
Sustainability
Target vs. Current Reinvestment Rate
1.48% vs. 0%8
Average Risk Score
9.61
Table 24 O. Reg. 588/17 Technical Levels of Service: Sanitary Sewer Network
8 As discussed in the financial strategy section, at the time of this reports publication the Town was unable to provide reliable
historical capital investment information for the water and sanitary networks. As a result, the financial strategy is premised on no
sustainable capital funding to these asset categories and consequently the actual reinvestment rate is 0%. When additional or new
capital investment records are available, they may indicate a higher rate of capital investment. If this is the case, the actual
reinvestment rate would increase for water and sanitary networks and the portfolio overall.
Municipality of Markstay-Warren
Asset Management Plan 2024
40
7.8 Recommendations
Aset Inventory
- Work to consolidate asset data from various studies and reports into the asset
inventory so that the listing is more comprehensive. This may include information
from Operational Plans, Master Plans, and inspection reports.
- The lagoon is currently recorded as a single asset; however, it contains numerous
components each with varied useful life, condition, and replacement cost
information. To improve the Town's understanding of what it owns, what condition
it is in, and its projected investment needs, consider componentizing these assets.
Condition Assessment Strategies
- Currently none of the mains have condition information and age-based condition is
used. Consider the procurement of CCTV assessments for the mains, beginning
with the most problematic areas and expanding from there. Accurate asset
condition information will provide stronger insights into what to prioritize for
rehabilitation and/or replacement.
- Work towards obtaining more accurate condition information for treatment assets
- Where asset condition information is collected, ensure it is updated in the asset
management system.
Lifecycle Management Strategies
- Consider rehabilitation strategies like pipe re-lining.
- Consolidate blockage history information into the asset management database so
that it can actively be considered alongside other asset data and information
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 (when applicable), on a regular basis and adjust according to
an evolving understanding of risk and/or as the information available to evaluate
risk changes.
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 Town believes to provide
meaningful and reliable inputs into asset management planning.
Municipality of Markstay-Warren
Asset Management Plan 2024
41
8. Stormwater Network
The Municipality is responsible for owning and maintaining a stormwater network of
storm mains and catch basins.
8.1 Inventory & Valuation
Table 25 summarizes the quantity and current replacement cost of all stormwater
management assets available in the Municipality's asset register. As represented below,
the storm mains represent the largest proportion of the network's replacement cost.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Catch Basins
104
Quantity
$598,000
Cost per Unit
Storm Mains
3,942
Length (m)
$4,044,380
Cost per Unit
TOTAL
$4,642,380
Table 25 Detailed Asset Inventory: Stormwater Network
Figure 42 Portfolio Valuation: Stormwater Network
$598k
$4.0m
$1m
$2m
$3m
$4m
$5m
Catch Basins
Storm Mains
Replacement Cost by Segment
Municipality of Markstay-Warren
Asset Management Plan 2024
42
8.2 Asset Condition
Figure 43 summarizes the replacement cost-weighted condition of the Municipality's
stormwater management assets. Based on assessed conditions where available (most
storm culverts) and age data otherwise (mains and some storm culverts), approximately
75% of the stormwater assets are in fair or better condition while 25% of assets are in
poor to very poor condition. For stormwater network assets, conditions are determined
based on the age of an asset and its Estimated Useful Life (EUL). These assets may be
candidates for replacement in the short term; similarly, assets in fair condition may
require rehabilitation or replacement in the medium term and should be monitored for
further degradation in condition.
Figure 43 Asset Condition: Stormwater Network Overall
Figure 44 summarizes the condition of stormwater assets. The analysis illustrates that
most stormwater mains are in fair or better condition. However, 25% of mains, with a
current replacement cost of $1,000,000, are in poor or worse condition. It is important
to note that none of the stormwater mains have assessed conditions and instead rely on
age-based conditions. A camera inspection of the mains is likely to indicate a different
distribution than the one presented.
Very Poor,
$838,000
(18%)
Poor, $300,000
(6%)
Fair, $401,000
(9%)
Good,
$715,000
(15%)
Very Good,
$2,388,000
(51%)
Municipality of Markstay-Warren
Asset Management Plan 2024
43
Figure 44 Asset Condition: Stormwater Network by Segment
8.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or design
life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an
asset during which it can continue to fulfil its intended purpose and provide value to
users, safely and efficiently. As assets age, their performance diminishes, often more
rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential replacement
spikes.
Figure 45 illustrates the average current age of each asset type and its estimated useful
life. Both values are weighted by the replacement cost of individual assets.
$2.4m
$12k
$301k
$414k
$361k
$40k
$179k
$121k
$827k
$12k
0%
20%
40%
60%
80%
100%
Storm Mains
Catch Basins
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Municipality of Markstay-Warren
Asset Management Plan 2024
44
Figure 45 Estimated Useful Life vs. Asset Age: Stormwater Network
Age analysis indicates that both catch basins and storm mains are in the early to mid-
stages of their expected service life. Catch basins have a weighted average age of 34.3
years compared to 70-year EUL, while storm mains average 22.8 years with a slightly
longer EUL of 71.2 years. Age profiles and CCTV inspections will help to identify mains in
need of replacements and/or upgrades. Extensions to EULs for mains may also be
considered based on performance history to date.
8.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that
municipal assets are performing as expected and meeting the needs of customers, it is
important to establish a lifecycle management strategy to proactively manage asset
deterioration.
The following table outlines the Municipality's current lifecycle management strategy for
the stormwater network.
Activity Type
Description of Current Strategy
Maintenance &
Inspection
The entire network is flushed every 3 to 5 years. The last cleaning
was done 3 years ago. The Town plans to flush the Warren section
of their system in late spring 2025.
Physical inspections are limited to mains where there are known
issues. Most condition ratings for underground infrastructure are
inferred from age and deterioration curves.
34.3
22.8
70
71.2
0
10
20
30
40
50
60
70
80
Catch Basins
Storm Mains
Number of Years
Weighted Average Age
Weighted Average EUL
Municipality of Markstay-Warren
Asset Management Plan 2024
45
Activity Type
Description of Current Strategy
Rehabilitation
Rehabilitation activities are primarily triggered by localized
flooding, especially where roadways are undermined.
Rehabilitation would include exposing the asset and completed
small section replacements. This is rarely done however, and full
replacement is more common.
Replacement
Replacement decisions consider the extent and degree of localized
collapses, material type, upsizing requirements as well as
coordination with the road's replacement program
The annual capital allocation to stormwater is $20,000. Investment
may be higher in years where grant funding is accessible.
Table 26 Lifecycle Management Strategy: Stormwater Network
It is worth noting that the Municipality is considering increasing their inspections to
include ditch assessments to ensure comprehensive infrastructure management.
8.5 Forecasted Long-Term Replacement Needs
Figure 46 illustrates the cyclical short-, medium- and long-term infrastructure
replacement requirements for the Municipality's stormwater network assets. This
analysis was run until 2124 to capture at least one iteration of replacement for the
longest-lived asset. The Municipality's average annual requirements (red dotted line)
totals $68,000 ($340,000 per 5-year bucket) for all assets in the stormwater network.
There are four notable spikes in the table; the first in 2025-2029 ($838K total), and the
following in 2075-2079 ($827K total), 2085-2089 ($1.6M total), and 2090-2094 ($859K
total) respectively. In each instance, most of the cost is associated with storm mains.
Many of the storm mains have similar in-service dates (1975, 2014, 2020) and therefore
their projected replacement dates are clustered and resultantly the capital costs are
high. Catch basins capital costs contribute more gradually, with notable activity in 2065-
2069 ($253k) and 2070-2074 ($451k). Although actual spending may fluctuate
substantially from year to year, this figure is a useful benchmark value for annual capital
expenditure targets (or allocations to reserves) to ensure projects are not deferred and
replacement needs are met as they arise.
Municipality of Markstay-Warren
Asset Management Plan 2024
46
Figure 46 Forecasted Capital Replacement Needs Stormwater Network 2024-2124
These projections and estimates are based on asset replacement costs and age analysis.
They are designed to provide a long-term, portfolio-level overview of capital needs and
should be used to support improved financial planning over several decades.
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be replaced.
However, quantifying and monitoring these spikes is essential for long-term financial
planning, including establishing dedicated reserves. Forthcoming CCTV inspections may
reveal a higher backlog. The inspections may also help reduce long-term projections by
providing more accurate condition data for mains than age. In addition, a robust risk
framework will ensure that high-criticality assets receive proper and timely lifecycle
intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year
Capital Requirements.
$68k
$838k
$59k
$44k
$198k
$40k
$108k
$253k
$451k
$827k
$1.6m
$859k
$75k
$86k
$44k
$210k
$0
$200k
$400k
$600k
$800k
$1.0m
$1.2m
$1.4m
$1.6m
$1.8m
Forecasted Capital Requirements
Catch Basins
Storm Mains
Annual Requirement
Total
Municipality of Markstay-Warren
Asset Management Plan 2024
47
8.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition,
service life remaining, and replacement costs. Risk Rating Criteria for stormwater
network assets is provided in Appendix D. An overview of the methodology applied for
calculating and classifying asset risks is provided in Section 2.3.2.
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25.
Assets with the highest criticality and likelihood of failure receive a risk rating of 25;
those with lowest probability of failure and lowest criticality carry a risk rating of 1. As
new data and information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk and
criticality.
As detailed in Figure 47, most stormwater network assets hold a very low-risk rating.
The predominantly low risk rating is due to most assets having a fair or better condition
and therefore a low probability of failure and/or a relatively love replacement cost and
small pipe diameter resulting in a low consequence of failure.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$2,825,180
$378,400
$186,500
$411,600
$840,700
(61%)
(8%)
(4%)
(9%)
(18%)
Figure 47 Risk Matrix: Stormwater Network
8.7 Levels of Service
The tables that follow summarize the Municipality's current levels of service with respect
to prescribed KPIs under Ontario Regulation 588/17 as well as any additional
performance measures that the Municipality has selected for this AMP.
8.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may include maps of
the user groups or areas of the
Municipality that are protected from
flooding, including the extent of
protection provided by the municipal
storm water network
A map of the storm water
collection system is
provided in Appendix C. It is
assumed that areas with
stormwater collection are
protected from flooding.
Table 27 O. Reg. 588/17 Community Levels of Service: Stormwater Network
Municipality of Markstay-Warren
Asset Management Plan 2024
48
8.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Scope
% of properties in municipality
designed to be resilient to a 100-
year storm
TBD9
% of the municipal stormwater
management system designed to
be resilient to a 5-year storm
100%10
Sustainable
Target vs. Current Reinvestment
Rate
1.46% vs. 0.23%
Table 28 O. Reg. 588/17 Technical Levels of Service: Stormwater Network
9 The Municipality does not currently have data available to determine this technical metric. The rate of properties that are expected
to be resilient to a 100-year storm is expected to be low.
10 This is based on the observations of municipal staff.
Municipality of Markstay-Warren
Asset Management Plan 2024
49
8.8 Recommendations
Asset Inventory
- Currently only stormwater mains and culverts are recorded in the inventory. Other
stormwater infrastructure like storm manholes and outfalls may exist. Verify the
inventory and as needed add new assets where they are confirmed to exist.
- As attribute data is collected (i.e. inspections, etc.) work to update it in the asset
inventory. For storm culverts, consider collection of asset diameter and asset
material.
Condition Assessment Strategies
- Continue to complete and update condition assessments for stormwater culverts,
which last received an assessment in 2022.
- Currently, none of the stormwater mains have received condition assessments.
Consider the procurement of CCTV assessments for the mains, beginning with the
most problematic areas and expanding from there. Accurate asset condition
information will provide stronger insights into what to prioritize for rehabilitation
and/or replacement.
- Wherever condition information is collected (i.e. mains with issues as noted in
lifecycle strategies), update the asset registry with that information.
Lifecycle Management Strategies
- Continue the practice of regular storm main flushing, record where blockages are
identified, seek to determine the cause and as appropriate consider implementing
more frequent flushing and/or inspection in problematic areas.
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 (when applicable), on a regular basis and adjust according to
an evolving understanding of the probability and consequences of asset failure.
Levels of Service
- Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Town believes to provide
meaningful and reliable inputs into asset management planning.
Municipality of Markstay-Warren
Asset Management Plan 2024
50
Non-Core Assets
Buildings
Replacement
Cost
Average
Condition
Financial Capacity
$21.3 m
Very Poor
(10%)
Annual Requirement:
$713,000
Funding Available:
$56,000
Annual Deficit:
$657,000
Land Improvements
Replacement
Cost
Average
Condition
Financial Capacity
$1.7 m
Good
(62%)
Annual Requirement:
$83,000
Funding Available:
$7,000
Annual Deficit:
$76,000
Vehicles
Replacement
Cost
Average
Condition
Financial Capacity
$5.4 m
Poor
(36%)
Annual Requirement:
$394,000
Funding Available:
$31,000
Annual Deficit:
$363,000
Machinery & Equipment
Replacement
Cost
Average
Condition
Financial Capacity
$ 2.4 m
Very
Poor
(7%)
Annual Requirement:
$130,000
Funding Available:
$10,000
Annual Deficit:
$120,000
Municipality of Markstay-Warren
Asset Management Plan 2024
51
9. Buildings
The Municipality's buildings portfolio includes fire stations, various administrative and
public works facilities, as well as parks and recreation buildings such as the arena and
Senior's Clubs. The total current replacement of buildings is estimated at approximately
$21 million.
9.1 Inventory & Valuation
Table 29 summarizes the quantity and current replacement cost of all building assets
available in the Municipality's asset register. Currently, building assets are not
componentized. The quantity listed represents the number of assets. As represented
below, the largest proportion of replacement costs is with parks and recreation buildings.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Administration
1
Quantity
$1,096,800
User-Defined
Fire Department
4
Quantity
$5,150,000
User-Defined
Parks & Recreation
6
Quantity
$12,842,663
User-Defined
Public Works
5
Quantity
$2,220,000
User-Defined
TOTAL
$21,309,463
Table 29 Detailed Asset Inventory: Buildings
Figure 48 Portfolio Valuation: Buildings
$1.1m
$2.2m
$5.2m
$12.8m
$5m
$10m
$15m
Administration
Public Works
Fire
Parks and
Recreation
Replacement Cost by Segment
Municipality of Markstay-Warren
Asset Management Plan 2024
52
9.2 Asset Condition
Figure 49 summarizes the replacement cost-weighted condition of the Municipality's
buildings portfolio. Based on age-based data, 15% of buildings assets are in fair or
better condition; however, 85%, with a current replacement cost of more than $18
million are in poor or worse condition. For building assets, conditions are determined
based on the age of an asset and its Estimated Useful Life (EUL). It is important to note
that currently all of the building assets are represented as one single asset item.
However, a building contains numerous components (e.g. foundation, windows, roof,
interior finishes) which typically have a unique construction date and condition. Due to
the current data structures these components are not represented. Therefore, it is
expected that the overall condition of the buildings may be significantly different than
the age-based non-componentized data reflects. It is anticipated that componentized
building data would indicate a higher overall average condition than noted below.
Figure 49 Asset Condition: Buildings Overall
Figure 50 summarizes the age-based condition of buildings by each department. Most
building assets are in poor or very poor condition. However, in the absence of
componentization, this data has limited value. Componentization of assets and
integration of condition assessments will provide a more accurate and reliable estimation
of the condition of various facilities.
Very Poor,
$18,185,000
(85%)
Fair, $1,500,000
(7%)
Good, $1,624,000
(8%)
Municipality of Markstay-Warren
Asset Management Plan 2024
53
Figure 50 Asset Condition: Buildings by Segment
Building assets are unique in that they rarely require the need for replacement based
solely on condition. It is typical that, in addition to condition, other factors, such as
capacity, will impact the asset's ability to serve the purpose originally intended.
9.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or design
life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an
asset during which it can continue to fulfil its intended purpose and provide value to
users, safely and efficiently. As assets age, their performance diminishes, often more
rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential replacement
spikes.
Figure 51 illustrates the average current age of each asset type and its estimated useful
life. Both values are weighted by the replacement cost of individual assets.
$1.6m
$1.5m
$2.2m
$11.2m
$3.7m
$1.1m
0%
20%
40%
60%
80%
100%
Public Works
Parks and
Recreation
Fire
Administration
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Municipality of Markstay-Warren
Asset Management Plan 2024
54
Figure 51 Estimated Useful Life vs. Asset Age: Buildings
Age analysis indicates that most asset categories are nearing or exceeding their
expected useful life. Administration, Parks and Recreation, and Public Works assets all
have weighted average ages well above their typical service life--42, 46.8, and 49.2
years, respectively, compared to EULs of around 30 years--signaling a need for
reinvestment. Fire assets are an exception, with an average age of 29.8 years closely
aligned with their 30-year EUL, suggesting they are approaching renewal but not yet
overdue.
9.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that
municipal assets are performing as expected and meeting the needs of customers, it is
important to establish a lifecycle management strategy to proactively manage asset
deterioration.
Table 30 outlines the Municipality's current lifecycle management strategy for their
building assets.
42
29.8
46.8
49.2
30
30
29.9
30.6
0
10
20
30
40
50
60
Administration
Fire
Parks and
Recreation
Public Works
Number of Years
Weighted Average Age
Weighted Average EUL
Municipality of Markstay-Warren
Asset Management Plan 2024
55
Activity Type
Description of Current Strategy
Inspection
Buildings valued at over $500,000 are assessed every five years,
supported by internal annual safety walks. Detailed assessments are
conducted by external consultants, while health and safety checks are
performed by internal staff. At present, these assessments review
potential operating efficiencies, capital cost avoidance, service level
impacts, labor resource impacts and capital plan implications. The last
assessment was completed in 2024 by an architectural firm
Maintenance
Routine maintenance includes inspections and HVAC repairs.
Maintenance is triggered by inspections identifying structural, safety,
or accessibility issues. Inspections are conducted every five years, and
repairs are performed based on recommendations. The estimated
annual cost of maintenance activities is $65,000
Rehabilitation
Rehabilitation activities include roof replacements, HVAC system
upgrades, and refinishing of doors, windows, and building exteriors.
These actions are initiated based on inspection results and consultant
recommendations.
Replacement
Replacement is considered when an asset has deteriorated
significantly and when maintenance and rehabilitation are no longer
cost-effective. Priority is given to assets nearing end-of-life or
requiring frequent and costly repairs. Budget allocation is based on
condition assessments, with contingency needs funded through
general reserves.
Table 30 Lifecycle Management Strategy: Buildings
Forecasted Long-Term Replacement NeedsFigure 52 illustrates the cyclical short-,
medium- and long-term infrastructure replacement requirements for the Municipality's
buildings portfolio. This analysis was run until 2049 to capture at least one iteration of
replacement for the longest-lived asset in Citywide Assets, the Municipality's primary
asset management system and asset register. The Municipality's average annual
requirements (red dotted line) total $713,000 ($3.5 million per 5-year bucket) for all
buildings. Although actual spending may fluctuate substantially from year to year, this
figure is a useful benchmark value for annual capital expenditure targets (or allocations
to reserves) to ensure projects are not deferred and replacement needs are met as they
arise.
Figure 52 Forecasted Capital Replacement Needs Buildings 2024-2049
Forecasted capital requirements are dominated by a significant backlog of $18.2 million,
primarily associated with Parks and Recreation, Fire, and Public Works assets. Following
this, capital needs drop substantially, with only $30k projected between 2025-2029 and
no planned investments through 2039. Modest capital requirements reappear in 2040-
2044 ($1.7 million) and 2045-2049 ($1.4 million), again mostly tied to Parks and
Recreation assets.
Municipality of Markstay-Warren
Asset Management Plan 2024
56
These projections and estimates are based on current asset records, their replacement
costs, and age analysis. They are designed to provide a long-term, portfolio-level
overview of capital needs and should be used to support improved financial planning
over several decades.
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be replaced.
However, quantifying and monitoring these spikes is essential for long-term financial
planning, including establishing dedicated reserves. In addition, a robust risk framework
will ensure that high-criticality assets receive proper and timely lifecycle intervention,
including replacements. In the case of buildings and facilities, detailed componentization
is necessary to develop more reliable lifecycle forecasts that reflect the needs of
individual elements and components.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year
Capital Requirements.
9.5 Risk Analysis
The risk matrix below is generated using available asset data, including service life
remaining, replacement costs, and building department. Risk Rating Criteria for building
assets is provided in Appendix D. An overview of the methodology applied for calculating
and classifying asset risks is provided in Section 2.3.2
The matrix classifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25.
Assets with the highest criticality and likelihood of failure receive a risk rating of 25;
those with lowest probability of failure and lowest criticality carry a risk rating of 1. As
new data and information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk and
criticality.
As detailed in Figure 53, most building assets hold a high or very high-risk rating. The
overall high-risk rating is due to the poor condition of assets combined with their high
replacement cost.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$180,000
$134,063
$1,444,100
$1,675,000
$17,876,300
(<1%)
(<1%)
(7%)
(8%)
(84%)
Figure 53 Risk Matrix: Buildings
Municipality of Markstay-Warren
Asset Management Plan 2024
57
9.5.1
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service delivery
that the Municipality is currently facing:
Aging Infrastructure
Several key building assets, including firehalls and public works buildings,
are approaching the end of their useful life. These aging facilities face
increased risks of failure and rising maintenance costs. While some
rehabilitative actions are taken, the growing number of buildings nearing
replacement age indicates mounting pressure on capital planning and
facility performance.
Lifecycle Management Strategies
The current lifecycle management strategy for buildings remains largely
reactive. While inspections and maintenance are completed, and
rehabilitation activities such as roof and HVAC replacements are performed
as recommended, a significant number of buildings have already been
flagged for replacement within the next 10 years. This backlog is partly
attributed to earlier gaps in strategic lifecycle planning. Trigger points are
reviewed periodically to align with best practices, but the pace of
reinvestment may not be sufficient to mitigate future condition-related
risks.
Capital Funding Strategies
While operational needs are funded through condition-based budgeting,
major capital projects are currently dependent on external grant
opportunities. There is no dedicated funding stream set aside for building
maintenance, and the contingency budget is covered through general
reserves. This approach may limit the municipality's ability to proactively
address major building renewals when grant funding is unavailable.
9.6 Levels of Service
The tables that follow summarize the Municipality's current levels of service. There are
no prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the
KPIs below represent performance measures that the Municipality has selected.
Municipality of Markstay-Warren
Asset Management Plan 2024
58
9.6.1
Community Levels of Service
Service
Attribute
Qualitative
Description
Current LOS (2024)
Quality
Description of the
lifecycle
management
activities
conducted
Using age-based condition building assets range
in condition from 0 to 74% and are in average in
condition 10% (very poor). Parks and recreation
focused facility assets include the arena and
senior's club buildings. Administration buildings
consist of the Municipal Office, Fire buildings
include all Fire Stations and the OPP Building.
Public Works includes the two public works
garages in Warren and Markstay respectively.
Sustainability
There are long-
term plans in
place for the
renewal and
replacement of
assets.
Facility asset rehabilitation and replacement
activities typically include component
replacements such as roofs, windows, doors,
building exteriors and HVAC systems. Primary
considerations for investment are asset
functionality, cost of rehabilitation or replacement
compared with cost of maintenance, and
component criticality.
Table 31 Community Levels of Service: Buildings
9.6.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Quality
Weighted Average Condition of Assets
10%
Average Risk Score
19.56
Sustainability Target vs. Current v Capital Reinvestment
3.34% vs. 0.26%
Table 32 Technical Levels of Service: Buildings
Municipality of Markstay-Warren
Asset Management Plan 2024
59
9.7 Recommendations
Asset Inventory
- Review the inventory of assets to ensure they reflect the best-available
information.
Condition Assessment Strategies
- Continue to align information collected through specialized studies to the assets in
the database.
- Consider the procurement of Building Condition Assessments (BCA) to provide for
a better inventory of assets and more relevant information about associated
conditions and recommended interventions. If a BCA is procured, ensure that the
scope includes collection and/or provision of the following information for every
component: replacement cost, in-service date, estimated useful life, assessed
condition, quantity and associated unit of measure. Additional details such as
recommended interventions, description, location, and photo capturing should also
be considered for collection.
- When asset information such as condition changes due to capital investments or
events otherwise, ensure the associated asset data and information is updated to
reflect.
Lifecycle Management Strategies
- To ensure that larger capital investments are appropriately funded identify
significant building components (e.g. roof, HVAC, windows) and their approximate
replacement dates and plan for these future investment needs.
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 (when applicable), on a regular basis and adjust according to
an evolving understanding of the probability and consequences of asset failure.
Levels of Service
- Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Town believes to provide
meaningful and reliable inputs into asset management planning.
Municipality of Markstay-Warren
Asset Management Plan 2024
60
10. Land Improvements
The Municipality's land improvements portfolio includes fields and courts, outdoor, and
play structures. The total current replacement of land improvements is estimated at
approximately $1.8 million.
10.1 Inventory & Valuation
Table 33 and Figure 54 summarizes the quantity and/or current replacement cost of all
land improvements assets available in the Municipality's asset register. As represented
below the largest proportion of replacement cost is associated with fields and courts.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Fields & Courts
8
Quantity
$1,106,016
User-Defined
Outdoor Structures
5
Quantity
$147,627
CPI
Play Structures
14
Quantity
$529,595
CPI
TOTAL
$1,783,238
Table 33 Detailed Asset Inventory: Land Improvements
Figure 54 Portfolio Valuation: Land Improvements
$148k
$530k
$1.1m
$200k
$400k
$600k
$800k
$1m
$1m
Outdoor
Structures
Play
Structures
Fields &
Courts
Replacement Cost by Segment
Municipality of Markstay-Warren
Asset Management Plan 2024
61
10.2 Asset Condition
Figure 55 summarizes the replacement cost-weighted condition of the Municipality's land
improvement portfolio. Based condition assessment data, 95% of assets are in fair or
better condition, the remaining 5% are in very poor condition. These assets may be
candidates for replacement in the short term; similarly, assets in fair condition may
require rehabilitation or replacement in the medium term and should be monitored for
further degradation in condition.
Figure 55 Asset Condition: Land Improvements Overall
Figure 56 summarizes the condition of land improvements by segment. While outdoor
structures and play structure segments have some assets in very poor condition, most
assets across all segments are in fair or good condition.
Figure 56 Asset Condition: Land Improvements by Segment
Very Poor,
$95,000 (5%)
Fair,
$1,199,000
(67%)
Good, $489,000
(27%)
$376k
$113k
$93k
$1.1m
$60k
$35k
0%
20%
40%
60%
80%
100%
Play Structures
Outdoor
Structures
Fields & Courts
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Municipality of Markstay-Warren
Asset Management Plan 2024
62
10.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or design
life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an
asset during which it can continue to fulfil its intended purpose and provide value to
users, safely and efficiently. As assets age, their performance diminishes, often more
rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential replacement
spikes.
Figure 57 illustrates the average current age of each asset type and its estimated useful
life. Both values are weighted by the replacement cost of individual assets.
Figure 57 Estimated Useful Life vs. Asset Age: Land Improvements
Age analysis shows that Outdoor Structures are significantly beyond their expected
useful life, with a weighted average age of 43.6 years compared to a 20-year EUL. Fields
& Courts are slightly over their EUL at 24.6 years against an expected life of 23.5 years,
while Play Structures are still within their lifecycle, averaging 13.6 years out of a 20-
year EUL. Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that
municipal assets are performing as expected and meeting the needs of customers, it is
important to establish a lifecycle management strategy to proactively manage asset
deterioration.
24.6
43.6
13.6
23.5
20
20
0
5
10
15
20
25
30
35
40
45
50
Fields & Courts
Outdoor Structures
Play Structures
Number of Years
Weighted Average Age
Weighted Average EUL
Municipality of Markstay-Warren
Asset Management Plan 2024
63
10.4 Current Approach to Lifecycle Management
Table 34 outlines the Municipality's current lifecycle management strategy for land
improvement assets.
Activity Type
Description of Current Strategy
Inspections
Land improvements and parks are assessed annually in the
spring and inspected weekly during the operating season by
internal Parks and Recreation staff.
A basic condition scale of good, fair, and poor is used, though no
formal assessment policy is in place
Maintenance
Routine maintenance includes weekly or bi-weekly mowing,
cleaning, vegetation management, and refuse removal, as well
as quarterly minor repairs or repairs triggered by significant
safety issues. Maintenance actions are guided by weekly
inspections. The estimated annual cost is approximately $45,000
(including salaries).
Rehabilitation
No formal rehabilitation programs are in place for land
improvements. Most park components are manufacturer-specific,
and there is no routine application of restorative work.
Replacement
Replacement is considered when asset conditions deteriorate
significantly or when maintenance is no longer cost-effective.
Assets nearing end-of-life or requiring frequent/costly repairs are
prioritized. Funding is guided by condition assessments and
safety concerns. There is no dedicated contingency; unplanned
needs draw from general reserves
Table 34 Lifecycle Management Strategy: Land Improvements
10.5 Forecasted Long-Term Replacement Needs
Figure 58 illustrates the cyclical short-, medium- and long-term infrastructure
replacement requirements for the Municipality's land improvements portfolio. This
analysis was run until 2044 to capture at least one iteration of replacement for the
longest-lived asset in Citywide Assets, the Municipality's primary asset management
system and asset register. The Municipality's average annual requirements (red dotted
line) total $83,000 ($415,000 per 5-year bucket) for all land improvements. Although
actual spending may fluctuate substantially from year to year, this figure is a useful
benchmark value for annual capital expenditure targets (or allocations to reserves) to
ensure projects are not deferred and replacement needs are met as they arise.
Municipality of Markstay-Warren
Asset Management Plan 2024
64
Replacement needs are forecasted to rise significantly over the long term, with major
investments of $813k and $875k projected for 2035-2039 and 2040-2044, respectively.
These increases are primarily driven by Fields & Courts, with additional contributions
from Play Structures and Outdoor Structures. In contrast, near-term needs are minimal,
with only $95k forecasted for 2025-2029 and no identified backlog. These projections
and estimates are based on asset replacement costs and age analysis. They are
designed to provide a long-term, portfolio-level overview of capital needs and should be
used to support improved financial planning over several decades.
Figure 58 Forecasted Capital Replacement Needs: Land Improvements 2024-2044
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be replaced.
However, quantifying and monitoring these spikes is essential for long-term financial
planning, including establishing dedicated reserves. In addition, a robust risk framework
will ensure that high-criticality assets receive proper and timely lifecycle intervention,
including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year
Capital Requirements.
$83k
$95k
$813k
$875k
$0
$100k
$200k
$300k
$400k
$500k
$600k
$700k
$800k
$900k
$1m
Backlog
2025 - 2029
2030 - 2034
2035 - 2039
2040 - 2044
Forecasted Capital Requirements
Fields & Courts
Outdoor Structures
Play Structures
Annual Requirement
Total
Municipality of Markstay-Warren
Asset Management Plan 2024
65
10.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition,
service life remaining, and replacement costs. Risk Rating Criteria for land
improvements assets is provided in Appendix D. An overview of the methodology applied
for calculating and classifying asset risks is provided in Section 2.3.2
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25.
Assets with the highest criticality and likelihood of failure receive a risk rating of 25;
those with lowest probability of failure and lowest criticality carry a risk rating of 1. As
new data and information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk and
criticality.
As detailed in Figure 59, most land improvements assets hold a very low risk rating. The
overall high-risk rating is due to a concentration of assets in fair or better condition
combined with a low replacement cost and a low-risk asset categorization.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$902,269
$495,000
$385,969
-
-
(51%)
(28%)
(22%)
(0%)
(0%)
Figure 59 Risk Matrix: Land Improvements
10.6.1
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service delivery
that the Municipality is currently facing:
Lifecycle Management Strategies
The current lifecycle management strategy for land improvements is
largely reactive. While routine maintenance activities such as inspections,
vegetation control, and minor repairs are completed regularly, there are
currently no formal rehabilitation programs in place. Replacements are
typically initiated once conditions have significantly declined, and
maintenance is no longer cost-effective. As a result, long-term planning
for capital renewal remains limited. Staff continue to monitor asset
conditions and prioritize critical safety-related interventions as part of
ongoing service delivery efforts.
Municipality of Markstay-Warren
Asset Management Plan 2024
66
Capital Funding Strategies
Capital investment in land improvement assets is supported through
general reserves, as there is no dedicated contingency fund in place.
Larger projects often rely on external funding sources, and staff note that
while grant funding has supported new projects, reinvestment in existing
assets is becoming more difficult to maintain at the desired pace. These
challenges are not uncommon in smaller municipalities and highlight the
importance of a long-term funding strategy to sustain service levels and
minimize the risk of deferred maintenance.
10.7 Levels of Service
The tables that follow summarize the Municipality's current levels of service. There are
no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets,
therefore the KPIs below represent performance measures that the Municipality has
selected for this AMP.
10.7.1
Community Levels of Service
Service
Attribute
Qualitative
Description
Current LOS (2024)
Quality
Description of the
lifecycle
management
activities conducted
Land improvement assets are inspected
annually each spring and observed weekly in
the operating season by Municipal staff. For
most land improvement assets, rehabilitation
is not a viable solution due to their
manufacturer specific components. Instead,
replacement is considered based on the
condition and cost of repairs.
Sustainability
There are long-term
plans in place for
the renewal and
replacement of
assets.
Land improvement asset investment decisions
are predominantly based on asset conditions
and expected future utility alongside existing
rate of use. Replacement typically occurs
when asset conditions deteriorate significantly
or when maintenance is no longer cost-
effective.
Table 35 Community Levels of Service: Land Improvements
10.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Quality
Weighted Average Condition of Assets
62%
Average Risk Score
5.2
Municipality of Markstay-Warren
Asset Management Plan 2024
67
Service
Attribute
Technical Metric
Current LOS
(2024)
Sustainability Target vs. Current v Capital Reinvestment
4.64% vs. 0.36%
Table 36 Technical Levels of Service: Land Improvements
Municipality of Markstay-Warren
Asset Management Plan 2024
68
10.8 Recommendations
Asset Inventory
- Review the inventory of assets to ensure they reflect the best-available
information. It is recommended to conduct annual reviews with updates as
needed.
Condition Assessment Strategies
- Consider implementing a standardized condition assessment program that
provides for a regular frequency of assessment, a standardized condition scale,
and data collection and verification requirements.
- If an updated condition assessment is conducted, ensure the information is also
updated in the asset registry
- Review condition information annually for accuracy and update as required (e.g.
upon completion of a road rehabilitation).
Lifecycle Management Strategies
- For larger, more complex, and costly assets such as the splash pad and the
outdoor rink, work to understand what lifecycle cost are to be expected and add
these as events to the assets. This will improve the Town's understanding of the
total cost of ownership and improve the ability to plan for it.
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 (when applicable), on a regular basis and adjust according to
an evolving understanding of the probability and consequences of asset failure.
Levels of Service
- Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Town believes to provide
meaningful and reliable inputs into asset management planning.
Municipality of Markstay-Warren
Asset Management Plan 2024
69
11. Vehicles
The Municipality's vehicles portfolio includes 26 assets that support a variety of general
and essential services, including public works, the fire department, and recreation. The
total current replacement of vehicles is estimated at approximately $5 million.
11.1 Inventory & Valuation
Table 37 and Figure 60 summarizes the quantity and/or current replacement cost of all
vehicle assets available in the Municipality's asset register. The Public works department
accounts for the largest share of the vehicle's portfolio total replacement cost.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Fire
8
Quantity
$1,938,521
User-Defined
Parks and
Recreation
1
Quantity
$65,000
User-Defined
Public Works
17
Quantity
$3,464,772
User-Defined
TOTAL
$5,468,293
Table 37 Detailed Asset Inventory: Vehicles
Figure 60 Portfolio Valuation: Vehicles
$65k
$1.9m
$3.5m
$1m
$2m
$3m
$4m
Parks and Recreation
Fire
Public Works
Replacement Cost by Segment
Municipality of Markstay-Warren
Asset Management Plan 2024
70
11.2 Asset Condition
Figure 61 summarizes the replacement cost-weighted condition of the Municipality's
vehicles portfolio. Based condition assessment data, 49% of vehicles are in fair or better
condition, with the remaining 51% are in poor or worse condition. These assets may be
candidates for replacement in the short term; similarly, assets in fair condition may
require rehabilitation or replacement in the medium term and should be monitored for
further degradation in condition. Condition data was available for 100% of vehicles.
Figure 61 Asset Condition: Vehicles Overall
Figure 62 summarizes the condition of vehicles by each department. Most of parks and
recreation, and public works vehicles are in poor or worse condition.
Figure 62 Asset Condition: Vehicles by Segment
Very Poor,
$2,474,000
(45%)
Poor,
$316,000
(6%)
Fair,
$1,649,000
(30%)
Very Good,
$1,029,000
(19%)
$250k
$779k
$934k
$715k
$316k
$2.0m
$65k
$445k
0%
20%
40%
60%
80%
100%
Public Works
Parks and
Recreation
Fire
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Municipality of Markstay-Warren
Asset Management Plan 2024
71
11.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or design
life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an
asset during which it can continue to fulfil its intended purpose and provide value to
users, safely and efficiently. As assets age, their performance diminishes, often more
rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential replacement
spikes.
Figure 63 illustrates the average current age of each asset type and its estimated useful
life. Both values are weighted by the replacement cost of individual assets.
Figure 63 Estimated Useful Life vs. Asset Age: Vehicles
Age-based analysis shows that all asset categories are currently within their expected
useful life, except for Parks and Recreation. Fire and Public Works assets are relatively
new, with weighted average ages of 4.3 and 13.2 years, respectively, compared to EULs
of 17 and 17.2 years. In contrast, Parks and Recreation assets are significantly beyond
their expected lifespan, with an average age of 36 years against EUL of just 10 years.
11.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that
municipal assets are performing as expected and meeting the needs of customers, it is
4.3
36
13.2
17
10
17.2
0
5
10
15
20
25
30
35
40
Fire
Parks and Recreation
Public Works
Number of Years
Weighted Average Age
Weighted Average EUL
Municipality of Markstay-Warren
Asset Management Plan 2024
72
important to establish a lifecycle management strategy to proactively manage asset
deterioration.
Table 38 below outlines the Municipality's current lifecycle management strategy for
vehicle assets
Table 38: Vehicle Lifecycle Management Strategies
11.5 Forecasted Long-Term Replacement Needs
Figure 64 illustrates the cyclical short-, medium- and long-term infrastructure
replacement requirements for the Municipality's vehicles portfolio. This analysis was run
until 2049 to capture at least one iteration of replacement for the longest-lived asset in
Citywide Assets, the Municipality's primary asset management system and asset
register. The Municipality's average annual requirements (red dotted line) total
$394,000 ($1.9 million per 5-year bucket) for all vehicles. Although actual spending may
fluctuate substantially from year to year, this figure is a useful benchmark value for
annual capital expenditure targets (or allocations to reserves) to ensure projects are not
deferred and replacement needs are met as they arise.
Activity
Type
Description of Current Strategy
Inspection
Vehicles are assessed annually, typically during their annual service
inspections. Internal staff conduct assessments, supported by input
from mechanics. Attachments and accessories are not covered by
these inspections and are evaluated separately. A condition scale of
good, fair, and poor is used.
Maintenance
Routine maintenance includes daily inspections, tire rotation, oil
changes, and minor repairs. Detailed inspections are performed
quarterly. Maintenance is triggered by inspections identifying
mechanical or safety issues.
The estimated annual cost for maintenance is approximately $70,000.
Rehabilitation
Rebuilding specific vehicle components is undertaken as needed. These
activities are based on remaining useful life, vehicle condition, and
replacement feasibility.
Replacement
Replacement is considered when a vehicle is no longer cost-effective to
maintain, has significant downtime, or must be replaced for regulatory
reasons. Priority is given to assets nearing end-of-life or requiring frequen
costly repairs. Budgeting is informed by condition assessments, and a
general reserve is used for contingency, though reserve allocations have
recently been constrained.
Municipality of Markstay-Warren
Asset Management Plan 2024
73
Replacement needs are forecasted to increase steadily over time, peaking at $2.4 million
in 2030-2034, with continued high levels of investment ranging from $1.8 to $1.9
million in each subsequent five-year period through 2049. These capital needs are
largely driven by Public Works assets, followed by significant contributions from Fire and
Parks and Recreation. An initial backlog of $445k is also identified. These projections
and estimates are based on asset replacement costs and age analysis. They are
designed to provide a long-term, portfolio-level overview of capital needs and should be
used to support improved financial planning over several decades.
Figure 64 Forecasted Capital Replacement Needs: Vehicles 2024-2049
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be replaced.
However, quantifying and monitoring these spikes is essential for long-term financial
planning, including establishing dedicated reserves. In addition, a robust risk framework
will ensure that high-criticality assets receive proper and timely lifecycle intervention,
including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year
Capital Requirements.
$394k
$445k
$1.2m
$2.4m
$1.8m
$1.8m
$1.9m
$0
$500k
$1.0m
$1.5m
$2.0m
$2.5m
Backlog
2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049
Forecasted Capital Requirements
Fire
Parks and Recreation
Public Works
Annual Requirement
Total
Municipality of Markstay-Warren
Asset Management Plan 2024
74
11.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition,
service life remaining, replacement costs, and department or service area. Risk Rating
Criteria for vehicle assets is provided in Appendix D. An overview of the methodology
applied for calculating and classifying asset risks is provided in Section 2.3.2.
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25.
Assets with the highest criticality and likelihood of failure receive a risk rating of 25;
those with lowest probability of failure and lowest criticality carry a risk rating of 1. As
new data and information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk and
criticality.
As detailed in Figure 65, most vehicle assets hold a high -risk rating. This is most often
due to their condition as poor or worse creating a high probability of failure combined
with a high replacement cost, especially for fire related assets, and therefore a high
consequence of failure.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$1,203,759
$458,005
$377,071
$2,892,413
$537,045
(22%)
(8%)
(7%)
(53%)
(10%)
Figure 65 Risk Matrix: Vehicles
11.6.1
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service delivery
that the Municipality is currently facing:
Aging Infrastructure
A growing portion of the municipal fleet is reaching the end of its
expected service life. Reliability concerns have started to emerge,
with older vehicles requiring more frequent service and
experiencing increased downtime. This adds pressure to
operational planning and reinforces the need for ongoing renewal
efforts and replacement prioritization.
Municipality of Markstay-Warren
Asset Management Plan 2024
75
Lifecycle Management Strategies
Lifecycle management practices for vehicles are primarily
reactive. While daily and quarterly inspections are completed and
basic maintenance is performed regularly, there was a period
during which formal strategies were not applied, leading to a
concentration of aging vehicles requiring attention at the same
time. This backlog has placed additional pressure on planning,
service continuity, and replacement scheduling. Staff continue to
review maintenance triggers to align with evolving best practices,
but sustained reinvestment and structured lifecycle planning will
be important in managing long-term fleet performance.
11.7 Levels of Service
The tables that follow summarize the Municipality's current levels of service. There are
no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets,
therefore the KPIs below represent performance measures that the Municipality has
selected for this AMP.
11.7.1
Community Levels of Service
Service
Attribute
Qualitative
Description
Current LOS (2024)
Quality
Appropriate actions
and interventions
are taken to ensure
the regular safe use
of vehicles assets so
that they can
provide important
services.
Vehicles are assessed annually by staff with
support from a licensed mechanic. Assets
receive regular maintenance (i.e. tire rotation,
oil changes) throughout life. When appropriate
based on remaining useful life, condition, and
feasibility rebuilding specific vehicles
components may be undertaken. All these
activities are completed with the aim of cost-
effectively extending the asset lifespan and
condition while improving asset performance
and reliability.
Sustainability
There are long-term
plans in place for
the renewal and
replacement of
assets.
Replacement requirements and timelines are
informed by asset condition and age. It is
anticipated that longer-term financial planning
will improve through advancements in asset
management and that this will improve the
sustainability of asset replacement.
Table 39 Community Levels of Service: Vehicles
Municipality of Markstay-Warren
Asset Management Plan 2024
76
11.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Quality
Weighted Average Condition of Assets
36%
Average Risk Score
10.66
Sustainability Target vs. Current v Capital Reinvestment
7.21% vs. 0.56%
Table 40 Technical Levels of Service: Vehicles
Municipality of Markstay-Warren
Asset Management Plan 2024
77
11.8 Recommendations
Asset Inventory
- As regular practice, review asset inventory information for accuracy and
completeness and make updates as needed. Consider adding additional asset
attributes such as VIN to the asset inventory listing.
Condition Assessment Strategies
- The most recent condition assessments were completed in 2024 or 2025. On an
annual basis review and update condition assessments
- Review condition scales and criteria and formalize and document them so that
condition assessments are applied in a uniform and repeatable manner.
Lifecycle Management Strategies
- Review the information documented from the detailed inspections completed
quarterly. Ensure that records are retained, available, and considered when
completing condition assessments.
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 (when applicable), on a regular basis and adjust according to
an evolving understanding of the probability and consequences of asset failure.
Levels of Service
- Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Town believes to provide
meaningful and reliable inputs into asset management planning.
Municipality of Markstay-Warren
Asset Management Plan 2024
78
12. Machinery & Equipment
The Municipality's machinery and equipment portfolio includes a variety of assets that
support a combination of general and essential services. The total current replacement
of machinery and equipment assets is over $2 million. Most of the total replacement cost
is associated with miscellaneous equipment which includes generators, fire equipment,
and recreation equipment.
12.1 Inventory & Valuation
Table 41 and Figure 66 summarizes the quantity and/or current replacement cost of all
machinery & equipment assets available in the Municipality's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC Method
Communications
1
Quantity
$54,556
CPI
Heavy
Equipment
3
Quantity
$185,658
CPI
Library
1
Quantity
$16,905
CPI
Misc. Equipment
14
Quantity
$2,177,928
CPI
TOTAL
$2,435,047
Table 41 Detailed Asset Inventory: Machinery & Equipment
Figure 66 Portfolio Valuation: Machinery & Equipment
$17k
$55k
$186k
$2.2m
$500k
$1m
$2m
$2m
$3m
Library
Communication
Heavy Equipment
Misc Equipment
Replacement Cost by Segment
Municipality of Markstay-Warren
Asset Management Plan 2024
79
12.2 Asset Condition
Figure 67 summarizes the replacement cost-weighted condition of the Municipality's
machinery and equipment portfolio. Based on age data, 11% of assets are in fair or
better condition; the remaining 89% are in poor or worse condition. For water network
assets, conditions are determined based on the age of an asset and its Estimated Useful
Life (EUL). These assets may be candidates for replacement in the short term; similarly,
assets in fair condition may require rehabilitation or replacement in the medium term
and should be monitored for further degradation in condition.
Figure 67 Asset Condition: Machinery & Equipment Overall
Figure 68 summarizes the age-based condition of machinery & equipment by each
department. Most assets in communication, libraries, and misc. equipment are in poor or
worse condition.
Figure 68 Asset Condition: Machinery & Equipment by Segment
Very Poor,
$2,060,000
(85%)
Poor,
$119,000
(5%)
Fair, $200,000
(8%)
Good, $56,000
(2%)
$56k
$89k
$111k
$63k
$56k
$2.0m
$17k
$19k
$55k
0%
20%
40%
60%
80%
100%
Misc Equipment
Library
Heavy
Equipment
Communication
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Municipality of Markstay-Warren
Asset Management Plan 2024
80
12.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or design
life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an
asset during which it can continue to fulfil its intended purpose and provide value to
users, safely and efficiently. As assets age, their performance diminishes, often more
rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential replacement
spikes.
Figure 69 illustrates the average current age of each asset type and its estimated useful
life. Both values are weighted by the replacement cost of individual assets.
Figure 69 Estimated Useful Life vs. Asset Age: Machinery & Equipment
Age analysis shows that Communication and Miscellaneous Equipment assets have
exceeded their expected useful life, with average ages of 20 and 23.8 years,
respectively, compared to EULs of 20 and 20.3 years. Library assets have reached the
end of their service life at 15 years. Heavy Equipment remains within its lifecycle, with a
weighted average age of 14 years against a 20-year EUL.
12.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that
municipal assets are performing as expected and meeting the needs of customers, it is
20
14
15
23.8
10
20
15
20.3
0
5
10
15
20
25
Communication
Heavy Equipment
Library
Misc Equipment
Number of Years
Weighted Average Age
Weighted Average EUL
Municipality of Markstay-Warren
Asset Management Plan 2024
81
important to establish a lifecycle management strategy to proactively manage asset
deterioration.
The following table outlines the Municipality's current lifecycle management strategy.
Activity
Type
Description of Current Strategy
Inspection
Machinery and equipment assets valued over $5,000 are assessed
every two years in alignment with the asset management plan. The
last inspection was completed in 2022. Assessments are conducted
internally using a condition rating scale of good, fair, and poor.
Maintenance
Routine maintenance includes annual inspections by external
mechanics, oil changes, and minor repairs. Daily pre-use checks are
conducted by staff, with more in-depth inspections monthly. Minor
repairs are performed quarterly, and critical repairs are handled as
needed.
Maintenance is triggered by inspections or component wear.
Estimated annual cost: $50,000.
Rehabilitation
/Replacement
No formal rehabilitation program exists. Critical repairs and part
replacements are completed as issues are discovered, depending on
asset age and scope of required work.
Replacement is considered when an asset has significantly
deteriorated, is no longer cost-effective to maintain, or its downtime
impacts operations. Assets nearing end-of-life or requiring frequent
and costly repairs are prioritized. Budgeting considers component
wear, asset condition, and critical needs. No dedicated contingency
fund exists; reserves are used if needed.
Table 42 Lifecycle Management Strategy: Machinery & Equipment
12.5 Forecasted Long-Term Replacement Needs
Figure 70 illustrates the cyclical short-, medium- and long-term infrastructure
replacement requirements for the Municipality's machinery and equipment portfolio. This
analysis was run until 2049 to capture at least one iteration of replacement for the
longest-lived asset in Citywide Assets, the Municipality's primary asset management
system and asset register. The Municipality's average annual requirements (red dotted
line) total $130,000 ($650,000 million per 5-year bucket) for all machinery and
equipment. Although actual spending may fluctuate substantially from year to year, this
figure is a useful benchmark value for annual capital expenditure targets (or allocations
to reserves) to ensure projects are not deferred and replacement needs are met as they
arise.
Municipality of Markstay-Warren
Asset Management Plan 2024
82
Replacement needs are forecasted to peak in the long term, with $2.1 million projected
for 2045-2049, primarily driven by Miscellaneous Equipment. An additional $1.9 million
in backlog represents deferred reinvestment needs already due. Between 2025 and
2044, capital requirements remain relatively low, ranging from $111k to $267k, with
minor contributions from Communication, Heavy Equipment, and Library assets. These
projections and estimates are based on asset replacement costs and age analysis. They
are designed to provide a long-term, portfolio-level overview of capital needs and should
be used to support improved financial planning over several decades.
Figure 70 Forecasted Capital Replacement Needs: Machinery & Equipment 2024-2049
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be replaced.
However, quantifying and monitoring these spikes is essential for long-term financial
planning, including establishing dedicated reserves. In addition, a robust risk framework
will ensure that high-criticality assets receive proper and timely lifecycle intervention,
including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year
Capital Requirements.
$130k
$1.9m
$267k
$111k
$209k
$145k
$2.1m
$0
$500k
$1.0m
$1.5m
$2.0m
$2.5m
Backlog
2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049
Forecasted Capital Requirements
Communication
Heavy Equipment
Library
Misc Equipment
Annual Requirement
Total
Municipality of Markstay-Warren
Asset Management Plan 2024
83
12.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition,
service life remaining, and replacement costs. Risk Rating Criteria machinery &
equipment assets is provided in Appendix D. An overview of the methodology applied for
calculating and classifying asset risks is provided in Section 2.3.2.
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25.
Assets with the highest criticality and likelihood of failure receive a risk rating of 25;
those with lowest probability of failure and lowest criticality carry a risk rating of 1. As
new data and information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk and
criticality.
As detailed in Figure 29Figure 71, most machinery & equipment assets hold a very high-
risk rating. The overall high-risk rating is due to a concentration of assets in fair or
worse conditions, high replacement costs, and moderate impact due to asset
functionality.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$145,228
$606,773
-
$194,972
$1,488,074
(6%)
(25%)
(0%)
(8%)
(61%)
Figure 71 Risk Matrix: Machinery & Equipment
12.6.1
Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service delivery
that the Municipality is currently facing:
Aging Infrastructure
A cluster of machinery and equipment assets is approaching the end of
their expected service life. While some routine maintenance and repairs
continue, aging equipment becomes increasingly prone to failure, may
no longer perform efficiently, and requires greater effort and cost to
maintain in working conditions. In addition, newer units have shown
lower reliability than anticipated, adding further strain to replacement
planning and fleet dependability.
Municipality of Markstay-Warren
Asset Management Plan 2024
84
Lifecycle Management Strategies
The current lifecycle strategy is predominantly reactive. Although
equipment is inspected frequently and maintenance is triggered by wear
or safety needs, there is no structured rehabilitation program. Critical
repairs are performed as needed, and replacements are driven by failure
risk and operational impact. While daily and monthly inspections are
strong operational practices, the absence of a formal rehabilitation layer
limits the ability to extend asset life at a reduced cost.
12.7 Levels of Service
The tables that follow summarize the Municipality's current levels of service. There are
no prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the
KPIs below represent performance measures that the Municipality has selected for this
AMP.
12.7.1
Community Levels of Service
Service
Attribute
Qualitative
Description
Current LOS (2023)
Quality
Description of the
lifecycle
management
activities
conducted
Machinery and equipment assets are assessed
on a bi-annual basis; the last assessment was
completed in 2024. Routine maintenance is
conducted and completed by an external
mechanic as needed. Assets may be replaced if
the cost of repairs is significant, especially
relative to replacement cost.
Sustainability
There are long-
term plans in
place for the
renewal and
replacement of
assets.
Machinery and equipment assets are assessed
on a bi-annual basis; the last assessment was
completed in 2022. Routine maintenance is
conducted and completed by an external
mechanic as needed. Replacement is
considered when an asset has significantly
deteriorated, is no longer cost-effective to
maintain, or its downtime impacts operations
Table 43 Community Levels of Service: Machinery & Equipment
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12.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Quality
Weighted Average Condition of Assets
36%
Performance
Average Risk Score
16.48
Sustainability
Target vs. Current v Capital Reinvestment
5.36% vs. 0.42%
Table 44 Technical Levels of Service: Machinery & Equipment
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12.8 Recommendations
Asset Inventory
- As regular practice, review asset inventory information for accuracy and
completeness and make updates as needed. Consider adding additional asset
attributes such as asset location, make, and model to the asset inventory listing.
Condition Assessment Strategies
- Ensure that all completed condition assessments are recorded, accessible, and
uploaded to the asset inventory. If resources to complete assessments are limited,
begin with the highest valued and most operationally important assets first.
- Work towards documenting the standard condition assessment scale and
associated criteria so that assessments are completed in a consistent,
standardized, and referenceable manner. This is especially helpful in the event of
staff changes.
Lifecycle Management Strategies
- Ensure that all maintenance and critical repairs are documented on a log and that
such records are easily accessible.
- Work to identify larger rehabilitations required for fleet assets and update the
asset lifecycle strategy to include these events. Incorporate this information both
into work plans and budgets so that future activities are supported with financial
and human resources.
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 (when applicable), on a regular basis and adjust according to
an evolving understanding of the probability and consequences of asset failure.
Levels of Service
- Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Town believes to provide
meaningful and reliable inputs into asset management planning.
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Strategies
Growth
Financial Strategy
Recommendations
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13. Growth
The demand for infrastructure and services will change over time based on a
combination of internal and external factors. Understanding the key drivers of growth
and demand will allow the Municipality to plan for new infrastructure more effectively,
and the upgrade or disposal of existing infrastructure. Increases or decreases in demand
can affect what assets are needed and what level of service meets the needs of the
community.
13.1 Municipality of Markstay-Warren Official Plan
Markstay-Warren is committed to fostering community growth and enhancing the quality
of life for its residents while preserving its rural character. The municipality's
development strategy is centered around strengthening economic opportunities,
improving infrastructure, and ensuring sustainable land-use planning to accommodate
growth effectively.
A key focus of the municipality's growth plan is economic development. Markstay-
Warren aims to expand its economic capacity by supporting entrepreneurship,
agriculture, tourism, and small business growth. By encouraging local investment and
fostering a business-friendly environment, the municipality seeks to stimulate economic
activity while preserving its natural surroundings and rural charm. Economic
development initiatives are designed to attract new businesses, retain existing
enterprises, and create employment opportunities that contribute to the long-term
sustainability of the community.
Infrastructure improvements are another major priority for Markstay-Warren. The
municipality has plans to invest in upgrading road infrastructure, expanding high-speed
internet access, and enhancing recreational amenities. These improvements are
essential for supporting both current residents and future growth. By improving
connectivity and access to essential services, the municipality aims to make Markstay-
Warren an even more attractive place to live and work. Expanding infrastructure also
plays a vital role in facilitating economic growth, as improved transportation networks
and digital connectivity enable local businesses to thrive and attract new opportunities.
Planning and zoning efforts are crucial in ensuring that growth occurs in an organized
and sustainable manner. The Sudbury East Planning Board provides planning services to
Markstay-Warren, overseeing land use policies that align with the municipality's growth
objectives. This includes managing property zoning, guiding development initiatives, and
ensuring that new growth is in harmony with community values. Thoughtful urban and
rural planning help balance economic expansion with environmental preservation,
ensuring that Markstay-Warren continues to offer a high quality of life while
accommodating new residents and businesses in a structured way.
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13.2 Recent Growth Trends and Initiatives
Markstay-Warren has experienced steady population growth in recent years. According
to the 2021 Canadian Census, the municipality had a population of 2,708, reflecting a
2% increase from 2016. This trend is expected to continue, driven by various factors,
including affordable housing initiatives, commuter-friendly accessibility, and the appeal
of a rural lifestyle. The municipality has partnered with Habitat for Humanity to develop
a five-year affordable housing strategy, aiming to construct multiple homes and provide
accessible housing options. Its location between Sudbury and North Bay makes it
attractive to individuals who work in these urban centers but prefer the affordability and
tranquility of a rural setting. Furthermore, the community's scenic environment and
outdoor recreational opportunities appeal to both young families and retirees seeking a
balanced and peaceful way of life.
Infrastructure improvements are also playing a role in shaping the municipality's growth.
The planned extension of Highway 17's freeway alignment near Markstay is expected to
enhance regional connectivity and attract further residential and commercial
development. Additionally, the Sudbury East Planning Board continues to support zoning
and land-use planning to ensure that growth occurs in a structured and sustainable
manner while maintaining the municipality's rural character. These efforts are aimed at
creating a community that balances economic expansion with environmental
preservation and quality of life improvements.
13.3 Impact of Growth on Lifecycle Activities
As Markstay-Warren continues to grow, the municipality must manage its infrastructure
and services to meet increasing demand. New residential and commercial developments
will require the expansion of essential services such as roads, water systems, and
community facilities. As these assets are introduced, they must be incorporated into the
municipality's Asset Management Plan (AMP) to ensure service levels remain consistent.
Financial planning will be a critical component of managing growth-related
infrastructure. While new developments will contribute to the municipality's tax base,
careful assessment of the lifecycle costs of new assets is necessary to maintain long-
term sustainability. Expanding infrastructure requires not only initial capital investment
but also ongoing maintenance and eventual replacement. Ensuring that financial
strategies align with growth projections will be essential for sustaining services over
time.
In addition to infrastructure and financial considerations, growth must be managed
responsibly to maintain Markstay-Warren's rural charm and natural environment. The
municipality's Economic Development Strategic Plan highlights the importance of
balanced development, ensuring that economic expansion does not come at the expense
of environmental and community well-being. The municipality must also continue to
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promote a diverse range of housing options to accommodate the evolving demographics,
including young families and seniors who may have specific housing needs.
By integrating growth projections, infrastructure planning, and financial strategies,
Markstay-Warren can ensure that it develops sustainably. Thoughtful planning will allow
the municipality to maintain its high quality of life, attract new residents and businesses,
and ensure that infrastructure and services evolve in line with the community's changing
needs.
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14. Financial Strategy
For an asset management plan to be effective and meaningful, it must be integrated
with financial planning and long-term budgeting. The development of a comprehensive
financial plan will allow the Municipality of Markstay-Warren to identify the financial
resources required for sustainable asset management based on existing asset
inventories, desired levels of service, and projected growth requirements.
This report develops such a financial plan by presenting several scenarios for
consideration and culminating with final recommendations. As outlined below, the
scenarios presented model different combinations of the following components:
1. The financial requirements for:
a. Existing assets
b. Existing service levels
c. Requirements of contemplated changes in service levels (none identified for
this plan)
d. Requirements of anticipated growth (none identified for this plan)
2. Use of traditional sources of municipal funds:
a. Tax levies
b. User fees
c. Debt
d. Development charges
3. Use of non-traditional sources of municipal funds:
a. Reallocated budgets
b. Partnerships
c. Procurement methods
4. Use of Senior Government Funds:
a. Canada Community-Building Fund (CCBF)
b. Annual grants
Note: Periodic grants are normally not included due to Provincial requirements for firm
commitments. However, if moving a specific project forward is wholly dependent on
receiving a one-time grant, the replacement cost included in the financial strategy is the
net of such grant being received.
If the financial plan component results in a funding shortfall, the Province requires the
inclusion of a specific plan as to how the impact of the shortfall will be managed. In
determining the legitimacy of a funding shortfall, the Province may evaluate a
Municipality's approach to the following:
1. To reduce financial requirements, consideration has been given to revising service
levels downward.
2. All asset management and financial strategies have been considered. For example:
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a. If a zero-debt policy is in place, is it warranted? If not the use of debt should
be considered.
b. Do user fees reflect the cost of the applicable service? If not, increased user
fees should be considered.
14.1 Annual Requirements & Capital Funding
14.1.1
Annual Requirements
The annual requirements represent the amount the Municipality should allocate annually
to each asset category to meet replacement needs as they arise, prevent infrastructure
backlogs and achieve long-term sustainability. In total, the Municipality must allocate
approximately $3.5 million annually to address capital requirements for the assets
included in this AMP.
Figure 72 Annual Capital Funding Requirements by Asset Category
For most asset categories the annual requirement has been calculated based on a
"replacement only" scenario, in which capital costs are only incurred at the construction
and replacement of each asset.
However, for the Road Network and bridges and culverts lifecycle management
strategies have been developed to identify capital costs that are realized through
$68k
$83k
$130k
$133k
$394k
$647k
$683k
$693k
$713k
$200k
$400k
$600k
$800k
Stormwater Network
Land Improvements
Machinery & Equipment
Sanitary Network
Vehicles
Water Network
Road Network
Bridges & Culverts
Buildings
Average Annual Capital Requirements by Category
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strategic rehabilitation and renewal of the Municipality's roads. The development of
these strategies allows for a comparison of potential cost avoidance if the strategies
were to be implemented. The following table compares two scenarios for the Road
Network and Sanitary Sewer Network:
1. Replacement Only Scenario: Based on the assumption that assets deteriorate
and - without regularly scheduled maintenance and rehabilitation - are replaced
at the end of their service life.
2. Lifecycle Strategy Scenario: Based on the assumption that lifecycle activities
are performed at strategic intervals to extend the service life of assets until
replacement is required.
Asset Category
Annual
Requirements
(Replacement Only)
Annual
Requirements
(Lifecycle
Strategy)
Difference
Road Network
$927,000
$683,000
$244,00
Bridges &
Structural Culverts
$752,000
$693,000
$59,000
Table 45 Lifecycle Strategies Annual Savings
The implementation of a proactive lifecycle strategy for roads leads to a potential annual
cost avoidance of $244,210 for the Road Network and $58,686 for the bridges and
structural culverts. This represents an overall reduction of the annual requirements for
each category by 26% and 8% respectively. As the lifecycle strategy scenario represents
the lowest cost option available to the Municipality, we have used these annual
requirements in the development of the financial strategy.
14.1.2
Annual Funding Available: Tax Funded Assets Only
Based on a historical analysis of sustainable capital funding sources, the Municipality is
committing approximately $503,000 towards capital projects per year. Given the annual
capital requirement of $2,764,000 million, there is currently a funding gap of
$2,261,000 annually.
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Figure 73 Annual Requirements vs. Capital Funding Available
14.2 Funding Objective
We have developed scenarios that would enable Markstay-Warren to achieve full funding
within 15 and 20 years for the following assets:
1. Tax Funded Assets: Road Network, Stormwater Network, Bridges & Culverts,
Buildings, Machinery & Equipment, Land Improvements, Vehicles
2. Rate-Funded Assets: Water Network, Sanitary Network
For each scenario developed we have included strategies, where applicable, regarding
the use of cost containment and funding opportunities.
$11k
$7k
$10k
$31k
$280k
$109k
$56k
$68k
$83k
$130k
$133k
$394k
$647k
$683k
$693k
$713k
$200k
$400k
$600k
$800k
Stormwater Network
Land Improvements
Machinery & Equipment
Sanitary Network
Vehicles
Water Network
Road Network
Bridges & Culverts
Buildings
Average Annual Capital Requirements vs. Actual Capital
Reinvestment by Category
Average Annual Requirements
Actual Reinvestment Rate
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14.3 Financial Profile: Tax Funded Assets
14.3.1
Current Funding Position
The following tables show, by asset category, Markstay-Warren's average annual asset
investment requirements, current funding positions, and funding increases required to
achieve full funding on assets funded by taxes.
Asset Category
Avg.
Annual
Require-
ment
Annual Funding Available
Annual
Deficit
Taxes
CCBF
OCIF
Total
Available
Road Network
683,000
53,521
171,515 55,000
280,036
402,964
Stormwater Network
68,000
5,328
5,000
10,795
57,205
Bridges & Culverts
693,000
53,521
56,000
109,242
583,758
Buildings
713,000
55,871
55,871
657,129
Machinery & Equipment 130,000
10,187
10,187
119,813
Land Improvements
83,000
6,504
6,504
76,496
Vehicles
394,000
30,874
30,874
363,126
Total
2,764,000
215,806 171,515 116,188 503,509
2,260,491
Table 46 Annual Available Funding for Tax Funded Assets
The average annual investment requirement for the above categories is $2.76 million.
Annual revenue currently allocated to these assets for capital purposes is $503,000
leaving an annual deficit of $2.26 million. Put differently, these infrastructure categories
are currently funded at 18.2% of their long-term requirements.
14.3.2 Full Funding Requirements
In 2024, the Municipality of Markstay-Warren had budgeted annual tax revenues of
approximately $4,316,000. As illustrated in the following table, without consideration of
any other sources of revenue or cost containment strategies, full funding would require
the following tax change over time:
Asset Category
Tax Change Required for Full Funding
Road Network
9.3%
Stormwater Network
1.3%
Bridges & Culverts
13.5%
Buildings
15.2%
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Asset Category
Tax Change Required for Full Funding
Machinery & Equipment
2.8%
Land Improvements
1.8%
Vehicles
8.4%
Total
52.3%
Table 47 Tax Increase Requirements for Full Funding
The following changes in costs and/or revenues over the next number of years should
also be considered in the financial strategy:
a) Assuming no additional debt is incurred, Markstay-Warren's debt payments for
these asset categories will be decreasing progressively over the next 5, 10, 15 and
20 years.
Our scenario modeling includes capturing the above changes and allocating them to the
infrastructure deficit outlined above. The table below outlines this concept and presents
several options:
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
2,260,491
2,260,491
2,260,491
2,260,491
Change in Debt Costs
-40,285
-222,901
-350,799
-398,624
Resulting
Infrastructure Deficit:
2,220,206
2,037,590
1,909,692
1,861,867
Tax Increase Required
51.4%
47.2%
44.2%
43.1%
Annually:
8.7%
4.0%
2.5%
1.9%
Table 48 Tax Increase Options 5-20 Years
14.3.3
Financial Strategy Recommendations
Considering all the above information, we recommend the 15-year option. This involves
full funding being achieved over 15 years by:
a) increasing tax revenues by 2.5% each year for the next 15 years solely for the
purpose of phasing in full funding to the asset categories covered in this section of
the AMP.
b) allocating the current CCBF and OCIF revenue as outlined previously.
c) increasing existing and future infrastructure budgets by the applicable inflation
index on an annual basis in addition to the deficit phase-in.
Notes:
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1. As in the past, periodic senior government infrastructure funding will most likely
be available during the phase-in period. By Provincial AMP rules, this periodic
funding cannot be incorporated into an AMP unless there are firm commitments in
place. We have included OCIF formula-based funding, if applicable, since this
funding is a multi-year commitment11.
2. We realize that raising tax revenues by the amounts recommended above for
infrastructure purposes will be very difficult to do. However, considering a longer
phase-in window may have even greater consequences in terms of infrastructure
failure.
Although this option achieves full funding on an annual basis in 15 years and provides
financial sustainability over the period modeled, the recommendations do require
prioritizing capital projects to fit the resulting annual funding available. Current data
shows a significant pent-up investment demand, most of which is attributed to buildings
($18.2M) with the balance related to Bridges and Culverts ($2.9M), machinery and
equipment ($1.9M) and vehicles ($445,000).
Prioritizing future projects would benefit from the replacement of age-based condition
data with assessed data of sanitary, water, and stormwater mains. Building assets,
which are not currently componentized, would benefit from a componentized asset
inventory and condition information. Although our recommendations include no further
use of debt, the results of the condition-based analysis may be required otherwise.
14.4 Financial Profile: Rate Funded Assets
14.4.1
Current Funding Position
The following tables show, by asset category, Markstay-Warren's average annual asset
investment requirements, current funding positions, and funding increases required to
achieve full funding on assets funded by rates.
The water network analysis reflects average annual requirements and annual funding
available based on assets located in Markstay and Warren respectively. This distinction
reflects the Town's separate billing systems for each respective geographic area.
At this time of this report's publication historic capital investment funding and/or capital
allocations for the water and sanitary networks were unavailable. Considering this
limitation, the financial analysis for rate funded assets is based on no sustainable capital
funding for water and sewer network assets. Therefore, the average annual requirement
is equal to the annual deficit. Table 49 below summarizes these values.
11 The Municipality should take advantage of all available grant funding programs and transfers from other levels of government.
While OCIF has historically been considered a sustainable source of funding, the program is currently undergoing review by the
provincial government. Depending on the outcome of this review, there may be changes that impact its availability.
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Asset Category
Avg. Annual
Requirment and Deficit
Warren Water Network
$280,712
Markstay Water Network
$365,905
Sanitary Network
$133,000
Total
$779,000
Table 49 Annual Available Funding for Rate Funded Assets
14.4.2
Full Funding Requirements
The revenues collected in 2023 for water in Warren and Markstay are $377,000 and
$346,000 respectively. The 2024 budget revenues for the sanitary sewer network are
$723,000. As illustrated in Table 50 below, without consideration of any other sources of
revenue, full funding would require the following changes over time:
Asset Category
Rate Change Required
for Full Funding
Warren Water Network
74.4%
Markstay Water
Network
105.8%
Sanitary Sewer
Network
18.4%%
Table 50 Rate Increase Requirements for Full Funding
In the following tables, we have expanded the above scenario to present multiple
options. Decreases in debt payments are reflected in the Warren Water Network. There
are no debts associated with Markstay Water network or Sanitary sewer network assets.
Due to the significant increases required, we have provided phase-in options for up to
20 years:
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Warren Water Network
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit Warren
$280,712
$280,712
$280,712
$280,712
Less: decrease in debt
payments
-17,147
-17,147
-17,147
Resulting Infrastructure
Deficit
$280,712
$263,565
$263,565
$263,565
Rate Increase Required
74.4%
69.8%
69.8%
69.8%
Annually
11.8%
5.5%
3.6%
2.7%
Table 51 Warrant Water Rate Increase Options 5-20 Years
Markstay Water Network
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
Markstay
$365,905
$365,905
$365,905
$365,905
Rate Increase Required
105.8%
105.8%
105.8%
105.8%
Annually:
14.6%
7.1%
4.7%
3.5%
Table 52: Markstay Water Rate Increase Options 5-20 Years
Sanitary Sewer Network
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
$133,000
$133,000
$133,000
$133,000
Rate Increase Required
18.4%
18.4%
18.4%
18.4%
Annually:
6.8%
3.4%
2.2%
1.7%
Table 53 Sanitary Rate Increase Options 5-20 Years
14.4.3
Financial Strategy Recommendations
Considering all of the above information, we recommend the 20-year option for all water
network assets and the 15-year option for the sanitary sewer network. This involves full
funding being achieved over 15 and 20 years by:
a) Increasing rates by 2.7 % and 3.5% for the Warren and Markstay Water Networks
respectively and doing so each year for the next 20 years. Increasing rates by
2.2% each year for the next 15 years for sanitary sewer network. These funding
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changes are solely for the purpose of phasing in full funding to the asset
categories covered in this section of the AMP.
b) increasing existing and future infrastructure budgets by the applicable inflation
index on an annual basis in addition to the deficit phase-in.
Notes:
1. As in the past, periodic senior government infrastructure funding will most likely
be available during the phase-in period. This periodic funding should not be
incorporated into an AMP unless there are firm commitments in place.
2. We realize that raising rate revenues for infrastructure purposes will be very
difficult to do. However, considering a longer phase-in window may have even
greater consequences in terms of infrastructure failure.
3. Any increase in rates required for operations would be in addition to the above
recommendations.
Although this option achieves full funding on an annual basis in 15 and 20 years and
provides financial sustainability over the period modeled, the recommendations do
require prioritizing capital projects to fit the resulting annual funding available. Current
data shows a pent-up investment demand of $1.4 million for the Water Network and
$123 thousand for the Sanitary Sewer Network.
Prioritizing future projects will require the current data to be replaced by condition-based
data. Although our recommendations include no further use of debt, the results of the
condition-based analysis may require otherwise.
14.5 Use of Debt
Debt can be strategically utilized as a funding source within the long-term financial plan.
The benefits of leveraging debt for infrastructure planning include:
a) the ability to stabilize tax & user rates when dealing with variable and sometimes
uncontrollable factors
b) equitable distribution of the cost/benefits of infrastructure over its useful life
c) a secure source of funding
d) flexibility in cash flow management
The following table outlines the forthcoming debt principle and interest payments that
Markstay-Warren is responsible for. This is based on debts in existence as of 2024-year
end and does not consider any potential future debts.
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Asset Category
Principal & Interest Payments in the Next Ten Years
2025
2026
2027
2028
2029
2030
2034
Road Network
0
0
0
0
0
0
0
Stormwater Network
0
0
0
0
0
0
0
Bridges & Culverts
39,688
39,688
39,688
39,688
39,688
$39,688
$9,185
Buildings
68,402
68,402
68,402
68,402
68,402
$68,402
0
Machinery &
Equipment
0
0
0
0
0
0
0
Land Improvements
0
0
0
0
0
0
0
Vehicles
290,534
342,849
317,006
274,467
250,249
$233,501
$166,537
Total Tax Funded
398,624
450,940
425,096
382,557
358,339
341,592
$175,723
Water Network
(Warren)
17,147
17,147
17,147
17,147
17,147
$17,147
0
Water Network
(Markstay)
0
0
0
0
0
0
0
Sanitary Network
0
0
0
0
0
0
0
Total Rate Funded
17,147
17,147
17,147
17,147
17,147
$17,147
0
Table 54 Markstay-Warren Principal and Interest Payments
The revenue options outlined in this plan allow Markstay-Warren to fully fund its long-
term infrastructure requirements without further use of debt.
14.6 Use of Reserves
14.6.1
Available Reserves
Reserves play a critical role in long-term financial planning. The benefits of having
reserves available for infrastructure planning include:
a) the ability to stabilize tax rates when dealing with variable and sometimes
uncontrollable factors
b) financing one-time or short-term investments
c) accumulating the funding for significant future infrastructure investments
d) managing the use of debt
e) normalizing infrastructure funding requirement
By asset category, the table below outlines the details of the reserves currently available
to Markstay-Warren.
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Asset Category
Balance at December 31, 2024
Road Network
$210,663
Stormwater Network
$20,974
Bridges & Culverts
$213,747
Buildings
$219,916
Machinery & Equipment
$40,097
Land Improvements
$25,600
Vehicles
$121,524
Total Tax Funded:
$852,521
Warren Water Network
$86,582
Markstay Water Network
$112,859
Sanitary Network
$40,968
Total Rate Funded:
$240,409
Table 55 Markstay-Warren Reserve Balances
There is considerable debate in the municipal sector as to the appropriate level of
reserves that a Municipality should have on hand. There is no clear guideline that has
gained wide acceptance. Factors that municipalities should consider when determining
their capital reserve requirements include:
a) breadth of services provided
b) age and condition of infrastructure
c) use and level of debt
d) economic conditions and outlook
e) internal reserve and debt policies.
These reserves are available for use by applicable asset categories during the phase-in
period to full funding. This coupled with Markstay-Warren's judicious use of debt in the
past, allows the scenarios to assume that, if required, available reserves and debt
capacity can be used for high priority and emergency infrastructure investments in the
short- to medium-term.
14.6.2
Recommendation
In 2025, Ontario Regulation 588/17 will require Markstay-Warren to integrate proposed
levels of service for all asset categories in its asset management plan update. We
recommend that future planning should reflect adjustments to service levels and their
impacts on reserve balances.
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15. Recommendations & Key Considerations
15.1 Financial Strategies
1. Review the feasibility of adopting a full-funding scenario to achieve 100% of
average annual funding requirement for the asset categories analyzed. This
includes:
a. Increasing taxes by 2.5% per year over a period of 15 years;
b. Increasing water rates by 2.7 % and 3.5% for Warren and Markstay Water
Network over a period of 20 years; and
c. Increasing sanitary rates by 2.2% per year over a period of 15 years.
2. Continued allocation of OCIF and CCBF funding as previously outlined.
3. Reallocating appropriate revenue from categories in a surplus position to those in
a deficit position.
4. Increasing existing and future infrastructure budgets by the applicable inflation
index on an annual basis in addition to the deficit phase-in.
5. Continue to apply for project specific grant funding to supplement sustainable
funding sources.
15.2 Asset Data
1. On an annual basis review asset inventory information for completeness and
accuracy and work to update as needed. Commonly this may include the addition
and disposal of assets, updates to asset conditions to reflect capital projects, new,
better or additional asset information. Specific data improvements identified in this
plan include:
a. Updates to road inventory information especially for appurtenances like
sidewalks and streetlights
b. Review and confirmation of bridge and structural culverts in-service dates
c. Addition of more comprehensive inventory information for water hydrants
and storm network assets like outfall and manholes.
d. The timing of roads lifecycle events, the estimated impact of them, and the
unit cost
e. The various attributes used to estimate the likelihood and consequence of
asset failures, and their respective weightings
2. When procuring external studies, ensure that the scope includes provision of data
in a tabular format (i.e. excel) and that the data makes clear reference to the
corresponding Citywide Asset IDs. Updating the asset registry with the collected
Municipality of Markstay-Warren
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information is of crucial importance. Often the following information is of value to
collect and upload to the registry:
a. Asset Condition Numerical Score (common types include a Bridge Condition
Index, Pavement Condition Index)
b. Priority Rating: this may consider factors such as asset condition, traffic
volumes, availability of alternative routes to rank asset investment
prioritization
c. Asset Specific Attributes: Quantity details (length, width, lane kilometers and
associated unit of measure), roadside environment, traffic information
(AADT), road classification (in line with O. Reg. 239/02 Minimum
Maintenance Standards for Municipal Highways), recommended asset
interventions (i.e. repairs, rehabilitations) and suggested intervention date.
3. Asset management planning is highly sensitive to replacement costs. Periodically
update replacement costs based on recent projects, invoices, or estimates, as well
as condition assessments, or any other technical reports and studies. Material and
labour costs can fluctuate due to local, regional, and broader market trends, and
substantially so during major world events. Accurately estimating the replacement
cost of like-for-like assets can be challenging. Ideally, several recent projects over
multiple years should be used. Staff judgement and historical data can help
attenuate extreme and temporary fluctuations in cost estimates and keep them
realistic.
4. Like replacement costs, an asset's established serviceable life can have dramatic
impacts on all projections and analyses, including condition, long-range
forecasting, and financial recommendations. Periodically reviewing and updating
these values to better reflect in-field performance and staff judgement is
recommended.
15.3 Risk & Levels of Service
1. Risk models and matrices can play an important role in identifying high-value
assets, and developing an action plan which may include repair, rehabilitation,
replacement, or further evaluation through condition assessments. As a result,
project selection and the development of multi-year capital plans can become
more strategic and objective. Initial models have been built into Citywide for all
asset groups. These models reflect current data, which was in some cases limited.
As the data evolves and new attribute information is obtained, these models
should also be refined and updated.
2. Available data on current performance should be centralized and tracked to
support any calibration of service levels ahead of O. Reg. 588's 2025 requirements
on proposed levels of service.
Municipality of Markstay-Warren
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3. Staff should monitor evolving local, regional, and environmental trends to identify
factors that may shape the demand and delivery of infrastructure programs. These
can include population growth, and the nature of population growth; climate
change and extreme weather events; and economic conditions and the local tax
base. This data can also be used to review service level targets.
Municipality of Markstay-Warren
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Appendices
Appendix A - Infrastructure Report Card
Appendix B - 10-Year Capital Requirements
Appendix C - Level of Service Maps
Appendix D - Risk Rating Criteria
Municipality of Markstay-Warren
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Appendix A - Infrastructure Report Card
Asset
Category
Replacement
Cost
Average
Condition
Financial Capacity
Road Network
$26.4 m
Fair
Annual Requirement:
$683,000
Funding Available:
$280,000
Annual Deficit:
$403,000
Bridges &
Culverts
$20.5 m
Fair
Annual Requirement:
$693,000
Funding Available:
$59,000
Annual Deficit:
$634,000
Water Network
$36.6 m
Good
Annual Requirement:
$647,000
Funding Available:
$0
Annual Deficit:
$647,000
Sanitary
Network
$8.9 m
Good
Annual Requirement:
$133,000
Funding Available:
$0
Annual Deficit:
$133,000
Stormwater
Network
$4.6 m
Good
Annual Requirement:
$68,000
Funding Available:
$61,000
Annual Deficit:
$7,000
Buildings
$21.3 m
Very Poor
Annual Requirement:
$713,000
Funding Available:
$56,000
Annual Deficit:
$657,000
Land
Improvements
$1.8 m
Good
Annual Requirement:
$83,000
Funding Available:
$7,000
Annual Deficit:
$76,000
Vehicles
$5.5 m
Poor
Annual Requirement:
$394,000
Funding Available:
$31,000
Annual Deficit:
$363,000
Machinery &
Equipment
$ 2.4m
Very Poor
Annual Requirement:
$130,000
Funding Available:
$10,000
Annual Deficit:
$120,000
Municipality of Markstay-Warren
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Appendix B - 10-Year Capital Requirements
The tables below summarize the projected cost of lifecycle activities (rehabilitation and replacements) that
may be undertaken over the next 10 years to support current levels of service.
These projections are generated in Citywide and rely on the data available in the asset register. Assessed
condition data and replacement costs were used to assist in forecasting replacement needs for roads. For
all remaining assets, only age was used to determine forthcoming replacement needs.
The projections can be different from actual capital forecasts. Consistent data updates, particularly
condition, replacement costs, and regular upkeep of lifecycle models, will improve the alignment between
the system generated expenditure requirements, and the Municipality's capital expenditure forecasts.
Road Network
Segment
Back-
log
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Asphalt
Roads
-
-
-
-
-
$1.1m
-
$138k
-
$361k
$206k
Gravel
Roads
-
-
-
-
-
-
-
-
$268k
-
$355k
Surface
Treated
Roads
-
$12k
$115k
$128k
$1.1m
$995k
-
$504k
$256k
$157k
$827k
Total
-
$12k $115k $128k
$1.1m
$2.0m
-
$643k
$524k
$518k
$1.4m
Table 56 System Generated 10-Year Capital Replacement Forecast: Road Network
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Bridges & Culverts
Segment
Back-
log
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Bridges
$2.1m
$1.0m
$594k
$1.9m
$159k
$457k
$3.5m
-
-
$2.2m
$1.4m
Culverts
$788k
$2.1m
$317k
-
$100k
-
$734k
-
-
-
-
Total
$2.9m
$3.1m
$911k
$1.9m
$259k
$457k
$4.2m
-
-
$2.2m
$1.4m
Table 57 System Generated 10-Year Capital Replacement Forecast: Bridges & Culverts
Water Network
Segment
Back-
log
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Hydrants
-
-
-
-
-
-
-
-
$4.1m
-
-
Valves
$1.4m
-
-
-
-
-
-
-
-
-
-
Water
Mains
-
-
-
-
-
-
-
-
-
-
-
Water
Tower
-
-
-
-
-
-
-
-
-
-
-
Total
$1.4m
-
-
-
-
-
-
-
$4.1m
-
-
Table 58 System Generated 10-Year Capital Replacement Forecast: Water Network
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Sanitary Sewer Network
Segment
Back-
log
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Manholes
-
-
-
$6k
-
-
-
-
-
-
-
Sanitary Lift
Station
-
-
-
-
-
-
-
-
-
-
Sanitary
Mains
-
-
-
-
-
-
-
-
-
-
-
Wastewater
Lagoon
-
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
$6k
-
-
-
-
-
-
-
Table 59 System Generated 10-Year Capital Replacement Forecast: Sanitary Sewer Network
Stormwater Network
Segment
Back-
log
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Catch
Basins
-
-
-
-
-
$12k
-
-
-
-
-
Storm
Mains
-
$827k
-
-
-
-
-
-
-
-
-
Total
-
$827k
-
-
-
$12k
-
-
-
-
-
Table 60 System Generated 10-Year Capital Replacement Forecast: Stormwater Network
Municipality of Markstay-Warren
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Buildings
Segment
Back-
log
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Administrati
on
$1.1m
-
-
-
-
-
-
-
-
-
-
Fire
Department
$3.7m
-
-
-
-
-
-
-
-
-
-
Parks &
Recreation
$11.2m
$30k
-
-
-
-
-
-
-
-
-
Public
Works
$2.2m
-
-
-
-
-
-
-
-
-
-
Total
$18.2
m
$30k
-
-
-
-
-
-
-
-
-
Table 61 System Generated 10-Year Capital Replacement Forecast: Buildings & Facilities
Note: These projections are generated in Citywide and rely on the data available in the asset register. As
assessed condition data was not available for many buildings assets, age was used to determine
forthcoming replacement needs. Buildings often contain thousands of assets, each with its own estimated
useful life. Currently, however, as the Municipality's buildings are not componentized, there are only 16
assets in the register. Over time, with improved and effective componentization, the alignment between
the system generated expenditure requirements, and the Municipality's capital expenditure forecasts will
also increase.
Municipality of Markstay-Warren
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Land Improvements
Segment
Back-
log
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Fields &
Courts
-
-
-
-
-
-
-
-
-
-
-
Outdoor
Structures
-
-
-
-
$35k
-
-
-
-
-
-
Play
Structures
-
-
-
-
$60k
-
-
-
-
-
-
Total
-
-
-
-
$95k
-
-
-
-
-
-
Table 62 System Generated 10-Year Capital Replacement Forecast: Land Improvements
Vehicles
Segment
Back-
log
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Fire
$445k
-
-
$90k
$65k
-
$150k
$560k
-
$65k
-
Parks and
Recreation
-
-
-
-
-
-
-
$65k
-
-
-
Public Works
-
$241k
$600k
$130k
$52k
$20k
$300k
$300k
$250k
$65k
$600k
Total $445k
$241k
$600k
$220k
$117k
$20k
$450k
$925k
$250k
$130k
$600k
Table 63 System Generated 10-Year Capital Replacement Forecast: Vehicles
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Machinery & Equipment
Segment
Back-
log
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Communicat
ions
-
-
$62k
-
-
-
-
-
-
-
-
Heavy
Equipment
-
$19k
-
-
-
$56k
-
-
-
$111k
-
Library
-
$17k
-
-
-
-
-
-
-
-
-
Misc.
Equipment
$1.9m
-
$51k
-
$63k
-
-
-
-
-
-
Total $1.9m
$36k
$113k
-
$63k
$56k
-
-
-
$111k
-
Table 64 System Generated 10-Year Capital Replacement Forecast: Machinery & Equipment
Municipality of Markstay-Warren
Asset Management Plan 2024
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Appendix C - Level of Service Maps & Photos
Bridge and Structural Culvert Locations
Municipality of Markstay-Warren
Asset Management Plan 2024
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Images of Bridge in Good Condition
Bedard Bridge
Inspected: October 7th, 2024
Municipality of Markstay-Warren
Asset Management Plan 2024
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Noland Road Bridge
Inspected: October 7th, 2024
Municipality of Markstay-Warren
Asset Management Plan 2024
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Images of Bridge in Fair Condition
Nipissing Road
Inspected: October 7th, 2024
Municipality of Markstay-Warren
Asset Management Plan 2024
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Water Network Map - Warren Distribution System
Municipality of Markstay-Warren
Asset Management Plan 2024
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Water Network Map - Markstay Water Distribution Map
Municipality of Markstay-Warren
Asset Management Plan 2024
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Water Transmission Main: Map
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Asset Management Plan 2024
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Sanitary Collection System: Warren Map
Municipality of Markstay-Warren
Asset Management Plan 2024
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Storm Mains: Warren Map
Municipality of Markstay-Warren
Asset Management Plan 2024
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Storm Mains: Markstay Map
Municipality of Markstay-Warren
Asset Management Plan 2024
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Appendix D - Risk Rating Criteria
Probability of Failure
Asset Category
Risk
Criteria
Criteria
Weighting
Value/Range
Probability of
Failure Score
Road Network (Surface
Treated & Asphalt
Roads)
Condition
100%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Bridges & Culverts
Sanitary, Storm, &
Water (Mains)
All Others
Condition
100%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Municipality of Markstay-Warren
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Consequence of Failure
Asset Category
Risk
Classification
Risk Criteria
Value/Range
Consequence
of Failure
Score
Road Network (Surface
Treated & Asphalt
Roads)
Economic
(60%)
Replacement
Cost (100%)
$1,000,000
5
$800,000
4
$600,000
3
$400,000
2
$200,000
1
Operational
(20%)
Underground
Sewer (33%)
Yes
4
No
1
Underground
Water
(33%)
Yes
4
No
1
Underground
Storm
(33%)
Yes
4
No
1
Social (20%)
Average Annual
Daily Traffic
(AADT)
1,000 and below
5
300 and below
4
200 and below
3
100 and below
2
50 and below
1
Bridges & Culverts
Economic
(80%)
Replacement
Cost
(100%)
$100,000
1
$500,000
2
$1,000,000
3
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Asset Category
Risk
Classification
Risk Criteria
Value/Range
Consequence
of Failure
Score
$1,500,000
4
$3,500,000
5
Social (20%)
Alternative
Routet (100%)
Yes
4
No
1
Water Mains
Economic
(70%)
Replacement
Cost
(100%)
$100,000 and below
1
$200,000 and below
2
$400,000 and below
3
$800,000 and below
4
$1,000,000 and below
5
Operational (30%) Diameter (mm)
50 and below
1
100 and below
2
150 and below
3
200 and below
4
250 and below
5
Storm Mains
Economic
(80%)
Replacement
Cost
(100%)
$20,000 and below
1
$40,000 and below
2
$60,000 and below
3
$80,000 and below
4
$100,000 and below
5
Operational
(20%)
Diameter (mm)
100 and below
1
300 and below
2
Municipality of Markstay-Warren
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127
Asset Category
Risk
Classification
Risk Criteria
Value/Range
Consequence
of Failure
Score
400 and below
3
800 and below
4
1200 and below
5
Water Mains
Economic
(30%)
Replacement
Cost
(100%)
$25,000 and below
1
$75,000 and below
2
$150,000 and below
3
$225,000 and below
4
$300,000 and below
5
Operational
(20%)
Diameter (mm)
(100%)
100 and below
1
150 and below
2
200 and below
3
250 and below
4
350 and below
5
All Others
Economic
(70%)
Replacement
Cost
(100%)
$50,000
1
$100,000
2
$200,000
3
$400,000
4
$500,000
5
Operational
(30%)
Category
(100%)
Land Improvements
2
Buildings, Machinery &
Equipment, Vehciles
3
Municipality of Markstay-Warren
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Asset Category
Risk
Classification
Risk Criteria
Value/Range
Consequence
of Failure
Score
Road Network, Sanitary
Netowrk, Stormwater
Netowrk, Water Network
4